Tenant's interest in non-residential premises is attachable in execution despite rent control transfer restrictions.

A tenant's interest in non-residential premises under the Maharashtra Rent Control Act, 1999 is treated as property capable of transfer and, therefore, attachment in execution. A lease creates an interest in immovable property, and the lessee's right to remain in occupation is a proprietary interest. Restrictions on sub-letting, assignment or transfer under the Act are not absolute, and breach of those restrictions does not prevent a court sale in execution. Section 60 of the CPC excludes only a lessee's interest in a residential building, not non-residential premises. The position is that limits on voluntary alienation do not bar transfer by operation of law.

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Issues: Whether the interest of a tenant in non-residential premises governed by the Maharashtra Rent Control Act, 1999 is property capable of attachment and sale in execution of a decree.

Analysis: A lease creates an interest in immovable property and the tenant's right to remain in occupation is a species of property. Section 6 of the Transfer of Property Act, 1882 permits transfer of property unless prohibited by law, while Section 108(j) recognises transfer of the lessee's interest. Under Section 26 of the Maharashtra Rent Control Act, 1999, the prohibition against sub-letting, assignment or transfer is not absolute because it is expressly subject to contract to the contrary, and the breach of that restriction is not a bar against court sale in execution. Section 56 of the same Act also recognises receipt of consideration for relinquishment, transfer or assignment, showing that the tenant has a disposing power over such interest. Section 60 of the Code of Civil Procedure, 1908 excludes only the interest of a lessee of a residential building, not non-residential premises. The legal position is supported by the principle that restrictions on voluntary alienation do not prevent transfer by operation of law in execution.

Conclusion: The tenant's interest in non-residential premises is attachable and saleable in execution of a decree, and the issue is answered in favour of the decree-holder.

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