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Issues: (i) Whether eviction could be ordered under Section 13(2) of the East Punjab Urban Rent Restriction Act, 1949 against a sub-tenant when the sub-tenancy had been created before the Act came into force in the area concerned; (ii) Whether the tenant's surrender of tenancy rights in respect of part of the leased premises bound the sub-tenant and deprived him of protection against eviction; (iii) Whether the sub-tenant's rights were extinguished because the tenant suffered an eviction order.
Issue (i): Whether eviction could be ordered under Section 13(2) of the East Punjab Urban Rent Restriction Act, 1949 against a sub-tenant when the sub-tenancy had been created before the Act came into force in the area concerned.
Analysis: The sub-letting was admitted to have occurred long before the Act commenced in the Union Territory concerned. On that admitted position, the statutory prohibition against sub-letting under Section 13(2) could not be invoked to sustain eviction. A sub-tenancy created before the Act came into force does not attract an eviction order under that provision.
Conclusion: The eviction order under Section 13(2) was not sustainable against the sub-tenant on this ground.
Issue (ii): Whether the tenant's surrender of tenancy rights in respect of part of the leased premises bound the sub-tenant and deprived him of protection against eviction.
Analysis: A lease creates an interest in property and may be determined only as a whole. The contractual and statutory incidents of lease, including the right to sub-lease under Section 108(j) of the Transfer of Property Act and the protection afforded by Sections 111(e), 108(m) and 115 of that Act, showed that a tenant cannot validly surrender only part of the leased interest so as to prejudice a prior under-lease. A surrender of the lease does not defeat an under-lease previously granted.
Conclusion: The partial surrender did not affect the sub-tenant's rights and could not be used to evict him.
Issue (iii): Whether the sub-tenant's rights were extinguished because the tenant suffered an eviction order.
Analysis: A sub-tenant has an independent right to resist or appeal against a common eviction decree, and his rights are not automatically destroyed merely because the tenant's position is adverse. The authorities relied upon by the appellant were distinguishable, and the sub-tenant was entitled to contest the eviction independently.
Conclusion: The sub-tenant's rights were not extinguished by the tenant's eviction order.
Final Conclusion: The statutory eviction order could not be sustained against the sub-tenant, and the High Court's interference was justified. The appeal was therefore unsuccessful.
Ratio Decidendi: A pre-Act sub-tenancy cannot be evicted under Section 13(2) of the East Punjab Urban Rent Restriction Act, 1949, and a tenant's surrender of the lease cannot prejudice a prior under-lease or extinguish the sub-tenant's independent rights.