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Proof of Tenancy: Supreme Court’s Key Ruling on Rent Receipts and Title Disputes

16Oct

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Supreme Court

Proof of Tenancy: Supreme Court’s Key Ruling on Rent Receipts and Title Disputes

The Supreme Court held that In disputes over landlord-tenant relationships, the Supreme Court clarified that under the Karnataka Rent Act, 1999, the production of rent receipts signed by the landlord constitutes prima facie evidence of the jural relationship. Once this initial burden is discharged, the Rent Controller is justified in proceeding with the eviction case without delving into title disputes, which are beyond its scope. Facts Of The Case: The appellant, H.S. Puttashankara, filed an eviction petition against the respondent, Yashodamma, under the Karnataka Rent Act, 1999, concerning a property in Bengaluru. The appellant claimed to be the landlord, asserting that the property originally belonged to his great-grandfather and devolved to him through a release deed from other legal...

Supreme Court Landmark Ruling: Proprietor and His Business Are Not Separate Legal Entities

The Supreme Court held that a proprietorship concern is not a juristic person and a suit filed against the proprietor personally is maintainable. Order XXX Rule 10 of the CPC is merely enabling and does not bar a suit against the proprietor, who remains the real party in interest for all transactions conducted in the trade name. Facts Of The Case: The appellants, owners of a property, leased it to Aditya Motors, a sole proprietorship concern of respondent Pilla Durga Prasad, via a registered lease deed. After the lease expired, the lessee failed to vacate, prompting the appellants to file an eviction suit. The original suit named the lessee as defendant no.1 (Aditya Motors), along with the sub-lessee and its directors. During the proceedings, the appellants amended the plaint, substituti...

Supreme Court Rules Property Can Be Returned During Insolvency If Not Needed

This Supreme Court judgment affirms the paramountcy of the commercial wisdom of the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016. It clarifies that the moratorium under Section 14(1)(d) does not bar the return of possession of a corporate debtor's leased asset when such a decision is a conscious business choice made by the CoC and the Resolution Professional to alleviate a financial burden on the estate. Facts Of The Case: The case originated from a dispute over the possession of a property leased by Nandini Impex Private Limited, the corporate debtor. The appellants had provided loans to the company, secured by the title deeds of the property's front and rear portions. Following a default, the property was conveyed to the appellants through separate deeds ...