Tag Archives: Lease Rent

Possession of Agent – Is Possession of Principal

In Smt. Chandrakantaben v. Vadilal Bapalal Modi,  (1989) 2 SCC 630, the Hon’ble Supreme Court has held that the possession of the agent is the possession of the principal and in view of the fiduciary relationship he cannot be permitted to claim his own possession. Thus, the agent is an extended hand of principal.         Thus, an agent who receives property or money from or for his principal obtains no interest for himself in the property. An agent holds the principal’s property only on behalf of the principal. He acquires no interest for himself in such property. He cannot deny principal’s title to property. Nor he can convert it into any other kind or use. His possession is the possession of the principal for all purposes. The agent has no possession of his own. Caretaker’s possession is the possession of the principal. The possession of the agent is the possession of the principal and in view of the fiduciary relationship he cannot be permitted to claim his own possession. Thus agent is the extended hand of principal. Dr. Vishwanath Mishra v. XIIIth Additional District Judge, 2020 (138) ALR 159.

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Subletting or Sub-tenancy

Sub-tenancy or subletting comes into existence when the tenant gives up possession of the tenanted accommodation, wholly or in part and puts another person in exclusive possession thereof. This arrangement comes about obviously under a mutual agreement or understanding between the tenant and the person to whom the possession is so delivered. In this process, the landlord is kept out of the scene. Rather, the scene is enacted behind the back of the landlord, concealing the overt acts and transferring possession clandestinely to a person who is an utter stranger to the landlord, in the sense that the landlord had not let out the premises to that person nor had he allowed or consented to his entering into possession over the demised property. It is the actual, physical and exclusive possession of that person, instead of the tenant, which ultimately reveals to the landlord that the tenant to whom the property was let out has put some other person into possession of that property. In such a situation, it would be difficult for the landlord to prove, by direct evidence, the contract or agreement or understanding between the tenant and the sub-tenant. It would also be difficult for the landlord to prove, by direct evidence, that the person to whom the property had been sublet had paid monetary consideration to the tenant. Payment of rent, undoubtedly, is an essential element of lease or sub-lease. It may be paid in cash or in kind or may have been paid or promised to be paid. It may have been paid in lump sum in advance covering the period for which the premises are let out or sublet or it may have been paid or promised to be paid periodically. Since payment of rent or monetary consideration may have been made secretly, the law does not require such payment to be proved by affirmative evidence and the court is permitted to draw its own inference upon the facts of the case proved at the trial, including the delivery of exclusive possession to infer that the premises were sublet.” Flora Elias Nahoum v. Irdish Ali Laskar, (2018) 2 SCC 485.

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