RAGHURAM RAO AND ORS. versus ERIC P. MATHIAS AND ORS.

RAGHURAM RAO AND ORS. versus ERIC P. MATHIAS AND ORS.

Unless there is an express condition restraining partial alienation, a forfeiture clause in a lease deed prohibiting alienation does not apply to partial alienation; lessee or legal heirs are necessary parties for determination and possession; suit by transferee lessor invoking forfeiture clause against transferee of lessee’s interest without joining lessee/legal heirs must be dismissed for non-joinder.

Parties
Appellants: Raghuram Rao and Ors.; Respondents: Eric P. Mathias and Ors.
Jurisdiction
India
Judgment Date
30 January 2002
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree Dated 27.10.1998 of Karnataka High Court in R.s.a. No. 1319/96 C/w R.s.a. Nos. 1320 1322 of 1996
Outcome
Appeals allowed; suits dismissed.
Legal Topics
Lease, Perpetual Lease, Partial Alienation, Forfeiture Clause, Privity of Contract, Necessary Parties, Rent Control
Property Law Lease Perpetual Lease Partial Alienation Forfeiture Clause Privity of Contract Necessary Parties Rent Control

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Parties

Raghuram Rao and Ors.

Appellants

Eric P. Mathias and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree Dated 27.10.1998 of Karnataka High Court in R.s.a. No. 1319/96 C/w R.s.a. Nos. 1320 1322 of 1996

Legal Issues

  1. 1 Whether a clause prohibiting alienation of leasehold property applies to partial alienation.
  2. 2 Whether forfeiture clause can be invoked for partial alienation without express condition.
  3. 3 Whether suit for possession invoking forfeiture clause is maintainable against transferees when legal heirs of lessee are not made parties.

Ratio Decidendi

Unless there is an express condition restraining partial alienation, a forfeiture clause in a lease deed prohibiting alienation does not apply to partial alienation; lessee or legal heirs are necessary parties for determination and possession; suit by transferee lessor invoking forfeiture clause against transferee of lessee’s interest without joining lessee/legal heirs must be dismissed for non-joinder.

Court Disposition

Appeals allowed; suits dismissed.

Orders

  • Judgment and decree of Karnataka High Court set aside.
  • Suits filed by plaintiffs dismissed.