RUP CHAND GUPTA versus RAGHUVANSHI PRIVATE LIMITED & ANR.

RUP CHAND GUPTA versus RAGHUVANSHI PRIVATE LIMITED & ANR.

A mere agreement by the lessee not to contest the suit or omission by the landlord to implead the sub-lessee does not constitute collusion unless it is for a dishonest purpose; the facts do not establish any improper or dishonest act. Both companies are distinct entities and the decree binds the sub-lessee.

Parties
Appellant: Rup Chand Gupta; Respondent No. 1: Raghuvanshi Private Limited; Respondent No. 2: Land and Bricks Ltd.
Jurisdiction
India
Judgment Date
15 April 1964
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From Calcutta High Court
Outcome
Appeal dismissed
Legal Topics
Collusive Decree, Sub Lease, Eviction, Ingredients of Collusion, Calcutta Thika Tenancy Act
Property Law Landlord Tenant Collusive Decree Sub Lease Eviction Ingredients of Collusion Calcutta Thika Tenancy Act

Case Brief

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Parties

Rup Chand Gupta

Appellant

Raghuvanshi Private Limited

Respondent No. 1

Land and Bricks Ltd.

Respondent No. 2

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From Calcutta High Court

Legal Issues

  1. 1 Whether the ex-parte decree obtained by Raghuvanshi Private Limited against Land and Bricks Ltd. was collusive and improper, thereby not binding on Rup Chand Gupta, the sub-lessee

Ratio Decidendi

A mere agreement by the lessee not to contest the suit or omission by the landlord to implead the sub-lessee does not constitute collusion unless it is for a dishonest purpose; the facts do not establish any improper or dishonest act. Both companies are distinct entities and the decree binds the sub-lessee.

Court Disposition

Appeal dismissed

Orders

  • Suit rightly dismissed; decree of High Court upheld; appeal dismissed with costs