Skip to main content
Indian Kanoon - Search engine for Indian Law
Document Fragment View
Matching Fragments
In this regard, we like to refer to the decision of the Hon'ble Supreme court
in the case of Rupchand Gupta Vs. Raghubanshi (Pvt.) Ltd. and another reported
in AIR 1964 SC 1889 wherein the Hon'ble Supreme Court considered the binding
effect of the decree passed against the lessee in a suit filed by the head lessor,
upon the said tenant, even though the sub-tenants are not parties to the said
suit. It was held therein that where the landlord institutes a suit against the
lessee for possession of the land on the basis of a valid notice to quit served on
the lessee and does not implead the sub-lessee as a party to the suit, the object
of the landlord is to eject the sub-lessee from the land in execution of the decree
and such an object is quite legitimate. It was further held therein that the decree
in such a suit would bind the sub-lessee. It was also held that even passing of
such a decree in a suit in the absence of the sub-lessee may act harshly on the
sub-lessee but this is a position well-understood by him when he took the sub-
lessee. It was also observed by the Hon'ble Supreme Court that the mere fact
that the sub lessee was not impleaded or that the lessee did not actually contest
the suit did not render the decree passed in the suit as collusive one particularly
when it was not suggested by the sub-lessee that its lessor had even a
plausible defence to the claim for ejectment. According to the Hon'ble Supreme
Court, collusion in judicial proceeding is a secret arrangement between two
persons that the one who institutes a suit against the other in order to obtain a
decision of a judicial tribunal for some sinister purpose.