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The facts of the case fall within a narrow compass and may be summarised thus.

The premises in question which are situated in Nainital were commonly known as `Waverly Quarters' and properly called as `Hotel Waldrof'. According to the appellants the premises were rented out to one Keshar Singh on an annual rent of Rs. 14,000 on November 17, 1953 and the allotment of Hotel Waldrof to the tenant, Keshar Singh, was confirmed by the Rent Controller sometime in the year 1954. Thereafter, the tenant-Keshar Singh defaulted in the payment of rent resulting in a suit filed by the appellants for his eviction. This suit was filed on 9-4-72 for ejectment and for recovery of arrears amounting to Rs. 26,743, due up to June 4, 1971. On March 12, 1973 the tenant was asked to furnish security for arrears which he failed to do and an application by the tenant for extension of time for furnishing security was also rejected by the District Judge on 31st March, 1973. On April 25, 1973, the landlord-appellant in anticipation of the premises falling vacant filed an application before the Rent Control and Eviction Officer, Nainital (hereinafter referred to as the `Eviction Officer') under s.16 of The Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (U.P. Act No. 13 of 1972) (hereinafter referred to as the `Act') for release of the building in question. On this application, the Eviction Officer directed the Inspector to submit a report on the question as to whether or not the premises had fallen vacant. Meanwhile as the tenant had not deposited the rent as directed by the Court, nor furnished the security his defence was struck off and the appellant's suit for eviction was decreed on 9-5-1973.

After the decree for ejectment was passed against the tenant, Respondent No. 3, Harbans Singh, filed an application on 11-5-1973 in the court of District Judge, Kumaon, Nainital on the allegation that he was a partner of Keshar Singh in the business of Hotel Waldrof with the consent and permission of the landlord and had purchased the moveables of the aforesaid Hotel from Keshar Singh. He further prayed that the landlord-appellant be directed not to dispossess him (Harbans Singh). This application was, however, rejected by the District Judge on the ground that Harbans Singh was neither a party to the ejectment suit nor was any objection filed by him during the pendency of the suit alleging that he had any share in the business. The application of Harbans Singh was accordingly rejected by the District Judge on 12-5-73.