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Purchasing Co-Owner’s Share Doesn’t Make Tenant Owner: Delhi High Court

The Delhi High Court has ruled that a tenant purchasing a co-owner’s share of a property does not become the full owner, and such a purchase does not end the landlord-tenant relationship. The Court upheld the eviction order against the tenant.

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Purchasing Co-Owner’s Share Doesn’t Make Tenant Owner: Delhi High Court

NEW DELHI: In a ruling on property and rent control law, the Delhi High Court has held that a tenant purchasing a share of the tenanted property from one co-owner does not become the full owner, and such a transaction does not terminate the landlord-tenant relationship. The Court clarified that the doctrine of merger under Section 111(d) of the Transfer of Property Act, 1882, applies only when the ownership interests of both tenant and landlord in the entire premises vest in one person simultaneously.

The judgment was delivered by Justice Saurabh Banerjee, who dismissed a revision petition filed by tenant Sukhdev @ Sukhdev Raj and upheld the eviction order passed by the Additional Rent Controller (ARC) on August 13, 2024.

Background of the Dispute

Landlord Ashok Kumar filed an eviction petition under Section 14(1)(e) read with Section 25(B) of the Delhi Rent Control Act, 1958, seeking recovery of possession of two commercial shops at Property No. 6165/1, Dev Nagar, Karol Bagh, New Delhi, citing bona fide need to open a restaurant/dhaba.

The tenant contested the petition, claiming he had become the owner of the premises after purchasing the property through a Sale Deed dated December 15, 2016, from the landlord’s sister and co-owner, Smt. Manju Devi, who held a 50% share under a Settlement Agreement dated April 24, 2015.

Arguments Before the Court

Tenant’s Contentions

Represented by Senior Advocate Sanjeev Sagar, the tenant argued:

Landlord’s Response

Represented by Advocate Alok Sinha, the landlord submitted:

Court’s Findings and Observations

Doctrine of Merger Inapplicable

The Court ruled that tenancy cannot be determined unless landlord and tenant interests in the entire property merge:

“Until the entirety of rights/interest/title vested at the same time with one person, there is no merger of estate.”

Sale Deed Ineffective

Relying on SK. Golam Lalchand vs. Nandu Lal Shaw (2024), the Court held:

“A co-owner cannot sell the entire property without partition.”

Eviction Petition Maintainable

The Court reiterated that a co-owner may maintain an eviction petition without requiring consent from others (Indian Umbrella Manufacturing Co.; Mohinder Prasad Jain).

Suspicious Conduct of Tenant

The Court noted the Sale Deed was executed after the filing of the eviction case, raising doubts about bona fides.

The High Court upheld the eviction order, vacated the interim stay, and directed the tenant to hand over physical possession of the property.

“The tenant is unable to raise any grounds for interference; the impugned judgment dated 13.08.2024 is upheld.”

Case Title:
Sukhdev @ Sukhdev Raj vs. Ashok Kumar
RC.REV. 311/2024, CM APPL. 64579/2024, CM APPL. 23881/2025

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