Tuesday 30 April 2019

When tenancy will not extinguish by Merger?

Buchi Devi had willingly joined with Bhagabandei in filing the suit. During the continuity of litigation she parted with her share in the property. One out of the two tenants purchased her share. It seems that the tenancy is in the name of a partnership firm and some of the partners have purchased the share of Bhagabandei. It is not clear if all the partners or only a few out of all the partners are the buyers. The fact remains that they have purchased only a share in the property and not the entire property. The applicability of doctrine of merger within the meaning of Clause (d) of Section 111 of the Transfer of Property Act, 1882 is not attracted. In order to bring the tenancy to an end the merger should be complete, i.e. the interest of the landlord in its entirety must come to vest and merge into the interest of tenant in its entirely. When part of the interest of the landlord or the interest of one out of many co-landlords-cum-owners comes to vest in the tenant, there is no merger and the tenancy is not extinguished. 

Civil Appeal Nos. 5357 and 5358 of 1996

Decided On: 05.01.2004

India Umbrella Manufacturing Co. Vs. Bhagabandei Agarwalla (Dead) 

Hon'ble Judges/Coram:
R.C. Lahoti and Ashok Bhan, JJ.

Citation: AIR 2004 SC 1321.
Read full judgment here: Click here.
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