Mootasamy v Ahmed (Civil Appeal No. 7 of 147)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Where a tenant sub-lets premises during a contractual tenancy that contains no restriction on sub-letting, the sub-letting is lawful and the sub-tenant is protected under section 17(3) of the Increase of Rent Ordinance, 1940, even after the head tenancy is terminated. Section 11(1)(h) does not introduce a statutory covenant restricting the tenant's common law right to sub-let; it merely removes statutory protection from the tenant who has sub-let the whole dwelling, but does not render the sub-letting unlawful.
Outcome
Respondent sub-tenant retained possession of the premises; order for possession against first defendant tenant upheld
Facts
In October 1944, the appellants became owners and landlords of premises subject to the Increase of Rent Ordinance, 1940. Mohamed Bashir, the first defendant, was accepted as their tenant from month to month. The tenancy agreement contained no restriction on sub-letting. In June 1945, the appellants informed the tenant they objected to sub-letting. In July 1945, the tenant sub-let the whole premises to the respondent, who went into possession. On 20 July 1945, after the sub-letting, the appellants gave notice terminating the contractual tenancy as from 1 September 1945. The appellants obtained authority from the Rent Control Board and brought an action for eviction against both the tenant and the sub-tenant. The Resident Magistrate granted possession against the tenant but refused possession against the sub-tenant, holding the sub-letting was lawful. The appellants appealed.
Issues
- Whether a tenant who sub-let premises during a contractual tenancy without a restrictive covenant against sub-letting did so lawfully, such that the sub-tenant is protected under section 17(3) of the Increase of Rent Ordinance, 1940, after the head tenancy is terminated.
- Whether section 11(1)(h) of the Increase of Rent Ordinance, 1940, introduces a statutory covenant restricting a tenant's common law right to sub-let in the absence of an express contractual prohibition.
Orders
- Appeal dismissed.
- Costs awarded to the respondent.
Rules and key headnotes
Legislation cited (3)
- Increase of Rent and Mortgage Interest (Restrictions) Ordinance, 1940 s.11(1)(h)
- Increase of Rent and Mortgage Interest (Restrictions) Ordinance, 1940 s.17(3)
- Transfer of Property Act, 1882 s.106
Cases cited (7)
- Dick and another v Jacques and another (1920) 36 TLR 773
- Chapman v Hughes (1923) 129 LTR 223
- Haskins v Lewis [1931] 2 KB 1
- Skinner v Geary [1931] 2 KB 546
- Tara Singh v Harnam Singh (1944) 11 EACA 24
- Ward v Larkins [1923] WN 189
- Norman v Simpson [1946] 1 All ER 74
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.