The case of Sri M.V. Ramachandrasa (D) Thr. LRs. v. M/s. Mahendra Watch Company & Ors. (2026 INSC 348) addresses the legal limits of revisional jurisdiction and the principles governing unlawful sub-letting under the guise of partnership.
Factual Background
- The Lease: The appellant (landlord) originally sub-leased a shop in Bengaluru to M/s. Mahendra Watch Company (Respondent No. 1) through its partner, Rajesh Kumar (Respondent No. 4), in 1985. The registered lease deed expressly prohibited sub-letting or parting with possession without the landlord’s prior written consent.
- The Dispute: The landlord discovered that the original partner was no longer in possession and that two strangers to the original tenancy (Respondents No. 2 and 3) were running the business.
- Eviction Proceedings: The landlord sought eviction under the Karnataka Rent Act, 1999, on the ground of unauthorized sub-letting. The Trial Court allowed the petition in 2017, finding the new occupants were strangers and the tenant had unlawfully parted with possession. However, the High Court of Karnataka set aside this order in a revision petition by reappreciating the evidence.
Supreme Court’s Legal Analysis
The Supreme Court allowed the appeal and set aside the High Court’s judgment based on the following findings:
- Transgression of Revisional Jurisdiction: The Court held that the High Court’s power under Section 46 of the Karnataka Rent Act is supervisory and narrowly circumscribed [12, 12.1]. It is intended to examine the legality or propriety of an order but does not allow the court to act as a “court of first appeal” by reassessing evidence or substituting its own factual findings for those of the Trial Court unless they are perverse [4, 12.2, 12.9, 16].
- Burden of Proof in Sub-letting: The Court reiterated that the initial burden lies on the landlord to prove (i) exclusive possession by a third party and (ii) the absence of the original tenant. Once these ingredients are established, a presumption of sub-letting arises, and the burden shifts to the tenant to prove that the arrangement is bona fide and lawful.
- Partnership as a “Cloak” for Sub-letting: The Court clarified that while inducting a partner is not sub-letting if the original tenant retains control, courts are entitled to “tear the veil of partnership” if it is used as a device to conceal an impermissible transfer.
- In this case, the original tenant (Respondent No. 4) had retired from the business around the year 2000 and ceased to have any role in the premises [34.4, 34.6].
- The respondents failed to produce any legally admissible evidence, such as a valid partnership deed or retirement deed, to justify the change in occupation [12.5, 34.5].
- The Court concluded that the “so-called reconstitution” was merely a cloak to conceal an unlawful transfer of possession to strangers [34.9, 35].
Conclusion
The Supreme Court found the High Court’s interference unsustainable in law [12.9]. It allowed the appeal, set aside the High Court’s order, and restored the Trial Court’s eviction decree. The respondents were granted three months to vacate the premises and hand over vacant possession to the landlord.
2026 INSC 348
Sri M.V. Ramachandrasa Since Deceased Represented By Legal Heirs V. M/S. Mahendra Watch Company Represented By Its Partners & Ors. (D.O. J. 10.04.2026)




