Contract Act, 1872
Sections 196 to 200—Ratification—Core principle of ratification is one by which a person approves of the act of another knowing about the act—Ratification is an act which presupposes knowledge of the act of the person whose act is sought to be ratified.
[Paras 18 to 24]
Maharashtra Rent Control Tenancy Act, 1999
Section 26—Bar of section—Applicability—Actual lawful tenant assigned his right of possession in the tenanted property to the appellant for a consideration—On the same day third defendant/landlord also alleged to assign the leasehold right in favour of appellant—Whether transaction is hit by the bar of Section 26 of the Maharashtra Rent Control Tenancy Act—Section 26 of the Act begins with a non-obstante clause and purports to provide for the position despite whatever is contained in any law for the time being in force—It will not be lawful for a tenant to sub-let or to give an license the whole or any part of the premises let to him or to assign or transfer in any other manner his interest therein—Assignment relied upon by the appellant namely alleged lease would be illegal on the face of it unless a contract to the contrary is established—However, the landlord can always ratify the action of tenant—Thus, Section 26 of the Act cannot be held to contain the absolute bar against the tenant of the non-residential premises—Appellant lays store by a tenancy by the lawful tenant, means the tenancy in favour of the lawful tenant was intact, if so how can the landlord create a tenancy in favour of appellant without extinguishing the existing tenancy with the lawful tenant—Appellant failed to make out any case—Appeal dismissed.
[Paras 11, 12, 17, 25 & 26]
Decision : Appeal dismissed