Nippon Hotel Company Ltd. vs. Mahadeva Kurakkal and Colombo Studio (Pvt.) Ltd. – CA 733/1998-1998

In the case between Nippon Hotel Company Ltd. and Mahadeva Kurakkal with Colombo Studio (Pvt.) Ltd., the court addressed whether the incorporation of “Colombo Studios” as a limited liability company constituted unlawful subletting of rented premises under the Rent Act, thereby justifying ejectment. It was held that the mere change in legal structure, with the same individuals maintaining control and operation of the business, did not amount to subletting for the purposes of Sections 10(1), 10(2)(a), and 10(5) of the Rent Act. The principle reaffirmed was that subletting requires evidence of separate control, exclusive possession by a third party, or a genuine transfer of occupancy rights, rather than a technical corporate transformation of the tenant’s business entity. The reasoning drew o