M/s. Nopany Investments (P) Ltd. v. Santokh Singh (HUF)
CASE_TITLE • PUBLISH_DATE: 2025-10-31 • AUTHOR_NAME: Gulzar Hashmi • LOCATION: India
 
        Quick Summary
This case answers four things: (1) Can a younger member act as Karta of an HUF? (2) Did the first appeal meet CPC O.41 R.31? (3) Does filing an eviction case end a tenancy and stop rent increase? (4) Can rent be increased under Section 6A, Delhi Rent Control Act while deposits under Section 15 are going on?
- The Supreme Court accepted Jasraj Singh’s authority to act as Karta in the facts.
- No fault was found with the High Court’s view on the first appellate court’s compliance with O.41 R.31.
- Tenancy does not end only by filing an eviction case; rent can still be enhanced per law.
- Section 6A allows a 10% increase after the prescribed period with notice, even during proceedings.
Issues
- Could Jasraj Singh file and conduct the eviction suit as Karta when an elder member was alive?
- Did the High Court rightly affirm that the first appellate court complied with O.41 R.31 CPC?
- Did the contractual tenancy end just by filing an eviction petition? Could rent be enhanced during or after termination?
- Could the landlord issue a Section 6A notice for a 10% rent increase without the Rent Controller’s leave during a Section 15 deposit order?
Rules
- Younger member as manager/Karta—permitted when: (i) elder/Karta unavailable; (ii) elder relinquishes; (iii) exceptional necessity for family; (iv) father’s absence/unknown whereabouts or compelling distance.
- O.41 R.31 CPC—first appellate court must frame points, record reasons, and state decision on each point.
- Delhi Rent Control Act, 1958—Section 6A permits 10% rent increase after the statutory period by notice; Section 15 governs deposit orders and does not freeze 6A rights.
Facts (Timeline)
 
            Arguments
Appellants (Tenants)
- Suit not maintainable—elder member alive; younger cannot act as Karta.
- First appellate court failed O.41 R.31 standards.
- Filing eviction ended tenancy; rent cannot be enhanced thereafter or during Section 15 proceedings.
Respondents (Landlord/HUF)
- Elder brother abroad; power of attorney in favour of Jasraj; practice shows Jasraj managed and received rent.
- First appeal addressed issues sufficiently.
- Section 6A allows 10% increase post 3 years with notice, even during proceedings.
Judgment (Held)
 
            - Karta authority upheld: Elder (Dhuman Raj) lived permanently in the UK and had executed POA in favour of Jasraj. No family member protested. Tenant, having paid rent to Jasraj, is estopped from objecting.
- O.41 R.31 compliance: No ground to interfere with the High Court’s view that the first appellate court handled issues sufficiently.
- Tenancy & rent increase: Filing eviction does not by itself end tenancy. After three years, Section 6A permits a 10% increase with notice, even during ongoing proceedings and Section 15 orders.
- Outcome: Appeal dismissed; time granted to vacate; respondent free to execute eviction decree as per law.
Ratio
Practical management trumps form. A younger member can act as Karta if the elder is unavailable or has delegated authority, and conduct shows acceptance. Section 6A operates independently: a statutory 10% enhancement with notice is valid even during eviction proceedings.
Why It Matters
- Clarifies when a younger member may act as Karta for HUF litigation and management.
- Confirms that rent enhancement under Section 6A can proceed despite pending eviction cases and deposit orders.
- Reinforces appellate duties under O.41 R.31 CPC.
Key Takeaways
Unavailability + POA + conduct = valid representation by younger member.
Tenant who paid rent to the manager cannot later deny his authority.
10% increase after three years with notice—proceedings don’t freeze it.
First appeal must show issues, reasons, and decisions; here, it passed muster.
Mnemonic + 3-Step Hook
Mnemonic: “Karta Can—When Elder Can’t”
- Authority Check: Elder absent/POA? Practice shows younger managed?
- Appeal Check: Look for O.41 R.31 compliance—points, reasons, results.
- Rent Check: After 3 years + notice = 10% hike under Section 6A, even during cases.
IRAC Outline
| Issue | Rule | Application | Conclusion | 
|---|---|---|---|
| Maintainability by younger Karta; rent increase; effect of eviction filing; appellate compliance. | Younger may manage if elder unavailable/POA; Sec 6A: 10% with notice; O.41 R.31 essentials. | Elder abroad, POA to Jasraj; rent long received by him; notices served for 6A. | Suit maintainable; rent increase valid; appeal dismissed; decree executable with time to vacate. | 
Glossary
- HUF
- Hindu Undivided Family—a joint family unit recognized in tax and property law.
- Karta
- Manager of an HUF who handles property and litigation on behalf of the family.
- Section 6A (DRC Act)
- Allows 10% rent increase after three years with a valid notice.
- O.41 R.31 CPC
- Requires first appellate judgments to state points, reasons, and decisions clearly.
FAQs
Related Cases
Shanti Sharma v. Ved Prabha (1987)
Eviction under rent control—landlord’s rights and statutory framework.
Rent ControlHUF Management Cases
Principles on who may act as Karta and when younger members can manage.
HUF & KartaShare
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