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M/s. Nopany Investments (P) Ltd. v. Santokh Singh (HUF)

31 October, 2025
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Nopany Investments v. Santokh Singh (HUF) — Karta, Rent Increase & Tenancy | The Law Easy
Supreme Court 2007 2007 (13) JT 448 Rent & HUF ~7 min read

M/s. Nopany Investments (P) Ltd. v. Santokh Singh (HUF)

CASE_TITLE • PUBLISH_DATE: 2025-10-31 • AUTHOR_NAME: Gulzar Hashmi • LOCATION: India

PRIMARY_KEYWORDS: Karta powers, Section 6A DRC Act, tenancy
SECONDARY_KEYWORDS: HUF, CPC O.41 R.31, eviction suit
Slug: ms-nopany-investments-p-ltd-v-santokh-singh-huf
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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

  1. Could Jasraj Singh file and conduct the eviction suit as Karta when an elder member was alive?
  2. Did the High Court rightly affirm that the first appellate court complied with O.41 R.31 CPC?
  3. Did the contractual tenancy end just by filing an eviction petition? Could rent be enhanced during or after termination?
  4. 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, 1958Section 6A permits 10% rent increase after the statutory period by notice; Section 15 governs deposit orders and does not freeze 6A rights.

Facts (Timeline)

Timeline graphic for the Nopany Investments case
Lease: Appellants took premises from Dr. Santokh Singh HUF for 4 years in New Delhi.
After expiry: Eviction notice followed by an eviction petition filed by Jasraj Singh as Karta.
ARC order: Rent directed at ₹3,500 per month.
Section 6A notices: Jasraj sent 10% enhancement notice and termination; tenant disputed enhancement.
Fresh notice: Landlord reiterated 10% increase and termination.
Suit: HUF, through Jasraj as Karta, sued for eviction.
Trial: Decree for possession in favour of HUF.
First appeal: Dismissed summarily by ADJ.
Second appeal: High Court remanded; later, another second appeal was dismissed.
Supreme Court: Tenant brought the matter by special leave.

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)

Judgment illustration for Nopany Investments v. Santokh Singh (HUF)
  • 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

Karta Proxy

Unavailability + POA + conduct = valid representation by younger member.

Estoppel

Tenant who paid rent to the manager cannot later deny his authority.

Sec 6A Works

10% increase after three years with notice—proceedings don’t freeze it.

O.41 R.31

First appeal must show issues, reasons, and decisions; here, it passed muster.

Mnemonic + 3-Step Hook

Mnemonic: “Karta Can—When Elder Can’t”

  1. Authority Check: Elder absent/POA? Practice shows younger managed?
  2. Appeal Check: Look for O.41 R.31 compliance—points, reasons, results.
  3. 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

Generally no. If the tenant has treated him as the manager and paid rent, estoppel can apply.

No separate leave is required; a valid notice after the statutory period is enough.

No. Termination needs a proper notice. Proceedings do not stop a legal rent increase.

A younger member can manage if the elder is unavailable and has delegated authority, as recognized here.
Reviewed by The Law Easy
Rent Control HUF Civil Procedure
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