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As per case facts, the landlord initiated eviction proceedings against M/s Mahendra Saree Emporium in 1987 under the Karnataka Rent Control Act, 1961, alleging unlawful subletting after the proprietary concern
...converted into a partnership business including family members. The Rent Controller dismissed the petition, but the High Court reversed this, ordering eviction. The tenant appealed to the Supreme Court. During the appeal, the Karnataka Rent Act, 1999, replaced the old act, leading to questions about the pending case's abatement, as the new act did not apply to premises of this size. The question arose whether proceedings pending before the Supreme Court under Article 136 of the Constitution would abate due to the repeal of the old act and the non-applicability of the new act to the premises, and if the conversion of a sole proprietorship into a family partnership constituted unlawful subletting. Finally, the Supreme Court held that the appeal did not abate, as the Legislature did not intend to curtail its Article 136 jurisdiction. It further ruled that converting a sole proprietorship into a partnership with family members, without the tenant parting with legal possession or control, does not amount to unlawful subletting under the Old Act. Therefore, the eviction proceedings were dismissed.
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