Corporate Restructuring Among Family Members Does Not Constitute Subletting Under Public Premises Act

sketch of the Bombay High Court
Case
ECONOMY ENGINEERING CO. AND ORS. v. THE ORIENTAL INSURANCE CO.LTD. AND ANR. (Bombay High Court, 28-09-2026)
Law
Constitution of India, Public Premises (Eviction of Unauthorised Occupants) Act, Transfer of Property Act.

Highlights of the Judgment:

  • Examination of whether converting a sole proprietorship into a partnership and private limited company among family members constitutes subletting.
  • Application of the doctrine of lifting the corporate veil to ascertain true control and identity in tenancy matters.
  • Analysis of the core ingredients of sub-tenancy requiring unlawful parting of possession and profiteering under public premises legislation.
  • Judicial interpretation determining that the 2015 amendment to Section 5 of the Public Premises Act operates prospectively.
  • Review of precedents establishing that internal business restructuring without third-party induction avoids unauthorized occupant status.