Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1988 (3) TMI 449

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rrying on business in hardware in the front portion of the ground floor of the premises bearing No. 157, Kutcheri Road, Mylapore, Madras-4. The appellant purchased the said running business from the brother of the respon-dent on 5.7.1974. The said building, however, belonged to the father of the respondent. After purchasing the business, the appellant became a tenant under the father of the respondent by paying an advance of ₹ 1,500 and agreeing to pay a rent at the rate of ₹ 450 per month for the portion in which it commenced to carry on the business. In the rear portion of the ground floor of the premises one Mrs. Janaki Ammal was residing as a tenant. Mrs. Janaki Ammal vacated the said residential portion in October, 1974. With effect from 5.10.1974 the appellant took the portion vacated by Mrs. Janaki Ammal also on rent from the father of the respondent by paying ₹ 525 as advance and agreeing to pay a monthly rent of ₹ 175. The rent of this portion was increased subsequently to ₹ 315 per month. On 25.11.1980 the appellant received a notice from an advocate, who was acting on behalf of the father of the respondent terminating the tenancy of the appe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... did not arise for consideration at all in case falling under secti10 10(3)(a)(iii) of the Act. It, however, held that the claim of the respondent was bona fide. Accordingly, the High Court allowed the revision petition and directed the appellant to quit and deliver vacant possession of the premises in question to the respondent. This appeal by special leave is filed against the judgment of the High Court of Madras. The crucial question which arises for consideration in this case is whether it is necessary for a landlord, who institutes a petition under section 10(3)(a)(iii) of the Act, to establish that his requirement is bona fide or not. As can be seen from the long title of the Act it was enacted by the State Legislature to amend and consolidate the law relating to the regulation of the letting of residential and non-residential buildings and the control of rents of such buildings and the prevention of unreasonable eviction of tenants therefrom in the State of Tamil Nadu. Section 10 of the Act provides that a tenant shall not be evicted whether in execution of a decree or otherwise except in accordance with the provisions of section 10 or sections 14 to 16 of the Act. The ma .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the purpose of keeping a vehicle or adapted for such use. If the landlord required such a building for his own use or for the use of any member of his family and if he or any member of his family is not occupying any such building in the city, town or village concerned which is his own he can apply for the eviction of the tenant therefrom. Sub-clause (iii) of clause (a) of sub- section (3) of section 10 of the Act deals with other kinds of non-residential buildings. If the landlord or any member of his family is not occupying for purposes of a business which he or any member of his family is carrying on, a non- residential building in the city, town or village concerned which is his own, a landlord may, subject to the provisions of clause (d), apply to the Controller for an order directing the tenant to put the landlord in possession of such a building. It may be stated here that the words 'if the landlord required it for his own use or for the use of any member of his family' are not to be found in sub-clause (iii) of section 10(3)(a) of the Act. Clause (e) of section 10(3) of the Act, however, provides that the Controller shall, if he is satisfied that the claim of the la .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in almost all the States in India. The provision in question has to be construed against this background. The Act has been in force from 1960. In Moti Ram v. Suraj Bhan Other, [1960] 2 S.C.R. 896 this Court was required to construe section 13(3)(a)(iii) of the East Punjab Urban Rent Restriction Act, 1949 which at the relevant time provided that a landlord might apply to the Controller for directing a tenant to put the landlord in possession of the building in question if he required it for the re-construction of that building or for its replacement by another building or for the erection of other buildings. In that case the Rent Controller and the Appellate Authority had rejected the claim of the landlord on the ground that the landlord had not established that the premises in question were required by him bona fide. The High Court while accepting that the requirement in question must be shown to be bona fide held that on the evidence the findings of the Courts below that the landlord's requirement was not bona fide were not correct. The High Court accordingly directed the eviction of the tenant in question. This Court while affirming the decision of the High Court held th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... triction Act would be defeated if the landlords were to come forward and to get tenants turned out, on the bare plea that they wanted to reconstruct the house without first establishing, that the plea was bona fide with regard to all circumstances, viz. that the houses needed reconstruction or that they had means to reconstruct them. Accordingly, the judgment of the High Court was reversed and the petitions for eviction were dismissed. Following the observations made in the above decisions in Nathella Sampathu Chetty v. Sha Vajingjee Bapulal, [1967] 1 Mad. L.J. 289 a Division Bench of the High Court of Madras construed section 10(3)(a)(iii) of the Act thus: Section 10 of the Madras Buildings (Lease and Rent Control) Act, 1960, provides for eviction of tenants in certain circumstances. Sub-section 3(a)(iii) of the section allows a landlord to apply to the Controller for an order directing a tenant to put him in possession of the building if the landlord is not occupying for purposes of business which he is carrying on, a non- residential building in the city, town or village concerned which is his own. The second proviso to this clause is to the effect that where a landlord has .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he tenant. In other words eviction under the Rent Control Act can be effected only on the grounds mentioned in s. 10. The landlord may have a right to evict the tenant under the general law. S. 10(3)(a) says that the landlord may, subject to the provisions of Cl. (d), apply to the Controller for an order directing the tenant to put the landlord in possession of the buildings. S. 10(3)(a)(i) deals with residential buildings. S. 10(3)(a)(ii) deals with non-residential buildings used for purpose of keeping vehicles. S. 10(3)(a)(iii) is in respect of non-residential buildings. S. 10(3)(b) gives a right to religious, charitable, educational or other public institutions, to institute proceedings before the Controller if the institution requires the building. S. 10(3)(c) is for additional accommodation. S. 10(3)(d) speaks of tenancy for specified period agreed between the landlord and the tenant and it prohibits the landlord from applying, before the expiry of such period. Now after these sections, S. 10(3)(e) runs thus: 'The Controller shall, if he is satisfied that the claim of the landlord is bona fide make an order directing the tenant to put the landlord in possession of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cerned provisions. It is not the desire of the landlord, but there must be an element of need for the landlord before it could be stated that he requires the premises for his own occupation. The features referred to above, cannot be eschewed as irrelevant, for after all bona fide will have to be proved in an ordinary manner like any other fact in issue, and the entire gamut of facts and circumstances has to be adverted to on this question. As already stated, I am not expressing any opinion over these features on merits, and it is for the Appellate Authority to advert to them and adjudicate upon the question afresh one way or the other. The discussions above oblige me to interfere in revision and accordingly the revision is allowed and the matter stands remitted to the Appellate Authority for him to consider it afresh taking note of all the relevant features and factors of the case on the question of bona fides, and pass appropriate orders. Both the counsel represent that for the purpose of comprehensive adjudication of the matter, further evidence has to be adduced. I take note of the request of both the counsel and I direct that the Appellate Authority will permit the parties to p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... use or for the use of any member of his family and if he or any member of his family is not occupying any such building in the city, town or village concerned which is his own; and in case it is any other non-residential building, if the landlord or any member of his family is not occupying for purposes of a business which he or any member of his family is carrying on, a non-residential building in the city, town or village concerned which is his own.' If the two sub-clauses are not so read, it would lead to an absurd result. The non-residential building referred to in sub- clause (ii) is a building which is used for the purpose of keeping a vehicle or adapted for such use and all other non- residential buildings fall under sub-clause (iii). The State Legislature cannot be attributed with the intention that it required a more stringent proof by insisting upon proof of bona fides of his requirement or need also when a landlord is seeking eviction of a tenant from a garage than in the case of a non-residential building which is occupied by large commercial house for carrying on business. The learned counsel for the respondent was not able to explain as to why the State Legislatur .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o seek or ask or for on the ground of right etc. In the context of Rent Control Law which is enacted for the purpose of giving protection to tenants against unreasonable evictions and for the purpose of making equitable distribution of buildings amongst persons who are in need of them in order to prove that his claim is bona fide a landlord should establish that he deserves to be put in possession of the premises which is in the occupation of a tenant. Any decision on the question whether a landlord deserves to be put in possession of a premises in the occupation of a tenant should naturally depend upon the bona fides of the landlord's requirement or need. The word 'claim' in clause (e) of section 10(3) of the Act should, therefore, he construed as 'the requirement' of the landlord or his deservedness. 'Deserve' means 'to have a rightful claim' or 'a just claim'. Since clause (e) of section 10(3) of the Act is also applicable to a petition filed under sub-clause (iii) of section 10(3)(a) of the Act it becomes necessary to examine whether the requirement of the landlord is bona fide. Otherwise a landlord will be able to evict a tenant to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 39; in the present case without there being a difference. In the circumstances we are of the view that M/s. Mahalakshmi's case (supra), M. Abdul Rahman's case (supra) and A. Khan Mohammed's case (supra) have been wrongly decided. They are liable to be overruled. We accordingly overrule them. We hold that a landlord seeking eviction of a tenant from a non-residential premises under section 10(3)(a)(iii) of the Act in order to succeed in his petition should establish that he bona fide requires the premises in addition to proving the other ingredients referred to therein. The judgment of the High Court which has proceeded on a wrong basis has, therefore, to be set aside. Since the High Court while allowing the revision petition has approached the case from a wrong angle, it is necessary to direct the High Court to decide it afresh in the light of what we have stated above. We, therefore, set aside the judgment of the High Court and remand it to the High Court again to decide it afresh. If the High Court finds that the case should be remanded to the Trial Court to enable any of the parties to lead evidence on the question of the bona fide requirement of the landlord it m .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates