1996(8) Supreme 776
SUPREME COURT OF INDIA
Kuldip Singh, M.M. Punchhi, N.P. Singh, M.K. Mukherjee and S. Saghir Ahmad, JJ.
Vijay Singh etc. etc. -Appellants
versus
Vijayalakshmi Ammal -Respondent
Civil Appeal Nos. 5948-50 of 1990
Decided on 10-10-1996
Counsel for the Parties :
For the Appearing Parties : T.L. Viswanatha Iyer, Sr. Advocate, A. Ranganathan, R.K. Sharma, S. Srinivasan, A.T.M. Sampath, M.K.D. Nambordiri, A.V. Rangam, K. Rajendra Chowdhary, K.V. Mohan, Vineet Kumar, K.V. Venkataraman, K. Ram Kumar, K.V. Vishwanathan, Advocates.
Held : On reading Section 14(1)(b) along with Section 16 it can be said that for eviction of a tenant on the ground of demolition of the building for erecting a new building, the building need not be dilapidated or dangerous for human habitation. If that was the requirement there is no occasion to put a condition to demolish within a specified time, and to erect a new building on the same site. Sub-section (1) of Section 16 contemplates that permission has been granted by the Rent Controller under Section 14(1)(b) for demolition of the building, but if such demolition is not carried out in terms of the order and undertaking, then Rent Controller can order the landlord to put the tenant in possession of the building on the original terms and conditions. If the building is dangerous and dilapidated requiring immediate demolition for safety, then there is no question of Rent Controller directing landlord to put the tenant in possession of such building on the original terms and conditions, on account of the failure of the landlord to commence the demolition within the period prescribed. Similarly, there was no occasion to link the demolition of such building with erection of new building and then to give the landlord freedom from the restrictive provisions of the Act for a period of five years from the date on which the construction of such new building is completed and notified to the local authorities concerned. In this background, it has to be held that neither of the extreme position taken by the respondent or the appellants can be accepted. Permission under Section 14(1)(b) cannot be granted by the Rent Controller on mere asking of the landlord, that he proposes to immediately demolish the building in question to erect a new building. At the same time it is difficult to accept the stand of the appellants that the building must be dilapidated and dangerous, unfit for human habitation. For granting permission under Section 14(1)(b) the Rent Controller is expected to consider all relevant materials for recording a finding whether the requirement of the landlord for demolition of the building and erection of a new building on the same site is bonafide or not. For recording a finding that requirement for demolition was bonafide, the Rent Controller has to take into account : (1) bonafide intention of the landlord far from the sole object only to get rid of the tenants ; (2) the age and condition of the building; (3) the financial position of the landlord to demolish and erect a new building according to the statutory requirements of the Act. These are some of the illustrative factors which have to be taken into consideration before an order is passed under Section 14(1)(b). No court can fix any limit in respect of the age and condition of the building. That factor has to be taken into consideration along with other factors and then a conclusion one way or the other has to be arrived at by the Rent Controller. (Para 7)
(ii) Tamil Nadu Buildings (Lease and Rent Control) Act, 1960-Section 14(1)(b)-Eviction of tenant on ground of demolition of building for erecting a new building-Building in question was an old one-A number of buildings in and around had been demolished-Respondent landlady had sufficient funds for construction of new building-Order of Controller directing tenants to vacate premises called for no interference. (Para 8)
JUDGMENT
N.P. Singh, J.-These appeals have been filed on behalf of the tenants of premises bearing No.76, in Car Street, Thirupapuliyur in the State of Tamil Nadu. According to the Appellants, the said premises had been let out for non-residential purposes and the appellants had been paying the monthly rent regularly. The respondent, who is the landlady (hereinafter referred to as the respondent ) filed petitions before the Rent Controller for eviction of the appellants under Section 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 (hereinafter referred to as the Act ). It was alleged in the petitions aforesaid that the building in question was an old one and was situated in a very busy locality of the town where a number of buildings in and around the building in question had been demolished and shopping complex had been constructed with modern amenities, and as such the respondent also wanted to demolish the entire building in order to construct a new shopping complex for which necessary permission from municipal authorities had already been obtained. It was also claimed on behalf of the respondent that she had sufficient financial resources for construction of the new building. An undertaking was given on behalf of the respondent that the work of demolition of the building would commence within one month and would be completed before the expiry of three months from the date the said respondent recovered possession of the building. Those petitions were resisted on behalf of the appellants saying that the building was not an old one and it can stand for many more years to come. It was also denied that the respondent had sufficient financial resources to construct a new shopping complex. By a common order the Rent Controller came to the conclusion that the requirement of the entire building for purpose of demolition and reconstruction by the respondent was bonafide and as such the respondent was entitled to an order of eviction of the appellants from the respective portions in their possession. Appeals filed on behalf of the appellants against the said order were dismissed by the appellate authority affirming the findings recorded by the Rent Controller. Civil revision applications filed on behalf of the appellants before the High Court were dismissed at the stage of admission itself saying that in view of the concurrent findings of the courts below in respect of the bonafide requirement of the respondent for purpose of demolition and reconstruction, there was no occasion for interference by the High Court on the civil revision petitions filed on behalf of the appellants.
2. The aforesaid orders are being questioned in these appeals on the ground that the Rent Controller could not have directed eviction merely on the ground that the respondent wanted to demolish the building in question for reconstruction of a new shopping complex; any such order could have been passed only after the respondent had satisfied the Rent Controller, that the requirements and conditions prescribed under Section 14(1)(b) of the Act have been fulfilled. The relevant portion of Section 14 provides:
"14. Recovery of possession by landlord for repairs or for reconstruction.-
(1) Notwithstanding anything contained in this Act, but subject to the provisions of sections 12 and 13, on an application made by a landlord, the Controller shall, if he is satisfied-
(a) that the building is bona fide required by the landlord for carrying out repairs which cannot be carried out without the building being vacated; or
(b) that the building is bona fide required by the landlord for the immediate purpose of demolishing it and such demolition is to be made for the purpose of erecting a new building on the site of the building sought to be demolished, pass an order directing the tenant to deliver possession of the building to the landlord before a specified date.
(2) No o
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