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2000 Supreme(SC) 832

2000(4) Supreme 346
SUPREME COURT OF INDIA
(From Karnataka High Court)
G.B. Pattanaik, R.P. Sethi & Shivaraj V. Patil, JJ.
Gantusa H. Baddi (Dead) by LRs. -Appellants
versus
Meerabai G. Pai & Ors. -Respondents
Civil Appeal No. 1510 of 1999
Decided on 24-4-2000
Counsel for the Parties :
For the Appellants : G.L. Sanghi, Sr. Advocate, (R.S. Hegde) Advocate, for P.P. Singh, Advocate.
For the Respondents : S.N. Bhat, D.P. Chaturvedi, Advocates.

IMPORTANT POINTS
1. Tenancy in respect of a non-residential premises under the Karnataka Rent Control Act is heritable.
2. When an individual is a tenant of a business premises and the individual having become a partner of a firm which carries on business in the tenanted premises, if the firm acquires vacant possession of a suitable building the individual tenant does not incur the liability of being evicted under Section 21(p) of the Karnataka Rent Control Act.

Headnote:(i) Karnataka Rent Control Act-Section 3(a) and (x)-Tenancy in respect of non-residential premises-Is heritable.

       The tenancy in respect of a non-residential premises under the Karnataka Rent Control Act is heritable. (Para 7)

       (ii) Karnataka Rent Control Act-Section 21(1)(p)-Acquiring of alternative accommodation-Eviction on ground of-Individual tenant-Tenant becoming a partner of firm-Firm carrying on business in premises of individual tenant-Firm acquiring vacant possession of suitable building-Definition of term tenant cannot bring within its scope a partnership firm of which tenant himself may be a partner-Individual tenant does not incurs liability of being evicted under Section 21(p).

       The language of the provision is clear and unambiguous and given its plain grammatical meaning it is susceptible of only one construction that it is only when the tenant has built or acquired vacant possession of or has been allotted a suitable building, then only the provisions of Section 21(1)(p) of the Act are attracted and not otherwise. The expression "tenant" has been defined in Section 3(r) and howsoever vide meaning to the said definition be given, it will not bring within its scope, a partnership firm of which the tenant himself may be a partner. Because of acquiring vacant possession of a building by the partnership firm of which the tenant may be a partner, the tenant does not become liable to be evicted by application of Section 21(1)(p). (Para 9)

       In the case in hand the individual namely deceased Gantusa H. Baddi was the tenant in respect of the premises and application for eviction had been filed as against him. The so-called alternative accommodation, has been acquired, admittedly by a partnership firm, no doubt, consisting of the original tenant the father and his sons wherein the father has 15% share but it cannot be held that the said acquisition of vacant possession is by the tenant. The High Court has given a peculiar reasoning on consideration of evidence adduced to the effect that since in the disputed premises, the business of the firm was carried on, though it had been tenanted to an individual, the moment a vacant possession has been acquired by the firm, the liabilities incurred under Section 21(p) of the Act, we are unable to pursuade ourselves to agree with the aforesaid conclusion of the High Court. It is neither the case of the landlord in the application for eviction that the tenant namely deceased Gantusa H. Baddi, has acquired vacant possession of a building nor has it been proved in course of the proceeding. That being the position, the conclusion of the High Court that the tenant has incurred the liability of having evicted under Section 21(1)(p) of the Act, the moment a business premises is acquired by the partnership firm is erroneous and cannot be sustained. (Para 9)

       

JUDGMENT

Pattanaik, J.-This appeal is directed against the revisional Order of a learned Single Judge of Karnataka High Court, dismissing the Revision Petition and affirming the order of eviction passed by the District Judge in his Revisional Jurisdiction under the provisions of Karnataka Rent Control Act. The legal representatives of the deceased tenant are the appellants. The landlord filed an application for eviction under Section 21(1)(a), (h) and (p) of the Act, alleging that the tenant has not paid or tendered the arrears of the rent legally recoverable from him and that the premises are reasonably and bona fide required by the landlord for occupation of himself as well as on the further assertion that the tenant has acquired vacant possession of an alternative suitable building. The Munsif at Yellapur, on consideration of the entire materials before him held against the landlord on all counts, and dismissed the application for eviction by his order dated 4.10.1991. The said order was assailed in revision under Section 50 of the Act. The Revisional Court came to the conclusion that the Munsiff had not properly appreciated the evidence on record. Though he did not set aside the findings of the Munsiff, on the question of arrears of rent and the bona fide requirement, which are the two grounds under Section 21(1)(a) and (h) of the Act, but he did set aside the finding on the third question namely whether tenant has acquired a suitable alternative premise, as required under Section 21(1)(p) of the Act and came to hold that the eviction sought for on the grounds available under Section 21(1)(p) of the Act has to be allowed. Against the said revisional order of the District Judge in exercise of powers under Section 50 of the Act, the tenants moved the High Court. The landlord also filed a revision petition against the findings of the revisional Court on the question of arrears of rent and bona fide requirements. The original tenant died during the pendency of the said revision petition and his legal heirs were substituted and brought on record. The High Court disposed of the revision on two grounds. Following the Judgment of this Court in the case of Venkatesh Thimmaiah Gurjalkar v. S.S. Hawaldar1, the High Court came to the conclusion that the premises in question being non-residential and under the Act the tenancy in respect of non-residential premise being not heritable and admittedly the tenant having died, the revisional application is liable to be dismissed. On the question whether the provisions of Section 21(1)(p) of the Act is attracted or not, the High Court came to the conclusion that in view of the evidence of the son of the original tenant that it was the partnership firm, which was running the business in the schedule premises and the said firm has acquired an alternative premise, it must be held that the grounds for eviction under Section 21(1)(p) has been made out. With these findings, the revision filed by the tenant as well as the one filed by the landlord stood dismissed. On grant of special leave by this Court, this appeal was placed before a Bench of two learned Judges, wherein a contention was advanced that the decision of this Court in Venkatesh Thimmaiah s case, on which the High Court has relied upon, is contrary to the decision of this Court in the case of Vishnu Narayan Gadskari (Dead) by L.Rs. v. Paralal Baladev Uza and Ors.2, and in both the cases, the question for consideration was whether under the Karnataka Rent Control Act, the tenancy in respect of a non-residential premises can be held to be heritable or not. In view of the two conflicting decisions, referred to above, the Bench, thought it fit to refer the matter to a larger Bench and that is how the matter has been placed before us.

2. The learned counsel for the appellant contends that the latter decision of this Court in Venkatesh Thimmaiah s case, must be held to have been not correctly decided, as it does not take notice of the earlier d

















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