The bona fide requirement for re-erection of a building under S. 13(3)(a)(iii) of the Patiala and East Punjab States Union Urban Rent Restriction Ordinance, 2006 BK (No. VIII of 2006 BK) requires the landlord to establish the genuineness of the claim, considering the surrounding circumstances, including the building's condition, the landlord's means, and the possibility of more profitable use after reconstruction.

Judgment:

HIDAYATULLAH, J. : This is an appeal by special leave against an order of the High Court of Punjab at Chandigarh, dated April 7, 1961.

2. The appellants are five tenants, who have been evicted from certain shops and chobaras in the town of Patiala, on the application of the first respondent the landlord. The application by the landlord was made in June, 1957, under S.13 of the Patiala and East Punjab States Union Urban Rent Restriction Ordinance, 2006 BK (No. VIII of 2006 BK). The grounds urged by the landlord were (a) non-payment of rent by the tenants, (b) non-payment of house tax by the tenants and (c) that the shops were in a state of great disrepair and were dilapidated, and the landlord wished to rebuild them after dismantling the structures. The landlord averred that he had obtained sanction of the Municipal Committee to a proposed plan of construction, and accumulated some building material before making the application.

3. The tenants resisted the application. The Rent Controller framed issues relating to the three grounds; but the first two have ceased to be material now. On the issue relating to the third ground, the Rent Controller held that in deciding whether the tenants should be ordered to hand over possession to the landlord the Courts must have regard to the bona fides of the request of the landlord, which meant that the desire to rebuild the premises should be honestly held by the landlord. but that the condition of the building also played an important part in determining whether the landlord had the intention genuinely and was not using this excuse as a device to get rid of the tenants. In this connection, the Rent Controller observed that the state of the building the means of the landlord, and the possibility of a better yield by way of rent, all entered into the appraisal of the landlord s state of mind. Examining the case from this angle, the Rent Controller held that there was hardly any proof that the building was in a dilapidated condition. One solitary witness who testified to this admitted that he had not seen the building from the inside. The landlord himself did not give evidence. On the other hand, there was ample evidence that the building was good. As regards the financial status of the landlord the witnesses who stated on his behalf that he could send Rs. 5,000 to Rs. 10,000 knew nothing about his means. Even the landlord s brother, who conducted this case on behalf of the landlord, could not give any details. The plan showed a building requiring about Rs.20,000 to build. The landlord had an income of Rs.200/- per month and his family consisted of his wife and five children. The Rent Controller, therefore, held that he had no means to rebuild the premises. The Rent Controller did not feel impressed by the alleged purchase of 40 bags of cement, because a greater part of the cement was used up already in building two or three latrines, and the quantity left was wholly insufficient for the proposed building. He, therefore, decided the issue against the landlord.

4. On appeal, these findings were confirmed by the appellate authority, who held that the shops and chobaras were in good condition, and that the landlord was not, in good faith, wanting to replace the building when he had no means to build it. Against the order of the appellate authority, an application for revision purporting to be under S.15 (5) of the East Punjab Urban Rent Restriction Act, 1949 (3 of 1949) was filed in the High Court. This application was allowed. The learned single Judge posed the question thus:

"The question in the present case is whether there is a bona fide desire to rebuild the premises?"

He referred to an earlier decision of a Divisional Bench of that Court (Tilak Ram v. Hem Raj, Civil Revision No. 223 of 1960), in which Cosain, J. laid down the law in the following words:

"It is pertinent to note that the word building in the aforesaid clause is not qualified by the words requiring reconstruction or