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1974 Supreme(SC) 3

SUPREME COURT OF INDIA
9-1-1974.
S.N. DWIVEDI AND P.K. GOSWAMI, JJ.
D. N. Sanghavi and Sons, Appellant
Versus
Ambalal Tribhuwan Das, Respondent.
Civil Appeal No. 1643 of 1967, D/- 9-1-1974.

Advocates:
A.G.Ratnaparkhi, A.T.M.SAMPATH, D.V.PATEL, E.C.AGARWAL, M.L.SHRIVASTAV, M.N.Phadke

Headnote:

Landlord and Tenant Act, 1954 - Madhya Pradesh Accommodation Control Act, 1961 - Section 12 (1) (f) – Tenancy and Land lord 0 – Tenants of accommodation - Meaning of phrase "his business" in Section 12 (1) (f) - Respondent is owner of suit accommodation - Appellants 2 to 4 are carrying on business in name of first appellant and Sons - They are tenants of accommodation - Courts below have held that it was being used predominantly as a shop by them and that a part of it was being used by them as their residence for sake of more efficient conduct of business they were carrying on in shop - Respondent purchased shop some time in 1963 - Appellant were then carrying on their business in shop - Whether in circumstances of case business for which he required the accommodation could be said to be "his business" - Held, It is evident from this finding that landlord was a managing partner and that he himself along with firm was to occupy demised premises after getting possession - This decision, far from helping Sri Patel, helps appellants in view of construction placed by us on clause (f) of Section 12 (1). Tunstall (supra) deals with an entirely different set of facts - There landlord was carrying on business - She gave notice to tenant that she wanted rented shop for her own business - It was claimed by landlord that the tenant has assigned premises to a partnership firm of which he was a partner - There was no assignment - In In view of our decision against respondent on basis of construction of Section 12 (1) (f), it is not necessary for us to decide several other points raised by Sri Phadke - Appeal allowed.

Judgment

DWIVEDI, J.:- The facts of this case fall within a short compass. The respondent, Amba Lal Tribhuwan Das, is the owner of the suit accommodation. It is situated in Siyaganj, Indore. The appellants 2 to 4 are carrying on business in the name of the first appellant, D. N. Singhavi and Sons. They are the tenants of the accommodation. Courts below have held that it was being used predominantly as a shop by them and that a part of it was being used by them as their residence for the sake of more efficient conduct of the business they were carrying on in the shop. The respondent purchased the shop some time in 1963. The appellant were then carrying on their business in the shop. They attorned to the respondent. On October 10, 1964, the respondent gave the requisite notice to them to vacate. On November 16, 1964 he instituted a suit for their ejectment from the accommodation. It was alleged by him that he needed the accommodation for continuing "his business" within the meaning of Section 12 (1) (f) of the Madhya Pradesh Accommodation Control Act, 1961 (hereinafter called the Act). At the evidence stage he gave evidence that it was needed for partnership business. There arose two crucial questions in the case: (1) What is the meaning of the phrase "his business" in Section 12 (1) (f)? (2) whether in the circumstances of the case the business for which he required the accommodation could be said to be "his business". The first question arose because he wanted the accommodation for continuing the business of a partnership firm of which he was one partner. There were two other partners. They are his brothers. The trial court held against the respondent on the second issue and dismissed the suit. No view was expressed on this issue. The respondent filed an appeal from the judgment. The appeal court reversed the judgment and decreed the suit for ejectment of the appellant. The appeal court recorded this finding of fact:

".......Ambalal (plaintiff) has stated...that the partnership shop was previously run by his father. It is now run by the brothers in partnership. This business is thus of the family alone. Their shop is at Siyaganj itself where the premises in suit are situate."

On this finding the appeal court reached the conclusion that the business of the partnership firm, of which he is one partner is "his business" within the meaning of Section 12 (1) (f). As the firm s business was being carried on in a rented premises, his need was found to be genuine. The appellants then filed an appeal in the Madhya Pradesh High Court from the judgment of the appeal Court. The High Court has upheld the judgment of the Appeal Court. It is noteworthy that the appeal court has simply assumed that the partnership business is "his business". No reasonings are given in support of the conclusion. The High Court agreed with the appeal court that the firm s business of which the respondent was one partner is "his business". The reasoning of the High Court in support of this conclusion is summed up in the following passage in the judgment:

"In the present case what we are concerned with is whether the landlord can be said to have the necessity when the need was for the partnership firm. It cannot be doubted that when a person runs a business in partnership with others he does it for himself and therefore his necessity is identified with the necessity of the firm. Whether he wants to do business himself or he does it along with others, it still remains that he needs it for his own purpose."

2. It is evident from this passage that the High Court, like the appeal court, has overlooked the words of Section 12 (1) (f) in arriving at its conclusion. The High Court considered that it is an elementary proposition of law that a partnership business is the business of cach and every partner so that it will be "his business". It seems that the High Court was misled by the apparent meaning of this phrase so that the necessity of examining the scheme of the Act and



































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