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1974 Supreme(SC) 169

SUPREME COURT OF INDIA
D.G. PALEKAR AND P.N. BHAGWATI, JJ.
Mattulal, Appellant
Versus
Radhe Lal, Respondent.
Civil Appeal No. 2180 of 1970, D/- 28/04/1974.

Headnote:(1) Civil P.C., 1908 - S. 100 - second appeal - finding of fact - finality - finding of fact when may be disturbed - Accommodation Control Act, 1961 (MP) - S. 12 (1) (f).

       (2) Accommodation Control Act, 1961 (MP) - S. 12 (1) (f) - finding as to genuine necessity - is a finding of fact - when may be disturbed in second appeal - Civil P.C., 1908 - S. 100.

       It is obvious that the issues whether the landlord required the suit premises for the purpose of starting a new business and if so, whether his requirement was bona fide are both questions of fact. Their determination do not involve the application of legal principles to the facts established in the evidence. The findings of the District Judge on these issues are no doubt inferences from other basic facts, but that does not alter the character of these findings and they remain findings of fact. Such findings of fact cannot be interfered with by the High Court in second appeal unless it was shown that in reaching it, a mistake of law was committed or it was based on no evidence or was such as no reasonable man could reach. 1965 JLJ 973 (SC) relied on. AIR 1969 NSC 186 dissented from. [Para 10

       (3) Precedents - earlier ruling of a larger Bench - should be relied on in preference to a later ruling. [Para 11

       (4) Accommodation Control Act, 1961 (MP) - S. 12 (1) (f) - assertion of landlord that he requires the premises bona fide-are not conclusive-Court should decide this point objectively - 'requirement' - connotation of - burden of proof - is on the landlord.

       Mere assertion on the part of the landlord that he requires the non-residential accommodation in the occupation of the tenant for the purpose of starting or continuing his own business is not decisive. It is for the Court to determine the truth of the assertion and also whether it is bona fide. The test which has to be applied is an objective test and not a subjective one and merely because a landlord asserts that he wants the non-residential accommodation for the purpose of starting or continuing his own business, that would not be enough to establish that he requires it for that purpose and that his requirement is bonafide.

       The word 'required' signifies that mere desire on the part of the landlord is not enough but there should be an element of need and the landlord must show - the burden being upon him - that he genuinely requires the non - residential accommodation for the purpose of starting or continuing his own business. 1965 JLJ 973 (SC) relied on. [Para 12

       (5) Accommodation Control Act, 1961 (MP) - S. 12 (1) (f) - starting of new business - landlord need not establish preparations for establishing new business. [Para 3

       (6) Accommodation Control Act, 1961 (MP) - S. 12 (1) (f) - shop given on a single tenancy - only part needed by the landlord - he can get whole of the shop vacated. [Para 13

Judgment

BHAGWATI, J.:- It is common to find that having regard to acute shortage of non-residential as well as residential accommodation in the urban areas, litigation between landlord and tenant for recovery of rented premises is usually bitterly contested and fought to a finish right upto the highest court. This is what has happened in the present case. Twice foiled in his attempt, the respondent filed a third suit to recover possession of a shop let out to the appellant. The suit resulted in a decree for eviction by the Trial Court, but on appeal the decree for eviction was reversed by the Additional District Judge and on still further appeal, the Judgment of the Additional District judgement was set aside and the decree for eviction was restored by the High Court. The appellant challenges the judgment of the High Court in this appeal preferred by special leave.

2. The respondent is the owner of a house situate in Lohia Bazar in the city of Gwalior. The house consists of a shop on the ground floor and residential accommodation on the first floor. The respondent is in occupation of the residential accommodation on the first floor since the past few years. The ground,floor shop, which may hereinafter for the sake of convenience be referred to as the Lohia Bazar shop, has been in the possession of the appellant as a tenant for the last about thirty years. The appellant carries on business as a dealer in iron and steel materials in this shop. Originally the rent of this shop was Rs. 8/ per month but it was subsequently increased from time to time and ultimately in 1946 it was fixed at Rs. 25/- per month.

3. It appears that towards the end of 1952 the respondent decided to evict the appellant from the Lohia Bazar shop and with that end in view filed a suit for recovery of possession of Lohia Bazar shop. The respondent claimed that he genuinely required the Lohia Bazar shop for personal used and the Trial Court, accepting this requirement, passesd a decree for eviction against the appellant. The decree for eviction against the appellant. The decree for eviction was, however, reversed by the Additional District Judge in appeal since according to Madhya Bharat Premises Restriction Act, Sy. 2006, which was in force at the material time, requirement of the landlord of non-residential premises for industry or business was not a valid ground for eviction of the tenant. The suit was accordingly dismissed by the Additional District Judge on 8th December, 1956.

4. Within a few months after the dismissal of this suit, however, the respondent, undaunted by this reverse, filed another suit against the appellant for recovering possession of the Lohia Bazar shop. By the time this second suit came to be filed, the Madhya Pradesh Accommodation Control act, 1955 had come into force and under the provisions of that Act, a landlord could recover possession of rented premises from the tenant only on certain specified grounds. One of the grounds in case of nonresidential accommodation was that the landlord genuinely required the accommodation for continuing or starting his own business. Now, the respondent was throughout this period carrying on business as a grocer in a shop situate in Phalke Bazar which was taken by him on rent from one Vishwanath. With a view to availing himself of this ground for eviction under the Madhya Pradesh Accommodation Control Act, 1955 the respondent pleaded that the landlord of the Phalke Bazar shop has given him a notice to quit and, he, therefore, genuinely required the Lohia Bazar shop for continuing his grocery business. Before the suit came up for hearing, the respondent amended the plaint with the leave of the Court in March 1959 by introducing a plea that he wanted to start business as a dealer in iron and steel materials and the Lohia Bazar shop was genuinely required by him for the purpose of starting this business. This suit also followed the same pattern as the earlier one; the Trial Court passed a decree for evi















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