SUPREME COURT OF INDIA
A. ALAGIRISWAMI, P.K. GOSWAMI AND N.L. UNTWALIA, JJ.
S. M. Gopalakrishna Chetty, Appellant
Versus
Ganeshan and others, Respondents.
Civil Appeals Nos. 493-495 of 1974, D/- 11-8-1975.
Advocates appeared
Mr. K. S. Ramamurthi, Sr. Advocate, (M/s. T. N. Vallinayagam, R. N. Nath and V. Mayakrishnan, Advocates with him), for Appellant,
Madras Buildings (Lease and Rent Control) Act 1960 - Section 25 and 14 (1) (b) - Tenants - Possession of Building to Landlord - Petition is maintainable to evict tenants - Demolition and for Reconstruction - Appeals against Order - Orders of Appellate Authority that appellant has no right to evict respondents - Whether landlord in this case, who is holder of life interest in property, is entitled to evict tenants under Section 14 (1) (b) of the Act on ground that building is bona fide required by landlord for demolition and for reconstruction - Second question raised in one of the appeals is whether a single petition is maintainable to evict tenants from two different tenancies one for residential purpose and other for non-residential purpose - Latter point has been held by High Court in favour of landlord but tenants are raising it in seeking to support the earlier order of Appellate Authority – Held, 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 tenant to deliver possession of the building to the landlord before a specified date - Landlord includes person who is receiving or is entitled to receive rent of a building, whether on his own account or on behalf of another or on behalf of himself and others or as an agent, trustee, executor, administrator, receiver or guardian or who would so receive the rent or be entitled to receive the rent, if the building were let to a tenant - Present landlord who holds a life interest in premises and who admittedly has been on his own right under the Deed of Settlement as a trustee receiving rents of premises from the tenants - We are not even concerned with the question as has been sought to be established in the case by proving that there is no possibility of any objection from daughters of the settler or from any other remainder-men - It is sufficient to observe that rights and remainder-men with regard to the terms of Deed of Settlement will have to be worked out in appropriate proceeding if necessary, and general law will govern the matter if any occasion arises - Landlord has every right to demolish his property in order to build a new structure on the site with a view to improve his business or to get better returns on his investment. Such a step, per se, cannot be characterised as mala fide on the part of the landlord. There is, therefore, no merit in this contention - Appeals allowed.
Judgement
GOSWAMI, J.:- These appeals by special leave are directed against the order of the High Court of Madras in Three Civil Revision Petitions under Section 25 of the Madras Buildings (Lease and Rent Control) Act 1960 (briefly the Act) whereby the High Court refused to interfere with the orders of the Appellate Authority under the Act holding that the appellant (hereinafter to be described as the landlord) has no right to evict the respondents (hereinafter to be described as the tenants) from the premises in question on the ground of demolition and reconstruction,
2. The tenancy under the landlord is admitted by the tenants. There is also no question with regard to the validity of the notice of eviction. The only questions in controversy in these appeals are whether the landlord in this case, who is the holder of life interest in the property, is entitled to evict the tenants under Section 14 (1) (b) of the Act on the ground that the building is bona fide required by the landlord for demolition and for reconstruction. The second question raised in one of the appeals is whether a single petition is maintainable to evict the tenants from two different tenancies one for residential purpose and the other for non-residential purpose. The latter point has been held by the High Court in favour of the landlord but the tenants are raising it in seeking to support the earlier order of the Appellate Authority.
3. The premises are situated at Anna Pillai Street, Madras, Originally the premises belonged to late S. Manicka Chettyar, father of S. M. Gopalakrishna, the present landlord. By virtue of a Deed of Settlement executed by S. Manicka Chettyar on May 9, 1934, possession of the premises was delivered to his wife, Manoranjithammala, as trustee and guardian of his three minor children, S. M. Gopalakrishna then aged 13 years, and his two minor daughters, Indrani Ammal and Palani Ammal. We are not concerned with the various directions in the Deed of Settlement except to note the admitted position that Manoranjithammala was allowed to enjoy the rents and profits of the property for her lifetime subject to certain charges mentioned in the Deed. After the lifetime of the settlor s wife, his son, S. M. Gopalakrishna (appellant) "shall enjoy the rents and profits of the said property .....:..... for his lifetime" subject to certain charges on account of his two sisters. It is further mentioned in the Deed that after the lifetime of Gopalakrishna, his son and son s heir of any predeceased son living at that time shall enjoy the property subject to identical charges as absolute owners with right of sale, gift, etc. There are further directions in case of other contingencies with which we are not concerned. We, may however, note that S. M. Gopalakrishna is issueless.
4. From the above terms of the Settlement it is contended by the tenants that the landlord has only a life interest in the premises in question and that it is inherent in such a life interest that it is not permissible for the landlord to invoke Section 14 (1) (b) as grounds for eviction of the tenants by demolition of the property for the purpose of reconstruction, It is emphasised that since the interest of the remainder-men may be prejudiced, the landlord with a life interest in the premises cannot evict the tenants on these grounds.
5. The Rent Controller held that the requirement of the landlord was bona fide and ordered for eviction of the tenants. The Court of Small Causes, which is the appellate authority, allowed the appeals lodged by the tenants against the orders of eviction and set aside the orders of eviction. As noticed earlier the High Court refused to interfere in revision.
6. The High Court agreed with the view of the Appellate Authority that the landlord had no right to ask for eviction of the respondents on the ground of demolition and reconstruction, he admittedly having only a life interest or right to enjoy the property for his life. The appellant submits that thi
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