SUPREME COURT OF INDIA
V.R. KRISHNA IYER AND V.D. TULZAPURKAR, JJ.
Metalware and Co. etc., Appellants
Versus
Bansilal Sarma and others etc., Respondents.
Civil Appeals Nos. 2087-2088, 1301 1381 of 1978 and Writ Petn. No. 4428 of 1978, D/- 4-5-1979.
WITH
S. Jatanmal Samandaraya, Appellant
Versus
Prakash Mal Bhandari and another, Respondents.
WITH
Jayantilal Jaynarayanjee, Appellant
Versus
Prakash Mal Bhandari and another, Respondents.
AND
S. Jatanmal Samandaraya, Petitioner
Versus
]Prakash Mal Bhandari and others, Respondents.
Advocates appeared
Mr. S. K. Dhingra Advocate, for Appellant in CA No. 1301 of 1978 and Petitioner in Civil. Revn. Petn. No. 4428 of 1978 : Mr. A. K. Sen, Sr. Advocate (E. C. Agarwal, Advocate with him) for Appellant in CA No. 1381 of 1978 and 2087-2088 of 1978; Mr. K. S. Ramamurthy Sr. Advocate (M/s. P. N. Ramalingam, A. T. M. Sampath, Advocates with him) (in CA No. 2087-2088 of 1978); and Mr. Y. S. Chitaley, Sr. Advocate and Mr. L. N. Singhvi, Sr. Advocate (M/s. J. S. Sinha, K. J. John, and D. Bhandari Advocates with him) (in CA Nos. 1381 and 1301 of 1978), for Respondents.
Mysore Rent Control Act – Sections 21, 27 – Tamil Nadu Buildings (Lease and Rent Control) Act 18 of 1960 – Section 14 – Reconstruction – Demolition – Appeals preferred by tenants by special leave raise a common question whether while considering the bona fide requirement of the building by the landlord for the immediate purpose of demolition and reconstruction under Section 14 (1) (b) of the Tamil Nadu Buildings (Lease and Rent Control) Act 18 of 1960 condition of the building is a wholly irrelevant factor – Held, Court is clearly of the view that the existing condition of the building far from being totally irrelevant is a vital factor which will have to be considered while pronouncing upon the bona fide requirement of the landlord under that provision which has to be done by having regard to "all the circumstances" and since in the instant case all the Courts have toally ignored this vital factor court feel that their conclusion on the question of bona fide requirement of the landlord deserves to be set aside – Court accordingly set aside the said conclusion of the Courts below and remand the matter back to the Rent Controller to dispose of the landlords application in light of our judgment – Appellant Authority, as well as the High Court proceeded on the footing that even if it were assumed that the building was not old nor dilapidated even then the landlord was entitled to an order of eviction as his honest intention to demolish the building and to reconstruct the same was backed by sufficient funds and the steps which he took by applying for sanction of plan for demolition and reconstruction and therefore, the applications of the landlord will have to go back to the Rent Controller and we accordingly set aside the orders of the High Court and remand the applications to the Rent Controller for disposal according to law in the light of our judgment. – Writ Petition Allowed
Judgment
TULZAPURKAR, J.:- These appeals preferred by tenants by special leave raise a common question whether while considering the bona fide requirement of the building by the landlord for the immediate purpose of demolition and reconstruction under Section 14 (1) (b) of the Tamil Nadu Buildings (Lease and Rent Control) Act 18 of 1960 (as amended by Act 23 of 1973) (hereinafter referred to as the Act) the condition of the building is a wholly irrelevant factor ?
2. Since the facts giving rise to the aforesaid question in all these appeals are almost similar it will suffice if the facts in C. A. Nos. 2087-2088/78 are stated. The appellant Matelware & Co., a proprietary concern has been a tenant of the premises in dispute, namely, a shop on the ground floor of door Number 425 Mint Street, George Town, Madras-1 since 1953. The respondents (landlords) purchased the building from its erstwhile owner some time in 1975 and filed applications against all the tenants thereof including the appellant for evicting them under Section 14 (1) (b) of the Act alleging that the building being very old and dilapidated required immediate demolition and reconstruction and they bona fide required it for the said purpose for their occupation. The respondents further alleged that they were possessed of sufficient means to undertake the demolition and reconstruction and had applied for and obtained from the Municipal Corporation sanctioned plans in that behalf and after duly terminating the tenancies has sought vacant possession. The application was resisted by the appellant on several grounds. Inter alia, the claim of the landlords that the building was bona fide required by the them for the immediate purpose of demolition and reconstruction was seriously disputed; in particular it was emphatically denied that the building was in a dilapidated condition requiring immediate demolition and reconstruction; so also the allegation that the respondents had sufficient means to undertake the demolition and reconstruction. Admittedly the building was over 70 year old but as regards the existing condition thereof the landlords were able to produce merely one Notice (Ex. P-1) received from the Municipal Corporation requiring them to carry out repairs specified therein which clearly showed that the building could not be said to be in any dilapidated condition needing demolition. The Rent Controller (7th Judge Small Causes Court, Madras) on the evidence led before him by the parties came to the conclusion that the respondents had sufficient means to undertake the demolition and reconstruction, had got their plans approved by the Municipal Corporation and had an honest intention to demolish the existing structure and to reconstruct another on that site. On the question whether the building was in a dilapidated condition and required immediate demolition and reconstruction no definite finding one way or the other was given but he took the view that it was well settled that it was not always essential to prove that the building was decrepit before an application for possession could be made under Section 14 (1) (b) of the Act and that the landlord had a right to demolish his property in order to build a new structure on the site with a view to improve his business or get better returns out of investments and that since in the instant case the respondents had purchased the building for the purpose of demolition and reconstruction and had obtained the municipal sanction in that behalf and were found to be possessed of sufficient means, they satisfied the condition of Section 14 (1) (b) of the Act. He, therefore, ordered the eviction of the appellant. In the appeal preferred by the appellant under Section 23 of the Act, the appellate authority (2nd Judge of Small Cause Court, Madras) confirmed the view of the Rent Controller that the respondents had established their bona fide requirement under Section 14 (1) (b) and dismissed the appeal. The appellant preferred a Civi
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