Important points
1. The fixing of racks inside the premises let out for business premises, even by drilling holes in the walls or beams cannot be said to be acts which are themselves acts of waste as are likely to impair materially the value and utility of the building.
2. Merely because a tenant, who has taken a building for the purpose of running a trade, alters the commodity in which he was trading when he took the building on lease or trades in other commodities also, he could not be held to be using the premises for a purpose other than the purpose for which it was let.

Headnote:Tamil Nadu Builings (Lease and Rent Control) Act, 1960—Section 10(2)(ii)(b), 10(2)(iii)—Eviction petition —User of premises by tenant for a purpose other than that for which it was leased—Acts of waste as are likely to impair materially, the value or utility of the building—Landlord claimed eviction of tenant on these two grounds—Letting was for purpose of a shoe trade or trade in leather goods by the tenant—While carrying on his business, tenant had used a part of premises for carrying on trade in readymade garments—Tenant had also fixed name boards outside and drilled holes in the walls for fixing racks for purpose of his trade and had taken an independent three phase electric connection—Eviction was ordered both u/s 11(2)(ii)(b) and u/s 11(2)(iii) of the Act—Whether there was change of user of building in this case attracting Section 10(2)(ii)(b) of the Act—(No)—Whether acts of tenant amount to such acts of waste as are likely to impair materially the value and utility of the building—(No)—Appellate Authority was justified in denying an order of eviction to the landlord on this ground.
       Held : While construing a provision of law imposing a liability, for eviction, like Section 10(2)(ii)(b) of the Act, one must see whether there has been such a change of user of the premises as to make it alien to the purpose for which the building was let and deny eviction when the basic activity remains the same and there is only a variation in the manner or mode of carrying on of that activity. Therefore, the interpretation placed on Section 10(2)(ii)(b) of the Act by the High Court in the decision under appeal and in some other decisions of that Court referred to in the orders of the Rent Controller and the High Court, has to be held to be not warranted or justified. The order of eviction passed by the High Court under Section 10(2)(ii)(b) of the Act has, therefore, to be reversed. (Para 8)
       The tenant admitted the putting up of sign-boards and the fixing up of racks but he denied that he had caused any damage. Whatever he had done was with the consent of the landlord and the claim put forward by the landlord was only an attempt to gain the sympathy of the Court. The Engineer, P.W. 2 noted that new racks were fixed by making holes in floor walls and also in the beams. Two new massive sign boards were fixed in the front and side. Holes were made in the parapet wall of the first floor and angle irons supporting the sign boards were fixed. The parapet wall was only 2" thick and it could not take the weight of the huge sign boards and the parapet wall may collapse at any time. New electric connection has been given by making holes in the foundation and the wall in front and a new meter board had been fixed. This report of P.W. 2 was not sought to be corroborated by any other material to show that there was any danger because of the taking of a new electric connection or by the increase in load. It is true that for the purpose of his trade, the tenant fixed new racks by making holes in the floor, the walls and in the beams. But, in the absence of any other material, it cannot be said to be the commission of acts of waste as are likely to impair materially the value and utility of the building. We must say that there is hardly any evidence on the side of the landlord to show that there was material impairment, either in the value or the utility of the building by the acts of the tenant. The mere fixing of sign-boards outside the shop by taking support from the parapet wall, cannot be considered to be an act of waste which is likely to impair materially the value or utility of the building. The report of the Engineer, P.W.2, merely asserts that the parapet wall will collapse at any time. There is no supporting evidence in respect of that assertion. Ex. B1-letter of the landlord giving permission to the tenant to fix boards, cannot also be ignored in this context. Moreover, when a trade is carried on in a premises, that too in an important locality in a city, it is obvious that the tenant would have to fix sign-boards outside, to attract customers. These are days of fierce competition and unless the premises is made attractive by lighting and other means, a trader would not be in a position to attract customers or survive in the trade. Therefore, the acts of the tenant established, are merely acts which are consistent with the needs of the tenant who has taken the premises on rent for the purpose of a trade in leather goods and shoes and in furtherance of the prospects of that trade. The fixing of racks inside the premises even by drilling holes in the walls or beams cannot be said to be acts which are themselves acts of waste as are likely to impair materially the value and utility of the building. Broadly, a structural alteration however slight, should be involved to attract Section 10(2)(iii) of the Act. In fact, we see hardly any pleading or evidence in this case which would justify a conclusion that the acts of the tenant amount to such acts of waste as are likely to impair materially the value and utility of the building. (Para 9)
       There is hardly any material in the present case on the basis of which the Court could come to the conclusion that the act of the tenant here has amounted to commission of such acts of waste as are likely to impair materially the value and utility of the building. The Rent Controller and the High Court have not properly applied their minds to the relevant aspects in the context of the statute and have acted without jurisdiction in passing an order of eviction under Section 10(2)(iii) of the Act. The Appellate Authority was justified in denying an order of eviction to the landlord on this ground. (Para 9)

Judgment

P.K. Balasubramanyan, J.—Leave granted.

2. A room in a building in Thousand Lights, Mount Road Madras, is the subject matter of this proceeding. The respondent-landlord leased that room, a ‘building’ as defined in the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 to the appellant. According to the landlord, the letting was for the purpose of a shoe trade or trade in leather goods by the tenant. There was a prior proceeding in which there was a compromise and the building was re-let to the tenant after it was re-modeled or re-constructed. While carrying on his business, the tenant had used a part of the premises for carrying on a trade in readymade garments and that amounted to a user of the building by the tenant for a purpose other than that for which it was leased, within the meaning of Section 10 (2) (ii) (b) of the Act. The tenant had also fixed name-boards outside and drilled two holes in the walls for fixing racks for the purpose of his trade and had taken an independent three phase electric connection and for that purpose he had made holes on the floor and on the wall; that these acts of the tenant amount to commission or causing the commission of such acts of waste as are likely to impair materially, the value or utility of the building within the meaning of Section 10(2)(iii) of the Act. Thus, the landlord claimed eviction of the tenant, the appellant, on these two grounds.

3. The appellant resisted the claim. He contended that the original letting was not for the purpose of trade in shoes or leather goods alone. He was still carrying on the business of selling shoes, but had expanded his trade by including the trade in readymade garments. There was no user of the room by him for a purpose other than the purpose for which it was let. He was not liable to be evicted on that ground. The fixing of the sign-boards was permitted by the landlord and fixing of the boards or the fixing of the racks for the purpose of his trade, did not amount to acts of waste as are likely to impair materially the value and utility of the building. He had to take the electric connection, a three phase one, for the purpose of his trade and that act again did not result in any damage to the building or amount to waste and hence he was not liable to be evicted on that ground as well. He thus prayed for dismissal of the petition for eviction.

4. In addition to marking Ex. A1, to A4, the landlord examined himself as P.W.1 and examined the Engineer who prepared Ex. A4 report as P.W.2. The tenant marked Ex. B1- letter and Ex.B2-report and examined himself as R.W.1 and examined the engineer who prepared Ex. B2- report as R.W.2. According to him, Exhibit B1 indicated that there was no restriction on his user of the premises. The Rent Controller held that the user of the building also for the purpose of carrying on a trade in readymade garments, amounted to using the building for a purpose other than that for which the building was let within the meaning of Section 10 (2) (ii) (b) of the Act and an order for eviction was liable to be passed thereunder. He also held that the fixing of the sign-boards, the fixing of the racks and the taking of an independent three phase electric connection by drilling holes for that purpose, amounted to commission of waste in the building attracting Section 10 (2) (iii) of the Act. Thus, eviction was ordered both under Section 11(2)(ii)(b) and under Section 11 (2) (iii) of the Act. The tenant appealed. The Appellate Authority found that the user by the tenant of the building also for the purpose of a retail trade in readymade garments, did not amount to user of the building for a purpose other than that for which the building was let and consequently, held that the landlord was not entitled to an order for eviction under Section 10(2)(ii)(b) of the Act. The Appellate Authority further held that the fixing of the sign-boards, the fixing of the racks and the taking of an independent three phase connection

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2005 Supreme(SC) 1190

Cases Referred (15)