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1996 Supreme(SC) 450

KULDIP SINGH, FAIZAN UDDIN
Gurbachan Singh – Appellant
Versus
Shivalak Rubber Industries – Respondent


Judgement Key Points

What are the rights of a landlord to evict a tenant under Section 13(2)(iii) of the East Punjab Rent Restriction Act, 1949 when the tenant has made structural alterations that materially impair the value or utility of the demised premises? How to determine whether alterations and additions made by a tenant amount to a "material impairment" of the value or utility of the building or rented land from the point of view of the landlord? What is the legal consequence when a tenant converts shops, verandahs, and open land into sheds, stores, and kothries without written consent, thereby changing the shape and complexion of the premises?

Key Points: - The Supreme Court allowed the landlord's appeal, holding that the tenants were liable for eviction because their unauthorized alterations materially impaired the value and utility of the premises under Section 13(2)(iii) of the East Punjab Rent Restriction Act, 1949 (!) (!) (!) . - The Court ruled that "material impairment" is a relative term judged from the landlord's perspective, meaning a considerable decrease in quality or intrinsic worth affecting the fitness of the premises for desirable practical purposes (!) (!) . - The specific acts committed by the tenants, including removing partition walls and doors, merging verandahs with shops, constructing a new roof over open land, and demolishing boundary walls, were found to give the premises a totally new shape and complexion (!) (!) . - The Court clarified that while the construction of a shed over the open land might have been permitted, the permanent nature of the other alterations to the shops and verandahs constituted a material impairment regardless of any assumed consent for the shed (!) . - The High Court and lower appellate authorities committed a patent error of law by dismissing the eviction application without correctly applying the principles regarding material impairment (!) (!) . - The Court directed the eviction of the tenants-respondents and the restoration of actual physical possession to the appellants-landlords (!) . - To balance justice with the tenants' ongoing industry operations, the Court granted a stay on eviction until June 30, 1996, upon furnishing an undertaking (!) . - The Court found that Jamuna Prasad's occupation of a constructed kothri did not amount to subletting as he was employed as a watchman (Chowkidar) (!) (!) .

What are the rights of a landlord to evict a tenant under Section 13(2)(iii) of the East Punjab Rent Restriction Act, 1949 when the tenant has made structural alterations that materially impair the value or utility of the demised premises?

How to determine whether alterations and additions made by a tenant amount to a "material impairment" of the value or utility of the building or rented land from the point of view of the landlord?

What is the legal consequence when a tenant converts shops, verandahs, and open land into sheds, stores, and kothries without written consent, thereby changing the shape and complexion of the premises?


Judgement

FAIZAN UDDIN, J. :- This is landlords appeal directed against the order dated August 7, 1993 passed by the High Court at Punjab and Haryana at Chandigarh dismissing the appellants Civil Revision No. 618 / 1993 in limine against the judgment dated November 17, 1992 passed by the Appellate Authority, Amritsar in Rent Appeal No. 21 dated December 12, 1988 affirming the order dated November 4, 1988 passed by the Rent Controller, Amritsar in Rent Application No. 106/81 dismissing the application of the appellants seeking eviction of the respondents 1, 1-A to I-F from the premises in suit.

2. Karam Singh, late father of the appellants, had purchased the property at G. T. Road, Chhehartta from the Rehabilitation Department. The property consisted of 12 shops with a verandah in front of shops and vacant land at the main gate situated between the shops Nos. 6-S and 7-S.

3. The respondent No. 1, Shivalak Rubber Industries through its proprietor, Dev Raj was inducted as a tenant of Karam Singh in shops Nos. 4-S to 6-S together with 10 ft. vacant land behind the shops with effect from May 1, 1958 on a monthly rent of Rs. 28/-. The respondents Nos. 1-A to 1-F are the partners of respond


















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