SUPREME COURT OF INDIA
Arun Kumar : A.K.Mathur
Sait Nagjee Purushotham & Co.Ltd.
Versus
Vimalabai Prabhulal and others
Case No. : 1113 of 2003
Date of Decision : 4/10/05
Advocates Appeared: C.K. Sree Kumar : Deepa S. Monappan : T.L.V. Iyer : A Raghunath
A. Kerala Buildings (Lease and Rent Control) Act 1965, Section 11(3) - bonafide requirement - The landlords have led evidence to show that one of their sons who had requisite qualification for starting a computer institute wants to establish the same at Calicut and others for extension of their business.- It is always the prerogative of the landlord that if he requires the premises in question for his bonafide use for expansion of business this is no ground to say that the landlords are already having their business at Chennai and Hyderabad therefore, it is not genuine need-Tenant cannot dictate the landlord (paras 4 and 5)
Kerala Buildings (Lease and Rent Control) Act 1965, Section 11(3) - bonafide requirement -Land lord has two sons, one in America-It cannot be said that plea of bonafide requirement was sham- when two sons are there and if they want to expand their business at Calicut then it cannot be said that the need is a sham one-It is not possible for the landlords and their sons to wait till the disposal of the case-They have to do something in life and they cannot wait till the appellant is evicted from the premises in question. -Indian economy is going global and it is not unlikely that prodigal sons can return back to mother land. He can always come back and start his business at Calicut-. On this ground eviction of tenant cannot be denied. (para 5)
B. Kerala Buildings (Lease and Rent Control) Act 1965, Section 11(17) - Transfer of Property Act, 1882 Sections 105, 107 Creation of tenancy - Tenant claiming protection u/s 11(17) -Plea not accepted-Premises on rent with partnership firm since 1918 - Partnership converting into Private Ltd. Company in the year 1948 - Held, new tenancy came into being from in the year 1948.-No protection available to the tenant. [Paras 10, 11, 19 and 20]
JUDGMENT
A.K. MATHUR, J.
This appeal is directed against the order passed by the Division Bench of the High Court of Kerala whereby the Division Bench by its order dated 9.11.2001 has affirmed the finding of the appellate court directing eviction of the tenant under Section 11(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965 (hereinafter referred to as the <169>Act <170>) and denying eviction to the landlord under Sections 11 (4) (i) and 11(4)(ii) of the Act and dismissed both the revision petitions.
2. Brief facts which are necessary for disposal of this appeal are that the building in question was owned by a joint Hindu family of which Nagjee Amarsee was the senior most member. He had a younger brother, Purushotham Amarsee. Nagjee Amarsee had a son, Jayananthan Amarsee. Purushotham Amarsee had three sons, one of whom died at the age of 20. He had two surviving sons namely, Naranjee and Makeklal. There was a partnership firm consisting of the members of the joint family. The building in question was let out to the firm. The firm was the tenant and later on it was converted into a private limited company. In a partition, the major portion of the building was allotted to the group represented by the landlords. Gradually, the interest of the landlords in the company was taken over by the members of the family representing the tenants group. The property scheduled to the rent control petition was a major portion of the building which was admittedly set apart to the share of the branch of the family represented by the landlords. The landlords filed a suit for eviction on the ground that the respondent Nos.5,6 & 9 (herein) had completed their education and were sitting idle and they wanted to start business of their own in the scheduled building and they needed the scheduled building for their own occupation at Calicut. Therefore, they claimed eviction of the tenant under Section 11(3) of the Act. They also pleaded the ground of sub-letting to a tailor who was impleaded as a party in the rent control proceedings. It was pleaded that sub-letting was unauthorized and without the consent of the landlords. Hence, the landlords were entitled for eviction under Section 11 (4) (i) of the Act. They also alleged material alteration in building and sought a decree under Section 11 (4) (ii) of the Act. The tenant resisted the eviction petition and pleaded that he was perpetual lessee and could not be evicted by the landlords. He also denied the bona fide need of plaintiffs and denied alteration in the premises in question. It was also pleaded that the tenancy has commenced prior to 1940. As such, the tenant could not be evicted on the ground of bona fide need by virtue of Section 11(17) of the Act. The tenant contested that the landlords were not entitled to an order of eviction. The parties led evidence before the Rent Controller. The Rent Control Court held that the landlords were not entitled to an order of eviction either under Section 11(3) of the Act or under Section 11(4)(i) of the Act. The landlords preferred an appeal before the appellate authority. The appellate authority on re-appraisal of the relevant evidence came to the conclusion that the landlords had made out a claim for eviction under Section 11(3) of the Act on the ground of bona fide need for their own occupation but they could not substantiate their claim for eviction under Sections 11(4) (i) & 11(4) (ii) of the Act. Thus, the appellate authority partly allowed the appeal filed by the landlords and granted a decree of eviction on the ground of bona fide need under Section 11(3) of the Act while the plea of sub-letting and material change in premises under Sections 11(4) (i) & 11(4) (ii) of the Act was declined. Both the landlords and the tenant filed revision petitions i.e. the landlords revision petition was for decree of eviction on the ground of sub-letting and alteration in premises under Sections 11(4) (i) & 11(4) (ii) of the Act and the tenant filed the r
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