IMPORTANT POINT
Landlord’s intention to put the building to better use by way of earning better income consistent with the developments in the locality, cannot be held to be not a bona fide intention, unless of course there is some clear material negativing the bona fides of such an intention.

Headnote:West Bengal Premises Tenancy Act, 1956 — Sections 13(1)(f), 13(1)(ff) and 18A — Eviction of tenants on ground of rebuilding or reconstruction — Obligation of landlord to put tenants back in possession — Bonafides of the claim — Building 100 years old, a single storeyed building, situated in a mixed locality — There is no access by way of a stair case to go to the roof of the building — Actual structure occupies the entire land leaving no further option for addition to the existing structure — Landlord pleads that he requires the building for putting up a four storeyed building after demolishing the existing structure — He intends to give the existing seven tenants corresponding areas in the ground floor but reduced to 30% of the area currently in their occupation in view of building restrictions — Whether claim for eviction on ground of rebuilding is bonafide — (Yes) — Landlord has made out the ground for eviction under Sec. 13(1)(f) of the Act — However, landlord directed to slightly alter his plan so that tenants could be provided with 50% of the areas now occupied by them.
       Held : After all, the building is 100 years old. It is situated in a growing city like Calcutta and it is fetching a meagre income for the landlord by way of rents. Surely, an intention to put the building to better use by way of earning better income consistent with the developments in the locality, cannot be held to be not a bona fide intention, unless of course there is some clear material negativing the bona fides of such an intention. We do not see anything in the present case which would militate against the bona fides of that intention of the landlord. Coupled with this, is the fact that the landlord wants to occupy the upstair portions of the building after reconstruction. Clearly, he cannot do so now, by building over the existing structure, in view of its location and in view of the absence of a staircase to go upstairs and the age of the structure. It is no doubt true that a shop room is in possession of the landlord, the same having been vacated by a tenant and the claim for eviction relates to the other seven rooms in the possession of tenants. Even if a staircase is provided in that portion in the possession of the landlord, the question still remains whether he could be permitted to put up one or more floors in the building as proposed by him in view of the relevant Building Rules and their possible violation. Thus, viewed from these angles, which are relevant considerations as indicated by the decisions referred to by us earlier, it cannot be said that the need put forward by the landlord is not a bona fide one. We are therefore of the view that the High Court and the trial court were not justified in finding that the bona fides of the claim under Section 13(1)(f) of the Act for eviction of the tenants is not made out by the landlord. (Para 12)
       The landlord in his evidence has held out that he has the means to undertake the reconstruction. Before the Appellate Court, he has also produced some evidence in that regard. These are days when finances for such construction activity are more easily available as judicially noticed by one of the decisions. We see no justification for doubting the financial capacity of the landlord to rebuild. The landlord has shown that he has got the validity of the approved plan for rebuilding extended. The High Court, in our view, was not justified in not accepting the evidence produced by the landlord in appeal. We are satisfied that the landlord has made out the ground for eviction under Section 13(1)(f) of the Act on the facts and in the circumstances of the case. We reverse the finding of the High Court in that regard. (Para 13)
       Under Section 18A of the Act, the landlord in a case of eviction under Section 13(1)(f) of the Act has the obligation to put the tenants back in possession of rooms in the reconstructed building, that is an obligation attached to any decree for eviction that may be passed under Section 13(1)(f) of the Act. Certainly, any attempt to defeat that obligation under Section 18A of the Act cannot be encouraged and should be put down with an iron hand. In other words, the landlord will be pinned down to his obligations under Section 18A of the Act and would not be allowed to extricate himself from it or delay the performance of his obligations by resort to devious means. But, that is different from saying that because of the right available to the tenant under Section 18A of the Act, an order for eviction under Section 13(1)(f) of the Act cannot be passed unless the building is about to fall down over the head of the occupant. (Para 14)
       It is the further case of the landlord that the landlord is in a position to provide the tenants, seven in number, only with areas roughly corresponding to 30% of the areas occupied by them. The landlord has offered that the area in its possession on the ground floor, could also be made available to the tenants. Even then, the area available to the tenants would fall short of the areas that are now in their possession or that may normally be allotted to them. When the new construction to be put up consists only of a plinth area of about 55% of the existing construction, it will be reasonable for the tenants to be expected to be put back in possession of at least 50% of the areas now in their occupation. We think that it will be appropriate to direct the landlord to slightly alter his plan so that after accommodating the tenant running a Pan Shop in a small area, the rest of the tenants could be provided with 50% of the areas now occupied by them, by accommodating, if need be, one or two or three of them (tenants holding the larger extents) on the first floor. For this, the landlord will seek a slightly modified plan from the concerned Authority which will grant it expeditiously in the interests of the tenants and will ensure that all the Building Laws are respected by the landlord while constructing. The modified plan will be produced by the landlord before the trial court so as to enable that court to pass formal decrees for eviction and consequential orders for the tenants being put back in possession in the reconstructed building as directed above in terms of Section 18A of the Act. (Para 15)

JUDGMENT

P.K. Balasubramanyan J. — Leave granted.

2. Seven suits were filed by the landlord of a line building consisting of eight rooms, for eviction of the tenants on the ground of rebuilding under Section 13(1)(f) of the West Bengal Premises Tenancy Act, 1956 (hereinafter referred to as, “the Act”). The relevant pleading in the plaint was not happy and the claim for rebuilding was mixed up with the requirement for own occupation, a ground covered by Section 13(1)(ff) of the Act. At the stage of trial or even before, the landlord gave up the claim under Section 13(1)(ff) of the Act of reasonably requiring the suit premises for its own use and purpose. It may be mentioned that the landlord is said to be a partnership firm.

3. In support of the claim for eviction under Section 13(1)(f) of the Act, it was pleaded that the building was 100 years old; that it was situate in a mixed locality but mainly residential; that even at the time of the purchase of the building, the intention of the landlord was to reconstruct the building and occupy a portion of it, being the upstair portion of the building; that the claim for eviction on the ground of rebuilding was bona fide; and that the landlord was entitled to a decree for eviction considering the entire circumstances available. It was also disclosed that one of the rooms in the building was in the possession of the landlord, the same having been surrendered by a tenant earlier and that after reconstruction, the landlord would be in a position to provide separate rooms to the seven tenants remaining, but that the area to be given to each tenant, would be only 30% of what they now held in the building. It was also brought out that the entire land was occupied by the building and there was not even a staircase to go to the roof of the building and the only way to reach the roof was by the use of a ladder. It was further brought out that as per the rules existing, a car parking facility in the basement has to be provided and construction could be only in about 55% of the area presently occupied by the 100 years old building. In evidence, one of the partners examined on behalf of the landlord stated that the landlord was willing to give 30% of the area presently occupied by each tenant in the reconstructed building and the landlord proposed to occupy the first, second and third floors intended to be put up, leaving the ground floor for occupation by the tenants.

4. The tenants resisted the separate suits. They questioned the bona fides of the claim made by the landlord. They pointed out that the landlord having given up the claim for eviction on the ground of own occupation had become disentitled to any relief at all in the suits since the need for rebuilding was interlinked with the need for own occupation projected in the plaint. While being examined, the landlord was asked questions about the financial capacity to rebuild and even questions on the title of the firm as set up in the plaint. In his evidence, one of the tenants examined, stated that the building did not require reconstruction and that it was not possible to carry on the business that is being carried on in the building in only 30% of the area presently occupied by that tenant. It was brought out that out of the seven tenants, one was running a Pan Shop and the other six were running watch sales cum repair shops.

5. The suits were jointly tried and disposed of by a common judgment by the trial court. The trial court held that the plaintiff firm was the owner of the building and there subsisted the relationship of landlord and tenant between the firm and the tenants. It further held that the premises is a one storeyed building having no vacant space on the side, back or front and the building covered the entire land. The building had no staircase of its own for going to the roof and one had to put up a ladder to climb on to the roof. The suit building was situated in a predominantly commercial area. It was evident that t

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2007 Supreme(SC) 469

IMPORTANT POINTLandlord’s intention to put the building to better use by way of earning better income consistent with the developments in the locality, cannot be held to be not a bona fide intention, unless of course there is some clear material negativing the bona fides of such an intention.

Cases Referred (4)

IMPORTANT POINT
Landlord’s intention to put the building to better use by way of earning better income consistent with the developments in the locality, cannot be held to be not a bona fide intention, unless of course there is some clear material negativing the bona fides of such an intention.