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1990 Supreme(SC) 881

SUPREME COURT OF INDIA
T. Kochu Thommen, K.N. Saikia, N.M. Kasliwal, JJ.
P. Orr. and Sons (P) Ltd. - Appellants
Versus
Associated Publishers (Madras) Ltd. - Respondents
Civil Appeal No. 5226 of 1990
Decided On : 5-11-1990

Headnote:

Tamil Naidu Buildings Act, 1960 - section 14 – Appeal against conviction - Proved by evidence - Petitioner company as owner of premises had conceived the idea of putting the said premises to better use consistent with advantages which is enjoyed by the property - Building which now exists on the premises is admittedly more than and is an old structure which is liable to crumble on its own at any time - Present structure apart from being old is not also in a manner which is consistent with the area and general nature of buildings in adjoining locality - Anna in Madras is admittedly one of the prime locations from business point of view and land in this area is scarce - It is therefore not only in the interest of the petitioner but also in general public interest that such a location should be put to best use - Petitioner as owner of the property is entitled to have the property put to best possible use – Held, It must however be emphasized that in order to satisfy test under section 14 condition of building need not have deteriorated to the extent of building being in danger of crumbling down, but the condition must be such as to indicate a requirement for the timely, genuine and direct purpose of demolition and reconstruction - Personal requirement of the landlord or any member of his family for residence or business is not germane to section 14 and to import that concept for the construction of that section as High Court appears to have done, is to project section 10 into section 14 and that is an exercise which has no warrant in the law - Controller in the present case asked himself the wrong question. He did not think that condition of building was relevant - He disregarded the clear admission of the landlord and other evidence as regards the sound condition of the building - Crucial condition for demolition was thus absent - Controller was totally misguided as to the conclusion which he reached. So were appellate authority and the High Court – Court must once again that in the construction of sections such as 10 and 14 of Act Court must be guided by overriding legislative object articulated in the Preamble to the Act, that is "the control of rents of such buildings and the prevention of unreasonable eviction of tenants in State of Tamil Nadu". It is with reference to this Preamble that then was, in Nair and Tamil Nadu and ors. Observed - provisions of Act imposed restrictions on the landlords right under the common law or Transfer of Property Act to evict tenant after termination of his tenancy. The rationale of these restrictions on the landlords rights is the acute shortage of accommodations and the consequent need to give protection to the tenants against unrestricted eviction - Nature the form and the extent of the restrictions to be imposed on the landlords right and the consequent of extent protection to be given to the tenants is a matter of legislative policy and judgment - While condition of the building by itself may not necessarily establish the requirement under clause that condition is not only one of the various circumstances which may be taken into account by the Controller, but it is the essential condition in absence of which it would not be possible for landlord to prove that he has a bonfire requirement which is timely, directly and solely for purpose of demolition of the building - Act does not accept requirement by the landlord as a requirement within the meaning of the provision unless the condition of the building, in the context of the relevant circumstances, requires demolition - These are matters which are to be proved by evidence - Appeal allowed

JUDGMENT :

T. Kochu Thommen, J. - Leave granted.

2. This appeal by a tenant arises from the judgment of the Madras High Court in CRP No. 3064 of 1989 dismissing the appellant's petition challenging the order of the appellate authority in RCA No. 108 of 1989 whereby the order of the eviction made against the appellant by the Rent Controller in RCOP No. 2083 of 1986 was confirmed.

3. The respondent-landlord filed petition for eviction of the appellant-tenant on the ground specified under section 14(1)(b) of the Tamil Ndu Buildings (Lease and Rent Control) Act, 1960 (hereinafter referred to as 'the Act'). The landlord contended :-

    "The petitioner company as the owner of the premises had conceived the idea of putting the said premises to better use consistent with the locational advantages which is enjoyed by the property. The building which now exists on the premises is admittedly more than 100 years old and is an old structure which is liable to crumble on its own at any time. The present structure apart from being old, is not also in a manner which is consistent with the area and the general nature of buildings in the adjoining locality. Anna Salai in Madras is admittedly one of the prime locations from business point of view and land in this area is scarce. It is, therefore, not only in the interest of the petitioner but also in general public interest that such a location should be put to the best use. The petitioner as the owner of the property is entitled to have the property put to the bestpossible use".

4. Denying the allegation regarding the condition of the building, the tenant stated :-

    "..... the allegation in para 4 that the building 'is an old structure which is liable to crumble on its own at any time' is palpably false to the knowledge of the petitioner themselves and is backed up by "Engineering calculations furnished by them earlier. On earlier occasions the petitioner filed HRC No. 2837 of 1978 under Section 4 of Act 18 of 1960 and averred in para 4 .... the building is a pucca structure built up with first class materials. Though the building is an old one there cannot be any doubt about its strength and durability and the accommodation that is available to the Respondent is very spacious and convenient'. Thiru CR Narayana Rao, Architect, Engineer (and consultant) who had been engaged by the Petitioners earlier to inspect the petition property and submit his Valuation report had by his Report dated 6.11.1983 at para 5 stated 'The age of the building is about 106 years as on date of valuation (24.3.1982). Though the age is 106 years the building is structurally sound'. Again the Petitioners have stated in their petition HRC No. 2450 of 1982 filed against the Respondents that 'Though the building is an old one there cannot be any doubt about its strength, structure and durability .....'. The averments of the petitioner made earlier would falsify the present claim and there is no need or urgency to invoke the provisions of Section 14(1)(b) of the Act 18 of 1960 and as amended subsequently and it is a clear abuse of the process of Court and lacks in bonafides".

On the basis of these pleadings and the evidence on record, particularly the admissions made on behalf of the landlord in earlier proceedings in HRC No. 2837 of 1978 and HRC No. 2450 of 1982, the statutory authorities concurrently found that the condition of the building was not unsound, as pleaded by the landlord, but it was, on the other hand, structurally safe and sound. Though a hundred and more years of age, there was no doubt about its strength or durability. However, they held that the condition of the building as such was not decisive in deciding the question whether the building was bonafide required by the landlord in terms of section 14(1)(b) of the Act. Confirming the findings of the authorities and rejecting the objections of the tenant, the High Court held that, though the building was structurally sound, the landlord required it for a legitima

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