High Court of Kerala
K.T. SANKARAN & ANIL K. NARENDRAN, JJ.
Dr. P.T. Santhosh Babu
Versus
Jayabharatham Nursing Home (Pvt) Limited represented by its Managing Director Dr. P.T Rajan Babu
RC Rev. No. 29 of 2013 Q
Decided on: 23-07-2014
Kerala Buildings (Lease and Rent Control) Act, 1965 - Section 2(3) - Eviction - Landlord filed application of - Findings of - Held, Merely for the reason that late Thomas Vaidyan and members of his family alone are the shareholders and Directors of the said Company, it cannot contend that the incorporation of that Company was only a family arrangement among the family members and that the petition schedule rooms and the entire structure wherein it is located belongs to late Thomas Vaidyan - Company is a juristic person and has an existence independent from that of the shareholders and it is the Company which owns its assets and not the shareholders - Shareholders have a further right to participate in the surplus assets of the Company which would be left over after distribution among creditors, on winding up of the said Company
Anil K. Narendran, J.
1. The revision petitioner is the tenant. The respondent-landlord has filed R.C.(OP)No.2/1996 before the Rent Control Court, Punalur, under Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965 (hereinafter referred to as 'the Act') seeking an order to evict the revision petitioner-tenant from the petition schedule building.
2. Going by the averments in the Rent Control Petition, the respondent-landlord is a private Company limited by shares incorporated under the Companies Act, 1956 and is represented by its Managing Director. It is the lawful owner, possessor and landlord of the petition schedule rooms bearing No.PMC-XIII/298 with its furnishings, fittings, fixtures and appurtenances. The revision petitioner-tenant is in occupation of the petition schedule rooms by virtue of Exhibit A1 lease deed executed on 15.1.1993, on a monthly rent of Rs.1,000/-. The tenant intentionally defaulted payment of rent from August, 1993. In spite of repeated demands, the tenant failed to pay the rent due. Therefore, the landlord caused to issue Exhibit A3 lawyer notice on 29.5.1995. Since the tenant failed to clear the rent arrears in respect of the petition schedule rooms, the Rent Control Petition was filed under Section 11(2)(b) of the Act, seeking an order directing the tenant to vacate the said premises and give vacant possession thereof to the landlord.
3. The tenant filed objections to the Rent Control Petition contending that the petition is not maintainable. The allegation that Dr.P.T.Rajan Babu is the owner of the petition schedule rooms is not true and it belongs to a private limited Company by name Jayabharatham Nursing Home Pvt. Ltd. Dr.P.T.Rajan Babu is not the Managing Director of that Company. Thomas Vaidyan, who was the Managing Director of the Company died on 16.8.1991. In the extra-ordinary meeting of the shareholders of the Company convened on 7.11.1991, it was resolved to appoint Shri.P.T.Mohan Babu as the Whole-time Director for managing the affairs of the Company. He colluded with Dr.P.T.Rajan Babu and others to defeat the rights of the shareholders of the Company and also committed default in convening the meeting of the Board of Directors after 12.5.1992. An extra-ordinary meeting of the shareholders convened on 16.1.1995 resolved to appoint Shri.P.T.Chandra Babu as the Managing Director of the Company and Dr.P.T.Rajan Babu, his wife Renny Rajan Babu and Shri.P.T.Mohan Babu were removed from the Directorship of the Company. Shri.P.T.Chandra Babu and his mother Smt.Kunjamma Thomas filed O.S.No.49/1995 before the Sub Court, Kottarakkara, for a declaration that the resolutions adopted in the extra-ordinary general meeting of the shareholders held on 16.1.1995 are valid and also for restraining Dr.P.T.Rajan Babu and others from interfering with the right of Shri.P.T.Chandra Babu to manage the affairs of the Company and the said suit is pending.
4. In paragraph 9 of the objections the tenant contended that, he is in possession of the petition schedule rooms from January, 1993, as permitted by all the Directors of the Company, and he is conducting a dental clinic in those rooms. By a resolution passed in the extra-ordinary general meeting of the shareholders of the Company held on 16.1.1995, it was resolved to permit him to occupy the petition schedule rooms and it was also resolved that the rent will be fixed later. In paragraphs 10 and 11 of the objections the tenant has admitted that, he is a lessee of the Company as regards the petition schedule rooms and he is ready and willing to pay the rent fixed by the Company to the duly appointed Managing Director of the Company. He has not executed any lease deed in favour of Dr.P.T.Rajan Babu and the said Rajan Babu has no right to demand payment of rent for the said rooms. The tenant further contended that the demand for payment of rent at the rate of Rs.1,000/- per month is unsustainable and Dr.P.T.Rajan Babu has no right
M.M.Quasim v. Manohar Lal Sharma and Others (1981 (3) SCC 36)
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