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2018 Supreme(Ker) 752

IN THE HIGH COURT OF KERALA AT ERNAKULAM
K. HARILAL, ANNIE JOHN, JJ.
Chandroth Vennalakath Ibrahim, S/o. Ummer Haji and Ors - Appellant
Versus
M/s. "Twinkle" M.G.Road, Ernakulam - Respondent
RCRev.No. 228 of 2015
Decided on : 14-08-2018

Advocates:
Advocate Appeared:
For the Appellant : Sri.K.Jayakumar (Sr.) Sri.N.C.Joseph Advs.
For the Respondent: Sri.P.Martin Jose Advs. Sri.P.Prijith Sri.S.Sreekumar (Sr.) Sri.Thomas P.Kuruvilla

Headnote:The Kerala Buildings(Lease and Rent Control) Act, 1965- Section 11(9), Sections 11(3) and 11(4)(iii)

       Facts of the case

       Bona fide need of the petition schedule building for their own occupation, for starting a hotel business and they have experience and means to start the hotel business- They have no other buildings of their own in their possession to start the said business and several other buildings are available to the respondent in the same locality, to shift his business from the petition schedule building-Entitled to get an order of eviction under Section 11(4)(iii) also-The petitioners prayed for an order of eviction under Section 11(3) and 11(4)(iii) of the Act.

       Reasons for the decision:

       An extension clause in a lease deed, permitting extension of lease for a term exceeding one year at the option of the lessee or lessor or by mutual consent of both lessor and lessee, without registration of a new lease deed, is invalid and unenforceable under law- The self working clause providing Extention for a term exceeding one year would become redundant, unless a registered fresh lease deed is executed to that effect.

       Finding of the Court:

       An automatic extension of lease for a further period of 15 years at the option of the respondent alone, is illegal and perverse, warranting interference of this Court, invoking the revisional jurisdiction under Section 20 of the Act -The Rent Control Petition is maintainable.

       Result: Allowed

ORDER :

K. HARILAL, J.

1. The revision petitioners are the landlords, and the respondent is the tenant in R.C.P. No.9/2012 on the files of the Rent Control Court, Ernakulam. The revision petitioners/landlords filed the aforesaid R.C.P. against the respondent under Sections 11(3) and 11(4)(iii) of the Kerala Buildings(Lease and Rent Control) Act, 1965('the Act' for short) seeking an order of eviction. After considering the objection raised by the respondent/tenant, the Rent Control Court found that the Rent Control Petition is not maintainable, as it is barred by Section 11(9) of the Act. Though they had preferred Rent Control Appeal No. 11 of 2014 before the Rent Control Appellate Authority, Ernakulam, the Appellate Authority also concurred with the findings of the Rent Control Court and dismissed the Appeal. Thus, the legality and propriety of the concurrent findings of the courts below, that the Rent Control Petition is not maintainable as it is barred by Section 11(9) of the Act, are challenged in this Revision Petition.

2. The parties are referred to as in the Rent Control Petition. According to the petitioners, they are in bona fide need of the petition schedule building for their own occupation, for starting a hotel business and they have experience and means to start the hotel business. They have no other buildings of their own in their possession to start the said business and several other buildings are available to the respondent in the same locality, to shift his business from the petition schedule building. On the above premises, the petitioners prayed for an order of eviction, under Section 11(3) of the Act. Further, they contended that the respondent has subsequently acquired possession of two other buildings in the same locality and thereby, they are entitled to get an order of eviction under Section 11(4)(iii) also. Thus, the petitioners prayed for an order of eviction under Section 11(3) and 11(4)(iii) of the Act.

3. The respondent resisted the claim for eviction, under Sections 11(3) and 11(4)(iii) of the Act, mainly contending that the Rent Control Petition itself is not maintainable, as it is barred by Section 11(9) of the Act. According to him, the original lease was for a period of five years as per Ext.B1 agreement, dated 1.02.1990. On the expiry of the said lease deed, they have executed another lease agreement on 24.12.1994 for a period of 15 years, commencing from 01.02.1994. In that lease agreement, there was a condition that for every five years the rent shall be enhanced by 25%. Moreover, clause (5) of the agreement stipulates that after the expiry of the original lease period, the period of lease shall stand extended for a further period of 15 years on payment of 25% increase in rent, for every five years. The original lease period of 15 years expired on 31.01.2010. At that time, the rent payable was Rs.14,500/-. From 01.02.2010 onwards, the lease period would stand automatically extended for another 15 years by the payment of enhanced rent and hence the lease period would expire only on 31.01.2025. From 01.02.2010 onwards, the respondent has been paying the enhanced rent of 25%, which comes to Rs.18,750/-and the petitioners have been receiving the enhanced rent, knowing fully that the lease stands extended for another 15 years from 31.01.2010. In short, according to the respondent, the period of lease would expire only on 31.01.2025. Therefore, the present Rent Control Petition filed in the year 2012 is barred by Section 11(9) of the Act. As regards the claim for eviction under Section 11(3), it is contended that the need projected in the petition is not bona fide and it is a ruse for eviction only. Hence, he is not liable to be evicted under Section 11(3) of the Act. As regards the claim for eviction under Section 11(4)(iii) of the Act, it is contended that the averment that he has subsequently acquired other buildings in his possession is not correct. The said buildings are owned by a partnership f





















































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