Madras High Court
RAMANUJAM
A.Gopalkrishna Chettiar - Appellant
Versus
T.K.A.Yakub Hussain - Respondent
Decided On : 01/05/1984
RENT CONTROL - EVICTION - BONA FIDE REQUIREMENT - OWN USE - PARTNERSHIP BUSINESS - TAMIL NADU BUILDINGS (RENT CONTROL) ACT, 1960 (TAMIL NADU ACT 18 OF 1960), S.10 (3) (A) (III).
Fact of the Case:
The petitioner, the owner of a non-residential building, filed an application for eviction of the respondent-tenant under S.10 (3) (a) (iii) of the Tamil Nadu Buildings (Rent Control) Act, 1960, on the ground that he required the premises bona fide for his own use. The Rent Controller allowed the application, but the Appellate Authority set aside the order, holding that the requirement of the premises was not bona fide and that the petitioner could not invoke S.10 (3) (a) (iii) as the requirement was not for his own use but for the use of the partnership of which he was a partner.
Finding of the Court:
The High Court held that the requirement of the premises by the petitioner was bona fide and that he was entitled to an order of eviction under S.10 (3) (a) (iii) of the Act. The Court held that the petitioner was carrying on a separate business in partnership with others apart from the family jewellery business and that he was not using any building of his own for that business. The Court also held that the requirement of the premises for the partnership business could be equated with the requirement of the petitioner himself, as the partnership was not a legal entity and the partners were principals and agents, mutually each partner carrying on business on behalf of the others.
Issues: 1. Whether the requirement of the premises by the petitioner was bona fide? 2. Whether the petitioner could invoke S.10 (3) (a) (iii) of the Act when the requirement was not for his own use but for the use of the partnership of which he was a partner?
Ratio Decidendi: 1. The Court held that the requirement of the premises by the petitioner was bona fide, as there was no evidence to suggest that the petitioner's intention was to evict the respondent somehow and that the alleged requirement for the owner's occupation was only a ruse. 2. The Court held that the petitioner could invoke S.10 (3) (a) (iii) of the Act even though the requirement was not for his own use but for the use of the partnership of which he was a partner. The Court relied on the decision of a Division Bench of the Court in V. Danmull v. Syed Ali, AIR 1969 Mad 214, which held that the requirement of the premises for the business carried on by the landlord in partnership with others can be equated with the requirement of the landlords themselves so as to attract Section 10 (3) (a) (iii).
Final Decision: The High Court allowed the revision petition, set aside the order of the Appellate Authority, and restored the order of the Rent Controller.
ORDER :- This revision is directed against the order of the Sub Court, Kumbakonam in C. M. A. No. 5 of 1982, setting aside the order of eviction passed by the Rent Controller against the respondent herein at the instance of the petitioner herein.
2. The petitioner is admittedly the owner of the premises which is occupied by the respondent as a tenant and in respect of which eviction has been sought for by him. The petitioner who is the owner of the premises in question filed an application for eviction of the respondent who is a tenant, under S.10 (3) (a) (iii) of the Tamil Nadu Act 18 of 1960, as amended by Act 23 of 1973, on the ground that he requires the premises bona fide for his own use. The premises in question is a non-residential one and the case of the petitioner-landlord is that he requires the premises bona fide for carrying on his business which is being carried on in a premises not of his own in Kumbakonam town.
3. The said application for eviction was resisted by the respondent-tenant on various grounds of which the main ground is that the requirement of the landlord for his own use is not bona fide. To show that the application for eviction on the ground of owner's occupation is not bona fide, a reference has been made in the counter to certain earlier proceedings and the correspondence that was exchanged between the parties prior to the filing of the application to indicate that the intention of the landlord was to evict the respondent somehow and that the alleged requirement for the owner's occupation is only a ruse.
4. The Rent Controller after analysing the evidence adduced by both parties held that the requirement of the landlord of the premises for his own use is bona fide and therefore the petitioner is entitled to an order of eviction. In that view he directed eviction of the respondent from the premises in question. On appeal by the tenant, the Appellate Authority however has held that the application for eviction filed by the petitioner cannot be taken to be bona fide even if it is taken to have been filed bona fide, since the landlord requires the premises in question for the business of a partnership of which he is a partner, the building cannot be taken to be required for the landlord's own business and therefore the petitioner is not entitled to an order of eviction strictly under S.10 (3) (a) (iii). In this view, the Appellate Authority set aside the order of eviction passed by the Rent Controller. Aggrieved by the order of the Appellate Authority, the petitioner is before this Court.
5. As already stated, the Rent Controller has held that the requirement of the landlord for his own use is bona fide. Of Course, this finding is without reference to the question as to whether the petitioner would require the building for his carrying on a business in partnership with third parties and such a requirement will fall within the scope of S.10 (3) (a) (iii) or not. It is only the Appellate Authority who has held that the application filed by the petitioner under S.10 (3) (a) (iii) cannot be maintained as the requirement of the premises is not for his own use but for the use of the partnership. The Appellate Authority also came to the conclusion that even otherwise the requirement of the landlord is not bona fide. Thus, the two questions that arise for the consideration of this Court are (i) whether the requirements of the petitioner of the premises for his own use is bona fide and (ii) whether, even if the bona fide is established, the petitioner can invoke Section 10 (3) (a) (iii) when the requirement is not for his own use but for the use of the partnership of which he is a partner.
6. As regards the first question it is seen that the Appellate Authority proceeded to hold that the landlord's requirement for his own use is not bona fide, for the oblique purpose of filing such a petition is to get enhanced rent for the building. It is not ill dispute that there has been a written lease deed Ext. A1,
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