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1978 Supreme(Mad) 61

Madras High Court
NAINAR SUNDARAM
Pappu Ammal - Appellant
Versus
Lab Chemicals - Respondent
Decided On : 01/27/1978

Advocates:
G.V. Baluswami and Asif Ali, for Petitioner; S.V. Kumaraswami, A.L. Natarajan and M.A. Srinivasan, for Respondents.

The bona fides of the landlord under S. 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, should be assessed on the basis of the principles laid down by the court.

Headnote:

RENT CONTROL - BONA FIDES - REQUIREMENT OF PREMISES FOR IMMEDIATE PURPOSE OF DEMOLITION AND RECONSTRUCTION - ASSESSMENT OF BONA FIDES - PRINCIPLES - TAMIL NADU BUILDINGS (LEASE AND RENT CONTROL) ACT, 1960 (TAMIL NADU ACT 18 OF 1960), S. 14(1)(B).

Fact of the Case:

Landlady filed petitions under S. 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, seeking eviction of tenants for the purpose of demolishing the building and constructing a new one. The Rent Controller and the Appellate Authority dismissed the petitions, finding that the landlady lacked bona fides. The landlady challenged the orders in revision.

Finding of the Court:

The court held that the courts below had misconstrued the principles to be applied in assessing the bona fides of the landlady under S. 14(1)(b) of the Act. The court found that the landlady had a genuine requirement for the premises for the purpose of demolition and reconstruction, and that the factors considered by the courts below to negative her bona fides were not relevant.

Issues: Whether the courts below correctly applied the principles of bona fides under S. 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.

Ratio Decidendi: The court held that the bona fides of the landlord under S. 14(1)(b) of the Act should be assessed on the basis of the following principles: * The landlord must satisfy the court that he reasonably and bona fide requires the premises for the immediate purpose of demolishing it and the demolition is for the purpose of erecting a new building in the place of the old one. * The desire of the landlord to put the property to a more profitable use after demolition and reconstruction is also a factor that may be taken into account in favour of the landlord. * It is not necessary that the landlord should go further and establish that the condition of the building is such that it requires immediate demolition. * The requirement under S. 14(1)(b) is that of the landlord and cannot have any reference to the building.

Final Decision: The court allowed the revisions, set aside the orders of the courts below, and allowed the landlady's petitions for eviction. The tenants were granted eleven months' time to vacate the premises.

Judgement

ORDER :- In these revisions, the landlady is the petitioner. The matters arise out of rent control petitions filed by the landlady under S. 14 (1) (b) of the Tamil Nadu Buildings (Lease and Rent Control) Act (hereinafter referred to as the Act). H. R. C. No. 2270 of 1971 was filed by the landlady against Messrs. Lab Chemicals, the respondent in C. R. P. No. 430 of 1975. H.R. C. No. 2271 of 1971 was filed by the landlady against P. S. Palani Chetti respondent in C. R. P. No. 440 of 1975. Both were entertained by the Eighth Judge, Court of Small Causes (Rent Controller), Madras. According to the petitioner she required the premises in the occupation of the respective tenants for the immediate purpose of demolishing the same and such demolition is to be made for the purpose of erecting a new building on the site of the building sought to be demolished. The case of the petitioner as could be gathered from the petitions filed before the Rent Controller, was that her husband was doing business in Ceylon; for some years there have been threats against the Indian merchants in that country to leave; her husband was able to prolong his stay there till recently when he, had to migrate to India once for all in May 1971; her husband, after coming to India, has made all preparations to start a business of his own at Madras for the benefit of the family, but for want of a business place for carrying on the business exclusively, the family is handicapped; the petition building is the only non-residential building belonging to them in Madras, that she has also filed separate petitions for eviction of the tenants under S. 10 (3) (a) (iii) of the Act; the shops in the occupation of the tenants are old and narrow and require to be reconstructed. The landlady gave the requisite undertaking to commence the work of demolition of the building, not later than one month and to complete the same before the expiry of the three months from the date possession is recovered. The respondents-tenants filed their counters. The main contentions, as could be gathered from their counters, are that the landlady has been demanding enhanced rent; she has no means to demolish and reconstruct the building; the building is not old and does not require any demolition; that the landlady has filed another petition for their eviction on the ground of requirement of the building for business purposes and she is not motivated by bona fides in filing the petitions for eviction. The Rent Controller who heard the petitions came to the conclusion that the landlady is not motivated by bona fides and in that view, dismissed her petitions on 30-7-1973. Aggrieved thereby the landlady filed H.R.A. No. 534 of 1973 against H. R. C. No. 2270 of 1971 and H. R. A. No. 538 of 1973 against H. R. C. No. 2271 of 1971. They were heard and disposed of by the Appellate Authority (Third Judge, Court of Small Causes, Madras) by a common judgment dated 7-10-1974. Appellate Authority concurred with the Bent Controller that the landlady lacked bona fides and dismissed the appeals, preferred by the landlady. The present revisions are directed against the order of the Appellate authority.

2. The main question that comes up for consideration in both these revisions is as to whether the courts below applied the correct principles with reference to the assessment of bona fides under S. 14(1) (b) of the Act. The question of bona fides has passed through many facets of consideration by judicial precedents. It will be pertinent to refer to some of them so as to deduce the correct principle that should be applied in consideration of this question, viz. ' bona fides' of the landlord for seeking eviction under S. 14 (1) (b) of the Act. In its wisdom, the Legislature was not content to lay down that the landlord can recover possession from the tenant on the simple ground that he required the premises for the immediate purpose of demolishing it and putting a new building on the site. The expression ' bona

























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