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2023 Supreme(P&H) 2760

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ARUN MONGA, J.
M/s. Kalra Cloth House & Ors. – Revisionists
Versus
Ishar Dass (Deceased) Through LRs & Ors. – Respondents
CM NO. 9768-69-CII of 2022 AND CM NO. 14530-CII of
Decided On : 16-05-2023

Advocates Appeared:
Mr. D.S. Patwalia, Sr. Advocate with Mr. Gaurav Rana, Advocate for the revisionists.
Mr. S.K. Garg Narwana, Sr. Advocate with Mr. Vishal Garg Narwana, Advocate, Mr. Nitin Sachdeva, Advocate, Mr. Japjit Singh Johal, Advocate; For the Respondents

Headnote:(A) East Punjab Urban Rent Restriction Act, 1949 - Section 13 - Eviction petition filed on the grounds of arrears of rent, impairment of property value, unauthorized partition, and bona fide necessity - Landlords established their need for occupancy; tenants contested, citing available alternative premises - The court found landlords' necessity as bona fide and reaffirmed the decision of the Rent Controller. (Paras 4, 6, 8, 9, 12)

(B) Rent Control Proceedings - The tenant cannot dictate terms of occupation based on available alternative premises; landlord's decision regarding requirement must be presumed bona fide unless disproven by tenants. (Paras 7, 10, 15)

Facts of the case:
Petition for setting aside eviction orders based on personal necessity, where rent was contested as being continuously paid since 1961 but landlords claimed arrears and deterioration of property. Issues of material impairment and bona fide necessity were pivotal in the eviction order.

Findings of Court:
The eviction was justified, landlord's need established as bona fide, no misapprehension of evidence or legal principles found.

Issues: (i) Arrears of rent; (ii) Impairment of property’s value; (iii) Unauthorized partition; (iv) Landlord's bona fide necessity for eviction; (v) Non-joinder of necessary parties.

Ratio Decidendi: Landlord's prerogative in determining necessity upheld, dependency on alternate properties does not diminish bona fide claims; courts found the landlords acted upon pressing requirement to vacate.

Result: Revision dismissed, both impugned judgments upheld, tenants ordered to vacate within two months.

Table of Content
1. landlord's need for eviction (Para 2)
2. arguments regarding bona fide necessity (Para 6 , 7)
3. court's acceptance of evidence (Para 8 , 9 , 10 , 11 , 12)
4. judgment upheld, eviction order (Para 13 , 14)

JUDGMENT

Arun Monga, J. (Oral)

CM-9768 & 14530-CII-2022

For the reasons stated in applications, same are allowed. Documents are taken on record, subject to all just exceptions

Main case

Petition herein is for setting aside order dated 04.01.2013 whereby petition under Section 13 of East Punjab Urban Rent Restriction Act, 1949 (hereinafter referred to as 'the Act') for ejectment of revisionists from the portion of shop of Building No.B-XX-554, Ghumar Mandi, Ludhiana, was allowed on the ground of personal necessity and revisionists were directed to vacate the said premises from the date of said order. Further, prayer is made to set aside order dated 30.10.2013, whereby appeal filed by revisionists against impugned order was also dismissed.

2. Succinct facts first, as pleaded in the instant petition.

2.1. Revisionists herein took a portion of the demised premises i.e., property No. B-XX -554, Ghumar Mandi, Ludhiana initially on rent @ Rs.15/- per month as far back in the year 1961. However, neither any lease was entered into nor any rent note signed between the parties. Thereafter, rent for the demised premises was increased to Rs.29/- per month and subsequently to Rs.175/- per month. Initially revisionists herein had taken on rent one of the demised premises i.e., commercial shop but during the course of time i.e., in the year 1973, one additional adjoining shop was also taken on rent.

2.2. A rent note dated 30.08.1984 as well as a formal deed were executed between the parties and the rent was further enhanced to Rs. 600/- per month. The rent deed, which has duly been exhibited in the rent petition as Exhibit A-1 provided that upon payment of agreed rent between the parties, revisionists herein would be entitled to reconstruct the demised shops by making internal changes in the same though at their cost to which the respondent/landlords would have no objection.

2.3. It was also agreed by way of the rent deed that revisionists would also be entitled to raise the height of the roof, carry out necessary repairs, make temporary additions to the premises and also run any type of business as admissible in law.

2.4. In pursuance to the said rent deed, revisionists continued to pay the rent to respondents herein without any encumbrance or hindrance thereto. However, time and again landlord-respondents threatened revisionists to increase the rent, failing which, revisionists were warned of facing the consequences of legal action being initiated against them.

2.5. For not paying heed to the threat of increasing the rent ultimately, led the revisionists to face a petition filed against them under Section 13 of the Act for eviction of revisionists. It was contended therein that respondents herein are the owners of the demised property situated at Ludhiana being property no. B-XX-554, Ghumar Mandi, Ludhiana. A rent note dated 30.08.1984 was executed by respondents in favour of the revisionists and the rent agreed was Rs.600/- P.M. plus house tax @ 15%.

2.6. The eviction was sought primarily on four grounds; (i) allegedly revisionist/tenants had not paid rent since 01.11.1993 and thus should be evicted; (ii) allegedly tenants had materially impaired the value and utility of the property in question; (iii) the tenants had without the permission of the landlord, partitioned the shop; and (iv) landlords require the said property for their bona fide necessity.

2.7. Upon notice, revisionists appeared and contested the eviction and filed their written statement. Various preliminary objections were taken including that the landlords have concocted a story and concealed material facts.

2.8. It was also brought to the notice of Ld. Rent Controller that initially the demised shop was taken on rent in the year 1961 @ Rs.15/- per mont

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