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2023 Supreme(Sikk) 5

HIGH COURT OF SIKKIM
Meenakshi Madan Rai, J.
M/s. Himal Match Co. Pvt. Ltd. & Anr. - Appellants
Versus
Smt. Kiran Agarwal - Respondent
RFA No.03 of 2022
Decided On : 04-05-2023

Advocates appeared:
Mr. Passang Tshering Bhutia, Advocate for the Appellants; Mr. Sajal Sharma and Ms. Shreya Sharma, Advocates for the Respondent.

A landlord may evict a tenant for personal occupation, if the premises are in disrepair and rent remains unpaid for four months, as per relevant eviction laws.

Headnote:(A) Limitation Act, 1963 - Article 52 - Eviction and recovery of rent - The Respondent sought eviction of Appellants for illegal occupation despite notice, claiming premises for personal use and due to dilapidated condition - Appellants contested, citing limitation for rent recovery - Trial Court found Appellants defaulted in rent payment and the premises required repairs. (Paras 1-14)

(B) Eviction Law - Personal Requirement - Respondent established that required premises for personal occupation and condemned dilapidation, fulfilling criteria under Notification for Eviction. (Paras 6-10)

(C) Limitation Defence - Court ruled that rent claims were barred prior to September 2015 due to limitation, but subsequent arrears were valid and acknowledged. (Paras 4, 8)

Facts of the case:
The Respondent sought eviction of Appellants from a dilapidated property, claiming negligence in rent payments and personal necessity for occupancy. The site was legally sold to the Respondent, establishing ownership. (Paras 1, 4)

Findings of Court:
The Court upheld the Trial Court's judgment, confirming the Appellants were liable for unpaid rent since September 2015 and warranted eviction due to personal requirement and building condition. (Paras 5, 10, 11)

Issues: The key issues included whether the Appellants defaulted in rent, whether Respondent's requirement for the premises was genuine, and if the claims for mesne profits and arrears were barred by limitation. (Paras 3, 6)

Ratio Decidendi: The court confirmed that under the 1949 Notification, landlords can evict tenants for personal use, overhauling if premises are unfit, and when rents remain unpaid for four months - all conditions satisfied in this case. (Paras 6-10)

Result: Appeal dismissed; Appellants ordered to vacate premises and pay arrears of rent from September 2015.

Table of Content
1. eviction suit based on arrears of rent and personal requirement (Para 1 , 2 , 4)
2. arguments regarding limitation and lack of acknowledgment of current rent (Para 3 , 5 , 9)
3. court findings on necessity for eviction (Para 6 , 7 , 8)
4. final ruling on eviction and rent arrears (Para 10 , 11)

JUDGMENT

Meenakshi Madan Rai, J. - The Respondent/Plaintiff filed an Eviction Suit before the Court of the District Judge, East Sikkim, at Gangtok, seeking eviction of the Appellants/Defendants from the suit premises, recovery of arrears in rent and mesne profits. The grounds enumerated for such eviction were illegal occupation of the suit premises by the Appellants despite due receipt of Notice of Eviction. That, the premises were required for the Respondent's personal use and occupation and that the suit premises being in a dilapidated condition were required to be overhauled.

2. The facts relevant for the present purposes are that the suit premises comprising of a four storied RCC building, measuring 30 ft. x 92 ft., situated at Rangpo Bazar, was rented out by M/s. Balchand Udairam, the owner, to the Appellant, M/s. Himal Match Co. Pvt. Ltd., at a monthly rent of Rs. 250/- (Rupees two hundred and fifty) only. The year of tenancy has not been mentioned in the plaint. On 14-08-1991, M/s. Balchand Udairam sold the suit property to the Respondent. Upon such sale, the Respondent informed the Appellant Company about it and requested that monthly rent be deposited to her. The Appellant Company failed to comply with the request.

(i) The suit premises being in a dilapidated condition the Assistant Town Planner II, Urban Development and Housing Department (UD&HD), sent a Notice dated 01-10-2008 to the Respondent requiring her to ensure structural stability with retrofitting works, but the required repairs could not be carried out as the premises were not vacated by the Appellants. An Eviction Notice dated 30-12-2008 was served upon the Appellants by the Respondent, which was also not complied with and the Appellants continue to remain in unlawful occupation of the suit premises from 01-02-2009. That, on this ground, the Respondent was entitled to mesne profit calculated @ Rs. 200/- (Rupees two hundred) only, per day, on and from 01-02-2009, till the date of obtaining vacant possession of the suit premises. The further case of the Respondent is that during the pendency of the suit (Eviction Suit No.01 of 2010), permission was granted to withdraw it with liberty to file afresh. On such liberty, the Respondent on 29-01-2018 sent a fresh Notice for Eviction to the Appellant, through Registered AD, requesting the Appellant to vacate the suit premises by 01-032018. The Appellants again failed to oblige. That, the Appellants are defaulters in payment of rent from 14-08-1991, when the suit premises was registered in the name of the Respondent. The Respondent claims arrears of rent from 14-08-1991 till 01-02-2009 and mesne profits after 01-02-2009. Accordingly, the Respondent sought for a decree for recovery of possession of the suit premises, recovery of arrears of rent of Rs. 54,000/- (Rupees fifty four thousand) only, decree declaring that the Respondent is entitled to mesne profits from 01-02-2009 till the date of filing of the suit.

(ii) The Appellants contested the claims and averred that the suit is barred by limitation under the provision of Article 52 of the Schedule of the LIMITATION ACT , 1963, which stipulates that the period of limitation for recovery of arrears in rent is three years from the date when the arrears become due. Admittedly, the rent became due from 01-09-1991 as per the Respondent. It was claimed that the Appellants have been regularly paying the rent to M/s. Balchand Udairam, till the month of January, 2009, after which M/s. Balchand Udairam refused to accept the rent. The Appellants have then been depositing the rent in the postal savings account of K. B. Biswakarma, C/o Himal Match Company. The electricity bil

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