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1998 Supreme(All) 860

IN THE HIGH COURT OF ALLAHABAD
J. C. Gupta, J
G.K.MAINI - Appellant
Versus
XTH ADDITIONAL DISTRICT JUDGE, ALLAHABAD - Respondents
C. M. W. P. 39789 Of 1996
Decided On : 08/12/1998

Advocates Appeared:
B.B.Paul, RAJESH TANDON

An appellate authority exercising powers under the Rent Control Act is a fact-finding authority and has the jurisdiction to set aside the findings of the prescribed authority, but it must do so by critically examining the findings, evidence, and reasons relied upon by the prescribed authority.

Headnote:

RENT CONTROL ACT - SECTION 21 (1) (A) - RELEASE APPLICATION - BONA FIDE NEED - FUTURE NEED OF LANDLORD'S GRANDSON - AVAILABILITY OF ALTERNATIVE ACCOMMODATION - ADMISSION BY LANDLORD - APPELLATE AUTHORITY'S FAILURE TO CRITICALLY EXAMINE FINDINGS OF PRESCRIBED AUTHORITY - WRIT PETITION ALLOWED.

Fact of the Case:

Tenant filed a writ petition challenging the appellate authority's order allowing the landlord's release application under Section 21 (1) (a) of the U.P. Act No. 13 of 1972 (the Act). The landlord sought to evict the tenant from a shop for his grandson's medical clinic, claiming a genuine and pressing need. The tenant contested the application, arguing that the landlord had ample alternative accommodation and that the grandson's future need could not be a ground for release.

Finding of the Court:

The court found that the appellate authority erred in allowing the release application without critically examining the findings of the prescribed authority. The prescribed authority had found that the landlord had available accommodation in the premises of Novelty Restaurant and Koko Hotel, which had been closed for a long time. The appellate authority ignored this finding and proceeded on the wrong premise that the landlord could not be compelled to close down his running business.

Issues: 1. Whether the appellate authority erred in allowing the release application without critically examining the findings of the prescribed authority. 2. Whether the landlord had available alternative accommodation.

Ratio Decidendi: The court held that the appellate authority's order was vitiated by a manifest error of law. The appellate authority was bound to record its own reasons for upsetting the findings of the prescribed authority and for substituting its own findings of fact. However, the appellate authority failed to do so and instead proceeded on wrong premises, ignoring the landlord's own admission and the evidence relied upon by the prescribed authority.

Final Decision: The court allowed the writ petition, set aside the appellate authority's order, and remanded the case back to the appellate court for a fresh decision in accordance with the law and the observations made in the judgment.

J. C. GUPTA, J.


( 1 ) THIS is tenants writ petition which is directed against the judgment and order of respondent no. 1, the Appellate Authority, whereby the appeal filed by landlord-respondent No. 2 has been allowed.

( 2 ) THE dispute relates to a shop situated at 6, Johnstenganj, Allahabad, wherein undisputedly the petitioner has been carrying on business under the name and style of bharat Opticians for the last about 50 years as tenant of respondent No. 2. The landlord moved an application before the prescribed Authority under Section 21 (1) (a) of the U. P. Act No. 13 of 1972 (hereinafter referred to as the Act ). The need shown therein was that one of the grandsons of the landlord, namely, Sumit Sachdeva was doing his M. B. B. S. course in a medical college at Mangalore and after completing the said course, he would set up his clinic in the disputed shop, and since landlord has not in his occupation any vacant accommodation, his requirement for the disputed shop was genuine and pressing. The release application was contested by the petitioner, inter alia, on a number of grounds. It was pleaded that the landlord, being a big landlord, has extensive properties in his occupation in Johnstenganj as well as in other areas of Allahabad city. It was also stated that the landlords grandson. Dr. Sumit Sachdeva had no intention to settle down at Allahabad for doing medical practice here and in any case, his future need could not be a ground for releasing the shop in favour of the landlord. He also pleaded that he has earned a goodwill in the disputed shop and would suffer irreparable injury in case he is ousted from the shop. Undisputedly during the pendency of the proceedings, after completing course at mangalore, Dr. Sumit Sachdeva had left for America and when this fact was brought to the notice of the authorities below, the landlord came up with the case that Dr. Sumit Sachdeva has gone there only for further studies, while according to the tenant-petitioner, he has settled down there permanently with his uncle and aunt who were already engaged there in medical profession. It was further pointed out by the tenant that the landlord and his son (father of Sumit sachdeva) were already engaged in flourishing business of hotel and restaurant and there was no requirement for them of any additional business.

( 3 ) THE Prescribed Authority by the order dated 28. 8. 1993 (Annexure-13 to the writ petition)rejected the landlords application on the ground that there were 19 rooms in raj Hotel and space was also available in ginza Restaurant in the ground floor which was not being used as part of restaurant. Therefore, if the landlord really needed any space for the purpose of establishing clinic for his grandson, the said, accommodations could well be utilized for that purpose without disrupting the occupation of the petitioner from the tenanted shop it was further found that as per the own case of the landlord, the hotel and restaurant business of koko Hotel and novelty Restaurant had been closed long back and, therefore, those premises were also available to the landlord for satisfying the alleged need of his grandson for opening a clinic. The prescribed Authority further held that upto the date of decision of the application, Sumit sachdeva had not come back to India and, therefore, his future need could not be relevant while considering the application for release moved under Section 21 (1) (a) of the Act.


( 4 ) AGGRIEVED by the order of the Prescribed Authority, the landlord filed an appeal under Section 22 of the Act which has been allowed under the impugned judgment by the respondent No. 1. While allowing the release application of the landlord, the learned Additional District Judge, who decided the appeal, has come to the conclusion that Sumit Sachdeva has gone to America only for further studies and since he was entitled to practise in India, he was likely to come back in near future and, therefore, his need for opening a clinic













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