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2024 Supreme(Telangana) 1251

IN THE HIGH COURT FOR THE STATE OF TELANGANA 
Sambasiva Rao Naidu, J.
Jamia Nizamia, Hyderabad – Appellant 
Versus 
M.A. Sattar Khalidi – Respondent
CRP.No.2036 of 2016 And CRP.No.2079 of 2016
Decided On : 11-03-2024

Advocates:
Advocate Appeared:
For the Appellant : P. Panduranga Rao
For the Respondent: Mohd. Ilyas

The court clarified that tax exemption status does not exempt a charitable landlord from compliance with eviction procedures under rent control laws.

Headnote:(A) A.P. Buildings (Lease, Rent and Eviction) Control Act, 1960 - Section 22 - Tenant claims non-maintainability based on landlord's charitable status - Petitions for eviction dismissed by the appellate court, landlord seeks revision - Landlord's claim of tenant's default and need for property construction not acknowledged by appellate court - Appellate court ruling considered erroneous relative to tenant's alternative accommodation and lack of evidence for eviction. (Paras 1-14)

(B) Charitable Institutions - Exemption under Income Tax does not confer blanket status of non-maintainability of eviction cases under statute, established that exemption claimed was relevant for Tax purposes but does not preclude legal action for vacating tenancy. (Paras 10-12)

Facts of the case:
The landlord initiated eviction processes against the tenant, alleging defaults in rent and need for construction of a new building. The tenant countered with evidence of no default and claiming alternative accommodation.

Findings of Court:
The appeals allowed the tenant to remain in property based on verification of evidence and maintainability under the Act pertaining to charitable status.

Issues: The primary issue revolved around the tenant's non-payment of rent, default claims, and the alleged charitable status affecting case maintainability.

Ratio Decidendi: The court reiterated that while the landlord claimed exemption under charitable status, it does not automatically absolve them from procedural adherence in evicting a tenant under prevailing rent control laws.

Result: Civil Revision Petitions dismissed.

Table of Content
1. overview of landlord-tenant dispute (Para 1)
2. nature of rent control cases (Para 2 , 3 , 4 , 6 , 7)
3. court's acknowledgment of tenant's response (Para 5 , 8)
4. arguments regarding charitable institution's exemption (Para 9 , 10 , 11)
5. exemption under income tax affecting case proceedings (Para 12 , 13)
6. dismissal of civil revision petitions (Para 14)

JUDGMENT :

Sambasiva Rao Naidu, J.

Being aggrieved by the judgment dated 26-02-2016 in RA.No.84 of 2014 and RA.No.85 of 2014 on the file of Additional Chief Judge, City Small Causes Court, Hyderabad, where under, the appeals preferred by the respondent/tenant against the judgment in RC.No.21 of 2004 and RC.No.435 of 2008 were allowed, thereby, their two Rent Control Cases were dismissed, the petitioner/landlord in the above referred Rent Control cases and the respondent in both the appeals has filed these two Civil Revision Petitions under Section 22 of A.P. Buildings (Lease, Rent and Eviction) Control Act, which is now ‘The Telangana Buildings (Lease, Rent and Eviction Control Act, 1960) herein after will be referred as ‘Act 15 of 1960’, with a prayer to set aside the above referred judgments in both the appeals and direct the respondent/appellant to vacate and hand over the petition schedule property to the petitioner. Since the appeals were filed on similar grounds and present Civil Revision Petitions were also filed on similar grounds and as the learned counsel for the petitioner and learned counsel for the respondent have advanced common arguments in both the revision petitions, common judgment would suffice for the disposal of these two revision petitions. For the sake of convenience, the parties to the revision petition will be referred to as landlord and tenant. The present Revision Petitions were filed by the landlord.

2. Before adverting to the grounds on which the landlord sought to question the impugned judgment in RA.No.84 of 2014 and RA.No.85 of 2014, it is just necessary to give a brief note of the original Rent Control cases that were filed by the landlord.

3. As per the contentions raised by the landlord and even as per the admitted case of tenant, property bearing No. 5-9-321/3 at Gun Foundry, Hyderabad belongs to the landlord/petitioner and the same was let out to the respondent/tenant on lease for a period of 29 years. While filing RC.No.21 of 2004, the landlord has claimed that the term of lease was expired and the tenant continued to stay in the building. It appears that the tenant has filed one Rent Control case vide RC.No.151 of 2002 seeking permission to deposit the rent into the Bank Account or in the Court on the ground that the landlord refused to receive the rent and though he tried to send the rent amount by way of Money Order, the same as rejected and there was no proper response from the landlord to his request, where under, he sought the details of his Bank Account, so that he can deposit the rent.

4. The landlord while contesting the said RC.No.151 of 2002 filed the above referred RC.No.21 of 2004 under Section 10 (2)(i), 10(2)(iii) and Section 12 of the Act, 1960 on the ground that there was willfull default in depositing the rent by the tenant and he has caused damage to the building by raising additional structures, though the old building is not in a position to take additional load. The landlord has also claimed that they want to raise new structures by dismantling the old building and they have already obtained necessary permission from Municipal Authorities and they made a proposal to the tenant that they would provide accommodation in the new building. The landlord has claimed that in view of the failure of tenant in depositing the rent before the Court and as the property is required for construction of a new building and also on the ground of causing damage, sought for eviction.

5. The tenant has resisted the said case, filed counter disputing the material averments made by the landlord.

6. The second Rent Control case

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