# HAMEEDIA HARDWARE STORES, REPRESENTED BY ITS PARTNER S. PEER MOHAMMED v. B. MOHAN LAL SOWCAR

- **Citation:** [1988] 3 S.C.R. 384
- **Court:** Supreme Court of India
- **Decided:** 1988-03-29
- **Case number:** Ciyil Appeal No. 1014 of 1988
- **Bench:** E.S. !Yenkataramiah, N.D. Ojha
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/hameedia-hardware-stores-represented-by-its-partner-s-peer-mohammed-v-b-mohan-9956
- **Pages:** 18

## Headnote

~
Tamil Nadu Buildings- (Lease and Rent Control) Act, 1960Whether it is necessary for a landlord who institutes a petition under
section 10 (3)(a)(iii) thereof to establish that his requirements is bona
fide or not.
The respondent's brother was carrying on his bnslness In the
front portion of the ground floor of the premises In question, which
belonged to the father of the respondent. The appellant purchased the
said- running business from the brother or the respondent. After
purchasing the bnsiness, the appellant became a tenant under the
father of the respondent. In the rear portion of the ground floor of the
premises, one Mrs. Janaki Ammal was residing as a tenant. Mrs.
Janaki Amm~I vacated the said residential portion and the appellant
took that portion also on rent from the father of the respondent. The
ownership of the premises In question was transferred in favour of the
respondent by his father. On 9.6.1982, an agreement was entered into
in respect of both the portions specifying that the lease should remain In
force till 8.5.11983. After the expiry of the said period, the respondent
instituted a petition for eviction or the appellant In the Court of the
Controller under section 10(3)(a)(lii) of the Tamil Nadu Buildings
(Lease and Rent Control) Act, 1960, on the ground that the premises in
question were needed by his wife for carrying on her bnsiness which she
was carrylng'on somewhere else. The appellant contended inter alia that
the requirement of the wife of the respondent was not bona fide. The
Controller dismissed the petition, holding that the tenancy in question
was in respect of both the residential and non-residential portions and
the respond~nts could not seek eviction of the appellant as the major
portion of the demised premises was of residential character. Aggrieved
by the decision of the Controller, the respondent preferred an appeal
before the Appellate Authority. The Appellate Authority dismissed the
appeal. The respondent f'lled a revision petition before the High Court.
The High Court allowed the revision petition holding that it was not
necessary for the respondent to establish that his requirement was bona
fide as the question of the bonafides ofa landlord's requirement did not
384
·~.
HAMEEDIA HARDWARE v. B.M.L. SOWCAR
385
arise in a case under section IO (3)(a)(iii) of the Act. It, however, held
the claim of the respondent to be bona fide. Aggrieved by the decision of
the High Court, the appellant filed this appeal before this Court for
relief by special leave.
Allowing the appeal, the Court,
•
HELD: The crucial question which arose for consideration in this
case was whether a landlord, who sought eviction of a tenant from a
non-residential building (other than a non-residential building used for
keeping a vehicle or adapted for such use) under section JO OHa)(iii) of
the Tamil.Nadu Buildings (Lease and Rent Control) Act, 1960 (the Act)
was required to prove that he required the said building for his own use
or for the use of any member of his family bona fide. [390C-D I
The Act was enacted to amend and consolidate the law relating to
the regulation of the letting of residential and non-residential buildings
A
B
c
and the control of the rents of such buildings and the prevention of
unreasonable eviction of the tenants therefrom in the State of Tamil
D
Nadu. The Act is an ameliorating piece of legislation. Similar Acts are
in force in almost all the States in India. The provision in question-section
11l(3)(a)(iii)-has to be examined against this background. [3900; 392G r ·
Having regard to the pattern in which clause (a) of sub-section (3)
of section IO of the Act is enacted and also the context, the words "if the
E
landlord required it for his own use or for the use of any member of his
family", found in sub-clause (ii) of section IO (3)(a) of the Act, have to
be read also into sub-clause (iii) of section JO (3)(a) of the Act. Sub·
clauses (ii) and (iii) both deal with the non-residential buildin

## Text

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A
B
c
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H
HAMEEDIA HARDWARE STORES, REPRESENTED BY ITS
PARTNER S. PEER MOHAMMED
v.
B. MOHAN LAL SOWCAR
MARCH 29, 1988
[E.S. !YENKATARAMIAH AND N.D. OJHA, JJ.]
~
Tamil Nadu Buildings- (Lease and Rent Control) Act, 1960Whether it is necessary for a landlord who institutes a petition under
section 10 (3)(a)(iii) thereof to establish that his requirements is bona
fide or not.
The respondent's brother was carrying on his bnslness In the
front portion of the ground floor of the premises In question, which
belonged to the father of the respondent. The appellant purchased the
said- running business from the brother or the respondent. After
purchasing the bnsiness, the appellant became a tenant under the
father of the respondent. In the rear portion of the ground floor of the
premises, one Mrs. Janaki Ammal was residing as a tenant. Mrs.
Janaki Amm~I vacated the said residential portion and the appellant
took that portion also on rent from the father of the respondent. The
ownership of the premises In question was transferred in favour of the
respondent by his father. On 9.6.1982, an agreement was entered into
in respect of both the portions specifying that the lease should remain In
force till 8.5.11983. After the expiry of the said period, the respondent
instituted a petition for eviction or the appellant In the Court of the
Controller under section 10(3)(a)(lii) of the Tamil Nadu Buildings
(Lease and Rent Control) Act, 1960, on the ground that the premises in
question were needed by his wife for carrying on her bnsiness which she
was carrylng'on somewhere else. The appellant contended inter alia that
the requirement of the wife of the respondent was not bona fide. The
Controller dismissed the petition, holding that the tenancy in question
was in respect of both the residential and non-residential portions and
the respond~nts could not seek eviction of the appellant as the major
portion of the demised premises was of residential character. Aggrieved
by the decision of the Controller, the respondent preferred an appeal
before the Appellate Authority. The Appellate Authority dismissed the
appeal. The respondent f'lled a revision petition before the High Court.
The High Court allowed the revision petition holding that it was not
necessary for the respondent to establish that his requirement was bona
fide as the question of the bonafides ofa landlord's requirement did not
384
·~.
HAMEEDIA HARDWARE v. B.M.L. SOWCAR
385
arise in a case under section IO (3)(a)(iii) of the Act. It, however, held
the claim of the respondent to be bona fide. Aggrieved by the decision of
the High Court, the appellant filed this appeal before this Court for
relief by special leave.
Allowing the appeal, the Court,
•
HELD: The crucial question which arose for consideration in this
case was whether a landlord, who sought eviction of a tenant from a
non-residential building (other than a non-residential building used for
keeping a vehicle or adapted for such use) under section JO OHa)(iii) of
the Tamil.Nadu Buildings (Lease and Rent Control) Act, 1960 (the Act)
was required to prove that he required the said building for his own use
or for the use of any member of his family bona fide. [390C-D I
The Act was enacted to amend and consolidate the law relating to
the regulation of the letting of residential and non-residential buildings
A
B
c
and the control of the rents of such buildings and the prevention of
unreasonable eviction of the tenants therefrom in the State of Tamil
D
Nadu. The Act is an ameliorating piece of legislation. Similar Acts are
in force in almost all the States in India. The provision in question-section
11l(3)(a)(iii)-has to be examined against this background. [3900; 392G r ·
Having regard to the pattern in which clause (a) of sub-section (3)
of section IO of the Act is enacted and also the context, the words "if the
E
landlord required it for his own use or for the use of any member of his
family", found in sub-clause (ii) of section IO (3)(a) of the Act, have to
be read also into sub-clause (iii) of section JO (3)(a) of the Act. Sub·
clauses (ii) and (iii) both deal with the non-residential buildings. They
could have been enacted as one sub-clause by adding a conjunction
'and' between the said two sub-clauses, in which event the clause wonld
F
have read thus: 'in case it is a non-residential building which is used for
the purpose of keeping a vehicle or adapted for such use, if the landlord
required it for his own use or for the use of any member of bis family
and if he or any member of his family is not occupying any such build·
ing in the city, town or village concerned which is his own, and in case it
is any other non-residential building, if the landlord or any member of G
his family is not occupying for purposes of a business which he or any
member of his family is carrying on, a non-residential building in the
city, town or village concerned which is his own.' If the two sub-clauses
are not so read, it would lead to an absurd result. The non-residential
building referred to in sub-clause (ii) is a building used for the purpose
of keeping a vehicle or adapted for such use, and all other non·
H
A
B
386
SUPREME COURT REPORTS
[ 1988] 3 S.C.R.
residential buildings fall under sub-clause (iii). The State legislature
cannot be attributed with the intention that it required a more stringent
proof by insisting upon proof of bona fides of his requirem1,mt or need
also when a landlord is seeking eviction of a tenant from a garage than
in the case of a non-residential building occupied by a large commercial
house for carrying on business. It is no doubt true that the Court, while
construing a provision should not easily read into it words not expressly
enacted, but having regard to the context in which a pron.ion appears and the
object of the statute in which the said provision is enacted, the Court should
construe it in a harmonious way to make it meaningful. [398C-H; 399A]
In the present case, by insisting on the proof of the bona fide of
:
~
c
the requirement of the landlord, the Court is not doing any violence to
~.
the statute nor embarking upon any legislative action. The Court is only
t
construing the words of the statute in a reasonable way having regard to
the context. [399E] ~
:By merely proving that the premises in question is a non-residenD
tial building and that the landlord or any member of his family is not
occupying, for the purpose of a business which he or any member of his
family is carrying on, any residential building in the city, town or
village concerned which is his own, the landlord cannot in the context in
which section 10 (3)(a)(iii) appears, get a tenant evicted. He must -show
in view of clause (e) of section 10 (3) that his claim is bona fide. The
E
word 'claim' means "a demand for something as due", or "to seek or
ask for on the ground of right", etc. In the context of the Rent Control
Law, which is enacted for the purpose of giving protection to the tenants against unreasonable evictions and for the purpose of making
equitable distribution of buildings amongst persons who are in need of
them, in order to prove that his claim is bona fuie, a landlord should
F
establish that he deserves to be put in possession of the premises which
is in the occupation of a tenant. Any decision on the question whether a
landlord deserves to be put in possession of a premises in the occupation
of a tenant should naturally depend upon the bona fides of the landlord's requirement or need. The word 'claim' in clause (e) of section
10(3) of the Act should, therefore, be construed as 'the requirement' of
G
the landlord or his deservedness. Since clause (e) of section 10(3) of the
Act is also applicable to a petition ·med under sub-dause (iii) of section
10(3)(a) of the Act, it becomes necessary to examine whether the
requirement of the landlord is bona fide; otherwise, a landlord will be
able to evict a tenant to satisfy his whim by merely proving the ingredients mentioned in section 10(3)(a)(iii) of the Act. If the requirement of
H
"claim" being "bona fide" as contained in section 10(3)(e) is construed
,\--
~)-·
HAMEEDIA HARDWARE v. B.M.L. SOWCAR
387
to mean that genuineness of the need of the landlord for the non-resiA
dential building Is not to be considered and the circumstances that the
landlord on the date of making the application Is factually carrying on
business and has no noll-n!Sidential building of his own in his occupation in the city, town or village concerned, Is to be construed sufficient
· to make his claim bona fide, the tenancy of no non-residential building B
I ·;l
will be secnre. It will be preposterous to attribute such an intention to
.. ,
the leglslahite. The need of the landlord should be genuine. The landlord should bona fide need the premises for his own use and occupation
~t::...
or for the occupation by any of the members of his family, as held by
this Court in Phiroze Bamanji Desai v. Chandra Kant M. Patel an.d
Ors., [1974] 3 S.C.R. 267 and Mattu/al v. Radhe Lal, [1975] I S.C.R. c
I
127. [399F-H; 400A-G]
-:r
I
The High Court was in error in this case in holding that the
landlord need not prove that his requirement was bona fide but that his
claim was bona fide as provided in clause (e) of section 10(3) of the Act.
The High Court made a distinction between 'requirement' and 'claim' D
withoutthere beingadilference. [400H; 40JA]
The Court was of the view that Mis. Mahalakshmi Metal Industries v. K. Suseeladevi, [1982] 2 Mad. L.J. 333; M. Abdul Rahman v.
'
S. Sadasivam, [1984] J Mad. L.J. 410 'and A. Khan Mohammed v. P.
~-1
Narayanan Nambiar & Ors., 99 Law Weekly 965, relied upon by the
E
respondent, were wrongly decided and were liable to be over-ruled. The
Court overmled them. A landlord seeking eviction of a tenant from a
non-residential premises under section 10(3)(a)(iii) of the Act should in
order to succeed in his petition, establish that he bona-fide requires the
premises in addition to proving the other ingredients referred to the-
··~
rein. The judgment of the High Court set aside. Since the High Court F
had approached the case from a wrong angle, the Court directed the
High Court to decide the case afresh in the light of what the Court had
said in this appeal. Case remanded to the High Court to decide it
afresh. If the High Court found that the case should be remanded to the
Trial Court to enable any of the parties to ·tead evidence on the question
of bona fide requirement of the landlord, it might remit tile case to the
Trial Court. [401B-DI
G
~
Mahalakshmi Metal Industries v. K. Suseeladevi, [1982] 2 Mad.
L.J. 333; M. Abdul Rahman v. S. Sadasivam, (1984] 1 Mad. L.J. 410,
and A.Khan Mohammed v. P. Narayanan Nambiar and others, 99 Law
Weekly 965, overruled.
H
'
388
SUPREME COURT REPORTS
[19881 3 S.C.R.
A
Moti Ram v. Suraj Bhan and Others, [1966] 2 S.C.R. 896; Neta
Ram v. Jiman Lal, [11162] 2 Supp. S.C.R. 623; Nathala Sampathu
Chetty v. Sha Vajingjee Bapulal, (1967] I Mad. L.J. 289; Madras District Central Co-operative Bank Limited, Mylapore Branch, Madras-4
v. A. Venkatesh, 99 Law Weekly 714; M/s. Thilagaraj Match Works,
B
c
through its partner S. Chidambaram v. C. Sundresan, [1985] I Mad.
Law J. 106; P. Thanneer-Malai Chettiar v. S.J. Dhanraj and another,
[1986] Mad. L.J. 115; Seaford Court Estates Ltd. v. Asher, (1949] 2
All. E.R. 155 at 164; M. Pentiah and Ors. v. Muddala Veeramallappa
and Ors., (1961] 2 S.C.R. 255 at 314; Bangalore Water Supply &
Sewerage Board, etc. v. R. Rajappa & Ors., [19781 3 S.C.R. 207;
Phiroze Bamanji Desai v. Chandrakant M. Patel & Ors., [1974] 3
S.C.R. 267 and Mattulalv. Radhe Lal, [1975] I S.C.R. 127, referred to.
CIVIL APPELLATE JURISDICTION: Ciyil Appeal No. 1014
of 1988.
From the Judgment and Order dated 25.1.1988 of the Madras
D
High Court in C.P.P. No. 215of1986.
E
Mrs. Nalini Chidambaram, Ms. Setia Vaidalingam, N. Thiagarajan and Ms. Radha for the Appellant.
S. Srinivasan for the Respondent.
The Judgment of the Court was delivered by
VENKATARAMIAH, J. The question which arises for consideration in this case is whether a landlord who seeks eviction of a tenant
from a non-residential building (other than a non-residential building .\ ..
F
which is used for keeping a vehicle or adapted for such use) under )f,
section 10(3)(a)(iii) of the Tamil Nadu Buildings (Lease and Rent
Control) Act, 1960 (hereinafter referred to as 'the Act') is required to
prove that he requires the said building for his own use or for the use of
G
any member of his family bona fule in the proceedings instituted before the Controller.
The appellant is a partnership firm represented by its partner, 5.
1 .
Peer Mohammed. The respondent's brother was carrying on business
f'"Win hardware in the front portion of the ground floor of the premises
bearing No. 157, Kutcheri Road, Mylapore, Madras-4. The appellant
purchased the said running busi11ess from the brother of the responH
dent on 5.7.1974. The said building, however, belonged to the father
(y
HAMEEDIA HARDWARE v. B.M.L. SOWCAR [VENKATARAMIAH,J.[
389
of the respondent. After purchasing the business, the appellant
became a tenant under the father of the respondent by paying an
A
advance of Rs.1,500 and agreeing to pay a rent at the rate of Rs.450
per month for the portion in which it commenced to carry on the
business. In the rear portion of the ground floor of the premises one
Mrs. Janaki Ammal was residing as a tenant. Mrs. Janaki Ammal
• ~ vacated the said residential portion in October, 1974. With effect from
B
5.10.1974 the appellant took the portion vacated by Mrs. Janaki
Ammal also on rent from the father of the respondent by paying
-
Rs.525 as advance and agreeing to pay a monthly rent of Rs.175. The
rent of this portion was increased subsequently to Rs.315 per month.
On 25. lt."1980 the appellant received a notice from an advocate, who
~
was acting on behalf of the father of the respondent terminating the c
II<
tenancy of the appellant in respect of both the portions with effect
I
from 31.12.1980 and requiring the appellant to deliver possession of
the two portions of the ground floor of the premises in question to the
father of the respondent on the ground that he needed the premises for
the occupation of his son. The appellant sel\t a reply denying the right
of the respondent's father to evict the appellant from the premises.
D
Thereafter it is stated that the ownership of the premises in question
was transferred in favour of the respondent by his father. Thereafter
the respondent asked the appellant to increase the rent payable for the
'
premises. In order to avoid litigation, the appellant agreed to pay a
~ consolidated amount of Rs. l,000 per month by way of rent for both
the portions in the year ,1981 and also paid a sum of Rs.7,500 as
E
advance. On 9.6.1982 an agreement was entered into in respect of both
the portions specifying that the lease should remain in force till
8.5.1983. After the expiry of the said period, it is stated, the respon-
·'
dent again demanded enhanced rent. On the appellant not complying
~-
with the said demand the respondent instituted a petition for eviction
of the appellant in the Court of the Controller at Madras under section
F
10(3)(a)(iii) of the Act on the ground that the premises in question
were needed by his wife for carrying on pawn broker business which
she was carrying on elsewhere. The appellant resisted the petition. It
was inter alia contended by the appellant that the requirement of the
wife of the respondent was not bona fide and the petition was liable to
be dismissed. After trial, the Controller dismissed the petition holding G
~ that the tenancy in question was in respect of both the residential and
'
non-residential portions and that the respondent could not seek eviction of the appellant as the major portion of the demised premises was
of residential character. Aggrieved by the decision of the Controller
the respondent preferred an appeal before the Appellate Authority.
The Appellate Authority dismissed the appeal. Thereupon the responH
-.
390
SUPREME COURT REPORTS
I 1988) 3 S.C.R.
•
A
dent preferred a revision petition before the High Court of Madras in
y~
Civil Revision Petition No. 215 of 1980. That petition was allowed by
the High Court holding that it was not necessary for the respondent to
establish that his requirement was bona fide as the question of bona
/ides of a landlord's requirement did not arise for consideration at all
B
in case falling under section 10(3)(a)(iii) of the Act. It, however, held
that the claim of the respondent was bona fide. Accordingly, the High
~· if<
Court allowed the revision petition and directed the appellant to quit
and deliver vacant possession of the premises in question to the
~
respondent. This appeal by special leave is filed against the judgment
of the High Court of Madras.
•
c
The crucial question which arises for consideration in this case is
~~
whether it is necessary for a landlord, who institutes a petition under
•
section 10(3)(a)(iii) of the Act, to establish that his requirement is
'
bona fide or not. As can be seen from the long title of the Act it was
r
enacted by the State Legislature to. amend and consolidate the law
D
relating to the regulation of the letting of residential and non-residential buildings and the control of rents of such buildings and the
prevention of unreasonable eviction of tenants therefrom in the State
of Tamil Nadu. Section 10 of the Act provides that a tenant shall not
be evicted whether in execution of a decree or otherwise except in
accordance with the provisions of section JO or sections 14 to 16 of the
E
Act. The material portion of sub~section 3(a) of section 10 of the Act,
·~
which is relevant for purposes of this case reads thus:
"10(3)(a). A landlord may, subject to the provisions of
clause (d), apply to the Controller for an order directing
the tenant to put the landlord in possession of the building.
F
(i) in case it is a residential building, if the landlord ).. ...
required it for his own occupation or for the occupation of
'
any member of his family and if he or any member of his
family is not occupying a residential building of his own in
the city, town or village concerned;
G
(ii) in case it is a non-residential building which is used for
the purpose of keeping a vehicle or adapted for such use, if ;..
the landlord required it for his own use or for the use of any
member of his family and if he or any member of his family
is not occupying any such building in the city, town or
H
village concerned which is his own;
1
/
HAMEEDIA HARDWARE v. B.M.L. SOWCAR IVENKATARAMIAH, J.J
391
(iii) in case it is any other non-residential building, if the
landlord or any member of his family is not occupying for
purposes of a business which he or any member of his family is carrying on, a non-residential building in the city,
town or village concerned which is his own;
( e) The Controller shall, if he is satisfied that the claim of
the landlord is bona fide, ·make an order directing the tenant
to put the landlord in possession of the building on such
date as may be specified by the Controller and if the Controller is not so satisfied he shall make an order rejecting
the application."
For purposes of sub'section (3) of section 10 of the Act the
buildings are classified into two categories by tl\e Act, namely, residential buildings and non-residential buildings. Sub-clause (i) of clause
A
B
c
(a) of sub-section (3) of section 10 of the Act provides that a landlord
D
may subject to the provisions of clause ( d) apply to the ·Controller
for an order directing the tenant to put the landlord in possession of a
residential building, if the landlord required it for his own occupation
or for the occupation of any member of his family and if he or any
member of his family is not occupying a residential building of his own
in the city, town or village concerned. Sub-clause (ii) of clause (a) of E
sub-section (3) of section 10 of the Act relates to eviction from a
non-residential building which is used for the purpose of keeping a
vehicle or adapted for such use. If the landlord required such a building for his own use or for the use of any member of his family and if he
or any member of his family is not occupying any such building in the
city, town or village concerned which is his own he can apply for the F
eviction of the tenant therefrom. Sub-clause (iii) of clause (a) of subsection (3) of section 10 of the Act deals with other kinds of non·
residential buildings. If the landlord or any member of his family is not
occupying for purposes of a business whieh he or any member of his
family is carrying on, a non-residential building in the city, town or
village concerned which is his own, a landlord may, subject to the G
provisions of clause (d),1apply to the Controller for an order directing
the tenant to put the l.andlord in possession of such a building. It may
be stated here that the words 'if the landlord required it for his own use
or for the use of any member of his family' are not to be found in
sub-clause (iii) of section 10(3)(a) of the Act. Clause (e) of section
10(3) of the Act, however, provides that the Controller shall, if he is
H
392
SUPREME COURT REPORTS
[1988) 3 S.C.R.
'
A satisfied that the claim of the landlord is bona fide make an order
directing the tenant to put the landlord in possession of the building on
such date as may be specified by the Controller and if the Controller is
not so satisfied he shall make an order rejecting the application.
Clause ( e) of section 10(3) applies to all cases of eviction falling under
section 10(3) of the Act. The decision in this case depends upon the
B effect of the omission of the words 'if the landlord required it for his
own use or for the use of any member of his family' in sub-clause (iii)
of section 10(3)(a) of the Act. It is argued on behalf of the appellant
that reading sub-clause (ii) and (iii) of section 10(3)(a) of the Act
together, which relate to the eviction from non-residential buildings,
the words 'if the landlord required it for his own use or for the use of
c any member of his family' which are found in sub-clause (ii) of section
10(3)(a) should be read into sub'clause (iii) of section 10(3)(a) also
and that a landlord should establish in order to succeed in a petition
for eviction filed under section 10(3)(a)(iii) of the Act that his requirement or the requirement of a member of his family is bona fide. It is
also argued in the alternative that the word 'claim' in the words 'that
D
the claim of the landlord is bona fide' in clause (e) of section 10(3) of
the Act refers only to the requirement of the landlord and to nothing
else. On the other hand it is urged on behalf of the respondent relying
upon three decisions of the High Court of Madras in (i) M/s.
Mahalakshmi Metal Industries v. K. Suseeladevi .. [19821 2 Mad. L.J.
333; (ii) M. Abdul Rahman v. S. Sadasivam, 119841 1 Mad. L.J. 410
E
and (iii) A. Khan Mohammed v. P. Narayanan Nambiar & Others, 99
Law Weekly 966 that there was no need for a landlord to establish the
bona ft.des of his requirement or the requirement of a member of his
family when a petition is filed under section 10(3)(a)(iii) of the Act and
it is enough if his claim is proved to be bona fide. The High Court has
upheld the said plea of the respondent relying upon the said three
F
decisions. The correctness of these three decisions is questioned
before us by the appellant.
We have already noticed that the object of the Act was to prevent unreasonable evictions of tenants from buildings. The Act is an
ameliorating piece of legislation. Similar acts are in force in almost all
G
the States in India. The provision in question has to be construed
•" 1\
·'f'A
~
!I -
~
'
~-
}
against this background. The Act has been in force from 1960.
,l._.
In Moti Ram v. Suraj Bhan & Other, [19601 2 S.C.R. 896 this
Court was required to construe section 13(3)(a)(iii) of the East Punjab
Urban Rent Restriction Act, 1949 which at the relevant time provided
H
that a landlord might apply to the Controller for directing a tenant to
,j\
HAMEEDIAHARDWAREv. B.M.L. SOWCAR [VENKATARAMIAH, J.]
393
put the landlord in possession of the building in question if he required
it for the re-construction of that building or for its replacement by
another building or for the erect',,,, of other buildings. In that case the
Rent Controller and the AppeJ.J~i<)' Authority had rejected the claim of
the landlord on the ground t1Ll"the landlord had not established that
the premises in question were required by him bona fide. The High
Court while accepting that the requirement in question must be shown
to be bona fide held that on the evidence the findings of the Courts
below that the landlord's requirement was not bona fide were not
correct. The High Court accordingly directed the eviction of the tenant
in question. This Court while affirming the decision of the High Court
held that the landlord had, in fact, made out that he required the
premises bona fide for purposes of re-construction. Thus it is seen that
in the context of a law enacted for preventing unreasonable evictions
this Court read into a ground on which a landlord could seek the
eviction of his tenant that the landlord should establish that his
requirement was bona fide. A mere desire on the part of the landlord
to re-construct a building was not sufficient to evict a tenant from the
premises. He had to establish that he needed the premises bona fide
for re-construction it. In a later case, i.e., Neta Ram v, Jiwan Lal,
(1962) 2 Supp. S.C.R. 623 which arose under the provisions of the
Patiala and East Punjab States Union Urban Rent Restriction Ordinance, one of the grounds on which the landlord sought the eviction of
the tenants in occupation of the premises involved in that case was that
the premises were in a state of disrepair and were dilapidated and,
therefore, the landlord wished to rebuild on the premises after dismantling the structure. On the said issue the Rent Controller held that
in deciding whether the tenant should be ordered to hand over the
possession to the landlord the Courts must have regard to the bona fide
requirement of the landlord which meant that the desire to rebuild the
premises should be honestly held by the landlord but that the condition of the building also played an important part in determining
whether the landlord had the intention genuinely and the landlord was
not using the said excuse as a device to get rid of the tenants. In that
connection the Rent Controller observed that the state of the building,
the means of the landlord and the possibility of the better yield by way
of rent should be kept in mind. The Controller, holding that the claim
of the landlord was not bona fide, decided the said issue against him.
On appeal the Appellate Authority held that the shops and chobaras
were in good condition and that the landlord was not, in good faith,
wanting to replace the building, when he had no means to build it. The
High Court, however, allowed the revision petition filed before it
holding that upon the evidence on record it had been established
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beyond doubt that the landlord genuinely and bona fide required the 'f'
premises for re-building. On appeal by special leave to this Court, this
Court observed that the very purpose of the Rent Restriction Act
would be defeated if the landlords were to come forward and to get
tenants tumed out, on the bare plea that they wanted to reconstruct
the house without first establishing, that the plea was bona fide with
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regard to all circumstances, viz. that the houses needed reconstruction
or that they had means to reconstruct them. Accordingly, the judg-
-""'
ment of the High Court was reversed and the petitions for eviction
were dismissed. Following the observations made in the above decisions in Nathella Sampathu Chetty v. Sha Vajingjee Bapulal, [1967] I
Mad. L.J. 289 a Division Bench of the High Court of Madras conc strued section 10(3)(a)(iii) of the Act thus:
t-'
"Section 10 of the Madras Buildings (Lease and Rent Control) Act, 1960, provides for eviction of tenants in certain
circumstances. Sub-section 3(a)(iii) of the section allows a
landlord to apply to the Controller for an order directing a
D
ten.ant to put him in possession of the building if the landlord is not occupying for purposes of business which he is
carrying on, a non-residential building in the city, town or
village concerned which is his own. The second proviso to
this clause is to the effect that where a landlord has already
obtained possession of a building under this provision, he
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shall not be entitled to apply again for possession of
another non-residential building of his own. If the conditions of these provisions are satisfied, the Controller may
make an order as asked for by the landlord provided he is
further satisfied that the claim of the landlord is bona fide.
F
(underlining by us) )-
In the Madras District Central Co-operative Bank Limited, My/apore Branch, Madras-4 v. A, Venkatesh, 99 Law weekly 714 a single
Judge of the High Court disagreed with the views expressed by another
single Judge in Abdul Rahman's case (supra) and observed thus:
G
"The question now is whether an order directing the
tenant to put the landlord in possession should be made. It
is pointed out by the learned counsel for the respondent
landlord following a ruling of this Court in Abdul Rahman
v. S. Sadasivam, that there is no jurisdiction for the Rent
H
Controller to go into the question of bona fide requirement
;
HAMEEDIAHARDWAREv. B.M.L. SOWCAR [VENKATARAMIAH,J.]
395
in a claim under s. 10(3)(a)(iii) of the Act. Ramanujam,J.
A
took the view that a distinction has to be made between the
two sections, s. 10(3)(a)(i) ands. 10(3)(a)(iii) in view of the
word 'require', occurring in s. 10(3)(a)(i) and in the
absence of that word, in s. 10(3)(a)(iii) in other words,
what the learned Judge points out is that the Rent Controller has no jurisdiction to go into the question whether the
B
requirement of the landlord is bona fide, as the Rent Controller has to pass an order of eviction in case the landlord
is not occilpying for the purpose of business which he is
carrying on, any non-residential building in the city which
is his own. The learned Judge further pointed out that
when the provisions of s. 10(3)(a)(i) and s.10(3)(a)(iii) use C
different expressions, it should be taken that the Legislature intended these provisions to have different operations.
With respect to the learned Judge, I may point out that the
mere absence bf the word 'require' in s.10(3)(a)(iii) would
not necessarily lead to the inference that the Legislature
did not intend that the Rent Controller should go into the D
question of bona fides of the requirement of the landlord in
respect of the requirement of a non-residential premises
under s.10(3)(a)(iii) of the Act. My reasons for holding so
are as follows: S. 10 enumerates certain grounds for the
eviction of the tenant. In other words eviction under the
Rent Control Act can be effected only on the grounds E
mentioned in s.10. The landlord may have a right to evict
the tenant under the general law. S.10(3)(a) says that the
landlord may, subject to the provisions of Cl. (d), apply to
the Controller for an order directing the tenant to put the
landlord in possession of the buildings. S. 10(3)(a)(i) deals
with residential buildings. S. 10(3)(a)(ii) deals with nonF
residential buildings used for purpose of keeping vehicles.
S. 10(3)(a)(iii) is in respect of non-residential buildings: S.
10(3)(b) gives a right to religious, charitable, educational
or other public institutions, to institute proceedings before
the Controller if the institution requires the building. S.
10(3)(c) is for additional accommodation. S. 10(3)(d) G
speaks of tenancy for specified period agreed between the
landlord and the tenant and it prohibits the landlord from
applying, before the expiry of such period. Now after these
· sections, S. 10(3)(e) runs thus:
'The Controller shall, if he is satisfied that the claim H
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SUPREME COURT REPORTS
[1988] 3 S.C.R.
of the landlord is bona fide make an order directing the
tenant to put the landlord in possession of the building on
such date as may be specified by the Controller and if the
Controller is not so satisfied he shall make an order rejecting the application.'
I find in the judgment of Ramanujam, J. this S.
10(3)(e) has not been adverted to. S. 10(3)(e) applies to Ss.
10(3)(a)(i), 10(3)(a)(ii) and 10(3)(a)(iii) and also to Ss.
10(3)(b) and 10(3)(c). If the Legislature intended that the
provisions of S. 10(3)(a)(i) and S. 10(3)(a)(iii) to have
different operations, the Legislature would not have stated
in S.10(3)(e) that the Controller should be satisfied that the
claim of the landlord is bona fide, before he makes an order
directing the tenant to put the landlord in possession, and
the further words 'if the Controller is not so satisfied, he ,
shall make an oder rejecting the application' very clearly
show that the Controller should, before passing an order
for eviction, be satisfied with the bona fide of the claim, or
else he should dismiss it."
The main ground on which the learned Juge who decided the
above case disagreed with the decision in Abdul Rahman's case (supra)
is that in Abdul Rahman's case (supra) section 10(3)(e) of the Act,
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which applied to all the three sub-clauses, namely (i), (ii) and (iii) in
~
sec.tion 10(3)(a) of the Act had not been adverted to. The learned
Judge also held that the mere absence of the word 'require' in section
10(3 )(a )(iii) of the Act did not necessarily lead to the inference that
the Legislature did not intend that the Controller should not go into
the question of bona fides of the requirement of the landlord in a
,
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petition for eviction filed under that provision. Anotherleamed Judge
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of the Madras High Court has taken the same view in Mis. Thilagaraj
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Match Works, through its partner S. Chidambaram v. C. Sundaresan,
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[ 1985] 1 Mad. Law J. 106. It is observed in that case thus:
"In the present case, the Appellate Authority has not
adverted to these features at all and in one place he
observes that the bona fide of the claim of the landlord i·--..,;._..,
extraneou~ and it should not be tested to.o severely. This · ~""'!
exposes his wrong approach to the quest10n of bona fide
,_
which is a relevant one. The very ingredient of section
10(3)(e) of the Act requires that the question of bona fide
has got to be tested and it has got a due place while
) ;.'y
HAMEEDIA HARDWARE v. B.M.L. SOWCAR [VENKATARAMIAH, J.I
397
adjudicating a petition for eviction by the landlord under
the concerned provisions. It is not the desire of the landlord, but there must be an element of need for the landlord
before it could be stated that he requires the premises for
his own occupation. The features referred to above, cannot
be eschewed as irrelevant, for after all bona fide will.have
to be proved in an ordinary manner like any other fact in
issue, and the entite gamut of facts and circumstances has
to be adverted to on this question. As already stated, I am
not expressing any opinion over these features on merits,
and it is for the Appellate Authority to advert to them and
adjudicate upon the question afresh .one way or the other.
The discussions above oblige me to interfere in revision
and accordingly the revision is allowed and the matter
stands remitted to the Appellate Authority for him to con- ·
sider it afresh taking note of all the relevant features and
factors of the case on the question of bona fides, and pass
appropriate orders. Both the counsel represent that for the
purpose of comprehensive adjudication . of the matter,
further evidence has to be adduced. I take note of the
request of both the counsel and I direct that the Appellate
Authority will permit the parties to place further evidence
and he will decide the matter afresh after such evidence is
placed, the Appellate Authority will do well to dispose of
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the matter expeditiously and in any event within a period of E
three months from the date of receipt of the copy of this
order."
In P. Thanneermalai Chettiar v. S.J. Dhanraj, [19861 Mad. L.J.
115 another teamed Judge of the High Court of Madras has construed
section 10(3)( e) of the Act thus:
F
"It is not disputed that section 10(3)(e) of Act 18 of
1960 is applicable to the case of residential building as well
as non-residential building and it is provided therein that if
the Controller is satisfied that the claim of the landlord is
bona fide, he shall make an order directing the tenant to G
put the landlord in possession of the building; otherwise,
he has to reject the application. In the instant case, considering the various circumstances and also the fact that the
petitioner was residing in a house· of his own at Devakottai
where he has got vast extent of properties and was carrying
on busine.ss along with other members of his family, the H
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SUPREME COURT REPORTS
[1988) 3 S.C.R.
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claim of the petitioner that he required the premises for his
own use and occupation is not proved and in any event
there is no bona fide in the same."
The main ground on which the learned Judge who decided Abdul
Rahman's case (supra) held that it was not necessary to establish the
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bona fide equirement of the landlord when he made an application for
eviction under section 13(3)(a)(iii) of the Act was that, the word
'require' was not to be found in section 10(3)(a)(iii) of the Act. We are
of the view that having regard to the pattern in which clause (a) of
sub-section (3) of section 10 of the Act is enacted and also the context,
the words 'if the landlord required it for his own use or for the use of
1~-
c his any member of the family' which are found in sub-clause (ii) of
section 10(3)(a) of the Act have to be read also into sub-clause (iii) of
section 10(3)(a) of the Act. Sub-clause (ii) and (iii) both deal with the
non-residential buildings. They could have been enacted as one subclause by adding a conjunction 'and' between the said two sub-clause,
in which event the clause would have read thus: 'in case it is a nonD
residential building which is used for the purpose of keeping a vehicle
or adapted for such use, if the landlord required it for his own use or
for the use of any member of his family and if he or any member of his
family is not occupying any such building in the city, town or village
concerned which is his own; and in ~ase it is any other non-residential
\.
building, if the landlord or any member of his family is not occupying
E for purposes of a business which he or any member of his family is
carrying ·an, a non-residential building in the city, town or village
concerned which is his own.' If the two sub-clauses are not so read, it
would lead to an absurd result. The non-residential building referred
to in sub-clause (ii) is a building which is used for the purpose of
'
keeping a vehicle or adapted for such use and all other non-residential )-
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buildings fall under sub-clause (iii). The State Legislature cannot be
attributed with the intention that it required a more stringent proof by
insisting upon proof of bona fides of his requirement or ueed also when
a landlord is seeking eviction of a tenant from a garage than in the case
of a non-residential building which is occupied by large commercial
house for carrying on business. The learned counsel for the respondent
G was not able to explain as to why the State Legislature gave greater
~4<
protection to tenants occupying premises used for keeping vehicles or
adapted for such use than to tenants occupying other types of non-
•
residential buildings.