# K. K. CHARI v. R. M. SESHADRI

- **Citation:** [1973] 3 S.C.R. 691
- **Court:** Supreme Court of India
- **Decided:** 1973-03-16
- **Case number:** Civil Appeal No. 447 of 1971
- **Bench:** A. Alagjriswami, J. D. Dua, C. A. Vaidialingam
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/k-k-chari-v-r-m-seshadri-5924
- **Pages:** 23

## Headnote

M~dras Buildings (Lease and Rent Control)
Act,
1960,-Section
10(3) (a) (i)-Bonafide requirement of land!ord-Co111pron1h.: decreewhether a separate enquiry and satisfaction ap~1rt /roni the cvmpron1ise
necessary for passing eviction order.
The appellant bought. the suit premises and filed
legal
proceedings
against the respondent, who was a tenant in the suit premisl!s, for eviction on the ground of appellant's bonafide requirements u/s 1()(3) df the
Madras Rent Control Act. The tenant contested the Jandlord's ct-aim
inter a/ia, on the ground that the appellant's claim was not bona fide,
At
the trial, the appellant examined himself, and produced voluminous documentary
evidence.
The
appellant
was·
not
cross-exan1ined.
The
appellant
and
the respondent
then
entered
into
a
compro~ise
in
which
the tenant
gave
up
all
his defences
and
was
gtven
three months'' time to vacate the premises.
A decree for eviction
was
accordingly passed by the Small Causes Court. The respondent did not
vacate the premises and when the decree was sought
to
be executed
challenged the decree of eviction principally on the ground that the Small
Causes Court had no jurisdiction to pass
a decree only in t.erms of the
compromise decree and that Court had a duty to independently satisfy itself
about the bona fide requirement of the landlord.
The High Court held
that the order of the
Small
Causes Court
was without
jurisdiction.
Allowing the appeal,
HELD : (i) The true position is that an order of evictiCJ> based on
consent of the parties is not necessarily void
if the jurisdictional fact.
namely, the existence of one or more df the .conditions mentioned in
Section 10 were shown to have existed when the Court made the order.
Satisfaction of the Court which is a pre-requisite for the order of eviction,
need not be by the manifestation borne out by judicial findings. It at some
stage, the Court was called upon to apply its mind to the question and
there was sufficient material before it before the parties in,·it-ed it to pass
an order in terms of their agreement, it is possible to postulate that the
Court was satisfied about the grounds on which the order of eviction \\'as
based. In the instant case, withdrawal of defences by the tenant expressly
amounts to the tenant admitting that the landlord has made out his case
regarding his requirement requiring the premises for his O\Vn occupation
belr.g bona fied.
[704E]
(ii) From the particular facts of this case, it can be
said that the
decree for eviction has not been solely passed on the bas'is of the com·
promise.
The evidence adduced by the respondent upto the stage
at
which the compromise was entered into, was enough to establish the land·
lord's claim.
Bahadur Singh and another v. Muni Subrat Das [1969] Z S.C.R. 432,
Kaushalya Devi v. K. L. Bansal A.I.R. 1970 S.C. 838, and Ferozi Lal v.
Manmal and Others A.I.R. 1970 S.C. 794, distinguished on facts.
692
SUPREME COURT REPORTS
[1973] 3 S.C.R.
Per Alagiriswami, J.
An eviction order based
op
a compromise
~
where the landlord has asked for possession on any one of the grounds
on the basis of which he could ask for possessio~, is valid. [708Dl
Barton v. Fincham, [1921] 2 K.B. 291,
Babu Ram Sharma v. Pal
Singh, [1959] P.L.R. 33, V~cs Dev v. Nikhiram, A.I.R. 1960 Punjab 514
cited with approval.

## Text

_Characters 0–39,688 of 61,380. This is a partial read: ask again with offset=39688 for what follows._

0
E
f
G
H
K. K. CHARI
v.
R. M. SESHADRI
March 16, 1973
6!H
[A. ALAGJRISWAMI, J. D. DUA & C. A. VAIDIALINGAM, JJ.J
M~dras Buildings (Lease and Rent Control)
Act,
1960,-Section
10(3) (a) (i)-Bonafide requirement of land!ord-Co111pron1h.: decreewhether a separate enquiry and satisfaction ap~1rt /roni the cvmpron1ise
necessary for passing eviction order.
The appellant bought. the suit premises and filed
legal
proceedings
against the respondent, who was a tenant in the suit premisl!s, for eviction on the ground of appellant's bonafide requirements u/s 1()(3) df the
Madras Rent Control Act. The tenant contested the Jandlord's ct-aim
inter a/ia, on the ground that the appellant's claim was not bona fide,
At
the trial, the appellant examined himself, and produced voluminous documentary
evidence.
The
appellant
was·
not
cross-exan1ined.
The
appellant
and
the respondent
then
entered
into
a
compro~ise
in
which
the tenant
gave
up
all
his defences
and
was
gtven
three months'' time to vacate the premises.
A decree for eviction
was
accordingly passed by the Small Causes Court. The respondent did not
vacate the premises and when the decree was sought
to
be executed
challenged the decree of eviction principally on the ground that the Small
Causes Court had no jurisdiction to pass
a decree only in t.erms of the
compromise decree and that Court had a duty to independently satisfy itself
about the bona fide requirement of the landlord.
The High Court held
that the order of the
Small
Causes Court
was without
jurisdiction.
Allowing the appeal,
HELD : (i) The true position is that an order of evictiCJ> based on
consent of the parties is not necessarily void
if the jurisdictional fact.
namely, the existence of one or more df the .conditions mentioned in
Section 10 were shown to have existed when the Court made the order.
Satisfaction of the Court which is a pre-requisite for the order of eviction,
need not be by the manifestation borne out by judicial findings. It at some
stage, the Court was called upon to apply its mind to the question and
there was sufficient material before it before the parties in,·it-ed it to pass
an order in terms of their agreement, it is possible to postulate that the
Court was satisfied about the grounds on which the order of eviction \\'as
based. In the instant case, withdrawal of defences by the tenant expressly
amounts to the tenant admitting that the landlord has made out his case
regarding his requirement requiring the premises for his O\Vn occupation
belr.g bona fied.
[704E]
(ii) From the particular facts of this case, it can be
said that the
decree for eviction has not been solely passed on the bas'is of the com·
promise.
The evidence adduced by the respondent upto the stage
at
which the compromise was entered into, was enough to establish the land·
lord's claim.
Bahadur Singh and another v. Muni Subrat Das [1969] Z S.C.R. 432,
Kaushalya Devi v. K. L. Bansal A.I.R. 1970 S.C. 838, and Ferozi Lal v.
Manmal and Others A.I.R. 1970 S.C. 794, distinguished on facts.
692
SUPREME COURT REPORTS
[1973] 3 S.C.R.
Per Alagiriswami, J.
An eviction order based
op
a compromise
~
where the landlord has asked for possession on any one of the grounds
on the basis of which he could ask for possessio~, is valid. [708Dl
Barton v. Fincham, [1921] 2 K.B. 291,
Babu Ram Sharma v. Pal
Singh, [1959] P.L.R. 33, V~cs Dev v. Nikhiram, A.I.R. 1960 Punjab 514
cited with approval.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 447 of
1971.
Appeal by special leave from the judgment and order dated
September 15, 1970 of the Madras High Court in C.R.P. No. 797
of 1970.
M. C. Setalvad, and K. Jayaram, for the appellant.
V, M. Tarkundi:, E. C. Agarwala, A. T. M. Samptith and
M. M. L. Srivastava, for the respondent.
The Judgment of I. D. DuA and c. A. VAID!ALINGAM, JJ.
was delivered by VA!D!ALINGAM, J. A. ALAGIRISWAMI, J. gave a
separate opinion.
VAIDJALINGAM, J .-The short, question that arises for consideration in this appeal, by special leave; is whether ~
order dated
March 31, 1969, passed by the Court of Small Causes, Madras,
in H.R.C. No. 983 of 1968 directing the eviction of the respondenttenant is a nullity and as such not··executable. The facts leading
upto the passing of the order niay be stated :
The appellant was occupying a premises in Madras as a tenant
His landlady filed an application H.R.C. No. 1924 of 1967 seeking eviction of the appellant on the ground that she bona fide required the premises for her own occupation.
At that time the
suit premises No. 64, Lloyds Road, Royaspettah, Madras-14 was
advertised for sale. The appellant for purposes of his occupation
purchased the premises on October 23, 1967, as per registered
document No. 1633 of 1967 in Sub-Registrar's Office, Mylapore.
The respondent was then a tenant of the suit premises under the
vendor. After the purchase, he attorned in favour of the appellant
and has been paying rent. An eviction order was passed by consent against the appellant in H.R.C. No. 1924 of 1967 on January
27, 1968.
He was given time till January 27, 1969, to vacate
the premises, of which he was in occupation as a tenant, by virtue
of the said decree. On the same day i.e. January 27, 1968, the
appellant issued two notices to the respondent, his tenant in respect
of the suit premises, terminating tenancy ol the Respondent under
section 106 of the Transfer of Property Ac<t and calling upon him
to quit and deliver vacant possession on February 29, 1968. The
two notices were given because _of the fact that the first notice had
c
D
E
F
G
H
A
K. K. CHARI v. R. M. SESHADRI (Vaidialingam, I.)
6 93
asked for vacant possession on Fe!miary 28, 1968 and to avoid any
objection regarding the first notice probably the second notice was
also given asking for possession on February 29, 1968. In both
the noitices, the appellant had referred to the purchase of the
bungalow in question for his own occupation and also attributed
knowledge of the said purpose to the tenant. There is a reference
B
to the appellant being a tenant of premises. No. 2, Lakshmipuram,
1st street, Madras-14, and to his having no other house of his own
in the city of Madras except the suit premises. It is further stated
that in view of the fact that an eviction order against him has been
passed on January 27, 1968, in H.R.C. 1924 of 1967, the appelc
D
E
F
G
H
lallt requires his own bungalow, namely, the suit premises in the
occupation of the respondent for his own bona fide
use and
occupation.
As the respondent did not surrender possession of the premises,
the appellant filed H.R.C. No. 983 of 1968 in the court of Small
Causes, Madras, under section 10(3)(a)(i) of the Madras Buildings (Lease & Rent Control) Act, 1960 (hereinafter referred to
as the Act) . In this petition, after referring to the purchase of
the suit premises, as well as the order ol' eviction passed against
him ia H.R.C. No. 1924 of 1967, the appellant has stated that
he has no other house! of his own any where in. the city of Madras
excepting the suit premises of which the respondent is the tenant.
He has further averred that he has terminated the tenancy of the
respondent by issuing notices on January 27, 1968, and that the
tenant has not vacated the premises though he has received the
notice. There is also a reference to the fact that the respondent
is not in essential service and that the suit premises is not exempt
under section 30 of the Act. He has further stated that he requires the house for his bona fide us~ and occupation. Accordingly be prayed for eviction of the respondent and for possession
being delivered to him.
The respondent filed two counter-affidavits, one on July 19,
1968 and another on January 14, 1969. In the former he has
raised the contention that he is not a tenant of the suit premises,
either under the appellant or under the previous owner of the
premises. According to him, the tenant of the premises was and
continues to be at the relevant time M/ s. R. M. Seshadri, a partnership firm. He has further pleaded that as he was never a tenant,
the claim made by the appellant of having terminated his tc;nancy
is meaningless. Finally he has stated that the application is not
maintained against him and prayed for its being dismissed.
In
the additional counter-affidavit, the respondent pleaded that the
appellant does not require the house for his occupation and that
his claim is not bona fide. He has also controverted the claim of
the appellant that an eviction order had been passed against him
12-L76!Su!i.CI/73
694
SUPREME COURT REPORTS
[1973] 3 S,C.R,
in H.R.C. No. 1924 of 1967. In any event, the order of eviction
against the appellant is a collusive one and. ii only a devise to
evict the respondent. He further pleaded that the purchase by the
appellant itself is not lawful.
Finally he raised a contentiQn that
the tenant, M/s. R. M. Seshadri, has spent enonnous amounts on
the house acting on the assurance of its previous owner that the
house would never be sold and the tenant of the premises would
never be evicted.
Finally there is a challenge also to the notices
determining the tenancy not being in accordance with Jaw.
The enquiry before the Cour·t of Small Causes appears to have
commenced on January 16, 1969. The appellant was examined
on that day as PW 1 and his evidence appears to have spread over
till February 20, 1969. In the course of his evidence, he has
spoken to him being a tenant of a house of which one Seethalakshmi
Ammal was the landlady and to her having filed an awlication for
eviction agains't him, to his purchasing the present suit premises
on Octobier 23, 1967, for purposes of his own occupation, to the
respondent having been a tenant against the original landlord at
the time of purchase and later attorney to him, to the payment of
rent by. the respondent, subsequent to the purchase and to the
notices issued to the respondent terminating hi$ tenancy under
section I 06 of the Transfer of Property Act and requiring him
to deliver possession of the property for purposes of his occupation. He has also filed a large volume of exhibits in respect of the
matters spoken to by him before the court. He has particularly
mentioned the fact that he purchased the said house for purposes
of his occupation, as he was under orders of eviction in H.RC.
No. 1924 of 1967 and to his having no other house in the city
of Madras.
The last exhibit rthat was filed by him was Exhibit
P. 45, which was a certified copy of the order in H.R.C. 1924 of
1967, which showed that an order of eviction had been passed
against the appellant on January 27, 1968, and he was given time
till January 27, 1969, for vacating the premises. It was no doubt
a consent order. But all the exhibits filed by him clearly go to
establish that his evidence that he required the suit premises bona
fide for his own occupation, was true. The respondent had not
chosen to LTOss-examine the appellant.
On March 31, 1969, both
parties entered into a compromise in the following terms :
"MEMO OF COMPROMISE
The Respondent hereby withdraws his defence in
the aforesaid uetition and submits to a decree for eviction
unconditionally.
( 2) The Re~pondent prays that time for vacating
uo to 5th June 1969 might please be given and the Petitioner aifCCs to the aame.
B
c
D
E
F
G
II
B
c
D
E
F
H
K, K, CHARI V, R. M. SESHADRI (Vaidia/ingam, J.)
6~5
( 3) The Respondent agrees to vacate the petition
premises and hand over possession of the entire petition
premises to the petitioner on or before the said date 1·iz.
5th June 1969 without fail under any drcumstances and
undertakes not to apply for extension of time.
( 4) It is agreed by both the parties that this Memo
of Compromise is executable as a Decree of Court.
Dated at Madras, this the 31st day of March, 1969".
The compromise petition was signed by both the appellant and
the respondent as well as the advocate appearing for them
The
court, af>ter referring to the petition of the landlord.. being under
section 10(3)(a)(i) of the Act on the ground of his own <'ccupation, passed the following order :-
. "Compromise memo filed and recorded. By consent
eviction is ordered granting time to vacate till 5-6-1969.
No cost''.
The terms of compromise, which have been already set out, were
also incorporated in the order.
It will be noted that the respondent had raised substantially
the following defence to the application filed by !he appellant,
namely-
( 1) he was not a tenant of the premises and that on
the other hand, the tenant of the pre.mises was
M/s. R. M. Seshadri, a partnership firm;
'( 2) the claim of the appellant that he requires the
house for the occupation is not bona fide;
'(3) the purchase of the premises by the appellant is
not lawful;
{ 4) the tenant, M/s. R. M. Seshadri, has spent enormous amounts by way of repairs and improvements; and
( 5) the notice determining the
tenancy is not in
accordance with law.·
It was to meet the above defence and also to establish his claim
of requiring the premises bona fide for his own occupation, ·the
landlord-appellant gave the evidence and also produced about
45 exhibits. It is needless to state that the respondent, who is a
retired I.C.S. officer and an advocate, must have been fully aware
of the averments made by the landlord, the pleas raised in defence
as well as the nature of the evidence led by ihe landlord to meet
his defence. The respondent, apart from not having cross-examined the landlord, when he gave evidence, has also by the co111-
696
SUPREME COURT REPORTS
[1973] 3 s.c.R.
promise withdrawn all his defence to the application filed b(y the
landlord and submitted to a decree for eviction unconditionally.
It is with this background that one has to appr~ciate the nature of
the decree passed by the Court on March 31, 1969.
It is also seen from the records that the appellant paid a sum
of Rs. 20,000/- on March 31, 1969, to the respondent towards
the cost of repairs and improvements effected by him during his
occupation of the suit premises. On the same date, as the compromise i.e. March 31, 1969, the respondent passed a letter to the
appellant.
In this letter after referring to the compromise filed
B
in the court as well as the order passed thereon, he gave an under'
taking 'to vacate the premises on or before June 5, 1969. He also
acknowledged the receipt of the sum of Rs. 20,000/- from the·
C
landlord towards the cost of repairs and improvements.
The
respondent has also further agreed to refund the sum of Rs.
20,000 /- if he does not vacate the premises within time and he
has also further agreed to pay an additional sum of Rs. 10,000/ -
as damages. We are not concerned with this sum of Rs. 20,000/-
or the further agreement of the respondent to pay damages. The
respondent has further stated in the sai.d letter that in the event
of his failure to vacate the premises within time, the landlord is
at liberty to execute the decree of eviction without any further
notice to him.
The assurance and the undertaking given by the respondent
to abide by the compromise decree and to vacate the premisei
without raising any objection have proved to be of no avail, as will
be seen from the events that followed. When the time lor delivery
of property was drawing near, the respondent's son, one S. M.
Sundararn, filed a suit in the City Civil Court, Madras, for a declaration that the purchase by the appellant of the suit property
was void. The son also obtained an mterim injunction against the
appellant from executing the order of eviction passed in H.R.C.
No. 983 of 1968 and disturbing his possession. The suit was
tried on merits and was ultimately dismiSsed by the City CiV11 Court
on December 12, 1969 with costs of the appellant. According to
the appellant, this .suit was engineered by the respondent himself
in order to put off his eviction ftom the suit property.
After the dismissal of the above suit, the appellant filed Execution Petition No. 953 of 1969 in the City Civil Court, Madras
(which was the competent Court for purposes of execution) to
execute the order of eviction against the respondent in H.R.C.
No. 983 of 1968. The respondent filed B. A. No. 1314 of 1969
objecting to the execution of the decree on the ground that it was
a null,ity and inexecutable; and as such he prayed for the warrant
of possession issued in Execution Petition to be recalled and to
dismis.s the Execution Petition itself., His main plea in this apptt.
D
F
G
H
• •
•

A
(
n
c
K. K. CHARI v. R. M. SE_SHADRI (Vaidialingam, /.)
697
cation was that the decree sought to ~~.executed was one based·
on comproinise or consent without the Rent Control Court having
satisfied itself by an independent consideration regarding the bona
fide requirement of the property by the landlord for his own occu- ·
pation; and as such the decree contravened section 10 of the Act.
· This application was opposed by the appellant in a lengthy counteraffidavrt.
In this counter-affidavit, the landlord, after referring
to the various items of evidence adduced before . the court, which
have been referred to earlier, has stated that it was when· the respondent found that the pleas raised by him could not be sustained
nnd that the landlord's case was true that he unconditionally
withdrew his defence and submitted to a decree. . He has further .
pleaded that the decree sought to be executed does noi suffer any
infirmity.
·
The learned City Civil Judge b\y his order dated March 18,
1970, over-ruled the objections· raised 1:zy the respondent and dis- .
missed E. A. No: 1314 of 1969 and gave time to the respondent ·
till April20,' 1970, to vacate and deliver the possession! of the
D :property. : The respondent carried the matter to the High Court in
Civil Revision Petition No. 797 of 1970. The High Court by its
judgment and· oroer dated September 15,· 1970, has reversed the, ·
urder. of the City Civil Court and accepted the contentions of
the respondent. · The learned Judge has held that the decree for
eviction dated March 31; 1969, is solely passed on the basis of the
E
compromise and the Rent Controller has· not applied his mind to
satisfy' himself whether the bona: fide requirement of the landlord
has been established. It is the further view of ·the High Court
that even if ·there was enough· material before the Rent Control
Court, when· it passed the' order' of eviction by consent, the decr.-e
will, nevertheless, be void· so long as the Rent Controller has not.
F
given his dedsion regarding the requirement of the landlord being
bona fide.· .. On this line of reasoning, the learned Judge held that
the eviC'lion order is ·a nullity and is·not executable.''" · ·
•
•'
,
-
'•
•
'_'
•'
I
'• •
Mr. M~ c.· Setalvad, learned counsel for the appellant; has
urged that the High Court has misunderstood and. mis-interpreted
the decisions ·of this Court b~aring on the point. · · He pointed out
J:;
that the appellant had specifically pleaded that· he required the
house bona fide for his own occupation, which is one of the circumstances under which a landlord can claim eviction of the tenant
under the Act.
The circumstances under which the house was
:required by him were also' spoken to by the landlord when he gave
evidence and he sought supp9rt by filing as niany. as forty-five
H
exhibits before the court. The respondent had denied the plea of
the landlord in his counter-affidavit. Nevertheless, when the entire evidence was placed before the . court by tli landlord, the
tenant did not choose to c'ross-examine him, as he· must have felt
698
SUPREME COURT REPORTS
(1973] 3 S.C.R.
that 1he landlord's claim would be accepted by the court and his
defence rejected.
It was under ilhose circumstances that the respondent unconditionally withdrew his defence and submitted to
a decree for eviction.
That conduct of the respondent clearly
establi~hes that he has accepted as true the claim of the landlord
that be bona fide required the premises for his own use and· occupation. The materials on record also show that the court was satisfied
atput the bona fide
requirement of the landlord and hence it
accep1ed the compromise and made it a decree of court. Under
those circumstances, the counsel contended that it cannot hS said
that" the decree is one passed only on the basis of the compromise
so as to rriake it void.
Mr. Tarkunde, learned counsel for the respondent, urged that
the de~ree for evictioh has been passed exclusively on the basis
of the compromise entered into by the parties. There is no indication that the court at any stage applied its mind and satisfied itself
regarding the premises being required by the landlord bona fide
for his own occupation. The relevant provision of the Act, the
counsel pointed out, is quite, clear and it makes it mandatory that
the court must apply its mind and satisfy itself that the claim for
eviction falls within one or other of the provisions which enables
· a landlord to get possession.
He further pointed out that if the·
satisfaction _of the court is not expressed in the decree, the executing Court has no option but to hold that the same is void. as
laid down by this Court, and it cannot go into the question whether
from the
materials on record the Rent Control Court was
satisfied or not.
Such an enquiry,
it is pointed out,
will
be asking the executing Court also to go into the question wheth~ -
the landlord has made out a case for eviction-a question which
· falls within the exclusive jurisdiction of the Rent Control Court.
Mr. Tarkunde finally pointed out that the decision of the High
Court holding that the decree in question is void is correct, as it is
in accordan~e with the decisions of this Court.
It is now necessary to refer to the material Provisions of the
Act. Section 10 deals with eviction of tenants .. T.he relevant part
of section 10, necessary for our purpose, is as follows :-
Eviction of tenants. "10( 1) A tenant shall not be
evicted whether in execution of a decree or otherwise except in accordance with the provisions of this section or
~ctions 14 to 16 :
x
x
x
x
x
2 (a) A landlord may, subject to the provisions of
clause ( d), apply to the Controller for an order directB
c
D
'
~
r-
•
G
'
H
B
c
D
E
F
K. K. CHARI v. R. M. SESHADR! (Vaidialingam, J.)
699
ing the tenant to put the landlord in possession of the
building-
'
(i) in case it is a residential building if the landlord requires it for his own occupation or for the occupation of his son and if he or his son is not occupying a
residential building of his own in the city, town or village
concerned;
x
x
x
x
x
(a) The Controller shall, if he is satisfied that the
claim of the landlord in 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 :
x
x
x
x
x
Provided further that 'the Controller may give the
tenant a reasonable time for putting the landlord in possession of the building and may extend such time so as
not to exceed three months in the aggregate."
. Section 10 (1) places an embargo on the right of a landlord
to get a tenant evicted except in accordance with the provisions
of that section or sections 14 to 16. We are not concerned with
sections 14 to 16 in this case.
Sub-section 2 enumerates certain
circumstances under which a
landlord can ask for eviction.
We are not also concerned with that provision.
Sub-section 3
again enumerates certain other circumstances under which a landlord, subject to the provisions of clause ( d) , can ask for possession
of' the building from the tenant. It is accepted by both parties
that clause ( d) has no application.
Sub-clause ( i), which deals
witla a residential building, enables a landlord to ask for possession
of a building in the circumstances mentioned therein.
Under subclause ( e) , if the Controller is satisfied that the claim of the landlord
is bona fide he may pass an order of eviction.
In this case, the landlord has asked for· eviction on the ground
that he requires the premises for his own occuoation. The ConG
troller can pass an order in his favour only if he is satisfied that
his claim is bona fide.
The statute says so and that has to be given
full effect.
The question is whether in the case before us, it can
be stated that the Controller was so satisfied when he passed the
order of eviction on March 31, 1969.
Our attention has been drawn to certain English decisions
rendered under the Rent Restrictions Aot, wherein it has b~n held
that though the court has jurisdiction to order possession in favour
of a landlord only on one or other of the
~pecified statutory
700
SUPREME COURT REPORTS
[1973] 3 S.C.R.
grounds, the court may act on an admission made by a tenant in
that behalf and pass an order of eviction without being obliged
to hear a case out. It is not· ·necessary for us to refer to those
decisions as, in our opinion, the case on hand will have to be
decided in accordance with the .principles laid down by this Court.
111ere are three decisions of this Court which require to be
considered.
In Bahadur Singh & Anr. v. Muni Subrat Dass &
Anr., (') a decree for eviction passed on the basis of a compromise
between the parties, was held, by this Court, to be a nullity as
contravening section 13 (1) of the Delhi and Ajmer Rent Control
Act, 1952. The facts therein were as follows :-
The tenant and the son of the landlord referred the disputes
between them to arbiitration. The landlord was not a party to
this agreement. The arbitrators passed an award whereunder the
tenant was to give vacant possession of the premises in favour of
the landlord within a particular time.
This award was made a
decree of court.
The landlord, who· was neither a party to the
award nor to the proceedings, which resulted in the award being
made a decree of court, applied for eviction of the tenant on the
basis of the award.
The tenant resisted execution by raising
various objections under section 4 7 of the Code of Civil Procedure.
One of the objections, was that the decree. for eviction
based upon the award was a nullity as being opposed to the Delhi
and Ajmer Rent Control Act, 1952.
This Court held that the
decree directing the tenant to deliver possession of the premises to
the landlord was a nullity, as it was passed in contravention of
section 13 ( 1) of the relevant statute.
After quoting the subsection, this Court further held that the decree for eviction passed
according to an award, in a proceeding to which the landlord
was not a· party, and wrtholl't the court satisfying itself that a
statutory ground of eviction existed, was a nullity and cannot be
enforced in execution. It will be seen from this decision that
the decree was held to be a nullity biecause the landlord was not
a party thereto, and also because the court had not satisfied itself
that a ground for eviction, as required by the statute, existed.
This decision is certainly an authority for the proposition that a
court ordering eviction has to satisfy itself !hat a statutory ground
of eviction has been made out by a landlord. How exactly that
satisfaction is to be expressed by the court or gathered from the
materials, has not been laid down in this decision, as this Court
was not faced with such a problem.
Jn Kaushalya Devi & Ors. v. Shri K. L. Bansal,(') the question again arose under the same Delhi statute regarding the validity
(I) [1969] 2 S.C.R. 432.
(2) [1969] 2 S.C.R. 1048.
A
B
c
D
E
F
G
H
'
A
B
K. K. CHARI V, R. M. SESHADRI (Vaidialingam, J.'I
701
of a decree passed for eviction on compromise.
The plaintiff
therein filed a suit for eviction of the tenant on two grounds :-
(a) the premises were required for their own use; and
(b) the tenant had committed default in payment of
reni.
The tenant filed a.written statement denying both these allegations.
He disputed the claim or' the landlord regarding his requiring the
premises for his own use bona fide and also the fact of his being
in arrears.
When the pleadings of the landlord and the tenant
were in this state, both parties filed a compromise memo in and
c by which they agreed to the passing of. a decree of eviction against
the tenant. Representations to the same effect were also made by
the counsel for both parties.
The court passed the following
order:-
D
"In view of the statement of the parties' counsel and
the written compromise, a decree is passed in favour of
the plaintiff against the defendant".
The tenant did not vacate the premises within the time mentioned
as per the compromise memo.
On the other hand, he filed an
application under section 47, Civil Procedure Code, pleading that
the decree is void as being in contravention of section 13 of the
E
Delhi statute. The High Court held that the decree was a nullity,
as the order was passed solely on the basis of the compromise
without indicating that any of the statutory grounds mentioned in
section 13 existed. Following the decision in Bahadur Singh &
Anr.,(1) this Court upheld the order of the High Court. Here
again, it will be seen that the manner in which the court's satisF faction is to be expressed or gathered has not been dealt with.
A similar question came up again before this Court in Ferozi
Lal Jain v. Man Mal & Anr.(') The landlord filed an application for eviction of the tenant on the ground that he had sublet
the premises without obtaining his consent in writing. Subletting,
without the consent of the landlord in writing, was one of the
G
grounds under section 13 ( 1 ) of the Delhi statute entitling a landlord to ask for eviction. The tenant denied the allegation that be
had sublet the premises. B.oth the landlord and the tenant ·entered
into a COJllllromise and the court, after recording the same, passed
the following order :-
H
"As per compromise, decree for ejectment and for
Rs. 165 /- with proportionate costs is ,passed in favour of
the plaintiff and against the defendant. The parties
(I) [1969] 2 S.C.R. 43".
CZ) A.T.R. 1970 S.C.794 .
•
702
SUPREME COURT REPORTS
[1973] 3 s.c:R.
shall be bound by the terms of the compromise. The
terms of the compromise be incorporated in the decreesheet. ......... "
As 'lhe tenant did not surrender possession of ihe properties within
the time mentioned in the compromise memo. t!Ie landlord levied
execution. It was resisted by the tenant on various grounds one
of which was that the decree for eviction was a nullity, being in
contravention of section 13 of the Delhf statute. This contention
was accepted by the execution Court, as well as by the High Court.
This Court, alter a reference to the provisions of section 13, held
that a decree for recovery of possession can be passed only if the
court concerned is satisfied that one or other Of 'lhe grounds mentioned in the section is established. This Court, further observed :
"From ihe facts mentioned earlier, it is seen 'lhat at
no stage, the Court was called upon to apply its mind to
the question whether the alleged subletting is true or not.
Order made by it does not show that it was satisfied that
the subletting· complained of has taken
place, nor is
there any other material on record to. show that it was
so satisfied. It is clear from the record that the court
had proceeded solely on the basis of the compromise
arrived at between the parties. That hieing so there can
be hardly any doubt 'lhat the court was not competent
to pass the impugned decree. . Hence the decree under
execution must be held to be a nullity".
Reference was also made to the two earlier decisions holding
such decrees to be void. It is significant to note that this Court
in the last mentioned decision referred to the facts leading upto
the compromise decree, namely, the basis of the Claim of the landlord, the denial by the tenant and both of them filing a memo of
compromise without any reference to the plea of subletting made
by the landlord. In the said decision this Court haS held that the
compromise decree is void, as there could have been no satisfaction of this Court regarding the statutory requirement in view .of
the following three circumstances :-
(I) At no stage the Court was called upon to apply
itS mind to the question whether .the plea of subletting is tiue or not.
( 2) The order made !:ti' the Court does not show that
it was satisfied that the subletting complained of
has taken place.
( 3) There was no other material on record to show
that the court was so satisfied.
B
c
D
E
F
I
G
B
)
{
• •
•
I
\
•
"
A
n
c
D
E
F
K .. K. CHARI .v. R. M. SESHADRI (Vaidia/ingam, J.)
703'
The view of this Court further k that the decree for eviction has
been passed solely on the basis of the compromise arrived at between the parties.
·
In the last decision, in our opinion, there is an indication as tCY
how the satisfaction of a court can be expressed or gathered irr a
particular case. If a stage had been reached in a particular proceeding for a court to apply its mind regarding the existence of a
·satutory condition, it may be held that it was so· satisfied .about
the plea of the landlord. Again from other material on record,
it can be inferred that the court was so satisfied.
We are not inclined to accept the contention of Mr. Tarkunde·
that the decree for eviction in the case before. us has been passed
solely on. the basis of the
compromise arrived at : bet\veen the
parties. No dout~ a .. reading of the order of die. court dated
March 31, 1969, isolaied from all other circumstances, may give
the impressio·n that the decree for eviction is passed because of
the compromise between the parties. . It is no doubt true that the
order on the face of it does not show that the court has expressed
its satisf:iction that• the requirement of the landlord is bona fide.
Jf the court had expressed its satisfaction in the order itself, that
will conclude the matter. That the court was so· satisfied can also
be considered from the point· of view whether a stage had beerr
reached in the proceedings for the court to apply its mind to the
relevant question? Other materials on record can also .be taken
into account to find out if the court was so satisfied. The High
Court has proceeded on the basis that even if there was materiaf
before the court, when it passed the order of eviction by. consent,
from which it can be shown that the court was satisfied about the
requirement of the landlord being bona fide, nevertheless such an
order will be a. nullity unless the Rent Controller has given his
decision in favour of the landlord. In our opinion, . this view i"
.erroneous.
We have very exhaustively referred to the plea of the landlord
as well as the evidence let in by him regarding his requiring the
building bona fide for his own occupation. There is no contto~
versy that if such a plea is established, an order of eviction of the
G
tenant can be obtained by the landlord under section 10 of the Act.
The respondent no doubt at the initial stage denied the claim of
the landlord. . The landlord gave evidence on various matters
with particular reference to his requiring the house bona fide for
his own occupation. · He had also filed, as referre.d by us earlier,
as many as 45 exhibits, one of which was the order of eviction
H
·obtained against him, being Ext. 45. The respondent did not
cross-examine the appellant. When the· evidence of the landlord
was before the court supported, as it was, bv the innumerable
exhibits filed by him, it can surely be stated that a stage had been
'
·~
' 704
SUPREME COURT REPORTS
[1973} 3 S.C.R.
~
.
readied when the Controller was called upon to apply his mind tri
the question whether the plea of the landlord that he required the
\ premises for his own occupation was bona fide.
There is
the
further circumstance that the tenant did not cross-examine the
plaintiff. On the other hand, he entered into a compromise in
..._and by which he withdrew his defence and suljmitted to a decree
·f for eviction unconditionally. His withdrawal of the defence, after
& the plaintiff had given evidence and filed exhibits in support of
,., his plea, clearly shows that he accepted as true the. claim of the
.{~landlord that he requires the premises bona fide fqr his own occupa-
)"S:1ion. He has accepted the position that the landlord has made
[-.,, 'out the statutory requirement, entitling hini to ask for possession
'·
of the premises. It is this unconditional withdrawal of the defence
A
B
c
regarding the statll'lory condition pleaded by the landlord, :md the
compromise following it, that was accepted by the court aud a
·decree for eviction passed thereon.
Under those circumstances,
when the tenant has accepted the plea of the Jandlordr in our
opinion, it is futile to hold that the Rent Controller must- again
embark upon an enquiry regarding the requirement of the land-
. 0
lord being bona fide and adjudicate upon the s·ame.
Of course,
if there is a dispute between the landlord and tenant, the court
must.decide the matter and adjudicate upon the plea of the fondJord.
The true position appears to be that an order of eviction based
on consent of. the parties is not necessarily void if the jurisdictional
fact viz. the existence of one or more of the conditions mentioned
in section 10 were shown to have existed when the Court made
the order.
Satisfaction of the Court, which is no doubt a pre-
<_ requisite for the order of eviction, need not be by the manifestation
•borne out by a judicial finding. If at some stage the Court was
'called upon to apply its mind to the question and there was suffi-
: 1 cient material before it, before the parties invited it to pass an
order in terms· of their agreement, it is possible to postulate that
the Court was satisfied about the grounds on which the order of
eviction was based.
It is no doubt true that before making an order Jor po;;ession
the court is under a duty to satisfy itself as to the truth of the
landlord's claim, if there is a dispute between the landlord and
tenant. But if the tenant in.fact admits that the landlord is entitleQ, to possession on one or other of the statutory ground, mentioned in the Act, it is open to the court to· act on that admission
and make an order for possession in favour of the landlord without
further enquiry. It is no doubt true that each case will have to
be decided on its own facts to find out whether there is any material
to justify an inference that an admission, express oi implied. has
been made by the tenant about the existence of one-or other of the
E
F
(.
II
A
B
c
D
G
H
K. K. CHAR! v. R. M. SESHADR! (Vaidialingam, J.)
705
statutory grounds.
But in the case on hand, we have already
referred to the specific claim of the landlord as well as the fact
nf. the tenant withdrawing his defence.
According to us, such
withdrawal of the defence expressly amounts to the tenant admitting that the landlord has made out his case regarding his requiring
the premises for his own occupation being bona fide. In the three
decisions of this Court, to which we have already referred, the
position wa~ entirely different.
In none of those cases was there
any material to show that the tenant had expressly or impliedly
accepted the plea of the landlord as true.
Therefore those decisions do not assist the respondent-tenant.
For all the reasons mentioned above, it· cannot be held, in the
particular circumstances of this case, that the decree for eviction
has been passed solely on the basis of the compromise entered
'into between the parties.
On the other hand, it is clear from
the various matters Teferred to, that the court was satisfied about
the bona fide requirement of the landlord.
Therefore, the decree
for eviction is neither void nor inexecutable.
Mr.