Tags Tenancy

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1546 of 2017, Judgment Date: Feb 07, 2017

It is a settled principle of law that while considering the  grant  of
leave  to  contest  the  eviction  proceedings  under  the  Rent  Laws,  the
Authority/Court is not expected to examine the merits and  demerits  of  the
grounds raised in the application for grant of leave to contest and  if  the
Authority/Court finds  that  the  grounds  raised  prima  facie  disclose  a
defence which, if accepted, may result  in  non-suiting  the  landlord  from
claiming eviction,  the tenant is entitled to obtain leave  to  contest  the
eviction proceedings on merits. In this case, we find that  the  appellants-
tenant have made out such grounds and are, therefore, entitled for grant  of
leave to contest the eviction proceedings filed by respondent  No.1  against
them on merits.

                                                           REPORTABLE
                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL No.1546 OF 2017
                   (Arising out of SLP (C) No.23890/2014)

Vijay Kumar Ahluwalia & Ors.                                  ….Appellant(s)

                                   VERSUS

Bishan Chand Maheshwari & Anr.                                …Respondent(s)

                               J U D G M E N T
Abhay Manohar Sapre, J.
1)    Leave granted.
2)    This appeal is filed  against  the  final  judgment  and  order  dated
04.08.2014 passed by the High Court of Delhi at New Delhi in RCR No.  76  of
2013 whereby the High Court dismissed the revision filed by  the  appellants
herein  against  the  judgment  dated  13.08.2012  of  the  Additional  Rent
Controller, Delhi by which the leave to contest  the  application  filed  by
the appellants-tenant has been dismissed and  the  eviction  petition  under
Section 14(1)(e) of the Delhi Rent Control Act, 1958  (hereinafter  referred
to as “the Act”) filed by respondent No.1  was decreed.
3)    We herein set out  the  facts,  in  brief,  to  appreciate  the  issue
involved in this appeal.
4)    One Miri Mal was the owner of the shop situated on  the  ground  floor
of property bearing  No.  1548/V,  Nai  Sarak,  Delhi-110  006  (hereinafter
referred to as “the suit shop”). Miri Mal let out the suit shop to  one  Ram
Prakash in 1944 on monthly rent of ‘Ek Ana’. Miri Mal died in  1974  leaving
behind his widow-Smt. Ram Piari, who became the owner/landlady of  the  suit
shop by inheritance.  After  the  death  of  Miri  Lal,  Ram  Piari  started
collecting rent from Ram Prakash.   Ram Prakash died in 1989 leaving  behind
his son (appellant herein). Smt. Ram Piari died issueless in 1994.
5)    Almost after 17 years of the death of Smt. Ram Piari,  on  28.07.2011,
Respondent No.1 herein claiming to be the adopted son of Miri Mal  and  Smt.
Ram Piari, filed an application  under  Section  14(1)(e)  of   Act  seeking
appellants’  eviction  from  the  suit  shop  being  Case  No.   E-167/2011.
Respondent No.1 sought eviction, inter alia, on the ground that  he  is  the
adopted son of Miri Mal and Smt. Ram Piari, therefore, became the owner  and
landlord  of  the  suit  shop  on  their  death  as  their  adopted  son  by
inheritance.  Respondent No.1 sought eviction on  the  ground  of  his  bona
fide need to start a business in the suit shop.
6)    In order to prove his ownership over the suit  shop,  respondent  No.1
filed some documents which  included  one  adoption  deed  dated  14.03.1978
alleged to have been executed by Smt. Ram Piari.
7)    The appellants, on receipt of the summons of  the  application,  filed
an application with an affidavit under Section 25B(4) of the Act by  raising
grounds therein and  sought  leave  to  contest  the  application  filed  by
respondent No.1 for eviction. Since the issue relating to the  ownership  of
respondent No.1 over the  suit  shop,  on  the  strength  of  adoption  deed
surfaced for the first time in these  proceedings,  the  appellants  in  his
leave to contest the application denied the  ownership  of  respondent  No.1
over the suit shop so also the relationship of landlord and  tenant  between
them. The appellants also denied the bona fide need  set  up  by  respondent
No.1 contending, inter alia, that alternative suitable accommodation in  the
building in question is available to respondent No.1  on  other  floors  and
hence the plea of bona fide need is not genuine. These were essentially  the
grounds on which the appellants sought leave to contest the  application  on
merits.
8)    Respondent No.1 denied the averments made by  the  appellants  in  the
application for leave to contest.  The appellants then filed  rejoinder  and
reiterated their grounds already taken  in  the  application  for  leave  to
contest.
9)    By order dated 13.08.2012, the Additional  Rent  Controller  dismissed
the application filed by the appellants for leave to contest and  passed  an
eviction order against the appellants from the suit shop.
10)   Felt aggrieved by  the  said  order,  the  appellants  filed  revision
before the High Court. By  impugned  judgment  dated  04.08.2014,  the  High
Court dismissed the revision.
11)   Challenging the order of the High Court, the  appellants   have  filed
this appeal by way of special leave before this Court.
12)   Heard Mr. Nikunj Dayal, learned counsel for the appellants and Mr.  S.
Gurukrishna Kumar, learned senior counsel for respondent  No.1.   Respondent
No.2 refused to acknowledge the receipt of the service of notice  issued  to
him under registered cover.  This refusal on the part of respondent No.2  is
deemed as proper service.
13)   Learned counsel  for  the  appellants  (tenant)  while  assailing  the
legality and correctness of the  impugned  order  contended  that  the  Rent
Controlling  Authority  and  the  High  Court  erred   in   dismissing   the
appellants’ application for leave to contest the eviction application  filed
by respondent No.1. It was his submission that keeping in view  the  grounds
raised by the appellants in  the  application,  especially,  three  grounds,
namely, first, relating to ownership of respondent No.1 over the suit  shop,
second, the existence of the relationship of  landlord  and  tenant  between
them and, third, the availability of alternative suitable  accommodation  in
the same building for accomplishing the need, prima facie, a  case  is  made
out to contest the respondent No,1’s application  for  eviction  on  merits.
The Rent Controlling Authority and the High Court  should  have,  therefore,
granted leave to contest respondent No.1’s application on  merits  on  these
grounds.
14)   In reply, learned senior counsel for  respondent  No.1  supported  the
impugned order and contended that no case is made out to  interfere  in  the
impugned order which,  according  to  him,  is  based  on  proper  reasoning
calling no interference in this appeal.
15)   Having heard the learned counsel for the parties  and  on  perusal  of
the record of the case, we find force in  the  submissions  of  the  learned
counsel for the appellants.
16)   The short question, which arises for consideration in this appeal,  is
whether the Courts below were justified in rejecting the  application  filed
by the appellants under Section 25B(4) of the Act  for  grant  of  leave  to
contest the eviction  proceedings  filed  by  respondent  No.1  against  the
appellants under Section 14 (e) of the Act on merits?
17)   In our considered opinion, the application  filed  by  the  appellants
under Section 25B(4) of the  Act  seeking  leave  to  contest  the  eviction
application of respondent No.1  should  have  been  allowed  to  enable  the
appellants (tenant) to contest the eviction application on  its  merits.  In
other words,  keeping in view the grounds raised by the appellants,  we  are
of the  opinion  that  a  prima  facie  case  was  made  out  entitling  the
appellants to contest the application of  respondent  No.1  on  merits.  The
grounds raised by the appellants, if accepted, could result in dismissal  of
respondent No.1’s eviction application thereby  disentitling  him  to  claim
appellants’ eviction from the suit shop.
18)   We find that the ground relating to proof of ownership  of  respondent
No.1 over the suit shop, which was based on the alleged  adoption  deed  set
up by him, for the first time, after 17 years coupled  with  the  ground  in
relation to devolution of tenancy between the parties  after  the  death  of
Smt. Ram Piari and lastly,  the  ground  relating  to  bona  fide  need  and
availability of the  alternative  accommodation  did  disclose  prima  facie
facts within the meaning of sub-sections 4 and 5 of Section 25B of  the  Act
to contest the eviction application of respondent No.1 on merits.
19)   It is,  inter  alia,  for  the  reasons,  though  prima  facie,  that,
firstly, the appellants had not attorned to respondent No.1 as the owner  of
the suit shop and, in turn, his status as landlord; Secondly, there  was  no
evidence to prove the existence  of  relationship  of  landlord  and  tenant
between the parties; and  Thirdly,  specific  averments  were  made  by  the
appellants to show availability of alternative accommodation to satisfy  the
need of respondent No.1, if it really existed.
20)   The aforesaid grounds, in  our  view,  were  sufficient  for  granting
leave to the appellants to contest the eviction  application  of  respondent
No.1 on merits.
21)   It is a settled principle of law that while considering the  grant  of
leave  to  contest  the  eviction  proceedings  under  the  Rent  Laws,  the
Authority/Court is not expected to examine the merits and  demerits  of  the
grounds raised in the application for grant of leave to contest and  if  the
Authority/Court finds  that  the  grounds  raised  prima  facie  disclose  a
defence which, if accepted, may result  in  non-suiting  the  landlord  from
claiming eviction,  the tenant is entitled to obtain leave  to  contest  the
eviction proceedings on merits. In this case, we find that  the  appellants-
tenant have made out such grounds and are, therefore, entitled for grant  of
leave to contest the eviction proceedings filed by respondent  No.1  against
them on merits.
22)   In the light of foregoing discussion, we are  unable  to  concur  with
the reasoning  and  the  conclusion  arrived  at  by  the  Rent  Controlling
Authority and the High Court.
23)   As a result, the appeal  succeeds  and  is  accordingly  allowed.  The
impugned judgment and the order passed by the  Additional  Rent  Controlling
Authority dated 13.08.2012 in  E-167/2011  (Annexure-P-6  of  SLP)  are  set
aside. As a consequence thereof, the application  filed  by  the  appellants
under Section 25B(4) of the Act dated 29.08.2011 (Annexure P-3  of  SLP)  is
allowed. The appellants-tenant are granted leave to contest the  application
filed by respondent No.1 under Section 14 of the Act on merits.
24)   The eviction case filed by respondent No.1 being Case  No.  E-167/2011
out of which this appeal arises is  accordingly  restored  to  its  original
file before the Additional Rent Controlling Authority for  its  disposal  on
merits in accordance with law.
25)   The appellants are directed to deposit  the  entire  arrears  of  rent
payable from the date of application filed  by  respondent  No.1  for  their
eviction and continue to deposit the monthly rent on or before 15th of  each
month at the rate determined by the High Court till final orders are  passed
by  the  Rent  Controlling  Authority.   Failure  to  deposit  the   arrears
including monthly rent, as directed  herein,  would  result  in  refusal  to
contest the eviction proceedings.
26)   Let the arrears be deposited within  one  month.  Depending  upon  the
result of the final order, appropriate orders for payment of rent  deposited
be passed.
27)   Before parting with the case, we consider it apposite to mention  that
we have not expressed any opinion on the merits of  the  grounds  raised  by
the parties. The Rent Controlling Authority  would,  therefore,  decide  the
case on merits strictly in accordance with law without being  influenced  by
any of our observations made in this order.
28)   Since the matter relates to eviction, we direct the  Rent  Controlling
Authority to decide the same expeditiously.

                                     ………...................................J.
                                                            [J. CHELAMESWAR]


                                   …...……..................................J.
                                                       [ABHAY MANOHAR SAPRE]
      New Delhi;
February 07, 2017
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