Full Judgment Text
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PETITIONER:
BEGA BEGUM AND ORS.
Vs.
RESPONDENT:
ABDUL AHAD KHAN AND ORS.
DATE OF JUDGMENT06/10/1978
BENCH:
FAZALALI, SYED MURTAZA
BENCH:
FAZALALI, SYED MURTAZA
SHINGAL, P.N.
CITATION:
1979 AIR 272 1979 SCR (2) 1
1979 SCC (1) 273
CITATOR INFO :
E 1980 SC 161 (16)
R 1982 SC1518 (9)
E 1991 SC 266 (7,8)
RF 1991 SC1760 (26)
ACT:
Jammu and Kashmir Houses and Shops Rent Control Act,
1966, Section 11(h)-Meaning of the words "reasonable
requirement" ant "own occupation" in Section 11(h)-Balance
of convenience in cases of eviction, explained-Constitution
of India, 1950, Art. 136, interference by Supreme Court with
concurrent findings of Courts below.
HEADNOTE:
The appellants-plaintiffs sought the eviction of the
respondents-defendants from the suit premises which was
leased to the latter for a period of ten years only and for
running a hotel, on the grounds (a) of personal requirement
to run a hotel business themselves and (b) of the failure of
the respondents to deliver possession after the expiry of
the period of lease despite notices issued. The Trial Court
and the High Court in appeal having dismissed the suit, the
appellants obtained special leave of this Court.
Allowing the appeal, the Court
^
HELD : 1. The Jammu and Kashmir Houses and Shops Rent
Control Act, 1966 is a piece of social legislation aimed at
easing the problem of accommodation, protecting the tenants
from evictions inspired by profit hunting motives and
providing certain safeguards for the tenants and saving them
from great expense, inconvenience and trouble. But the Act
does not completely overlook the interest of the landlord
and has under certain conditions granted a clear right to
the landlord to seek eviction on proof of the grounds
mentioned in section 1. Of the Act. Thus, the Act appears to
have struck a just balance between the genuine need of the
landlord on the one ’land and great inconvenience and
trouble which may be caused to the tenants on the other. In
the instant case. the defendants had taken the property on
lease only for a period of I O years and now they have been
in prossession of the same for over 30 years. If the
plaintiffs found that their present business had become dull
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and was not yielding sufficient income to maintain
themselves and therefore, it was necessary to occupy the
house so as to run a hotel business, it cannot by any
stretch of imagination be said that the plaintiffs had
merely a desire rather than a bonafide need for evicting the
tenants. The findings of the High court that the plaintiffs
had not proved that they had a bonafide need for occupation
of the building in dispute is incorrect. [7E-H, 8A]
2. Section 11(h) of the Act uses the words ’reasonable
requirement’ which undoubtedly postulate that there must be
an element of need as opposed to a mere desire or wish. The
distinction between desire and need should doubtless be kept
in mind but not so as to make even the genuine need as
nothing but a desire as the High Court has done in this
case. The connotation of the term ’need’ or ’requirement’
should not be artificially extended nor its language so
unduly stretched or strained as to make it impossible or
extremely difficult for the landlord lo get a decree for
eviction. Such a course would defeat the very pur-
2
pose of the Act which affords The facility of eviction of
the tenant to the landlord on certain specified grounds.
’This is the general scheme of all the Rent Control Acts,
prevalent in other States in the country. The word
"requirement" merely connotes that there should be an
element of need. In such cases the main test should be
whether it was necessary for the landlords t() need the
premises for their own use or occupation. [8A-D, F]
In the instant case, the plaintiffs had proved that The
requirement for the house for starting a hotel business was
both genuine and reasonable and even imperative, because the
scanty income of the plaintiffs was not sufficient to
maintain them or to afford them a decent or comfortable
living. [9A-B]
Phiroze Ramanji Desai v. Chandrakant N. Patel and Ors
[1974] 1 SCC 661; applied.
B. Baliah v Chandoor Lachaiah, A.I.R. 1965 A.P. 435
(D.B.) approved.
3. The words "own occupation" in S. ll(h) cannot be so
narrowly interpreted as to indicate actual physical
possession of the landlord personally and nothing short of
that. The provision in S. ll(h) of the Act is meant for the
benefit of the landlord and, therefore, it must be so
construed as to advance the object of the Act. The word
’occupation’ does not exclude the possibility of the
landlord starting a business or running a hotel in the shop
which also would amount to personal occupation by the
landlord. The section contemplates the actual possession of
the landlord, whether for his own residence or for his
business. It is manifest that even, if the landlord is
running a hotel in the house, he is undoubtedly in
possession or occupation of the house in the legal sense of
the term. Furthermore, the section is wide enough/to include
the necessity of not only the landlord but also of the
persons who are living with him as members of the same
family. [9G-H, 10A and D]
In the instant case there can be no manner of doubt
that the house was required for the personal residence or
occupation of all the three plaintiffs who admittedly were
the owners of the house. The fact that the plaintiffs wanted
to occupy the property for running hotel would not take
their case out of the ambit of personal necessity and the
occupation of a house may be required by the owner for
personal purposes. He may choose to reside himself in the
house or run a business in the house or use it as a paying
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guest house and derive income therefrom. In all these cases
even though the owner may not physically reside in the
house, the house in law would nevertheless be deemed to be
in actual occupation of the owners. [10A-C]
4. (a) In deciding the aspect of balance of convenience
of the parties in an eviction suit each party has to prove
its relative advantages or disadvantages and the entire onus
cannot be thrown on the plaintiffs to prove that lesser
disadvantages will be suffered by the defendants and that
they were remediable. [10H, 11A]
(b) It is no doubt true that the tenant will have to be
ousted from the house if a decree for eviction is passed,
but such an event would happen when ever a decree for
eviction is passed and was fully in contemplation of the
legislature when section ll(l)(h) of the Act was introduced
in the Act. This by itself would not be a valid ground for
refusing the plaintiffs a decree for eviction. [10F-G]
3
M/s. Central Tobacco Co. v. Chandra Prakash, Civil
Appeal No. 1175/69 [SC] dated 23-4-1969 and Phiroze Ramanji
Desai v. Chandrakant N. Patel and Ors. [1974] I S.C.C. 661;
referred to.
Kelley v. Goodwin, [1947] All E.R. P. 810; quoted with
approval;
K Parasuramaiah v Pokuri Lakshmamma AIR 1965 A.P. 220
approved.
(c) Being the owners of the house they cannot be denied
eviction and be compelled to live below the poverty line
merely to enable the respondents to carry on their
flourishing hotel business, at the cost of the appellants.
This shows the great prejudice that will be caused to the
plaintiffs if their suit is dismissed. The plaintiffs have
already produced material before the court to show that
their income does not exceed more than Rs. 8000 to Rs.
9000/- per year as the yearly income tax paid by them is Rs.
70 to Rs. 80 only. There is no other means for them to
augment their income except to get their own house vacated
by the defendants so as to run a hotel business. [12H, 13A-
B]
(d ) on a careful comparison and assessment of the
relative advantages and disadvantages of the landlord and
the tenant, it is clear that the scale is tilted in favour
of the plaintiffs in the instant case. The inconvenience,
loss and trouble resulting from denial of a decree for
eviction in favour of the plaintiffs far outweigh the
prejudice or the inconvenience which will be caused to the
defendants. The High Court has unfortunately not weighed the
evidence from the point of view. [14H, 15A]
Observation:
Normally Supreme Court does not interfere with
concurrent findings of facts but as the High Court as also
the Trial Court have made a legally wrong approach to this
ease and have committed a substantial and patent error of
law in interpreting the scope and ambit of the words
"reasonable requirement" and "own possession" appearing in
section ll(I)(h) of the Act and have thus misapplied the law
and overlooked some of the essential features of the
evidence, the merits of the case had to be looked into in
order to prevent grave and substantial injustice being done
to the appellant. [15B-C]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2481 of
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1978.
Appeal by Special Leave from the Judgment and order
dated 10-10-67 of the Jammu and Kashmir High Court in Civil
First Appeal No 18 of 1966
Lal Narain Sinha, E. C. Agarwala, M. M. L. Srivastava,
R. Satish and Altaf Ahmed for the Appellant.
S. N. Andley, B. P. Maheshwari and Suresh Sethi for the
Respondent
The Judgment of the Court was delivered by
FAZAL ALI, J.-This is a plaintiffs’ appeal by special
leave against a judgment dated 10th October, 1966 of the
Jammu & Kashmir High Court dismissing the plaintiff’s suit.
4
The facts of the case lie within a very narrow compass
and after hearing counsel for the parties we propose to
decide only one point, viz., the question as to whether or
not the plaintiffs were entitled to a decree of ejectment
against the defendants in respect of the house in question
on the ground of personal necessity, and, therefore, we
shall narrate only those facts which are germane for this
purpose.
The property in suit was a four-storeyed building
situated at Maisuma Lal Chowk, Srinagar and belonged to one
Peer Ali Mohammad, the ancestor of the plaintiffs. This
building was leased out to the defendants by a registered
lease deed dated 1st December 1947 for a period of 10 years.
Under the lease the lessor had provided some furniture and
crockery to the lessees. Furthermore, it was clearly
stipulated that the building was leased out for the purpose
of running a hotel by the lessees, and for this purpose the
lessees were given the right to make suitable alterations in
the same, but were prohibited from making any alteration
which may affect the durability or damage the building. On
the expiry of the period of the lease, the appellants
demanded possession of the building from the respondents and
despite certain notices given by the appellants the
respondents failed to give possession of the building. Hence
the- plaintiff’s suit.
The plaintiffs had taken three main grounds in support
of their contention for ejectment of the defendants from the
suit premises. In the first place, the appellants alleged
that they required the building in order to extend their
business by running a hotel there themselves; secondly, as
the lease had expired by efflux of time, the respondents
were legally bound to surrender possession. Thirdly, it was
averred by the plaintiffs that the Jammu & Kashmir Houses
and Shops Rent Control Act, 1966 (hereinafter referred to as
the Act) was wholly inapplicable to the premises in dispute,
because the yearly income of the defendants far exceeded Rs.
20,000 and that running a hotel did not fall within the
purview of section 2(3) of the Act. The suit was resisted by
the respondents who took, inter alia, a number of objections
to the grant of the relief to the appellants. In the first
place, it was pleaded that tho income of the respondents
being less than Rs. 20,000/- per year the suit was clearly
covered by the Act. Secondly, it was averred that the
definition of the word ’house’ in section 2(3) of the Act
was wide enough to include a hotel. It was next averred that
the plaintiffs had no personal necessity and had filed the
suit merely for the purpose of getting a higher rent.
Lastly, it was contended that as the plaintiffs required the
house for running a hotel, such a purpose did not fall
within the ambit of section ll(h) of the Act which applied
only to such a case where the landlord required the house
for his occupation and, at any
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5
rate, having regard to the comparative advantages or
disadvantages of the landlord and the tenant, there was no
equity on the side of the plaintiffs.
The case was tried by the City Judge, Srinagar who
accepted the case of the defendants (respondents) and
dismissed the plaintiffs’ suit. The plaintiffs thereupon
filed an appeal before the High Court of Jammu & Kashmir
which held that the plaintiffs had not proved their personal
plaintiffs filed an application for leave to appeal to this
Court and the same having been refused, they obtained
special leave of this Court and hence the appeal before us.
In support of the appeal Mr. Lal Narayan Sinha, counsel
for the appellants submitted three points. In the first
place, he contended that there was sufficient evidence to
indicate that the income of the defendants-respondents was
more than Rs. 20,000/- a year, and, therefore, the
provisions of the Act were not applicable and as the leave
has expired due to efflux of time, the plaintiffs were
entitled to a decree for ejectment straightway. Secondly, it
was argued that the word ’house’ used in section 2(3) of the
Act cannot include a hotel, and, therefore, the Act was not
applicable. Lastly, it was submitted that the High Court
committed a grave error of law in holding that the
plaintiffs hold not been able to prove personal necessity"
although the High Court gave a clear finding that the
plaintiffs had undoubtedly proved that they had a strong
desire to occupy the building for running a hotel. It was
argued that the finding of the High Court was not based on a
discussion of the evidence and circumstances of the case and
the High Court has taken an erroneous view of law on the
nature of the need of the appellants as also on the question
of the comparative advantages or disadvantages of the
landlord and the tenant if a decree for eviction followed.
After having heard counsel for the parties we are
clearly of the opinion that the appeal must succeed on the
third point raised by learned counsel for the appellants,
i.e., the question of personal necessity and in this view of
the matter we refrain from expressing any opinion on the
applicability of the Act to the suit premises as averred by
the respondents. Learned counsel for the appellants
contended that there was sufficient material before the
Court to show that the plaintiffs did not merely have a
desire to occupy the building, but they actually needed the
same and their need is both genuine and reasonable. In this
connection, reliance was placed on the evidence of the
witnesses for the plaintiffs which does not appear to have
been considered by the High Court. We find that the
plaintiffs had clearly mentioned in their plaint
6
that they required the house for the purpose of running the
hotel business. On behalf of the plaintiffs P.W. Mohd. Yusuf
had made it absolutely clear that they required the lease
property for their personal need as they wanted to run the
hotel themselves. The witness had further explained that
this was necessary, because the plaintiffs could not
maintain themselves from the income of the leased property.
It is true that the plaintiffs were doing a small business,
but the witness had made it clear that their income was very
low so much so that they paid income tax of only Rs. 70 to
Rs. 80/- per annum. These facts have not been demolished
either in the cross-examination of the witness or in the
evidence of rebuttal given by the defendants.
The above evidence of the plaintiffs is corroborated by
the other witnesses examined by them. P.W. Girdhari Lal has
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clearly stated that the plaintiffs want to extend their
business and want to have the hotel in their own possession
to run the same. He has further stated that the plaintiffs
are running their business on a small scale, and he
categorically stated that he had personally observed that
there is very little work at the plaintiff’s shop now a
days. That is why they want to run a hotel. The witness is a
neighbour of the plaintiffs. shop and was, therefore,
competent to depose to the facts mentioned above which have
not been shaken in cross-examination.
P.W. Peer Ahmad Ullah has also stated that now a days
people give up other occupations and take up hotel business
because hotel business is itself a profitable business. The
witness added that the plaintiff also want to extend their
business and start a hotel in this building.
P.W. Ghulam Nabi Dar also says that although the
plaintiffs had a l? Boot shop they also want to run the
hotel themselves, because their business has become dull.
P W. Ghulam Mohd. whose shop is in front of the shop of
the plain tiffs states as follows:-
"The plaintiffs require the suit property for
their own use, as they have been telling me for the
last two or four years Previously, the business at Boot
shops was running well but now it has become dull. The
plaintiffs intend to run the hotel themselves..
................ As for plaintiffs I say that they are
in need of the hotel. The plaintiffs require the; hotel
in order to extend their business".
Another neighbour of the plaintiffs P.W. Yash Paul
states that the plaintiffs say that they will start a hotel
in the suit property. He fur-
7
ther deposes that there is little work in the shop of the
plaintiffs, and, therefore, they want to start a hotel, P.W.
Ghulam Mohd. who is the brother-in-law of P.W. Pir Ali.
Mohd., father of the plaintiffs and was looking after his
children on the death of P.W. Pir Ali Mohd. has also stated
that the plaintiffs want to start business in the shape of a
hotel in the house and they also want to run the shop. It
is, therefore, proved by the evidence discussed above ( 1 )
that the plaintiffs required the house for their personal
necessity in order to augment their income, (2) that as
their income from the Boot shop is very small and they are
not able to maintain themselves. so they want to run the
hotel business in the suit premises. The High Court has not
at all discussed this part of the evidence of the
plaintiffs, but at the some time being impressed by the fact
that the need of the plaintiffs was genuine the High Court
gave a finding to at the plaintiffs had a strong desire to
occupy the house and use it for commercial purposes.
Thereafter the High Court appears to have lost itself in
wilderness by entering into a hair splitting distinction
between desire and need. Here the High Court has misdirected
itself. If the plaintiffs had proved that their necessity
was both genuine and reasonable, that the present premises
which belonged to them were required for augmenting their
income as the income so far received by them was not
sufficient for them to make the two ends meet, there could
be no question of a mere desire, but it is a case of real
requirement or genuine need. In fact the irresistible
inference which could be drawn from the facts is that the
plaintiffs had a pressing necessity of occupying the
premises for the purposes of conducting hotel business so as
to supplement their income and maintain themselves property.
The Act is a piece of social legislation and aimed at easing
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the problem of accommodation, protecting the tenants from
evictions inspired by profit hunting motives and providing
certain safeguards for the tenants and saving them from
great expense, inconvenience and trouble. But the Act does
not completely overlook the interest of the landlord and has
under certain conditions granted a clear right to the
landlord to seek eviction on proof of the grounds mentioned
in section 11 of the Act. Thus, the Act appears to have
struck a just balance between the genuine need of the
landlord on the one hand and great inconvenience and trouble
of the tenant on the other. It was also not disputed that
the defendants had taken the property on lease only for a
period of 10 years and now they have been in possession of
the same for over 30 years. If the plaintiffs found that
their present business had become dull and was not yielding
sufficient income to maintain themselves and, therefore, it
was necessary to occupy the house so as to run a hotel
business, it cannot by any stretch of imagination be said
that the plaintiffs had merely a desire rather than
8
a bonafide need for evicting the tenants. We therefore,
disagree with the finding of he High Court that the
plaintiffs had not proved that they had a bonafide need for
occupation of the building in dispute.
Moreover section 11(h) of the Act uses the words
’reasonable requirement’ which undoubtedly postulate that
there must be an element of need as opposed to a mere desire
or wish. The distinction between desire and need should
doubtless be kept in mind but not so as to make even the
genuine need as nothing but a desire as the High Court has
done in this case. It seems to us that the connotation of
the term ’need’ or ’requirement should not be artificially
extended nor its language so unduly stretched or strained as
to make it impossible or extremely difficult for one
landlord to get a decree for eviction. Such a course would
defeat the very purpose of the Act which affords the
facility of eviction of the tenant to the landlord on
certain specified grounds. This appears to us to be the
general scheme of all the Rent Control Acts, prevalent in
other State in the country. This Court has considered the
import of the word requirement and pointed out that it
merely connotes that there should be an element of need.
In the case of Phiroze Ramanji Desai v. Chandrakant N.
Patel & Ors. (1) Justice Bhagwati speaking for the Court
observed as follows:-
The District Judge did not misdirect himself in
regard to the true meaning of the word ’requires’ in
section 13(1) (g) and interpreted it correctly to mean
that there must be an element of need before a landlord
can be said to ’require’ premises for his own use and
occupation. It is not enough that the landlord should
merely desire to use and occupy the premises. What is
necessary is that he should need them for his own use
and occupation."
Thus, this Court has held that in such cases the main
test should be whether it was necessary for the landlords to
need the premises for their use or occupation.
In the case of B. Balaiah v. Chandoor Lachaiah(2) a
Division Bench of the High Court observed as follows:-
"As long as such requirement is bona fide, the
petitioner can certainly claim for a direction for
eviction of the tenant".
It had become necessary for us to enter into the
evidence led by the plaintiffs, because the High Court has
in a general way made a sweeping obvervation that although
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the plaintiffs had a strong desire, they
(1) [1974] I S.C.C. 661
(2) A.I.R 1965 A.P 435.
9
were not able to prove reasonable requirement and the High
Court came to this finding without at all considering the
evidence of competent and important witnesses examined by
the plaintiffs on this point which has been discussed above.
For these reasons, therefore, we are clearly of the opinion
that in the instant case the plaintiffs had proved that the
requirement for the house for starting a hotel business was
both genuine and reasonable and even imperative, because the
scanty income of the plaintiffs was not sufficient to
maintain them or to afford them a decent or comfortable
living.
This brings us to the next limb of the argument of the
learned counsel for the respondents regarding the
interpretation of section 11 ( 1 ) (h) of the Act. Section
ll(l)(h) of the Act runs thus:-
11(1)(h) ..................... where the house or
shop is reasonably required by the landlord either for
purposes of building or re-building, or for his own
occupation or for the occupation of any person for
whose benefit the house or shop is held;
Explanation: The Court in determining the
reasonableness of requirement for purposes of building
or rebuilding shall have regard to the comparative
public benefit or disadvantage by extending or
diminishing accommodation, and in determining
reasonableness of requirement for occupation shall have
regard to the comparative advantage or disadvantage of
the landlord or the person for whose benefit the house
or shop is held and of the tenant".
It was submitted by Mr. Andley learned counsel for the
respondents that the words used in section ll(l)(h) are
"that the house should be required by the landlord for his
own occupation or for the occupation of and person for whose
benefit the house or shop is held." It was argued that the
words ‘own occupation’ clearly postulate that the landlord
must require it for his personal residence and not for
starting any business in the house. We are, however, unable
to agree with this argument. The provision is meant for the
benefit of the landlord and, therefore, it must be so
construed as to advance the object of the Act. The word
’occupation’ does not exclude the possibility of the
landlord starting a business or running a hotel in the shop
which also would amount to personal occupation by the
landlord. In our opinion, the section contemplates the
actual possession of the landlord, whether for his own
residence or for his business. It is manifest that even if
the landlord is running a hotel in the house, he is
undoubtedly in possession or occupation of the house in the
legal sense of the term.
2-817SCI/78
10
Furthermore, the section is wide enough to include the
necessity of not only the landlord but also of the persons
who are living with him as members or the same family.
In the instant case there can be no manner of doubt
that the house was required for the personal residence or
occupation of all the three plaintiffs who admittedly were
the owners of the house. The fact that the plaintiffs wanted
to occupy the property for running hotel would not take
their case out of the ambit of personal necessity as already
indicated above, occupation of a house may be required by
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the owner for personal purposes. He may choose to reside
himself in the house or run a business in the house or use
it as a paying guest house and derive income therefrom. In
all these cases even though the owner may not physically
reside in the house, the house in law would nevertheless be
deemed to be in actual occupation of the owner.
Having regard, therefore, to the circumstances
mentioned above, we are unable to subscribe to the view that
the words ’own occupation’must be so narrowly interpreted so
as to indicate actual physical possession of the landlord
personally and nothing short of that. We, therefore,
overrule the argument of the respondents on this point.
The last argument that was advanced before us by Mr.
Andley for the respondents was that taking an overall
picture of the various aspects of the present case, it
cannot be said that the balance of comparative advantages
and disadvantages was in favour of the landlord. In this
connection, our attention was drawn to the evidence led by
the defendants that the main source of their income is the
hotel business carried on by them in the premises and if
they are thrown out they are not likely to get any
alternative accommodation. The High Court has accepted the
case of the defendants on this point, but does not appear to
have considered the natural consequences which flow from a
comparative assessment of the advantages and disadvantages
of a landlord and the tenant if a decree for eviction
follows. It is no doubt true that the tenant will have to be
ousted from the house if a decree for eviction ii passed,
but such an event would happen whenever a decree for
eviction is passed and was fully in contemplation of the
legislature when section ll(l)(h) of the Act was introduced
in the Act. This by itself would not be a valid ground for
refusing the plaintiffs a decree for eviction.
Let us now probe into the extent of the hardship that
may be caused to one party or the other, in case a decree
for eviction is passed or is refused. It seems to us that in
deciding this aspect of the matter each party has to prove
its relative advantages or disadvantages and the entire
11
Onus cannot be thrown on the plaintiffs to prove that lesser
disadvantages will be suffered by the defendants and that
they were remediable. This matter was considered by this
Court in an unreported decision in the case of M/s Central
Tobacco Co. v. Chandra Prakash(l) where this Court observed
as follows:-
"We do not find ourselves able to accept the
broad pro-position that as soon as the landlord
establishes his need for additional accommodation he is
relieved of all further obligation under s. 21 sub-s.
(4) and that once the landlord’s need is accepted by
the court all further evidence must be adduced by the
tenant if he claims protection under the Act. Each
party must adduce evidence to show what hardship would
be caused to him by the granting or refusal of the
decree and it will be for the court to determine wether
the suffering of the tenant, in case a decree was made,
would be more than that of the landlord by its refusal.
The whole object of the Act is to provide for the
control of rents and evictions, for the leasing of
buildings etc. and s. 21 specifically enumerates the
grounds which alone will entitle a landlord to evict
his tenant.. The onus of proof of this is certainly on
the landlord. We see no Sufficient reason for holding
that once that onus is discharged by the landlord it
shifts to the tenants making it obligatory on him to
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show that greater hardship would be caused to him by
passing the decree than be refusing to pass it. In our
opinion both sides must adduce all relevant evidence
before the court; the landlord must show that other
reasonable accommodation was not available to him and
the tenant must also adduce evidence to that effect. It
is only after shifting such evidence that the court
must form its conclusion on consideration of all the
circumstances of the case as to whether greater
hardship would be caused by passing the decree than by
refusing to pass it".
This case was followed in Phiroze Ramanji Desai v.
Chandrakant N. Patel & Ors (supra). In the case of Kelley v.
Goodwin(2) Lynskey, J. Observed as follows:-
"The next matter one has to consider is whether
there was evidence on which the county court judge
could come to the conclusion that there would be
greater hardship in mak-
(1) C.A. 1175 of 1969 decided on 23-4-1969.
(2) [1947] 1 All E.R. 810
12
ing the order than not making the order. He has taken
into account, in relation to that question, first, the
position of the landlord, and, secondly, the position
of the tenant. He has taken into account the financial
means of the tenant. It is argued before us that he was
wrong in doing that. In my view, he was quite entitled,
in considering hardship, to have regard to the
financial means of the tenant in considering whether he
could obtain other accommodation because, by reason of
his means, he was in a position, not merely to rent,
but to buy a house. It seems to me also that, on this
question cf hardship, the judge was entitled to take
into account the fact that the tenant had taken no real
steps to try and find other accommodation or no real
steps to buy a house".
To the same effect is the decision in the case of K.
Parasuramaiah v. Pokuri Lakshmamma(1) where a Division Bench
of the High Court narrated the mode and circumstances in
which the comparative advantages and disadvantages of the
landlord and the tenant could be weighed. In this
connection, the Court observed as follows:-
"Thus the hardship of the tenant was first to be
found out in case eviction is to be directed. That
hardship then has to be placed against the relative
advantages which the land lord would stand to gain if
an order of eviction is passed ...... What is however
required is a careful consideration of all the relevant
factors in weighing the relative hardship which is
likely to be caused to the tenant with the likely ad
vantage of the landlord on the basis of the available
material on record... ’... The proviso however should
not be read as if it confers a practical immunity on
the tenant from being evicted. That would destroy the
very purpose of Sec. 10(3)(c). Likewise the requirement
of the land lord in accordance with that provision
alone cannot be given absolute value, because that
would mean to underestimate the value of the proviso to
that section. Keeping in view therefore the purpose of
the provision and the necessity of balancing the
various factors each individual case has to be decided
in the light of the facts and circumstances of that
case’’.
In view of our findings it has been established that
the landlords have not only a genuine requirement to
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possess the house, but it is necessary for them to do
so in order to augment their income and maintain
themselves properly. Being the owners of the house they
(1) A.I.R. 1965 A.P.220
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cannot be denied eviction and be compelled to live below the
poverty line merely to enable the respondents to carry on
their flourishing hotel business, at the cost of the
appellants. This shows the great prejudice that will be
caused to the plaintiffs if their suit is dismissed. The
plaintiffs have already produced material before the court
to show that their income does not exceed more than Rs. 8000
to Rs. 9000/- per year as the yearly income tax paid by them
is Rs. 70 to Rs. 80 only. There is no other means for them
to augment their income except to get their own house
vacated by the defendants so as to run a hotel business. It
was vehemently contended by Mr. Andley that there is nothing
to show that the plaintiff Mohd. Yusuf or his mother had any
experience of running the hotel, and, therefore, it is
fruitless to allow them to run the hotel by evicting the
respondents. Mohd. Yusuf is admittedly doing shoe business,
and has got sufficient experience of business. Nothing has
been brought on the record to show that he is incapable of
running a hotel in the premises. The building belongs to him
and there is Do reason for us to think that he cannot
establish a hotel business.
On the other hand the defendants have been running the
hotel for the last 30 years and must have made sufficient
profits. To begin with, the defendants had taken the lease
only for 10 years which now by virtue of the statute has
been extended to 30 years which is a sufficiently long
period for which the plaintiffs have been deprived the
possession of the house. There is thus no equity in favour
of the respondents for continuing in possession any further.
It was then submitted by Mr. Andley, counsel for the
respondents that if the respondents are evicted they will be
thrown out on the road; that hotel is the only source of
their sustenance and they are not likely to get any
alternative accommodation on being evicted. If the
defendants had proved that they will not be able to get any
accommodation any where in the city where they could set up
a hotel, this might have been a weighty consideration, but
the evidence of all the witnesses examined by the defendants
only shows that the defendants may not get alternative
accommodation in that very locality where the house in
dispute is situated. There is no satisfactory evidence to
prove that even in other business localities there is no
possibility of the defendants getting a house. To insist on
getting an alternative accommodation of a similar nature in
the same locality will be asking for the impossible. The
defendants are tenants and had taken the lease only for 10
years but had overstayed for 20 years and they cannot be
allowed to dictate to the landlord that they cannot be
evicted unless they get a similar accommodation in the very
same locality.
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G. M. Khan the defendant himself has stated that if he
is evicted from the house, he cannot get such a place any
where. Great stress is laid that he must get a house of the
size of the house in dispute. It was suggested to him that
if one of the houses of the plaintiffs is given to him that
will be sufficient for him, to which he said that the said
house situated in Hari Singh High Street is not suitable
because he can-not run his hotel business there. The witness
has further stated towards the end that the defendants
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cannot get any place for the purpose of running a hotel in
this Ilaqa (locality).
D.W. Ghani Hajam also says that the defendants cannot
get any other building for the purpose of the hotel at this
place like the one under dispute. Similarly, D. W. Ghulam
Mohd. Khan, another witness for the defendants says that the
defendants will not get such a building in this Ilaqa for
running a hotel. D.W. Haji Noor Mohd. also endorses the fact
that if the defendants are ejected, it is difficult for them
to get such a building in this place. D.W. Mohd, Ramzan
deposes that if the defendants are ejected from the
building, they will not get such a building in this locality
for running a hotel. To the same effect is the evidence of
D. W. Rasool Dar who says that it is impossible for the
defendants to get a house like the suit house for the
purposes of running a hotel at the site or nearabout where
the suit house is situated. D. W. Ghulam Mohd. has made a
similar statement in his deposition when he says that the
defendants will not get such a building nor is there any
such building vacant in the locality. It is true that there
are some witnesses like D. W. Aslam Khan, Ghulam Hassan,
Mohd. Abdullah Pandey who has said that the defendants might
not get any other place for running a hotel but the evidence
is extremely vague and nebulous. D. W. Abdul Kabir however
merely says that he had no knowledge that the defendants
could get any other house.
Thus, what is established from the evidence of the
defendants is that if they are ejected, they might not get a
house as big as the house in dispute in the very locality
where the disputed house is situated. There is no clear
evidence in the first place to show that there is no other
business locality in the city at all or that if there is any
other business locality attempts were made by the defendants
but they Were unable to get any house. Furthermore, as
indicated above, the plaintiff necessity is imperative and
their requirement is undoubtedly reasonable, because the
income which they are receiving including the rent of the
house which is in the region of Rs. 5000/- per year, is not
sufficient to maintain them. Thus, on a careful comparison
and assessment of the relative advantages and disadvantages
of the landlord and the tenant it seems to us that the scale
is tilted in favour of the plaintiffs.
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The inconvenience, loss and trouble resulting from denial of
a decree for eviction in favour of the plaintiffs far
outweigh the prejudice or the inconvenience which will be
caused to the defendants. The High Court has unfortunately
not weighed the evidence from this point of view.
Before closing the judgment we would like to observe
that normally this Court does not interfere with concurrent
findings of facts but as the High Court as also the Trial
Court have made a legally wrong approach to this case and
have committed a substantial and patent error of law in
interpreting the scope and ambit of the words "reasonable
requirement" and "own possession" appearing in section 11
(1) (h) of the Act and have thus misapplied the law and
overlooked some of the essential features of the evidence
as discussed by us, we had to enter into the merits of the
case in order to prevent grave and substantial injustice
being done to the appellants.
For the reasons given above, the appeal is allowed.
The judgment and decree of the High Court are set aside, and
a decree for ejectment of the defendants from the house in
dispute is hereby passed against the defendants. In the
peculiar circumstances of this case, there will be no order
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as to costs.
S.R. Appeal allowed.
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