Supreme Court Allows Tenant to Remain in Premises with Increased Rent. Tenant's Temporary Change of Business Did Not Warrant Eviction Under Section 13 of the Haryana Urban (Control of Rent & Eviction) Act, 1973.

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Case Note & Summary

The dispute arose from a tenancy agreement dated 21.3.1982, where the appellant was a tenant of a shop for general merchandise at a monthly rent of Rs.600. The respondent landlord filed for eviction on 15th June 1987 under Section 13 of the Haryana Urban (Control of Rent & Eviction) Act, 1973, citing arrears of rent, structural alterations, bona fide need, and change of user. The Rent Controller allowed eviction solely on the change of user ground on 25th March 1995, while other grounds were dismissed. The appellate authority upheld this decision on 4th April 1998, and the High Court dismissed a revision on 25th May 1998. The respondent argued that the appellant's undertaking to vacate the premises by September 1, 1998, rendered the appeal unmaintainable. However, the court overruled this objection, referencing a precedent that affirmed a tenant's right to appeal despite such undertakings. The court then addressed the substantive issue of whether the tenant's use of the shop for a restaurant constituted a change of user. The appellant contended that the shop remained in commercial use, while the respondent argued that the shift to a restaurant violated the lease terms. The court reviewed various precedents and concluded that a mere change of business type does not necessarily equate to a change of user. Ultimately, the court recognized that the appellant had reverted to the original business during the eviction proceedings and, given that other eviction grounds were dismissed, allowed the appellant to remain in the premises, increasing the rent to Rs.1,500 per month. The appeal was disposed of without costs.

Headnote

A) Rent Control - Change of User - Eviction Grounds - Haryana Urban (Control of Rent & Eviction) Act, 1973, Section 13 - The court examined whether the tenant's shift from general merchandise to restaurant use constituted a change of user. It was held that the tenant's temporary change did not warrant eviction as he reverted to the original business during proceedings, and other eviction grounds were rejected (Paras 1-5).

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Issue of Consideration

Whether the tenant's change of business constituted a change of user warranting eviction under the Haryana Urban (Control of Rent & Eviction) Act, 1973.

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Final Decision

The Supreme Court allowed the appellant to remain in the premises, increasing the rent to Rs.1,500 per month, as the change of business was temporary and other eviction grounds were rejected.

Law Points

  • Eviction
  • Change of User
  • Rent Control
  • Tenant Rights
  • Undertaking
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Case Details

2000 LawText (SC) (03) 45

2000-03-27

D.P. Wadhwa, S.S. Ahmad

Jagdish Lal

Parma Nand

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Nature of Litigation

Eviction proceedings under the Haryana Urban (Control of Rent & Eviction) Act, 1973.

Remedy Sought

The respondent sought eviction of the appellant from the shop.

Filing Reason

The respondent filed for eviction citing change of user and other grounds.

Previous Decisions

Eviction was ordered by the Rent Controller, upheld by the appellate authority and the High Court.

Issues

Whether the tenant's change of business constituted a change of user warranting eviction. Whether the tenant's undertaking to vacate the premises affected the maintainability of the appeal.

Submissions/Arguments

The appellant argued that the shop remained in commercial use and did not change to residential. The respondent contended that the shift to a restaurant violated the lease terms.

Ratio Decidendi

The court held that a mere change of business does not equate to a change of user under the Act, and a tenant retains the right to appeal despite prior undertakings.

Judgment Excerpts

The question was examined by this Court in a subsequent decision in P.R. Deshpande vs. Maruti Balaram Haibatti... The setting up of a restaurant therein and serving tea and cold drinks would, in the circumstances of this case, amount to change of user within the meaning of Section 13.

Procedural History

The respondent filed for eviction in 1987, the Rent Controller ordered eviction in 1995, the appellate authority upheld this in 1998, and the High Court dismissed a revision in 1998.

Acts & Sections

  • Haryana Urban (Control of Rent & Eviction) Act, 1973: Section 13
  • Transfer of Property Act, 1882: Section 108(o)
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