Supreme Court Upholds Landlord's Eviction Claim in Chandigarh Rent Control Proceedings Due to Tenant's Failure to Disclose Prima Facie Defence. Retired Army Officer's Bona Fide Residential Need Satisfied Under Sections 2(hh), 13-A, 18-A of East Punjab Urban Land Restriction Act, 1949, and Tenant's Alleged Sale Agreement Found to Be Device to Avoid Eviction.

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Case Note & Summary

The dispute concerned a landlord-tenant eviction proceeding under the East Punjab Urban Land Restriction Act, 1949. The appellant, a retired Colonel of the Indian Army, owned House No. 1013, Sector 27-B, Chandigarh, which was occupied by the respondent tenant on a monthly rent of Rs. 7,000. The appellant retired on 21 February 1995 and was granted temporary permission to retain his government accommodation in Panchkula, but he was later declared an unauthorized occupant with effect from 22 May 1995. On 28 March 1995, the appellant filed an eviction petition before the Rent Controller, Chandigarh, supported by an affidavit, asserting that after retirement he bona fide required the premises for his own residence and that of his widowed mother and family, and that he had no other suitable accommodation in the Union Territory. He placed on record a discharge certificate dated 18 March 1995 and the order permitting temporary retention of government accommodation. The respondent tenant appeared and filed an application under Section 18-A(4) of the Act on 7 April 1995 seeking leave to defend. The tenant alleged that the retirement certificate was bogus, that the landlord wanted to increase rent to Rs. 15,000 per month, and that the landlord had entered into an agreement to sell the house to one Mohit Nanda for Rs. 15 lakhs with a promise to deliver vacant possession. The Rent Controller disbelieved the sale agreement allegation and rejected the leave application on 30 September 1995, holding no ground for leave was made out. The tenant filed a revision before the High Court, which set aside the Rent Controller's order on 28 November 1995, holding that the Rent Controller should have considered the alleged agreement for sale because if proved it would show the landlord did not require the premises for residence. The landlord appealed to the Supreme Court. The Supreme Court referred to Precision Steel and Engineering Works v. Prem Deva and the principles governing leave to defend in summary eviction proceedings. The Court emphasized that the Controller must confine himself to the tenant's affidavit and the landlord's reply and ask whether the affidavit discloses facts, not proof, which if proved would disentitle the landlord from recovering possession. The Court noted that the essential requirements of Section 18-A were satisfied, that the appellant fell within the category of specified landlord under Section 2(hh), and that the eviction petition was filed within the period under Section 13-A. The alleged suit for specific performance filed through Mohit Nanda was withdrawn on 11 November 1995 within 25 days of institution, indicating that the sale agreement was a device to avoid eviction. The appellant also filed an affidavit undertaking not to sell or relet the house for at least five years. The Court concluded that no case for grant of leave to contest the eviction petition was made out by the tenant and accordingly allowed the appeal, setting aside the High Court's order and restoring the Rent Controller's rejection of the leave application.

Headnote

A) Rent Control - Leave to Defend - Summary Eviction Proceedings - East Punjab Urban Land Restriction Act, 1949, Sections 13-A, 18-A(4), 2(hh) - The Rent Controller while considering a tenant's application for leave to defend must confine to the tenant's affidavit and landlord's reply and determine whether the affidavit discloses facts which, if proved, would disentitle the landlord from obtaining eviction; the Controller should not record findings on disputed facts or evaluate evidence at that stage - Held that if the tenant's affidavit discloses a prima facie defence, leave must be granted, but plausibility of defence is not proof (Paras 7-8).

B) Rent Control - Specified Landlord - Bona Fide Requirement - East Punjab Urban Land Restriction Act, 1949, Sections 2(hh), 13-A, 18-A - A retired army officer who owns a house in Chandigarh and requires it for personal residence after retirement falls within the category of specified landlord and can maintain eviction petition if filed within prescribed period; discharge certificate and affidavit support bona fide requirement - Held that landlord's essential requirements were satisfied; tenant's allegations of fabricated retirement certificate and agreement for sale were false, withdrawn suit indicated device to avoid eviction (Paras 3-6,8).

C) Evidence - Affidavit - Prima Facie Disclosure - East Punjab Urban Land Restriction Act, 1949, Section 18-A(4) - Tenant's allegation of agreement to sell was contradicted by withdrawal of specific performance suit and landlord's undertaking not to sell or relet for five years - Held that no case for leave to defend was made out (Paras 6-8).

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Issue of Consideration

Whether the High Court was justified in setting aside the Rent Controller's order and directing consideration of the alleged agreement for sale at the leave to defend stage; whether the tenant's application under Section 18-A(4) disclosed facts warranting leave to contest the eviction petition.

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Final Decision

The Supreme Court held that no case for grant of leave to contest the eviction petition was made out by the tenant and allowed the appeal, setting aside the High Court's order and restoring the Rent Controller's rejection of the tenant's application under Section 18-A(4).

Law Points

  • Leave to defend under Section 18-A(4) East Punjab Urban Land Restriction Act
  • 1949
  • Rent Controller to confine to tenant's affidavit and landlord's reply
  • affidavit must disclose facts which if proved would disentitle landlord
  • prima facie disclosure not proof
  • specified landlord under Section 2(hh)
  • summary eviction under Section 13-A
  • bona fide residential requirement
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Case Details

1996 LawText (SC) (04) 154

1996-04-09

Faizan Uddin, Kuldip Singh

1996 AIR 1907, 1996 SCC (4) 275, JT 1996 (4) 289, 1996 SCALE (3)511

Col. Surinder Pal Singh Bhattal (Retd.)

Rakesh Kumar Jain

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Nature of Litigation

Eviction proceedings initiated by a landlord under Section 13-A of the East Punjab Urban Land Restriction Act, 1949 against a tenant, with tenant seeking leave to defend under Section 18-A(4).

Remedy Sought

The appellant-landlord sought eviction of the respondent-tenant from House No. 1013, Sector 27-B, Chandigarh on grounds of bona fide personal requirement after retirement; the respondent-tenant sought leave to contest the eviction petition.

Filing Reason

The appellant, a retired Army officer, claimed that after retirement he required the premises for his own residence and that of his family, having no other suitable accommodation in the Union Territory and being required to vacate government accommodation; tenant alleged the retirement certificate was bogus and that landlord had agreed to sell the house to a third party.

Previous Decisions

The Rent Controller, Chandigarh rejected the tenant's leave to defend application on 30-09-1995, holding no ground for leave was made out. The High Court of Punjab and Haryana set aside that order on 28-11-1995 in Civil Revision No. 3638/1995, directing reconsideration of the alleged agreement for sale, leading to the present appeal.

Issues

Whether the High Court was justified in setting aside the Rent Controller's order and holding that the alleged agreement for sale should be considered at the leave to defend stage. Whether the tenant's application under Section 18-A(4) disclosed facts which, if proved, would disentitle the landlord from obtaining eviction, warranting leave to defend. Whether the landlord qualified as a specified landlord under Section 2(hh) and satisfied the requirements of Section 13-A/18-A.

Submissions/Arguments

Appellant: Allegation of agreement for sale is false and based on a conspiracy; suit for specific performance filed through Mohit Nanda was withdrawn within 25 days; landlord filed undertaking not to sell or relet for five years; essential requirements of Section 18-A satisfied. Respondent: Certificate of retirement bogus; landlord wanted to increase rent to Rs.15,000 per month; landlord entered into agreement to sell house to Mohit Nanda for Rs.15 lakhs and intended to deliver vacant possession; therefore no bona fide requirement.

Ratio Decidendi

The Rent Controller, while considering leave to defend under Section 18-A(4), must confine to the tenant's affidavit and landlord's reply and determine whether the affidavit discloses facts that, if proved, would disentitle the landlord from eviction; the Controller should not evaluate evidence or record findings on disputed facts. In this case, the tenant failed to disclose such facts because the alleged agreement for sale was shown to be false and withdrawn, and the landlord's bona fide requirement was established.

Judgment Excerpts

The Controller has to confine himself to the affidavit filed by the tenant under sub-sec. (4) and the reply if any. On perusal of the affidavit filed by the tenant and the reply if any filed by landlord the Controller has to pose to himself the only question, ‘Does the affidavit disclose, not prove, facts as would disentitle the landlord from obtaining an order for the recovery of possession...’ In the present case the essential requirements of Section 18-A of the Act have been clearly set out in the eviction petition supported by an affidavit. It cannot be disputed that the appellant-landlord falls within the category of specified landlord within the meaning of Section 2 (hh) of the Act and that the petition for eviction has been filed within the period mentioned in Section 13-A of the Act. The alleged suit for specific performance had been withdrawn on 11.11.1995 indicating that the alleged agreement for sale was device to avoid the passing of an order of eviction against the respondent under Section 13-A of the Act.

Procedural History

The appellant-landlord filed eviction petition on March 28, 1995 before Rent Controller, Chandigarh under Section 13-A of the East Punjab Urban Land Restriction Act, 1949. Tenant filed application under Section 18-A(4) on April 7, 1995 for leave to defend. Rent Controller rejected tenant's application on September 30, 1995. Tenant filed Civil Revision No. 3638/1995 in High Court of Punjab and Haryana at Chandigarh. High Court set aside Rent Controller's order on November 28, 1995, directing reconsideration of alleged agreement for sale. Landlord appealed to Supreme Court, which granted leave.

Acts & Sections

  • East Punjab Urban Land Restriction Act, 1949: 2(hh), 13-A, 18-A, 18-A(4)
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