Bombay High Court Dismisses Tenant's Petition in Bombay Rent Act Eviction Case — Concurrent Findings on Change of User and Non-occupation Not Perverse. Tenant's Plea of Composite Tenancy Rejected as Endorsement on Rent Receipt Confirmed Residential Purpose Only and Subsequent Commercial Use Amounted to Breach of Section 13(1)(a) and (k) of Bombay Rents, Hotel and Lodging House Rates Control Act, 1947.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The dispute arose from a landlord-tenant relationship under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. The respondent-landlord, owner of shop No.4 on the ground floor of a building in Ganesh Peth, Pune, had let out the premises to the petitioner-tenant. The tenancy commenced in 1977 when the parties exchanged shop No.1 for shop No.4, with a specific written endorsement on a rent receipt (Exhibit-18) that the premises would be used for residential purposes only. The tenant, initially a school teacher, used the premises as agreed until September 1981. Thereafter, without the landlord's consent, he began using the front portion for manufacturing hardboard boxes, later installing a machine for the business. Despite the landlord's initial written permission in May 1983 to install machinery, he promptly withdrew it in June 1983 on legal advice, citing the prohibition under Section 25 of the Act. The tenant continued the commercial use, leading the landlord to file a suit for eviction on grounds of change of user under Section 13(1)(a) and non-occupation under Section 13(1)(k) of the Act. The trial court and the appellate court both decreed the suit, holding that the premises were let exclusively for residential use and that the tenant had impermissibly changed the user. The tenant then filed a writ petition under Article 227 of the Constitution, challenging the concurrent findings as perverse. He argued that the tenancy was composite, that the landlord had waived his right by granting permission, and that the lower courts erred in comparing signatures without expert evidence. The High Court, after examining the evidence, found no perversity. It noted that the endorsement on Exhibit-18 clearly proved the residential purpose; that the tenant's teacher status and lack of proof of prior business supported the finding; and that the municipal register entries or usage by adjacent shops could not establish composite tenancy. On the waiver point, the court held that Section 25 of the Act imposes a statutory prohibition, rendering the landlord's permission void and incapable of being waived. Regarding signature comparison, the court relied on Section 73 of the Indian Evidence Act, 1872, which permits the court to compare signatures itself. Consequently, the High Court dismissed the writ petition, upholding the eviction decree and confirming that the concurrent findings of fact were not liable to interference under Article 227. The decision reinforced the principle that a tenant cannot unilaterally change the agreed purpose of letting, especially when such change is statutorily prohibited.

Headnote

A) Rent Control - Change of User - Section 13(1)(a) - Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, Section 13(1)(a) - The dispute pertained to whether tenant changed user of residential premises to commercial use. The tenant agreed in writing to use the premises for residential purpose only as per endorsement on Exhibit-18. From September 1981, he started using it for manufacturing hardboard boxes without landlord's permission. Held that change of user was established as the tenancy was exclusively residential, and the tenant's subsequent commercial use constituted breach of Section 13(1)(a). (Paras 2, 3, 7, 8)

B) Rent Control - Non-occupation - Section 13(1)(k) - Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, Section 13(1)(k) - The landlord also claimed eviction on the ground that the tenant had not occupied the premises for residential purpose for more than six months without reasonable cause. The tenant had converted the premises to a business of making boxes, thus ceasing to occupy for the purpose it was let. The court upheld the finding that the premises were not used for residential purpose for the required period, satisfying the ground under Section 13(1)(k). (Paras 1, 8)

C) Rent Control - Prohibition on Change of User - Section 25 - Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, Section 25 - The landlord initially granted permission to install machinery but later withdrew it. The tenant argued that this amounted to waiver. However, the court held that Section 25 prohibits a landlord from allowing residential premises to be used for non-residential purpose, so the permission was void ab initio. There can be no waiver or acquiescence when the act is prohibited by law. (Paras 12, 13)

D) Evidence - Comparison of Signatures by Court - Section 73 - Indian Evidence Act, 1872, Section 73 - The tenant disputed his signature on the rent receipt (Exhibit-18). The lower courts compared the disputed signature with admitted signatures and concluded it was the tenant's. The High Court held that Section 73 of the Evidence Act empowers the court to compare signatures without the aid of an expert, and such comparison is legally permissible. The finding was thus upheld. (Paras 7(d), 14, 15)

E) Constitutional Law - Supervisory Jurisdiction - Article 227 - Constitution of India, 1950, Article 227 - The tenant invoked Article 227 to challenge concurrent findings of fact. The High Court observed that under Article 227, it will not interfere with such findings unless they are perverse or based on no evidence. Since the lower courts had properly appreciated the evidence, the findings were not liable to interference. (Paras 1, 5, 13)

F) Rent Control - Composite Tenancy - No specific section - Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 - The tenant contended that the tenancy was for composite purposes because the earlier shop was used for both residential and non-residential purposes and adjacent shops were so used. The court rejected this as there was no positive evidence; the written agreement for exchange specifically stated residential use. Mere entries in municipal registers or use by neighbors does not establish composite tenancy. (Paras 2, 10, 11)

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Issue of Consideration

Whether the lower courts' concurrent findings on change of user and non-occupation were perverse and liable to be interfered with under Article 227 of Constitution; Whether the tenancy was for residential purpose only or composite purpose; Whether the landlord's initial permission and subsequent withdrawal constituted waiver/acquiescence; Whether the court could compare signatures without expert evidence under Section 73 of Evidence Act

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Final Decision

The writ petition is dismissed. The eviction decree passed by the lower courts is upheld. The petitioner-tenant's challenge to concurrent findings under Article 227 fails.

Law Points

  • Change of user under Section 13(1)(a) of Bombay Rent Act requires proof that premises let for residence were used for commercial purposes without consent
  • Non-occupation under Section 13(1)(k) requires proof of non-use for more than six months
  • Section 25 prohibits landlord from allowing change of user of residential premises
  • Waiver or acquiescence cannot be pleaded when act is prohibited by law
  • Court has power under Section 73 of Evidence Act to compare disputed and admitted signatures
  • High Court under Article 227 does not interfere with concurrent findings of fact unless perverse
  • Endorsement on rent receipt is admissible evidence of purpose of letting
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Case Details

2005 LawText (BOM) (08) 192

Writ Petition No. 2771 of 1990

2005-08-03

Anoop V. Mohta

Mr. C.M. Kothari, Ms. Gauri Godse

Shri Shantilal Kesharmal Gandhi

Shri Prabhakar Balkrishna Mahanubhav

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Nature of Litigation

Landlord-tenant dispute under the Bombay Rent Act for eviction on grounds of change of user and non-occupation.

Remedy Sought

Petitioner-tenant filed writ petition under Article 227 challenging the eviction decree and sought restoration of possession.

Filing Reason

Respondent-landlord filed suit for possession on grounds that tenant changed user from residential to commercial without permission under Section 13(1)(a) and did not occupy premises for residential purpose for over six months under Section 13(1)(k) of the Bombay Rent Act.

Previous Decisions

The Additional Small Causes Court (Trial Court) decreed the suit in favor of the landlord on 10th February, 1986. The Additional District Judge (Appellate Court) confirmed the decree and dismissed the tenant's appeal on 22nd June, 1989.

Issues

Whether the lower courts' concurrent findings on change of user and non-occupation were perverse and liable to interference under Article 227 of the Constitution. Whether the tenancy was for residential purpose only or for composite purpose. Whether the landlord's initial permission to install machinery and subsequent withdrawal amounted to waiver or acquiescence. Whether the courts could compare the disputed signatures with admitted signatures under Section 73 of the Indian Evidence Act without expert evidence.

Submissions/Arguments

Petitioner-tenant argued that the tenancy was composite as the earlier premises were used for both residential and non-residential purposes, and adjacent shops were similarly used. Petitioner-tenant contended that the landlord's written permission to install machinery constituted waiver of the right to object to commercial use. Petitioner-tenant submitted that the trial court erred in comparing his signatures without expert evidence, relying on Sections 43, 44 and 73 of the Evidence Act. Respondent-landlord relied on the endorsement on the rent receipt (Exhibit-18) which explicitly stated that the premises were let for residential use only. Respondent-landlord argued that the tenant, being a school teacher, was prohibited from doing business and no evidence of prior commercial use existed. Respondent-landlord contended that Section 25 of the Bombay Rent Act prohibited any change of user, so the tenant could not claim waiver, and the court had power under Section 73 to compare signatures.

Ratio Decidendi

Change of user under Section 13(1)(a) of the Bombay Rent Act is established when a tenant uses residential premises for commercial purposes without the landlord's consent. A written endorsement on a rent receipt specifying the purpose is conclusive evidence of the agreed user. The prohibition in Section 25 of the Act on allowing residential premises to be used for non-residential purposes renders any permission void and incapable of being waived. The court has inherent power under Section 73 of the Indian Evidence Act, 1872, to compare disputed signatures with admitted ones without requiring expert evidence. Under Article 227 of the Constitution, the High Court does not interfere with concurrent findings of fact by lower courts unless they are perverse or based on no evidence.

Judgment Excerpts

The petitioner-tenant agreed in writing, to use the premises in question for residence purpose only and accordingly, endorsement was made on Exhibit-18. Both the Courts, based on the material, as well as, the evidence on the record, are in line on the following issues. There is no question of waiver of acquiescence if any action is prohibited under the provisions of law. But this does not mean that the Court has not the power to compare the disputed signature with the admitted signature as this power is clearly available under Section 73.

Procedural History

The tenancy commenced on 22nd January, 1977, when the parties exchanged shop No.1 for shop No.4, with an express written agreement that the premises would be used for residential purpose only. The tenant used it for residence until 10th September, 1981, after which he began manufacturing hardboard boxes without permission. On 5th May, 1983, the tenant requested permission to install a machine, which the landlord granted, but the landlord withdrew the permission on 3rd June, 1983 on legal advice. The tenant continued the commercial use. On 23rd December, 1983, the landlord filed a suit for eviction under Sections 13(1)(a) and (k) of the Bombay Rent Act. The trial court decreed the suit on 10th February, 1986. The tenant's appeal was dismissed by the appellate court on 22nd June, 1989. The tenant filed the present writ petition under Article 227 of the Constitution, and the High Court admitted it on 6th July, 1990, staying execution. After hearing, the High Court dismissed the writ petition on 3rd August, 2005, upholding the eviction.

Acts & Sections

  • Bombay Rents, Hotel and Lodging House Rates Control Act, 1947: 13(1)(a), 13(1)(k), 25
  • Indian Evidence Act, 1872: 73
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