Bombay High Court, Nagpur Bench, considers landlord's writ petitions against appellate authority's rejection of eviction on bonafide need under the C.P. & Berar Rent Control Order, 1949. The dispute centers on whether the landlord established genuine requirement for the tenanted premises for family businesses and whether the appellate authority erred in overturning the Rent Controller's findings.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The dispute before the High Court arose out of three writ petitions filed by landlord Ismalibhai Gulam Hussain challenging the orders of the Additional Collector (Appellate Authority) under the C.P. & Berar Rent Control Order, 1949. The landlord sought to evict three tenants occupying ground-floor shop blocks in his four-storeyed building at Akola, claiming bonafide need under clauses 13(3)(v), (vi), and (vii) of the Rent Control Order. He had acquired the building through a family partition in 1979 and contended that the premises were required for offices and businesses of his family concerns, including M/s Asghar & Co., M/s Jafarbhai Akbarali & Co., and M/s Asian Explosives, which were then operating from rented premises belonging to his brother Jafarbhai, who also wanted vacant possession. The landlord further claimed that one of the tenants, Narendra Stores, had secured alternative accommodation. Separately, he sought permission for alterations and repairs to make the premises suitable for his intended use after eviction. The tenants opposed the applications, alleging that the partition was a sham designed to create a ground for eviction, that the landlord had ample alternative space and had constructed other properties, and that the businesses were already shifted to Hasamseth Market. The Rent Controller, Akola, after appreciating evidence, found the need genuine and granted permission in all three cases by orders dated 23/9/1993, 27/9/1993, and 30/5/1994. The tenants appealed to the Additional Collector, who, by a common order dated 27/10/1998 in two cases and a separate order dated 10/12/1998 in the third, reversed the Rent Controller’s findings. The Appellate Authority held that the landlord intended to lease out the premises at higher rent, that the partition deed was devised to oust tenants, and that alternative space was available. It also noted that the landlord had inducted new tenants and that the premises were unsuitable for storing explosives. Aggrieved, the landlord filed three writ petitions in the year 2000, which were heard together. The High Court heard arguments from both sides and reserved judgment on 12.01.2006. The provided text ends without recording the court’s analysis, decision, or final directions.

Headnote

A) Rent Control - Bonafide Need - Clause 13(3)(vi), C.P. & Berar Rent Control Order, 1949 - Eviction for bonafide requirement of landlord's family businesses - Landlord sought premises for M/s Asghar & Co., M/s Jafarbhai Akbarali & Co., and M/s Asian Explosives - Rent Controller found need genuine; Appellate Authority reversed, holding landlord intended to lease out at higher rent and had alternative space - Held by Appellate Authority that landlord failed to prove bonafide need. (Paras 3-5)

B) Rent Control - Partition as Ground for Need - Partition deed dated 1979 relied upon by landlord to assert ownership and need - Tenants alleged partition was nominal and created to establish ground for eviction - Appellate Authority found partition deed was devised to oust tenants and did not reflect true family arrangement - Held by Appellate Authority that the partition was not genuine. (Paras 2, 4)

C) Rent Control - Alternate Accommodation - Clause 13(3)(v), C.P. & Berar Rent Control Order, 1949 - Landlord claimed tenant Narendra Stores had secured alternative shop in Hasamseth Trust Market - Rent Controller accepted the claim and granted permission on that additional ground - Appellate Authority did not separately deal with this ground but reversed overall. (Para 4)

D) Practice and Procedure - Maintainability of Eviction Petition - Non-joinder of all partners in tenant firm - Tenant Bengal Crockery Mart objected that all partners were not made parties - Rent Controller did not find this fatal - Appellate Authority did not specifically address but reversed on merits. (Para 3)

E) Rent Control - Alterations and Repairs - Clause 13(3)(vii), C.P. & Berar Rent Control Order, 1949 - Landlord claimed premises required alterations to make them suitable for intended use after eviction - Court noted that the alterations were contingent on eviction and not an independent ground. (Para 3)

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Issue of Consideration

Whether the Appellate Authority erred in reversing the orders of the Rent Controller granting permission to the landlord to terminate tenancy on the ground of bonafide need under clauses 13(3)(v) and (vi) of the C.P. & Berar Rent Control Order, 1949

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Law Points

  • bonafide need
  • eviction under rent control
  • landlord's right to choose place of business
  • burden of proof on landlord
  • appellate authority's power to reappreciate evidence
  • genuineness of partition deed
  • alternative accommodation by tenant
  • maintainability of eviction petition without all partners
  • alterations and repairs as ground for eviction
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Case Details

2006 LawText (BOM) (01) 56

Writ Petition Nos. 356, 547 and 582 of 2000

2006-01-20

B.P. Dharmadhikari

B.N. Mohta & Sajjad Hussain for petitioner; G.B. Lohiya for respondent nos.4 to 7(D) in Writ Petition No. 356/2000; M.L. Somalwar for respondent no.3 in Writ Petition No. 547/2000 & 582/2000; Assistant Government Pleader for respondent nos.1 and 2 in all petitions

Ismalibhai Gulam Hussain

1. The Additional Collector and others

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Nature of Litigation

Writ petitions under Article 226/227 of the Constitution of India challenging orders of the Appellate Authority under the C.P. & Berar Rent Control Order, 1949, which reversed the Rent Controller's permission to terminate tenancy on grounds of bonafide need.

Remedy Sought

Quashing of the appellate orders and restoration of the Rent Controller's orders granting permission to evict tenants.

Filing Reason

Landlord claimed bonafide need for the tenanted premises for offices and businesses of his family concerns, and for carrying out alterations/repairs.

Previous Decisions

The Rent Controller, Akola, allowed the landlord's applications in all three cases (orders dated 23/9/1993, 27/9/1993, 30/5/1994). The Appellate Authority, respondent No.1, reversed these orders and dismissed the applications (common order dated 27/10/1998 in two cases and separate order dated 10/12/1998 in one case).

Issues

Whether the landlord established a genuine and bonafide need for the tenanted premises under clause 13(3)(vi) of the Rent Control Order. Whether the Appellate Authority was justified in reversing the findings of fact recorded by the Rent Controller regarding the landlord's need. Whether the partition deed was a sham transaction designed to evict tenants. Whether the landlord had alternative suitable accommodation available or could use other premises in his possession. Whether the tenant Narendra Stores had secured alternative accommodation as contemplated under clause 13(3)(v). Whether the eviction application was maintainable in the absence of all partners of the tenant firm.

Submissions/Arguments

Landlord asserted that the Rent Controller correctly appreciated evidence and found bonafide need; the Appellate Authority erroneously interfered with well-reasoned findings; the partition was genuine and need was for family businesses. Landlord contended that he was the best judge of his requirement and the need of his firms was his own need; the tenant Narendra Stores had alternate accommodation. Tenants argued that the partition was bogus and a device to create need; the landlord had ample alternative space and had constructed multistorey houses elsewhere. Tenants submitted that the landlord's claim of bonafide need was a pretense to obtain higher rent; applications were not maintainable due to non-joinder of all partners. Tenants pointed out that the businesses had already shifted to Hasamseth Market and the landlord had inducted new tenants, showing lack of genuine need. Tenants contended that the premises were unsuitable for explosives and the landlord's own conduct revealed malafides.

Judgment Excerpts

These writ petitions are filed by landlord Ismailbhai challenging the reversing orders passed by Appellate Authority thereby refusing permission to him to terminate tenancy of respective tenants and rejecting his claim on account of bonafide need under clauses 13 (3) (vi) of C.P.& Berar Rent Control Order, 1949... In all three cases landlord sought permission under clause (vii) on the ground that the premises could not be put to the use sought for without alterations and repairs. It is apparent that landlord wishes to effect these alterations and repairs to make the premises suitable and useful for business purposes of either himself or his family members.

Procedural History

Landlord filed three separate applications before the Rent Controller, Akola, under the C.P. & Berar Rent Control Order, 1949 seeking permission to terminate tenancy of Bengal Crockery Mart, Narendra Stores, and Firozabad Bangles on grounds of bonafide need and for alterations. The Rent Controller allowed all applications by orders dated 23/9/1993, 27/9/1993, and 30/5/1994. The tenants appealed to the Additional Collector (Appellate Authority). The Appellate Authority, by a common order dated 27/10/1998 (in two appeals) and a separate order dated 10/12/1998, reversed the Rent Controller’s orders and dismissed the applications. Aggrieved, the landlord filed three writ petitions before the High Court in the year 2000. The High Court heard the petitions together and reserved judgment on 12.01.2006.

Acts & Sections

  • C.P. & Berar Rent Control Order, 1949: 13(3)(v), 13(3)(vi), 13(3)(vii)
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