Bombay High Court Upholds Eviction of Tenant for Using Commercial Shop for Residential Purposes Under Section 13(1)(a) of Bombay Rent Act. Change of User from Business to Residence Constitutes Acts Contrary to Section 108(o) of Transfer of Property Act, Even Without Physical Damage.

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

The case involves a dispute between the original plaintiff-respondent, Prabhakar Shravan Shinde, the owner of two shops in Kalyan, and the original defendant-petitioner, Harilal Anurup Awadhia (since deceased, represented by legal heirs), who was a monthly tenant of one shop (the suit premises) for a rent of Rs. 35/-. The plaintiff filed Regular Civil Suit No. 57/1981 seeking eviction of the tenant on multiple grounds: arrears of rent, unauthorized subletting to defendant nos. 2 to 5 (the tenant's brother, sister, brother-in-law, and nephew), permanent additions and alterations (including erection of a loft and replacement of a door removing a pillar), and nuisance. The trial court decreed the suit only on the ground that the tenant had committed acts contrary to Section 108(o) of the Transfer of Property Act, 1882, by allowing his relatives to use the commercial shop for residential purposes, thereby attracting eviction under Section 13(1)(a) of the Bombay Rent (Hotels and Lodging House Rates Control) Act, 1947. The other grounds were rejected. The tenant appealed to the District Court, which dismissed the appeal, confirming the eviction decree. The tenant then filed a writ petition in the Bombay High Court. The High Court examined the concurrent findings that the suit premises were dominantly used for residence by defendant nos. 3 to 5, who were not tenants. The court held that such change of user from business to residence constitutes an act contrary to Section 108(o) of the Transfer of Property Act, even without physical damage, and that the lower courts' findings were not perverse. The court distinguished the Supreme Court judgment in Sant Ram v. Rajinder Lal, which required damage or destruction, noting that the present case involved a clear change of user. The court also rejected the tenant's argument that the bar under Section 25 of the Bombay Rent Act applies only to residential premises used for commerce, not vice versa. The writ petition was dismissed, upholding the eviction decree.

Headnote

A) Rent Control - Eviction - Change of User - Section 13(1)(a) Bombay Rent Act, 1947 read with Section 108(o) Transfer of Property Act, 1882 - The court held that using a commercial shop for residential purposes by the tenant's relatives constitutes a change of user amounting to an act contrary to Section 108(o) of the Transfer of Property Act, even if no physical damage is caused to the premises. The concurrent findings of the lower courts that the premises were dominantly used for residence were not perverse and did not warrant interference under Article 227 of the Constitution. (Paras 9-14)

B) Rent Control - Eviction - Damage to Premises - Section 13(1)(a) Bombay Rent Act, 1947 - The court clarified that for eviction under Section 13(1)(a) read with Section 108(o) of the Transfer of Property Act, it is not necessary that the tenant's act causes actual damage or destruction to the property; a change of user that is inconsistent with the purpose of letting is sufficient. The judgment in Sant Ram v. Rajinder Lal (1979) 2 SCC 274 was distinguished on facts. (Paras 11-13)

C) Rent Control - Eviction - Residential Use of Commercial Premises - Section 13(1)(a) Bombay Rent Act, 1947 - The court rejected the tenant's argument that the bar under Section 25 of the Bombay Rent Act applies only to use of residential premises for commercial purposes and not vice versa. The court held that the tenancy was for business purposes only, and the dominant use of the shop for residence by the tenant's relatives constituted a breach of the terms of tenancy. (Paras 14-15)

D) Rent Control - Eviction - Concurrent Findings - Article 227 of the Constitution - The court declined to interfere with the concurrent findings of fact by the trial court and appellate court, as they were based on evidence and not perverse. The writ petition was dismissed. (Paras 16-18)

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Issue of Consideration

Whether the use of a commercial shop for residential purposes by the tenant's relatives constitutes an act contrary to the provisions of Section 108(o) of the Transfer of Property Act, 1882, so as to attract eviction under Section 13(1)(a) of the Bombay Rent (Hotels and Lodging House Rates Control) Act, 1947, even in the absence of physical damage to the premises.

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Final Decision

The High Court dismissed the writ petition, upholding the eviction decree passed by the trial court and confirmed by the appellate court. The court held that the concurrent findings of fact regarding change of user were not perverse and did not warrant interference under Article 227 of the Constitution.

Law Points

  • Section 108(o) Transfer of Property Act
  • 1882
  • Section 13(1)(a) Bombay Rent (Hotels and Lodging House Rates Control) Act
  • 1947
  • Change of user
  • Residential use of commercial premises
  • Damage or destruction not necessary for change of user
  • Concurrent findings of fact
  • Scope of writ jurisdiction under Article 227
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Case Details

2024 LawText (BOM) (10) 164

WRIT PETITION NO. 6252 OF 1999

2024-10-16

SANDEEP V. MARNE, J.

2024:BHC-AS:41180

Mr. Tejas Deshumukh with Mr. Harishchandra Chavan, for the Petitioners. Mr. Sandip Khurkute, for the Respondent.

Shri. Harilal Anurup Awadhia (since deceased through legal heirs) 1A. Shyamavtar Harilal Awadhia alias Chauhan and Ors.

Prabhakar Shravan Shinde

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Nature of Litigation

Civil writ petition challenging concurrent eviction decrees passed by trial court and appellate court under the Bombay Rent Act.

Remedy Sought

Petitioners (original defendants) sought setting aside of the eviction decree and dismissal of the suit.

Filing Reason

Petitioners challenged the judgment and order dated 26 August 1999 of the II Additional District & Sessions Judge, Kalyan, dismissing their appeal and confirming the eviction decree dated 12 January 1994 passed by the Joint Civil Judge Junior Division, Kalyan.

Previous Decisions

Trial Court decreed eviction on ground of commission of acts contrary to Section 108(o) of Transfer of Property Act read with Section 13(1)(a) of Bombay Rent Act; other grounds rejected. Appellate Court dismissed appeal confirming eviction.

Issues

Whether the use of a commercial shop for residential purposes by the tenant's relatives constitutes an act contrary to Section 108(o) of the Transfer of Property Act, 1882, so as to attract eviction under Section 13(1)(a) of the Bombay Rent Act, 1947, even in the absence of physical damage to the premises. Whether the concurrent findings of the lower courts that the suit premises were dominantly used for residence are perverse and warrant interference under Article 227 of the Constitution.

Submissions/Arguments

Petitioners argued that Section 108(o) requires damage or destruction to the property, and mere change of user without damage does not attract eviction. They relied on Sant Ram v. Rajinder Lal and argued that the bar under Section 25 of the Bombay Rent Act applies only to use of residential premises for commercial purposes, not vice versa. Respondent argued that the premises were let out solely for business, and the dominant use for residence by defendant nos. 3 to 5 constituted a clear breach of tenancy terms. They relied on Arul Jothi v. Lajja Bal and Jainath Matadin Chourasia v. Gopikishan Ramgopal Garg.

Ratio Decidendi

For eviction under Section 13(1)(a) of the Bombay Rent Act read with Section 108(o) of the Transfer of Property Act, it is not necessary that the tenant's act causes actual damage or destruction to the property; a change of user that is inconsistent with the purpose of letting, such as using a commercial shop for residential purposes, constitutes an act contrary to Section 108(o) and is a valid ground for eviction.

Judgment Excerpts

The suit has ultimately been decreed only on singular ground of commission of acts contrary to the provisions of section 108(o) of the Transfer of Property Act read with Section 13(1)(a) of the Bombay Rent Act. Perusal of the findings recorded by the Trial Court on Issue No.4 relating to commission of acts contrary to the provisions of Section 108(o) of the Transfer of Property Act, shows that the issue is answered in the affirmative in favour of the Plaintiff on the ground that Defendant Nos.3 to 5 were found to be dominantly using the suit shop for the purpose of residence. The ground of making additions and alterations and thereby causing damage to the suit premises is rejected by both the Courts. That there is no finding of damage to the suit premises and that therefore the ground under Section 13(1)(a) of the Bombay Rent Act has erroneously been accepted.

Procedural History

Plaintiff filed Regular Civil Suit No. 57/1981 in the Court of Civil Judge Junior Division, Kalyan, seeking eviction. Trial Court decreed eviction on 12 January 1994 on ground of Section 13(1)(a) read with Section 108(o). Defendants filed Regular Civil Appeal No. 218/1996 in the Court of District Judge, Thane, which was dismissed on 26 August 1999. Defendants then filed Writ Petition No. 6252 of 1999 in the Bombay High Court, which was dismissed on 16 October 2024.

Acts & Sections

  • Transfer of Property Act, 1882: Section 108(o)
  • Bombay Rent (Hotels and Lodging House Rates Control) Act, 1947: Section 13(1)(a), Section 25
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