High Court Kerala High Court

C.O.Venugopal vs R.Rajalakshmi on 19 August, 2009

Kerala High Court
C.O.Venugopal vs R.Rajalakshmi on 19 August, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

RCRev..No. 224 of 2005()


1. C.O.VENUGOPAL, VAISALI TEXTILES,
                      ...  Petitioner

                        Vs



1. R.RAJALAKSHMI,
                       ...       Respondent

2. BEENA KRISHNA MOORTHY,

3. DEENA SATHEESH, W/O.P.SATHEESH,

                For Petitioner  :SRI.S.SANAL KUMAR

                For Respondent  :SRI.T.KRISHNAN UNNI

The Hon'ble MR. Justice PIUS C.KURIAKOSE
The Hon'ble MR. Justice K.SURENDRA MOHAN

 Dated :19/08/2009

 O R D E R
                                                                                            C.R.
           PIUS C.KURIAKOSE & K.SURENDRA MOHAN, JJ.
        ------------------------------------------------------------------------------------
                 R.C.R. NOS: 224, 334, 335,343,349, 361,
                           363, 372, 570, 592 OF 2005
        -----------------------------------------------------------------------------------
                      Dated this the 19th August, 2009.

                                        JUDGMENT

SURENDRA MOHAN, J.

These Rent Control Revisions are filed by the tenants

challenging the common judgment dated 21.12.2004 of the

Additional Rent Control Appellate Authority, Alappuzha in

connected Rent Control Appeals. The Rent Control Appeals were

filed by the respondents-landlords challenging the dismissal of the

Rent Control Petitions filed by them against the tenants. The Rent

Control Appellate Authority reversed the findings of the Rent

Controller and ordered eviction of the revision petitioners under

Section 11(3) of the Kerala Buildings (Lease and Rent Control) Act,

1965, hereinafter referred to as the ‘Act’.

2. The revision petitioners are all tenants in occupation of

different shop rooms in a line building, in the heart of Alappuzha

town. The revision petitioners have been in occupation of the shop

rooms in their possession for considerably long periods of time and

the rent paid by them is also nominal. They are conducting various

businesses. The Rent Control petitions were tried together since

RCR 224/2005 etc. 2

the landlords in respect of all the premises are same and the

contentions raised by the parties are also common.

3. The line building situate in Survey No: 818/8, C1, C2, A2,

D1, 1/1 and 818/9 A2 belonged to late Radhakrishna Reddiar,

having acquired ownership and possession over the same as per

registered partition deed No: 18/1955. The first respondent is the

wife and the second and third respondents are the daughters of

late Radhakrishna Reddiar. They are his sole legal heirs, on whom

the property has devolved on his death. After the death of

Radhakrishna Reddiar the tenants in occupation of the building

attorned to the respondents and started paying rent in respect of

the premises to them. Thus, the petitioners in all these revision

petitions are tenants under the respondents.

4. The revision petitioners are all in occupation of separate

shop rooms forming part of the same building. They are

conducting various businesses of their own and paying rent at

different rates to the landlords.

5. In the above circumstances, the landlords filed separate

Rent Control Petitions for eviction of all the tenants alleging that

they required the building for their bonafide own occupation.

According to them, the existing building was old and, therefore,

RCR 224/2005 etc. 3

they wanted to demolish the building and construct a spacious

building in which, they wanted to start a textile shop. According to

the landlords, it was necessary to demolish the building for the

purpose of construction of the new building so as to provide the

same with proper road access and other conveniences. It was

contended by the landlords that the first respondent was having

sufficient experience in running a textile shop as she was doing the

business in the name and style, ‘Sowbhagya Textiles’. The second

respondent who is the eldest daughter is working in the IBM

Computers, U.S.A. She was prepared to join the business since it

was the desire of both herself and her husband to settle in India.

She also has the necessary financial resources to help her mother

in setting up and developing the business. The third respondent

who is the youngest daughter is without any employment.

Therefore, she wants to help her mother in conducting the

business. Her husband who is a businessman in the textile field

was prepared to give proper guidance and assistance to them in the

business. Though they requested the tenants for vacant possession

of the premises, they did not vacate the premises. Therefore, the

Rent Control petitions were filed.

6. The Rent Control Petitions were resisted by the tenants on

RCR 224/2005 etc. 4

the basis of identical contentions. According to them the need put

forward was only a ruse for eviction. The object of the respondents

was to let out the rooms on a higher rent. They had no need of the

schedule shop rooms for starting a textile shop. They have no plan

or licence to construct a building after demolishing the existing

structure. It was contended that the landlords did not have the

capacity or ability to construct the new building. Further the

tenants contended that the first petitioner who was a widow was

not capable of doing any business. The second respondent was a

person who was permanently settled in America with no interest in

India. She has no interest to settle in India or to start any business.

According to the tenants, the third respondent’s husband was

conducting a leading textile business at Alappuzha in the name

and style ‘Swamees’. It was pointed out that eviction proceedings

had not been initiated against some of the tenants. A further

contention was raised that the husband of the first respondent had

been conducting a textile shop in the building on the western side

of the scheduled shop rooms in the name and style ‘Saubhagya

Textiles’, which building was already in her possession.

Therefore, if the landlords were desirous of starting a business,

they could very well start the same in the said premises. On the

RCR 224/2005 etc. 5

above contentions they prayed for dismissal of the Rent Control

Petition.

6. The Rent Control Court tried all the Rent Control Petitions

together. The evidence in the cases consists of the oral testimonies

of P.W.1 and R.Ws 1 to 9 and Exts. A1 to A5 and B1 to B3

documents.

7. The Rent Control Court considered the contentions of the

rival parties and held that the bonafide need put forward by the

landlords was not proved. Hence, it was found that they were not

entitled to evict the tenants from the petition schedule shop rooms.

The Rent Control Court therefore dismissed all the petitions by a

common order. The respondents/landlords challenged the order

of the Rent Control Court before the Rent Control Appellate

Authority by filing separate appeals in all the cases. All the Rent

Control Appeals were heard and disposed of together by the Rent

Control Appellate Authority. The Appellate Authority reversed the

findings of the Rent Control Court and found that the bonafide

need projected by the landlords was established to be genuine and

bonafide. Therefore, the Appellate Authority set aside the

common order of the Rent Control Court and ordered eviction of

the tenants. It is the said common order of the Rent Control

RCR 224/2005 etc. 6

Appellate Authority that is assailed by the revision petitioners

before us.

8. We have heard the counsel appearing for the respective

tenants as well as the landlords, in detail. We have been taken

through the evidence in the cases both oral and documentary. We

have also considered the contentions of the parties.

9. The only point that arises for consideration in these

revisions is whether the landlords have been able to establish the

bonafide need put forward by them.

10. It is contended by the counsel for the revision petitioners

that though the case of the landlords is that they were proposing to

demolish the existing building and to construct a new building in

the property They have not obtained a proper plan and licence for

such construction. In the absence of any such plan or licence, it is

contended that no eviction could be granted. As rightly noted by

the Appellate Authority, eviction is sought in these cases under

Section 11(3) of the Act and not under Section 11(4)(iv) thereof.

Therefore, the requirement of production of a plan and licence need

not be insisted upon in an action under Section 11(3) of the Act.

Further, it is to be noted that in the present case in fact Exts.A3

and A4 plans have been produced by the landlords. Therefore, the

RCR 224/2005 etc. 7

fact that necessary plans have been prepared by the landlords

cannot be disputed. The requirement of a licence or a building

permit is necessary only for starting construction and can be

obtained subsequently. Therefore, as rightly found by the

Appellate Authority it is sufficient that the landlords obtain a

building permit before they start the actual construction. It has

been further found by the Appellate Authority that the landlords

have the necessary financial capacity to start the business and that

they have the necessary experience to conduct the same. The

counsel for the revision petitioners have not been able to point out

anything to assail the above findings of the Appellate Authority.

Therefore, we confirm the finding of the Rent Control Appellate

Authority that the landlords have been successful in establishing

the need projected by them under Section 11(3) of the Act.

11. Counsel for the revision petitioners have pointed out that

the landlords had not filed petitions for eviction against all the

tenants in the building. It is pointed out that the two tenants, who

are conducting business in the name ‘Prakruthi Stores’ and

Bhagavathy Textiles’ were not sought to be evicted. It is worth

noticing that when P.W.1 was in the box, she was questioned on

this aspect. Her explanation was that the said two tenants had

RCR 224/2005 etc. 8

already agreed to vacate the rooms occupied by them. Therefore,

no petitions for eviction were filed against them. However, it is

pointed out that they could have been examined to prove the above

fact or at least affidavits could have been obtained from them in

proof of the said statements. As rightly found by the Appellate

Authority, just because the said two tenants were not examined or

their affidavits obtained, it cannot be concluded that the

explanation of P.W.1 was not true.

12. Therefore the next question is whether it is necessary

that a litigation should precede the recovery of possession of the

tenanted premises by the landlord in all cases, as a general rule?

There is no presumption that as a general rule, a litigation has

to invariably precede the surrender of vacant possession of a

tenanted premises to the landlord. It is common knowledge that

many tenants vacate the premises occupied by them accepting and

appreciating the genuineness of the need of their landlords.

Especially so, in situations where the landlord and tenant maintain

close and cordial relationship among themselves. It is only in cases

where the tenant disputes the bonafides of the need put forth by

the landlord that the Rent Control Court is called upon to consider

the question of genuineness of the need and to pass orders of

RCR 224/2005 etc. 9

eviction. Though it has become common place for tenants to resist

the need of the landlords by protracted litigation and to continue in

possession for as long as possible, especially in the case of

commercial premises, such litigation cannot be held to be

necessary in all cases, as a rule.

13. At the same time, we do not think that the apprehensions

expressed by the tenants do not have any substance at all. The

conduct of the landlords in not initiating any action for evicting the

said two tenants has to be scrutinized closely with a view to

ensuring that the justification put forward is genuine. It is

contended that the landlords should not be permitted to pick and

choose in the matter of eviction of tenants who are all occupying

similar premises in the same building. We feel that the

apprehensions of the tenants can be set at rest by providing

appropriate safeguards to ensure that the said tenants are also got

vacated while evicting the revision petitioners.

14. A contention has been put forward by the tenant in RCR

592/2005 that he is occupying a separate building located in the

same property and that it was possible to reconstruct the existing

building without evicting him. However, the evidence of P.W.1 and

the plans Exts.A3 & A4 show that the said building is also required

RCR 224/2005 etc. 10

to be demolished to accommodate the proposed construction.

Therefore, the Appellate Authority has rejected the above

contention. We do not find any grounds to interfere with the said

finding.

15. As a last submission, counsel for the revision petitioners

made an appeal for the grant of a sufficiently long period of time, a

period of one year, to vacate the premises. Though we are not

inclined to grant one year’s time, considering their long occupation

of the premises, we feel that their request can be sympathetically

considered. Accordingly, we feel that the tenants could be granted

time up to 28.2.2010 subject to appropriate conditions.

16. In view of the above, the Rent Control Revisions are

dismissed confirming the common judgment passed by the

Additional Rent Control Appellate Authority, Alappuzha, subject to

the following conditions:-

1) The tenants are granted time upto 28.2.2010 to

surrender vacant possession of the premises to the

landlords on condition that each one of the revision

petitioners shall file separate affidavits before the Rent

Control Court or the Execution Court as the case may be,

unconditionally undertaking to vacate the premises on or

before the said date within 3 weeks of the date of receipt of

a copy of this judgment.

RCR 224/2005 etc. 11

2) The revision petitioners shall pay all arrears of rent

due in respect of the premises to the landlords and shall

continue to pay the future rent in respect of the premises

regularly till they surrender vacant possession thereof.

3) The landlords shall produce the approved pla n

and building permit in respect of the proposed construction

before the Execution Court for perusal before the time

fixed for the tenants to vacate the premises;

4) The Execution Court shall ensure that the tenants

in occupation of the shop rooms from where the business

of ‘Prakruthi Stores’ and ‘Bhagavathy Textiles’ are being

conducted are also vacated before 28.2.2010.

5) Delivery warrants shall be issued by the execution

court for compelling the eviction of these revision

petitioners only after conditions 3 and 4 above are

complied with.

PIUS C.KURIAKOSE
Judge

K. SURENDRA MOHAN
Judge

jj