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Porkrakutty v. Attancheri Velappil Mammad .
Structured Summary of the Opinion
Factual and Procedural Background
This matter is a civil revision petition challenging an order made in revision under Section 12-B of the Madras Buildings (Lease and Rent Control) Act by the District Judge of South Malabar in C.R.P. No. 10 of 1952.
The essential factual matrix as stated in the opinion:
- The respondent before the court, A.V. Mammad, had been carrying on business in a rented building belonging to one Aydress.
- In 1950 the respondent purchased the non-residential building that is the subject of the dispute for Rs. 5,500 with the intention of doing business there.
- Immediately after purchase the respondent caused a lawyer’s notice to be issued to the petitioner (the tenant occupying that non-residential building) to surrender possession. The petitioner agreed to pay stipulated rent but refused to surrender possession.
- The landlord (respondent) relied on two grounds for eviction in the Rent Controller's Court: (a) that the petitioner had sublet the premises to two other persons without permission (claimed under S.7(2)(ii)(a)), and (b) that the landlord required the premises for his own business (claimed under S.7(3)(iii)).
- The two persons alleged to be sub-lessees did not oppose the application and claimed to be sub-lessees of portions of the premises; the petitioner denied sub-letting and asserted possession of the whole building.
- The Rent Controller and the appellate Court found against the landlord on the second ground, concluding the landlord had obtained an eviction order against him by default (Ex. P.6) and therefore the landlord’s claim was not bona fide under the cited provisions; they dismissed the landlord’s petition.
- On revision the learned District Judge held that the landlord’s claim was bona fide for the purposes of that application and ordered eviction. The present civil revision petition challenges that order in revision.
Legal Issues Presented
- Whether the landlord's claim that he required the non-residential premises bona fide for his own business (a ground for eviction under the Madras Buildings (Lease and Rent Control) Act) was genuine — i.e., whether the landlord's claim was bona fide.
Arguments of the Parties
Petitioner (tenant) — principal contentions
- Denied that any sub-letting had occurred and asserted possession of the entire building.
- Contended that the eviction order obtained against his landlord in respect of the building of which his landlord was a tenant had been obtained collusively, and therefore the landlord's subsequent claim to recover possession for his own business lacked bona fides.
Respondent (landlord / purchaser) — principal contentions
- Asserted that he required the premises bona fide for his own business; after purchasing the building he gave notice to the tenant to surrender possession.
- Presented evidence (including his own testimony and that of two witnesses) and relied upon the surrounding circumstances to show a genuine present need to occupy the premises for his business.
- The two persons alleged to be sub-lessees did not oppose the eviction application and admitted they were sub-lessees.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Raman Nayar v. Kesavan Nambudiri, S.A. No. 42 of 1939 (Mad) | Interpreted phrase “requires the holding bona fide” as involving more than mere desire — indicating an element of need in some sense. | The opinion cited this construction as part of the background judicial discussion on the meaning of “bona fide” and contrasted it with other authorities. |
| Rekhachand Doogar v. J.R. D'Crua, AIR 1923 Cal 223 | Buckland J.'s observation that the statutory word “requires” involves more than mere wish and implies an element of need. | Referenced to illustrate the interpretation that “requires” denotes more than desire; used in the comparative survey of authorities on bona fide requirement. |
| Achuthan v. Katheeja Bi, S.A. No. 538 of 1939 (Mad) | King J.'s view that “bona fide” applies to the landlord's statements/intentions — what matters is whether the landlord's claim or demand is made bona fide, not an objective state of circumstances. | Presented as a contrasting authority to Raman Nayar; the court considered both approaches in evaluating bona fides. |
| Narikkal Chathan v. Kesavan Namboodiri Karnavan, AIR 1942 Mad 242 | Bench decision adopting King J.'s interpretation: bona fide requirement means the landlord must have a genuine intention to cultivate/use (i.e., subjective genuineness), not necessarily prove 'need'. | Noted by the court as an accepted interpretation in a Bench decision and as part of the jurisprudential context; used in assessing the standard for bona fides. |
| Basantlal v. P.C. Chakravarty, AIR 1950 Cal 249 | Held that gross unreasonableness of a landlord's claim may indicate lack of bona fides; the extent of unreasonableness to infer mala fides depends on facts. | Referred to to show that objective unreasonableness can, in appropriate circumstances, be evidence of mala fides; the court considered this principle in its analysis. |
| Saleh Abraham v. Manakji Cowasji, AIR 1924 Cal 57 | Richardson J.'s statement that the landlord is not acting bona fide unless he reasonably requires the house; “reasonably requires” implies more than desire but less than absolute necessity. | Cited to support the proposition that bona fide involves a genuine present need or reasonable requirement; used in the court’s evaluation of the respondent's need. |
| Atmaram v. Narayan, AIR 1922 Bom 109 | Held that bona fides, being a fact in issue, may be proved in the ordinary way; there is no rule that the plaintiff must testify personally to prove bona fides. | Relied upon to show that proof of bona fides can be by ordinary evidential means and is not restricted to the plaintiff's testimony alone. |
| Krishnaji v. Motilal, AIR 1929 Bom 337 | Held that courts may take notice of events occurring after the institution of the suit and mould the decree according to circumstances prevailing at the time of making the decree. | Invoked to support the court’s willingness to consider events subsequent to institution (such as changed circumstances) in determining whether relief remains appropriate; applied in examining post-institution facts. |
| Shankerbhai Manorbhai v. Motilal Ramdas, AIR 1925 Bom 122; Rustomji v. Purshothamdas, 3 Bom LR 227; Sakharam v. Hari, 6 Bom 113 | Authorities recognizing that appellate courts may take into account events subsequent to decree in moulding relief. | Referenced as supportive authorities for the general proposition that courts can consider subsequent events; used as part of the legal context. |
| Rustomji Dinshaw Billimoria v. Dosibai Rustomji Master, AIR 1921 Bom 34 | Affirmed that an owner is ordinarily entitled to occupy his own premises; the Act aims to prevent eviction motivated solely by re-letting at higher rent or extortion. | Cited by the court to support the proposition that an owner who says he wishes to occupy his own premises is generally entitled to do so and that such an intention is not unreasonable per se. |
Court's Reasoning and Analysis
The court proceeded by (i) clarifying the central question — whether the landlord's claim was bona fide — and (ii) surveying relevant authorities and principles before applying them to the facts.
-
Definition and legal backdrop:
- The court began by citing a general lexical definition of “bona fide” (from a Law Lexicon) to frame the meaning as “in good faith; without fraud or deception; honestly.”
- It then summarized judicial interpretations under related tenancy and rent-control statutes emphasizing two strands of authority: one that treats “requires” or “needs” as importing an element of objective need (Buckland J. / Raman Nayar), and another that treats “bona fide” as addressing the genuineness of the landlord’s intention or statement (King J. / Narikkal Chathan).
-
Comparative principles:
- The opinion noted that other courts have held that gross unreasonableness in the landlord’s conduct may be evidence of mala fides (Basantlal), and that “reasonably requires” denotes something more than mere desire but less than absolute necessity (Saleh Abraham).
- It also recited authorities establishing that bona fides is a fact that may be proved like any other and that courts can take into account events subsequent to institution when shaping relief (Atmaram; Krishnaji and related Bombay authorities).
-
Application to the facts:
- After applying these principles to the record, the court concluded that, based on the respondent’s own evidence, the evidence of two witnesses, and the surrounding circumstances on the record, the respondent had demonstrated a genuine present need for the non-residential building for his occupation.
- The court expressly considered, and rejected, the argument that the landlord’s failure to take all possible steps to avoid being evicted from his prior rented building rendered his present claim mala fide: the court held that such failure did not, by itself, make the claim mala fide.
- The court relied on Rustomji Dinshaw Billimoria and similar authority for the proposition that an owner who wishes to occupy his own premises is ordinarily entitled to do so and that eviction for the owner's genuine occupation is not inherently unreasonable or mala fide.
- The court agreed with the District Judge’s finding that alleged collusion regarding the earlier eviction (Ex. P.8 referenced in the lower-court reasoning) was irrelevant to the landlord’s bona fides in respect of the present claim for eviction to do his own business.
- Finally, the court noted that nothing had occurred subsequently to alter this conclusion; rather, the passage of time reinforced the respondent’s predicament and his case for being put into possession of the premises he had purchased for his business.
Holding and Implications
Holding:
The civil revision petition is dismissed with costs; the revision is dismissed.
Implications:
- The court affirmed the conclusion that the landlord's claim to require the premises bona fide for his own business was genuine; it sustained the conclusion reached by the District Judge in revision that the landlord's claim was bona fide and that eviction was properly ordered in that application.
- The direct effect is that the civil revision challenging the District Judge's order fails and the order appealed in revision (which granted the landlord eviction for occupation) stands.
- The opinion does not state that it is establishing any new legal precedent beyond applying and reconciling existing authorities; rather, it applies established principles to the facts and upholds the order below. No broader novel legal rule is announced in the text of the opinion.
Final notation from the opinion: "This civil revision petition, totally devoid of merits, is dismissed with costs. Revision dismissed."
1. This is a civil revision petition which has been filed against the order made in revision under Section 12-B of the Madras Buildings (Lease and Rent Control) Act passed by the learned District Judge of South Malabar in C.R.P No. 10 of 1952.
2. The facts are: The respondent before us A.V Mammad has been carrying on business, in a rented building belonging to one Aydress. Subsequently in 1950 he purchased a non-residential building, which is the subject-matter of controversy, for Rs. 5500 for doing business. Immediately after the purchase he caused a lawyer's notice to be issued to the petitioner before us who was occupying that non-residential building as a tenant carrying on business therein to surrender possession. The petitioner sent a reply agreeing to pay the stipulated rent but declined to surrender possession of the premises. I have just now mentioned that the respondent before us was occupying a non-residential building. The landlord of the building on the foot of arrears of rent for two months took out proceedings in the Rent Controller's Court and obtained an eviction order. Thereupon this respondent before us has sought the eviction of the petitioner before us on two grounds, viz., that this petitioner before us has sublet the premises to two other persons without his permission and was therefore liable to be evicted under S. 7(2)(ii)(a) and secondly, that he the landlord required the premises for his own business under S. 7(3)(iii). Those two persons did not oppose the application and submitted that they were sub-lessees of portions of the premises under the petitioner before us. The petitioner herein contended that there was no sub-letting but that he was in possession of the entire building. In regard to the second ground viz., that the premises were required for the business of the landlord the first respondent in the lower Court (petitioner herein) contended that the order of eviction passed against his landlord in respect of the building of which he the landlord was the tenant was obtained collusively & therefore there were no bona fides in this claim and that the landlord was not entitled to eviction.
3. In regard to the first ground, all the Courts below, viz., the Rent Controller, the appellate Court and the District Judge have come to the conclusion that the sub-letting has not been made out to their satisfaction and therefore it does not concern us here.
4. Then in regard to the second ground, the Rent Controller and the appellate Court found that the respondent herein had managed to get an order of eviction passed against him under Ex. P. 6 by defaulting in the payment of rent and therefore the claim of the landlord was not bona fide under S. 7(3Ka)(iii), proviso (ii)(e) and dismissed the petition of the landlord. The learned District Judge in revision held that the claim of the landlord was bona fide so far as this application was concerned and ordered eviction. Hence this civil revision petition.
5. The point for consideration is whether the claim of the landlord was bona fide.
6. The term “bona fide” has been explained in the Law Lexicon of British India by Mr. P. Ramanatha Aiyar (M.L.J publication) as follows:
“In good faith; without fraud or deception; honestly as distinguished from bad faith; openly; sincerely. That we fray is done bona fide, which is done really, with a good iaith, without any fraud or deceit (Tomlins Law Dictionary).”
7. This term has also been the subject-matter of judicial discussion with reference to the Malabar Tenancy Act, (S. 20) where the phrase “the landlord requires the holding bona fide for his own cultivation” had to be interpreted. In — ‘Raman Nayar v. Kesavan Nambudiri’, S.A No. 42 of 1939 (Mad) (A), Venkataramana Rao J. construed it as follows:
“The language used is ‘requires the holding bona fide’. A mere desire on the part of the landlord even if bona fide, to have the land for his own cultivation is not enough and in coming to a conclusion on the question of the landlord's need being bona fide, the Court should in each case consider whether the circumstances are such that the land must be restored to the landlord for his own cultivation etc. etc.,”
8. In that connection the learned Judge referred to the observations of Buckland J. in — ‘Rekhachand Doogar v. J.R D'Crua’, AIR 1923 Cal 223 (B), a decision on Section 11 of the Calcutta Rent Act. In that case Buckland J. observed:
“I do not think it is enough that a plaintiff in order to defeat a plea under the Calcutta Rent Act should merely say that he desires the premises bona fide for his occupation. The word in the Act is not ‘desires’ but ‘requires’. This in my opinion involved something more than a mere wish and it involves an element of need to some extent at least.”
9. This definition of Venkataramana Rao J. was differed from by King J. in — ‘Achuthan v. Katheeja Bi’, S.A No. 538 of 1939 (Mad) (C). He held that
“what is meant by a landlord requiring the holding bona fide is that he asks for or demands it bona fide. The expression “bona fide” cannot apply to a state of circumstances but only to the statements or intentions or actions of a human being. All therefore that is necessary in my opinion is for the Court to decide whether, when the landlord demands or asks for or sues for any land on the ground that he wishes to cultivate it himself, his statement that he wishes to cultivate it himself is a statement made bona fide”.
10. This was the subject-matter of a Bench decision in — ‘Narikkal Chathan v. Kesavan Namboodiri Karnavan’, AIR 1942 Mad 242(2)(D), where the interpretation of King J. was accepted and the words “the landlord requires the holding bona fide for his own cultivation etc.” were held to mean that the landlord should have a genuine intention to cultivate the land and not that he should show a real need to do so. In fact the Section 20 of the Malabar Tenancy Act, has been subsequently amended by substituting the word “need” for the original word “requires”.
11. In connected Rent Control Acts of other States the phrase used herein “reasonable and bona fide requirement of the landlord” has been construed. It will be noticed that in the Madras Act the words used are “that the claim of the landlord is bona fide”. In a Calcutta case which arose under the 1948 West Bengal Premises Rent Control Act, Mukherjee J. had occasion to deal with the connotation of the word “bona fide requirement” of the landlord. He held that gross unreasonableness of the landlord may, in proper circumstances lead the Court to the conclusion that the landlord's requirement is not, bona fide, and that how much unreasonableness will be regarded by the Court as evidence of mala fides of the landlord will depend on the facts and circumstances of the case: — ‘Basantlal v. P.C Chakravarty’, AIR 1950 Cal 249 (E). Richardson J. in — Saleh Abraham v. Manakji Cowasji’, AIR 1924 Cal 57 (F), has held: “I agree that the landlord is not acting bona fide under the Act unless he reasonably requires the house for his occupation”. The words “reasonably requires” connote something, more than a desire to have something, and much less than absolute necessity. There can be no doubt that the landlord must have a genuine present need of the building for his occupation.
12. In this connection two things may be borne in mind. Bona fides may be proved in an ordinary way like any other fact in issue or a relevant fact. There is no such rule of law that bone fides being a subjective matter can only be proved by the plaintiff stepping into the witness-box: — ‘Atmaram v. Narayan’, AIR 1922 Bom 109 (G). Secondly, although ordinarily the decree or order in a suit or proceeding should accord with the rights of the parties as they stand at the date of its institution, yet where it is shown that the original relief claimed has by reason of subsequent change of circumstances become inappropriate or that it is necessary to base the decision of the court on the altered circumstances in order to shorten litigation, or to do complete justice between the parties, it is incumbent upon a Court of justice to take notice of events which have happened since the institution of the suit and to mould its decree according to the circumstances as they stand at the time the decree is made: — ‘Krishnaji v. Motilal’, AIR 1929 Bom 337 (H). The Bombay High Court has accepted the view that the Court can even in appeal take into consideration events subsequent to the decree. Vide — ‘Shankerbhai Manorbhai v. Motilal Ramdas’, AIR 1925 Bom 122 (I), — ‘Rustomji v. Purshothamdas’, 3 Bom LR 227 (J) and — ‘Sakharam v. Hari’, 6 Bom 113 (K).
13. Therefore, applying these decisions let us examine the facts in the instant case. There can be no doubt as concluded by the learned District Judge from what is disclosed by the evidence of 1 the respondent before me and his two witnesses has well as the surrounding circumstances of the case made out from the record that the respondent before us had a genuine present need for the non-residential building for his occupation.
14. Even assuming what has been deduced from circumstances by the Courts below viz., that he did not take all steps that he could have possibly taken to avoid being evicted from the rented building in which he was carrying on business this would not make his claim a mala fide one. It has been well pointed out in — ‘Rustomji Dinshaw Billimoria…Plaintiff v. Dosibai Rustomji Master…Defendant .’, AIR 1921 Bom 34 (L), as follows:
“The only question is whether the plaintiff requires the premises in suit reasonably and bona fide for his use and occupation. Ordinarily speaking, an owner of premises, if he says he wishes to use them for his own purposes, is entitled to do so. What the Rent Act endeavours to provide for is the case of a landlord who evicts the existing tenants in order that he may let to another tenant at a higher rent, or exact a higher rent from the tenant on a threat of eviction. It seems to me that the question in this case whether the plaintiff was reasonably dissatisfied with the premises which he rented in Girgam is irrelevant, because in any event the plaintiff was entitled to live in his own premises.
He was not bound to continue in rented premises with all the uncertainties of that tenure. So that a great deal of irrelevant matter has been introduced into these suits……It cannot, therefore, be said that the plaintiff is acting unreasonably in saying that he wishes to occupy………”
15. I therefore agree with the following observations of the learned District Judge:
“In the present case there is nothing strange in the petitioner, who is the owner of the premises thinking of doing business in his own premises. In my opinion the question of collusion in respect of the order in Ex. P. 8 is irrelevant, and I am not able to agree that the claim of the petitioner for eviction for the purpose of doing his own business, is not bona fide.”
16. Nothing has transpired subsequently to alter or modify this conclusion on the other hand the passage of time has only deepened the plight of this evicted respondent and strengthened his case for being put in possession of his own business premises.
17. This civil revision petition, totally devoid of merits, is dismissed with costs.
B/V.S.B
18. Revision dismissed.
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