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N. Pattabiraman v. The Accommodation Controller And ...

Madras High Court
Jun 24, 1970
Smart Summary (Beta)

Factual and Procedural Background

The summary concerns two connected writ petitions before T. Ramaprasada Rao, J. The petitioner is the owner of premises No. 33, Office Venkatachala Mudali Street, Triplicane, Madras-5. He resides on the ground floor; the first floor is occupied by the 2nd respondent, a Government allottee. The petitioner obtained municipal sanction for alterations/reconstruction (building plan No. P. 2597 of 1970) and applied to the 1st respondent (the Accommodation Controller / Authorised Officer) under Section 12(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, seeking release/delivery of possession of the first floor so he could demolish and reconstruct that portion.

The 1st respondent inspected and rejected the petitioner's application by a non-speaking order which returned the sanctioned plan and stated the request for release under Section 12(1)(b) had not been complied with. The petitioner challenged that refusal by filing the present writ petitions seeking, among other reliefs, quashing of the 1st respondent's order (rule nisi) and, in a separate petition, a writ of mandamus directing the 1st respondent to dispose of the application for release under Section 12.

Legal Issues Presented

  1. Whether the 1st respondent's non-speaking order rejecting the application under Section 12(1)(b) was legally sustainable, given the obligations of quasi-judicial authorities to record reasons.
  2. Whether the proposed alterations (including removal and substitution of the roof, change of walls and increase in cubical content) constitute demolition and reconstruction such as to justify release of possession under Section 12(1)(b) (and in light of Sections 14(1)(b) and 16).
  3. What standard of inquiry (subjective bona fides versus objective demonstration of demolition/reconstruction) the Authorised Officer must apply when considering an application under Section 12(1)(b).

Arguments of the Parties

Petitioner's Arguments

  • The works proposed are not merely repairs or alterations but amount to demolition of the first floor and reconstruction such that the identity of the original building will be lost and a new building erected (evidence: sanctioned plan showing increased cubical content, changed roofing from tiles to Madras terrace, changed walls, etc.).
  • The Accommodation Controller, a quasi-judicial authority, erred by passing a non-speaking order without giving reasons; such an authority ought to give demonstrable reasons when adjudicating rights.
  • Reliance was placed on earlier decisions (e.g., Selvaraj v. Narasimha Rao; Ramachandran v. Kazim Khaleeli) establishing that changing the roof can amount to demolition and supporting landlord claims in bona fide reconstruction cases.

Respondent / Government Pleader's Argument

  • Although the order is non-speaking, it should be presumed that the 1st respondent considered the question of bona fides and was not satisfied; on that basis the order should be sustained.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Selvaraj v. Narasimha Rao (1969) I.L.R. (1969) 3 Mad. 94 : (1969) 1 M.L.J. 587 Explains the import of Sections 14(1)(b) and 16; limits the scope of 'bona fide' in Section 14(1)(b) and treats the safeguard under Section 16 as pivotal, reducing need for microscopic scrutiny of subjective bona fides. The court held the ratio in Selvaraj must guide the Authorised Officer when deciding applications under Section 12(1)(b); in this factual matrix the court applied Selvaraj to conclude that where the planned works objectively amount to demolition and reconstruction the release application must be considered on that basis.
Ramachandran v. Kasim Khaleeli (1965) I.L.R. (1965) Mad. 703 : (1965) 1 M.L.J. 78 Holds that removal of the roof and substitution by another (even while retaining walls) can amount to demolition; total demolition is not required to constitute 'demolition'. The court relied on Kailasam, J.'s observation in Ramachandran to support the conclusion that the proposed removal and substitution of the roof, together with material changes to the structure and cubical content, amount to demolition and reconstruction.
Travancore Rayons v. Union of India A.I.R. 1971 S.C. 862 Sets out the proposition that when judicial power is exercised by authorities normally performing executive/administrative functions, the Supreme Court insists upon disclosure of reasons: (i) to enable aggrieved parties to show the reasons were erroneous, and (ii) as a deterrent against arbitrary action. The court invoked Travancore Rayons to hold that the Accommodation Controller (a quasi-judicial tribunal) ought to have given demonstrable reasons; the lack of reasons rendered the impugned order unsustainable.

Court's Reasoning and Analysis

The court's analysis proceeded in two linked strands: procedural/administrative law (requirement to record reasons) and the substantive question whether the proposed works amounted to demolition and reconstruction within the meaning relevant provisions of the Act.

On the procedural point the court emphasized that quasi-judicial authorities who adjudicate rights must give demonstrable reasons in the orders they pass so higher authorities and courts can understand and test the basis of decisions. The court cited Travancore Rayons to articulate two rationales for requiring reasons: (1) to allow an aggrieved party to show the reasons were erroneous, and (2) to deter arbitrary executive action. Because the 1st respondent's decision was a non-speaking order devoid of any reasons, the court concluded that the order could not stand on that ground alone.

On the substantive point the court examined the sanctioned plan and the nature of the proposed works. The court recorded that the first floor was to be materially altered: walls would be changed, cubical content of enclosed spaces would be increased, and critically the roof of the premises would be removed and substituted by a different type (from tiled roofing to Madras terrace roofing). The court treated the combination of these material alterations—particularly removal/substitution of the roof coupled with alterations to space content—as amounting objectively to demolition followed by reconstruction.

The court applied the reasoning in Selvaraj to explain how Sections 14(1)(b) and 16 should be read: the words 'bona fide' have to be construed in context and the safeguard in Section 16 reduces the need for microscopic inquiry into subjective bona fides under the landlord's claim provision. The court held that Section 12(1)(b) (which governs recovery of possession from a Government allottee for reconstruction) is substantially analogous in purport to Section 14(1)(b) and that the ratio in Selvaraj must inform the Authorised Officer's decision-making under Section 12(1)(b).

The court further adopted Kailasam, J.'s observation in Ramachandran that demolition need not be total to qualify as demolition—removal of the roof and structural modifications can suffice. Applying those authorities to the facts, the court concluded the petitioner's proposed works objectively amounted to demolition and reconstruction and that the 1st respondent failed to consider these aspects and the relevant legal principles before issuing a summary non-speaking rejection.

Holding and Implications

Holding: The court ordered relief as follows:

  • RULE NISI MADE ABSOLUTE (ORDER QUASHED) — the impugned non-speaking order of the 1st respondent rejecting the petitioner's application under Section 12(1)(b) was held unsustainable on the ground that the 1st respondent failed to give demonstrable reasons and did not consider the relevant legal and factual aspects.
  • In the connected writ (Writ Petition No. 4488 of 1970), instead of making the rule absolute, the court directed the 1st respondent to dispose of the petitioner's application dated 2nd September, 1970 under Section 12 of the Act within six weeks from the date of the order, "bearing in mind the principles of law and taking into consideration the observations made" in the other writ (No. 4487 of 1970).
  • There was no order as to costs in both writ petitions.

Implications: The direct effect is that the 1st respondent's earlier non-speaking refusal was quashed and the petitioner’s Section 12 application must be reconsidered and disposed of within six weeks with reasons and in accordance with the legal principles discussed (including the approach set out in Selvaraj, the relevance of Sections 12(1)(b), 14(1)(b) and 16, and the principle from Ramachandran that removal/substitution of a roof can amount to demolition). The opinion does not purport to set a new precedent beyond applying and reiterating established authorities; its immediate consequence is the quashing of the specific order and direction for fresh adjudication by the 1st respondent.

Show all summary ...

ORDER T. Ramaprasada Rao, J.

1. These two writ petitions are connected. The petitioner is the owner of premises No. 33, Office Venkatachala Mudali Street, Triplicane, Madras-5. He is living in the ground floor of the premises and the first floor is in the occupation of the 2nd respondent who is a Government allottee. The portion in the occupation of the 2nd respondent consists of a hall, verandha, kudam, living room, bed room, etc. The petitioner with the intention of demolishing the 1st floor and reconstructing it has sought for permission from the Corporation of Madras to effect such alterations and ultimately obtained sanction therefor under building plan No. P. 2597 of 1970, dated 28th July, 1970. But, as the second respondent was an allottee of the premises through the Government, the petitioner applied to the first respondent for delivery of possession of the same and effectively asked for a release of the first-floor from the provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. In fact the application was made under Section 12(1) (b) of the Act. The Accommodation Controller is said to have inspected the plan and enquired the petitioner and ultimately was of the view that the petitioner's request for release could not be granted. The order of the 1st respondent reads thus:

With reference to your petition cited, you are informed that your request for release of the premises under Section 12 (1) (b) of the Act has not been complied with. The Corporation sanctioned plan bearing No. B.A. No. 2597 of 1970, dated 31st May, 1970, is returned herewith.

The petitioner is aggrieved as against the said order of the 1st respondent and has come up to this Court to quash the same The case of the petitioner is that as the repairs to be undertaken by the petitioner are not to be barely characterised as repairs and alterations, but would tantamount to a demolition of a portion of the building and reconstruction of the same resulting in the identity of the original building being lost and instead a new building being set up. It is urged that the cubical contents of the room also get enhanced and the roofing will be completely changed from tiled roofing to Madras terrace roofing and the real purpose of the proposed alterations are effectively for demolishing and reconstructing the building and not with any other oblique purpose. Many contentions were raised by the petitioner in support of his application for the rule amongst which the main contentions are as follows. The 1st respondent who is dealing with, rights of parties and who is indeed a quasi-judicial tribunal ought to have given reasons for rejecting the petition of the petitioner and ought not have summarily rejected the same without making it known to others including this Court as to what prompted him to reject the application. The second objection which is formidable on facts is that on a casual inspection of the sanctioned plan and the nature of the alterations contemplated, the work to be undertaken by the petitioner is to demolish and reconstruct a building which includes a part of the building under the Act and that therefore the 1st respondent has no option in such cases except to grant the request, as a private tenant placed under such similar circumstances has practically no remedy in law if such an application filed for eviction before the appropriate authority is bona fide and not oblique. Reliance is placed on Selvaraj v. Narasimha Rao I.L.R. (1969) 3 Mad. 94 : (1969) 1 M.L.J. 587. Reference is also made to the decision in Ramachandran v. Kazim Khaleeli (1965) 1 M.L.J. 78 : I.L.R. (1965) Mad. 703, for the proposition that the removing of roof of a building and putting up a another roof in substitution thereof amounts to demolition of the building. Learned Government Pleader would state that, no doubt, the order is non-speaking, but, in the circumstances it should be presumed that the 1st respondent went into the question of bona fide as well and the order has to be sustained on the ground that the Accommodation Controller was not satisfied about the bona fides of the requisition.

2. I am unable to agree with the contentions of the learned Government Pleader. In a case where quasi-judicial tribunals adjudicate upon rights of parties after hearing them it is but elementary that they should give demonstrable reasons so that when it is scrutinised by any one in the higher hierarchy exercising visitorial powers he should be in a postioin to appreciate as to what was the real reason behind the order impugned or passed. It is now well-settled that such judicial authorities ought not to lightly reject petitions by passing a non-speaking order which is totally bereft of any reasoning. Such reasons ought to form part and parcel of the order itself so that the order could be demonstrated to be one which is sustainable or otherwise by the superior Court or authority when it has the occasion to refer to it and consider whether such an order is proper or regular. This view is accepted by the Supreme Court in one of its latest pronouncements in Travancore Rayons v. Union of India A.I.R. 1971 S.C. 862, The Supreme Court, said:

When judicial power is exercised by an authority normally performing executive or administrative functions, the Supreme Court insists upon disclosure of reasons in support of the order on two grounds; one, that the party aggrieved in a proceeding before the High Court or the Supreme Court has the opportunity to demonstrate that the reasons which persuaded the authority to reject his case were erroneous; the other, that the obligation to record reasons operates as a deterrent against possible arbitrary action by the executive authority invested with the judicial power.

On the ground that the 1st respondent failed to give any satisfactory reasons and indeed no reason at all to justify the challenged order, the writ petitions should succeed.

3. But as arguments have been addressed at length on the scope of what is demolition, it is necessary for me to consider the merits as well as the law on the subject. As already stated, the plan produced clearly makes out the situation that the first floor is sought to be interfered with materially and in many respects by the petitioner when he reconstructs the building in accordance with the sanctioned plan. The cubical content of enclosed space is increased or altered, the walls are changed and above all the roof of the premises is removed and substituted by another. In a case where the roof of a premises is removed and is substituted and this is followed up by a variation of the space content of the quondam building, then undoubtedly the entire process involves not only demolition but also reconstruction. In such cases, where a landlord intends to demolish and reconstruct his premises and for that purpose seeks eviction of the tenant in occupation of the old building, this Court in Selvaraj v. Narasimha Rao (1969) 1 M.L.J. 587 : I.L.R. (1969) 3 Mad. 94, observed after considering the import of Sections 14 (1) (b) and 16 which are the relevant sections to be noticed.

The quality and content of the expression bona fide appearing in the various sections of the Act and for purposes therein enumerated have to be weighed and construed in different lines under different circumstances having regard to the context in which the expression appears. In cases where the claim of the landlord is not per se dishonest and has not been found to be oblique or for any designed purpose to evict the tenant, then it follows that the petitioner is entitled to an order of eviction in the ordinary course, subject of course, to the other conditions prescribed by the Act being satisfied.

The Court further observed that reading the two sections in conjunction with one another, the real content of the word 'bond fide' appearing Sub-section (1) (b) of Section 14 has to be understood in a limited sense. The safeguard provided under Section 16 acts as a pivot to tilt matters one way or the other and in effect a microscopic scrutiny into the subjective content of the expression bona fide appearing under Section 14 (1) (b) becomes absolutely unnecessary. These observations are apposite while considering similar application for release made by landlords in cases where the tenant is a Government allottee. As a matter of fact, Section 12 deals with recovery of possession by landlord for reconstruction of the building in respect of which the Government shall be deemed to be the tenant. Section 12 (1) (b) provides that on an application made by the landlord in such circumstances the Authorised Officer if he is satisfied that the building is bona fide required by the landlord for the immediate purpose of demolishing it and such demolition is to be made for the purposes of erecting a new building on the site of the building sought to be demolished, pass an order directing the allottee to deliver possession of the building to the landlord before a specified date. The conjunction in Section 12 (1) (b) connecting the subjective content as to bona fides of the landlord and the objective reality of the erection of a new building need not create an impression that this sub-section is in any way for different from Section 14 (1) (b). As a matter of fact, both the purport and the literature of both the sub-sections are almost the same. The ratio in Selvaraj v. Narasimha Rao I.L.R. (1969) Mad. 94 : (1969) 1. M.L.J. 587, has to be bome in mind by the Authorised Officer while dealing with applications under Section 12 (1) (b). If, therefore, the landlord seeks for release of the building for the immediate purpose of demolishing and reconstructing a building which includes a part of the building then factually he has to verify whether the alteration or the modification sought would amount to demolition. I have already expressed the view that the work to be undertaken by the petitioner is effectively to change the entire phase of the building, its cubicle content and its size. More than anything else the roof is sought to be removed and substituted by another of a different variety altogether. Kailasam, J., in Ramachandran v. Kasim Khaleeli I.L.R. (1965) 1 Mad. 703 : (1965) 1; M.L.J. 78, while considering the import of Section 14 (1)(b) observed on the facts and particularly on the above aspect as follows:

The contention of the learned Counsel that the demolition intended, should be total, is not supported by any authority. In this case the roof of the premises that is in the occupation of the petitioner is to be demolished and a staircase put, retaining only the walls. This in my opinion, would amount to demolition.

A fortiori in a case like the one before me where a material change is being effected in the structure and the identity and contents of the building, the work undertaken by the petitioner as disclosed in the sanctioned plan would certainly amount to demolition and reconstruction of the building. In this view of the matter justice has not been rendered to the petitioner since the first respondent did not consider all the aspects of law and facts arising in the application disposed of by him in such a summary fashion.

4. On these grounds also the rule nisi is to be made absolute.

5. In Writ Petition No. 4488 of 1970, a writ of mandamus is sought directing the 1st respondent to dispose of the petitioner's application dated 2nd September, 1970, for release of the building under Section 12 of the Act. It is not necessary to make the rule absolute in the instant case. Instead, certain directions which would serve the purpose can be made. The first respondent is directed to dispose of the petitioner's application for release under Section 12 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 within six weeks from this date bearing in mind the principles of law and taking into consideration the observations made by me in Writ Petition No. 4487 of 1970. There will be no order as to costs in both the writ petitions.