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A. Gurusami Petitioner v. Dr.(Mrs) A. Jacob And Three Others S

Madras High Court
Feb 23, 1998
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Structured Summary of the Opinion

Factual and Procedural Background

The revision petitioner is the tenant in R.C.O.P No. 8 of 1989 before the Rent Controller, Arani, and is the appellant in R.C.A No. 9 of 1991 before the appellate authority (Sub-Court), Arani. The respondent is the landlady (the petitioner before the Rent Controller and the respondent before the appellate authority). Eviction was sought by the landlady on three grounds: (1) wilful default in payment of rent; (2) putting the building to a different user; and (3) committing an act of waste. The Rent Controller granted eviction only on the grounds of different user and act of waste; that order was affirmed by the appellate authority. The tenant filed the present revision petition challenging the eviction order on those grounds.

Legal Issues Presented

  1. Whether the tenant's alleged change of user (from selling lottery tickets to carrying on another business in part of the premises) amounted to a legally actionable "different user" so as to justify eviction, particularly in the absence of any written tenancy agreement limiting the tenant to one specific business.
  2. Whether the acts alleged (making an opening in the dividing wall, fixing a door, erecting a plywood partition, and using a vacant site behind the tenanted premises as a cattle shed) constitute an "act of waste" that impairs the value and utility of the demised premises sufficient to justify eviction.

Arguments of the Parties

Appellant's (Tenant's) Arguments

  • The eviction order is illegal and unsustainable.
  • The tenancy was for non-residential purposes, but there is no contract or written instrument confining the tenant to running a lottery shop only; the tenant merely expressed a desire to run a lottery business when taking the premises.
  • Absent a contractual limitation, a tenant may change the lawful business carried on in the premises; a mere change of business, if legal and not causing mischief or detriment to the premises, does not ground eviction.
  • Even assuming a change of user occurred, the change was trivial and not sufficient to grant relief to the landlady.
  • Making an opening in a wall, fixing a door, and erecting a plywood partition do not amount to an act of waste in law; such alterations did not materially impair the value or utility of the building.

Respondent's (Landlady's) Arguments

  • At the inception of the tenancy it was in the parties' minds that the tenant would use the building only for selling lottery tickets; the tenant used a portion of the building for purposes not connected with selling lottery tickets, thus amounting to a different user.
  • The tenant did not disclose use of part of the premises for hotel business until his court evidence, making that evidence unreliable and liable to rejection.
  • The tenant had no right to make an opening in the landlady's wall; doing so constitutes an act of waste that impairs the utility of the building.
  • The erection of the plywood partition is further evidence of unauthorized alteration; the tenant also used the vacant site behind the premises (not part of the tenancy) as a cattle shed, thereby diminishing the value of the building.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
T.M. Ramaswamy Gounder v. Ranganayaki, 1990 T.L.N.J. 122 Where a tenant denies a contractual obligation to carry on only one business, the onus on the landlord to prove such a limitation is heavy. The Court applied this principle to find there was no written tenancy term restricting use to lottery business and that the landlord failed to discharge the heavy onus of proof.
Mohanlal v. Jai Bhagawan, AIR 1988 S.C. 1034 Change of user to another commercial purpose does not permit eviction under the cited rent law provision if there is no possibility of mischief or detriment to the demised premises. The Court relied on this Supreme Court authority to hold that a change of user, absent evidence of detriment or mischief to the premises, is not actionable for eviction.
Gurdial Batra v. Raj Kumar Jain, AIR 1989 S.C. 1841 Small or temporary changes of user are not actionable where the landlord's interest is not prejudiced. The Court used this authority to support the conclusion that no actionable change of user was proved because no prejudice to the landlord's interest was shown.
A. Duraiswami v. A. Arumugham, 1997 (2) L.W. 346 Placing of a new door or similar alteration does not amount to an act of waste unless the landlord establishes impairment of the value and utility of the building. The Court relied on this decision to conclude that putting a door and erecting a plywood partition did not, without evidence of impairment, constitute an act of waste supporting eviction.
G. Arunachalam (deceased) through legal representatives v. Thondar Periya Nambi and another, A.I.R. 1992 S.C. 978 Fixing rolling shutters in place of a wooden front door does not amount to structural alteration impairing the value of the building in the absence of evidence of impact. The Court cited this authority to reinforce that structural-impact evidence is necessary before treating alterations as acts of waste.
Tajudeen v. C.J. Veera Badra Chettiar & another, 1996 T.L.N.J. 99 Mere removal of a partition wall does not automatically attract provisions penalizing alteration; the real test is whether the alteration is harmful to the main structure. The Court invoked this to emphasize that the core inquiry is whether alterations materially harm the main structure; mere partitions or similar minor work are not enough.

Court's Reasoning and Analysis

The Court proceeded by examining the record and the evidence as presented to the Rent Controller and the appellate authority, and by applying legal principles from precedent to the facts.

  1. Absence of a written agreement: The Court noted there was no written instrument specifying that the tenancy was limited to the sale of lottery tickets. The tenant only expressed a desire to carry on a lottery business when taking the premises (as shown by Ex. A.3), but that expression of desire did not constitute a contractual restriction.
  2. Burden on the landlord: Relying on the proposition in T.M. Ramaswamy Gounder, the Court held that where the tenant denies being bound to carry on only one business, the landlord bears a heavy onus to prove such a limitation. The landlady produced no documentary proof and only relied on oral evidence of P.W.1 (her son).
  3. Change of user and requirement of detriment: The Court observed the Supreme Court authorities (Mohanlal and Gurdial Batra) which require that a change of user must result in some mischief or detriment to the demised premises before it becomes actionable for eviction. The Court found no evidence of any detriment caused by the alleged change of user and therefore could not uphold the finding of different user.
  4. Act of waste — factual findings: The Court accepted that an opening was made in the north-south dividing wall and that a plywood partition and a door were fixed — facts found by the Rent Controller. However, the landlady, having sold the adjoining premises (No. 123) earlier to the tenant, had the opportunity to produce the sale deed to clarify whether the dividing wall was included in that conveyance; she did not.
  5. Act of waste — legal standard and application: Applying authorities (A. Duraiswami, G. Arunachalam, Tajudeen), the Court reiterated that an act of waste requires proof that the alteration impaired the value or utility of the building. No evidence was adduced to show diminution in value or impairment of utility by the opening, door or partition. Consequently, those acts did not constitute actionable waste.
  6. Use of the vacant site behind the premises: The Court noted the landlady's claim that the vacant site behind the tenanted premises was not part of the tenancy. If that site was not demised, the tenant's use of it as a cattle shed could not properly support an eviction order against the demised building; the Rent Controller and appellate authority nonetheless based part of their eviction order on that alleged misuse, which the revisional court found unsupportable.
  7. Conclusion of analysis: Because the landlord failed to prove (a) a contractual limitation to one business, (b) any mischief or detriment caused by a change of user, and (c) any impairment in value or utility from the alleged acts of waste, the Court concluded the findings of the lower authorities could not be sustained.

Holding and Implications

Holding:

The revision petition is allowed and the eviction order passed by the Rent Controller (as affirmed by the appellate authority) is set aside.

Implications:

  • The direct effect is that the eviction ordered on the grounds of different user and act of waste has been quashed; the tenant's possession is preserved by the allowance of the C.R.P.
  • There will be no order as to costs (as stated by the Court).
  • The opinion does not purport to establish a new or broader legal precedent beyond applying existing authorities; its decision is founded on the application of previously cited case law to the facts and the absence of evidentiary proof by the landlady.

This summary is based exclusively on the content of the provided opinion and does not add or infer facts beyond that text.

Show all summary ...

1. The revision petitioner is the tenant in R.C.O.P No. 8 of 1989 on the file of the Rent Controller, Arani and the appellant in R.C.A No. 9 of 1991 on the file of the appellate authority (Sub-Court) Arani. The respondent is the petitioner before the Rent Controller and the respondent before the appellate authority. She is the landlady. Though eviction was sought for on three grounds namely, wilful default in the payment of rent; putting the building to a different user and committing an act of waste, yet the order of eviction came to be passed only on two grounds namely different user and act of waste. That order of the Rent Controller was sustained by the appellate authority on both the grounds. Hence the present revision.

2. I heard Mr. M.N Padmanabhan, learned senior counsel, appearing for the revision petitioner and Mr. S. Francis Ashok, learned counsel appearing for the respondents. According to the learned senior counsel, the order of eviction passed in this case suffers from illegalities and therefore it cannot be sustained. The learned senior counsel would also argue that the purpose of tenancy is for non-residential purposes and no material whatsoever has been placed before the courts below by the landlady, to fix that the building was taken for running a lottery shop only. Under these circumstances, in the absence of a contract evidencing tenancy for such a purpose only, the use of the building for any business which the tenant decides to have would not amount to a different user. According to the learned senior counsel, so long as the business carried on by the tenant is legal and so long the change of business, assuming it to be so had not resulted in any mischief or detriment to the demised premises, it cannot give a cause of action for the landlady to seek eviction of the tenant on that ground. Assuming for a moment without admitting that there was a change in user, the learned senior counsel would state the change alleged by the landlady is very trivial and therefore it cannot be taken note of to grant relief in favour of the landlady. As far as the act of waste is concerned, the learned senior counsel would argue that making an opening in the wall, fixing a door therein and dividing the premises into two halls by erecting a plywood partition would not amount to committing an act of waste in the eye of law and as understood from the various judgments on this issue. Opposing these arguments, Mr. S. Francis Ashok, learned counsel would argue that it is established in this case that at the inception of tenancy, it was in the mind of both the parties that the tenant should use the building only for selling the lottery tickets and not for any other business. Admittedly in this case, the tenant is found to use a portion of the building for a purpose not connected with the selling of the lottery tickets and therefore it must be held that the tenant has put the building to a different user. According to the learned counsel Mr. S. Francis Ashok, the tenant did not at any point of time state, till his evidence before court, that he is using a portion of the building for his Hotel business, as well and therefore his evidence before court on those lines will have to be necessarily rejected. As far as the act of waste is concerned, the learned counsel for the respondent would state that the tenant has no right to make an opening in the wall belonging to the landlady and he having done so, cannot be allowed to say that he had not committed any act of waste. Making an opening in the wall, according to the learned counsel, is definitely an act of waste, which would impair the utility of the building. On those lines, the erection of the plywood partition was also attacked. The learned counsel for the respondent also would state that the vacant site behind the tenanted premises is not the subject matter of the tenancy and the tenant using that site as a cattle shed has thereby caused the value of the building to come down.

3. In the light of the arguments advanced by the learned counsel on either side, I perused the records as well as the evidence. There is no written instrument in this case evidencing the specific purpose for which the contract of tenancy was entered into between the parties. The fact remains that the building was let out for non-residential purpose. In this context, it may be noticed that the tenanted portion bears No. 122, School Road, Arani. Premises No. 123, which adjoins the tenanted premises immediately on the east, was also owned by the landlady originally. Premises Nos. 122 and 123 are divided by a dividing wall. The landlady had sold premises No. 123 to the tenant and therefore he is in occupation of the premises No. 123 as his own. In premises No. 123, the tenant is running his business namely, Hotel business.

4. Ex. A. 3 is the notice dated 24.7.89 issued on behalf of the landlady to the tenant. From a perusal of this notice, it appears that at the time when the tenant took the building on lease, he told the landlady about his desire to run a lottery business. Therefore it is only his desire and not the terms of the agreement between the landlady and the tenant. From the mere fact that the tenant had expressed his desire to use the non-residential portion for lottery business, would not, in my opinion necessarily pin him down to that business only and not any other business. There is neither pleading nor evidence on behalf of the landlady that prior to letting the tenant into possession of the premises, negotiations took place between them and then the terms of the tenancy was arrived at. As already found by me, there is no written instrument evidencing the terms of the tenancy, which is admittedly for non-residential purpose. As held by this court in a judgment reported in T.M Ramaswamy Gounder v. Ranganayaki, 1990 T.L.N.J .122, when the tenant denies that he has to necessarily carry on only one business in the demised premises, then the onus on the landlord is very heavy and it is he who must prove the purpose for which the premises was let out. In this case, as already found by me, except oral evidence of P.W 1, who is the son of the landlady before the court, there is no other documentary evidence in favour of the landlady that the tenant was permitted to carry on only the business of selling lottery tickets. Even assuming it to be so, such a change in user should necessarily result in some mischief or detriment to the premises let out. That is the view of the Honourable Supreme Court of India in its judgment reported in Mohanlal v. Jai Bhagawan, AIR 1988 S.C 1034 wherein it has been held as follows:

“Harayana Urban (Control of Rent and Eviction) Act (11 of 1973), S. 13 (2)(ii)(b) — Change of user — Commercial purpose — Tenant switching over to another business than one for which tenancy was created — No possibility of any mischief or detriment of demised premises — Tenant not liable to be evicted under Section 13(2) (ii) (b).”

In another judgment of the Honourable Supreme Court of India reported in Gurdial Batra v. Raj Kumar Jain , AIR 1989 S.C 1841, it has been held as follows:

“East Punjab Urban Rent Restriction Act (3) of 1949 Section 13 (2) (ii) (b) - Change of User - Premises let out for running of cycle/rickshaw repair shop-sale of televisions also afterward carried on temporarily in premises along with repair business - It is not change of user - Small change of user not a actionable when interest of landlord not prejudiced.”

In this case there is no evidence on record to establish what is the detriment which the landlady has suffered on account of the change of user, assuming it exists. Under these circumstances, I am not in a position to agree with the finding of the Rent Controller and the appellate authority on the change of user given in favour of the landlady.

5. Coming to the act of waste, it is no doubt true that in the dividing wall between the tenanted premises and the premises owned by the tenant, an opening had been made in the north-south wall. The tenanted premises is also divided by a plywood partition. The case of the tenant is that the north - south wall is his wall and he made a hole on it. The Rent Controller found this as a fact. The landlady having sold the premises No. 123 to the tenant earlier, could have easily produced the said sale deed to establish what was conveyed to the tenant and whether it included the north-south wall dividing the tenanted premises and premises No. 123. In any event, making an opening in the said wall; fixing a door and erecting a plywood partition in the tenanted premises does not appear to have brought any material change to the condition of the building. There is no evidence to show that such an act has impaired the value and utility of the building. In fact, a learned single Judge of this court (Justice S.S Subramani) in his judgment reported in A. Duraiswami v. A. Arumugham, 1997 (2) L.W 346 had referred to all the judgments on this point and held as follows:

“With regard to the plea of the landlord seeking eviction on the round of tenant committing acts of waste, taking into consideration the wordings in the Statute, it is clear that unless the landlord establishes that the placing of a new door has impaired the value and utility of the building, he will not have any cause of action. The landlord has not even stated in his deposition that the building has been damaged materially. Excepting that a door has been placed, no other evidence has been let in this case. The finding of the Authorities below that for placing the door, portions of the wall will have to be demolished and, therefore, diminution of value and utility can be presumed, cannot be accepted.”

6. In G. Arunachalam (deceased) through legal representatives v. Thondar Periya Nambi and another, A.I.R 1992 S.C 978, it was held that in the absence of evidence on the impact of the alteration made to the building, the act of the tenant fixing rolling shutters in the place of front door made of wood would not amount to structural alterations impairing the value of the buildings. In another judgment of this court reported in Tajudeen v. C.J Veera Badra Chettiar & another, 1996 TLNJ 99, it was held that mere removal of partition wall will not automatically attract the provisions of the section. The real test should be whether the adjustment or alteration, involving some demolition here and there is harmful to the main structure. A learned single Judge of this court in a judgment reported in A. Duraisamy v. Arumugham, 1997 (2) L.W 346, held that the placing of a new door will not impair the value and utility of the building and therefore does not furnish cause of action for eviction on the ground of act of waste.

7. In this case also there is absolutely no evidence on the side of the landlady about the utility value of the tenanted building having been brought down by any such act. Curiously the Rent Controller and the appellate authority proceeded to order eviction on the ground of committing an act of waste, which act of waste was related to exploiting the vacant land behind the tenanted premises by using it as a cattle shed. The case of the landlady is that the vacant site is not the subject matter of the tenancy at all. If that is so, how could it be a ground for eviction with reference to the demised building, I am unable to understand. Under these circumstances, I am of the opinion that the finding rendered by the Rent Controller and affirmed by the appellate authority on the ground of act of waste in favour of the landlady cannot also be sustained. Under these circumstances, the order of eviction passed by the Rent Controller against the tenant on both the grounds referred to above and affirmed by the appellate authority have to be necessarily set aside. It is accordingly set aside. The C.R.P is allowed and there will be no order as to costs.