AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Sec. 10(3)(c) of the Tamil Nadu Buildings [Lease and Rent Control] Act, 1960,
  • Sec. 10(3)(c) of the Tamil Nadu Act [XVIII of 1960],
  • C1.c to Section 10(3),
  • Section 10(3)(c)
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Sec. 10(3)(c) of the Tamil Nadu Buildings [Lease and Rent Control] Act, 1960,
  • Sec. 10(3)(c) of the Tamil Nadu Act [XVIII of 1960],
  • C1.c to Section 10(3),
  • Section 10(3)(c)
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The dispute concerns an eviction order made under Section 10(3)(c) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, based on the landlords' claim of requiring the tenanted premises as additional accommodation.

The tenanted premises comprise the ground floor of a building (Old D. No. 163 / Present D. No. 1497, Mettur Road, Erode) where the Revision Petitioners (Tenants) operate a textile showroom. The Respondents (Landlords) run a hotel (Brindavan Hotel) in a portion of the same building and, alleging expansion of their hotel business and a bonafide need for the tenanted premises as additional accommodation, filed an Eviction Petition under Section 10(3)(c) of the Act.

The Tenants resisted, asserting that the occupied portion is independent and that the landlords have substantial vacant land (about two acres) behind the building which could be used for expansion; accordingly, they alleged the landlords' requirement was not bonafide and motivated by a desire to raise rent.

The Rent Controller dismissed the Eviction Petition, finding that no acceptable evidence established landlords' desire to expand and observing that the available vacant space was sufficient for the hotel. The Appellate Authority reversed, holding the landlords had established a bonafide requirement, that eviction would not cause greater hardship to the Tenants, and ordered eviction. The Tenants filed the present Revision Petition challenging that appellate order.

Legal Issues Presented

  1. Whether an eviction petition under Section 10(3)(c) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, is maintainable when landlords claim a bonafide requirement of the tenanted premises as additional accommodation.
  2. Whether the statutory authorities (Rent Controller/Appellate Authority) must make a specific, categorical finding on the relative hardship to be caused to the Tenant and compare it with the advantage to the landlord (i.e., the nature and quality of the "hardship" inquiry required under the proviso to Section 10(3)(c)).
  3. Which party bears the evidential burden at various stages: initial burden on the landlord to establish advantage/bonafide requirement and, if discharged, whether the burden then shifts to the Tenant to prove relative hardship.
  4. Whether lack of specific pleading regarding relative hardship in the eviction petition is fatal to the petition's maintainability.

Arguments of the Parties

Revision Petitioners / Tenants' Arguments

  • The Appellate Authority's order is vitiated because it did not decide or record findings on the relative hardship to the Tenants as required by the proviso to Section 10(3)(c) of the Act.
  • There was no pleading or evidence in the eviction petition establishing relative hardship; relative hardship can be decided only on the basis of facts pleaded and proved.
  • The Appellate Authority wrongly placed the burden of proof on the Tenants to prove relative hardship.
  • The landlords could expand their business using the ample vacant space (two acres) behind the building; therefore the claimed need for additional accommodation is not bonafide but motivated by an intention to increase rent.

Respondents / Landlords' Arguments

  • The landlords' requirement for additional accommodation is bonafide and supported by pleadings and evidence (including PW-1 testimony about the hotel's need given the location opposite the bus stand and insufficiency of existing space).
  • The Appellate Authority correctly followed procedure and law in allowing the landlords' appeal and ordering eviction under Section 10(3)(c).
  • The Tenants neither pleaded nor proved relative hardship; therefore eviction should be confirmed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
AIR 1998 SC 3235 — B. Kandasamy Reddiar v. Gomathi Ammal That under the proviso to Section 10(3)(c), the Controller shall reject the application if satisfied that the hardship to the Tenant would outweigh the advantage to the landlord. Used to state the legal standard under the proviso to Section 10(3)(c) guiding the hardship inquiry.
1993 (1) MLJ 122 — R. Krishnaswamy v. N. Arumugam Referenced alongside the above authorities on the doctrine that the Controller must consider the relative hardship versus advantage. Cited to support the requirement that the hardship inquiry be conducted under Section 10(3)(c).
1997 (3) CTC 339 = 1998 2 L.W 400 — T.S. Sethuraman v. J. Nagalakshmi Held that for maintaining a petition under Section 10(3)(c), relative hardship should be pleaded and established; authorities must give a categorical finding as to whether hardship to Tenant would outweigh advantage to landlord. Relied upon by Tenants' counsel; the court quoted the passage and treated it as a precedent describing the need for a categorical finding on relative hardship, but also examined the factual pleadings/evidence in the present case to determine sufficiency.
1974 (2) MLJ 256 = (1974) 87 L.W 609 — K.A. Loganatha Naicker v. S.R. Balasundaram Mudaliar Stated it is imperative for authorities in cases under Section 10(3)(c) to give a specific finding whether the hardship to the Tenant would outweigh the advantage to the landlord. Cited to reinforce the requirement of a specific finding on relative hardship; the court treated this as a controlling statement of law to be followed when adjudicating such petitions.
1999 (1) SCC 141 = 2000 (2) MLJ 72 = 2000 (3) LW 482 — N. Dakshinamoorthy v. Alphonsea Celestine Kamala Benjamine Held that an application for eviction cannot be rejected merely on the ground of lack of pleadings if parties understood the issue and adduced evidence on it. Invoked by the court to support the proposition that lack or vagueness of pleadings on relative hardship is not necessarily fatal where evidence and awareness of the issue exist.
2001 (3) CTC 206 — Karur Ghee Stores rep. By Perisamy v. N. Palaniappa & another Held that lack of pleading regarding relative hardships is not material if the parties are aware of the issue; technicalities should not obstruct logical conclusions. Used to justify not rejecting the eviction petition on mere technical grounds of pleading where the parties had adduced evidence and understood the issue.
1999 (I) MLJ 233 — Mookkan v. Abdul Rasheeth [deceased] and others Held that the landlord may choose the portion required for his purpose and it is not for the Tenant to dictate terms; the provision is not meant to weigh the parties' hardship on a delicate scale favoring the Tenant by a slight tilt. Cited to support the court's conclusion that Tenants cannot insist on how landlords should expand (e.g., insist on using open space) and to affirm the landlords' right to choose the portion required.

Court's Reasoning and Analysis

The court conducted a multi-step analysis limited to the materials and submissions on record:

  1. Preliminary statutory framing: The court reiterated that eviction petitions under Section 10(3)(c) must clearly state that the landlord requires the premises as additional accommodation and that the proviso requires the statutory authority to reject the application if it is satisfied that the hardship to the Tenant would outweigh the advantage to the landlord.
  2. Review of authorities: The court surveyed precedent establishing that authorities must make a categorical finding on relative hardship (citing K.A. Loganatha Naicker and T.S. Sethuraman) but also acknowledged authorities (N. Dakshinamoorthy; Karur Ghee Stores) that a petition should not be defeated by lack of formal pleadings where parties understood the issue and evidence was adduced.
  3. Assessment of pleadings and evidence: The court examined the eviction petition's Paragraph 7 and the testimony of PW-1 (the fourth petitioner), concluding that there was sufficient pleading and evidence about the landlords' advantage and the insufficiency of existing hotel space. The court found the Rent Controller's conclusion— that the landlord admitted availability of open space—was erroneous because PW-1 denied that open space could be used for hotel expansion.
  4. Burden analysis: The court clarified the burden sequence: the initial burden lies on the landlord to establish the advantage/bonafide need. The court held that PW-1's evidence discharged this initial burden, thereby shifting the onus to the Tenants to adduce evidence of relative hardship. Because the Tenants offered only a bare denial and no evidence of hardship, they failed to meet that burden.
  5. Consideration of the Tenants' specific contention about open space: The court rejected the Tenants' argument that landlords should use the adjacent open space for expansion, relying on precedent that landlords may choose the portion required and tenants cannot dictate the manner of expansion.
  6. Conclusion on appellate decision: In view of the pleaded facts and the evidence (particularly PW-1), the Appellate Authority properly found the landlords' relative hardship/advantage to outweigh any hardship to the Tenants and correctly reversed the Rent Controller's order. The appellate order did not suffer from perversity or illegality warranting revision under Section 25 of the Act.

Holding and Implications

Holding:

The Revision Petition is dismissed and the Appellate Authority's order of eviction is confirmed.

Direct implications for the parties (as stated in the opinion):

  • The eviction order made by the Principal Subordinate Judge (Rent Control Officer), Erode in R.C.A No. 3/2001 is confirmed.
  • No costs were awarded.
  • The Tenants are granted three months' time to vacate the premises.

Broader implications: The opinion applies existing authorities on (a) the need for a categorical finding on relative hardship under Section 10(3)(c), (b) the allocation and shift of evidential burden (initially on the landlord), and (c) the principle that lack of formal pleadings is not necessarily fatal where the parties understood the issue and evidence was adduced. The opinion does not purport to lay down a novel legal principle beyond applying these precedents to the facts before it.

    Rasi Silks, By Its Partner K. Arunachalam v. K. Arunachalam Petitioners

    Challenge in this Revision Petition is to the Order of eviction under Sec. 10(3)(c) of the Tamil Nadu Buildings [Lease and Rent Control] Act, 1960, [for short, ‘the Act'], on the ground of additional accommodation.

    2. The demised premises relates to Old D. No. 163 and present D. No. 1497, Mettur Road, Erode. Revision Petitioners/Tenants are running a textile showroom in the ground floor of the said building. Landlords are running a hotel in the building. According to the Respondents/landlords, they are running business partnership and the said firm is running Brindavan Hotel in a portion of Old D. No. 163 and they bonafide require the tenanted premises by way of additional accommodation for the hotel business. Stating that hotel business is expanding and it will be highly advantageous for the landlords, landlords filed Eviction Petition under Section 10(3)(c) of the Act.

    3. Revision Petitioners/Tenants resisted the Petition contending that portion in occupation of the Tenants is an independent portion. The Tenants have further pleaded that there is huge vacant space of two acres behind the building and the landlords could very well utilize the same and requirement for additional accommodation is not bonafide and Eviction Petition is filed with ulterior motive to increase the rent.

    4. Finding that no acceptable evidence has been adduced showing that landlord is desirous of expanding the hotel business and observing that available vacant space is sufficient for running the hotel, Rent Controller dismissed the Eviction Petition.

    5. Observing that landlords have established their bonafide requirement for additional accommodation and that no greater hardship would be caused to the Tenant and pointing out that the premises is opposite to the bus stand, which is developing, Appellate Authority reversed the finding of Rent Controller and ordered eviction.

    6. Assailing the impugned Order of eviction, the learned Counsel for the Revision Petitioners/Tenants has contended that absolutely there was no pleading or evidence snowing relative hardship. It was further contended that relative hardship could be decided only on the basis of facts, which is absent in the pleadings and in the evidence. It was further submitted that relative hardship was not decided by the Appellate Authority, which vitiates the Order of eviction under Sec. 10(3)(C) of the Act. The learned Counsel further urged that Appellate Authority erred in placing burden of proof upon the Tenant to prove his relative hardship.

    7. Drawing attention of the Court to the pleadings and evidence, learned Counsel for the landlords contended that the landlords' requirement for additional accommodation is bonafide and that Appellate Authority, after following the procedures has rightly allowed the appeal filed by the landlords and ordered eviction on the ground of additional accommodation. The learned Counsel further argued that the Tenants have neither pleaded nor proved their relative hardship that will be faced by them and prayed to confirm the Order of eviction.

    8. I have carefully examined the records and contentions of both parties.

    9. Landlords require the tenanted premises for additional accommodation on the ground that it will be highly advantageous for the landlords to have that portion for expanding their hotel business. The Petition for eviction on the ground of additional accommodation must be filed in accordance with the provisions contained under Section 10(3)(c) of the Act. In a Petition for eviction filed under Sec. 10(3)(c) of the Act, the landlord should clearly state that he requires the Petition premises by way of additional accommodation.

    10. While dealing with the question of eviction of Tenant on the ground of requirement of additional accommodation under Sec. 10(3)(c) of the Act, considering the proviso under C1.‘c’ to Section 10(3), Controller shall reject the application if he is satisfied that the hardship which may be caused to the Tenant by granting it, will outweigh the advantage to the landlord. [AIR 1998 SC 3235 — B. Kandasamy Reddiar v. Gomathi Ammal; 1993 (1) MLJ 122 — R. Krishnaswamy v. N. Arumugam].

    11. In order to decide the question of hardship, there must be proper pleadings in the Petition. The learned Counsel for the Tenants contended that the Petition under Sec. 10(3)(c) of the Act contains no averment with regard to the hardship, as contemplated under the proviso to Sec. 10(3)(c) of the Act and hence, the Order of eviction is unsustainable. In support of his contention, the learned Counsel placed reliance upon 1997 (3) CTC 339 = 1998 2 L.W 400 [T.S. Sethuraman v. J. Nagalakshmi]. Holding that for maintaining Petition under Sec 10(3)(c), relative hardship should be pleaded and established, in the said decision, Justice K. Govindarajan, has held as follows: —

    “10. The relative hardship can be decided only on the basis of the facts which should be available in the pleadings and in the evidence. So, only on the basis of the said pleadings and evidence, the Rent Controller can satisfy that the hardship to be caused to the Tenant by granting eviction would outweigh the advantage to the landlord and on that basis the Eviction Petition has to be selected. So, this crucial aspect could be characterized as a special instance in the matters arising out of Sec. 10(3)(c) of the Act. There should be a categorical finding by the statutory authorities that the hardship which may be caused to the Tenant by granting the Decree for eviction would outweigh the advantage to the landlord. Such a special prescription has been specifically provided for as to avoid the unnecessary hardship to the Tenant. Therefore it has become imperative for the authorities under the case arising to of Sec. 10(3)(c) of the Act to give a specific finding whether the hardship which the Tenant is likely to suffer would outweigh the advantage to the landlord or vice-versa. Unless it is decided by the authorities, the enquiry in regard to the Petition arising under Sec. 10(3)(c) of the Act is vitiated”.

    12. In cases arising under Sec. 10(3)(c) of the Act, certain stated considerations arise, besides normal features which usually come up for decision in Courts, in the matter of acceptance or rejection of application for eviction filed by landlords. Holding that the crucial aspect is a special instance in matters arising under Sec. 10(3)(c) of the Act and that there should be a categorical finding by the statutory authorities on hardship that may be caused to the Tenant by granting it, will outweigh the advantage to the landlords in 1974 (2) MLJ 256 = (1974) 87 L.W 609 [K.A Loganatha Naicker v. S.R Balasundaram Mudaliar], it was held thus: —

    “It is imperative for the authorities in cases arising under Sec. 10(3)(c) of the Tamil Nadu Act [XVIII of 1960], to give specific finding whether the hardship the Tenant is likely to suffer would outweigh the advantage to the landlord or vice versa. Unless this aspect is noticed and adjudged upon by the statuary authorities, there is no complete enquiry as contemplated in respect of the Petitions arising under Section 10(3)(c) of the Act”.

    13. The learned Counsel for the Revision Petitioners/Tenants has contended that the case of the landlord should fail because they have not at all pleaded in the Eviction Petition about the relative hardship that would be caused to the parties nor proved the fact that relative hardship would be more on their part than on the part of the Tenant. In Paragraph No. 7 of the Petition, landlords have stated that their hotel business is expanding and it will be advantageous for the Petitioners to have the Petition mentioned building and that Respondents will not be put to any hardship. I find there is no dearth of pleading on the aspect of relative hardship.

    14. In his evidence, fourth Petitioner, who examined himself as PW-1 has stated that the premises is situated opposite to bus stand and the people who come to bus stand and landlord's lodge throng the hotel and the available space is not sufficient and therefore, the landlords require the demised premises as additional accommodation. PW-1 has denied the suggestion that open space available could be used for expansion of the hotel business. The conclusion of the Rent Controller that the landlord has admitted the availability of open space is perse erroneous.

    15. It cannot be said that there is lack of pleading and evidence about relative hardship. In any event, merely because lack of pleadings and vague pleadings about relative hardship, it cannot be said that Eviction Petition is not maintainable. By a reading of evidence of parties, it is seen that the parties have understood the case and adduced evidence and the contention of lack of pleadings cannot be countenanced.

    16. Referring to the decision 1999 (1) SCC 141 in 2000 (2) MLJ 72 = 2000 (3) LW 482 [N. Dakshinamoorthy v. Alphonsea Celestine Kamala Benjamine], it was held that the application for eviction cannot be rejected merely on the ground of lack of pleadings. Though the Tenant adduced evidence regarding relative hardship, the Rent Controller did not enter into any finding. However the Appellate Authority has clearly found that the Tenant will not be put to any hardship and that the landlord's requirement is bonafide and that the landlord would be put to greater hardship if eviction was not ordered. Even though the landlady did not plead relative hardships, the parties understood the case and adduced evidence. Landlady also claiming that she was ill and could not claim stairs. In such circumstances, the application cannot be rejected on the ground of lack of pleadings or vagueness of pleadings.

    17. In 2001 (3) CTC 206 [Karur Ghee Stores rep. By Perisamy v. N. Palaniappa and another], the Court has held that lack of pleadings regarding relative hardships is not material if the parties are aware of the issue involved. Mere technicalities should not come in the way of giving effect to logical conclusion.

    18. Evidence of PW-1 sufficiently establishes the advantage which the landlords may get by seeking an Order of eviction. With the evidence of PW-1 burden cast upon the landlord is discharged and the burden shifts to the Tenants to establish their hardship. In the counter, Tenant has not raised any plea about the relative hardship and apart from bare denial, Tenants have averred that demand for additional accommodation is made only with some ulterior motive to collect enhanced rent and the demand is not bonafide. Likewise, absolutely there is no evidence regarding relative hardship that might be caused to the Tenants if they are evicted.

    19. The main contention of the Tenants is that the Appellate Authority has not at all considered the hardship to the Tenants and erroneously placed the burden of proof upon the Tenants and on that score, eviction Order is vitiated. The learned Counsel for the Revision Petitioners further argued that the Appellate Authority committed serious error in placing burden upon the Tenants to prove relative hardship. When there is neither pleading regarding hardship nor evidence by the Tenants, after being satisfied that hardship that would be caused to the landlord would outweigh the hardship to the Tenants, Appellate Authority has rightly ordered eviction.

    20. Initial burden lies only on the landlords to establish their advantage. With the evidence of PW-1, initial burden was discharged. Then the Tenant ought to have adduced evidence to establish their hardships. In the absence of pleadings or evidence by the Tenants, Appellate Authority has rightly observed that the Tenants have not adduced evidence on the aspect of relative hardship.

    21. Contention of Tenant is that the landlords can expand the hotel business on the open space available, which is abutting the premises. In his evidence, PW-1 has stated the open space cannot be utilized for running the hotel. It is well settled that the landlord can choose the portion required and it is not for the Tenants to dictate terms. In 1999 (I) MLJ 233 [Mookkan v. Abdul Rasheeth [deceased] and others], this Court has held that the landlord can choose the portion required and it is not for the Tenant to dictate terms. It is not the object of the provision to weigh the hardship of the Tenant as against the test of the landlord on a delicate scale, giving the benefit of the slight tilt in favour of the Tenant.

    22. In consideration of the pleadings and evidence, Appellate Authority rightly found that relative hardship of the landlords would outweigh that of Tenants and upon satisfied of the bonafide requirement, has reversed the finding of Rent Controller and ordered eviction. Eviction cannot be disallowed mainly because Tenants may have to vacate the premises. The Order of Appellate Authority does not suffer from any perversity or illegality, calling for interference, exercising revisional jurisdiction under Section 25 of the Act.

    23. In the result, the Revision Petition is dismissed, confirming the Order of the Principal Subordinate Judge [Rent Control Officer], Erode made in R.C.A No. 3/2001. No costs. Three months time is granted for vacating.

    VCJ/VCS

    Use AI to get other relevant cases.

    Comments

    Rasi Silks, By Its Partner K. Arunachalam v. K. Arunachalam Petitioners
    (Mar 12, 2007)