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Indo-American Electricals Ltd. v. M.L Sharma .
Analytical Summary of the Opinion — Yogeshwar Dayal, J.
Factual and Procedural Background
The revision arises under the proviso to Subsection (8) of Section 25-B of the Delhi Rent Control Act, 1958. The petitioner is the tenant, M/s. Indo-American Electricals Ltd., and the respondent is the landlord, Col. M.L. Sharma. The premises had been let to the tenant on 16-9-1966 for residential use for the manager or other officer. The landlord filed an eviction petition claiming bona fide personal requirement of the premises for himself and family members and asserting ownership and that he had set up business in Delhi after retiring from military service.
The tenant applied for leave to defend and filed an affidavit (dated 6-10-1978) by R.K. Bajaj, a manager, alleging (inter alia) that an earlier eviction petition by the landlord based on unauthorised construction and misuse had been fully tried and dismissed by an Additional Rent Controller by order dated 11-8-1978; that the landlord resided at Chandigarh (address given as 3312, Sector 19-D) and not in Delhi; that the present claim of bona fide requirement was not sincere; and that the eviction petition was motivated to re-let the premises at higher rent.
The landlord replied denying ownership of the Chandigarh house (asserting he was a tenant there), asserting he had established a business in Delhi in 1977 (opening an office on 22-12-1977 at G-2/43-A, Middle Circle, Connaught Circus), holding a Customs House Agents licence (No. 6/77), and that family members needed accommodation in Delhi (one son, Survir Sharma, being employed in Delhi). The landlord listed a residential address in the eviction petition as 10/20 East Patel Nagar, New Delhi-8.
The tenant later sought (on 9-7-1979) to amend its application for leave to defend to contend the premises were let for residential-cum-commercial purposes; the landlord opposed the amendment. The Rent Controller, by order dated 19-9-1979, refused leave to defend and declined the amendment of the application for leave, effectively granting eviction. The tenant filed this revision petition challenging those orders. The High Court (Yogeshwar Dayal, J.) dismissed the revision petition with costs and allowed the tenant six months to vacate the premises.
Legal Issues Presented
- Whether the Rent Controller erred in refusing leave to the tenant to defend the eviction petition under proviso to Subsection (8) of Section 25-B of the Delhi Rent Control Act, 1958.
- Whether the Rent Controller correctly refused permission to amend the tenant's application for leave to defend so as to withdraw an implied admission regarding the purpose of letting (residential only).
- Whether the facts and affidavit produced by the tenant disclosed a clear, specific and positive defence requiring investigation that would justify granting leave to defend.
Arguments of the Parties
Petitioner-Tenant's Arguments
- The landlord had earlier prosecuted an eviction petition on the ground of unauthorised construction and misuser of the premises; that petition was tried and dismissed on 11-8-1978 — implying the landlord's present claim is not bona fide and he is estopped from now asserting bona fide personal requirement.
- The landlord's earlier given address was in Chandigarh (3312, Sector 19-D) where he and his family resided; therefore the landlord does not genuinely require the Delhi premises for personal occupation.
- The landlord has no intention to occupy the premises; he had not expressed need for residence except by the present eviction petition.
- The landlord has not set up business in Delhi nor is he living in a rented house in Delhi, contrary to his assertions.
- The claim of bona fide personal requirement is an afterthought and motivated by desire to evict and re-let at a higher rent.
Respondent-Landlord's Arguments
- The landlord denied ownership of the Chandigarh house as alleged by the tenant, asserting instead that he was a tenant there.
- The landlord asserted he had set up business in Delhi (1977) and opened an office on 22-12-1977 at G-2/43-A, Middle Circle, Connaught Circus, and holds a Customs House Agents licence No. 6/77 — thus creating a bona fide need to reside in the disputed premises.
- The landlord stated he was living in rented accommodation in Delhi “till recently” (10/20 East Patel Nagar) and then at 10/18 West Patel Nagar, indicating a presence in Delhi.
- One of his sons (Survir Sharma) is employed in Delhi (with M/s. Metropolitan Trading Company) and the family members (wife, mother, daughter-in-law, two grandchildren) required accommodation — forming the basis for bona fide personal requirement.
- The plea of bona fide requirement was not available earlier because the need arose only after the son’s employment and after the landlord started his business in Delhi in 1977; hence the ground was not raised in earlier proceedings.
- The tenant’s allegations about notices and other facts are vague and unsupported.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Mrs. Meera Grover v. Mr. Narinder Jaggi, C.M (M) 230 of 1981 (decided 20-10-1981) | The view that where there is an implied admission about the purpose of letting specifically mentioned by the landlord and not denied by the tenant, an amendment withdrawing that admission may not be permitted. | Used to support the correctness of the Rent Controller's refusal to allow the tenant to amend its application so as to withdraw the admission regarding residential purpose of letting. |
| Smt. V.L. Kashyap… Petitioner v. R.P. Puri… (as held by B.C. Misra, J.) (1976) 369 | The defence taken does not raise any clear, specific and positive defence which requires facts to be investigated and might entitle the tenant to leave to defend. | Relied upon to conclude that the tenant's affidavit did not disclose a defence warranting leave to defend because it lacked clear specific and positive averments requiring investigation. |
| Jai Nath Gupta and Company v. Shri Mahabir Prashad, 1979 (1) R.C.R. 422 (Sachar, J.) | An example where the landlord came with a positive case about prior business and shifting of residence and the tenant disputed that fact; Sachar, J. granted leave on the limited point because the facts required investigation. | The decision was discussed and distinguished: the court held that the factual matrix in the present case did not mirror Jai Nath Gupta (there was no comparable prior business at another place like Kaithal to investigate), so the reasoning there did not mandate granting leave here. |
Court's Reasoning and Analysis
The Court addressed two principal procedural questions: (a) whether the Rent Controller was correct in refusing the tenant's application to amend its pleadings to withdraw an implied admission about residential letting, and (b) whether the tenant's original affidavit disclosed facts sufficient to obtain leave to defend the eviction petition.
On the refusal to permit amendment: the Court agreed with the Rent Controller and relied on the principle applied in Mrs. Meera Grover v. Narinder Jaggi that where the purpose of letting (here, residential only) was specifically pleaded by the landlord and not denied by the tenant, an amendment that would have the effect of withdrawing that admission could not be permitted. The Court noted that the purpose of letting is an essential ingredient for ejectment under proviso (e) to Sub-section (1) of Section 14 of the Act, and the tenant’s proposed amendment sought to introduce a fresh plea contrary to the admission. Because proceedings under Section 25-B are summary, a fresh contrary plea by way of amendment was inappropriate; therefore the Rent Controller rightly declined to allow the amendment.
On whether the tenant’s original affidavit disclosed a defence warranting leave to defend: the Court examined the substance and specificity of the tenant’s averments. The Court observed:
- The tenant’s mala fide allegation (that the landlord sought eviction to re-let at higher rent) was vague and general; there was no concrete averment that the landlord had ever sought an increase of rent or any clear evidence of ulterior motive.
- Although the landlord had mentioned residential addresses (initially in Chandigarh and later in Delhi), the tenant had not undertaken any concrete enquiries or filed further affidavits to rebut the landlord’s changed residence; nor had it produced specific averments to deny the son’s employment in Delhi.
- The Court found it plausible that a retired military man might seek to shift to Delhi when a son was employed there and that such a son, lacking independent accommodation, would be dependent on the father for housing.
- The longstanding nature of the tenancy (about 15 years) and the absence of prior eviction attempts on the same ground or attempts to increase rent tended, in the Court’s view, to support the landlord’s bona fides rather than detract from it.
- Relying on the principle stated in Smt. V.L. Kashyap… (B.C. Misra, J.), the Court concluded the tenant's defence did not amount to a clear, specific and positive defence requiring investigation that would entitle it to leave to defend.
- The Court distinguished Jai Nath Gupta on its facts: in that case there was an admitted long-standing business at another place (Kaithal) and a directly contested assertion that the landlord had shifted to Delhi; that factual dispute required investigation. In the present matter, there was no analogous factual contest to justify leave.
Having applied these principles to the evidence before the Rent Controller, the Court concluded that the learned Rent Controller had not erred in refusing leave to defend or in declining to permit the amendment.
Holding and Implications
Core Ruling: The revision petition is dismissed. The order of the Rent Controller refusing leave to defend and refusing amendment is upheld. (The opinion records at the end: "Revision dismissed".)
Implications and immediate consequences:
- The tenant's challenge to the Rent Controller's refusal to grant leave to defend fails and the eviction order stands as confirmed by the dismissal of the revision petition.
- The tenant is given six months' time to vacate the premises (as ordered by the Court).
- The Court awarded costs against the tenant (the revision was dismissed with costs).
- The opinion does not identify or purport to establish any broader legal precedent beyond application of cited authorities to the facts; the decision addresses the application of established principles to the particular facts before the Court.
End of summary. The above is strictly limited to the matters, facts, arguments, legal authorities and reasoning stated in the provided opinion.
Yogeshwar Dayal, J.:— This revision petition under proviso to Subsection (8) of Section 25-B of the Delhi Rent Control Act, 1958 (hereinafter referred to as “the Act”) is directed against the order, dated 19th September 1979 passed by learned Rent Controller, Delhi, refusing to grant leave to the petitioner-tenant to defend the eviction-petition filed against it by the responbent-landlord and as a result passing an order for eviction against the petitioner-tenant.
2. The case of the respondent-landlord, Col. M.L Sharma as set up in the eviction petition was that the premises in dispute were let out to the petitioner-tenant. M/s. Indo-American Electricals Ltd. for purposes of residence of their manager or any other officer on 16-9-1966 and the same are now required for occupation as residence for himself and for other members of his family dependent upon him. It was also pleaded by the respondent-landlord that he is the owner of the premises and that he has since retired as colonel from military service and has now set up his business in Delhi with his office at Connaught Place.
3. It was also stated in the eviction petition that the respondent-landlord is at present living in Delhi in rented house. He wants to live in his own house and that he has no other reasonably suitable accommodation.
4. The respondent-landlord also pleaded that one of his sons is of marriageable age and in employed at Delhi. He also stated that this son of his is not being married only due to lack of accommodation. The other members of his family consisting of his wife, mother, daughter-in-law and two grand children are perforce staying in Chandigarh as there is no accommodation available to them in Delhi.
5. In the eviction petition, the respondent-landlord gave his address as 10/20, East Patel Nagar, New Delhi-8.
6. Along with the application for leave to defend, the petitioner-tenant had filed affidavit of Sh. R.K Bajaj, one of the Managers of the petitioner-company, stating facts which the petitioner claimed entitled the company (tenant) to leave to defend the eviction petition.
7. In his affidavit dated 6th October, 1978. Shri Bajaj, inter alia, stated that the landlord had earlier filed a petition for eviction against the petitioner-tenant on the ground of unauthorised construction raised by the tenant and misuser of premises from residential to non-residential. The said petition was fully tried and heard on merits and was ultimately dismissed by the learned Addl. Rent Controller by order dated 11-8-1978. It was contended that had the requirement of the respondent-landlord been bona fide he ought to have claimed of the tenant on this ground and, therefore, he is now estopped from taking the ground of bona fide personal requirement.
8. It was also stated that in the earlier proceedings the respondent-landlord had given his address as 3312, Sector 19-D, Chandigarh, which premises belong to the respondent-landlord and where, at all times, he has been residing along with his family.
9. It was further stated by the Manager of the tenant, in his affidavit, that the respondent-landlord has no intention to occupy the premises nor the same are required by him for residence for himself or for his family members as the respondent-landlord has never expressed any such intention or requirement except by way of present petition for eviction of the tenant.
10. It was also denied that the landlord has set up any business in Delhi or that he was living in a rented house in Delhi.
11. That the sons of the respondent-landlord being dependent upon him was also denied.
12. Again, it was stated in the affidavit that the eviction petition had been filed with the ulterior motive of evicting the tenant and thereafter letting the premises on higher rent.
13. It will be noticed that in this application for leave to defend, neither ownership nor the purpose of letting was disputed and thus it will be deemed to have been admitted by the petitioner-tenant.
14. In reply to this application for leave to defend, the landlord stated that it was wrong to allege that the Chandigarh house belongs to him. It was stated by him that he was a tenant therein of one S. Nasir Singh. It was also stated that the respondent-landlord has set up business in Delhi and wants to live in his own house along with his family members dependent upon him. The landlord's family is presently staying at Chandigarh because the premises in question were not being vacated by the tenant. The landlord along with one of his sons was staying in rented ‘barsati’ of house No. 10/20 East Patel Nagar, New Delhi “till recently” and at present he is staying at 10/18 West Patel Nagar, New Delhi.
15. It was also submitted by the landlord that it was wrong to allege that he is debarred from claiming relief in his present petition. It was further stated that the son of the landlord, namely, Survir Sharma is presently working with M/s. Metropolitan Trading Company, 2-E/S, Jban-dewalan Extension, New Delhi and has been in employment with the said cencern for 1½ years. It is also stated that earlier he was employed with M/s. Lee and Muirhead, ‘H’ Block, Connaught Circus, New Delhi. The need to occupy the house in question arose when the landlord started his business of clearance of exported/imported goods in Delhi in the year 1977. It was stated that the plea of bona fide requiremnt was not made in the earlier petition as at that time he did not require the premises.
16. The notices as alleged by the tenant in his application for leave to defend were denied by the landlord in repely. It was pleaded that the allegations of the tenant are vague.
17. It was also stated in reply that the landlord has opened his office from 22nd December, 1977 at G-2/43-A, Middle Circle, Connaught Circus, New Delhi and that the landlord is having Customs House Agents licence bearing No. 6/77 which was granted to him by the office of Collector of Customs and Central Excise vide their letter No: VIII (HOM)/1 13/23/77 dated 29-11-1977.
18. It was thus averred that the landlord had felt requirement of the house when he started business in Delhi in the year 1977.
19. When the matter was ripe for arguments on the application for leave, after about nine months of the filing of the application for leave, the petitioner-tenant desired to file an application for amendment of his application for leave to defend the eviction petition on 9-7-1979, inter alia, trying to plead that the premises were not let for residential purposes only but were let out to him for residential-cum-commercial purpose. This application was opposed on behalf of the landlord.
20. The learned trial court, as stated earlier, dimissed the application for leave and also dismissed the application for amendment on the ground that the tenant-petitioner cannot be allowed to detract from his admissions.
21. Before I deal with the question whether leave ought to have been granted on the basis of the original affidavit dated 6th October, 1978’ I would like to deal with the correctness or otherwise of the order of the learned Rent Controller declining leave to amend.
22. A matter came up before me in Mrs. Meera Grover v. Mr. Narinder Jaggi, C.M (M) 230 of 1981, decided on 20-10-1981 and I took the view that is there was implied admission about the purpose of letting which was especifically mentioned by the landlord and not denied by the tenant, no emendment could be allowed which will have the effect of withdrawing the admission of facts in the circumstances of that case. To my mind, the circumstances in the present case are also similar.
23. It will be noticed that one of the essential ingredients for claiming ejectment by a landlord under proviso (e) to Sub-sec. (1) of Section 14 of the Act is that the premises from which eviction is sought must be let out for residential purposes only. The essential ingredient was specifically pleaded by the landlord. Though several objections were taken denying the other essential requisitions of the said provision which were alleged by the landlord, yet there was no dential of this essential ingredient. The proceedings before the Controller under Section 25-B of the Act are summary in nature and it was not merely an explanation of the plea already taken but it was a fresh plea which was sought to be taken by way of withdrawing the earlier admission and was thus rightly not allowed by the Rent Controller. I am thus in agreement with the learned Rent Controller that no amendment of the application for leave to defend could be allowed in the circumstances at the case.
24. Coming to the pleas raised by the tenant in his original affidavit, the learned trial court took the view that no such facts were disclosed which would disentitle the landlord from clamining the relief prayed for.
25. On the question whether the claim is mala fide on the ground that the landlord wants to let out the premises in question on higher rent, the learned Rent Controller held that this plea is vague and general and cannot be accepted. It was also found that the tenant had not taken the plea that the landlord had ever asked him for increase in rent and thus the assertion simpliciter that the landlord wants to rent out the premises at higher rent was to vague a plea to be taken into account.
26. It will again be noticed that though the landlord had mentioned his residential address, yet the tenant apart from denying the fact that the landlord had rented any house in Delhi, there was no averment in his affidavit aworn by the manager of the tenant that they made any enquiries whatsoever regarding the premises which was mentioned by the landlord where he was earlier residing.
27. Again when the landlord was forced to change that residence, and he mentioned the changed residence, no attempt was made to file a further affidavit that the landlord was not living in the changed address.
28. Further, no averment was made that the younger son of the landlord was not employed in Delhi.
29. It will be noticed that the landlord is a retired military personnel and there is nothing abnormal in his trying to shift to Delhi where one of his sons is employed and who also needs accommodation. It goes without saying that such a son who does not have independent accommodation of his own is dependent upon his father for accommodation and hence requirement for a house.
30. It was stated in the eviction petition that the landlord is living with his wife, mother, daughter-in-law and two grand children. Apart from merely denying it, the tenant had no guts to mention where else they were staying. They were thus living with the landlord, as his family, at Chandigarh and from a retired personnel like the landlord to expect to mainiain two establishments is asking for the impossible.
31. Mr. S. Mohan, learned counsel for the petitioner-tenant, submitted that the landlord had not given full particulars of the place where he had set up his business in Delhi. For one thing, the type of business which the landlord is doing is not such for which he must have a separate business house. In any case, the same was disclosed by the landlord on affidavit in reply to the application filed by the tenant and that again was not disputed before the Controller. Once that fact is clear that he is residing in Delhi, it is not necessary for the landlord to specify the particulars of his business.
32. It will be noticed that the premises were let out to the petitioner-tenant as far back as practically 15 years and it is common case that during this time no attempt was ever made for eviction of the tenant on the ground on which the eviction is being sought now. Nor was ever an attempt made by the landlord for increase of rent. This shows bona fides of the landlord.
33. There is, of course, no merit in objection of the tenant that the ground of bona fide personal requirement should have been taken in the petition filed for eviction earlier. That petition, as stated earlier in the affidavit on behalf of the tenant, was on the ground of misuser and unauthorised construction. ‘Misuser’ was alleged on the ground of converion of residential use to non-residential use of the premises and the petition on this ground was filed as far back as 1973. At that time, it is nobody's case that the son of landlord was employed in Delhi or that at that time the landlord had set up any business in Delhi. It was only when the younger marriageable son of the landlord got employment in Delhi that the landlord thought of establishing himself in Delhi.
34. I am thus satisfied that, as held by B.C Misra, J. in Smt. V.L Kashyap…Petitioner v. R.P Puri… (1976) 369, the defence taken does not raise any clear specific and positive defence which requires facts to be investigated and which may entitle the tenant to the grant of leave to defend. Mr. Mohan referred to the decision of Sachar, J. in Jai Nath Gupta and Company v. Shri Mahabir Prashad 1979 (1) R.C.R 422. In that case, the landlord had come with a positive case that he was carrying on business at Kaithal and now, after having closed business there he has shifted to Delhi and living in a rented house which fact was disputed by the tenant. This tenant's case was that the landlord was still carrying on business in Kaithal and the so-called shifting to Delhi was merely a camouflage for seekino eviction. There, the admitted position of the landlord was that right from the days of his ancestors, he had been carrying on business at Kaithal but had to discontinue it. It is in this context that Sachar, J. felt that the facts as alleged required investigation and, therefore, leave was granted to the tenant on that limited point. But here, it is nobody's case that the landlord is carrying on business at Chandigarh. He is in fact living in a rented house in Delhi as a retired military personnel and there is nothing which required investigation in the present case particularly when one of the sons of the landlord is working at Delhi and no enquiries are made by the tenant to enable him to deny this fact.
35. There is thus no merit in the revision-petition and the same is dismissed with costs. The tenant is, however, allowed six months time to vacate the premises.
36. Revision dismissed
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