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Case Summary — Civil Revision Petition (Sankarasubban, J.)

Factual and Procedural Background

The landlord filed R.C.P. No. 29 of 1996 under Sections 11(3) and 11(4)(iii) of the Kerala Buildings (Lease and Rent Control) Act, seeking eviction of the tenant. The principal ground alleged under Section 11(3) was that the landlord required the scheduled building for his son to start a business selling cool drinks and light refreshments; the son was described as married, unemployed and dependent on the landlord. Another ground alleged (under Section 11(4)(ii)) was that the tenant had possession of another building nearby where he conducted a photostat business, a telephone booth and typewriting work.

The tenant replied that he had inherited occupation from his father (who died in 1988) and continued a bakery business in the scheduled building, denied possessing any other building, contested the landlord's claim of dependency of the son and asserted entitlement to the Second Proviso to Section 11(3) (i.e., that he depended mainly on income from the business and that no suitable alternative premises were available).

Evidence included P.Ws 1–4 and Exhibits A1–A12 for the landlord, and C.P.Ws 1–4 for the tenant; the Accommodation Controller's register was produced (Ext. X2 / X1). The Rent Control Court found the landlord's need bonafide, rejected the tenant's claim under the Second Proviso, rejected the landlord's alternate-accommodation claim, and ordered eviction under Section 11(3). The Rent Control Appellate Authority (RCA) in R.C.A. No. 57 of 1998 upheld that decision. The tenant sought Civil Revision against the eviction order.

Legal Issues Presented

  1. Whether the landlord's claimed requirement of the scheduled building for his son constituted a bonafide need under Section 11(3) of the Kerala Buildings (Lease and Rent Control) Act.
  2. Whether the tenant is entitled to the benefit of the Second Proviso to Section 11(3) — specifically: (a) whether the tenant depends for his livelihood mainly on income derived from the business conducted in the building; and (b) whether there was no suitable building available in the locality to carry out such business.
  3. Whether the landlord's alternative contention under Section 11(4)(ii)/(iii) (that the tenant occupied other premises/use) justified eviction.

Arguments of the Parties

Petitioner's (Tenant's) Arguments

  • Challenged the finding of a bonafide need by the landlord, contending that such need was not properly proved.
  • Argued entitlement to the Second Proviso to Section 11(3): asserted that he depended mainly on income from the business in the scheduled building and produced the Accommodation Controller's register to show no vacant buildings in the locality.
  • Cited precedents (Sadanandan v. Kunheen, 1991 (2) KLT 628; Krishnankunju Raveendra v. Sukumara Pillai, 1999 (3) KLT 373) to support the contention that no alternate building was available and thus the proviso should apply.
  • Contended that the landlord's son had his own income and vocation and was not dependent on the landlord.

Respondent's (Landlord's) Arguments

  • Maintained that the requirement for the landlord's son to start the stated business was bonafide and that the son was dependent as alleged.
  • Contended that the tenant had other accommodation/use (evidence of occupation/use of a Punnaparambil building for photostat, telephone booth, typewriting, etc.), and that the tenant failed to prove that any such alternate premises were unsuitable for his trade.
  • Relied on evidence including Exhibits A6–A12, a sale deed (Ext. A9), property tax extract (A6 series), telephone licence/application documents and photographs to show that other buildings existed and were used by the tenant; argued that Ext. A12 (an advertisement) indicated vacant buildings.
  • Relied on the principle (as cited from Kochappan Pillai v. Chellappan, 1976 KLT 1) that the burden is on the tenant to prove non-availability of suitable buildings, and that the Accommodation Controller's register (best evidence) could be taken as authoritative unless there was contrary proof.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sadanandan v. Kunheen, 1991 (2) KLT 628 That the negative fact of "no suitable building in the locality" must be proved by the tenant to attract the proviso; as an exemption, the tenant must establish the integrants of the proviso; in appropriate cases a positive, unchallenged affirmation by the tenant may suffice and then burden may shift to the landlord. The court examined this authority but found it not applicable to the facts here because evidence (including Ext. A12 and other material) indicated vacant/suitable buildings and the tenant failed to establish that such buildings were unsuitable or unavailable.
Krishnankunju Raveendran v. Sukumara Pillai, 1999 (3) KLT 373 Confirms that a tenant's categorical, unchallenged assertion that no suitable vacant buildings exist may be sufficient; courts must consider whether evidence shows vacant rooms are suitable and available to the tenant. The court noted the principle but held it inapplicable on these facts: the tenant did not successfully show that apparently vacant rooms (or other buildings) were unsuitable, and the lower courts had relied on other evidence indicating occupation/use of other premises by the tenant.
Kochappan Pillai v. Chellappan, 1976 KLT 1 States that burden is on the tenant to prove non-availability of buildings; the best evidence is information from the Accommodation Controller — if the Accommodation Controller cannot find any vacant building, the court should accept that evidence. The opinion referred to this principle when discussing the Accommodation Controller's register. The court observed that the register may be incomplete (vacancy noted only if informed) and did not treat the register entry as dispositive against other evidence (such as Ext. A12 and other documentary/photographic material showing alternate premises and uses).

Court's Reasoning and Analysis

The court undertook a step-by-step appraisal of the evidence and the legal burden associated with the Second Proviso to Section 11(3).

1. Nature of the Second Proviso: The court emphasized that the proviso contains two distinct limbs which the tenant must prove — (a) dependence for livelihood mainly on income from the business carried on in the rented building, and (b) non-availability of any suitable building in the locality to carry on such business. Both limbs are required; proving one alone is insufficient.

2. Accommodation Controller's Register: The tenant produced the Accommodation Controller's vacancy register through CPW3 (Ext. X1/X2), which showed no vacancies for the relevant period. The court observed, however, that the register may not reflect all vacancies because entries are made only if the Controller is informed; landlords may let buildings without notifying the Controller. Thus, the absence of entries does not conclusively establish that no vacant buildings existed.

3. Burden of Proof and Precedents: The court reviewed authorities cited by the parties (Sadanandan, Krishnankunju, Kochappan Pillai) about the burden and quantum of proof for the negative fact of non-availability. It acknowledged those principles but analyzed their applicability on the facts before it.

4. Documentary and Oral Evidence: The court examined landlord's exhibits and witness testimony: - Ext. A12 (an advertisement) suggested the existence of vacant buildings in the locality. - Exts. A6 series (property tax extract), A9 (sale deed), A10 (photograph), and documents relating to telephone booth licence/application (Ext. P7; Ext. A8) supported that the tenant had been occupying or using other premises (Punnaparambil building) for photostat/telephone/typing services at material times. - The court noted that although the landlord could not show exact income from the photostat business, it was the tenant's duty to demonstrate that income from that business was less than income from the bakery business if he wished to claim he depended mainly on bakery income.

5. Evaluation of Tenant's Case: The tenant's categorical assertions that no suitable vacant premises were available were not supported in the present record in a manner that displaced other documentary evidence. The tenant did not successfully show that any allegedly vacant rooms were unsuitable for his bakery business or that the tenant's income was mainly from the bakery to the exclusion of income from other activities.

6. Distinguishing Authorities: On this evidentiary matrix, the court distinguished the precedents relied on by the tenant (noting that in those cases the tenant's unchallenged evidence of non-availability played a decisive role). Here, by contrast, the record showed indications of other premises and uses, and an advertisement for vacant premises; therefore, the precedents did not require a different outcome.

7. Conclusion of Analysis: Taking the evidence as a whole, the court concluded that the lower courts were justified in finding a bonafide need for the landlord's son and that the tenant had failed to establish both limbs of the Second Proviso. Accordingly, the eviction order under Section 11(3) was sustained.

Holding and Implications

Holding: The Civil Revision Petition is dismissed; the eviction order passed under Section 11(3) of the Kerala Buildings (Lease and Rent Control) Act is upheld. The tenant was given time to vacate the premises until 31st May, 2001.

Implications:

  • Direct effect: The eviction order in favour of the landlord is sustained and the tenant is required to vacate by the date specified.
  • On the legal issues: The court reaffirmed that a tenant seeking the benefit of the Second Proviso to Section 11(3) must prove both that he depends mainly on income from the business conducted in the premises and that no suitable building is available in the locality; absent satisfactory proof of both limbs, the proviso does not apply.
  • No broader new precedent or expansive change in law is announced by the opinion; the court applied existing principles to the facts and distinguished the precedents relied upon by the tenant on factual grounds.

This summary is prepared exclusively from the content of the provided opinion and does not add facts or inferences beyond that text.

    Varghese Eapen v. Varghese

    Sankarasubban, J.:— This Civil Revision Petition is filed against the Order in R.C.A No. 57 of 1998 on the file of the Additional Rent Control Appellate Authority, Kottayam, which was preferred against the order in R.C.P No. 29 of 1996. R.C.P No. 29 of 1996 was filed by the landlord on two grounds. The landlord filed the petition for eviction under Secs. 11(3) and 11(4)(iii) of the Kerala Buildings (Lease and Rent Control) Act (hereinafter referred to as ‘the Act’). The landlord required the building to meet the needs of his son in order to start a business in cool drinks and light refreshments in the building. The son who is married remains unemployed and the schedule building is required for the business aforesaid. The son depended on the landlord. Another ground for eviction was under Sec. 11(4)(ii) of the Act.

    2. The allegation was that the tenant is in possession of another building close to the schedule building wherein he is conducting photostat business, telephone booth and typewriting job work. The tenant in his objection contended that the building was previously under the occupation of his father and on his death in 1988 he took over the business and continued occupation of the building conducting backery business. From time to time on the compulsion of the landlord and threat of eviction the rent was enhanced, which originally commenced at the rate of Rs. 40/- per month. He disputed the need alleged for the son of the landlord conducting that he has no experience in the business. The son is having his own income and vocation and not a dependent on the father. The need alleged, according to the tenant, was only a pretext for eviction for the purpose of collecting huge rent and security on his eviction from the premises. The tenant denied of having possession over any other building. He also claimed the benefit of the Second Proviso to Sec. 11(3) of the Act.

    3. The evidence in this case consists of P.Ws 1 to 4 and Exts. A1 to A12 series for the landlord and C.P.Ws 1 to 4 for the tenant. Ext. X2 is the register produced by the Accommodation Controller. After appreciating the materials tendered by both sides, the Rent Control Court came to the conclusion that the need alleged by the landlord was bonafide. It also held that the tenant is not entitled to the benefit of the Second Proviso to Sec. 11(3) of the Act. However, the claim of the landlord that he is entitled to eviction on the ground that the tenant has got another accommodation was rejected. The Rent Control Court granted an order of eviction under Sec. 11(3) of the Act and rejected the claim under Sec. 11(4)(iii) of the Act. Against the above order, an appeal was filed before the Rent Control Appellate Authority as R.C.A No. 57 of 1998. The Rent Control Appellate Authority upheld the decision of the Rent Control Court. It found that the requirement was bonafide. It was found that the tenant is not entitled to the benefit of the proviso. The contention under Sec. 11(4)(iii) of the Act, which was raised by way of Cross Objection was also rejected. The tenant has come in revision against the order of eviction passed under Sec. 11(3) of the Act.

    4. The main contention raised by the learned counsel for the petitioner is that the court below was not correct in granting an order of eviction under Sec. 11(3) of the Act. The bonafide need has not been properly proved. So far as the benefit of the proviso is concerned, it is stated that both the Authorities were not correct in holding that the son of the landlord depended for his livelihood mainly on the income derived from the business and further contended that the tenant has produced the register from the Accommodation Controller, which shows that no building was available and contended on the basis of the decisions reported in Sadanandan v. Kunheen, 1991 (2) KLT 628 and Krishnankunju Raveendra v. Sukumara Pillai, 1999 (3) KLT 373, that the court ought to have found that there was no alternate building available. So far as the question of bonafide need is concerned, both the courts have found that the landlord requires the building for the purpose of his son. Eventhough contention was raised that the landlord's son is having business, he has not been able to prove that. It is now well settled that Sec. 11(3) of the Act is not a financial dependency and the word “dependent” in Sec. 11(3) of the Act has acquired a definite meaning and on that basis it cannot be said that the landlord's son is not a dependant. We went through the records in the case and we are satisfied that the findings of the courts below that the landlord requires the building bonafide for his son is correct.

    5. The next question is whether the tenant is entitled to the benefit of the Second Proviso to Sec. 11(3) of the Act. The proviso has got two limbs; one is that the tenant should depend for his livelihood mainly from the income derived from the business conducted in the building and the other is that there is no suitable building available in the locality to carry out such trade or business. A reading of the proviso shows that both of these facts have to be proved by the tenant. It is not enough, if the tenant proved that he is depending on the income derived from the business. He has to further prove that there is no other alternate building. If he fails to prove the above, he will not be entitled to the benefit of the second proviso. So far as the alternate accommodation is concerned, the tenant examined the Accommodation Controller as CPW3. CPW3 in his evidence stated that he brought the vacancy register from 1-1-1991. As per this, there is no vacant building. The register is marked as Ext. X1. In cross-examination, he has stated that the vacancy will be noted only if he is informed. He further stated that the landlord may give building on rent without informing him. When he was confronted with Ext. A12, he submitted that it does not find a place in the register. Learned counsel for the petitioner contended that the decision reported in Kochappan Pillai v. Chellappan, 1976 KLT 1 says that the burden is on the tenant to prove that there is no building available in the locality. The best evidence that the tenant can give is to get information from the Accommodation Controller regarding the availability of the building. When the authority is not able to find out any vacant building, the court has to accept that evidence. Before considering the arguments on this aspect, we will go through the evidence adduced by the parties on this question.

    6. Both the courts relied on the fact that in the reply notice given by the tenant he has not stated that no alternate accommodation is available. It is further submitted that the tenant did not enquire with the Accommodation Controller on receiving the notice. Ext. A12 is an advertisement, which will show that there are vacant buildings available. This is spoken to by CPW 2, son of the petitioner. As already stated, learned counsel for the petitioner relied on the decision in Sadanandan v. Kunheen, 1991 (2) KLT 628. In the above decision, Kalliath, J. speaking for the Bench, held as follows:

    “That there is no suitable building in the locality is a negative fact which has to be proved for attracting the proviso. In fact since the proviso works as an exemption the person who desires to get the exemption has to prove the integrants of the proviso and to that extent there cannot be any doubt. But being a negative aspect and that too, the availability of a suitable building in the locality, the nature and quantum of evidence that has to be proved by the tenant may, in appropriate cases, be confined to a positive affirmation by the tenant before the court, that no suitable building is available in the locality not successfully challenged in Cross examination. Then the burden shifts to the landlord since he can positively prove the fact that buildings/building are/is available.”

    7. In the decision in Krishnankunju Raveendran v. Sukumara Pillai, 1999 (3) KLT 373, the Division Bench observed as follows:

    “It is clear that the above finding was made only on the basis of the so-called admission by the tenant and the evidence let in by C.P.Ws 2 and 3 regarding the non-availability of a building in the locality was not considered by both the courts below. The tenant, when examined as CPW1, had categorically stated that no vacant building were there in the locality suitable for running a teashop. The above version of CPW 1 that no suitable buildings were available in the locality for carrying on his teashop business was not seriously challenged even though certain questions were put to him regarding certain vacant rooms. Even though the existence of certain vacant buildings were put to CPW1 it was not put to him that the above buildings were suitable for running a teashop business. In fact, there was no evidence to show that those rooms, even if were vacant, were suitable for conducting the teashop business which the petitioner was conducting in the petition schedule building and were available to the tenant.”

    8. In chief examination, D.W 1 says thus:

    9. No other evidence has been adduced by the tenant except examining CPW4. If the building is vacant, the same has to be informed to the Accommodation Controller. But it is common knowledge that this duty is discharged by committing breach and not complying with it. The mere fact that the register of the Accommodation Controller does not show that there was no vacant building does not immediately mean that the tenant's case has to be accepted. If there was evidence to show that in case other buildings were vacant, it is the duty of the tenant to establish that those buildings are not actually vacant or that those buildings are suitable for the purpose.

    10. In this case, Ext. A12(a) shows that there are vacant buildings. Hence, we are of the view that the two decisions cited are not applicable to the facts of this case. This aspect has been discussed by the Appellate Authority. On the death of the father, the counter petitioner took up that business in the Punnaparambil building. Probably, may be when the counter petitioner felt some inconvenience in the Punnaparambil building that he shifted the bakery business to the petition schedule room. He used the Punnaparambil building for the conduct of photostat and STD booth and typewriting. Ext. A9 is the copy of the sale deed alleged to have been executed by Punnaparambil Kurian. Ext. A6 series extract of property tax assessment register would go to show that the building was originally in the occupation of the counter petitioner. Ext. P7 document would show that it is the counter petitioner himself who applied for public telephone booth in the building. Ext. A8 shows the conduct of telephone booth there and the amount of commission given to the counter petitioner in respect of the public telephone booth. Ext. A10 is the photograph and negative showing the Punnaparambil building. The board such as STD, ISD, local calls, photostat, typewriting, etc. are clearly seen in the photograph. In spite of Ext. P9, the lower court held that since the licence stands in the name of the counter petitioner, he is in occupation of the same. No doubt, the landlord was not able to show the actual income from the photostat business. But in such circumstances, it is the duty of the tenant to show that the income received from the photostat business was less than the income from the bakery business. In the absence of such proof, it cannot be said that the main income is from the business conducted in the plaint schedule building.

    11. Thus, on the whole, we are satisfied that both the courts are correct in holding that the landlord is entitled for eviction of the tenant on the ground of Sec. 11(3) of the Act and tenant is not entitled to the benefit of the Second Proviso. We give time to the tenant to vacate the premises till 31st May, 2001.

    12. Civil Revision Petition is dismissed.

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    Varghese Eapen v. Varghese
    (Apr 9, 2001)