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Kallullathil Sasidharan v. Kadeesumma & Others
Concise Analytical Summary of the Opinion (Abdul Rehim, J.)
Factual and Procedural Background
The matter is a revision petition by the tenant in RCP. 32/07 (Rent Control Court, Vatakara) challenging concurrent findings that ordered eviction under Section 11(4)(v) of the Kerala Buildings (Lease and Rent Control Act), 1965. The landlords alleged that the tenant had not put the schedule shop room to use for about two years: although the tenant opened the shop in the morning, he thereafter worked as a collection agent for a chit fund and left the shop unstaffed with only very old Ayurvedic medicine bottles kept there, with no sales — the opening of the shop being only a shield against eviction. The tenant resisted, asserting he traded in Ayurvedic medicines in the room after obtaining licences and had not kept the room permanently closed; it was admitted he worked as a chit-fund collection agent for about one hour daily but claimed to conduct business in the remaining time.
Evidence before the Rent Control Court included oral testimony from the landlords' witnesses (PW1 and PW2, the Advocate Commissioner), documentary exhibits A1 and A2 for the landlords; the tenant produced RW1 and RW2, documentary exhibits B1–B29, and the Commission Report as Ext. C1. The Rent Control Court found cessation of occupation and ordered eviction under Section 11(4)(v). The Appellate Authority affirmed the finding of no actual occupation. The tenant filed the present revision petition seeking relief in this Court.
Legal Issues Presented
- Whether the landlords discharged the burden of proving "cessation of occupation" of the rented commercial premises so as to warrant eviction under Section 11(4)(v) of the Kerala Buildings (Lease and Rent Control Act), 1965.
- Whether mere physical or legal possession of the premises by the tenant constitutes "occupation" within the meaning of Section 11(4)(v), or whether the premises must be shown to be actually put to use.
- Whether a tenant may rely, in revision proceedings, on an unpleaded and unevidenced contention (here, non-renewal of a licence due to a court stay preventing practice/manufacture) as a "reasonable cause" excusing cessation of occupation.
- Whether this Court in revisional jurisdiction may examine and entertain new factual contentions and evidence that were not pleaded or produced before the courts below.
Arguments of the Parties
Landlords' Arguments
- The schedule shop room was not put to any use for about two years and thus there was cessation of occupation.
- The tenant only opened the shop in the morning and then worked as a chit-fund collection agent, leaving the shop unattended; only old and unsaleable Ayurvedic medicines were kept there.
- No sale transactions occurred, and the opening of the shop was only a shield against eviction.
Tenant / Appellant's Arguments (as pleaded before lower courts)
- The tenant did trade in Ayurvedic medicines in the schedule room after obtaining licences, and the room had not been permanently closed.
- Although the tenant worked as a collection agent for about one hour daily, he conducted business in the shop room during the remaining time.
- Documentary exhibits (B1–B29) including municipal licences, electricity receipts, building tax receipts, licences for Ayurvedic preparations and registration certificate were produced to show possession and business activity.
Revision Petitioner's Additional Arguments (before this Court)
- Senior counsel argued that Ext. B29 (licence for manufacture of Ayurvedic preparations) was not renewed after 31/03/2005 because a Division Bench had stayed continuance of practice/manufacture by traditional Ayurvedic practitioners; thus, from 01/04/2005 the tenant was effectively prevented from manufacturing/selling Ayurvedic medicines.
- It was contended that this circumstance constituted a "reasonable cause" for cessation of occupation, and that the lower courts omitted to address whether cessation was without reasonable cause under Section 11(4)(v).
- Counsel urged that this Court could take judicial notice of the stay and consider it as excusing the cessation of occupation.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Kurian Thomas v. N. Sreedharan Menon (2004 (3) KLT 326) | To satisfy the state of "occupation" the tenant must show that the premises is actually put to use rather than mere physical possession. | The Rent Control Court and the Appellate Authority relied on this dictum to hold that mere physical possession was not enough and that the tenant failed to prove actual use; this Court treated the dictum as supporting the concurrent finding of cessation of occupation. |
| Mathai Antony v. Abraham (2004 (3) KLT 169L) | Possession or legal possession by itself does not constitute "occupation"; occupation requires possession combined with something more (actual use). | The courts below relied on this authority to conclude that possession alone did not amount to occupation and to find cessation of occupation; this Court accepted that principle in upholding the concurrent findings. |
| Symon v. Rappavi (2008 (31) KLT 1210) | Reinforces that legal possession alone does not constitute "occupation"; the possession must combine with additional elements (actual use) to amount to occupation. | The Appellate Authority cited this decision in support of its conclusion that there was no actual occupation; this Court noted that the Appellate Authority's reliance on it was part of the consistent line of authority applied. |
| Kavikkattil Rajagopalan v. Gopalan (2004 (2) ILR Civil 102) (2004 (1) KLT S.N 54 Case No. 70) | When a building is let out for business purposes and no business is carried on therein, the presumption arises that there is cessation of occupation. | The Appellate Authority applied this principle when reappraising the evidence and finding no proof that business was being carried on in the premises; this Court accepted the appellate conclusion that the presumption of cessation of occupation applied on the facts. |
Court's Reasoning and Analysis
The Court conducted a step-by-step analysis rooted in the pleadings, the record of evidence and established precedents:
- Evaluation of evidence at trial: The Advocate Commissioner's report recorded no person present at the shop during inspection; only very few and very old bottles of Ayurvedic medicines were observed (one bottle bore a manufacturing date of 24/07/94) and no customers were seen despite the Commissioner remaining for about an hour. Although the tenant produced documentary licences and receipts (Exts. B1–B29), the Rent Control Court noted the absence of evidence regarding actual conduct of business; Ext. B29 (licence for manufacture) was not renewed after 31/03/05.
- Application of legal principles: Relying on earlier decisions (Kurian Thomas; Mathai Antony; Symon; Kavikkattil Rajagopalan), the courts below held that mere physical or legal possession was insufficient to constitute "occupation" under Section 11(4)(v) and that the landlords had discharged the burden of proving cessation of occupation. The Appellate Authority concurred after reappraisal of oral and documentary evidence.
- Scope of revisional review and new contention: On revision, the tenant sought to rely for the first time on the contention that a Division Bench's stay prevented renewal of the licence (Ext. B29), thereby furnishing a "reasonable cause" for cessation. The Court emphasised that this contention was neither pleaded nor supported by evidence before the courts below. While recognising that meticulous pleadings are not always necessary in rent control matters, the Court held that findings must be based on pleadings and evidence adduced. In revisional jurisdiction the Court declined to entertain a new factual contention lacking basis in the record.
- Interpretation of "reasonable cause" under Section 11(4)(v): The Court explained that "reasonable cause" must be beyond the control of the tenant and must prevent the tenant from putting the premises to regular use or from continuing commercial activity in a way that could not have been rectified by the tenant. To invoke that exception, the tenant should concede cessation and demonstrate that it resulted from such a reasonable cause; where cessation is stoutly denied, the tenant cannot rely on an unpleaded, unevidenced "reasonable cause".
- Conclusion on concurrent findings: Given the absence of pleaded or proved reasonable cause and the concurrent factual findings supported by the Commission Report and other evidence, the Court found no illegality, irregularity or impropriety in the judgments below and declined to interfere in revisional jurisdiction.
- Equitable accommodation: Although dismissing the revision, the Court exercised discretion to grant the tenant reasonable time to surrender vacant possession, specifying conditions and directions for filing an affidavit, payment of arrears and occupational charges, and deferment of physical delivery by the execution court until the specified date/conditions.
Holding and Implications
Holding: The revision petition is dismissed and the concurrent findings of the Rent Control Court and the Appellate Authority holding cessation of occupation and ordering eviction under Section 11(4)(v) are upheld.
Direct consequences and conditions:
- The tenant (revision petitioner) is directed to surrender vacant possession of the premises on or before 31/01/2011.
- Conditions imposed: the tenant must file an affidavit in the execution court or Rent Control Court within three weeks undertaking to surrender vacant possession by 31/01/2011; to pay arrears of rent, if any, within one month of the judgment date; and to pay occupational charges at the prevailing monthly rent rate regularly until surrender.
- The execution court is directed to defer delivery of the building until 01/02/2011, once the affidavit is filed and the arrears and occupational charges are paid as directed.
Implications for precedent: The Court applied existing precedents concerning the meaning of "occupation" and the requirement of proof of actual use for commercial premises; the judgment affirmed the established legal position but did not announce or purport to create a new legal principle beyond applying those authorities. The decision's operative effect is the dismissal of the revision and the affirmation of eviction with conditional temporal relief for vacatur.
Abdul Rehim, J.:— The tenant in RCP. 32/07 on the files of the Rent Control Court, Vatakara is in revision against the concurrent findings ordering eviction under Section 11(4)(v) of the Kerala Buildings (Lease and Rent Control Act), 1965 (for short ‘the Act’). The landlords alleged that, the petition schedule shop room is not being put to any useiby the tenant for about two years. Contention was that the respondent, eventhoughhe is opening the shop room during the morning, is thereafter working as Collection Agent of a chit fund namely, “Prarthana Chit Funds”. There will not be anybody in the shop room till it is being closed by the tenant, and some very old useless Ayurvedic Medicines alone are kept in bottles in the shop room, which are not fit for sale. There is no sale transactions and the shop room is being opened onlynas??? a shield “against legal proceedings for eviction.
2. The Rent Control Petition was resisted contending that the respondent is doing trade in Ayurvedic medicines in the schedule room after obtaining licence and that the tenant had never kept the room permanently closed.
3. Eventhough it is admitted that the tenant is working as Collection Agent of a chit fund, it is only for one hour on daily basis and that he is doing business in the scheduled room during the remaining time.;
4. Evidence on behalf of the landlords consisted of oral testimonies of PW 1, one among the landlords, and PW 2 who is the Advocate Commissioner. Exts. A1 and A2 were marked on behalf of the landlords. Tenant was examined as RW 1. RW 2 is a witness examined writis behalf. Exts. B1 to B29 were marked from the side of the tenant. Ext. C1 is the Commission Report.
5. The Rent Control Court on evaluating the entire evidence, both oral and documentary, found that there is cessation of occupation by the tenant., It is noticed that, while the Advocate Commissioner visited the schedule room, neither the tenant nor any other person was present in the shop room. The Commissioner noted that only very few bottles of Ayurvedic medicines were seen kept in the ‘Almirahs’ and all such bottles were very old. Even it is noticed that the date of manufacturing in one of the bottles is 24/07/94, approximately about seven years prior to the date of inspection. Labels affixed on the bottles appeared as too old and he could not notice that no customer is coming to the shop, inspite he spent there about one hour. Eventhough tenant produced Exts. B1 to B29 documents like licenses of the Municipality, receipts for payment of electricity charges, Building Tax Receipts, Licence for Ayurvedic preparations, registration certificate etc. to show possession of the shop room, the Rent Control Court noticed that no evidence regarding actual conduct of business could be produced from the side of the tenant. Further, it was noticed that Ext. B29 licence for manufacture of Ayurvedic preparations was not seen renewed after 31/03/05. On evaluating the evidences Rent Control Court found that the landlords have sufficiently discharged their burden of proving cessation of occupation and that the tenant had failed in rebutting the same by proving that he is still occupying the building. It is observed that mare physical possession could not be considered as ‘occupation’ as contemplated under Section 11(4)(v). In this regard, reliance was placed on the decisions of this Court in Kurian Thomas v. N. Sreedharan Menon (2004 (3) KLT 326) and Mathai Antony v. Abraham (2004 (3) KLT 169L Accordingly, eviction was ordered under Section 11(4)(v).
6. In appeal filed by the tenant, contentions were raised to the effect that there is no convincing evidence to prove cessation of occupation and that there is sufficient evidence regarding possession of the shop room with its regular functioning But the Appellate Authority concurred with the findings of the Rent Control Court to the extent that there was no actual ‘occupation’. Relying on the dictum in Kurian Thomas's case (cited supra) it is observed that in order to satisfy the state of affair of ‘occupation’, the tenant has an obligation to show that the premises is actually put to use rather than having physical possession of the premises. The dictum in Mathai Antony's case (cited supra) and Symon v. Rappavi (2008 (31) KLT 1210) Is that, possession or rather legal possesion does not by itself constitute ‘occupation’ and the possession must combine with something more to constitute ‘occupation’. It is further observed that this Court in Kavikkattil Rajagopalan v. Gopalan (2004 (2) ILR Civil 102) (2004 (1) KLT S.N 54 Case No. 70) held that when a building is let out for business purpose and if no business is carried on therein; the presumption is that there is cessation of occupation. On a total reappraisal of the oral and documentary evidence, Appellate Authority found that there is no evidence to prove that the building has been put to use and that any business is being ‘carried on therein. Hence, the Appellate Authority concurred with the findingsregarding cessation of occupation.
7. Heard, Sri. K. Jayakumar, Senior Counsel appearing for the revision petitioner and Sri C. jayachandran, counsel appearing for the respondents. The senior counsel advanced arguments based on Ext. B29 licence for manufacture of Ayurvdejc preparations. It is contended that the tenant is a ‘parambarya vaidyan’ (practitioner in tratiditonal medicines). The question whether the traditional Ayurvedic Practioners can be permitted to practice and to manufacture Ayurvedic preparations, was an issue pending before this Court. A Division Bench of this Court had stayed continuance of such practice and only in that context Ext. B29 was not renewed after 31/03/05. Therefore, virtually the revision petitioner was prevented from continuing practice by preparing Ayurvedic medicines after 01/04/05. Learned Senior Counsel points out that the above fact ought to have been considered as a reasonable cause for the cessation of occupation, even if it is found that there was no business being carried on in the scheduled building. It was argued that the aspect as to whether the cessation of occupation was without any ‘reasonable cause’, was omitted to be considered by the courts below. The Rent Control Court had failed to enter upon any specific findings in this regard, with advertance to Section 11(4)(v) is the contention. Further argument is that the findings of the Appellate Authority in this regard is highly improper and unsustainable.
8. On a scanning of the impugned order of the Rent Control Court and judgment of the Appellate Authority as well as pleadings on both side, we notice that the contention now raised was never pleaded or advanced before the courts below. New any evidence was let in to show that the “tenant was prevented in any manner from continuing with his practice or with sale of Ayurvedic Medicines. On the other hand, specific case of the tenant is that he was in occupation and was continuing business in the schedule room. Learned Senior Counsel argued that this Court can even take judicial notice of the fact that a stay order was in force preventing renewal of licence, thereby preventing the tenant from occupying the scheduled room and from putting the same to regular use. The said aspect should be considered as “reasonable cause” for finding that there is no cessation of occupation and for denying eviction under Section 11(4)(v), is the contention.
9. While appreciating the ground urged by the revision petitioner as above, we are afraid that we cannot entertain such arguments. Eventhough meticulous pleadings are not necessary in a rent control petition, courts are bound to arrive at conclusions based on pleadings of parties and evidence adduced on both sides. As stated above, there was neither any pleading nor any evidence adduced on behalf of the tenant setting up any reasonabe cause for non-use of the building. On the contra, pleadings and evidence were only to the effect that there was no cessation of occupation and the building was put to regular use by the tenant. In exercise of the revisional jurisdiction vested on this court, we are not at all justified in appreciating any contention which has no basis on pleadings and evidence.
10. The mooted question for consideration is as to whether in exercise of revisional jurisdiction this Court can look into of make a search as to whether there was any reasonable cause for the alleged non-occupation, when the cessation of occupation was not at all admitted and when the specific plea and evidence was only total denial of the alleged cessation. The “reasonable cause” contemplated under Section 11(4)(v) of the Act should be a cause which is not within the control of the tenant and should prevent him from putting the tenanted premises to regular use and occupation. When it comes to the case of commercial space it should be a cause which prevents the tenant from continuing with the business activity which could not be rectified by the tenant within his control of affairs. In order to get the benefit of “reasonable cause” enumerated in Section 11(4)(v), the tenant is expected to concede that there was cessation of occupation and that such cessation was due to some reasonable cause, which was beyond his control. In a case were there is stout denial of the allegations regarding cessation, the tenant is not justified in banking upon any “reasonable cause” which was neither pleaded nor proved to contend that the cessation was justifiable. Hence, we are of the considered opinion that the arguments advanced before this Court for the first time, appealing to take judicial notice of any event as ‘reasonable cause’ for the cessation of occupation, could not be entertained in exercise of the attenuated jurisdiction, which is revisional in nature. Therefore, we find no illegality, irregularity or impropriety with respect to the concurrent findings of the courts below. Accordingly, the revision petition deserves no merit and the same is liable to be dismissed. However, considering the totality of factual circumstances, we feel that it is only just and proper to grant reasonable time for the tenant to surrender vacant possession of the building.
11. In the result, while dismissing the revision petition, time is granted till 31/01/11 for the Revision Petitioner/tenant to vacate the premises, subject to the following conditions:—
“The revision petitioner/tenant will file an affidavit before the execution court or the Rent Control Court, as the case may be, undertaking to surrender vacant possession of the scheduled premises to the first respondent on or before 31/01/11 and to pay arrears of rent if any due within a period of one month from today. By the same affidavit it will be further undertaken that occupational charges at the rate of the monthly rent prevailing will be paid regularly till surrender of the scheduled premises. The affidavit as above shall be filed within a period of three weeks from today.”
12. The execution court is directed to put off delivery of the building till 01/02/11, once filing of the affidavit and payment of arrears of rent as well as occupational charges, as directed above, is noticed.
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