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Smart Summary

Structured Summary of the Opinion (V. Gupta, J.)

Factual and Procedural Background

Landlord Col. Prem Singh Grewal (a "specified landlord" as defined under the East Punjab Urban Rent Restriction Act, 1949, as amended) filed four separate ejectment applications under Section 13-A of the Act on 10-11-1986 against four tenants. The landlord alleged the property had been converted into four portions, each let at a monthly rent of Rs. 18/-, with tenants using the verandah/front as shop space and the rear portion for residence. The landlord sought possession for his own use and occupation, asserting he had no residential building in Patiala and stayed with his brother when in Patiala. The Rent Controller disposed of the four petitions by a single order dated 7-9-1988, allowing ejectment after finding that the disputed premises were used both for trade and residence (i.e., not solely for business). The tenants sought permission to contest under Section 18-A and, following evidence and arguments, the Rent Controller reached the impugned finding and passed ejectment orders on 7-9-1988. The High Court considered revisions arising from that controller's order.

Legal Issues Presented

  1. Whether the premises in dispute qualify as a "residential building" within the meaning of the Act (i.e., whether they are not "non-residential" because they are not solely used for business or trade).
  2. Whether, under the second proviso to Section 13-A, a specified landlord can recover possession of more than one residential (or scheduled) building inclusive of any part or parts thereof if the building is let out in parts — in other words, whether the landlord could seek ejectment of multiple tenants under Section 13-A.
  3. What is the scope of interference by the High Court in revisional jurisdiction under Sub-section (8) of Section 18-A when the Rent Controller has reached a finding of fact about the nature of use (residential vs. non-residential) of the premises?

Arguments of the Parties

Tenants' Arguments

  • The premises were let out for business purposes and described as a shop in earlier rent receipts and in prior pleadings; therefore they cannot be vacated for residential purpose under Section 13-A.
  • The premises are situated in a shopping centre area with many shops belonging to the landlord and his brother, supporting the claim the demised premises is commercial.
  • They produced evidence such as rent receipts (up to July 1985) and licences under the Shops and Commercial Establishment Act to show the premises were used for trade/business.
  • They relied on judicial authorities (Hari Mittal v. B.M. Sikka and Lal Chand v. Bal Kishan) in support of their contention that the premises were commercial and ejectment under Section 13-A was not permissible.
  • They contended that, even if parts were residential, the second proviso to Section 13-A prevents a landlord from recovering possession of more than one residential building inclusive of any part or parts thereof, so the landlord could at most eject only one tenant.

Landlord's Arguments

  • On appreciation of the entire evidence, the Rent Controller found the premises were residential (used both for trade and residence) and that factual finding should not be interfered with in revisional jurisdiction under Sub-section (8) of Section 18-A.
  • The second proviso to Section 13-A should be construed so as to serve the purpose for which Section 13-A was introduced (i.e., to allow the special remedy to specified landlords), implying a purposive construction favoring the statute's object.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hari Mittal v. B.M. Sikka, (1986) 89 (1) Pun LR 1 : AIR 1986 Punj & Har 119 (FB) Cited by the tenants in support of their contention that the premises were let out for business and, therefore, ejectment under Section 13-A was not permissible. The court recorded that the tenants relied on this authority but did not accept the tenants' overall factual case; the Rent Controller's contrary finding of mixed use (trade and residence) was held to be supported by evidence and was not disturbed on revision.
Lal Chand v. Bal Kishan, (1987) 92 Pun LR 222 Cited by the tenants to support the contention that the demised premises were commercial in nature and not subject to ejectment under Section 13-A. The court noted the reliance on this precedent but proceeded to uphold the Rent Controller's finding that the premises were used both for business and residence; the precedents were not treated as requiring interference with the controller's factual finding.

Court's Reasoning and Analysis

The Court addressed three intertwined strands: (a) the proper scope of revisional interference under Sub-section (8) of Section 18-A; (b) the factual question whether the premises were residential; and (c) the effect of the second proviso to Section 13-A on the landlord's entitlement to recover possession of multiple parts/units.

(a) Scope of Revisional Interference: The Court emphasized Sub-section (8) of Section 18-A, which bars ordinary appeals against a Controller's order for recovery of possession of any residential or scheduled building but permits the High Court to call for records to satisfy itself that the order is "according to law." The Court held that where a Rent Controller has reached a factual conclusion supported by evidence, that finding lies within the Controller's domain and is not to be lightly disturbed in revision. Even where two views are possible, the High Court will not substitute its view for that of the Controller.

(b) Whether the Premises Are Residential: The Court examined the evidence presented by both sides. The tenants pointed to rent receipts describing the property as a shop, rolling shutters, and licences under the Shops and Commercial Establishment Act as indicia of commercial use. The Court, however, gave weight to other evidence: the tenants' names appeared in the voters list at the demised address; one tenant applied for a ration card at that address; the landlord provided facilities (bathroom, kitchen, latrine) in the premises; and evidence indicated the tenants resided in the rear portion while conducting business from the front portion. The Court applied the statutory definitions: Section 2(g) defines "residential building" as any building which is not a "non-residential building," and "non-residential building" is defined as a building "solely used for the purpose of business or trade." Because the premises were not used solely for business — but for both residence and trade — they fell within the definition of a "residential building." Given that the Rent Controller's finding of mixed use was supported by evidence, the Court declined to interfere.

(c) Effect of the Second Proviso to Section 13-A: The second proviso provides that nothing in Section 13-A shall be construed as conferring a right to recover possession of more than one residential or scheduled building inclusive of any part or parts thereof if it is let out in parts. The Court interpreted this language to mean that even if a whole building is let out in different parts to different tenants, a landlord cannot, under Section 13-A, recover possession of more than one residential building (inclusive of parts). Therefore, Section 13-A permits recovery of immediate possession of "such residential building or scheduled building or any part or parts" but the second proviso prevents recovery of more than one such residential building inclusive of parts. The court thus concluded that the landlord could claim ejectment against only one tenant under Section 13-A; ejectment of other tenants would require pursuing remedies under Section 13 of the Act in accordance with law.

Applying that interpretation to the facts, the landlord chose to seek ejectment of Ram Niwas (C.R. No. 2389 of 1988), who occupied a corner part of the building as shown in the plan (Exhibit AW5/B). Consequently, the Court dismissed Ram Niwas's revision petition and allowed the other three revision petitions.

Holding and Implications

Core Ruling: The Court upheld the Rent Controller's finding that the disputed premises were used both for trade and residence and therefore constituted a "residential building" for the purposes of the Act; it further held that, under the second proviso to Section 13-A, a specified landlord cannot recover possession of more than one residential building inclusive of any part or parts thereof under Section 13-A.

Consequences and direct effects on the parties:

  • The revision petition filed by the tenant Ram Niwas (C.R. No. 2389 of 1988) was dismissed with no order as to costs.
  • The other three revision petitions were allowed with no order as to costs.
  • Ram Niwas was granted two months' time to vacate the premises on the condition that he deposits all arrears of rent, if any, and two months' advance rent with the Rent Controller within a fortnight, and furnishes a written undertaking that vacant possession will be delivered after the expiry of the two-month period.
  • For ejecting other tenants occupying parts of the same building, the landlord must pursue remedies under Section 13 of the Act; Section 13-A is a special, strictly construed remedy that allows recovery of immediate possession only subject to the limitation in the second proviso.

The opinion does not suggest the Court intended to lay down a broader novel precedent; it applied statutory definitions and accepted the Rent Controller's fact-finding as supported by the record in this case.

    Sohan Lal v. Col. Prem Singh Grewal And Another

    V. Gupta, J.

    1. This order will also dispose of Civil Revisions Nos. 2414, 2389 and 2390 of 1988 as all these four petitions were disposed of by one order by the Rent Controller, dated 7-9-1988.

    2. Landlord Col, Prem Singh Grewal filed these four ejectment applications, under Section 13-A of the East Punjab Urban Rent Restriction Act 1949 (as amended) against his four tenants separately. According to the landlord he was a specified landlord as defined. He retired from service with effect from 31-1-1980 and filed the present ejectment applications on 10-11-1986 alleging that earlier the property in dispute was converted into four portions and each portion was given at a monthly rent of Rs. 18/- plus house tax etc. to the tenants. The tenants started using verandah as shop whereas in the rear portion they started residing. The landlord requires the same for his own use and occupation keeping in view his status and family requirement. He has no residential building at Patiala in the urban area concerned in his occupation. Rather as and when he comes to Patiala he puts up with his brother who has got a house here. Thus, he wants to keep the building for his own use and occupation.

    3. The tenants on receipt of the notice, filed applications under Section 18-A of the said Act, supported by affidavits and other documents seeking permission to contest the petitions on the allegations that the application was not in accordance with law. The premises in question is a shop and cannot be vacated for residential purpose. In the ejectment application filed earlier by the landlord and his brother, regarding the premises in dispute, the same were described to be the shop. Even in the receipt regarding payment of rent issued prior to July, 1985, the premises were shown to be the shop. Moreover, the premises in dispute are situated in the area of shopping centre and there are about 20 shops of the landlord and his brother in this area. In these circumstances, the landlord was not entitled to ejectment under section 13-a of the amended act. The learned Rent Controller allowed the necessary permission to contest the ejectment applications, inter alia, on the ground whether the disputed premises is a residential building or not?"

    4. After considering the entire evidence led by the parties, the learned Rent Controller found thus,

    "I am clearly of the view that it stands proved on record that the premises in dispute are not solely used for trade, business rather those are used for trade and residence also."
    In view of that finding ejectment orders were passed against the tenants vide impugned order dated 7-9-1988.

    5. Learned counsel for the tenants-petitioners submitted that the finding of the Rent Controller that the premises in dispute are residential is wrong and illegal. According to the learned counsel, from the evidence on record, it could not be held that the premises are residential. The same were let out for business purposes as per rent note and, therefore, no ejectment order could be passed with respect to the demised premises under section 13-a of the amended act. In support of this contention reference was made to Hari Mittal v. B.M. Sikka, (l986) 89 (1) Pun LR 1 : (AIR 1986 Punj & Har 119) (FB) and Lal Chand v. Bal Kishan, (1987) 92 Pun LR 222. It was further contended that in any case under Section 13-A, second proviso, a landlord was not entitled to recover possession of more than one residential building inclusive of any part or parts thereof if it is let out in part or parts, and that being so, the landlord could eject only one of the tenants from the demised premises. On the other hand, the learned counsel for the landlord submitted that on the appreciation of the entire evidence, it has been found that the premises are residential and that being a finding of fact should not be interfered with in revisional jurisdiction, in view of Sub-section (8) of Section 18-A of the Act. He further submitted that second proviso to Section 13-A of the Act is to be construed in the manner that it serves the purpose for which Section 13-A was introduced in the Act.

    6. I have heard the learned counsel for the parties and have also gone through the relevant evidence on record.

    7. The scope for interference by this Court in the revisional jurisdiction is given under Sub-section (8) of Section 18-A of the Act. It reads as under : --

    "(8) No appeal or second appeal shall lie against an order for the recovery of possession of any residential building or scheduled building made by the Controller in accordance with the procedure specified in this section:

    Provided that the High Court may, for the purpose of satisfying itself that an order made by the Controller under this section is according to law, call for the records of the case and pass such order in respect thereto as it thinks fit."

    Section 18-B further provides that 'Section 18-A or any rule made for the purpose thereof shall have effect notwithstanding anything inconsistent therewith contained elsewhere in this Act or in any other law for the time being in force.'

    8. Keeping in view the said provisions of Sub-section (8) of Section 18-A, I am of the considered view that from the evidence on record, it could not be successfully argued that the conclusion arrived at by that Rent Controller that the premises in dispute are residential building, is without any evidence or is wrong or illegal to the extent that it requires interference in revisional jurisdiction. Even if two views are possible, it does not entitle this Court to interfere in the said finding. According to the learned counsel for the petitioners, the premises were let out for business purpose. There are rolling shutters in front of the shop and no regular kitchen, bath room and latrine etc. have been provided therein. All the receipts up to July, 1985 are issued describing the property as a shop and even the tenants got licences under the Shops and Commercial Establishment Act, for doing trade business in the demised premises and thus, taking into consideration the entire facts and circumstances of the case, the demised premises could not be held to be the residential premises.

    9. On the other hand, it has been brought on record that the names of the tenants are entered in the voters list on the address of the demised premises. The tenants have riot led any positive evidence that they are residing anywhere else. Mere statements that they are residing in a particular Mohalla was hot sufficient to locate their residence as such. Kehar Singh tenant even applied for the ration card at the address of the demised premises, The landlord duly made provisions for bath room, kitchen and latrine in the demised premises and according to the evidence led by the landlord, the tenants were residing in the rear portion whereas in the front portion, they were doing their business. Since the premises were being used for both purposes i.e. business as well as residence the building will fall within the definition of residential building as defined in Section 2(g) of the Act which provides 'residential building' means any building which is not a non-residential building. 'Non-residential building' means a building which is solely used for the purpose of business or trade. Since from the evidence, it has been concluded by_ the Rent Controller that the premises is not being used solely for business or trade, the same will fall within the definition of residential building. As observed earlier, from the evidence on record it could not be said that the said finding of the Rent Controller is without any evidence or the view taken by the Rent. Controller was not possible on the evidence produced by the parties. In these circumstances the demised premises are held to be 'residential building' as defined under the Act and therefore, the landlord was entitled to seek ejectment of his tenants therefrom.

    10. As regards the question as to whether the landlord is entitled to seek ejectment of the tenants of he could only eject one of the tenants which he may like to choose the second proviso to Section 13-A reads as under.

    Provided further that nothing in this section shall be so construed as conferring a right on any person to recover possession of more than one residential or scheduled building inclusive of any part or parts thereof if it is let out in part or parts
    .

    Even if it be assumed for the sake of argument, that the whole building was let out in different parts to the different tenants, even then according to the said proviso, the, landlord could not recover possession of more than one residential building inclusive of any part or parts thereof if it is let out in part or parts. That being so, the landlord could only claim ejectment of one of the tenants from one part of the building and not all the tenants from all parts, of the building. For ejecting the other tenants he will have to seek his remedy under Section 13 of the Act, in accordance with law. Since Section 13-A, is a special remedy to recover immediate possession of residential building given to certain persons who are specified landlords, it is to be construed strictly, Even under Section 13-A it has been provided that specified landlord has a right to recover immediate possession of such residential building or scheduled building or any part or parts of such building, f it is let out in part or parts. The second proviso reproduced above makes it further clear that the landlord is not entitled to recover possession of more than one residential building inclusive of any part or parts thereof if it is let out in part or parts.

    11. Faced with this situation, the learned counsel for the landlord respondent submitted that in that situation he will like to seek ejectment of his tenant Ram Niwas who has filed Civil Revision No. 2389 of 1988, since he is putting in one corner of the entire building as shown in the plan Exhibit AW5/B.

    In these circumstances, the said revision petition filed by Ram Niwas i.e. C.R. No. 2389 of 1988 fails and is dismissed with no order as to costs whereas the other three revision petitions are allowed with no order as to costs. However, Ram Niwas tenant is allowed two months time to vacate the premises provided all the arrears of rent, if any, are I deposited by him along with advance rent of two months with the Rent Controller within a fortnight, with a further undertaking in writing that after the expiry of the said period vacant possession will be handed over to the landlord.

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    Comments

    Sohan Lal v. Col. Prem Singh Grewal And Another
    (Feb 28, 1989)