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Smart Summary

Factual and Procedural Background

The present summary concerns Civil Revision Nos. 1905 and 1906 of 1996 arising from proceedings before a Rent Controller under the East Punjab Urban Rent Restriction Act ("the Act"). The landlord (petitioner-respondent) filed an ejectment petition under Section 13-A of the Act seeking possession of premises comprising basement, ground floor and first floor of House No. 1926, Sector 34-D, Chandigarh. The premises had been demised by a lease dated 22.9.1983 to the respondent-petitioners, who earlier ran a branch there and later shifted the branch but allegedly did not vacate the premises.

The landlord asserted that he was a "specified landlord" under Clause (hh) of Section 2 of the Act. The landlord was a public servant, a member of the Punjab Superior Judicial Service, due to retire on 31.5.1996 and was posted at Bhatinda at the time. A portion (second floor: two rooms and a store) was in possession of the landlord's son. The landlord stated he lacked sufficient accommodation and wished to occupy the demised premises after retirement.

The respondent-tenants filed an application for leave to defend the ejectment petition, denying the landlord's claimed need and alleging the landlord had sufficient accommodation. They also pointed to related proceedings: a civil suit by the landlord for injunction (with an Order 39 application refused by the trial court) and proceedings under the Public Premises (Unauthorised Occupants) Act, 1973, in which the building had been resumed by the Estate Officer and an appeal by the tenants to the Chief Administrator (with a stay granted on 20.9.1994) was pending.

The Rent Controller, by orders dated 17.4.1996, refused leave to defend on the ground that the petitioner-landlord was a specified landlord and that there were no triable issues; the same day the ejectment petition was allowed and an ejectment order issued directing possession to be handed over within one month. Aggrieved, the tenants filed Civil Revision Nos. 1905 and 1906 of 1996 before this Court.

Legal Issues Presented

  1. Whether leave to defend an ejectment petition must be granted if the tenant disputes the landlord's claimed bona fide personal requirement (need) for the accommodation.
  2. Whether the Rent Controller may inquire into the sufficiency of accommodation already in the landlord's possession (versus the narrower question of suitability).
  3. Whether the procedural provisions of the Civil Procedure Code (for example, verification of affidavits under Order 19 Rule 3) strictly apply to rent proceedings before the Rent Controller, who is a "persona designata" under the Act.
  4. Whether the certificate produced by the landlord (certifying his status/retirement) was sufficient evidence to treat the landlord as a "specified landlord," particularly when the landlord is a member of the Punjab Superior Judicial Service appointed and removable by the State Government.

Arguments of the Parties

Respondent-Tenants' Arguments

  • Leave to defend ought to have been granted because the tenants specifically disputed the landlord's alleged need and claimed the landlord had sufficient accommodation in occupation.
  • The landlord was misusing the process of law by filing a civil suit and was estopped from proceeding with the rent application.
  • The building had been resumed under the Public Premises (Unauthorised Occupants) Act, 1973, and an appeal with a stay was pending before the Chief Administrator.
  • Reliance on precedent (listed in the opinion) supporting the proposition that where a tenant disputes bona fide personal requirement, leave should be granted and the Rent Controller must inquire into the need.

Petitioner-Landlord's Arguments

  • Preliminary objection: the affidavit filed by the tenants in support of their petition for leave to defend was not in accordance with Order 19 Rule 3 of the Civil Procedure Code and not in compliance with High Court Rules and Orders (Vol. IV, Ch. 12-B, Para 9), and thus should be rejected.
  • Substantive argument: the sufficiency of accommodation with the landlord cannot be challenged by the tenant and the Rent Controller cannot enquire into or decide the question of sufficiency; only "suitability" may be examined.
  • Relied on authorities to support the view that the Rent Controller should not entertain challenges to sufficiency of accommodation already in the landlord's possession.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
K.G.P. Pillai v. Subhash Chander Pathania Support for the proposition that where a tenant disputes landlord's need, leave to defend should be granted. Cited by tenants' counsel; the Court treated it among authorities showing leave ought to be granted when bona fide need is disputed.
C.D. Korpal (C.D. Karpal) v. Captain A.K. Madan Authorities holding that leave must be granted where eviction is sought on ground of bona fide personal requirement and that ground is disputed by the tenant. Counted among Apex Court authorities supporting grant of leave when tenant disputes need; Court relied on these authorities in concluding leave should have been granted.
Smt. Jamna Devi v. Kude Ram As above: leave required when landlord's bona fide need is disputed. Relied on as supporting precedent; Court referenced it in reaching the conclusion to grant leave to the tenants.
Precision Steel & Engineering Works v. Prem Deva Niranjan Deva Tayal As above: leave should be granted when bona fide personal requirement is disputed. Included among the Apex Court and other authorities that persuade the Court to grant leave to the tenants.
Om Parkash Saluja v. Sarswati Devi Similar principle: tenant dispute of landlord's need requires enquiry and possibly grant of leave. Relied on by tenants' counsel and treated by the Court as supporting grant of leave when need is disputed.
Sobh Raj v. Din Dayala Held that if the tenant pleads the same previous litigation and disputes the landlord's need, leave should be granted. The Court observed this authority supported the proposition that leave ought to be granted where the tenant disputes the need; used in reasoning to allow revision.
Mohinder Singh v. Gurnam Singh If landlord's need is disputed by tenant, the Rent Controller must enquire into whether the existing accommodation is sufficient. Cited by tenants' counsel; the Court relied on this authority (a Single Bench precedent) to support grant of leave where need was disputed.
Tek Chand of Village Unchagaon v. Balbir Singh Authority relied upon to challenge the validity/format of affidavits (Order 19 Rule 3 CPC compliance). Relied on by landlord's counsel for preliminary objection about affidavit formalities; the Court held the objection not sustainable for reasons stated in the opinion.
Sunder Industries v. General Engineering Works, New Delhi Also relied on concerning affidavit formalities under CPC/Rules. Relied on by landlord's counsel; Court nonetheless rejected the preliminary objection that affidavit non-compliance should bar consideration of tenants' petition for leave.
A.K.K. Nambiar v. Union of India It was held that if an affidavit is not properly verified it cannot be admitted in evidence. Cited by landlord's counsel; Court accepted the general rule but explained that an affidavit filed in support of a petition for leave to defend is not intended to be evidence and thus the preliminary objection was not sustainable.
Ram Krishan Chhokar v. Sh. Jagmohan Singh Authority relied on to contend that provisions of CPC do not apply to rent petitions and Rent Controller may regulate its own procedure. Relied on by tenants' counsel; the Court agreed that CPC provisions are not strictly applicable to rent petitions and the Rent Controller is a persona designata competent to regulate procedure.
Prof. Bhupinder Singh v. Sohinder Singh Same proposition as Ram Krishan Chhokar: CPC not strictly applicable to rent tribunal proceedings. Relied upon by tenants' counsel; the Court treated this as supporting the proposition that the Rent Controller need not be bound by CPC procedural strictures.
B.D. Thapar v. Pal Singh Held in circumstances where tenant's allegations as to landlord's accommodation were vague, leave to contest may be declined; addressed scope of enquiry on sufficiency. The Court found the facts distinguishable from the present case since specific details were given by tenants here; therefore the authority did not require refusal of leave.
Bava Parkash Mahendru v. Darshan Lal Addressed the Rent Controller's approach to "suitability" versus "sufficiency" of accommodation when landlord resides outside the local area. The Court noted this authority was distinguishable on facts and that an earlier finding of the Rent Controller in that case was set aside as misconceived.
Savitri Devi Dutta v. Smt. Shakuntla Khullar (and related fact pattern) Held that sufficiency of accommodation and lack of bona fide need are not necessarily sufficient to decline relief to landlord. The Court observed this authority but concluded the present facts warranted granting leave where the tenant specifically disputed the need.
Sunil Kumar v. Sh. S.S. Sharma A Single Bench holding that Rent Controller cannot go into question of sufficiency/insufficiency of accommodation. The Court treated this authority as distinguishable and, when viewed with other precedents, supported the conclusion that in circumstances where need is disputed leave should be granted and enquiry held.
Subedar Tara Singh v. Smt. Bachan Kaur Held that where a landlord produces a certificate of retirement, but fails to prove competence of the signatory issuing the certificate, the landlord should not be considered a specified landlord. The Court applied this principle to hold that the certificate produced by the landlord (from the Registrar, Punjab & Haryana High Court) did not prove that a competent authority had the power to retire the landlord who was a member of the Punjab Superior Judicial Service.

Court's Reasoning and Analysis

The Court addressed the case in two strands: (A) the correctness of the refusal of leave to defend and the consequent ejectment order (Civil Revision No. 1905) and (B) the sufficiency of the evidence to treat the landlord as a "specified landlord" (Civil Revision No. 1906).

On the preliminary objection regarding affidavit compliance with Order 19 Rule 3 CPC and High Court Rules, the Court analysed the procedural status of rent proceedings. It accepted that although A.K.K. Nambiar establishes that improperly verified affidavits cannot be admitted in evidence, an affidavit filed in support of an application for leave to defend is not intended to be treated as evidence. Further, the Court held that the Civil Procedure Code is not strictly applicable to rent petitions because the Rent Controller is a persona designata under the Act and may regulate its own procedure. Consequently, the preliminary objection to the form of the tenants' affidavit was held to be not sustainable.

On the substantive question of leave to defend, the Court reviewed the authorities cited by both sides. The Court distinguished decisions relied upon by the landlord where allegations before the Rent Controller were vague or where the facts differed (for example, B.D. Thapar and Bava Parkash Mahendru). The Court noted authorities from the Apex Court and this High Court establishing the rule that leave must be granted when eviction is sought on the ground of bona fide personal requirement and that ground is disputed by the tenant (examples: C.D. Korpal/C.D. Karpal, Smt. Jamna Devi, Precision Steel, Om Parkash Saluja).

The Court found the tenants had specifically disputed the landlord's need and that the landlord was already in occupation of a part of the same building while seeking additional accommodation in that building. On this factual matrix, and having regard to the body of authorities requiring enquiry where need is disputed (including Mohinder Singh and Pillai decisions), the Court concluded that leave to defend ought to have been granted. Accordingly, the impugned order refusing leave and ejecting the tenants was set aside and the matter remanded for enquiry.

Separately, the Court examined the evidence relied upon to treat the landlord as a "specified landlord." The landlord had produced an original certificate issued by the Registrar, Punjab & Haryana High Court, certifying the landlord's post and date of retirement, but no evidence was adduced to prove the Registrar's competence to retire the landlord. The Court relied on Subedar Tara Singh to emphasize that where the landlord fails to prove that the officer who signed the certificate was competent to remove/retire him from service, the landlord should not be treated as a specified landlord. Here the landlord was a member of the Punjab Superior Judicial Service appointed by the State Government, and only the State Government was competent to remove/retire him. Therefore, the certificate was not relevant proof that he was a specified landlord. The Rent Controller's reliance on that certificate was held to be an error of law and fact.

Holding and Implications

Core Ruling: Both Civil Revisions No. 1905 and No. 1906 of 1996 are allowed and the impugned orders of the Rent Controller dated 17.4.1996 are set aside.

Implications and immediate consequences:

  • In Civil Revision No. 1905 the Court granted leave to the tenants to defend the ejectment petition and remanded the case to the Rent Controller to decide the petition in accordance with law (i.e., to enquire into the dispute about the landlord's need and related factual matters).
  • In Civil Revision No. 1906 the Court held that the certificate produced by the landlord did not adequately prove that he was a specified landlord (because the competence of the issuing authority to retire him was not established). The ejectment order based on that certificate was set aside and the Rent Controller was directed to decide the petition in accordance with law.
  • No broader novel precedent was declared by this order; the Court applied and reconciled existing authorities to the facts and remitted the matters for fresh consideration consistent with established principles.

Disposition recorded in the opinion: Petition(s) allowed; matters remanded to the Rent Controller for decision in accordance with law.

    The Punjab & Sind Bank And Others v. Kashmir Singh Bhullar .

    Dr. Sarojeni Seksena, J.:— By this order Civil Revision Nos. 1905 and 1906 of 1996 are being decided.

    2. Facts of the case are that the landlord-petitioner-respondent filed ejectment petition under Section 13-A of the East Punjab Urban Rent Restriction Act, 199 (in short the ‘Act’) for respondent-petitioners' ejectment from the demised premises comprising basement, ground floor and first floor of House No. 1926, Sector 34-D, Chandigarh alleging that he is a specified landlord under Clause (hh) of Section 2 of the Act. The premises was demised to the respondent-petitioners under lease deed dated 22.9.1983 wherein respondent No. 1 through respondents 2 and 3 has been earlier running its branch and now has shifted the said branch to another premises in Sector 34, Chandigarh but has not vacated the premises. Petitioner-respondent is a public servant being a Member of the Punjab Superior Judicial Service and is going to retire on 31.5.1996 The second floor of the demised house comprising of only two rooms and a store is in possession of the petitioner's son who is a practising lawyer and is living therein with his wife and daughter. The applicant-respondent-landlord is not in possession of sufficient accommodation and wants to settle at Chandigarh after his retirement and needs the demised premises for his own use and occupation. At present, he is posted at Bhatinda as Presiding Officer, Labour Court at Bhatinda.

    3. Notice of the petition was given to the respondent-petitioners, who filed the petition to grant leave to defend the petition on various grounds. It was alleged that sufficient accommodation is available with the landlord, who is not a specified landlord. It was also averred that the applicant-respondent-landlord has also filed the civil suit for permanent injunction restraining the respondent-petitioners from running a branch of the bank and misusing the premises in dispute, that is, for using the same for the purpose other than the residential. Application under Order 39 Rules 1 and 2, Civil Procedure Code was also filed in the civil suit which was declined by the trial Court. The said civil suit is also pending in the Court of the Rent Controller. The civil suit is fixed for evidence. The applicant-respondent-landlord is misusing the process of law having filed the civil suit. He is estopped from filing this rent application.

    4. In Civil Revision No. 1905, it is also averred that with a view to harass the respondent-petitioners, the landlord got the building resumed from the Estate Officer, Union Territory, Chandigarh under the Public Premises (Unauthorised Occupants) Act, 1973. Respondent-petitioners have filed appeal before the Chief Administrator Chandigarh Administration, which is pending wherein the stay has been granted in their favour on 20.9.1994

    5. By the impugned order passed on 17.4.1996 leave to defend was declined on the ground that the petitioner-landlord is a specified landlord. His only two rooms on the second floor are in possession of petitioner's son. Considering the status of the petitioner-landlord and his family, the accommodation with him is not suitable for his and his family members residence. The Rent Controller observed that there are no triable issues and there is no merit in the application for leave to defend. Hence, the petition was declined.

    6. On that very day, the ejectment petition was allowed vide the impugned order dated 17.4.1996 holding that the petitioner-landlord is a specified landlord. Under Section 13-A of the Act, leave to defend has been refused to the respondent-tenants and thus, the Rent Controller is bound to pass an order of ejectment. Accordingly, petition was allowed, ejectment order was passed and respondent-tenants were directed to hand over the possession of the demised premises within one month from the date of the order. Aggrieved against the order Civil Revision No. 1906 of 1996 is filed.

    7. Respondent-petitioners' learned counsel relying on K.G.P Pillai v. Subhash Chander Pathania,1 C.D Korpal v. Captain A.K Madan,2 Smt. Jamna Devi v. Kude Ram,3 Precision Steel & Engineering Works v. Prem Deva Niranjan Deva Tayal,4 Om Parkash Saluja v. Sarswati Devi,5 and Sobh Raj v. Din Dayala,6 contended that as the respondent-tenants have denied the alleged need of the landlord on the ground that he is having sufficient accommodation in his occupation in the demised building for his residence, leave ought to have been granted to them. He also relied on Mohinder Singh v. Gurnam Singh,7 on the ground that if such need is disputed by the tenant, the Rent Controller must enquire into it.

    8. Petitioner-respondent-landlord's learned counsel raised a preliminary objection that the respondent-tenants filed affidavit in support of their petition to grant leave to defend, but the affidavit is not in accordance with the provisions of Order 19 Rule 3, Civil Procedure Code as well as the High Court Rules and Orders, Vol. IV, Chapter 12-B Para 9. To substantiate his contention, he has relied on Tek Chand of Village Unchagaon v. Balbir Singh,8 Sunder Industries v. General Engineering Works, New Delhi,9 and A.K.K Nambiar v. Union of India,10.

    9. Respondent-petitioner-tenants' learned counsel relying on Ram Krishan Chhokar v. Sh. Jagmohan Singh,11 and Prof. Bhupinder Singh v. Sohinder Singh,12 contended that the provisions of Civil Procedure Code are not applicable in rent petitions. The Rent Controller is a persona designeta under the Act, who acts as a quasi-judicial tribunal to decide the matters covered by the Act and thus has not the trappings of a Civil Court. The Tribunal is well within its rights to regulate its own procedure.

    10. So far as the preliminary objection is concerned, it has no relevance. Firstly because the provisions of Civil Procedure Code are not strictly applicable in rent petitions. It is not a Civil Court, it is a Tribunal, which is competent to decide its own procedure. Secondly, as is held in A.K.K Nambiar's case (supra), if affidavit is not properly verified, it cannot be admitted in evidence. When the tenant files, an affidavit in support of his petition seeking leave to defend, that affidavit is not filed with a view that it will be admitted in evidence. Hence, in my considered view, this preliminary objection is not sustainable.

    11. Petitioner-respondent-landlord's learned counsel relying on B.D Thapar v. Pal Singh,13 Bava Parkash Mahendru v. Darshan Lal,14 Savitri Devi Dutta v. Smt. Shakuntla Khullar (Principal) Government College Jatanlti Baily Manoi, District Gurgaon, Haryana,15 and Sunil Kumar v. Sh. S.S Sharma,16 valiantly argued that the sufficiency of accommodation with the landlord cannot be challenged by the tenant and cannot be enquired into and decided by the Rent Controller. The only point of suitability can be enquired into and decided by the Rent Controller.

    12. The authorities cited by the petitioner-respondent-landlord's learned counsel are distinguishable on facts. In B.D Thapa's case (supra), the tenant alleged that the landlord has got sufficient accommodation but details were not given. Allegations were vague and on that count, leave to contest the ejectment application was declined, which is not the case here. In Bava Parkash Mahendru's case (supra), the Rent Controller held that “suitability of the landlord can only be inferred or adjudged in case the landlord is residing outside the local area and intends shifting therefrom and not in a case where he is already occupying a part of the same building.” This finding of the Rent Controller was set aside on the ground that it is misconceived.

    13. In Savitri Devi Dutta's case (supra) it is held that “sufficiency of accommodation already in possession of the landlord and lack of bonafide need are not sufficient grounds to decline the relief to the landlord.” In Sunil Kumar's case (supra), a Single Bench of this High Court has held that the Rent Controller cannot go into the question of sufficiency or insufficiency of accommodation with the landlord. But in Sobh Raj's case (supra), it is held that if the tenant was pleading about the same previous litigation and was disputing the need of the landlord, leave should have been granted to him.

    14. While dealing with the provisions of Sections 25B(40), 14(1) Proviso (e) of Delhi Rent Control Act, 1958 the Apex Court has held that “leave has to be granted when eviction is sought on the ground of bonafide personal requirement and that ground is disputed by the tenant.” It has been so held by the Lordships of Apex Court in C.D Karpal's case, Smt. Jamna Devi's case, Precision Steel's case and Om Parkash Saluja's case (supra).

    15. In Mohinder's case (supra), a Single Bench of this High Court has held that if the specified landlord is seeking additional accommodation being already in possession of four rooms and a kitchen, leave to defend should be given to the tenant because the Rent Controller is required to examine whether the existing accommodation was enough or hot. In Pillai's case (supra) a Division Bench of this High Court has held that if the landlord is in possession of the entire ground floor and he seeks eviction of the tenant from one room in Barsati, it would be a case of seeking additional accommodation and hence, this question can be decided only after leave is granted to the tenant to contest the ejectment application.

    16. Considering all the above authorities, in my considered view in this case the tenants should have been granted leave to defend their case as the tenants were disputing the alleged requirement of the landlord. Admittedly, the landlord is in occupation of a portion of the demised building and he is seeking possession of additional accommodation in the same building.

    17. Hence, Civil Revision No. 1905 of 1996 is hereby allowed, impugned order is set aside, leave is granted to the tenants to defend the ejectment petition and the case is remanded to the Rent Controller for deciding the petition in accordance with law.

    18. So far as another revision is concerned, petitioner respondent-landlord's learned counsel admitted that in the ejectment petition, no evidence was adduced by the landlord. He filed the original certificate issued by the Registrar, Punjab and Haryana High Court, Chandigarh, wherein he has certified that Shri K.S Bhullar, member of the Punjab Superior Judicial Services presently posted as Presiding Officer, Labour Court, Bhatinda is due to retire from service on 31.5.1996, but no evidence was adduced to prove this certificate. There was no evidence on record to prove that the Registrar is competent to retire the petitioner-respondent landlord. The petitioner-landlord is a member of the Punjab Civil Service (Judicial). He is appointed by the State Government. Only the State Government is competent to remove him from service. Therefore, the aforementioned certificate should not have been relied on by the Rent Controller to hold that the petitioner-respondent-landlord is a specified landlord. In Subedar Tara Singh v. Smt. Bachan Kaur,17 a Single Bench of this High Court has held that the landlord should produce copy of the certificate of retirement from service, but if he fails to prove that the officer who signed the certificate was competent to remove him from service, the landlord should not be considered as specified landlord.

    19. In this case as the petitioner-respondent-landlord is a member of the Punjab Superior Judicial Service, he is appointed by the State Government and lastly the State Government is competent to retire him from service. Hence, the certificate relied on by the petitioner-respondent-landlord was not relevant to prove this fact that he is a specified landlord. The Rent Controller has fallen into that error and passed ejectment order in hot haste without applying her judicial mind.

    20. Consequently, the revision No. 1906 of 1996 is also allowed, impugned ejectment order is set aside and the Rent Controller is hereby directed to decide the petition in accordance with law.

    R.M.S
    Petition allowed.

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    Comments

    The Punjab & Sind Bank And Others v. Kashmir Singh Bhullar .
    (May 20, 1996)