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Smart Summary

Factual and Procedural Background

The revision petition was filed by Dr. J.S. Sodhi and others (the petitioners) challenging an eviction order passed by the Rent Controller, Chandigarh dated 25-5-1996 and affirmed by the Appellate Authority, Chandigarh dated 4-5-1999. The respondent is the landlord; petitioner No. 1 was the tenant of the ground floor of S.C.O. No. 809, Sector 22A, Chandigarh, which was let for use as a clinic (an X-ray clinic run by a radiologist).

The landlord filed a petition for eviction on multiple grounds; only one ground succeeded below and on appeal — that the tenant had carried out material additions and alterations by raising permanent structures (notably a permanent room/dark room and a reconstructed bathroom at the back, installation of heavy machinery with permanent foundations, and construction of permanent cabins/partitions) which allegedly materially impaired the value and utility of the premises, giving rise to eviction under Sub‑section (2)(iii) to Section 13 of the East Punjab Urban Rent Restriction Act, 1949 (as applicable to Chandigarh).

The Rent Controller found that material additions and alterations had been made and decided the issue in favour of the landlord. The Appellate Authority affirmed that permanent masonry walls had been raised in the back portion (concluding material impairment) and affirmed the eviction. The present revision challenging those findings was therefore filed.

Legal Issues Presented

  1. Whether the additions and alterations alleged (construction of a dark room and bathroom, installation of heavy machines with foundations, and erection of permanent cabins/partitions) materially impaired the value and utility of the tenanted premises within the meaning of Sub‑section (2)(iii) to Section 13 of the East Punjab Urban Rent Restriction Act, 1949.
  2. Whether the brick masonry wall in the dark room was a permanent structure (i.e., erected with foundations) such that it would amount to a material alteration impairing the premises' value and utility.
  3. Whether implied consent or landlord acquiescence (given long use and a landlord's letter consenting to electricity supply) affected the landlord's right to claim eviction on the ground of material impairment.

Arguments of the Parties

Petitioners' (Tenant's) Arguments

  • The tenancy was entered into for running an X-ray clinic (rent agreement providing for "General Trade" and the definition of General Trade under Rule 9 includes medical professionals), and petitioner No. 1 is a radiologist; therefore, the presence of a dark room and installation of necessary machinery were integral and necessary to the permitted use.
  • The constructions complained of (cabins/partitions and the dark room) were temporary in nature and necessary for the smooth running of the clinic and had not materially impaired the value or utility of the property.
  • Electricity connection (60 kW) was provided with the landlord's written consent (Exhibit R‑6), supporting the contention that the premises were let for the clinic use and suggesting landlord's awareness or acquiescence.

Respondent's (Landlord's) Arguments

  • The tenant made material additions and alterations by raising permanent brick masonry walls in the back portion for a dark room and toilet, reconstructed a bathroom at his own level, installed heavy machines on permanent foundations damaging the flooring, and constructed permanent cabins/partitions and false ceilings — acts that materially impaired the value and utility of the premises.
  • The respondent produced an expert report (Exhibit P‑32) asserting (i) permanent brick masonry walls were raised in the back portion contrary to the sanctioned plan, (ii) heavy machines like CT scan and X-ray were installed by constructing permanent foundations damaging flooring, (iii) semi‑permanent partitions/wooden cabins and false ceiling were built, and (iv) front portion was damaged by fitting air‑conditioning equipment contrary to building bye‑laws — concluding material impairment of value and utility.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
L.D. Khanna v. J.K. Puri (1985) 1 Ren CR 512 It is for the landlord to prove when additions and alterations were made and that such additions materially affected the value and utility of the property. Cited to support the proposition that the landlord bears the burden of proof on material alterations and their effect on value/utility.
Kewal Chand Jain v. Jiwan Kumar Kaushal (1989) 2 Ren CR 215 Construction of a wall by a tenant may not necessarily amount to materially impairing the value and utility; depends on appraisal of facts. Used as an authority where a constructed wall was held not to materially affect the property's value and utility, supporting the tenant's position that not all walls/alterations are material.
Bhupinder Singh v. J.L. Kapoor (1992) 1 Rev LR 104 (Division Bench) Material impairment must be judged reasonably — lessee cannot change structure fundamentally; alterations should be judged as a reasonable man in prevailing circumstances would. Quoted to explain the standard: assessment by a reasonable‑person test in facts and circumstances rather than a detached judicial view; court relied on this standard in analysis.
Samitri Devi v. Karam Singh (1996) 2 Rent LR 677 Structures like pillars and a pardi wall with rafters/purlins may not be regarded as materially impairing the value or utility of premises. Used to demonstrate that certain structural additions (pillars, pardi wall, roof of rafters/purlins) have been found not to constitute material impairment; supports tenant's contention that not all additions are material.
Om Parkash v. Amar Singh, AIR 1987 SC 617 Definition/meaning: "materially altered" denotes substantial change in character, form or structure without destroying identity; partition walls made without foundation and not touching ceiling may be temporary and not material alterations. Relied upon centrally: where a partition wall was erected without foundation and not touching the ceiling it was held temporary and not a material alteration; the court applied this principle to reject the presumption that the dark room wall was permanent without proof of foundation.
Gurbachan Singh v. Shivalak Rubber Industries (1996) 2 JT (SC) 615 : AIR 1996 SC 3057 "Impair materially" means to diminish substantially in quality, strength or value; the term is relative and value is to be seen from the landlord's point of view. Cited to emphasize that material impairment is relative, measured substantially and from the landlord's perspective; the court took this into account when assessing alleged impairment and landlord's acquiescence.

Court's Reasoning and Analysis

The court proceeded through the following analytical steps, relying only on the evidence and authorities cited in the opinion:

  1. Characterisation of permitted use: The rent agreement's Clause 5 (premises let for "General Trade") together with Rule 9 of the Capital of Punjab (Development and Regulation) Act, 1952 (which includes doctors in "General Trade") and the landlord's letter (Exhibit R‑6 consenting to electricity supply) established that the premises were let for an X‑ray clinic. Therefore, the setting up of a dark room and installation of related machinery was prima facie within the scope of permitted use.
  2. Framing the legal question: The court identified the immediate legal question as what would constitute "materially impairing the value and utility of the premises" under Sub‑section (2)(iii) to Section 13 of the East Punjab Urban Rent Restriction Act, 1949.
  3. Principles from precedents: The court surveyed authorities (L.D. Khanna; Kewal Chand Jain; Bhupinder Singh; Samitri Devi; Om Parkash; Gurbachan Singh) to extract legal principles: (a) burden lies on landlord to prove additions and material impairment; (b) not every alteration is material; (c) material impairment requires substantial change assessed by a reasonable‑person standard; (d) partition walls without foundations and not touching ceilings are temporary and not material; and (e) "impair materially" is relative and to be judged from the landlord's perspective.
  4. Evaluation of expert evidence: The landlord's architect/expert report (Exhibit P‑32) alleged permanent brick masonry walls in the back portion, permanent foundations for heavy machines, semi‑permanent partitions, and other damage. However, the expert expressly did not assert that foundations had been laid for the dark room wall — he mentioned foundations for machines but was silent regarding a foundation for the brick wall. The court emphasized that if foundations existed for the dark room wall, the expert would have said so; that omission was significant.
  5. Rejection of presumption used below: The Appellate Authority had taken a presumptive view that "permanent brick masonry walls" must have foundations and therefore were permanent structures. The court found this presumption impermissible in the absence of substantive evidence of foundations and noted that presumption cannot substitute for proof.
  6. Application of Om Parkash: Applying the Supreme Court's observation in Om Parkash that a partition wall made without digging foundation and not touching the ceiling is temporary and does not materially alter the accommodation, the court concluded there was inadequate material to find that the dark room wall had foundations or otherwise converted the structure into a permanent alteration materially impairing the premises.
  7. Consideration of landlord's conduct: The tenant had used the premises for a long period and the landlord had not earlier sought eviction. The court considered this delay and the landlord's earlier conduct (including Exhibit R‑6) as supporting an inference of implied consent/acquiescence to the clinic's necessary arrangements (such as a dark room).
  8. Conclusion on interference: Although there were concurrent findings of fact below, the court found an illegality in the Appellate Authority's order because it proceeded from an unwarranted presumption. The court held that Sub‑section (5) of Section 15 of the Act permitted interference with the concurrent findings on this illegality.

Holding and Implications

Holding: The revision petition was allowed. The impugned order of eviction was set aside and the landlord's application for eviction was dismissed.

Implications:

  • Direct effect: The eviction order against the tenants is vacated and the eviction petition is dismissed, allowing the tenant to remain in possession as a matter of the court's ruling.
  • On legal principles: The court applied existing authorities to hold that the mere presence of a wall in the dark room, without evidence of foundations or other indicators of permanence, is insufficient to establish a material impairment of value and utility. The court rejected a presumption that brick masonry walls necessarily have foundations in the absence of proof.
  • Broader implications: The opinion focuses on the facts before the court and applies prior authorities; it does not purport to lay down any new, broader legal doctrine beyond applying the precedents summarized in the analysis. (The direct consequence is the dismissal of the eviction application in this matter.)

    Dr. J.S Sodhi And Others v. Mela Ram .

    1. The present revision petition has been filed by Dr. J.S. Sodhi, and others (hereinafter described as "the petitioners") directed against the order of eviction passed by the learned Rent Controller, Chandigarh, dated 25-5-1996 and of the learned Appellate Authority, Chandigarh, dated 4-5-1999. The learned Appellate Authority dismissed the appeal of the petitioners.

    2. The respondent is the landlord and, admittedly, petitioner No. 1 is the tenant in the suit premises. Petitioner No. 1 had taken the suit property i.e. ground floor of S.C.O. No. 809, Sector 22A, Chandigarh on rent. The respondent filed a petition for eviction against the petitioners on a large number of grounds. The other grounds of eviction did not find favour with the learned Rent Controller and the learned Appellate Authority. The present controversy relates to the ground of eviction taken by the respondent that the tenant petitioner has made material additions and alteration by raising permanent structures. A permanent room was stated to have been constructed towards the backside of the tenanted premises and it was being used as a dark room from X-ray films. Even a bath room provided to Dr. Sodhi towards the backside had been damaged and the same had been reconstructed by him at his own level for his own facility. It was further asserted that the machinery had been installed on the floor of the demised premises by constructing pucca foundation and in this process the main portion of the tenanted building had been damaged. A number of permanent cabins on the floor of the demised premises have been made without the prior permission of the landlord.

    3. The petition in this regard was contested . It was pleaded that through a writing Mela Ram and is brother Jai Chand leased out the property to petitioner No. 1. Petitioner No. 1 was to run X-ray clinic in the suit premises. He is a radiologist. It was denied that the property in question had been taken for any purpose other than running of X-ray clinic. The contention that petitioner No. 1 had materially impaired the value and utility of the suit property was denied. The electricity connection was given in the suit premises with the written consent of the landlord who had addressed a letter to the Sub-Divisional Officer, Electricity Department. The property was stated to be in the same condition in which it was let out. Since it was X-ray clinic, dark room had to be there for X-ray, films and machinery had to be installed. This could not cause any damage to the landlord because the cabins were only temporary structures. The same have been set up for smooth running of the X-ray clinic. It was denied that it has caused damage to the suit property.

    4. The learned Rent Controller scanned through the evidence and held that petitioner No. 1 had made material additions and alterations which had materially impaired the value and utility of the suit premises. This issue was decided in favour of the respondent landlord.

    5. The petitioners preferred an appeal. The learned Appellate Authority concluded that there is no plea taken by the tenant in the written statement that there was a single brick wall in one corner of the room or that on the request of the tenant the landlord had covered it with false ceiling. It was further held that landlord Mela Ram had written a letter to the Electricity Department that he has no objection" regarding 60 KW electric supply being given to Dr. Sodhi. In other words it was concluded that it was let out to petitioner No. 1 for his X-ray clinic. However, the Appellate Authority went on to hold that permanent masonry walls had been raised in back portion of the demised premises. This was stated to be the construction of dark room and bath-room. As regards bath room, the Appellate Authority held that it cannot be said that the same has materially impaired the value and utility of the property in dispute. It was only the dark room that caught the imagination of the learned Appellate Authority and it was held that permanent brick masonry walls mean regular and normal walls with their foundations in the ground and, thus, the same was concluded to have materially impaired the value and utility of the premises. The order of eviction was affirmed.

    6. Aggrieved by the same, present revision petition has been filed.

    7. A rent agreement had been executed between the parties. Clause 5 of the said agreement describes the purpose of letting and it reads as under :--

    "That the tenant shall use the tenanted premises exclusively for General Trade and what all is included in General Trade shall be carried out by the tenant and shall not be used for a purpose other than General Trade."

    8. From the said rent agreement it is clear that though the suit premises was let out for General Trade, Rule 9 of the Capital of Punjab (Development and Regulation) Act, 1952, prescribes that General Trade includes certain professionals and also the profession of a doctor. Petitioner No. 1 is a doctor and in this regard, therefore, there can be little controversy with petitioner No. 1 for running of the clinic. This finding gets due support from the letter of the respondent Mela Ram. Exhibit R-6 which shows that the respondent-landlord had written to the Electricity Department that he has no objection regarding 60 k.w. electric supply being given to petitioner No. 1. Thus, it has rightly been held that the property in question had been let out for being used as X-ray clinic.

    9. On the strength of these facts, on behalf of the petitioners, it was being urged that once the property in question had been let out for being used as X-ray clinic, setting up of dark room is necessary for running of the said clinic. On the contrary, the respondent's contention was that the said dark room with wall which are permanent in nature had materially impaired the value and utility of the premises. Sub-section (2)(iii) to Section 13 of the East Punjab Urban Rent Restriction Act, 1949 (for short "the Act") as applicable to Union Territory of Chandigarh, makes the said ground of eviction available and it reads as under :--

    "(2) A landlord who seeks to evict his tenant shall apply to the Controller for a direction in that behalf. If the Controller, after giving the tenant a reasonable opportunity of showing cause against the applicant, is satisfied :--

    10. The immediate question, therefore, that arises for consideration is as to what would be materially impairing the value and utility of the premises. The Legislature has used the word "materially" which necessarily mean that every damage small or insignificant will not be taken to impair the value and utility of the property. Reference to some of the precedents can well be in the fitness of the things. In case of L.D. Khanna v. J.K. Puri (1985) 1 Ren CR 512, this Court had held that it is for the landlord to prove as to when additions and alterations have been made and further that additions and alterations that have been made materially affected the value and utility of the property.

    11. In the case of Kewal Chand Jain v. Jiwan Kumar Kaushal, (1989) 2 Ren CR 215, the tenant had constructed a wall. The question for consideration was as to whether it would be taken to have materially impaired the value and utility of the property or not. On appraisal of certain facts, this Court thereafter had held that it could not be termed that the value and utility of the property had materially been affected. A Division Bench of this Court in the case of Bhupinder Singh v. J.L. Kapoor, (1992) 1 Rev LR 104, described about what would be materially impairing the value and utility of the property in the following words :--

    ..... The material impairment in the value and utility has to be considered as accepted from time immemorial on the principle which stood the test of time and has been accepted as legal and equitable maxim, that lessee cannot basically change the structure of the demised premises and has to return the premises he had taken on lease, to the landlord at the time of expiry of the tenancy in the same condition in which he took it on lease except the usual wear and tear resulting on account of time factor. The approach for determining whether alterations made have materially impaired the value and utility cannot be whimsical but has to be such as a reasonable man acting in a reasonable way would assume in the facts and circumstances of the case. It has to be judged according to the prevailing situation and not as one is deciding the question in cool and detached atmosphere of the Court, removed from the reality of the situation.

    12. More recently, in the case of Samitri Devi v. Karam Singh (1996) 2 Rent LR 677, where the structure raised by the tenant was in the form of nine pillars and a pardi wall of six feet and four inches height and roof consisting of rafters and purlins, this Court held that it does not affect the value and utility of the building. This Court held as under :--

    In this case, the structure raised by the respondent is only in the form of nine pillars and a pardi wall of six feet height and four inches thickness and roof consisting of rafters and purlins cannot be regarded as having the effect of material impairment in the value of utility of the tenanted premises.

    18. The leading case on the subject is the decision of the Supreme Court in the case of Om Parkash v. Amar Singh, AIR 1987 SC 617. This was a decision under the U.P. Cantonments (Control of Rent and Eviction) Act, 1952. The question for consideration was as to what would be material alterations. The Supreme Court looked at the expression "materially altered" and held as under (para 5) :--

    "The Act does not define either the word "materially" or the word "altered". In the absence of any legislative definition of the aforesaid words it would be useful to refer to the meaning given to these words in dictionaries. Concise Oxford Dictionary defines the word alter as change in character, position "materially" as an adverb means important essentially concerned with matter not with form. In words and Phrases (Permanent Edition) one of the meanings of the word alter is to make change, to modify, to change, change of a thing from the form and set to another. The expression 'alteration" with reference to building means substantial change, varying, change the form or the nature of the building without destroying its identity. The meaning given to these two words show that the expression materially altered means "a substantial change in the character, form and the structure of the building without destroying its identity". It means that the nature and character of change of alteration of the building must be of essential and important nature."

    14. In the cited case, partition wall had been set up without digging any foundation and it was concluded that it does not amount to material alterations of the property. The findings in this regard are as under :--

    In the instant case the disputed constructions which the High Court has found to be material alteration consists of a partition wall of a 6 feet height in a hall converting the same into two rooms and a tin shed marked by letters CDGH on the Eastern side on an open land adjacent to the accommodation. The trial Court held that the partition wall did not change the front structure of the accommodation, it being temporary in nature, did not constitute material alterations in the accommodation. This finding of the trial Court was not challenged by the landlord before the Civil Judge. But the High Court has held that the partition wall constituted material alteration. The findings recorded by the trial Court and the relevant evidence placed before us by the parties clearly show that the partition wall did not actually partition the hall converting the same permanently into two rooms. The partition wall was made without digging any foundation of the floor of the room nor it touched the ceiling instead it was a temporary wall of 6 feet height converting the big hall into two portions for its convenient use, it could be removed at any time without causing any damage to the building. The partition wall did not make any structural change of substantial character either in the form or structure of the accommodation.

    15. Very recently, the Supreme Court in the case of Gurbachan Singh v. Shivalak Rubber Industries, (1996) 2 JT (SC) 615 : (AIR 1996 SC 3057) was concerned with similar situation as in the present case. It was held that the meaning of the expression "to impair materially" in common parlance would mean to diminish in quality, strength or value substantially. The word "impair" cannot be said to have a fixed meaning. It is a relative term affording different meaning in different context and situations. So far as 'Value" is concerned, the Supreme Court has opined that it means intrinsic worth of a thing. It was further held that it has to be seen from the point of view of the landlord.

    16. Having pondered with some of the decisions in this regard, the conclusions are obvious. Every change in the property does not materially impair the value and utility of the premises. The value and utility of the premises has to be seen to be impaired from the point of view of the landlord. If the landlord is a party to any such act, he will not be allowed to raise such a bogey. The expression "materially" itself signifies that it has to be something substantial to give a cause to the landlord to seek eviction.

    17. Exhibit P-32 is the report of the expert produced by the respondent landlord. The relevant portion of the said report read as under :--

    "2. That the permanent brick masonry walls have been raised in the back portion of show room to accommodate one toilet and a dark room for developing X-ray films which is not as per the sanctioned plan.

    3. Heavy machines such as C.T. Scan, X-ray have been installed on the floor of demised premises by constructing permanent foundations and damaging the part of flooring.

    4. Semi-permanent partitions/wooden cabins and false ceiling have been built to divide the total space into different sections.

    5. The front upper portion towards the entry of tenanted premises above the main show window in the place of advertisement panel, the wall has been damaged and air conditioning equipment has been fitted, which has spoiled the overall look of the building and is against the Building Bye Laws.

    By making material alteration have impaired the value and utility of demised premises."

    18. Though the expert produced by the respondent opined that bricks masonry wall had been raised in the dark room but he specifically felt shy of asserting that foundation had been laid for the said wall. It was rightly pointed out that if there were foundations for the heavy machines that were set up, he would have said that X-ray machine had been installed by constructing permanent foundation. This fact is significantly missing with respect to the wall that had been set up. If there was a foundation, the respondent's architect would have made mention of that. Consequently, this Court do not find any reason to appoint a Local Commissioner to find out if there is a foundation or not. There is no other material to conclude that the said wall in the dark room had been built by laying the foundation.

    19. The learned Appellate Authority in this regard observed as under :--

    ".....Therefore, this part of his report and statement must prevail. As every man in the street knows by "the permanent brick masonry walls", we mean the regular and normal walls with their foundations in the grounds. Such walls are a permanent structure ......."

    20. The said observations are presumptive in nature that every permanent brick masonry walls must have foundation. As pointed out above, there is no material to come to such a conclusion. The presumption shall not take place of the substantive evidence. It follows, therefore, that there is little evidence on the record to come to the conclusion that the wall in the dark room had been set up with the foundation.

    21. In Om Parkash's case (AIR 1987 SC 617) (supra) the Supreme Court, as mentioned above, has categorically stated that when there is a partition wall without digging any foundation and it does not touch the ceiling, it must be taken to be a temporary wall which will not substantially change the character of the building. As a necessary corollary, it follows that it does not impair the value and utility of the premises. Thus, the findings to this effect of the learned Appellate Authority cannot be approved.

    22. Coupled with that is another important fact. Petitioner No. 1 is carrying on the said profession in the said premises. He is there for a very long time. The landlord did not deem it appropriate to file eviction petition on the earlier occasion. Dark room would invariably be set up with the profession of a Radiologist. Consequently, there is an implied consent which can be inferred.

    23. It is true that there is, concurrent finding of fact. But, as noticed above, there is an illegality in the order because the order proceeds on a presumption which is not correct in law or on fact. Thus, Sub-section (5) of Section 15 of the Act will permit this Court to interfere.

    24. For these reasons, the revision petition is allowed. The impugned order of eviction is set aside. Instead the application for eviction is dismissed.

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    Comments

    Dr. J.S Sodhi And Others v. Mela Ram .
    (Jan 11, 2000)