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  • Haryana Urban (Control of Rent and Eviction) Act, 1972 (in short the Act)
  • Rent Control Acts entitles
  • Rent Control Acts
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  • Haryana Urban (Control of Rent and Eviction) Act, 1972 (in short the Act)
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Smart Summary

Case Summary: Oral opinion by G.S. Sandhawalia, J.

Factual and Procedural Background

This revision petition challenges concurrent findings recorded under the Haryana Urban (Control of Rent and Eviction) Act, 1972 ("the Act"). A petition under Section 13 of the Act by the respondent-society had been allowed by the Rent Controller, Panchkula on 21.01.2013 on grounds of non-payment of rent and personal necessity; that order was upheld by the Appellate Authority on 23.10.2013. The respondent-society's petition alleged arrears of rent from 01.02.2003 to 30.09.2008 at Rs. 85 per month and claimed personal necessity because the premises (an old dilapidated barrack) were required to construct a stadium/playground for adjoining schools and later for broader educational development (including allegations of setting up a University). The petitioner-tenant disputed the society's ownership and landlordship and contended he had been an occupier for 27 years. The Rent Controller framed issues including entitlement to eviction, maintainability, cause of action, locus standi and relief.

Evidence was led by both sides: the society examined Ram Chander as PW-1; the tenant examined Baljinder Singh (Patwari) as RW-1, Amar Nath (Estate Officer) as RW-2 and himself as RW-3. The Rent Controller found that the society owned 21 acres in the area, recorded resolutions authorizing litigation and delegation of powers, noted prior attempts since 1991 to vacate barrack houses, and recorded non-payment of rent after 19.04.2010. The Rent Controller concluded the society's need was bona fide and allowed the petition. The Appellate Authority affirmed those findings and dismissed the appeal.

Legal Issues Presented

  1. Whether the respondent-society was entitled to eviction of the tenant from the suit property on the grounds alleged (non-payment of rent and personal necessity).
  2. Whether the petition under Section 13 of the Act was maintainable in its present form.
  3. Whether the petitioner had any cause of action to file the present suit (challenge to maintainability by the society).
  4. Whether the petitioner had locus-standi to file the present suit (challenge to party's standing).
  5. Whether the authorization and appearance of the society's representative (PW-1 / agent) was valid for prosecuting the eviction petition.

Arguments of the Parties

Petitioner-Tenant's Arguments

  • The society was not the owner or landlord of the house in question; the tenant had occupied the premises for 27 years and thus disputed the right to recover rent.
  • The society initially claimed need for a stadium/playground but, by amended pleadings, sought to set up a University—there was no resolution on record showing the changed purpose, so bona fide necessity was not proved.
  • There was no proper authorization for the person who appeared and deposed on behalf of the society; specifically, the President and Secretary did not themselves step into the witness box, so the evidence and authorization were said to be deficient.

Respondent-Society's Arguments

  • The society had rightful ownership of the land (21 acres), the land had been released in favour of the society, and resolutions authorized institution of proceedings and delegation of authority to officers/agents (including the Assistant who appeared).
  • Bona fide necessity was established: many tenants (85) had vacated or been ejected; the tenant himself admitted that construction of the stadium had started, supporting the society's stated need.
  • The society, as a juristic person, may act through authorized agents and officers; delegation and prior resolutions sufficed to validate the appearance and evidence of the society's representative.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Joginder Pal v. Naval Kishore Behal, (2002) 5 SCC 397 Authority concerning eviction on grounds of personal necessity and landlord's bona fide requirement. The Rent Controller relied on this authority in concluding that the tenant could not dictate how the landlord requires the premises for bona fide and personal use; it supported allowing eviction for personal necessity.
Kewal Singh v. Smt Lajwanti, (1980) 1 SCC 290 Principle related to eviction and landlord's entitlement in cases of personal necessity. Relied upon by the Rent Controller as supporting the proposition that bona fide personal necessity can justify eviction.
Bega Begum v. Abdul Ahad Khan, (1979) 1 SCC 273 Earlier Supreme Court authority on eviction/personal necessity principles. Used by the Rent Controller alongside other authorities to conclude bona fide necessity and justify eviction.
Hindustan Petroleum Corporation Ltd. v. Dilbahar Singh, 2014 (9) SCALE 657 Clarifies scope of High Court revisional jurisdiction under Rent Control Acts: High Court may not re-appreciate evidence as a first appellate court; interference is limited to errors of law, perversity, or findings based on no evidence. The revisional court applied this principle to limit its review to legality, propriety and jurisdictional errors; concluded the lower authorities acted within jurisdiction and their factual findings were not vitiated by error of law, perversity or lack of evidence.

Court's Reasoning and Analysis

The Court's analysis proceeded in these principal steps, as reflected in the opinion:

  1. Fact assessment: The Court reviewed the factual matrix summarized by the Rent Controller and Appellate Authority — ownership of 21 acres by the society, prior resolutions authorizing litigation and delegation (including Ex. P-2, Ex. P-3, Ex. P-4), prior efforts dating from 1991 to vacate barrack houses, and evidence of non-payment of rent after 19.04.2010.
  2. On the issue of authorization: The Court accepted the legal position that a juristic person must act through agents and officers. It noted that the society had a resolution authorizing the President and Secretary and that the Secretary had further delegated powers to an Assistant (Ramesh Chander), who appeared as PW-1. The Court found no infirmity in an authorized official appearing and deposing on behalf of the society.
  3. Bona fide necessity and change of purpose: The Court explained that over the long period of litigation the society's ancillary and primary uses could evolve — from a stadium/playground ancillary to schools, to a broader educational use such as establishing a University. The Court found such evolution understandable and not inconsistent with bona fide necessity, especially where occupation by tenants hindered utilization, site plan approvals, and demonstration of land availability required for establishing a University.
  4. Reliance on precedent: The Rent Controller had applied Supreme Court authorities (Joginder Pal, Kewal Singh, Bega Begum) to support the principle that tenants cannot dictate how landlords use premises for bona fide personal needs. The revisional court accepted that reliance and application as reasonable on the facts.
  5. Scope of revisional jurisdiction: The Court invoked Hindustan Petroleum v. Dilbahar Singh to explain that its role was limited to testing legality, jurisdictional error, perversity or findings based on no evidence; it must not re-appreciate evidence as an appellate court. Applying that standard, the Court found no jurisdictional error or legal illegality in the lower authorities' findings.
  6. Conclusion of analysis: Given the documented resolutions, delegation, evidence of non-payment, and practical impediments to the society's proposed educational developments, the Court concluded the authorities below had acted within jurisdiction and their factual findings were not perverse or legally defective.

Holding and Implications

REVISION PETITION DISMISSED

Implications:

  • The Court dismissed the revision petition, thereby upholding the Rent Controller's order dated 21.01.2013 and the Appellate Authority's order dated 23.10.2013 which allowed eviction on grounds of non-payment of rent and bona fide personal necessity.
  • The eviction order in favour of the respondent-society stands (i.e., the society's entitlement to recover possession was sustained on the recorded facts).
  • The Court emphasized that it did not find any jurisdictional error, procedural illegality or perversity in the findings below; accordingly, it limited interference under its revisional jurisdiction as guided by Hindustan Petroleum (supra).
  • No new legal precedent was announced by this opinion; the decision directly affirms the lower authorities' application of existing precedent to the facts before them.

    Ram Chander Petitioner(S) v. Shri Jainendra Gurukul (S)

    G.S SANDHAWALIA, J. (Oral)

    The present revision petition has been filed against the concurrent findings recorded by the Authorities under the Haryana Urban (Control of Rent and Eviction) Act, 1972 (in short ‘the Act’) whereby, the petition under Section 13 of the Act has been allowed on the ground of non-payment of rent and personal necessity of the tenanted premises by the Rent Controller, Panchkula on 21.01.2013 The said order has been upheld in appeal on 23.10.2013 by the Appellate Authority.

    A perusal of the paper book would go on to show that the respondent-society filed the petition on the ground of non-payment of arrears of rent from 01.02.2003 to 30.09.2008 @ Rs. 85/- per month and for personal necessity alongwith the fact that the premises have become dilapidated being an old barrack house. The case of the respondent-society was that it wanted to construct a stadium, play ground for the co-curricular activities of the students of two adjacent schools and was in dire need of the land in question.

    The petitioner-tenant took the plea that the society was not the owner and landlord of the house in question and he was an occupier from the last 27 years. Accordingly, the right to recover the rent was also disputed. The following issues were framed by the Rent Controller:-

    “1. Whether the respondent is entitled for eviction from the suit property, on the grounds as alleged? OPP

    2. Whether the present petition is not maintainable in the present form? OPR

    3. Whether the petitioner has no cause of action to file the present suit? OPR

    4. Whether the petitioner has no locus-standi to file the present suit? OPR

    5. Relief.”

    The Society examined Ram Chander as PW-1 whereas the petitioner examined Baljinder Singh, Patwari as RW-1, Amar Nath, Estate Officer of the society as RW-2 and himself as RW-3. On issue no. 1 that whether the tenant was entitled for eviction on the grounds as alleged, the Rent Controller noticed that the society was owning 21 acres situated in the urban area of village Kharag Mangoli, Sector 1, Old Panchkula, District Panchkula where two schools were existing in 4 acres of land. It was noticed that the land stood released by the State of Haryana in favour of the society and the tenant had no locus standi to hold out and say that the society was not the owner of the property or is not the landlord. A resolution dated 27.10.2002 (Ex. P-2) had been passed to institute petitions against the tenants and the President and the Secretary namely Hira Lal Jain and V.K Jain were authorized to take necessary steps for conducting such proceedings. The Secretary had further delegated the power to Ramesh Chander, Assistant of the Society to appear and conduct cases and all matters connected with the cases of the society (Ex. P-3). It was noticed that earlier, a decision had been taken by the Committee in its meeting held on 06.10.1991 to get the barrack type houses in block K, J & I vacated from the tenants and to file a suit after getting the tenancy terminated. Proceedings had been filed but due to change in law, permission had been sought from this Court to withdraw the suits and it was accordingly noticed that any technicality should not come in the way and the rent petition was maintainable. The fact of non-payment of rent after 19.04.2010 also weighed with the Rent Controller and the fact that the society was wanting to raise a stadium and play ground in the land owned by as per the copy of resolution attached alongwith the scaled site plan. The Rent Controller also noticed that the petitioner had started the construction of the work of the stadium and that it was a welfare society imparting education and accommodation to those persons whose parents were victims of terrorists and natural disasters and required the land in question for raising a stadium and a play ground. Accordingly, the Rent Controller came to the conclusion that the tenant was not a person who could dictate how the landlord requires the premises for his bona fide and personal use. Reliance was placed upon the judgment of the Apex Court in Joginder Pal v. Naval Kishore Behal., (2002) 5 SCC 397; Kewal Singh v. Smt Lajwanti, (1980) 1 SCC 290 and Bega Begum v. Abdul Ahad Khan (1979) 1 SCC 273. It was further noticed that the entire vacant land was needed for setting up Mahavir University and ejectment on the ground of personal necessity was accordingly held to be bona fide and the petition was accordingly allowed.

    The Appellate Authority has also examined the factual matrix and held that a person can appear as a witness if he is well aware of the facts of the case and PW-1 had been given the authority to depose on behalf of the society vide the resolution. The society being a juristic person had to act through its agents and, therefore, it found no irregularity on account of Ram Chander contesting and pursuing the litigation. It was also noticed that Amar Nath, the Estate Officer had been summoned by the tenant himself and he had admitted that the Municipal Council was not passing the site plan on account of the dispute of the tenant and the landlord. Accordingly, the findings of the Rent Controller were upheld and the appeal was dismissed.

    Counsel for the petitioner-tenant has now vehemently submitted that initially the requirement was of a stadium and a play ground and now case set up is of setting up of a University as per the amended pleadings and in the absence of any such resolution on record, there was no bona fide necessity proved. The second submission is that there was no proper authorization and in such circumstances, the Courts below were not justified in ordering eviction since the President and the Secretary of the society had not stepped into the witness box.

    Mr. Adarsh Jain, Advocate, counsel for the respondent, on the other hand, submitted that as many as 85 tenants had vacated the premises or had been ejected and the bona fide necessity was sufficiently proved on account of the fact that the tenant himself had appeared and stated that the construction of the stadium had started.

    After hearing counsel for the parties, this Court is of the opinion that the submissions made by counsel for the tenant are not justified. It is a matter of fact that the society is wanting eviction of the tenants in question since 1991. Initially, the suits had been filed which were withdrawn on account of the Rent Act coming into operation regarding the premises in question. During the long period of litigation, the requirement of the society can always change. Initially, if the premises were required for a stadium or a play ground for the ancillary purposes of the school and now if the requirement is to set up a University in the premises in question which are part of the large area of 21 acres situated in the urban area, the bona fide necessity is not a mere desire. Due to litigation between the petitioner and the landlord and other tenants, the society may not be in a position to utilize its land due to their occupation and would face various hindrances in getting the site plan sanctioned and clearances from authorities which are required for the purposes of setting up of the University as it has to show availability of land for the purpose of setting up of the University. In such circumstances, if over the period of time, the requirement has changed which is ancillary usage of the area in question to the primary purpose of education no fault can be found in the orders passed by the authorities below whereby, ejectment has been ordered.

    The second argument which has been raised that the authorization was only to the President and the Secretary is also without any basis. It is settled principle that the corporate bodies are juristic persons and have to act through their agents and officers. Admittedly, way back on 16.07.1995 (Ex.P-4), a decision had been taken by the Managing Committee that the one room tenements constructed for refugee orphan boys on partition of India and later rented out to the persons like the petitioner were to be demolished after getting them vacated from the tenants and to use the same for educational campus. The initial resolution is in favour of the President and the Secretary and the Secretary has further delegated the power to Ramesh Chander, who is an Assistant working with the society. In such circumstances, no fault can be found if the said official has appeared and deposed in favour of the society regarding the need for personal necessity of the property in question for the reasons as noticed above. In such circumstances, the challenge laid that the said person did not have any authority is without any basis.

    Even otherwise, this Court is not to go into the detailed matrix of facts and is only to exercise the revisional jurisdiction under the Act. The Apex Court in Hindustan Petroleum Corporation Ltd. v. Dilbahar Singh, 2014 (9) SCALE 657 has specifically held that the correctness and legality of the order impugned have only to be seen and whether the Courts had jurisdiction. The facts which have been summarized above would go on to show that the Rent Controller and the Appellate Authority have exercised their power within their limitations and nothing could be pointed out that they had acted beyond their jurisdiction or their decision suffered from any error of law. The relevant observations of Hindustan Petroleum's case (supra) read thus:-

    “We hold, as we must, that none of the above Rent Control Acts entitles the High Court to interfere with the findings of fact recorded by the First Appellate Court/First Appellate Authority because on re-appreciation of the evidence, its view is different from the Court/Authority below. The consideration or examination of the evidence by the High Court in revisional jurisdiction under these Acts is confined to find out that finding of facts recorded by the Court/Authority below is according to law and does not suffer from any error of law. A finding of fact recorded by Court/Authority below, if perverse or has been arrived at without consideration of the material evidence or such finding is based on no evidence or misreading of the evidence or is grossly erroneous that, if allowed to stand, it would result in gross miscarriage of justice, is open to correction because it is not treated as a finding according to law. In that event, the High Court in exercise of its revisional jurisdiction under the above Rent Control Acts shall be entitled to set aside the impugned order as being not legal or proper. The High Court is entitled to satisfy itself the correctness or legality or propriety of any decision or order impugned before it as indicated above. However, to satisfy itself to the regularity, correctness, legality or propriety of the impugned decision or the order, the High Court shall not exercise its power as an appellate power to re-appreciate or re-assess the evidence for coming to a different finding on facts. Revisional power is not and cannot be equated with the power of reconsideration of all questions of fact as a court of first appeal. Where the High Court is required to be satisfied that the decision is according to law, it may examine whether the order impugned before it suffers from procedural illegality or irregularity.

    Accordingly, keeping in view the above settled principles of law and the discussion, this Court is of the opinion that there is no scope for interference in the well reasoned orders passed by the authorities below and the present revision petition is dismissed.

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    Ram Chander Petitioner(S) v. Shri Jainendra Gurukul (S)
    (Oct 29, 2014)