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Mohan Lal v. Jai Bhagwan .
Factual and Procedural Background
The appellant rented the shop in dispute from the respondent on 19 April 1975 at a monthly rent of Rs 120. Clause 4 of the rent note specified that the premises would be used “to run the business of English Liquor Vend … sale of liquor.” The respondent–landlord initiated eviction proceedings under Section 13 of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (“the Act”) alleging (i) arrears of rent for the period 1 April 1979 to 31 August 1979 and (ii) an unauthorised change of user when the appellant switched from a liquor vend to a general-merchandise business after his liquor licence was not renewed.
The appellant paid the arrears on the first date of hearing and contested the petition. The Rent Controller ordered eviction, holding that the change of user violated Section 13(2)(ii)(b). The Appellate Authority dismissed the tenant’s appeal, and the High Court of Punjab and Haryana affirmed that dismissal in civil revision on 14 August 1987. The tenant then approached the Supreme Court by special leave.
Legal Issues Presented
- Whether the appellant’s switch from a liquor vend to a general-merchandise business constitutes using the building “for a purpose other than that for which it was leased” under Section 13(2)(ii)(b) of the Act, thereby justifying eviction.
Arguments of the Parties
Appellant (Tenant)
- The liquor-vend licence was not renewed after March 1979, necessitating a shift to general merchandise.
- The premises continue to be used for a commercial purpose; the rent note contains no clause forbidding a change to another commercial activity.
- Under an expanded modern concept of business, the new activity is allied to the original purpose and does not impair the building or create nuisance, so Section 13(2)(ii)(b) should not apply.
Respondent (Landlord)
- Invoked Section 13(2)(ii)(b) on the ground that the premises were expressly let for a liquor-vend business and the tenant changed that purpose without written consent.
- Sought eviction on this statutory ground in addition to claiming arrears (which were subsequently tendered).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Sikander Lal v. Amrit Lal (1984) 86 Punj LR 1 (Full Bench, P&H High Court) | A subsequent use merely ancillary to the original purpose does not amount to “change of user.” Only non-allied, distinct businesses fall within Section 13(2)(ii)(b). | The High Court had relied on this case; the Supreme Court noted the allied-business test but read the decision “with reservation,” ultimately finding the present change permissible. |
| Maharaj Kishan Kesar v. Milkha Singh, Civil Appeal No. 1086 of 1964 (Supreme Court) | Selling petrol was held an allied activity to a motor-workshop; therefore, no change of user. | Reinforced the view that allied commercial activities remain within the original lease purpose; used to support the appellant’s position. |
| Duport Steels Ltd. v. Sirs (1980) 1 All ER 529 (House of Lords) | Judicial role is to interpret statutory words as enacted, not to rewrite them based on policy preferences; separation of powers. | Cited to affirm judicial restraint, but the Court added that statutory terms must be construed in light of contemporary realities (“felt necessities of the time”). |
Court's Reasoning and Analysis
The Court began by reproducing Section 13(2)(ii)(b) of the Act and observing that its object is to regulate eviction of tenants in urban areas. Examining the clause, the Court emphasised that:
- The premises were initially let for business purposes; the subsequent business is still commercial and causes no structural damage or nuisance.
- Modern commercial practice recognises an “expanding concept of business,” akin to departmental stores; a shift from selling liquor to selling general merchandise can be regarded as an allied, not wholly different, use.
- Applying the reasoning in Maharaj Kishan Kesar, an activity allied to the original purpose does not trigger eviction provisions.
- The reliance by subordinate courts on Sikander Lal was misplaced because that decision itself confines change of user to situations where the new activity is neither part, parcel, nor ancillary to the original one.
- Thus, the statutory mischief of Section 13(2)(ii)(b) is not attracted in the present facts.
Holding and Implications
APPEAL ALLOWED; ORDER OF EVICTION SET ASIDE.
Consequently, the appellant retains possession, and each party bears its own costs. The judgment clarifies that, under the Haryana Urban Rent Act, a tenant’s shift from one form of commercial activity to another commercially allied activity does not per se constitute “change of user” warranting eviction, unless the new use is distinct, non-ancillary, and prejudicial to the premises. No broader precedent was expressly laid down beyond this clarification.
Sabyasachi Mukharji, J.— This appeal by special leave is directed against the judgment of the High Court of Punjab and Haryana dated 14-8-1987. The appellant took on rent the premises in dispute from the respondent at a monthly rent of Rs 120 and executed a rent note in his favour on 19-4-1975. Clause (4) of the said rent note provided, inter alia, as follows:
“That the tenant will run the business of English Liquor Vend in the shop — will do sale of liquor.”
2. The landlord, respondent herein filed a petition under Section 13 of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (hereinafter called “the Act”) against the appellant on the ground of arrears of rent from 1-4-1979 to 31-8-1979 and change of user from liquor vend business to that of general merchandise at the shop in dispute by the appellant.
3. The appellant tendered the entire arrears of rent at the first date of hearing and thereafter he contested by filing written statement. The appellant submitted that after March 1979, the licence of liquor vend in his favour was not renewed and he had to discontinue that business of liquor vend at the shop in dispute and had to start the business of general merchandise. According to the appellant the purpose of the user still remains commercial and that in the rent note there was no clause prohibiting the appellant to change to any other business in the shop in dispute.
4. The Rent Controller held that the appellant had changed the user of the shop in dispute and he was liable for eviction under the Act. There was an appeal to the Appellate Authority and the Appellate Authority dismissed the said appeal. The appellant went in civil revision to the High Court of Punjab and Haryana. The High Court dismissed the civil revision and upheld the eviction. Hence this appeal.
5. The question is, whether a ground for eviction was made out under clause (b) of Section 13(2)(ii) of the Act. The said Act was passed to control the increase of rent of certain buildings and rented land situated within the limits of urban areas, and the eviction of the tenants therefrom. Section 13(2)(ii)(b) of the Act reads as follows:
“13(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 application is satisfied,—
(ii) that the tenant has after the commencement of the 1949 Act, without the written consent of the landlord,—
(b) used the building or rented land for a purpose other than that for which it was leased;”
6. The High Court of Punjab and Haryana has relied on a Full Bench decision of the said High Court in Sikander Lal v. Amrit Lal (1984) 86 Punj LR 1. That was a case under the East Punjab Urban Rent Restriction Act of 1949. The Full Bench of the Punjab and Haryana High Court in the facts and circumstances of that case held that it was a common ground that the premises was originally leased for the business of handlooms. Thereafter it was used for small carding machine not occupying a space of more than 4 feet × 4 feet which converted cloth into thread. It was held that there was no change of user. The Full Bench, however, observed that it emerged from the long line of authorities that, where the subsequent use of the premises is merely ancillary to the specific original purpose then it would imply no change of user within the meaning of the statute. If by custom or convention or on the finding of the court it could be held that the added use of the premises was ancillary to the main original purpose then in the eye of law it would be deemed to have been within the terms of the original lease. It was further held that both on principle and on binding precedent it emerged that the specific original purpose could not be, according to the Full Bench, extended by adding to it any and every purpose thereto, and the same must be confined within the limitation of being either a part or parcel of, or ancillary to, the original purpose. There the court was concerned with Section 13(2)(ii)(b) of the Act which is an identical provision as the present one. So far as the High Court held in that case that allied business would not amount to change of user but for a business which is not allied for (sic to) the business for which it was let out would amount to change of user come within the mischief of clause (b) of Section 13(2)(ii) of the Act, the same must be read with reservation.
7. Our attention was drawn to a decision of this Court in Maharaj Kishan Kesar v. Milkha Singh Civil Appeal No. 1086 of 1964. That was a decision under the East Punjab Urban Rent Restriction Act, 1949. There on the facts the court found that selling petrol was an allied business of the workshop and as such it is a part of the business. The court held that there was no evidence to show that in the trade a petrol pump is not regarded as a part of motor workshop business. The sale of petrol is an allied business and would not amount to conversion to a different business or change of user. There is nothing in the said decision which would give any assistance to the respondent in this case. The business purposes must be adjudged in the light of the purposes of the Rent Act in question which is to control the eviction of tenants therefrom. In the expanding concept of business now-a-days and the growing concept of departmental stores, we are of the opinion that it cannot be said that there was any change of user in the facts of this case which would attract the mischief of the provisions of Section 13(2)(ii)(b) of the Act. The building was rented for purpose of carrying on a busness, using it for another business, it will not in any way impair the utility or damage the building and this business can be conveniently carried on in the said premises. There was no nuisance created.
8. Our attention was drawn to the observations of Lord Diplock in Duport Steels Ltd. v. Sirs (1980) 1 All ER 529. That was a decision in respect of the Trade Disputes Act, 1906. Lord Diplock said:
“My Lords, at a time when more and more cases involving the application of legislation which gives effect to policies that are the subject of bitter public and parliamentary controversy, it cannot be too strongly emphasised that the British Constitution, though largely unwritten, is firmly based on the separation of powers: Parliament makes the laws, the judiciary interprets them. When Parliament legislates to remedy what the majority of its members at the time perceive to be a defect or a lacuna in the existing law (whether it be the written law enacted by existing statutes or the unwritten common law as it has been expounded by the Judges in decided cases), the role of the judiciary is confined to ascertaining from the words that Parliament has approved as expressing its intention what that intention was, and to giving effect to it. Where the meaning of the statutory words is plain and unambiguous it is not for the Judges to invent fancied ambiguities as an excuse for failing to give effect to its plain meaning because they themselves consider that the consequences of doing so would be inexpedient, or even unjust or immoral. In controversial matters such as are involved in industrial relations there is room for differences of opinion as to what is expedient, what is just and what is morally justifiable. Under our Constitution it is Parliament's opinion on these matters that is paramount.”
9. While respectfully agreeing with the said observations of Lord Diplock, that Parliament legislates to remedy and the judiciary interpret them, it has to be borne in mind that the meaning of the expression must be found in the felt necessities of the time. In the background of the purpose of rent legislation and inasmuch as in the instant case the change of the user would not cause any mischief or detriment or impairment of the shop in question and in one sense could be called an allied business in the expanding concept of departmental stores, in our opinion, in this case there was no change of user which attract the mischief of Section 13(2)(ii)(b) of the Act. The High Court, therefore, was in error.
10. In that view of the matter this appeal is allowed and the order of eviction is set aside. The parties will pay and bear their own costs.
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