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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 14(1)(h) of the Delhi Rent Control Act, 1958
  • Section 14(1)(h) of the Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 14(1)(h) of the Delhi Rent Control Act, 1958
  • Section 14(1)(h) of the Act
Smart Summary

Factual and Procedural Background

The respondent–landlord let certain premises to the appellant–tenant on 1 April 1971. The appellant simultaneously owned another residential property, House No. D-196, Defence Colony, New Delhi, which was at that time occupied by her own tenant. On 20 November 1973 that tenant vacated and handed over vacant possession of the Defence Colony house to the appellant. Four days later, on 24 November 1973, the appellant executed a written agreement to sell that house to Smt. Leela Wati.

Invoking Section 14(1)(h) of the Delhi Rent Control Act, 1958—which permits eviction when a tenant “acquires vacant possession of a residence” after the commencement of the Act—the respondent filed an eviction petition. The Assistant Rent Controller and, on appeal, the Rent Control Tribunal both found that the statutory ground for eviction was satisfied. The Delhi High Court affirmed those findings, relying on its earlier decision in Hem Chand Baid v. Smt. Prem Wati Parekh (AIR 1980 Del 1). The present appeal was then brought by the tenant to the Supreme Court of India.

Legal Issues Presented

  1. Whether the appellant’s acquisition of vacant possession of her own house on 20 November 1973 constituted “alternative accommodation” under Section 14(1)(h) of the Delhi Rent Control Act, 1958, even though she sold that house four days later.
  2. Whether the existence of an alleged prior oral agreement to sell the house negated the appellant’s possession so as to defeat the landlord’s eviction claim.

Arguments of the Parties

Appellant's Arguments

  • Before the Defence Colony house was vacated, the appellant had already entered into an oral agreement to sell it to Smt. Leela Wati; the written agreement dated 24 November 1973 merely formalised this earlier commitment.
  • Because of that pre-existing contractual obligation, the appellant never had an unfettered right to occupy the house, and therefore it could not be treated as “alternative accommodation” for the purposes of Section 14(1)(h).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hem Chand Baid v. Smt. Prem Wati Parekh, AIR 1980 Del 1 Interpretation of Section 14(1)(h): a tenant is liable to eviction once vacant possession of another residence is obtained, even if that possession is later surrendered. The Supreme Court adopted the High Court’s reliance on this decision to affirm that the appellant’s temporary possession (20–24 Nov 1973) was sufficient to trigger Section 14(1)(h).

Court's Reasoning and Analysis

The Supreme Court first observed that both the Assistant Rent Controller and the Rent Control Tribunal had made concurrent factual findings that:

  • The appellant became the undisputed owner in possession of House D-196 on 20 November 1973.
  • The alleged oral agreement of sale preceding that date was not proved.

Because the appellant had physical and legal control of the Defence Colony house on 20 November 1973, the Court held that “it was available to her for her occupation,” thereby satisfying the statutory language of Section 14(1)(h). The subsequent sale on 24 November 1973, and the fact that the house was no longer in her occupation when the eviction petition was filed, were deemed immaterial; the statute requires only that the tenant “acquires” such possession at any time after commencement of the Act.

Rejecting the appellant’s contention that a prior oral agreement deprived her of meaningful possession, the Court relied on the Tribunal’s adverse finding on that alleged agreement. Consequently, the statutory ground for eviction stood established.

Holding and Implications

Appeal Dismissed. No order as to costs.

Immediate Effect: The eviction order against the appellant stands confirmed, obliging her to surrender the rented premises to the respondent.

Broader Implications: The decision reinforces the principle that even transient vacant possession of an owned residence can trigger Section 14(1)(h) liability, provided the tenant had control over that accommodation. The Court did not announce any new legal doctrine but affirmed the consistent interpretation applied by the Delhi High Court.

To access the original judgment, please Sign In or Subscribe.

    Mohini Badhwar v. Raghunandan Saran Ashok Saran .

    R.S Pathak, C.J— This is a tenant's appeal arising out of proceedings for her ejectment.

    2. The respondent, as landlord of the premises let to the appellant, filed a petition for her eviction on the ground set forth in Section 14(1)(h) of the Delhi Rent Control Act, 1958, that is to say, that the appellant had “acquired vacant possession of ... a residence” after the commencement of the Act viz. her own house D-196, Defence Colony, New Delhi and was therefore liable to hand over possession of the rented premises occupied by her to the respondent. It was alleged that the appellant had acquired vacant possession of her house on 20-11-1973 after the premises in suit had been let out to her on 1-4-1971. The appellant denied that she was liable to ejectment.

    3. The Assistant Rent Controller, Delhi, and the Rent Control Tribunal concurrently held that the appellant was owner of house D-196, Defence Colony, New Delhi, that on 20-11-1973 the previous tenant had vacated the premises and handed over vacant possession and that thereafter she had sold it to one Smt Leela Wati on 24-11-1973. It was observed that during the period 20-11-1973 to 24-11-1973 it must be taken that she was in possession of alternative accommodation. It was also held concurrently that even though on the date the petition for eviction was filed, the house, D-196, Defence Colony, New Delhi, was no longer in the occupation of the appellant it was sufficient for the purpose of Section 14(1)(h) that sometime prior to the filing of the eviction petition the appellant had obtained possession of the house. The High Court endorsed the view taken by it earlier in Hem Chand Baid v. Smt Prem Wati Parekh AIR 1980 Del 1, and in the view that the ground for ejectment had been made out when the eviction petition was filed it dismissed the appeal.

    4. In this appeal it is urged on behalf of the appellant that before the earlier tenant of the appellant had vacated the house the appellant had already entered into an agreement to sell the house to another person, and that therefore in the presence of that obligation it was not possible to say that when the house was vacated the appellant was entitled to enter into and to continue in possession of the house. It is contended before us that before the original tenant vacated the house there was an oral agreement between the appellant and Smt Leela Wati to sell the house to Smt Leela Wati and that the agreement was only formalised in a written document on 24-11-1973. It is urged that when the original tenant vacated the house on 20-11-1973 the appellant was under a legal obligation to sell the house to Smt Leela Wati, and that in the circumstances, the house cannot be said to constitute alternative accommodation for the purpose of Section 14(1)(h) of the Act. The Rent Control Tribunal has found against the existence of any such oral agreement. Upon that it would seem that it was only after obtaining possession on 20-11-1973 from the original tenant, that is, four days later, that the appellant executed an agreement for sale with Smt Leela Wati. It is apparent that on 20-11-1973 the appellant came into the house belonging to her and it was available to her for her occupation. The circumstance that she lost possession on the date when the eviction petition was filed does not protect the appellant against Section 14(1)(h) of the Act.

    5. In the result, the appeal fails and is dismissed but there is no order as to costs.

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    Comments

    Mohini Badhwar v. Raghunandan Saran Ashok Saran .
    (Apr 27, 1989)