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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Rule 16(2) of the Rules framed under the Act
  • U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
  • Section not specified, Subsection not specified, of the 1983 Income Tax Act (not mentioned)
  • Rule 16(2) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Rule 16(2) of the Rules framed under the Act
  • U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
  • Section not specified, Subsection not specified, of the 1983 Income Tax Act (not mentioned)
  • Rule 16(2) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

Respondent 1, Smt. Jiley Kaur, is the landlord of a shop governed by the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. The appellant has been a tenant in that shop since 1966. In 1975 the respondent applied under Section 21(1)(a) of the Act to obtain “release” of the shop, asserting that her two adult sons, who had completed their education and were unemployed, required the premises to start a business.

The Prescribed Authority rejected the landlord’s application, agreeing with the tenant that (i) the need was not bona fide and (ii) greater hardship would fall on the tenant if eviction were ordered. On appeal, the District Judge, Ghaziabad reversed that decision, finding the need bona fide and the comparative hardship greater for the landlord. The tenant’s writ petition against the appellate order was dismissed by the Allahabad High Court. The present appeal by special leave challenges the High Court’s judgment.

Legal Issues Presented

  1. Whether the District Judge erred in holding that the landlord’s need for the shop was bona fide, particularly in light of alleged alternative premises.
  2. Whether, in assessing comparative hardship, the District Judge misapplied or ignored Rule 16(2) of the Rules framed under the 1972 Act.
  3. Where hardship to landlord and tenant is found to be equal, whether the application for release should nevertheless have been allowed.

Arguments of the Parties

Appellant’s Arguments

  • The District Judge failed to consider a third shop in Mohalla Jatwara—which the Prescribed Authority treated as available to the landlord—thus vitiating the finding of bona fide need.
  • Rule 16(2) factors (length of tenancy, suitability of alternate accommodation for the tenant, extent of the landlord’s business, and unemployment of educated sons) were not properly weighed, rendering the comparative-hardship analysis defective.
  • Because the District Judge recorded that hardship was “equally balanced,” under Bishan Chand v. Vth ADJ an order favouring the tenant was mandatory.
  • Courts should take judicial notice of the scarcity of commercial premises; hence the tenant need not prove an exhaustive search for alternate accommodation (Gautam Chand Jain relied upon).
  • Comfort or convenience of the landlord is not a relevant criterion (Amarjit Singh v. Khatoon Quamarain).

The opinion does not detail the respondent’s specific legal submissions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bishan Chand v. Vth Addl. District Judge, (1982) 1 SCC 626 Equal hardship to landlord and tenant bars release in absence of additional circumstances; Rule 16(2) must be considered. Distinguished: Supreme Court held there was an “outweighing circumstance”—two unemployed sons seeking self-employment—and that Rule 16(2) had in fact been applied.
Mst. Bega Begum v. Abdul Ahad Khan, (1979) 1 SCC 273 Each party must prove its own hardship; burden cannot rest solely on landlord. Relied upon to state that the tenant failed to show efforts to obtain alternative accommodation, weakening his hardship plea.
Gautam Chand Jain v. Sushila Kumari Jain, 1985 Supp SCC 14 Judicial notice of accommodation scarcity; necessity for landlord to suggest alternatives. Held inapplicable because, unlike that case, no suitable alternative premises existed for the landlord, and the tenant produced no evidence of search for alternatives.
Amarjit Singh v. Smt. Khatoon Quamarain, (1986) 4 SCC 736 Comfort of landlord is not a determinative factor in release applications. Court found the District Judge had not based his order on landlord’s comfort; precedent did not aid the tenant.

Court’s Reasoning and Analysis

The Supreme Court concluded that the District Judge’s appraisal of evidence was proper and warranted no interference:

  • Alternative accommodation: The Mohalla Jatwara shop identified by the Prescribed Authority belonged to the landlord’s sister and could not be treated as premises available to the respondent. The other two premises were factually unsuitable for the sons’ business; this was a finding of fact immune to writ review.
  • Rule 16(2): The District Judge expressly noted the tenant’s long occupancy (since 1966) and the absence of any suitable premises for him, considered the landlord’s existing business, and gave decisive weight to clause (d) (unemployed educated sons). Therefore, the rule was not ignored.
  • Comparative hardship: Even if hardships were “equally balanced,” three additional factors tipped the scale toward the landlord: (a) the sons’ unemployment after completing education, (b) the landlord’s compliance with Rule 16(2), and (c) the tenant’s failure to adduce evidence of any attempt to locate alternative premises during 15 years of litigation.
  • Distinguishing precedents: The Court explained why each authority cited by the appellant did not control the present facts, primarily because those cases lacked the compelling circumstance of unemployed adult children or involved residential, not business, premises.

Holding and Implications

Appeal Dismissed with costs of Rs 2,000.

The tenant must vacate the shop by 31 December 1990, subject to depositing the costs within four weeks and filing an undertaking. The decision affirms the District Judge’s release order and awards the landlord possession after the stipulated period. No new legal principle was announced; the ruling primarily re-affirms that factual findings on bona fide need and comparative hardship, when grounded in evidence and Rule 16(2), will not be disturbed in writ or appellate review.

    Bhagwan Dass v. Jiley Kaur (Smt) And Another

    Order

    1. This appeal by special leave has been preferred against the judgment of the Allahabad High Court dismissing a writ petition filed by the appellant. Facts necessary for the decision of this appeal may be stated in a nutshell.

    2. Respondent 1, Smt Jiley Kaur, is the landlord, within the meaning of the said expression as contained in the U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as ‘the Act’) of a shop which is in the occupation of the appellant as a tenant. An application was made by respondent 1 for the release of the said shop under Section 21(1)(a) of the Act on the ground that two of her sons had grown up and were unemployed and the shop was needed to enable them to carry on business. The application was contested by the appellant on the ground that the need of the landlord was not bona fide and that in any view of the matter greater hardship shall be caused to him in case an order of eviction was passed, than the hardship, which was likely to be caused to respondent 1 in the event of the application for release being dismissed. On a consideration of the evidence produced by the parties, the Prescribed Authority agreed with the case set up by the appellant in his defence and dismissed the application for release. Aggrieved by that decision, respondent 1 preferred an appeal which was allowed by the District Judge, Ghaziabad. He came to the conclusion that the need of the landlord was bona fide and that greater hardship would be caused to her in the event of her application for release being dismissed than the hardship which may be caused to the appellant on the said application being allowed. It is this order which was challenged in the writ petition before the High Court which was dismissed by the judgment appealed against.

    3. It has been urged by learned counsel for the appellant that the District Judge has committed an error in reversing the order of the Prescribed Authority on both the points referred to above. In support of his plea that the finding of the District Judge on the question of bona fide need of the landlord was erroneous, he has urged that apart from the two premises which have been noticed by the District Judge and which according to the appellant could be used as a shop by the sons of respondent 1, there was another shop in Mohalla Jatwara which even though had been taken into consideration by the Prescribed Authority has been completely ignored by the District Judge. From a perusal of the judgment of the District Judge, however, it appears that while bringing to his notice alternative accommodations available to respondent 1, the said shop was not brought to his notice on behalf of the appellant. In our opinion, the reason, therefor, seems to be obvious. A perusal of the order of the Prescribed Authority indicates that this shop did not belong to respondent 1 but belonged to her sister, Smt Chandro Devi. The Prescribed Authority adopted a curious reasoning in holding that this shop was also available to respondent 1. What has been stated in this behalf is that since the sister of respondent 1 was the co-owner of the shop in dispute, “the applicant is still in a very good position by getting rent and also having many of the houses in possession”. Apparently, the accommodation belonging to Chandro Devi, the sister of the respondent 1, could not be treated to be an accommodation available to respondent 1 for being used by her sons to carry on business. As regards the remaining two premises the finding of the District Judge that notwithstanding the fact that respondent 1 was possessed of those two premises, they could not be used for the purposes of business by the sons of respondent 1 for the reasons stated by him in his order, is essentially one of fact based on appraisal of evidence and no exception can taken to the stand of the High Court in not interfering with that finding in a writ petition.

    4. It was then urged by learned counsel for the appellant that the District Judge has ignored the provisions of Rule 16(2) of the Rules framed under the Act while considering the question of comparative hardship. We find it difficult to agree with the said submission also. Sub-rule (2) of Rule 16 which deals with a building let out for the purposes of business, prescribes certain factors which are to be taken into consideration while deciding the question of comparative hardship. Clause (a) in substance provides that the greater the period of occupation by the tenant the less the justification for allowing an application for release. Clause (b), on the other hand, prescribes that if the tenant has a suitable accommodation available to him to which he can shift without substantial loss, there shall be greater justification for allowing the application for release. Clause (c) deals with the extent of the existing business of the landlord, whereas clause (d) inter alia provides that where a son of the landlord has after a building was originally let out, completed his technical education and is not employed in government service and wants to engage in self-employment, his need shall be given due consideration.

    5. It is not a case where the District Judge can be said to be oblivious of the circumstance that the tenant was in occupation of the building since 1966 inasmuch as it is a fact which stands specifically mentioned in his order. Likewise, the fact that the tenant had no suitable accommodation available was indeed not in dispute and as such the District Judge cannot be said to be unaware of this circumstance either. So far as clause (c) is concerned which deals with the existing business of the landlord, the District Judge has specifically dealt with the same. It cannot, therefore, be said that the provisions contained in clause (c) were given a go-by. As regards clause (d) it would be seen that two adult sons of the landlord after completing their education were unemployed and wanted to carry on business for self-employment. The principle contained in this clause constituted an outweighing circumstance in favour of the landlord. The order of the District Judge cannot, therefore, be said to be vitiated on this ground either.

    6. While dealing with the question of comparative hardship learned counsel for the appellant placed reliance on certain decisions dealing with Rule 16(1) of the Rules. We do not, however, find it necessary to consider them inasmuch as the said sub-rule does not deal with an accommodation let out for purposes of business but deals with an accommodation let out for residential purposes, which in the instant case is not relevant.

    7. Learned counsel for the appellant then pointed out that the District Judge has recorded a finding that in the instant case the hardship to the parties was equally balanced and on its basis has urged, that in such a situation the benefit ought to have been given to the appellant by dismissing the application for release and the District Judge has committed an error in allowing the said application. The District Judge for the view which he took relied on a decision of the Allahabad High Court in which it was held that in such a situation the fact that the tenant had not proved by evidence that no alternative accommodation was available to him was a relevant factor, which would go against him. In this connection, learned counsel for the appellant placed reliance on a decision of this Court in Bishan Chand v. Vth Addl. District Judge, Bulandshahr (1982) 1 SCC 626 where it was held that in the absence of an additional circumstance indicating that preference could be given to the landlord, order in his favour could not be made if the finding was one of equal hardship to both the landlord and the tenant. It was also pointed out in this case that the provisions of Rule 16(2) of the Act had not been considered at all. In our opinion, the said decision is clearly distinguishable. Firstly, the instant case was one where there was an outweighing circumstance in favour of the landlord namely that two of her sons after completing their education were unemployed and wanted to carry on business for self-employment. Secondly, as already seen above, it was not a case where the provisions of Rule 16(2) can be said to have been ignored by the District Judge. Thirdly, it was a case where there was even this additional circumstance that the appellant had brought no material on record to indicate that at any time during the pendency of this long drawn out litigation he made any attempt to seek an alternative accommodation and was unable to get it. In Mst. Bega Begum v. Abdul Ahad Khan (1979) 1 SCC 273 it was held that in deciding the extent of the hardship that may be caused to one party or the other, in case a decree for eviction is passed or is refused, each party has to prove its relative advantages or disadvantages and the entire onus cannot be thrown on the plaintiffs to prove that lesser disadvantages will be suffered by the defendants and that they were remediable.

    8. Reliance was then placed by learned counsel for the appellant on Gautam Chand Jain v. Sushila Kumari Jain 1985 Supp SCC 14. In our opinion this decision also is not of any assistance to the appellant. It was a case where unlike the instant case more suitable alternative accommodation for the owner was available whereas no alternative accommodation could be found out for the tenant. What was emphasised by the learned counsel for the appellant in this decision was that in course of hearing of the appeals in that case the matter was adjourned with a view to giving an opportunity to the landlord to suggest an alternative accommodation in the premises in dispute, but none could be suggested. According to learned counsel, scarcity of accommodation is a circumstance of which judicial note can be taken. It was urged that in this view of the matter the court may take judicial notice of the fact, even though the tenant may not have brought any material on record of his own to indicate that he made any attempt to have an alternative accommodation but was unable to get the same, that no alternative accommodation was available to the appellant. In our opinion, the question as to whether in a given circumstance alternative accommodation is available or not is not a matter of which any judicial notice can be taken but is one which has to be proved by evidence as has been emphasised in Bega Begum case (1979) 1 SCC 273.

    9. Lastly, reliance was placed on Amarjit Singh v. Smt Khatoon Quamarain (1986) 4 SCC 736 and it was emphasised on its basis that comfort of the landlord was not a relevant circumstance. In our opinion, even this case is hardly of any assistance to the appellant inasmuch as the District Judge has not allowed the application for release on the ground that it would be more comfortable to respondent 1. No other point has been pressed.

    10. In this result, we find no merit in this appeal. It is, accordingly, dismissed with costs which are assessed at Rs 2000.

    11. A prayer has been made by learned counsel for the appellant for grant of some reasonable time to the appellant to vacate the shop in question. Even though it is a case where the application for release was made about 15 years back in the year 1975 on the ground of the personal need of the landlord we are of the opinion that since the appellant has been carrying on business in the shop in question, time till December 31, 1990 may be granted to him to vacate the same. We, therefore, direct that the order of eviction of the appellant shall not be carried out till December 31, 1990 subject to the condition that the amount of costs awarded as above is deposited in the court of the District Judge, Ghaziabad by the appellant within four weeks from today and an undertaking is filed by him in this Court within the same period containing the usual terms. The amount of two years' rent, which according to learned counsel for the respondent 1, has already been deposited in pursuance of the order passed by the District Judge can be withdrawn by the appellant. Likewise, the amount of the costs of this Court which may be deposited by the appellant as aforesaid, can be withdrawn by respondent 1.

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    Bhagwan Dass v. Jiley Kaur (Smt) And Another
    (Aug 27, 1990)