AMICUS AI
Citation Codes
Neutral Citations
2004 INSC 503
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Sections 12(1)(a), (b) and (f) of the Madhya Pradesh Accommodation Control Act, 1961
  • Order 41 Rule 27 of the Civil Procedure Code, 1908 (in short “CPC”)
  • Section 12(1)(f) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not present in the text)
  • the present statute, merely referred to as ‘landlord requires for his own use’
  • Section 17 of the Act
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Neutral Citations
2004 INSC 503
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Sections 12(1)(a), (b) and (f) of the Madhya Pradesh Accommodation Control Act, 1961
  • Order 41 Rule 27 of the Civil Procedure Code, 1908 (in short “CPC”)
  • Section 12(1)(f) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not present in the text)
  • the present statute, merely referred to as ‘landlord requires for his own use’
  • Section 17 of the Act
Smart Summary

Factual and Procedural Background

The landlords (plaintiffs) instituted an eviction suit against the tenants (Defendants 1 and 2) under Sections 12(1)(a), (b) and (f) of the Madhya Pradesh Accommodation Control Act, 1961. They pleaded (i) default in payment of rent, (ii) unlawful sub-letting, and (iii) bona fide requirement of the premises for the use of the landlord’s son, Naresh Talreja.

The trial court framed thirteen issues and decreed eviction, holding that the landlords had a genuine and bona fide need and that Defendant 1 had sub-let the premises. On first appeal, the Appellate Authority reversed the finding on sub-letting but affirmed the decree on the ground of bona fide need. The High Court, in second appeal, concurred with the appellate court and granted the tenants time to vacate until the end of August 2002.

During the High Court proceedings the tenants filed (i) an application under Order 41 Rule 27 CPC to adduce additional evidence and (ii) an application to amend the written statement, asserting that Naresh Talreja had settled permanently in the U.S.A., rendering the pleaded need extinct. The High Court considered those events but ruled that the need persisted.

The tenants appealed to the Supreme Court, challenging the High Court’s treatment of subsequent events and seeking more time to vacate.

Legal Issues Presented

  1. Whether subsequent events—specifically, the temporary employment of the landlord’s son in the United States—had extinguished the landlords’ bona fide requirement under Section 12(1)(f) of the Madhya Pradesh Accommodation Control Act.
  2. Whether the High Court erred in affirming concurrent findings of bona fide need despite the tenants’ applications under Order 41 Rule 27 CPC and for amendment of the written statement.
  3. What is the relevant point of time for assessing the landlord’s bona fide need in eviction proceedings.

Arguments of the Parties

Appellants’ (Tenants’) Arguments

  • The High Court failed to give due weight to subsequent events showing that Naresh Talreja had completed his engineering degree, secured employment in an Indian company, and was now permanently settled in the U.S.A., eliminating the pleaded need.
  • In eviction matters, the landlord’s bona fide requirement must exist not only when the suit is filed but must continue until final adjudication; the need had ceased during the pendency of the litigation.
  • Given the long tenancy, the Court should grant a reasonable period to vacate if eviction is upheld.

Respondents’ (Landlords’) Arguments

  • A landlord or his son cannot be expected to remain idle while litigation is pending; Naresh Talreja merely took temporary employment abroad because suitable accommodation was unavailable.
  • Naresh intends to return to India and start his business once possession is obtained; therefore, the bona fide need subsists.
  • Even if the premises are later not used for the stated purpose, Section 17 of the Act protects the tenant by providing a statutory mechanism for re-entry.
  • The High Court had already evaluated the subsequent events and rightly found that they did not nullify the need.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ramesh Kumar v. Kesho Ram, 1992 Supp (2) SCC 623 Normal rule: rights & obligations are determined at the commencement of the lis; courts may mould relief in light of subsequent events. Cited to show that while the filing date is crucial, the court can cautiously consider later developments.
Hasmat Rai v. Raghunath Prasad, (1981) 3 SCC 103 Landlord’s requirement must exist on the filing date and subsist until final decree; appellate courts must evaluate subsequent events that “wholly satisfy” the need. Relied on to justify the High Court’s evaluation of post-suit developments and to affirm that the need was not wholly satisfied.
Gaya Prasad v. Pradeep Srivastava, (2001) 2 SCC 604 Re-emphasised the approach to bona fide need amid judicial delays and subsequent events. Quoted to highlight the injustice of defeating need due to litigation delays.
Ram Dass v. Ishwar Chander, (1988) 3 SCC 131 Need must be genuine, honest, conceived in good faith, and reasonable to satisfy. Used to explain the legislative intent behind “bona fide requirement.”
Gulabbai v. Nalin Narsi Vohra, (1991) 3 SCC 483 “Reasonable requirement” presupposes an element of need, not mere desire. Reinforced that the landlord’s claim exceeded a mere wish.
Bega Begum v. Abdul Ahad Khan, (1979) 1 SCC 273 Distinction between desire and need in rent-control statutes. Cited indirectly via Gulabbai to support the above proposition.
Shiv Sarup Gupta v. Dr. Mahesh Chand Gupta, (1999) 6 SCC 222 Laid down the “arm-chair” test for assessing the landlord’s state of mind regarding need. Illustrated the judicial method of evaluating bona fides.
Atma S. Berar v. Mukhtiar Singh, (2003) 2 SCC 3 Confirmed that the established principles on bona fide need remain unaltered. Mentioned to show continuity in legal position.

Court's Reasoning and Analysis

The Supreme Court reiterated that the critical date for assessing bona fide need is the date of the eviction petition, although courts may consider subsequent events. Citing Ramesh Kumar, Hasmat Rai and Gaya Prasad, the Court observed that subsequent events must “wholly satisfy” the claimed requirement to defeat it. The tenants’ evidence only indicated a possibility that Naresh Talreja might remain abroad; it did not establish with certainty that he would never return, nor that the landlords had alternative suitable premises.

The Court agreed with the High Court that:

  • The alleged subsequent events fell within the realm of probability, not certainty, and therefore did not eclipse the landlords’ need.
  • The High Court had evaluated the additional material filed under Order 41 Rule 27 CPC and correctly held that bona fide need continued.
  • Section 17 of the Act protects the tenants should the landlords deviate from the stated purpose after obtaining possession.

Judicial delay, the Court noted, should not penalise a landlord whose need remained genuine throughout the protracted litigation.

Holding and Implications

Appeal Dismissed.

The Supreme Court affirmed the eviction decree but, considering that the tenants had occupied the premises for nearly two decades, extended the time to vacate until 31 December 2005, subject to:

  • Filing of an undertaking before the trial court;
  • Prompt payment of current and arrear rent within two months.

Implications are confined to the parties: eviction stands confirmed, but the tenants gain extended time and statutory protection under Section 17 if the premises are not used for the stated purpose. The judgment does not create new precedent; it reinforces existing principles on bona fide requirement and treatment of subsequent events.

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

    Pratap Rai Tanwani And Another v. Uttam Chand And Another

    Arijit Pasayat, J.— The tenants are in appeal against the impugned judgment of the VIIth Civil Judge No. 2, Bhopal, M.P, the first appellate court, and finally the judgment of affirmation by learned Single Judge of the Madhya Pradesh High Court at Jabalpur. Background facts in a nutshell are as follows:

    A suit for eviction was filed before the trial court under Sections 12(1)(a), (b) and (f) of the Madhya Pradesh Accommodation Control Act, 1961 (in short “the Act”). The plaintiffs filed the suit on the ground that (a) there was default in payments of the rent due, (b) the tenant (Defendant 1) had unlawfully sub-let the tenanted premises, and (c) for bona fide requirement. The trial court framed, in total, thirteen issues and held that the need of the plaintiffs, so far as the suit premises are concerned, was genuine and bona fide. It was also held that the plaintiffs had not got other suitable accommodation available and Defendant 1 had sub-let the premises to Defendant 2. The suit was accordingly decreed.

    2. In appeal the Appellate Authority held that the plea of sub-letting was not established. However, the finding regarding bona fide need was affirmed by the first appellate court. In second appeal the judgments of the courts below, so far as they were adverse to the appellant, were affirmed. The tenants filed an application in terms of Order 41 Rule 27 of the Civil Procedure Code, 1908 (in short “CPC”). Another application for amendment of the written statement was also filed. By these two applications the appellants wanted to highlight the alleged factual position that during the pendency of the matter Naresh Talreja, son of Appellant 1 Uttam Chand (Respondent 1 herein) had acquired a degree in Engineering, got an employment in an Indian company and subsequently was settled in USA and was working there, with no chance of his coming back to India. Therefore, it was submitted that the alleged bona fide need and requirement, for which the application was filed, had become non-existent, thereby disentitling the plaintiffs from any relief.

    3. The present respondents refuted the claim of the appellants and submitted that since there was no other accommodation readily available, Naresh Talreja pursued studies in Engineering and was temporarily engaged in USA. He wanted to come back and start his business.

    4. The High Court found that the requirements of Section 12(1)(f) of the Act were fully complied with and in view of concurrent findings recorded to the effect that there was bona fide need of the premises, second appeal had no merit. Accordingly, the High Court dismissed the second appeal. Time was granted till the end of August 2002 to vacate the premises.

    5. In support of the appeal, Mr Raju Ramachandran, learned Senior Counsel submitted that the High Court has lightly set aside the subsequent events. It is a settled position in law that the question whether a person has bona fide need, was not restricted to the point of time when the application for eviction is made; it continues till final adjudication. On the facts of the case the High Court has erroneously come to the conclusion that the need subsisted.

    6. Per contra, learned counsel for the respondents submitted that a person, for whose bona fide need the premises are required, cannot just remain idle in anticipation of getting the premises for starting business. As there was delay in disposal of the matter, Naresh completed his studies and had taken temporary employment with visa for limited period and intended to come back to India as soon as premises were available to start the business. In any event, it was pointed out that if there was non-user of the premises for the purpose for which eviction was sought for, the tenant concerned has protection in terms of Section 17 of the Act.

    7. It is a stark reality that the longer is the life of the litigation the more would be the number of developments sprouting up during the long interregnum. If a young entrepreneur decides to launch a new enterprise and on that ground he or his father seeks eviction of a tenant from the building, the proposed enterprise would not get faded out by subsequent developments during the traditional lengthy longevity of the litigation. His need may get dusted, patina might stick on its surface, nonetheless the need would remain intact. All that is needed is to erase the patina and see the gloss. It is pernicious, and we may say, unjust to shut the door before an applicant just on the eve of his reaching the finale after passing through all the previous levels of the litigation merely on the ground that certain developments occurred pendente lite, because the opposite party succeeded in prolonging the matter for such unduly long period.

    8. We cannot forget that while considering the bona fides of the need of the landlord the crucial date is the date of the petition. In Ramesh Kumar v. Kesho Ram 1992 Supp (2) SCC 623 a two-Judge Bench of this Court (M.N Venkatachalia, J., as he then was and N.M Kasliwal, J.) pointed out that the normal rule is that rights and obligations of the parties are to be determined as they were when the lis commenced and the only exception is that the court is not precluded from moulding the reliefs appropriately in consideration of subsequent events provided such events had an impact on those rights and obligations. What the learned Chief Justice observed therein is this:

    “6. The normal rule is that in any litigation the rights and obligations of the parties are adjudicated upon as they obtain at the commencement of the lis. But this is subject to an exception. Wherever subsequent events of fact or law which have a material bearing on the entitlement of the parties to relief or on aspects which bear on the moulding of the relief occur, the court is not precluded from taking a ‘cautious cognizance’ of the subsequent changes of fact and law to mould the relief.”

    9. The next three-Judge Bench of this Court which approved and followed the above decision in Hasmat Rai v. Raghunath Prasad (1981) 3 SCC 103 has taken care to emphasise that the subsequent events should have “wholly satisfied” the requirement of the party who petitioned for eviction on the ground of personal requirement. The relevant passage is extracted below:

    “Therefore, it is now incontrovertible that where possession is sought for personal requirement it would be correct to say that the requirement pleaded by the landlord must not only exist on the date of the action but must subsist till the final decree or an order for eviction is made. If in the meantime events have cropped up which would show that the landlord's requirement is wholly satisfied then in that case his action must fail and in such a situation it is incorrect to say that as decree or order for eviction is passed against the tenant he cannot invite the court to take into consideration subsequent events.”

    10. The judicial tardiness, for which unfortunately our system has acquired notoriety, causes the lis to creep through the line for long long years from the start to the ultimate termini, is a malady afflicting the system. During this long interval many many events are bound to take place which might happen in relation to the parties as well as the subject-matter of the lis. If the cause of action is to be submerged in such subsequent events on account of the malady of the system, it shatters the confidence of the litigant, despite the impairment already caused.

    11. The above position in law was highlighted in Gaya Prasad v. Pradeep Srivastava (2001) 2 SCC 604.

    12. One of the grounds for eviction contemplated by all the rent control legislations, which otherwise generally lean heavily in favour of the tenants, is the need of the owner landlord to have his own premises, residential or non-residential, for his own use or his own occupation. The expressions employed by different legislations may vary such as “bona fide requirement”, “genuine need”, “requires reasonably and in good faith”, and so on. Whatever be the expression employed, the underlying legislative intent is one and that has been demonstrated in several judicial pronouncements of which we would like to refer to only three.

    13. In Ram Dass v. Ishwar Chander (1988) 3 SCC 131 M.N Venkatachaliah, J. (as His Lordship then was) speaking for the three-Judge Bench, said:

    “11. Statutes enacted to afford protection to tenants from eviction on the basis of contractual rights of the parties make the resumption of possession by the landlord subject to the satisfaction of certain statutory conditions. One of them is the bona fide requirement of the landlord, variously described in the statutes as ‘bona fide requirement’, ‘reasonable requirement’, ‘bona fide and reasonable requirement’ or, as in the case of the present statute, merely referred to as ‘landlord requires for his own use’. But the essential idea basic to all such cases is that the need of the landlord should be genuine and honest, conceived in good faith; and that, further, the court must also consider it reasonable to gratify that need. Landlord's desire for possession however honest it might otherwise be, has inevitably a subjective element in it and that, that desire, to become a ‘requirement’ in law must have the objective element of a ‘need’. It must also be such that the court considers it reasonable and therefore, eligible to be gratified. In doing so, the court must take all relevant circumstances into consideration so that the protection afforded by law to the tenant is not rendered merely illusory or whittled down.”

    14. In Gulabbai v. Nalin Narsi Vohra (1991) 3 SCC 483 reiterating the view taken in Bega Begum v. Abdul Ahad Khan (1979) 1 SCC 273 it was held that the words “reasonable requirement” undoubtedly postulate that there must be an element of need as opposed to a mere desire or wish. The distinction between desire and need should doubtless be kept in mind but not so as to make even the genuine need as nothing but a desire.

    15. Recently, in Shiv Sarup Gupta v. Dr. Mahesh Chand Gupta (1999) 6 SCC 222 this Court in a detailed judgment, dealing with this aspect, analysed the concept of bona fide requirement and said that the requirement in the sense of felt need which is an outcome of a sincere, honest desire, in contradistinction with a mere pretence or pretext to evict a tenant refers to a state of mind prevailing with the landlord. The only way of peeping into the mind of the landlord is an exercise undertaken by the judge of facts by placing himself in the armchair of the landlord and then posing a question to himself — whether in the given facts, substantiated by the landlord, the need to occupy the premises can be said to be natural, real, sincere, honest. If the answer be in the positive, the need is bona fide. We do not think that we can usefully add anything to the exposition of law of requirement for self-occupation than what has been already stated in the three precedents.

    16. The above position has remained unaffected in Atma S. Berar v. Mukhtiar Singh (2003) 2 SCC 3.

    17. In the background of the factual position one thing which clearly emerges is that the High Court had considered the subsequent events which the appellants highlighted and tend to hold that the bona fide need continues to subsist. As observed in Hasmat Rai case (1981) 3 SCC 103 the appellate court is required to examine, evaluate and adjudicate the subsequent events and their effect. This has been done in the instant case. That factual finding does not suffer from any infirmity. What the appellants have highlighted as subsequent events fall within the realm of possibility or probability of non-return and not a certainty, which is necessary to be established to show that the need has been eclipsed.

    18. At this juncture it would be appropriate to take note of Section 17 of the Act. Same deals with consequences which statutorily follow if there is deviation from the purposes for which possession has been recovered. If in the instant case such contingency arises, the respondents shall redeliver possession to the appellant tenants on such terms as the Rent Controlling Authority shall fix.

    19. Learned counsel for the appellants submitted that considering the long period of tenancy a reasonable time should be granted to the appellant to vacate the premises.

    20. Learned counsel for the respondents submitted that the High Court has granted time till the end of August 2002 and by order dated 9-8-2002 status quo regarding possession was directed to be maintained. Undisputedly, the tenants are in occupation of the tenanted premises.

    21. Considering the fact that the tenants have been occupying the premises for nearly two decades, in our considered view the time granted by the High Court can be extended till the end of 2005. The period of tenancy is extended till the aforesaid date subject to the appellants' filing the requisite undertaking before the trial court and continuing to make payment of rents due within the stipulated time. Arrears, if any, shall be paid to the respondents within the period of two months from today.

    22. The appeal stands dismissed subject to the aforesaid directions with no order as to costs.

    Use AI to get other relevant cases.

    Comments

    Pratap Rai Tanwani And Another v. Uttam Chand And Another
    (Sep 8, 2004)