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  • Rent Control) Act of 1980
  • Control) Act 1960.
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  • Rent Control) Act of 1980
  • Control) Act 1960.
Smart Summary

Factual and Procedural Background

These two connected writ petitions arise from the petitioner's attempt to demolish and reconstruct the first-floor portion of premises No. 33, Office Venkatachala Mudall Street, Triplicane, Madras. The petitioner is the owner and resides on the ground floor; the first floor is occupied by the second respondent, a Government allottee. The petitioner obtained municipal sanction for building alterations (plan No. P.2597/70 dated 28th July 1970) and applied to the Accommodation Controller (the first respondent / Authorised Officer) under S.12(1)(b) of the Tamil Nadu Buildings (Lease and Control) Act seeking delivery of possession and release of the first floor from the Act’s provisions to permit demolition and reconstruction.

The Accommodation Controller inspected the plan and the petitioner and issued a short, non-speaking order refusing the release and returning the sanctioned plan (quoted in the opinion as referring to B.A. 2597/70 dated 21st May 1970). The petitioner challenged that order in Writ Petition No. 4487 of 1970 seeking to quash it. A related petition, W.P. No. 4488 of 1970, sought a writ of mandamus directing the first respondent to dispose of a separate application dated 2nd September 1970 for release under S.12.

Legal Issues Presented

  1. Whether the Accommodation Controller's non-speaking order refusing release under S.12(1)(b) of the Tamil Nadu Buildings (Lease and Control) Act is legally sustainable when no reasons are stated.
  2. Whether the proposed work (including removal and substitution of the roof, change in cubic content and walls) as shown in the sanctioned plan amounts to demolition and reconstruction of the building for purposes of S.12(1)(b).
  3. What standard (including the role of "bona fide") the Authorised Officer must apply when deciding applications under S.12(1)(b), particularly where the tenant is a Government allottee.

Arguments of the Parties

Petitioner's Arguments

  • The proposed works are not mere repairs or alterations but amount to demolition and reconstruction: cubic content will be increased, walls changed, and the roof will be replaced (tiled roof to Madras terrace roofing), resulting in loss of the original building's identity.
  • The Accommodation Controller, as a quasi-judicial tribunal dealing with parties' rights, ought to have given demonstrable reasons for rejecting the application rather than passing a non-speaking order.
  • Where demolition and reconstruction are genuinely intended, the appropriate authority ought to grant release under S.12(1)(b); reliance was placed on V.P. Selvaraj v. V. Narasimha Rao and Ramachandra v. Kasim Khaleeli to support the contention that roof removal and substitution can amount to demolition.

Respondent / Government Pleader's Arguments

  • Admitted the order was non-speaking, but contended that it should be presumed the Accommodation Controller assessed the bona fides of the petitioner's request and was not satisfied; on that ground the order should be sustained.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
V.P. Selvaraj v. V. Narasimha Rao Interpretation of "bona fide" in S.14(1)(b) (and S.16) — the bona fide requirement must be weighed in context; where landlord's claim is not per se dishonest and not oblique, eviction follows subject to other conditions. The safeguard under S.16 reduces the need for microscopic scrutiny of subjective bona fides under S.14(1)(b). The court held the ratio of this decision should guide the Authorised Officer when dealing with S.12(1)(b) applications and used its principles to reason that verification should focus on whether the alteration objectively amounts to demolition, rather than an intrusive subjective inquiry into bona fides.
Ramachandra v. Kasim Khaleeli The removal of the roof of a building and erection of another roof in its place can amount to demolition; demolition need not be total for the term to apply. The court relied on this authority to support the factual conclusion that replacing the roof and effecting material structural changes, as shown in the sanctioned plan, constitute demolition (and hence reconstruction) for purposes of the relevant statutory provision.
Travancore Rayons v. Union of India When judicial power is exercised by an authority normally performing executive or administrative functions, the authority must disclose reasons for its order: (1) to permit higher courts to review the reasons for error, and (2) to deter arbitrary action by executive authorities vested with judicial power. The court applied this principle to conclude that the Accommodation Controller's non-speaking order was legally deficient and that a writ should succeed where no demonstrable reasons were given.

Court's Reasoning and Analysis

The court proceeded in two linked phases: procedural review of the Accommodation Controller's order and substantive analysis of whether the proposed works amounted to demolition and reconstruction.

Procedural analysis:

  • The court emphasised the duty of quasi-judicial tribunals to give demonstrable reasons for decisions affecting parties' rights so that higher authorities can understand and scrutinise the rationale. The court described non-speaking orders that afford no reasoning as unacceptable, citing the Supreme Court in Travancore Rayons v. Union of India to support the requirement of disclosure of reasons.
  • Because the first respondent gave no reasons whatsoever for rejecting the petitioner's application, the court found procedural infirmity sufficient to allow the writ petition challenging that order to succeed.

Substantive analysis:

  • The court examined the sanctioned plan and found material structural changes: increase/alteration of cubic content, changes to walls, and removal and substitution of the roof. It held that removal of the roof followed by substitution and alteration of enclosed space demonstrates demolition followed by reconstruction.
  • The court applied reasoning drawn from V.P. Selvaraj v. V. Narasimha Rao to S.12(1)(b): the conjunction of a landlord's bona fide claim and the objective fact of erecting a new building should be considered in a manner similar to S.14(1)(b); S.12(1)(b) requires that the Authorised Officer be satisfied that the building is bona fide required for demolition and erection of a new building. The court stressed that this satisfaction involves verifying whether the planned alterations objectively amount to demolition.
  • The court relied on Ramachandra v. Kasim Khaleeli to reinforce that demolition need not be total and that roof removal and substitution may amount to demolition. Applying these principles to the sanctioned plan, the court concluded the proposed works amounted to demolition and reconstruction.
  • The court found that the first respondent failed to consider these aspects of law and fact before issuing a summary, non-speaking rejection, and thus justice was not rendered to the petitioner.

Holding and Implications

Holding: Rule nisi in Writ Petition No. 4487 of 1970 is made absolute. The court quashed the Accommodation Controller's non-speaking order refusing release under S.12(1)(b) in that petition on the combined grounds that (a) the order contained no demonstrable reasons and (b) on the merits the sanctioned plan disclosed works amounting to demolition and reconstruction.

In W.P. No. 4488 of 1970 the court did not make the rule absolute but issued a direction: the first respondent is ordered to dispose of the petitioner's application dated 2nd September 1970 for release under S.12 within six weeks from the date of the judgment, taking into account the principles discussed and the observations made in W.P. No. 4487 of 1970.

Implications:

  • Direct effect on the parties: The petitioner's challenge to the non-speaking order in W.P. No. 4487 succeeded and that order was quashed; in the related petition the Accommodation Controller must decide the pending S.12 application within six weeks in accordance with the legal principles articulated by the court.
  • No broader new precedent announced: The court applied existing authorities (Travancore Rayons, V.P. Selvaraj, Ramachandra) to the facts and procedural posture of these petitions. The opinion does not state that it is establishing a novel legal principle beyond applying and synthesising those precedents.

Disposition as to costs: There will be no order as to costs in both writ petitions.

V.C.S

    M. Pattabiraman v. The Accommadation Controller Madras, And Another.

    These two writ petitions are connected. The petitioner is the owner of promises No. 33 Office Venkatachala Mudall Street Tripilane, Madras. He is living in the ground floor of the premises and the first floor is in the occupation of the second respondent, who is a Government allottee, The portion in the occupation of the second respondent consists of shall, verandah kudam, living room, bed room, etc. The petitioner with the intention of demolishing the first floor and resonstructing it has sought for permission from the Corporation of Madras to effect such alterations and ultimately obtained sanction therefor under building plan No. P. 2597 of 1970 dated 28th July 1970, But, as the second respondent was an allotten of the premises through the Government, the petitioner applied to the first respondent for delivery of possession of the same and effectively asked for a release of the first floor from the previsions of the Tamil Nadu Buildings (Lease and Control) Act 1960. In fact, the application was made under S. 12(1)(b) of the Act, The Accommodation Controller is said to have inspected plan and enquired the petitioner and ultimately was of the view that the petitioner's request for release could not be granted. The order of the first respondent reads thus;

    “With reference to year petition cited, you are informed that your request for release of the premises under S. 12(1)(b) of the Act has not been complied with, the Corporation sanctioned plan bearing No. B.A 2597/70 dated 21st May 1970 is returned herewith”.

    The petitioner is aggrieved as against the said order of the 1st respondent and has come up to this court to quash the same. The case of the petitioner is that as the repairs to be undertaken by the petitioner are not to be barely characterised as repairs and alterations, but would tantamennt to a demolition of a portion of the building and reconstruction of the same resulting in the identity of the original building being lost and instead a new building being set up. It is urged that the cubica contents of the room also get enhanced and the reefing will be completely changed from tiled reefing to Madras terrace roofing and the real purpose of the proposed alterations are effectively for demolishing and reconstructing the building and not with any other oblique purposes. Many contentions were raised by the petitioner in support of his application for the rule amongast which the main contentions are as follows. The first respondent who is dealing with rights of parties and who is indeed a quasi-judicial tribunal ought to have given reasons for rejecting the petition of the petitioner and ought not to have summarily rejected the same without making it known to others including this court as to what prompted him to reject the application. The second objection which is formidable on facts is that on a casual inspection of the sanctioned plan and the nature of the alterations contemplated, the work to be undertaken by the petitioner is to demolish and reconstruct a building which includes a part of the building under the Act and that therefore the first respondent has no option in such cases except to grant the request, as a private tenant placed under such similar circumstances has practically no remedy in law if such an application filed for eviction before the appropriate authority is bona fide and not oblique. Reliance is placed on V.P. Selvaraj v. V. Narasimha Rao(1). Reference is also made to the decision in Ramachandra v. Kasim Khaleeli(2) for the proposition that the removing of roof of a building and putting up another roof in substitution thereof amounts to demolition of the building. Learned Government Pleader would state that, no doubt, the order is non-speaking, but, in the circumstances it should be presumed that the first respondent went into the question of bona fide as well and the order has to be sustained on the ground that the Accommodation Controller was not satisfied about the bona fide of the requisition.

    I am unable to agree with the contention of the learned Government Pleader. In a case where quasi-judicial tribunals adjudicate upon rights of parties after hearing them it is but elementary that they should give demonstrable reasons so that when it is scrutinised by any one in the higher hierarchy exercising visitorial powers he should be in a position to appreciate as to what was the real reason behind the order impugned or pasted. It is now well settled that such judicial authorities ought not to lightly reject petitions by passing a non-Speaking order which is totally benefit of any reasoning. Such reasons ought to form part and parcel of the order itself so that the order could be demonstrated to be one which is sustainable or otherwise by the superior court or authority when it has the occasion to refer to it and consider whether such an order is proper or regular. This view is accepted by the Supreme Court in one of its latest pronouncements in Travancore Rayons v. Union of India(3). The Supreme Court said:

    “When judicial power is exercised by an authority normally performing executive of administrative functions, the Supreme Court insists upon disclosure of reasons in support of the order on two grounds; one, that the party aggrieved in a proceeding before the High Court or the Supreme Court has the opportunity to demonstrate that the reasons which persuaded the authority to reject his case were erroneous, the other, that the obligation to record reasons operates as a deterrent against possible arbitrary action by the executive authority invested with the judicial power.”

    On the ground that the first respondent failed to give any satisfactory reasons and Indeed no reason at all to justify the challenged order, the writ petition should succeed.

    But as arguments have been addressed at length on the scops of what is demolition, it is necessary for me to consider the merits as well as the law on the subject. As already stated, the plan produced clearly makes out the situation that the first floor is sought to be interfered with materially and in many respects by the petitioner when he reconstructs the building in accordance with the sanctioned plan. The cubicle content of enclosed space is increased or altered, the walls are changed and above all the roof of the premises in removed and substituted by another. In a case where the roof of a premises is removed and is substituted and this is followed up by a variation of the space content of the quondam building, then undoubtedly the entire process involves not only demolition but also reconstruction. In such cases, where the landlord intends to demolish and reconstruct his premises and for that purpose seeks eviction of the tenant in occupation of the old building, this court in V.P. Selvaraj v. V. Narasimha Rao(4) observed after considering the import of S. 14(1)(b) and 16 which are the relevant sections to be noticed. “The quality and content of the expression bona fide appearing in the various sections of the Act and for purposes there enumrrated have to be weighed and construed in different lines under different circumstances having regard to the context in which the expression appears. In cases where the claim of the landlord is not per se dishonest and has not been found to be oblique or for any designed purpose to evict the tenant, then it follows that the petitioner is entitled to an order of eviction in the ordinary course, subject of course, to the other conditions prescribed by the Act being satisfied.” The court further observed that reading the two sections in conjunction with one another the real content of the word bona fide appearing in Sub-S. (1)(b) of S. 14 has to be understood in a limited sense. The safeguard provided under S. 16 acts as a pivot to tilt matters one way or the other and in effect a microscopic scrutiny into the subjective content of the expression bona fide appearing under S. 14(1)(b) becomes absolutely unnecessary. These observations are apposite while considering the similar applications for release made by landlords in cases where the tenant is a Government allotted. As a matter of fact, S. 12 deals with recovery of possession by landlord for reconstruction of the building in respect of which the Government shall be deemed to be the tenant. S. 12(1)(b) provides that on an application made by the landlord in such circumstances the Authorised Officer if he is satisfied that the building is bona fide required by the landlord for the immediate purpose of demolishing it and such demolition is to be made for the purpose of erecting a new building on the site of the building sought to be demolished pass an order directing the allottee to deliver possession of the building to the landlord before a specified date. The conjunction in S. 12(1)(b) connecting the subjective content as to bona fides of the landlord and the objective reality of the erection of a new building need not create an impression that this sub-section is in any way far different from S. 14(1)(b). As a matter of fast, both the purport and the literature of both the sub-sections are almost the same. The ratio in V.P. Selvaraj v. V. Narasimha Rao, has to be borne in mind by the Authorised Officer while dealing with applications under S. 12(1)(b). If therefore, the landlord seeks for release of the building for the immediatee purpose of demolishing and reconstructing a building which includes a part of the building then factually he has to verify whether the alteration or the modification sought would amount to demolition. I have already expressed the view that the work to be undertaken by the petitioner is effectively to change the entire phase of the building, its cubicie content and Its size. More than anything else the roof is sought to be removed and substituted by another of a different variety altogether. Kaliasam J. in Ramachandra v. Kasim Khaleeli while considering the import of S. 14(1)(b) observed on the facts and particularly on the above aspect as follows:—

    “The contention of the learned counsel that the demolition intended, should be total, is not supported by any authority. In this case the roof of the premises that is in the occupation of the petitioner is to be demolished and a staircase put, retaining only the walls. This, in my opinion, would amount to demolition”.

    Afortiorari, in a case like the one before me where a material change is being effected in the structure and the identity and contents of the building, the work undertaken by the petitioner as disclosed in the sanctioned plan would certainly amount to demolition and reconstruction of the building. In this view of the matter justice has not been rendered to the petitioner since the first respondent did not consider all the aspects of law and facts arising in the application disposed of by him in such a summary fashion.

    On these grounds also the rule nisi is to be made absolute. Rule nisi in W.P No. 4487 of 1970 is made absolute.

    In W.P 4488 of 1970, a writ of Mandamus is sought directing the first respondent to dispose of the petitioner's application dated 2nd September, 1970 for release of the building under S. 12 of the Act. It is not necessary to make the rule absolute in the instant case. Instead, certain directions which would serve the purpose can be made. The first respondent is directed to dispose of the petitioner's application for release under S. 12 of the Tamil Nadu buildings (Lease and Rent Control) Act of 1980 within six weeks from this date bearing in mind the principles of law and taking into consideration the observations made by me in W.p 4487 of 1970. There will be no order as to costs in both the writ petitions.

    V.C.S

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    M. Pattabiraman v. The Accommadation Controller Madras, And Another.
    (Jun 24, 1971)