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Shashi Kant Jain Petitioner v. Tilak Raj Salooja & Anr. S

Delhi High Court
May 1, 2012
Smart Summary (Beta)

Structured Summary of the Opinion (Indermeet Kaur, J.)

Factual and Procedural Background

This opinion addresses an appeal/challenge to an impugned judgment dated 03.04.2010. The underlying eviction petition was filed by landlord Tilak Raj Salooja against tenant Shashi Kant Jain under Section 14(1)(e) of the Delhi Rent Control Act (DRCA) concerning a ground-floor shop at No. E-175, Kamla Nagar, Delhi-110007. The trial court decreed the eviction petition and declined the tenant's application for leave to defend.

The landlord's case was that the shop was required bona fide to run a readymade garment outlet by the petitioners (landlords). The petitioners alleged medical difficulties (blood pressure and a prostate problem) and that petitioner No.1 had resigned as director of M/s Salooja Brothers Pvt. Ltd., necessitating a local business the petitioners could operate without travel. The petitioners stated they had no other reasonable suitable commercial accommodation; the premises is a front shop in a commercially viable market (Kamla Nagar). The property and its occupancy by other tenants (including a dental clinic, a chartered accountant, and other commercial tenants) were described in the eviction petition.

The tenant filed an application for leave to defend (challenging the eviction petition). The tenant alleged the eviction petition was malafide, asserting the petitioners were elderly and infirm and that the resignation from the company was a contrivance to fabricate a ground for eviction. The tenant also sought by an application under Section 151 CPC to place on record an arbitral Award dated 11.03.2008 (in proceedings between the landlord and another tenant, Rakesh Gulati) which allegedly handed back two shops to the landlord; the tenant argued that this was a material fact that should prevent grant of leave to defend.

The landlord responded that the Award of 11.03.2008 did not effect immediate physical possession and that, per the tenant's own averments, physical possession of the two shops was handed over to the landlord only in May 2010 — after the eviction petition (filed 29.01.2009) — so the Award could not have been concealed at the time of filing the eviction petition.

Legal Issues Presented

  1. Whether the arbitral Award dated 11.03.2008 and related facts could be taken on record in the eviction proceedings (i.e., whether subsequent events during the pendency of the eviction petition or earlier events may be relied upon to deny leave to defend).
  2. Whether the tenant's application for leave to defend disclosed a triable or prima facie case disentitling the landlord from obtaining an eviction decree under Section 14(1)(e) DRCA.
  3. Whether the landlord had established bona fide requirement for the disputed premises sufficient to support eviction under Section 14(1)(e) and the summary procedure under Section 25-B of the DRCA.
  4. Whether the procedural requirements of Section 25-B (including the 15-day mandatory period to seek leave to defend) were complied with and their consequences for the order of eviction.

Arguments of the Parties

Landlord's (Petitioners') Arguments

  • The premises (front shop) are required bona fide by the petitioners to open and run a readymade garment outlet; the location is commercially viable.
  • Petitioner No.1 suffers from medical conditions (blood pressure and prostate problem) and resigned as director of M/s Salooja Brothers Pvt. Ltd.; because he cannot travel, he wishes to run a local business from the shop.
  • The petitioners own the property and have no other reasonable suitable accommodation for carrying out this business.
  • The tenant's allegation of concealment of the arbitral Award is without merit because, according to the landlord, physical vacant possession of the two shops mentioned in the Award was handed over only in May 2010 (after the eviction petition filed on 29.01.2009) — therefore it could not have been a material fact concealed at the time of filing.
  • Denials in the reply: it is denied that petitioner carried on surgical instruments business (it was scientific instruments), and it is denied that the resignation from the company was effected to create a malafide ground for eviction.

Tenant's (Respondent's) Arguments

  • The eviction petition is malafide: petitioners are elderly (petitioner No.1 aged 78, petitioner No.2 aged 70) and infirm and therefore incapable of running a business; resignation from the company was a contrivance to manufacture a ground for eviction.
  • Petitioner No.1 has been active in business (allegation of being an active director), contradicting the claimed inability to run a business; alternatively, the resignation timing (June 2009) indicates ulterior motive.
  • The tenant sought to place on record by Section 151 CPC an arbitral Award dated 11.03.2008 in which two shops occupied by another tenant had been handed back to the landlord; the tenant argued subsequent events during the pendency of an eviction petition that materially affect facts should be considered (relying on Mohan Lal v. Tirath Ram Chopra).
  • The tenant contended that the landlord had concealed a material fact (the Award) from the eviction petition pleadings and so should not be favored with leave to defend being denied on routine grounds.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mohan Lal v. Tirath Ram Chopra & Another, 22 (1982) DLT 1 The proposition that subsequent events which take place during the pendency of an eviction petition and which have a material bearing on the facts may, in the facts of each case, be considered. The Court accepted the general proposition but held it did not assist the tenant because the Award dated 11.03.2008 was an event prior in time to the filing of the eviction petition (29.01.2009) and therefore could not be taken on record as a subsequent event in the eviction petition proceedings.
Prativa Devi (Smt) v. T.V. Krishnan, (1996) 5 SCC 353 Statement that "The landlord is the best judge of his residential requirement" and that courts should not dictate to the landlord how he should live or prescribe residential standards. The Court cited this authority to underscore the deference given to a landlord's stated requirement (applied in context to support the landlord's claim of bona fide need for the premises).
Precision Steel & Engineering Works v. Prem Devi Niranjan Deva Tayal, (1982) 3 SCC 270 That leave to contest should be granted to the tenant only where a prima facie case has been disclosed by him; absent such disclosure, leave should not be mechanically granted. The Court applied this principle to hold that the tenant had not disclosed a triable prima facie issue to disentitle the landlord from eviction; therefore leave to defend was rightly refused and the decree sustained.

Court's Reasoning and Analysis

The Court undertook a step-by-step analysis grounded in the pleadings, the procedural statute (DRCA) and the authorities cited:

  1. On the Section 151 CPC application to place the arbitral Award (11.03.2008) on record, the Court examined the timing: the eviction petition was filed on 29.01.2009. The Court distinguished events that occur prior to filing from those occurring during the pendency of the eviction petition. The Mohan Lal authority permits consideration of subsequent events during pendency, but the Court held the Award dated 11.03.2008 was prior in time and could not be treated as a subsequent event to defeat the pleadings in an eviction petition filed in January 2009.
  2. The Court considered the tenant's contention that the landlord had concealed the Award. The landlord's reply and the tenant's own averments (para 6 of tenant's application) showed that physical vacant possession of the two shops was handed over to the landlord only in May 2010. Therefore, the Court concluded there was no concealment of a material fact at the time of filing (January 2009).
  3. The Court examined the substantive claim of bona fide requirement. It noted the petitioners' averments: ages (78 and 70), medical conditions, resignation from directorship, and that the shop is a front shop in a commercially viable market with no other suitable accommodation. The tenant's contradictory averments (asserting both that petitioner No.1 was active and also too infirm to run a business) undermined the tenant's challenge to bona fides.
  4. The Court treated Section 25-B of the DRCA as a summary, mandatory procedure for the class of landlords including those invoking Section 14(1)(e). It recalled that under Section 25-B the defendant/tenant must file application for leave to defend within 15 days after service, and that in the absence of a valid leave to defend, the eviction petition is liable to be decreed.
  5. Drawing on Precision Steel, the Court applied the principle that leave to contest is only to be granted where a prima facie triable issue is disclosed. Finding no triable issue and no material concealment, and observing that the trial court had also considered ownership and found no dispute, the Court concluded that no triable issue arises.
  6. On procedural and substantive grounds, therefore, the impugned order (decreeing the eviction petition and dismissing leave to defend) was found to suffer from no infirmity.

Holding and Implications

Holding: The Court affirmed the impugned decision. The opinion states that the impugned order decreeing the petition and dismissing the leave to defend application filed by the tenant "suffers from no infirmity." The Court dismissed the tenant's challenge and found the eviction petition to be without merit.

DIRECT EFFECT ON THE PARTIES: The eviction decree in favour of the landlord stands and the tenant's application for leave to defend was rightly dismissed; the tenant's contentions of malafide and concealment did not establish a triable issue.

IMPLICATIONS: The opinion did not set a new legal precedent; it applied existing authorities (Prativa Devi and Precision Steel) and statutory provision Section 25-B DRCA to the facts. No broader or novel principle beyond the application of those authorities and the statutory scheme was articulated by the Court in this opinion.


End of summary based exclusively on the provided opinion.

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INDERMEET KAUR, J. (Oral)

1. Impugned judgment is dated 03.04.2010; eviction petition filed by the landlord Tilak Raj Salooja against his tenant Shashi Kant Jain seeking his eviction under Section 14(1)(e) of the Delhi Rent Control Act (DRCA) from the disputed premises i.e the shop located on the ground floor of property bearing No. E-175, Kamla Nagar, Delhi-110007 had been decreed; the application filed by the tenant seeking leave to defend had been declined.

2. Record shows that the present eviction petition has been filed by the landlord on the ground of bonafide requirement; premises comprising of a shop had been let out to the tenant from where he is running a readymade garment store under the name and style of ‘M/s Sheetal Readymade’; monthly rent was Rs. 293/- exclusive of electricity charges. Contention in the eviction petition is that the premises are required bonafide by the petitioners for running a business by petitioner No. 1; petitioner No. 1 has a medical problem and because of blood pressure and a prostate problem, he is unable to travel; in these circumstance, he was forced to resign as a director of ‘M/s Saluja Brothers Pvt. Ltd’ where he was earlier working as a director. Both the petitioners wish to open a readymade garment outlet and the aforenoted disputed shop is accordingly required by them for the aforenoted purpose; contention being that this shop is located at the main front side of the property and is a commercially viable venture for running the aforenoted business. Further contention is that the petitioners are the owners of this property; they have no other reasonable suitable accommodation from where they can carry out this business; details of the other tenants who are occupying the front portion of the ground have been given in para 5 of the eviction petition. It is contended that this property comprises of three floors; the mezzanine floor consists of two rooms one of which has been let out to Salooja Brothers Pvt. Ltd. and other has been rented out to Dr. Neha Bhargava who is running a dental clinic. The first floor has also been rented out to a Chartered accountant and the back portion of the first floor is under the tenancy of ‘M/s Study Overseas India Pvt. Ltd.’ i.e a centre who helps students to be suitably selected for higher education. The second and third floors are being used for residential purpose and are presently in occupation of the present petitioners. Eviction petition has accordingly been filed.

3. Leave to defend has been filed wherein the main bone of contention which has been raised and urged by the petitioner is that the petition has been malafide; petitioner No. 1 is 78 years of age and has himself admitted that he is suffering from blood pressure and a prostate problem; petitioner No. 2 is also 70 years of age and they both are not in a medical state to carry out any business; further contention being that the submission of the petitioner that he has resigned as director from M/s Salooja Brothers was in June, 2009; this is a company of the petitioners themselves where petitioner No. 1 takes active part in the business and this resignation has been effected only as an ulterior purpose in order that a ground of eviction can be made out for filing the present petition. Further contention is that petitioner No. 1 is doing surgical business for the last several years and he has no intention to start any readymade garment business. Petition has been filed malafide.

4. Corresponding paras of the reply to the application seeking leave to defend have been perused. There has been a categorical denial; it is denied that the petitioner has ever carried out the business of surgical instruments; it was a business of scientific instruments; it was denied that petitioner No. 1 has deliberately resigned from Salooja Brothers Pvt. Ltd. in order to create a malafide ground for eviction; averments made in the application seeking leave to defend have been reiterated.

5. The first argument urged before this Court is that during the pendency of this petition, certain additional facts have come to the knowledge of the tenant which are material and if these facts are taken on record, leave to defend would automatically be granted in favour of the tenant. This additional information has been incorporated by way of an application filed by the present petitioner in the proceeding before this Court under Section 151 of the Code of Civil Procedure (hereinafter referred to as the ‘Code’). Averments made in this application have been perused. Contention of the petitioner is that on 11.03.2008, the sole Arbitrator had passed an Award inter-se proceedings between the landlord and Rakesh Gulati (another tenant on the ground floor) whereby the two shops which are in occupation of Rakesh Gulati have been handed back to the landlord; this Award was passed on 11.03.2008; meaning thereby that on the date of filing the eviction petition i.e on 29.01.2009, this fact was well known to the landlord but for reasons best known to him, he has deliberately concealed this material fact; contention being that a person must come to the Court with honesty and he has concealed the fact which has a material bearing on the issue in controversy, such a litigant deservers no sympathy and in such an eventuality the Court should not mechanically and in a routine manner grant leave to defend in favour of the tenant.

6. Reply to this application has been perused. The contention of the landlord is that the premises which were two shops at the backside of the disputed property were admittedly in occupation of Rakesh Gulati; the Award passed by the sole Arbitrator dated 11.03.2008 has not been disputed; contention is that even as per the submission of the tenant these premises were handed over to the landlord only in May, 2010 and this is clear from the averments made in para 6 of the application.

7. This submission of the learned counsel for the petitioner has force. Para 6 of the application (filed by the tenant) shows that the vacant physical possession of the two shops were handed over to the landlord in May, 2010 from which date the said premises are allegedly lying vacant; admittedly the eviction petition was filed on 29.01.2009; as such the submission of the landlord that this was a material fact which was concealed by the petitioner at the time of filing the present eviction petition has no force as the possession of the aforenoted two shops was given to the landlord only in May, 2010 and as such rightly could not form a part of the pleadings in the eviction petition filed in January, 2009; the submission of the tenant that there has been concealment of fact by the landlord thus has no force.

8. Learned counsel for the petitioner/tenant has relied upon the judgment reported in 22 (1982) DLT 1 Mohan Lal… v. Tirath Ram Chopra & Another…. Chopra; contention being that the subsequent events which take place during the pendency of the eviction petition and which have a material bearing on the facts of the case can be taken on record even in proceedings under Section 14(1)(e) of the DRCA. There is no dispute to this proposition; there is a classification of subsequent events; the events which have happened prior to filing of the eviction petition and events which take place during the pendency of the eviction petition. This is an event which is dated 11.03.2008 (which is the date of passing of the Award by the sole Arbitrator); this event thus clearly is not an event which had taken place during the pendency of the eviction petition; it was an event prior in time. The judgment relied upon by the learned counsel for the tenant in this factual scenario would not come to his aid as the ratio of this judgment is that as the so called subsequent events which have happened during the pendency of the eviction petition may in the facts of each case be considered. The Award of 11.03.2008 is admittedly prior in time to the eviction petition and cannot be permitted to be taken on record.

9. Section 25-B of the DRCA is a summary procedure which has been engrafted for a special class of landlords which includes landlords who have filed a petition under Section 14(1)(e) of the DRCA; it specifically postulates that after the defendant/tenant has been served, he has to file his application seeking leave to defend within a span of 15 days; this is a mandatory requirement; in the absence of leave to defend, the eviction petition is liable to be decreed in favour of the landlord.

10. The alternate submission of the learned counsel for the petitioner is predicated on the merits of the case; contention being that the bonafide requirement of the petitioner has not been established. This submission of the petitioner is also without any force. Petitioner No. 1 has averred that he is 78 years of age; his wife petitioner No. 2 is 70 years of age; they both wish to start a readymade garment store; the present premises from where a readymade garment store is already being run is in a highly commercially viable area; it is a front shop in Kamla Nagar market; the petitioners have admittedly no other commercial space from where they can carry out the aforenoted business; the submission of the tenant that petitioner No. 1 is aged 78 years and petitioner No. 2 is aged 70 years and cannot run an active business is contradicted by his own submission wherein in one part of his application seeking leave to defend averment is that petitioner No. 1 is an active director and takes active part in the business of the company ‘M/s Salooja Brothers Pvt. Ltd’; whereas in the later part of his application his averment is that both the petitioners being of an old age and suffering from blood pressure and other related ailments cannot do an active business.

11. Be that as it may, the submission of the learned counsel for the petitioners that petitioner No. 1 had resigned from the directorship of Salooja Brothers Pvt. Ltd. which requires a lot of travel is a factum which remains undisputed and the mere bald submission of the tenant on this count would have no weight against the statement made by the director on affidavit that he is no longer a director of the aforenoted company. The fact that the petitioners have no other reasonable suitable accommodation is also not in dispute; this is a front side shop and at the cost of repetition, the present shop would be a profitable business proposal to start a retail garment store as is the contention and the ground made out in the eviction petition.

12. The Supreme Court in Prativa Devi (Smt) v. T.V Krishnan(1996) 5 SCC 353 had held in this context inter alia noted as:-

“The landlord is the best judge of his residential requirement. He has a complete freedom in the matter. It is no concern of the courts to dictate to the landlord how, and in what manner, he should live or to prescribe for him a residential standard of their own.”

13. In (1982) 3 SCC 270Precision Steel & Engineering Works v. Prem Devi Niranjan Deva Tayal the Apex Court had noted that the prayer for leave to contest should be granted to the tenant only where a prima-facie case has been disclosed by him. In the absence of the tenant having disclosed a prima-facie case i.e such facts as to what disentitles the landlord from obtaining an order of eviction, the Court should not mechanically and in routine manner grant leave to defend.

14. Unless and until a triable issue has arisen leave to defend cannot be granted; if this is done the very purpose and import of the Section 25-B of the DRCA will be given a go by; which was not the intent of the legislature.

15. No other argument has been urged.

16. Record shows that the trial Court has also answered the argument propounded before it on the concept of ownership which has not been disputed before this Court. On no count, does any triable issue arise.

17. In this background impugned order decreeing the petition and dismissing the leave to defend application filed by the tenant suffers from no infirmity. Petition is without any merit. Dismissed.