Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Section 25-B(8) of the Delhi Rent Control Act, 1958 (hereinafter referred to as 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
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Section 25-B(8) of the Delhi Rent Control Act, 1958 (hereinafter referred to as the Act)
Smart Summary

Factual and Procedural Background

This is a revision petition filed under Section 25-B(8) of the Delhi Rent Control Act, 1958 challenging the judgment of the Additional Rent Controller dated 26.2.2014. The impugned judgment had decreed an eviction petition based on bona fide necessity with respect to premises described as C-1 (old property no. 285), Basai Dara Pur, Sharda Puri, Ring Road, New Delhi — comprising two rooms and one small room (shown in the site plan Ex. PW-1/2). The eviction petition was decreed after trial in the Rent Controller's court.

The respondent (landlady) sought possession for commercial use so that her son, Vaibhav Maheshwari — an MBA who completed his degree in June 2011 — could start a sanitary and hardware business at the tenanted premises, which the court found to be situated in a valuable marble market area (Raja Garden / Rajouri Garden) and therefore commercially suitable. The tenant contested the bona fide necessity, advancing that various alternative properties belonging to the landlady's husband or the family company (M/s Jaishree Granites Pvt. Ltd.) were available for the son's business. The Additional Rent Controller decreed eviction after trial; the tenant filed this revision petition seeking interference with that decree.

Legal Issues Presented

  1. Whether the eviction petition based on bona fide necessity filed by the landlady for use by her son to commence a sanitary and hardware business should be allowed.
  2. Whether alleged alternative premises (various properties owned by the husband or the family company) were available and suitable alternatives which would defeat the bona fide necessity claim.
  3. Whether the fact that the son was a Director in the family company (M/s Jaishree Granites Pvt. Ltd.) negated the bonafides of the eviction petition or precluded him from starting an independent business.
  4. Whether typographical/clerical entries (e.g., the addition of alphabet "B" in income tax returns) or asserted ownership by the landlady of particular properties (notably property no. 285-B) undermined the landlord's claim of bona fide necessity.

Arguments of the Parties

Petitioner's (Tenant's) Arguments

  • The tenant argued that several alternative properties were available for the respondent's son to carry on business, and therefore there was no bona fide need to evict: specifically properties listed as 285-B (Sharda Puri), A-2/53 W.H.S Kirti Nagar, properties nos. 43–46 Block A-1 Kirti Nagar (company properties), D-201 Mansarovar Garden, and D-12 Rajouri Garden (registered office of company).
  • The tenant contended that property no. 285-B appears in the landlady's Income Tax Returns and hence was effectively the landlady's property (implying she could not claim other premises as necessary).
  • With respect to D-201, the tenant argued ground-floor or other parts ought to be available and that letting parts to the brother-in-law of the husband amounted to depriving the son of alternative accommodation.
  • The tenant relied on admissions in cross-examination to assert availability of some premises (the petitioner pointed to ownership of certain properties by the husband/company as reasons they could be used instead of evicting the tenanted premises).

Respondent's (Landlady's) Arguments

  • The landlady sought the tenanted premises for her son Vaibhav Maheshwari to start a sanitary and hardware business; the son had completed his MBA and intended to begin a separate enterprise.
  • The landlady asserted that the tenanted premises are particularly suitable because they are on the main road and located in a valuable marble market, making them preferable for the proposed business compared to alleged alternatives.
  • The respondent maintained that several of the properties relied upon by the tenant were either not in market areas (company properties), already in use as godowns or retail outlets (and not lying vacant), or not owned in the way the tenant alleged. Thus they were not viable alternatives.
  • The landlady argued that the son's status as Director in the family company did not preclude him from starting an independent business and did not negate the bona fide necessity claim.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Anil Bajaj v. Vinod Ahuja, 2014 (6) SCALE 572 Principle that a landlord is entitled to choose a more suitable premises for carrying on the business of a family member and that a tenant cannot dictate from which shop the landlord's family member should start the business. The court invoked this ratio to hold that a very small shop in a side lane could not be considered an alternative suitable premises for commencing the sanitary and hardware business and thus rejected the tenant's reliance on that small shop as an available alternative.

Court's Reasoning and Analysis

The court proceeded by examining the factual matrix and the availability/suitability of each alleged alternative property relied upon by the tenant, applying legal principle and evidence from trial:

  1. Relationship and need: The court noted there was no dispute about the landlord-tenant relationship or the respondent's family composition; the core dispute concerned availability of alternative premises and the bona fides of the landlady's claim to evict for her son's business.
  2. Small side-lane shop: Relying on the Supreme Court ratio in Anil Bajaj v. Vinod Ahuja, the court held that the landlady can choose a premises suitable for her son's business and a tenant cannot dictate which shop must be used. The very small shop in the lane (not on the main road) was found unsuitable as an alternative, given the tenanted premises comprised three rooms and was on a main road in a valuable market.
  3. Son's directorship: The court rejected the contention that because the son was a Director in the family company and received a salary, he could not have a bona fide need to start an independent business. The court held there is no law preventing a family member from starting a new business, and being a director does not negate bonafide necessity.
  4. Company properties at Kirti Nagar (Block A-1, nos. 43–46): These were not in a market area suitable for the sanitary and hardware shop and were being used as godowns; moreover, the petitioner himself admitted in cross-examination that these properties were being used by the company and were not lying vacant. The court therefore rejected these as alternatives.
  5. Property no. 285-B: The court found this property was occupied and being used as a retail outlet for marble and granite by the husband, so it could not be commandeered for the son's business. The tenant's argument that a notation ("B") in the landlady's Income Tax Return showed ownership by the landlady was treated as a clerical/typing error and contradicted the tenant's own pleadings that the property belonged to the husband; thus that argument was rejected.
  6. Property no. A-2/53, Kirti Nagar: The respondent proved this belonged to her husband and was used as a godown for stock; no evidence was pointed out that it was vacant. Consequently, this property was not an available alternative.
  7. Property no. D-201, Mansarovar Garden: The court analyzed admissions in cross-examination showing that the first and second floors were in the occupation of the brother of the husband, and the petitioner himself only suggested the basement might be available. There was no positive evidence that the ground floor (which would be the suitable area for the proposed business) was owned by the husband. Given these ambiguities and admissions, the court found the ground floor was not available as an alternative.
  8. Overarching principle: Even assuming multiple properties existed, the landlord (and her son) could legitimately choose which premises were most suitable for commencing business; a tenant cannot compel that a particular alternate property be used in place of the tenanted premises.
  9. Conclusion of fact and law: After assessing evidence and applying the governing principle from Anil Bajaj, the court found no error in the Additional Rent Controller's exhaustive judgment decreeing bona fide necessity eviction. The revision petition had no merit.

Holding and Implications

Holding: The Court DISMISSED the revision petition and found no reason to interfere with the judgment of the Additional Rent Controller which decreed the eviction petition on the ground of bona fide necessity. The parties were left to bear their own costs.

Implications: The direct effect is that the eviction decree in favor of the respondent/landlady for occupation by her son to run a sanitary and hardware business is upheld. The opinion does not set out or advert to any broader precedent beyond applying the cited Supreme Court ratio (Anil Bajaj v. Vinod Ahuja) to the facts; accordingly, no new legal principle was announced in this judgment beyond the court's fact-specific application of existing law.

    Shri Bhupinder Singh Bawa Petitioner v. Smt. Asha Devi

    Valmiki J. Mehta, J. (ORAL)

    1. This revision petition is filed under Section 25-B(8) of the Delhi Rent Control Act, 1958 (hereinafter referred to as ‘the Act’) against the judgment of the Additional Rent Controller dated 26.2.2014 which has decreed bona fide necessity eviction petition with respect to property bearing no. C-1 (old property no. 285) Basai Dara Pur, Sharda Puri, Ring Road, New Delhi - 110015 comprising two rooms and one small room as shown in red colour in the site plan Ex. PW-1/2. The eviction petition has been decreed after trial.

    2. Respondent/landlady claimed the tenanted premises for commercial use for opening of the business of sanitary and hardware by her son Sh. Vaibhav Maheshwari who was pursuing MBA at the time of the filing of the eviction petition and completed the same in June, 2011 and who wanted to start his separate business. The tenanted premises is situated in the costly and precious marble market of Raja Garden, and therefore, the tenanted premises is in a very profitable area for the purpose of establishing the business of sanitary and hardware by the son of the respondent namely Sh. Vaibhav Maheshwari.

    3. There was no dispute as regards the relationship of landlord and tenant and also with respect to the number of family members of the respondent/landlady, and which is so noted in para 4 of the impugned judgment. The disputes were with respect to availability of various alternative premises for the son Sh. Vaibhav Maheshwari to carry on his business and which properties were said to belong to the husband of the respondent, the family company M/s Jaishree Granites Pvt. Ltd., and, one small shop in the lane in this very property belonging to the respondent/landlady. It was also pleaded that the son Sh. Vaibhav Maheshwari was a Director in the family company M/s. Jaishree Granites Pvt. Ltd. having a very nominal share and was getting a salary of Rs. 50,000/-, and therefore, he did not require the premises for starting his business.

    4. So far as the aspect that the small shop in the lane, not on the main road, which allegedly can be used for starting of the business, besides the fact that the shop is a very small shop and not as big as the tenanted premises which comprises of three rooms is concerned, it is perfectly open to the landlord to choose a more suitable premises for carrying on the business by her son and the landlady cannot be dictated by the tenant as to from which shop her son should start the business from. This is the ratio of the recent judgment of the Supreme Court in the case of Anil Bajaj v. Vinod Ahuja 2014 (6) SCALE 572. Therefore, the very small shop in the side lane cannot be said to be an alternative suitable premises available for commencing and carrying on the business of sanitary and hardware by the son of the respondent/landlady.

    5. So far as the aspect that the son is a Director in the family company M/s. Jaishree Granites Pvt. Ltd. is concerned, this cannot mean that as a young entrepreneur the son cannot start his own business of sanitary and hardware. It is not the law that if a family member of a landlord/landlady requires the premises for starting of the business of his/her young son who is an MBA, there can be lacking bonafides for the eviction petition and that the son must continue as a Director in the family company M/s. Jaishree Granites Pvt. Ltd. and not branch out as a young entrepreneur. There is no law that a family member of the landlady can be prevented from opening a new business. Therefore, merely because the son Sh. Vaibhav Maheshwari is presently a Director in the company M/s. Jaishree Granites Pvt. Ltd., the same cannot mean that there is no need of bonafide necessity of the tenanted premises for starting of a fresh business of sanitary and hardware by the son Sh. Vaibhav Maheshwari. The argument that the son Sh. Vaibhav Maheshwari is already a Director in the family company, and therefore, there is no bonafide need of the tenanted premises, is a misconceived argument and the same is therefore rejected.

    6. The following properties have been stated to be available to the son Sh. Vaibhav Maheshwari, and which properties are said to be properties owned by the husband of the respondent Sh. Shyam Sunder Maheshwari or the properties belong to the family company M/s. Jaishree Granites Pvt. Ltd.:-

    (i) Property no. 285-B, Sharda Puri, Ring Road, New Delhi which is belonging to the husband of the respondent Sh. Shyam Sunder Maheshwari.

    (ii) Property no. A-2/53, W.H.S, Kirti Nagar, New Delhi belonging to the husband of the respondent Sh. Shyam Sunder Maheshwari.

    (iii) Property nos. 43, 44, 45 and 46 situated, Block-A-1, W.H.S Kirti Nagar, New Delhi owned by the company M/s. Jaishree Granites Pvt. Ltd.

    (iv) Property no. D-201, Mansarovar Garden, New Delhi which is belonging to the husband of the respondent Sh. Shyam Sunder Maheshwari. (v) Property no. D-12, Rajouri Garden, Ring Road, New Delhi which is the registered office of the M/s. Jaishree Granites Pvt. Ltd.

    7. So far as the properties belonging to the company are concerned, surely, they not being in a market area cannot be said to be alternative suitable premises for carrying on the business of a shop of sanitary and hardware for which the tenanted premises on the main road are ideally suitable.

    8. So far as the property no. 285-B is concerned, the said property is not lying vacant and is being used as a retail outlet for marble and granite by the husband of the respondent/landlady. Once these premises are not vacant and are being used by the husband, Sh. Shyam Sunder Maheshwari for his business as a retail outlet for marble and granite, it cannot be argued that the husband must not use the said premises and vacate the same for opening of the shop by the son Sh. Vaibhav Maheshwari. A tenant cannot force the family member of a landlady to stop his business so that the tenant in the tenanted premises is not evicted. It is not the law that a petition for bona fide necessity does not lie because the husband of the landlady who is carrying on a business in a premises must stop that business, for a son who wants to open a new business, more so when the tenanted premises are more suitable being on the main road and in a valuable market. The argument, therefore, with respect to property bearing no. 285-B being alternative premises is rejected.

    9. At this stage, I would like to clear an aspect that the counsel for the petitioner has argued that this property no. 285-B is shown in the Income Tax Returns of the respondent/landlady as her property, and therefore, actually the property no. 285-B is owned by the respondent/landlady. This argument appeared to have some merits on the first blush, however, the argument really is only making mountain out of a molehill because the suit property no. 285-B in the Income Tax Returns of the respondent/landlady shows the rental incomes from the tenanted premises in her return, and the alphabet ‘B’ appearing after number 285 is wrongly written in the Income Tax Return of the respondent/landlady. In any case, the suit property no. 285-B belongs to the respondent/landlady is an argument which has no legs to stand upon because the case of the petitioner/tenant as per his own pleadings was that the property no. 285-B belongs not to the respondent/landlady but to her husband Sh. Shyam Sunder Maheshwari. Therefore, no capital can be made out of the typing errors in the income tax returns of the respondent/landlady of shop property bearing no. 285 being wrongly typed as 285-B. This argument of the petitioner is also therefore rejected.

    10. The next argument which was urged for existing of an alternative property was with respect to property no. A-2/53 at Kirti Nagar. In this regard, it has been proved by the respondent in her evidence that this property is owned by the husband of the respondent, and the same is not lying vacant inasmuch as the same is used by M/s. Jaishree Granites Pvt. Ltd. as godown for the stock of the marble and granite. I put it to the counsel for the petitioner to show me any averment made by the respondent that the premises no. A-2/53 is vacant and available to the son of the respondent for starting of the business, however, no deposition of the petitioner or any admission in the cross-examination of the respondent was pointed out that the property no. A-2/53 is lying vacant. Once the property no. A-2/53 is not lying vacant and is being used by the husband of the respondent for his business, this property cannot be alternative suitable property for dismissing of the bonafide necessity petition.

    11. So far as the properties in Block A-1 at Kirti Nagar are concerned, once it is admitted that these properties belong to the company, thereafter it cannot be argued by the petitioner that properties of the company even if it is a family company, are available for starting of the business more so because this property is not vacant and is already being used as a godown for marble. This aspect is specifically admitted in the cross-examination by RW-1 Sh. Bhupinder Singh Bawa, petitioner/tenant, conducted on 9.12.2013 This relevant admission of the petitioner herein appears in the second page of the cross examination dated 9.12.2013 from the first line to the fourth line. Therefore, once the properties at Block A-1 are being used by the company, and is not lying vacant, it cannot be urged that this property should be vacated by the company for opening of the business by the son of the respondent. Also, assuming that more than one properties are available for carrying on the business or opening of the business, a tenant cannot dictate which property will be more suitable inasmuch as property on a main road in a very valuable area such as the tenanted premises is a much better option for commencing of a new business. The argument of the petitioner, therefore, relying on the properties at Block A-1, Kirti Nagar is also misconceived and hence rejected.

    12. That takes us to the final argument and the final property bearing no. D-201, Mansarovar Garden, New Delhi. It was argued by the petitioner that the first floor of this property was let out by the husband of the respondent to the brother of the husband of the respondent and which should not have been let out because the same could have then been used for the business of the son of the respondent. This argument is misconceived for various reasons. Firstly, a property on a main road and on the ground floor is much more suitable for carrying on the business of sanitary and hardware, then as against a property which is situated on the the first floor of the property no. D-201 which is on tenancy with the brother of the husband of the respondent/landlady. During the course of the arguments, counsel for the petitioner sought to make out the case that the entire property including the ground floor of property no. D-201 was available, and therefore, the ground floor of the property no. D-201 is alternative suitable property. However, this stand of the petitioner is not correct because in the cross examination conducted of the petitioner as RW-1 on 9.12.2013, at page 2 of the cross examination, the petitioner has admitted that in the first floor and second floor of the property no. D-201, brother-in-law (Dever) of the respondent is carrying on his business. In fact, in this cross-examination at the end of the page 2 the petitioner only states that the son can carry on business from the basement of property no. D-201, and therefore, impliedly admitting that the husband of the respondent is not the owner of the ground floor of this property. Also, there is no positive statement in any deposition of the petitioner in the court below that the ground floor of property no. D-201 is owned by the husband of the respondent. No doubt, it is stated that the property no. D-201 is owned by the husband of the respondent, however, once it becomes clear that the ground floor is not specifically stated to be owned by the husband of the respondent, and only the basement is owned as per the specific admission made by the petitioner in the cross examination on 9.12.2013, I do not find any error in the conclusion of the Additional Rent Controller that there is no ground floor of the property no. D-201 which is owned by the husband of the respondent and from where the son of the respondent can start and carry on his business. Merely because there is some amount of confusion with respect to the ground floor which is not owned by the husband of the landlady, the same cannot mean that the petitioner can take any advantage of that, more so when the same is to be taken with the fact that it is always open to the landlady and her son to decide which premises are more suitable for commencing and carrying on business of sanitary and hardware.

    13. In view of the above, I do not find any reason to interfere with the detailed conclusion and exhaustive judgment of the Additional Rent Controller which has been passed after trial and whereby the eviction petition of bona fide necessity has been decreed. This petition is therefore without any merit and is accordingly dismissed, leaving the parties to bear their own costs.

    Use AI to get other relevant cases.

    Comments

    Shri Bhupinder Singh Bawa Petitioner v. Smt. Asha Devi
    (Jul 28, 2014)