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Smart Summary

Factual and Procedural Background

The respondent-plaintiff is the owner of a building comprising eight shop rooms. One shop room was leased to the defendant on 14-11-1980 for three months at a monthly rent of Rs. 50. The plaintiff alleged that the defendant agreed to surrender possession without alterations upon termination of tenancy. However, the defendant enclosed the common verandah adjoining the shops with iron grills, erected wooden frames by boring walls and roof, and tampered with the flooring, contrary to the lease terms. The plaintiff filed suit for removal of these unauthorized structures. The trial court and the first appellate court decreed the suit in favor of the plaintiff. The defendant appealed by way of a second appeal.

Legal Issues Presented

  1. Whether the defendant-tenant made unauthorized constructions in violation of the lease terms and Section 108 of the Transfer of Property Act.
  2. Whether the Rent Control Act displaces the rights and obligations under the Transfer of Property Act concerning alterations by a tenant.
  3. Whether the precedent set in Viswanathan v. Porichu applies to the facts of this case regarding permissible alterations by a tenant.

Arguments of the Parties

Respondent-Plaintiff's Arguments

  • The defendant agreed not to effect any alterations upon termination of tenancy.
  • The defendant enclosed the common verandah with iron grills and made permanent structural alterations by boring walls and roof and tampering with flooring.
  • Such constructions were unauthorized and contrary to lease terms, warranting removal.

Defendant's Arguments

  • The front verandah formed part of the leased premises and the plaintiff permitted the use and enclosure with iron grills.
  • Other shop owners had made similar constructions.
  • The plaintiff was aware of and consented to the constructions, even directing workers.
  • No damage was caused to the flooring or building structure.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Viswanathan v. Porichu (1985 KLT 551) Tenant's replacement of wooden shutters with collapsible rolling shutters is not unauthorized construction under Section 108 of the Transfer of Property Act. The Court distinguished the present case from Viswanathan v. Porichu, holding that enclosing a common verandah by boring walls and roof is a permanent unauthorized construction, unlike the minor alteration in Viswanathan. Hence, the precedent was found inapplicable.

Court's Reasoning and Analysis

The Court analyzed the obligations of a lessee under Section 108(m) of the Transfer of Property Act, which requires restoration of the property in as good condition as at possession, barring reasonable wear and tear. While recognizing that the Rent Control Act curtails some lessor rights, it does not completely displace the Transfer of Property Act provisions.

The Court found that the defendant did not produce evidence that the lease permitted additional constructions. The nature of the defendant’s alterations was permanent, involving boring walls and roof to install iron grills enclosing the verandah, which was for common use. The defendant’s claim of similar constructions by others was unsupported by satisfactory evidence, and a commission report contradicted it.

Relying on these facts, the Court upheld the findings of the lower courts that the defendant made unauthorized constructions liable to be removed.

The Court considered the appellant’s reliance on Viswanathan v. Porichu, where minor alterations for security purposes were held permissible. The Court distinguished that case, noting the present case involved enclosing a common verandah with permanent alterations without consent, thus inapplicable.

Holding and Implications

The Court dismissed the second appeal with costs, affirming the judgments of the lower courts that the defendant made unauthorized permanent constructions in breach of the lease and Section 108 of the Transfer of Property Act, and must remove them.

The decision directly affects the parties by upholding the plaintiff’s right to restoration of the property and confirms the lessee’s obligation not to make unauthorized permanent alterations. No new precedent was established beyond the application of existing law to the facts.

    G.P Appukutty Nambiar v. P.K Ratnagiri

    1. Defendant in a suit for mandatory injunction is the appellant in the second appeal. The suit was decreed as prayed for and the same was confirmed in A.S 198 of 1983 on the file of Sub Court, Badagara. Hence, this second appeal.

    2. The brief facts of the case are as follows: Respondent - plaintiff is the owner of a building which has got eight shop rooms in a row. Out of these, four rooms face the Perambra main road and 3 rooms face towards the road which leads to the Elamaran Kulangara temple. One of these shope rooms was tat out to the defendant on 14-11-1980 on a monthly rent of Rs. 50/- for a period of 3 months. The plaintiff would contend that at the time of lease the defendant agreed that on the termination of the tenancy he would surrender possession of the building without effecting any alteration. For the row of shop rooms there is a common verandah. This case of the plaintiff is that the defendant enclosed the verandah by using iron grills. It is also alleged that the defendant erected wooden frames by boring walls and roof of the building and he tampered with the flooring. This, according to the plaintiff, is against the terms of the lease and, therefore, he filed the suit for removal of these structures.

    3. The defendant filed written statement alleging that the front verandah forms part of the lease and that the plaintiff had permitted to use this verandah and therefore he enclosed the same with iron grills.

    4. The defendant alleged that similar constructions have been done by other shop owners also. The defendant alleged that the plaintiff was aware of the construction and that he had even given certain directions to the workers and thereby gave his consent for the additional construction. According to the defendant no damage has been caused to the flooring or part of the building.”

    5. The trial court as well as the lower appellate court found that the defendant has made unauthorised construction and the same is liable to be removed. Under Section 108(m) of the Transfer of Property Act the lessee is bound to keep, and on the termination of the lease to restore, the property in as good condition as it was in at the time when he was put in possession, subject only to changes caused by reasonable wear and tear. It is true that by virtue of the provisions of the Rent Control Act the rights of the lessor as envisaged under the Transfer of Property Act are curtailed to some extent. But, it is not true to say that Act 2/65 completely displaces the provisions contained in the Transfer of Property Act. The plaintiff specifically contended that as per the terms of the lease the defendant had no authority to effect any construction or make any addition to the building. The defendant could not adduce any evidence to show that the lease granted in his favour permitted him to carry out any additional structures. The nature of the construction effected by the defendant is of permanent one. It is proved that he bored the walls and the floorings to put up the iron grills. Even though the defendant contended that other shop owners have made similar construction this fact was not proved by satisfactory evidence. In fact, the commission report marked in this case belied this contention. Under these circumstances, the courts below were right in holding that the defendant effected unauthorised construction and the same was liable to be removed by him.

    6. Learned counsel for the appellant relied on a decision reported in Viswnathan v. Porichu (1985 KLT 551) that the construction effected by the defendant it not unauthorised or not in violation of Section 108 of the Transfer of Property Act. It is a case where the tenant replaced the wooden shatters with collapsible rolling shatters and the landlord contended that it was an unauthorised construction in violation of Section 108 of the Transfer of Property Act. The facts of that case disclosed that the building therein had only wooden shutters in its front portion and the tenant was doing business in watch repairing and he was keeping valuable articles in the shop. So in order to provide sufficient security for his valuable articles he fixed collapsible iron rolling shatters. Of coarse, the shatters had to be fastened with two iron posts fixed on two sides. This Court was of the opinion that the construction effected by the tenant did not amount to material alteration. Bat, in the instant case, the tenant enclosed the verandah. The verandah was intended for common use. The defendant-tenant fixed iron grills and naturally he had to bore the walls and roof to facilitate this construction. There is nothing in evidence to indicate that he had obtained consent of the plaintiff. Under the above circumstances, Viswanathan v. Porichu (1985 KLT 551) has no application to the facts of this case and the decree and judgment passed by the courts below are not liable to be interfered with.

    7. Second appeal fails and the same is dismissed with costs.

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    G.P Appukutty Nambiar v. P.K Ratnagiri
    (Jun 7, 1991)