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  • section 14 of the Madras Buildings (Lease and Rent Control) Act, hereinafter called the Act,
  • section 14 (2) (b), section 16 and section 33 (3) (b). Under section 14 (2) (b)
  • section 14 of the Madras Buildings (Lease and Rent Control) Act and the Rules.
  • West Bengal Premises Rent Control (Temporary Provisions) Act of 1948
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  • section 14 of the Madras Buildings (Lease and Rent Control) Act, hereinafter called the Act,
  • section 14 (2) (b), section 16 and section 33 (3) (b). Under section 14 (2) (b)
  • section 14 of the Madras Buildings (Lease and Rent Control) Act and the Rules.
  • West Bengal Premises Rent Control (Temporary Provisions) Act of 1948
Smart Summary

Factual and Procedural Background

The revision petitions were filed by landlords who purchased premises Nos. 111 and 112, Kodambakkam High Road, Madras on 16 February 1961 for about three lakhs of rupees. After purchase they served notices on tenants, including the respondent, seeking vacant possession on the primary ground that the buildings were required for demolition and reconstruction. The landlords had applied to the Corporation of Madras for sanction of a layout plan as a precursor to building new structures, and the Corporation indicated that sanction would be given only after demolition of existing buildings.

The landlords' eviction petitions were heard by the Rent Controller (House Rent Controller, Madras). The tenants opposed proceedings on the ground that the rents exceeded Rs. 250 (arguing the Rent Controller lacked jurisdiction) and that the demolition/reconstruction claim was not bona fide and was raised for the first time. The Rent Controller found there were two tenancies (for Rs. 250 and Rs. 100), concluded jurisdiction existed, and held the building was bona fide required for demolition and reconstruction.

The tenant appealed to the Court of Small Causes, Madras. The Appellate Authority agreed that the rent for each tenancy did not exceed Rs. 250 (so within Rent Controller's jurisdiction) but reversed the Rent Controller's finding on bona fides, observing that the landlords had not averred the buildings were old and decrepit and had not finally decided what to construct (whether a cinema theatre or hotel), and concluded the landlords' claim was improbable and not bona fide.

The landlords challenged that appellate decision in these civil revision petitions before the High Court (Chandra Reddy, C.J.). The High Court considered the interpretation of section 14 of the Madras Buildings (Lease and Rent Control) Act and the evidence on record, and allowed the revision petitions, setting aside the appellate authority's decision and restoring the Rent Controller's order.

Legal Issues Presented

  1. Whether, under section 14(1)(b) of the Madras Buildings (Lease and Rent Control) Act, a landlord seeking possession for demolition and reconstruction must establish that the existing building is old, dilapidated or decrepit.
  2. Whether the Rent Controller had jurisdiction to entertain the petition (issue framed in the proceedings: whether the rents exceeded Rs. 250 thereby ousting his jurisdiction).
  3. Whether the landlords' claim for possession on the ground of demolition and reconstruction was bona fide in the light of the evidence on record.

Arguments of the Parties

Landlords' (Petitioners') Arguments

  • The landlords contended that for the purpose of section 14(1)(b) it was not necessary to prove that the buildings were old and decrepit; what mattered was that the landlords genuinely required the buildings for demolition and reconstruction.
  • They argued the Rent Controller's finding that the building was required for demolition and reconstruction was supported by the evidence (purchase for demolition, application to Corporation for layout plan, plan copy produced), and that the appellate judge's contrary finding was opposed to the evidence and unsustainable in law.

Tenant's (Respondent's) Arguments

  • The tenant contended that the Rent Controller lacked jurisdiction because the rent for the buildings in question exceeded Rs. 250.
  • The tenant also argued that the allegation regarding demolition and reconstruction was put forward for the first time in the petition and was not bona fide.
  • On appeal, the tenant relied on the Appellate Authority's view that because the landlords had not averred the buildings were old and had not decided the exact nature of the proposed construction, the landlords' request was improbable and not bona fide.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Neta Ram v. Jiwan Lal Held that to obtain ejectment for reconstruction the landlord must satisfy the Rent Controller about the genuineness of his claim; the Controller may look at surrounding circumstances (condition of building, situation, possibility of more profitable use, means of landlord). Used to support the proposition that bona fides of the landlord's intention is decisive and that surrounding circumstances are relevant; it does not require proof that the building is very old and dilapidated.
Mahboob Badsha v. M. Manga Devi Single-judge decision holding that genuineness of the desire to demolish and rebuild is relevant and that it is not essential to prove that the building was very old. Relied upon as authority that age/dilapidation is not a necessary precondition under section 14(1)(b).
Chandrasekara Chetty v. Kakumani Adikasavalu Chetty's Charities Single-judge decision holding that the genuineness of the desire to demolish and rebuild is the relevant factor; building's age is not essential. Adopted to reinforce the Court's view that bona fide intention, not dilapidation, governs the application of section 14(1)(b).
Mahsin Bhai v. Hale & Co. (single-judge) and Sha Manakchand v. Sankarji Moolchand (single-judge) These judgments were noted as not helpful to the petitioners because the learned Judge did not state as a universal proposition that age of the building is the determining factor under section 14(1)(b). Cited to explain that contrary single-judge decisions do not establish a rule that age alone is decisive; they do not undermine the Court's interpretation.
Bhulan Singh v. Gnanendra Kumar Construction of an analogous West Bengal provision: held that the statute speaks of premises required bona fide for rebuilding and does not make the state of the premises an essential factor; the court observed in that particular case the premises were very old and dilapidated. Used to support the view that statutory language does not require premises to be old to attract a right of possession for rebuilding; state of premises may be relevant but is not essential.

Court's Reasoning and Analysis

The Court undertook a textual and contextual interpretation of section 14(1)(b) of the Madras Buildings (Lease and Rent Control) Act. The Court observed that the plain language of clause (b) requires that the building be "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." From the language the Court concluded:

  • The essential requirement is the landlord's honest intention (bona fide desire) to demolish and rebuild; there is no express statutory requirement that the building must be old, decrepit or dilapidated.
  • The expression "bona fide" pertains to the genuineness of the intention, not to a precondition about the structural condition of the building.
  • Statutory safeguards built into the Act guard against misuse: section 14(2)(b) obliges the landlord to undertake to commence demolition within one month and complete within three months (subject to Controller's extension), failure of which invokes penal consequences under section 33(3)(b); section 16 also enables the tenant to re-occupy if the landlord fails to commence demolition.

The Court reviewed and relied on relevant authorities that supported the conclusion that proving the building's age or dilapidation is not essential. It rejected the Appellate Authority's requirement that the landlords must aver the buildings were old and decrepit, finding that such a requirement was not contemplated by the statute and that the Appellate Authority had disregarded material evidence.

On the evidence, the Court noted: the first petitioner had stated that he bought the property for demolition and reconstruction; the petitioners applied to the Corporation for sanction shortly after purchase and produced a copy of the plan sent to the Corporation; the Corporation had responded that the plan would be sanctioned only after demolition; the respondent admitted that Building No. 111 had been largely demolished; and the petitioners were wealthy and had the means to carry out demolition and reconstruction. The Court held these facts corroborated the landlords' bona fide intention.

Consequently, the Court found that the Rent Controller's conclusion that the buildings were required bona fide for demolition and reconstruction was supported by the material and that the Appellate Authority's contrary finding was arrived at without proper regard to the evidence or the correct legal interpretation of section 14(1)(b).

Holding and Implications

Holding: The Civil Revision Petitions are allowed; the judgment of the Court of Small Causes (Appellate Authority) is set aside and the order of the Rent Controller is restored. The landlords are to be granted possession in accordance with the Rent Controller's order and the parties were accommodated on timelines for vacation and removal.

The Court ordered that the respondent be given time to vacate and remove the structures; the petitioners agreed to give nine months from 1 August 1965, i.e., until 30 April 1966, within which the respondent may remove structures put up by him. The Court also awarded costs to the petitioners ("with costs throughout in one").

Implications (as reflected in the opinion): The decision clarifies the statutory interpretation of section 14(1)(b) of the Madras Buildings (Lease and Rent Control) Act: a landlord seeking possession for demolition and reconstruction need not prove that the existing building is old or dilapidated; the decisive consideration is the bona fide or genuine intention to demolish and rebuild. The Act contains safeguards (e.g., undertakings and penal consequences) to prevent misuse. The decision restores the Rent Controller's order in the present case and imposes the practical consequence that the tenant must vacate and may remove his structures within the specified nine-month period.

    R.P. David & Another v. N. Daniel (died) & Others

    CHANDRA REDDY, C.J.

    In the revision cases filed by the aggrieved landlords against the judgment of the Court of Small Causes at Madras in H.R.A. Nos. 122 and 123 of 1963 the controversy centers around section 14 of the Madras Buildings (Lease and Rent Control) Act and the Rules. The petitioners purchased the ground and premises Nos. 111 and 112, Kodambakkam High Road Madras on 16th February, 1961, from the former owner for a sum of about three lakhs of rupees Thereafter they required by a notice the tenants in occupation of the building standing on the land, including the respondent, to deliver vacant possession of the premises in their occupation for the reasons mentioned therein the chief of it being that they were required for demolition and rebuilding. As they did not succeed in obtaining vacant possession of the same they initiated the proceedings giving rise to these appeals before the House Rent Controller, Madras.

    It was inter alia stated in the petition that after purchase the petitioners applied to the Corporation of Madras for sanction of the lay out plan for premises Nos. 111 and 112, Kodambakkam High Road, preliminary to the construction of new buildings. But the Corporation had written to say that the plan would be sanctioned only after the existing buildings were demolished. It was in such a situation with the idea of demolishing the buildings for reconstruction, that the petitioner called upon the respondent by their notice dated 14th August, 1961, to vacate the premises

    The petitions were opposed on the objection that the rent for the buildings in question being in excess of Rs. 250 it was beyond the jurisdiction of the Rent Controller to entertain the petitions, and that in any event as the allegation regarding demolition and reconstruction having been put forward for the first time in the present petition it was not bona fide. This opposition of the respondent did not prevail with the Rent Controller. On the materials before him he came to the conclusion that there were two tenancies for Rs. 250 and Rs. 100 respectively and as such it did not fall within the ambit of section 30 of the Act and that being so the jurisdiction of the Rent Controller was not ousted in this behalf, and that the building was bona fide required by the landlord for demolition and reconstruction.

    Against that judgment the tenant carried an appeal to the Court of Small Causes, Madras. The Appellate Authority while agreeing with the conclusion of the Rent Controller, that the rent paid for each of the tenancies did not exceed Rs. 250 came to the conclusion that the matter fell within the jurisdiction of the Rent Controller. However, he reversed the decision of the Rent Controller in the view that in the petition for eviction the landlords had not averred that the buildings were old and required for demolition and reconstruction and that further they had not fully decided as to whether they should construct a cinema theater or a hotel on the site of the present building and that a part of the new building may be used for residence. Says the learned Judge.

    “It is improbable that the respondents without even finally deciding about the nature of the construction to be put up by them on the site of the present building whether a cinema theatre or a hotel would require the building for demolition.”

    Consequently he found that the respondent's request was not true and bona fide.

    In these revision petitions filed by the landlord this opinion of the Appellate Authority is impugned by Sri Tiruvengadachari. It is urged by learned Counsel that as the buildings were required for demolition and reconstruction it was not necessary to prove that they were old and decrepit and as such have to be pulled down. All that was necessary to make out was, that the landlords genuinely required the buildings for demolition and reconstruction. He also assailed the view of the learned Judge as to bona fides on the ground that it is opposed to the evidence on record and also unsustainable in law.

    Before we deal with the merits of these contentions it is useful to read section 14 of the Madras Buildings (Lease and Rent Control) Act, hereinafter called the Act, the correct interpretation of which furnishes an answer to the questions raised in these revision cases. That section, omitting the unnecessary portions, reads thus:

    “14. Recovery of possession by landlord fot repairs or for reconstruction. — (1) Notwithstanding anything contained in this Act, but subject to the provisions of sections 12 and 13, on an application made by a landlord, the Controller shall, if he is satisfied —

    (a) that the building is bona fide required by the landlord for carrying out repairs which cannot carried out without the building being vacated ; or

    (b) 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 tenant to deliver possession of the building to the landlord before a specified date.

    (2) No order directing the tenant to deliver possession of the building under this section shall be passed: —

    (a) On the ground specified in clause (a) of sub- section (1) unless the landlord gives an undertaking that the building shall, on completion of the repairs be offered to the tenant, who delivered possession in pursuance of an order under sub- section (1) for his re-occupation before the expiry of three months from the date of recovery of possession by the landlord, or before the expiry of such further period as the Controller may, for reasons to be recorded in writing, allow ; or

    (b) On the ground specified in clause (A) of such section (1) unless the landlord gives an undertaking that the work of demolishing any material portion of the building shall be substantially commenced by him not later than one month and shall be completed before the expiry of three months from the date he recovers possession of the entire building or before the expiry of such further period as the Controller may, for reasons to be recorded in writing allow.”

    We are concerned here mainly with section 14 (1) (6) of the Act. It is manifest that the only requirement of section 14 (1) (b) is the honest desire of the landlord to demolish the building 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. There is nothing in the language of this clause to warrant the view that the building should be old and decrepit. The expression ‘bona fide ‘occurring in that clause cannot sustain the opinion that it is only when a building is old and in a dilapidated condition that it could be demolished for the purpose of putting up a new construction so as to attract clause (b) of section 14 (1). The import of that section is that the desire or the intention to demolish and rebuild should be honestly entertained by the landlord. It should not be a device to evict the tenant. Moreover there are sufficient safeguards in the statute itself against such devices in the shape of section 14 (2) (b), section 16 and section 33 (3) (b). Under section 14 (2) (b) to which we have already referred, an undertaking has to be given by the landlord that the work of demolishing any material portion of the building would be substantially commenced by him not later than one month and that any violation of this undertaking will visit the landlord with the penal consequences contemplated by section 33 (3) (b), viz., conviction and a punishment with a fine extending to one thousand rupees. Additionally section 16 of the Act enables the tenant to occupy the building after giving notice of his intention in that behalf, if the landlord fails to commence the work of demolition within the period of one month. In this situation it is difficult to agree with the conclusion of the learned City Civil Judge that the landlord has also to prove that the building was too old and decrepit. In our opinion that requisite is not contemplated by clause (b) of section 14 (1) of the Act.

    There is abundant authority for this view of ours. In Neta Ram v. Jiwan Lal it was ruled that in order to obtain an order for ejectment of his tenant on the ground of its being required for reconstruction the landlord has only to satisfy the Rent Controller about the genuineness of his claim and that this could be established by looking at all the surrounding circumstances such as the condition of the building, its situation, the possibility of its being put to more profitable use after re-construction, the means of the landlord and so on. In the course of the judgment it was observed by Hidayatullah, J., who spoke for the Court, that in deciding whether the building is required by the landlord for reconstruction, or for its replacement by another building or for erection of other buildings, the Court must have regard to the bona fides of the request of the landlord, which meant that the desire to rebuild the premises should be honestly held by the landlord, but that the condition of the building also played an important part in determining whether the landlord had the intention genuinely and was not using this excuse as a device to get rid of the tenant.

    Thus it is not essential to establish that the building is in a very old and dilapidated condition. This is so, also appears from several judgments of single judges of this Court.

    This matter was elaborately dealt with by Ramamurti, J., in Mahboob Badsha v. M. Manga Devi., and by Venkatadri, J., in Chandrasekara Chetty v. Kakumani Adikasavalu Chetty's Charities. The learned Judges after referring to the decided cases and after reviewing the case-law on the subject, held that it was the genuineness, of the desire to demolish and rebuild that was relevant and that it was not essential to prove that the building was very old. The two judgments of Anantanarayanan, J., in Mahsin Bhai v. Hale & Co., Madras, and Sha Manakchand v. Sankarji Moolchand are not helpful to the petitioners, as the learned Judge has not laid as a universal proposition of law that the age of the building is the determining factor in relation to the application under section 14 (1) (b) of the Act.

    The dictum in Bhulan Singh v. Gnanendra Kumar also strengthens our view. Construing an analogous provision in the West Bengal Premises Rent Control (Temporary Provisions) Act of 1948 which lays down

    “Nothing in this sub- section shall apply where the premises are bona fide required by the landlord either for purposes of building or rebuilding, or for his own occupation or for the occupation of any person for whose benefit the premises are held.”

    Harries, C.J., delivering the judgment of the Bench, observed:

    “ It was suggested that this provision giving the landlord a right to possession, if he established that he required the premises bona fide for rebuilding could have no application whatsoever unless the state of the premises was such that they required to be rebuilt. It is to be observed that proviso (f) to section 11 (1) of the Act does not mention premises requiring rebuilding. What it states is that sub- section (1) shall have no application if the landlord requires the premises bona fide for rebuilding. The state of the premises therefore is not an essential factor in the case. However, it cannot be overlooked that in this case the learned Judge has accepted the evidence of a witness which showed that these premises were very old, dilapidated, dangerous and likely to fall if extensive repairs were not done to them quickly.”

    Thus having regard to the language of the relevant statutory provisions and the decided cases the conclusion is irresistible that it is not necessary for the landlord to prove that the building was very old and unfit for occupation to succeed in obtaining orders under section 14 (1) (b).

    There remains the question relating to the bona fides of the petitioners. In this context it should be remembered that the first petitioner categorically stated in his evidence that he bought the building with land, for demolition and reconstruction and that he applied to the Corporation for sanction of the layout for the premises shortly after he purchased the property. But the Corporation wanted him to submit the plan after completion of the demolition. He also filed a copy of the plan that was sent to the Corporation. This evidence of his stood uncontradicted. The respondent has not stated anything to the contrary. In fact he admitted that building No. 111 has been largely demolished which substantiates the statement of the petitioners that they needed this building for demolition and reconstruction. Further, it is not suggested that the petitioner is not possessed of sufficient means to carry out the demolition and the reconstruction operations. Indisputably the petitioners purchased this property for about three lakhs of rupees and they are well-to-do men, having the where-with-all to demolish and put up new buildings. The fact that the landlords have not decided as to what use they should put a part of the building after its reconstruction is not decisive. From that one thing alone it cannot be inferred that the petitioners had not made up their minds as to whether the building should be demolished and a new construction put up in its place. The finding of the Judge of the Court of Small Causes at Madras arrived at without any reference to the evidence on record and the admission of the respondent cannot be sustained. The Rent Controller after careful consideration of the material before him reached a decision that it was required for demolition and reconstruction and there was no material on the basis of which that finding could be disturbed. As we have already said, the Judge of the Court of Small Causes gave the finding without any regard to the material on record and without appreciating the scope and ambit of sub- section 14 (1) (b) of the Act. In these circumstances, the decision of the appellate authority is unsustainable and has to be set aside and that of the Rent Controller restored.

    The respondent requests us to grant him some time to vacate and deliver vacant possession of the premises and to be permitted to remove the structures put up by him. The petitioners are willing to give him nine months from 1st August, 1965, that is, till 30th April, 1966. They have also no objection to the respondent removing the structures put up by him, but within that time. Ordered accordingly.

    The Civil Revision Petitions are allowed with costs throughout in one.

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    Comments

    R.P. David & Another v. N. Daniel (died) & Others
    (Jul 22, 1965)