CHANDMALversusFIRM RAM CHANDRA AND VISHWANATH
- Citation
- 1991 INSC 135
- Decided
- 7 May 1991
- Disposal
- Appeal(s) allowed
- Bench
- B C RAY
Holding
The High Court may interfere only on grounds of jurisdictional error or illegal exercise of jurisdiction and cannot set aside concurrent factual findings of the lower courts.
Summary
The landlord Chandmal filed an eviction suit under section 15(3)(a)(iii) of the Hyderabad House (Rent, Eviction and Lease) Control Act, 1954, claiming the premises for his personal use. The tenant firm denied the claim of permanent tenancy and argued the landlord was not bona fide. The trial court and the Additional Rent Controller upheld eviction on the basis of section 15(2)(vi) because the tenant's claim of permanent tenancy was not bona fide. The District Judge affirmed this finding, but the High Court, exercising revision under section 26 of the Act, set aside the lower courts' orders, holding it was in the interest of justice to interfere with the factual findings. The Supreme Court held that the High Court's revisional jurisdiction is limited to jurisdictional errors or illegal exercise of power and cannot disturb concurrent factual findings of the lower courts. Consequently, the Supreme Court set aside the High Court’s revision order and restored the eviction orders of the lower courts. The appeal by the landlord was allowed.
Issues considered
- The scope of the High Court's revisional jurisdiction under section 26 of the Hyderabad House (Rent, Eviction and Lease) Control Act, 1954.
- Whether the High Court can interfere with factual findings of the lower courts in a revision proceeding.
- Whether the tenant's claim of permanent tenancy was bona fide under section 15(2)(vi) of the Act.
Legislation cited
- Code of Civil Procedure, 1908s. 115
- Hyderabad House (Rent, Eviction and Lease) Control Act, 1954s. 15(2)(vi), s. 15(3)(a)(iii), s. 26
- Partnership Act
Subjects
Judgment
A
CHAND MAL
v.
FIRM RAM CHANDRA AND VISHWANA1H
MAY 7, 1991
B [B.C. RAY AND J.S. VERMA, JJ.)
Hyderabad House (Rent, Eviction and Lease) Control Act, 1954--
Section 26--Revisionary jurisdiction of High Court-Scope of.
Code of Civil Procedure, 1908-Section 115-Revision-Scope
of.
c
The appellant-landlord filed a suit for eviction of the respondent
firm-defendant-commission agent irrm, from his shop under section
15(3)(a)(iii) of the Hyderabad House (Rent, Eviction and Lease) Control
Act, 1954 on the ground that the appellant required the Suit si.op for his
D own personal use as he intended to start commission agency and other
business; and that the respondent did not vacate the premise inspite of
his two notices, terminating the tenancy.
The respondent filed written statement before the Additional Rent
Controller accepting the ownership of the appellant and tenancy of the
E respondent and denied the appellant's allegation that he required the
premises for his personal use, as the appellant was a member of Hindu
Joint family comprising of his father, and his brothers and appellant;
the appellant as one of the partners of registered firm runs a kirana of
commission agency shop under the name and style of M/s Rajmal
Sumermal Surana and the appellant owned many houses and shops and
F as such was not entitled to an order of eviction. In the additional written
statement it was further stated that the appellant purchased the house
from one registered partnership irrm and one of the partners of the firm
was occupying the house as a permanent tenant since Samwat 2002. It
was also contended that the partners of the irrm were not made parties
to the eviction proceedings and hence the suit was not tenable.
G
The Trial Court considering the evidence allowed the suit holding
that the appellant was entitled to evict the respondent in view of the ·1
provisions of Section 15(2)(vi) of the Act, though the plea of bona fide ,
requirement was negatived.
H The tenant-respondent filed an appeal under section 25 before the
732
CHANDMAL v. FIRM 733
District Judge, which was dismissed though it was held that the land- A
lord failed to prove that he required the premises for personal use •
.,. The tenant-respondent's revision petition under section 26 to the
High Court, was allowed by a Single Judge.
B
Allowing the landlord's appeal, this Court
HELD: 1. The jurisdiction of the High Court in revision against
the order passed on appeal by the District Judge is a limited one and It is
:'. almost pari materia with the provisions of Section 115 of the Code of
Civil Procedure. The High Court while exercising the revisional juris-
diction can interfere with the order passed on appeal by the appellate C
authority only on three grounds, i.e. (i) where the original or apellate
authority exercised a jurisdiction not vested in it by law, or (ii) where
the original or appellate authority failed to exercise a Jurtsdlctlon so
vested, or (iii) where in following the procedure or passing the order,
the original or appellate authority acted illegally or with material
0
irregularity. [738C-E]
2. The findings in any view of the matter whatsoever cannot
be held to be either without jurisdiction nor it can amount to a failure
to exercise jurisdiction vested with them, nor it can be held to be
made by the original or appellate authority illegally or with material
irregularity. [738G] E
3. The revisional jurisdiction of tiie High Court under Section 26
of the said Act is coniined strictly to the jurisdictional error or illegal
exercise of jurisdiction. The ilnding .of the High Court to the effect that
it was the duty of the Court in the interest of justice to interfere even
with the concurrent fmding-of facts becau5e on the record, High Court F
found that there was not a single factor to come to the conclusion
that the claim was mala fide or was not bona fide as required by
the statute, is entirely baseless and not in accordance with the pro-
visions of Section 26 of said Act whiclt confers revisional Jurisdiction
on the High Court. [738H-739BJ
G
4. The claim of permanent tenancy by one of the partners has
been clearly and unequivocally made in the additional written state-
ment r.ted on behalf of the respondent. 1n such circumstances, the
provisions of Section 15(2) (vi') of the said Act are applicable and an
order of eviction can very well be passed on this ground alone. [739F]
H
734 SUPREME COURT REPORTS [ 1991] 2 S.C.R.
A CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2279
of 1991.
From the Judgment and Order dated 27.9.1989 of the Bombay
High Court in C.R.A. No. 500 of 1985.
B S.C. Birlafor the Appellant.
V.N. Ganpule, S.V. Deshpande and Ms. Priya Gupta for the
Respondent.
The Judgment of the Court was delivered by
c RAY, J. We have heard learned counsel for the parties and we
grant special leave.
This appeal on special leave is directed against the judgment and
order passed in Civil Revision Application No. 500 of 1985 by the High
D Court of Judicature at Bombay, Aurangabad Bench allowing the Revi-
sion, setting aside the judgment and decree passed by the District
Judge in Rent Appeal No. 5 of 1984 confirming and allowing the
judgment and order of the Additional Rent Controller, Aurangabad in
R.C. No. ARC/71/3.
E The matrix of the case is as follows:
The appellant-landlord, Chandmal, S/o Sumermal Surana as
plaintiff filed a suit for eviction of the respondent-defendent Firm Ram
Chandra & Vishwanath, a commission agent firm from his shop bear-
ing Municipal No. 4-16-101 situated at Mondha, Taluka, District
F Aurangabad (Maharashtra) under section 15(3)(a)(iii) of the Hydera-
bad House (Rent, Eviction and Lease) Control .Act, 1954 to be
hereinafter to be referred to as the said Act on the ground inter a/ia that
the respondent was the tenant of the said shop attached to the said
house of the appellant-landlord on the monthly rent of Rs.SO per
month and the tenancy commences from the 1st day of every month ~
G according to the English calender, that the landlord-appellant required
the suit shop for his own personal use as he intended to start commis-
sion agency and other business in the said shop, that he terminated the
tenancy of the respondent by serving the two notices dated 28.3.1969
and 8. 12. 1970 and that the respondent did not vacate the suit pre-
mises, hence the suit has been filed for eviction of the tenant-
H respondent from the said premises. Shankarrao Marutirao Son~wane,
CHANDMAL v. FIRM [RAY, J.[ 735
one of the partners of respondent firm filed his written statement
A
before the Additional Rent Controller accepting the ownership of the
appellant and tenancy of the respondent at the rate of Rs. 50 per
month. He, however, denied the appellant's allegation that he
required the suit premises for his personal use. According to the
respondent, the appellant is a member of Hindu joint family compris-
ing of his father, Sumermal, his real brothers and appellant and as one B
of the partners of registered firm runs a kirana of commission agency
shop under the name and style of Mis Rajmal Sumermal Surana. It has
been further submitted that the appellant owns many houses and shops
at Aurangabad and also runs a very big shop at Bhaji Bazar,
Aurangabad and is not entitled to evict. In the additional written
statement it has been further stated that the appellant purchased the C
house from Balkrishna and brothers, the firm Ramchandra and Vish-
wanath is a partnership firm registered under the Partnership Act, one
of the partners of the firm Ramchandra and Vishwanath is occupying
the house as a permanent tenant since Samwat 2002. It has also been
contended that the partners of the firm are not made parties to the
eviction proceeding• and hence the suit was not tenable. D
Ir
An additional issue was framed at the request of the appellant
which was to the following effect:
"Do defendant prove that he is permanent tenant and his
claim is bona fide." E
The trial court considering the evidences adduced on behalf of
the defendant-respondent held that the defendant failed to prove the
claim of permanent tenancy of Ramchandra Madhavrao since Samvat
2002 over the suit premises and that the claim of permanent tenancy is
not bona fide. This issue was thus answered in the negative. F
The Additional Rent Controller, therefore, held that the appel-
lant is entitled to evict the respondent from the suit premises in view of
the provisions of Section 15(2) (vi) of the said Act and, therefore,
~ made an order directing the tenant-respondent to hand over vacant
and peaceful possession of the said shop to the landlord-appellant G
within a period of 30 days of the order though he negatived the plea of
bona fide requirement of suit premises for his own occupation.
This order was made on February 14, 1984. Against this judg-
ment and order, the tenant-respondent filed ·an appeal being Rent
Appeal No. 5 of 1984 under section 25 of the said Act in the court of H
736 SUPREME COURT REPORTS [ 1991] 2 S.C.R.
A District Judge at Aurangabad. The learned District Judge confirmed
the judgment and order of the Additional Rent Controller holding that
the landlord failed to prove that he bona fide required the premises for
personal use, for starting new business. It was further held that so far
as the claim of permanent tenancy, there was no iota of evidence to
support the tenant-respondent's claim of permanent tenancy. It also
held that the tenant-respondent has put forth the claim of permanent
tenancy to defeat the landlord-appellant's right to claim possession of
the premises and had there been any substance in the claim, the
tenant-respondent would have produced evidence in support of it.
Complete absence of evidence indicated that the claim is fake and not
put forth bona fide. The learned District Judge, therefore, held that
the tenant's claim of permanent tenancy was not bona fide and so
c upheld the finding of the Additional. Rent Controller and granted
three months' time to the tenant-respondent to deliver possession of
the suit premises to the landlord-appellant.
The tenant-respondent feeling aggrieved filed an application for
D Revision under Section 26 of the said Act in the High Court at Bombay
(Aurangabad Bench) being Civil Revision Application No. 500 of
1985. The said Revision Application was allowed by the learned Single
Judge setting aside the concurrent finding of the courts below holding
inter alia that in the reply of the tenant to the notices sent by the
landlord, there was no semblance of a claim for permanent tenancy. It
E was further held that in the written submission there was no whisper
about the claim of permanent tenancy. It is for the first time that in the
additional written statement filed on behalf of the tenant the claim of
permanent tenancy by one of the partners, Ramchandra Madhavrao
since Samwat 2002 was made. It has also been held that during the
trial, Shankarrao Marutirao Sonawane, one of the partners of the
F respondent firm who has signed the written statement has not uttered a
word in his examination-in-chief with regard to the question of per-
manent tenancy. It was, therefore, held that in these circumstances "it
is the duty of the Court in the interest of justice to interfere even with a
concurrent finding of fact because on the record, I find that there is not
a single factor to come to the conclusion that the claim was ma/a fide or
G was not bona fule as is required by the statute."
The learned Single Judge, therefore, set aside the judgments of
the courts below and allowed the Revision Application with costs
throughout.
H It is against this judgment and order, the instant appeal on
CHANDMAL v. FIRM [RAY, J.) 737
special leave has been filed by the landlord. It is convenient to set out
A
hereinbelow the relevant provisions of Section 15(2)(vi) of the said
Act before proceeding to consider whether the High Court was
justified in setting aside the judgment an~ order of the courts below:
Section 15(2)(vi):
B
A tenant shall not be evicted, whether in execution of a
decree or otherwise except in accordance with the provi-
sions of this section--
(vi) that the tenant has denied the title of the landlord or
claimed a right of permanent tenancy and that such denial
or claim was not bona fide the Controller shall make an c
order directing the tenant to put the landlord in possession
of the house, and if the Controller is not so satisfied he
shall make an order, rejecting the application."
It is also pertinent to set out in this connection the provisions of D
· Section 26 of the said Act:
Section26:
"Notwithstanding anything contained in this Act or any
other law for the time being in force, an application for E
revision shall lie to the High Court from any final order
passed on appeal by a,n appellate authority on the following
grounds:
(a) that the original or appellate authority exercised a
jurisdiction not vested in it by law, or F
(b) that the original or appellate authority failed to exer-
cise a jurisdiction so vested, or
(c) in following the procedure or passing the order, the
original or appellate authority acted illegally or with mate- G
rial irregularity."
There is no dispute regarding the submission made in para 9 of
the additional written statement which is a part of the same written
statement, filed on behalf of the respondent .by one of its partners,
Shankarrao Marutirao Sonawane to the effect that one of the partners H
738 SUPREME COURT REPORTS [1991] 2 S.C.R.
of the said firm, Ramachandra Madhavrao is occupying the house as a
A permanent tenant since Samvat 2002. Admittedly, on the basis of this
additional written statement, an additional issue No. I was framed at
the request of the landlord-appellant whether the claim of permanent
tenancy of Ramchandra Madhavrao was bona fide. It is evident from
the provisions of Section 15(2)(vi) as set out hereinbefore that if the
B tenant has claimed a right of permanent tenancy and that such claim
was not bona fide the Controller shall make an order directing the
tenant to put the landlord in possession of the house. The Additional
Rent Controller as well as the District Judge considered carefully and
minutely the evidences adduced on behalf of the tenant-respondent
and found that claim of permanent tenancy was not bona fide.
Accordingly, the courts below held that the tenant-respondent was
c liable to be evicted from the suit premises on this ground alone and
passed order for eviction from the suit premises. The jurisdiction of
the High Court in revision against the order passed on appeal by the
District Judge is a limited one and it is almost pari materia with the
provisions of Section 115 of the Code of Civil Procedure. The High
D Court while exercising the revisional jurisdiction can interfere with the
order passed on appeal by the appellate authority only on three
grounds i.e. (i) where the original or appellate authority exercised a
jurisdiction not vested in it by law, or (ii) where the original or appel-
late authority failed to exercise a jurisdiction so vested, or (iii) where
in following the procedure or passing the order, the original or appel-
E late authority acted illegally or with material irregularity. It is evident
from the averments made in para 9 of the additional written statement
that one of the partners of the respondent firm, Ramchandra
Madhavrao occupied the said premises as a permanent tenant since
Samvat 2002. This claim of permanent tenancy was held to be not bona
fide by the original court as well as by the appellate authority on a
F consideration and appraisement of the evidences adduced on behalf of
the tenant-respondent and as such both the courts below passed order
of eviction of the tenant-respondent from the suit premises. These are
admittedly concurrent findings of fact arrived at by the original and the
appellate authority. Moreover, these findings in any view of the matter
whatsoever, cannot be held to be either without jurisdiction nor it can
G amount to a failure to exercise jurisdiction vested with them, nor it can
be held to be made by the original or appellate authority illegally or
with material irregularity.
The revisional jurisdiction of the High Court under Section 26 of
the said Act is confined strictly to the jurisdictional error or illegal
H exercise of jurisdiction. The finding of the High Court to the effect
CHANDMAL v. FIRM (RAY, J.] 739
that it was the duty of the Court in the interest of justice to interfere
A
even with the concurrent finding of facts because on the record, High
Court found that there was not a single factor to come to the conclu·
sion that the claim was ma/a fide or was not bona fide as required by
the statute, is entirely baseless and not in accordance with the provi·
sions of Section 26 of the said Act which confers revisional jurisdiction
on the High Court. It is pertinent to mention in this connection the B
decision in J. Pandu v. R. Narsubai, [1987] 1 SCC 573. It is a case
under the A.P. Buildings (Lease, Rent and Eviction) Act, 1960. Sub·
section 2(vi) of Section 10 of A.P. Buildings (Lease, Rent and Evie·
tion) which is similar to Section 15(2)(vi) of the Hyderabad Houses
(Rent, Eviction and Lease) Control Act, 1954 sets out two grounds of
eviction viz. ( 1) denial of title of the landlord without bona fides and
(2) claim of permanent tenancy rights without bona fides. It was held c
that "consequently, either denial of title or claim of permanent
tenancy without bona fides will· itself be enough to attract Section
10(2)(vi). The order of eviction on this ground, has therefore, to be
sustained. By reason of this conclusion alone the appeal can be
dismissed." D
In the case of Majati Subbarao v. P. V.K. Krishna Rao (deceased)
by Lrs., [1989] 4 SCC 732 it has been observed that the denial of title
of the landlord by the tenant must be made in clear and in unequivocal
terms. It was further observed that it is well settled that the court
hearing a suit or appeal can take into account events which are subse- E
q uent to the filing of the suit in order to give appropriate relief or
mould the relief appropriately.
As we have stated hereinbefore that the claim of permanent
tenancy by one of the partners, Ramchandra Madhavrao has been
clearly and unequivocally made in the additional written statement F
filed on behalf of the respondent. In such circumstances, the provi-
sions of Section 15(2)(vi) of the said Act are applicable and an order of
eviction can very well be passed on this ground alone.
In the premises aforesaid, the judgment and order passed in
-+ revision by the High Court is contrary to law as the High Court in G
exercise of its revisional jurisdiction interfered with the concurrent
finding of fact arrived at by the original court as well as the appellate
authority. The High Court should not have reversed the same in exer·
cise of its revisional jurisdiction under Section 26 of the said Act. We,
therefore, set aside the judgment and order of the High Court and
uphold the orders of the court below. The respondent is given three H
740 SUPREME COURT REPORTS [1991] 2 S.C.R.
A months' time to vacate the suit premises on filing the usual undertak-
ing that they will not induct anybody or transfer the same to any other
person and they will go on paying the rent of the premises at the usual
rate and will deliver vacant and peaceful possession of the suit
premises on or before the expiry of the said period to the landlord-
B appellant. In the facts and circumstances of the case, the parties will
bear their own costs.
V.P.R. Appeal allowed.
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