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Supreme Court of India

SATISH CHANDER AGGARWAL (D) BY LRS.versusSHYAM LAL OM PRAKASH, ARHTI AND ANR.

Citation
2017 INSC 278
Decided
30 March 2017
Disposal
Appeal(s) allowed

Holding

The bona‑fide requirement established by the original landlord is sufficient for his legal heirs when the premises are needed for a family business, and the eviction order stands.

Summary

The original landlord, Satish Chander Aggarwal, filed an eviction application under Section 2(l)(a) of the U.P. Urban Building Act, claiming a bona‑fide requirement to expand his family business. The Rent Controller dismissed the petition, but the First Appellate Authority reversed that decision, granting eviction after a spot inspection confirmed the landlord’s need. After the landlord’s death, the tenant obtained a writ of certiorari from the Allahabad High Court, which set aside the appellate order on the ground that the surviving heirs must separately establish a bona‑fide requirement. On appeal, the Supreme Court held that when the business is a family concern and the heirs continue it, the bona‑fide requirement established by the deceased landlord suffices and a fresh proceeding is unnecessary. Consequently, the High Court’s order was vacated and the eviction order of the First Appellate Authority was restored.

Issues considered

  • Whether the bona‑fide requirement for eviction under Section 2(l)(a) of the U.P. Urban Building Act, established by a deceased landlord, continues to apply to his legal heirs in a family business
  • Whether a separate proof of bona‑fide requirement is required from the surviving heirs

Legislation cited

Subjects

evictionbona fide requirementfamily businessU.P. Urban Building Actlandlord‑tenantlegal heirssuccessionspot inspection

Judgment

                         [2017] 3 S.C.R. 711


          SATISH CHANDER AGGARWAL (D) BY LRS.                              A
                                  v.
        SHYAM LAL OM PRAKASH, ARHTI AND ANR.
                   (I.A. No. 5 of2017)
                                  In
                                                                           B
               (Civil Appeal No. 1464 of2010)
                      MARCH30,2017
        [KURIAN JOSEPH AND R. BANUMATHI, JJ.]
       U.P. Urban Building Act - s.2J(a) - Eviction - On ground of
bo.na fick requirement of the legal heirs of deceased landlord -           c
Original owner-landlord filed an application for eviction on the
ground of bona fide requirement for expansion of family business -
Rent Controller dismissed it - First Appellate Authority reversed the
finding and granted eviction, on finding that the premises was
required for the business of the landlord - Aggrieved tenant filed
writ petition before High Court - Meanwhile, landlord expired -            D
High Court taking note of fact that landlord has expired, declined
                                                                               ,.
to go into the question of bona fide requirement and held that
continuation of business by legal heirs is a distinct cause of action
and sqme needs to be established separately - On appeal, held: No
doubt, in a given case the bona fide requirement of landlord. and of       E
surviving legal heirs may vary - However,-. ~n the instant case: it is a
family business and landlord has established the requirement of the
premises for family business - Hence, it is not necessary to relegate
the legal heirs for another round of litigation for eviction - Order
passed by the First Appellate Authority restored.
       Allowing the appeal, the Court.                                     F
      HELD: i. In the instant case, it is not in dispute that the
business that had been carried on by original landlord is being
continued by his legal heirs. It is a family business. If that be so,
the requirement, as established and which has been upheld by
the Appellate Authority after conducting even a spot inspection,           G
in our view, safisfies the requirements of bona fide need of the
la'ndlord. No doubt, in a given case the bona fide requirement of
the original landlord and that of the surviving legal heirs may
vary. But in the instant case, since it is family business and since
the landlord has established the requirement of the premises for
                                                                           H
                                  711
712             SUPREME COURT REPORTS                          [2017] 3 S,C.R.


A      the family business, it is not necessary to relegate the legal heirs
       for another round of litigation for eviction. [Para 6] [713-C-E]
            2. In that view of the matter, the order passed by the High
       Court is set aside and the appeal is allowed. The order passed by
       the First Appellate Authority for eviction is restored. [Para 7]
B      [713-E-F]
              CIVIL APPELLATE JURISDICTION: I. A. No. 5 of 2017 in
       Civil Appeal No. 1464 of2010.
             From the Judgment and Order dated 15.02.2006 of the High Com1
       of Judicature at Allahabad in WP No. 8498/88.
c              A. K. Ganguli, Sr. Adv., Mahesh Srivastava, Vaibhav M.
        "Srivastava, P. N. Puri, Sanjay Bansal, Ajay Choudhary, Advs. for the
      . Appellants.
             Arun Aggarwal, Taranjeet Singh, Gaurav Aggarwal, Advs. for
       the Re~pondents.
D
           The Judgment of the Court was delivered by
          KURIAN, J. 1. The original owner-landlord/Mr. Satish Chander
  · Aggarwal (who is no more) filed an application for eviction in the year
    1975 on tiµ: ground of bona fide requirement for expansion of family
E   business in the name and style ofM/s. Roop Krishna Traders.
              2. The Rent Controller dismissed the petition. The First Appellate
       Authority reversed the fo1ding and granted eviction, on a finding that the
       premises was required for the business of the landlord. It is on record
       that the First Appellate Authority had undertaken a spot inspection so as
F      to satisfy himself as to the bona fide need of the landlord.
          3. The aggrieved tenant carried the matter before the High Cou11
   in a petition under Article 226 of the Constitution of India. In the
  .meanwhile Mr. Satish Chander Aggarwal died on 04.07.2005. The death
   occurred after the order passed by the Rent Controller as well as the
G  First Appellate Authodty.
          4. The High Court, taking note of the fact that the original landlord
   has expired, declined to go into the question of bona fide requirement.
   According to the High Court, the bona f!de requirement of the father is
   one thing and the bona fide requirement of the son and daughter, who
   have been continuing the business of the father, is a distinct cam~e of
H
 SATISH CHANDER AGGARWAL (D) BY LRS. v. SHYAM LAL                                713
          OM PRAKASH, ARHTI [KURIAN, J.]

action and the same need to be separately established. Therefore,                A
granting liberty to the surviving legal heirs to pursue the eviction in
accordance with law, the writ petition was allowed setting aside the
order passed by the First Appellate Authority. Aggrieved the uppeal.
      5. Heard Mr.A.K. Ganguli, learned senior counsel and Mr. Smtjay
Bansal, learned counsel, appearing for the appellants and Mr. Arun                B
Aggarwal, learned counsel appearing for Respondent Nos. I and 2.
        6. The crucial question is;whether the bona fide requirement, as
established by the original landlord/Mr. Satish Chander Agg~rwal, would
meet the requirement under Section 2l(a) of the U.P. Urban Building
Act as far as surviving legal heirs are concerned. It is not in dispute that      c
the business that had been carried on by Late Mr. Satish Chander
Aggarwal is being continued by his legal heirs. It is a family business. lf
that be so, the requirement, as established and which has been upheld by
the Appellate Authority after conducting even a spot inspection, in our
view, satisfies the requirements of bona fide need of the landlord. No
doubt, in a given case the bona fide requirement of the origfoal landlord         D
and that of the surviving legal heirs may vary. But in the case before us,
since it is family business and since the landlord has established the
requirement of the premises for the family business, we are of the view
that it is not necessary to relegate the legal heirs for another round of
litigation for eviction.                                                          E
       7. In that view of the matter, the order passed by the High Court
is set aside and the appeal is allowed. The order passed by the First
Appellate Authority for eviction is restored. I.A .. No.5 of 2017 also
stands disposed of.
      8. Learned counsel for the respondents submit that they are no              F
more interested in keeping the premises, in view of the order passed as
above, and hence it will be open to the appellants to take physical
possession of the premises. The above submission' is recorded.
                      '·t:,

       9 Pending applications, if any, shall stand disposed of.
                                                                                  G
       I 0. There shall be no orders as to costs.


Ankit Gyan                                                     Appeal allowed.


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