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Supreme Court of India

VISHWAMITRA RAM KUMARversusM/S. VESTA TIME COMPANY

Citation
2007 INSC 383
Decided
5 April 2007
Disposal
Appeal(s) allowed

Holding

The landlord is entitled to a decree for eviction under Section 13(1)(f) as his claim is bona fide and he satisfies the obligations of Section 18A.

Summary

The landlord of an eight‑room building filed seven suits under Section 13(1)(f) of the West Bengal Premises Tenancy Act, 1956 seeking eviction of tenants for rebuilding. The trial court dismissed the suits for lack of proof of a bona‑fide rebuilding need and financial capacity, and the High Court affirmed the dismissal, refusing fresh evidence under Order XLI Rule 27 of the CPC. On appeal, the Supreme Court held that the law on eviction for reconstruction is settled and that the landlord had shown a genuine need, financial means, and willingness to satisfy Section 18A by providing tenants with suitable accommodation. The Court allowed the appeals, directing the trial court to pass eviction decrees under Section 13(1)(f) and to ensure tenants are reinstated in the reconstructed building, with a modified plan to give them at least 50% of their current area. The judgment clarifies that giving up a claim for own occupation does not preclude a bona‑fide rebuilding claim and that fresh evidence may be admitted when relevant.

Issues considered

  • The landlord's claim for eviction under Section 13(1)(f) is bona fide despite having abandoned the claim for own occupation under Section 13(1)(ff).
  • Whether the landlord must prove that the existing building is structurally unsound or that demolition is necessary.
  • Whether the landlord must demonstrate financial capacity to undertake reconstruction.
  • Whether fresh evidence can be adduced in appeal under Order XLI Rule 27 of the CPC.
  • The extent of the landlord's obligation under Section 18A to reinstate tenants in the reconstructed premises.

Legislation cited

Subjects

evictionreconstructionWest Bengal Premises Tenancy ActSection 13Section 18Abona fidelandlord-tenantadditional evidenceOrder XLI Rule 27rent control

Judgment

A                           VISHWAMITRA RAM KUMAR
                                            v.
                             MIS. VESTA TIME COMPANY

                                     APRIL 5, 2007

B                 [H.K. SEMA AND P.K. BALASUBRAMANYAN, JJ.]


            Rent Control and Eviction:

            West Bengal Premises Tenancy Act, 1956; Ss. 13(1)(/) & 18(A):
c
          Landlord filing Eviction Petition on ground of re-building/
   reconstruction-Rejected by trial Court holding that neither the requirement
    of rebuilding established nor financial capacity shown by the landlord-
   Appeal dismissed by High Court-On appeal, Held: LaW on eviction on
D ground of rebuilding settled-Landlord is under the obligation to put tenants
    back in possession-Though landlord intends to occupy the floors other than
   the ground floor for the residential purposes, but he is in a position to satisfy
   the requirement of s. l 8A of the Act-Therefore, it could not be held that the
   claim for eviction on ground of rebuilding is not bonajide-High Court was
   not justified in not accepting the evidence produced by the landlord to show
E that he has means to undertake the reconstruction-Thus, landlord had
   made out grounds for eviction uls. 13(1)(/) of the Act-However, under the
  facts and circumstances of the case, it would be appropriate to direct the
   landlord to slightly alter the plan and adJU:St the tenants on ground floor;
   if need arise-Landlord is entitled to decrees for eviction under s.13 (1)(/)
F of the Act-Trial Court is directed to pass decrees and consequential orders
   in terms of s. l 8A of the Act when moved in that behalf by the landlord.

            Seven suits were filed by the landlord of a line building consisting of
      eight rooms for eviction of the tenants on the ground of rebuilding under
      Section 13(l)(f) of the West Bengal Premises Tenancy Act, 1956. Trial Court
G     rejected the claim for eviction and dismissed the suit holding that the
      requirement for rebuilding has not been established by the landlord; and th.at
      the landlord had not shown the financial capacity to rebuild. It appeals before
      the High Court, the landlord invoked Order XLI Rule 27 of the Code of Civil
      Procedure seeking to adduce additional evidence in that court in the form of
      a renewed approved plan for the construction of the building and documents
I-I                                        926
                 --f


-. _,,                               VISHWAMITRA RAM KUMAR 1•. VESTA TIME COMPANY                   927
                       for allegedly showing his financial capacity to rebuild. The High Court              A
                       dismissed the appeals holding that no ground was made out by the landlord to
                       permit him adducing of fresh evidence in appeals. Hence the present appeals.

                             Appellant-landlord contended that both the trial court and the High Court
                       were in error in dismissing the claim for eviction under Section 13(l)(f) of
                       the Act especially in the context of the law laid down by this Court in Vijay        B
                       Singh Etc. Etc. v. Vijaylakshmi Ammal, [1996) Supp. 7 S.C.R. 385; that it was
                       not necessary for the landlord to show that the building was about to fall down
                       while seeking a decree for eviction under Section 13(l)(f) of the Act; that all
                       relevant circumstances had to be considered while entertaining a claim under
                       Section 13(1 )(t) of the Act; and that what the landlord has given up was the
                       need to occupy the entire building after reconstruction and had expressed
                                                                                                            c
                       his willingness to give back the"ground floor to the tenants by confining his
                       claim to one under Section 13(l)(f) of the Act.

                              Respondent-tenants submitted that the Courts below have rightly
                       construed the pleadings in the plaint and have correctly understood the              D
         '('           consequences of the landlord giving up its case for eviction on the ground of
                       own occupation; that the two claims were inextricably interlinked in the case
                       and when one of them falls, the other had automatically to fall; that the building
                       was structurally sound; that the offer to put the tenants back in possession of
                       30% of the areas now occupied by them, was not in consonance with the spirit
                       of Section ISA of the Act; and that though a tenant may no be in a position to       E
                       insist that he must have be identical area in the reconstruction building also,
                       when the whole area could not be reconstructed in the light of the relevant
                       building laws, that would not mean that the tenants will be unreasonably
                       deprived of the areas in their possession just to suit the convenience of the
                       landlord.
 ,   .    __,,
                                                                                                            F
                             Allowing the appeals, the Court

                             HELD: 1.1. The law on the adjudging of a claim for eviction by a landlord
                       on the ground of reconstruction or rebuilding is settled. (Para 9) (935-B)

                             VijaySingh Etc. Etc. v. Vijaylakshmi Ammal, [1996) Supp. 7 S.C.R. 385,         G
                       followed.

         .r                 Neta Ram v. Jiwan Lal, [1962) Supp. 2 S.C.R. 623 and S. Venugopal v.
                       A. Karruppusami & Anr., [2006) 4 S.C.C. 507, relied on.

                             Kalliani & Ors. v. Madhavi & Ors., (1970) K.L.T. 257, referred to.             H'
    928                     SUPREME COURT REPORTS                    [2007] 4 S.C.R.
                                                                                                ,'
A         1.2. The trial court and th~ High Court were, to a great extent, carried
    a~ay by the fact that the landlord gave up his claim for eviction under Section
    13(1)(ft) of the West Bengal Premises Tenancy Act, even while attempting to
    pursue his claim for eviction under Section 13(1)(f). No doubt, there is some
    confused pleading by the landlord in the plaint by mixing up the claim for
B   eviction under Section 13(l)(ff) and Section 13(1 )(f) of the Act. But all the
    same, by the time the matter came up for trial, both sides knew that the claim
    was based solely on the ground under Section 13(1)(f), namely, bona fide need
    for rebuilding after demolition of the existing structure. The landlord had
    realized his obligation to put the tenants back in possession in terms of Section
    18A of the Act. Therefore, when the parties went to trial, the issue was really
C   the claim for eviction under Section 13(1)(f) of the Act and it was so
    understood by both the parties. [Para 11] (937-D-E)

           1.3. No doubt, the landlord still intends to occupy the floors other than
    the ground floor for residential purposes. But, so long as he is in a position
    to. satisfy the requirement of Section 18A of the Act consistent with the
D   building to be put up in terms of the relevant building laws, it could not be
    held that the claim for eviction on the ground of rebuilding is not bona fide.
                                                                  (Para 12) (937-F]

          1.4. An intention to put the building to better use by way of earning
    better income consistent with the developments in the locality, cannot be held
E   to be not a bona fide i.nt«:.ntion, unless of course there is some clear material
    negativing the bonafides of such an intention. Nothing could be seen in the
    present case which would militate against the bonafides of that intention of
    the landlord. (Para 12] [937-H; 938-A)
                                                                           .,
          1.5. It is no doubt true that a shop room is in possession of the landlord,
F
    the same having been vacated by a tenant and the claim for eviction relates to      r
    the other seven rooms in the possession of tenants. Even if a staircase is
    provided in that portion in the possession of the landlord, the question still
    remains whether he could be permitted to put up one or more floors in the
    building as proposed by him in view of the relevant Building Rules and their
G   possible violation. Thus, viewed from these angles, which are relevant
    considerations as indicated by t~e decisions referred to by this court, it cannot
    be said that the need put forward by the landlord is not a bona fide one.
                                                                  [Para 12] (938-A-C)   .....

          1.6. The landlord in his evidence has held out that he has the means to
H undertake the reconstruction. Before the Appellate Court, he has also
                    VISHWAMITRARAMKUMAR1•. VESTATIMECOMPANY                      929

      produced some evidence in that regard. These aredays when finances for such A,
      construction activity are more easily available as judicially noticed by one of
      the decisions. There is no justification for doubting the financial capacity of
      the landlord to rebuild. The landlord has shown that he has got the validity of
      the approved plan for rebuilding extended. The High Court was not justified
      in not accepting the evidence produced by the landlord in appeal The landlord B;
      has made out the ground for eviction under Section 13(1 )(t) of the Act on the
      facts and in the circumstances of the case. Hence, finding of the High Court
      is reversed in that regard. [Para 13) [93S-E-F)

            2. Under Section ISA of the Act, the landlord in acase of eviction under
      Section 13(l)(f) of the Act has the obligation to put the tenants back in         0 ·.·
      possession of rooms in the reconstructed building, that is an obligation
      attached to any decree for eviction that may be passed under Section 13(1)(t)
      of the Act. Certainly, any attempt to defeat that obligation under Secti()n 18A
      of the Act cannot be encouraged and should be put down with an iron hand.
                                                                   (Para 14) (938-(i)

            3.1. When the new construction to be put up consists only of a plinth
      area of about 55% of the existing construction, it will be reasonable for the
      tenants to be expected to be put back in possession of at least 50% of the

..    areas now in their occupation. (Para 15) (939-D)

             3.2. The landlord has also to provide a staircase or a lift well and for E   1




      that reasonable space on the ground floor is required. Under the circumstance,
      it will be appropriate to direct the landlord to slightly alter his plan so that
      after accommodating the tenant running a Pan Shop in a small area, the rest
      of the tenants could be provid~ with 50% of the areas now occupied by them,
      by accommodating, if need be, one or two three of them (tenants holding the F
...                                                                                     I
      larger extents) on the first floor. For this, the landlord will seek a slightorly
      modified plan from the concerned Authority which will grant it expeditiously
      in the interests of the tenants and will ensure that all the Building Laws are
      respected by the landlord while constructing. The modified plan will be
      produced by the landlord before the trial court so as to enable that court to
      pass formal decrees for eviction and consequential orders for the tenants ~ing. G,
      put back in possession in the reconstructed building as directed above in terms
      of Section ISA of the Act. [Para 15] [939-F-G)                                    ....
                                                                                           I.


           3.3. It is trusted that the concerned Authority when approached in that
      behalf will take note of the fact that the direction of this Court is in the      H,
    930                      SUPREME COURT REPORTS                       [2007] 4 S.C.R.

A interests of the sitting tenants in the building and that the little modification
    needed in the Plan is permitted without violating any of the Building Laws.
                                · ·,                   (Para 15) (939-G; 940,.A]

          3.4. The landlord ~s entitled to decrees for evic~ion under Section 13(l)(f}
   .of the Act. The trial Court is directe_d to expeditiously, pass decrees and
B _consequential orders in terms of Section 18A o~ the Act when moved in that
  . behalf by_ the landlo~d and to pass t~e consequential decrees.
                                                                   (Para 16) (940-D]

          CIVIL APPELLATE JURISDICTI.ON: Civil Appeal No. 1829 of2007 .
                                                              •
c         From the Final Judgment and Order dated 25.02.2005 of the High Court
    of ~olkata at Kolkata in F'.A. No. 9 of 1997.  .      '              · .

                                           . WITH

          C.A. Nos.· 1830-1835 of2007.
D
         Ranjit Kumar Sr. Adv:, Dhruv Mehta,· Hiren Dasan, Harshvardhan Jha,               .,_
    Yashraj Singh Deora and Sarla Chandra for the Appellant.

         J. Gupta Sr. Adv., Rana. Mukherjee, Sid_dhar:fh. Gautam and Goodwill
    Indeeevar for the Respondent.
E
          The -Judgment
             '
                                    .
                    . of the Court was.delivered by :
                                    ·'     ~
                                               .
          P.K· BALASUBRAMANYAN;J. I :Leave granted: "
                                                                          .. ,
           2. Seven suits were filed by the landlord of a line building consisting
F   of eight· rooms, for eviction of the tenants on the ground of rebuilding under
    Section 13(I)(t) of the West Bengal Premises Tenancy Act, 1956 (hereinafter
    referred.to as, '~the Act"). The relevant pleading in the plaint was not happy
    and the claim for rebuilding was mixed up with the requirement for own
    occupation, a ground covered by Section 13(1)(ff) of the Act. At the stage
G   of trial or even before, the landlord gave tip the claim under Section 13(1)(ft)
    of the Act of reasonably requiring· 'the suit premises for its own use and
    purpose. It may be mentioned that the landlord is said to be a partnership firm.
                                                                  I" l

          3. In support of the claim for eviction under Section 13(1)(t) of the Act,
    it was pleaded that the. building was 100 years old; that it was situate in a
H   mixed locality but mainly residential; that even at the time of the purchase of
  VISHWAMITRA RAM KUMAR v. VESTA TIME COMPANY [BALASUBRAMANY AN, J.J93 J'

  the building, the intention of the landlord was to reconstruct the building and A
  occupy a portion of it, being the upstair portion of the building; that the claim
  for eviction on the ground of rebuilding was bona fide; and that the landlord'
  was entitled to a decree for eviction considering the entire circumstances1
  available. It was also disclosed that one of the rooms in the building was in,
  the possession of the landlord, the same having been surrendered by a tenant.
  earlier and that after reconstruction, the landlord would be in a position to B
  provide separate rooms to the seven tenants remaining, but that the area to '
  be given to each tenant, would be only 30% of what they now held in the ·
  building. It was also brought out that the entire land was occupied by the ·
  building and there was not even a staircase to go to the roof of the building ·
  and the only way to reach the roof was by the use of a ladder. It was further C
  brought out that as per the rules existing, a car parking facility in the basement ,
  has to be provided and construction could be only in about 55% of the area
  presently occupied by the I 00 years old building. In evidence, one of the
  partners examined on behalf of the landlord stated that the landlord was '
  willing to give 30% of the area presently occupied by each tenant in the '
· reconstructed building and the landlord proposed to occupy the first, second , D
  and third floors intended to be put up, leaving the ground floor for occupation
  by the tenants.

        4. The tenants resisted the separate suits. They questioned the bona ·
 jides of the claim made by the landlord. They pointed out that the landlord          E
 having given up the claim for eviction on the ground of own occupation had
 become disentitled to any relief at all in the suits since the need for rebuilding
 was interlinked with the need for own occupation projected in the plaint.
 While being examined, the landlord was asked questions about the financial
 capacity to rebuild and even questions on the title of the firm as set up in
 the plaint. In his evidence, one of the tenants examined, stated that the            ;F
 building did not require reconstruction and that it was not possible to cany
 on the business that is being carried on in the building in only 30% of the
 area presently occupied by that tenant. It was brought out that out of the
 seven tenants, one was running a Pan Shop and the other six were running
 watch sales cum repair shops.
                                                                                      G
        5. The suits were jointly tried and disposed of by a common judgment
  by the trial court. The trial court held that the plaintiff finn was the owner of
  the building and there subsisted the relationship of landlord and tenant
· between the firm and the tenants. It further held that the premises is a one
  storeyed building having no vacant space on the side, back or front and the         ~
    932                        SUPREME COURT REPORTS                 [2007] 4 S.C.R.

A building covered the entire land. The building had no staircase of its own for
    going to the roof and one had to put up a ladder to climb on to the roof. The
    suit building was situated in a predominantly commercial area. It was evident
    that the proposed building    will
                                     have a car parking space in the basement and
    the ground floor will be used for shop rooms and the upper floors will be for
B residential purposes. It was also evident that the landlord would be able to
    accommodate the existing tenants in the ground floor only to the extent of
    30% of the area at present in their occupation. Though the building was 100
    years old, the landlord had not got the building inspeckd by any Engineer
    to report about the physical condition of the building. The trial court rejected
    the claim for eviction by finding that the requirement for rebuilding has not
C been established by the landlord. The trial court also found that the landlord
    had not shown the financial capacity to rebuild. The suits were dismissed.
    The landlord filed appeals in the High Court. In the appeals, the landlord
    invoked Order XLI Rule 27 of the Code of Civil Procedure seeking to adduce
    additional evidence in that court in the form of a renewed approved plan for
    the construction of the building and documents for allegedly showing the
D financial capacity of the landlord to rebuild. The High Court took the view
    that no ground was made out for permitting the adducing of fresh evidence
    in appeals. The High Court, reiterating the reasons given by the trial court,
    dismissed the appeals. The High Court was of the view that since the plaintiff
    had abandoned its case of reasonable requirement of the suit premises for a
E . residential purpose, it became apparent that it had no reasonable requirement
    for the purpose of rebuilding the suit premises upon demolition of the existing
    structure. Even while affirming the finding that the building was 100 years old,
    the High Court held that there was no evidence about the condition of the
    building, which would enable the court to hold that the claim for rebuilding,
    upon demolition of the existing structure, was a reasonable necessity. After
F noticing Section 18A of the Act which entitled the tenants in case of eviction
    for rebuilding, to get back the building after reconstruction, the High Court
    held that the landlord had not made out a case for ·grant of a decree for
    eviction under Section 13(l)(t) of the Act. It proceeded to say that no order
    was required to be passed on the application under Order XLI Rule 27 of the
G Code seeking permission to adduce additional evidence, in the light of the
    finding that the landlord had not made out a case for rebuilding. It was thus
    that the decrees of the trial court were confirmed and the appeals dismissed.

             6. Section l3(l)(t) of the Act providing one of the grounds for eviction
    reads:
H
               --r
                      VISHWAMITRA RAM KUMAR 1·. VESTA TIME COMPANY [BALASUBRAMANYAN, J.J933
       .,.
                             "13( 1)(t). Subject to the provisions of sub-section (3A) and Section          A
                             18, where the premises are reasonably required by the landlord for
                             purposes of building or rebuilding or for making thereto substantial
                             additions or alterations, and such building or rebuilding or additions
                             or alterations, cannot be carried out without the premises being
                             vacated."
                                                                                                            B
                     Section 18A of the Act confers a right on the tenant who is evicted under
       .....
                     Section 13(1 )( t) of the Act, to be restored to possession in the reconstructed
...                  building as laid down therein. The court has to specify, while passing a decree
                     for eviction under Section 13(1)(t) of the Act, the period within which the
                     rebuilding has to be done, subject to a right in the court to extend the time
                     in appropriate cases. On completion of the building, the premises has to be
                                                                                                            c
                     offered to the tenant. If the landlord does not put the tenant in possession,
                     the tenant is entitled to approach the Rent Controller for a direction in that
                     behalf and for consequences arising therefrom. In other words, the Act
                     confers a right on the tenant evicted under Section 13(1 )(t) of the Act to be
                     put back in possession of the premises after its rebuilding. The provision also        D
                     contemplates that in appropriate cases, the tenant may be put in possession
                     of such part of the rebuilt premises as the Rent Controller may specify. As
                     there is no argument based on Section 13(3A) of the Act, it is not relevant
                     for the disposal of these appeals.

                            7. Learned counsel for the plaintiff - appellant contended that the trial       E
                     court and the High Court were in error in dismissing the claim for eviction
                     under Section l3(1)(t) of the Act especially in the context of the law laid down
 ·-                  by this Court in Vijay Singh Etc.Etc. v. Vijaylalakshmi Amma/, [1996] Supp.
                     7 S.C.R. 385. It is submitted that it was not necessary for the landlord to show
                     that the building was about to fall down while seeking a decree for eviction
                                                                                                            F
        :            under Section 13( l )(t) of the Act. All relevant circumstances had to be
                     considered while entertaining a claim under Section 13(l)(t) of the Act. The
                     bona tides of the claim of the landlord in the context of whether the object
                     was only to get rid of the tenants, the age and condition of the building, the
                     financial position of the landlord to demolish and erect a new building, the
                     locality in which the building is situated are all relevant aspects to be considered   G
                     by the court. Here, the court had misunderstood the case of the landlord and
                     has erred in proceeding on the basis that since the landlord has given up his
      .....          claim for eviction under Section 13(l)(ff) of the Act for own occupation, the
                     landlord could not pursue his claim for eviction under Section 13(l)(t) of the
                     Act. Learned counsel submitted that what the landlord has given up was the
                                                                                                            H
    934                     SUPREME COURT REPORTS                    [2007) 4 S.C.R.

A need to occupy the entire ~uilding after reconstruction and had expressed his
    willingness to give back the ground floor to the tenants by confining his claim
    to one under Section l3(l)(f) of the Act. The decrees declining relief call for
    interference. Learned counsel for the tenants on the other hand submitted
    that the trial court and the High Court have rightly construed the pleadings
B   in the plaint and have correctly, understood the consequences of the landlord
    giving up its case for eviction on the ground of own occupation. The two
    claims were inextricably interlinked in the case and when one of them falls,
    the other had automatically to fall. Even otherwise, the landlord had not
    established that it had the financial capacity to rebuild. The building was
    structurally sound. The offer to put the tenants back in possession of 30%
C   of the areas now occupied by them, was not in consonance with the spirit
    of Section l 8A of the Act. Though a tenant may not be in a position to insist
    that he must have the identical area in the reconstruction building also, when
    the whole area could not be reconstructed in the light of the relevant building
    laws, that would not mean that the tenants will be unreasonably deprived of
    the areas in their possession just to suit the convenience of the landlord. The
D   High Court was also justified in not permitting the landlord to adduce additional
    evidence in the appeals and even otherwise, what was sought to be produced
    as additional evidence was inadmissible material and it did not in any manner
    show that the landlord had the financial capacity to reconstruct the building
    as proposed.
E        8. During the course of the hearing, it was submitted on behalf of the
   landlord that the landlord was in occupation of 700 square feet as surrendered
   by one of the tenants and the landlord was willing, while reconstructing the
   ground floor, to give the remaining tenants that area also with the result that
   the areas to be put in their possession would be something more than 30%
F of the present areas occupied by them. It was submitted that the carpet area
                                                                                        y
   at present available was 2200 square feet and after reconstruction, it would
   come to 738 square feet only and this entire area other than the area needed
   for constructing a convenient staircase, the landlor~ was willing to divide
   among the tenants thus giving up 236.50 square feet which the landlord was
G entitled to keep proporti~nately. It ~as submitt~d that o~ly a convenient :rrea
 · needed for the construction of a starrcase for go mg upstarrs would be retained
   by the landlord. On behalf of the tenants, it was submitted that the tenants
   were willing to suffer decrees for eviction provided the landlord was willing
   to give them equal areas in the reconstructed building and that any reduction
   in the respective areas occupied by tenants would practically put them out
H of business and hence the tenants were not in a position to agree to decrees
VISHWAMITRA RAM KUMAR 1•. VEST A TIME COMPANY [BALASUBRAMANY AN, J.J93 5

for eviction. It was pointed out that the landlord had not made a bona fide      A
attempt to ensure that a plan for rebuilding is prepared causing the least
prejudice to the tenants as is evident from the evidence of the Architect P.W.
5 and in that context, the present offer was not a reasonable one which could
be accepted by the tenants.

     9. The law on the adjudging of a claim for eviction by a landlord on the    B
ground of reconstruction or rebuilding is settled. In Neta Ram v. Jiwan Lal,
[1962] Supp. 2 S.C.R. 623, this Court held:

        "The Controller has to be satisfied about the genuineness of the
        claim. To reach this conclusion, obviously the Controller must be
        satisfied about the reality of the claim made by the landlord, and this C
        can only 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 a more profitable use after construction,
        the means of the landlord and so on. It is not enough that the landlord
        comes forward, and says that he entertains a particular intention, ,D
        however strongly, said to be entertained by him. The clause speaks
        not of the bona tides of the landlord, but says, on the other hand, that
        the claim of the landlord that he requires the building for reconstruction
        and re-erection must be bona fide, that is to say, honest in the
        circumstances. It is impossible, therefore, to hold that the investigation
        by the Controller should be confined only to the existence of an E
        intention to reconstruct, in the mind of the landlord. This intention
        must be honestly held in relating to the surrounding circumstances."

In Kalliani & Ors. v. Madhavi & Ors., (1970) K.L.T. 257, a learned judge of
the Kerala High Court (as he then was) after referring to the decision in Neta   F
Ram (supra) stated:

       "It is obvious, therefore, that a wider and more realistic meaning must
       be given to the expression "condition of the building". The social
       purpose of this provision is to remove the road blocks in the way of
       progress in building programmes. Old structures in newly developing G
       areas may be like pimples on fair faces. Replacement and renewal of
       obsolescent and unsightly buildings to make room for larger, modem
       constructions is a social necessity, provided existing tenants are not
       thrown into the streets. The "condition of the building" is a larger
       concept which includes considerations of social surroundings and
       allied factors. Where the building is very old and incongruous with H
    936                     SUPREME COURT REPORTS                    [2007] 4 S.C.R.

A           the social setting and the surroundings of the place, the Court has got
            to take a more liberal view in applying the provision of law. However,
            the primary purpose of the statute viz., prevention of unreasonable
            eviction must also infonn the Court when applying this provision."

    In Vijay Singh (supra), a Constitution Bench of this Court held:
B
            "For recording a finding thaLrequirement--for demolition was bona
            fide, the Rent Controller has to take into account : (1) bona fide
            intention of the landlord far from the sole object only to get rid of the
            tenants; (2) the age and condition of the building; (3) the financial
            position of the landlord to demolish and erect a new building according
c           to the statutory requirements of the Act. These are some of the
            illustrative factors which have to be taken into consideration before
            an order is passed under Section 14(l)(b). No court can fix any limit
            in respect of the age and condition of the building. That factor has
            to be taken into consideration along with other factors and then a
D           conclusion one way or the other has to be arrived at by the Rent
            Controller."

    The principle stated in Vijay Singh (supra) was followed in S. Venugopal v.
    A. Karruppusami & Anr., (2006] 4 S.C.C. 507, wherein the developments in the
    surroundings areas was also taken into consideration while adjudging the
E   bona fides of the claim for eviction on the ground of reconstruction.

           10. Applying these tests to the facts of the present case, what do we
    get? The building is admittedly l 00 years old. It is a single storeyed building.
    There is no access by way of a staircase to go to the roof of the building.
    The actual structure occupies the entire land leaving no further option for              ·•
F   addition to the existing structure. The building is in a fairly important locality
    in the city of Calcutta. The area appears to be an area of mixed use, not totally
    residential, not totally commercial. In this context, the landlord pleads that he
    requires the building for putting up a four storeyed building after demolishing
    the existing structure. He points out that as per the present Building Rules,
G   he has to have a basement for car parking and he can have a construction
    only in about 55% of the area of the land available. He intends to give the
    existing tenants corresponding areas in the ground floor but reduced to 30o/~:'
    of the area currently in their occupation in view of the building restrictions· ·
    and intends to use the other floors for the residential purposes of the landlord.
    The landlord is a firm of which two brothers are partners. As against this,
H   what is pointed out is that the landlord has not made available any evidence




                                                                                         I
                     i
                         VISHWA MITRA RAM KUMAR"· VESTA TIME COMPANY [BALASUBRAMANY AN, J .J93 7

 ,,,                     to show that the building was in such a physical condition that it required A
           ...           reconstruction. There was nothing to show that the building was structurally
                         weak. The landlord was a builder and his idea was merely to evict the tenants
                         and this is clear from his original claim for eviction on the ground of bona
  ;                      fide need for own occupation under Section 13(1)(ff) of the Act, which was
                         subsequently given up. The landlord had not led clear evidence to show that'
                         the firm has or the partners have the means to construct the proposed new B
                         building. No doubt, the landlord has an approved plan, the period of validity
                         of which stood subsequently extended, but in the proposed building, the
           -.,.
                         tenants are to be allotted only areas equivalent to 30% of the areas presently
   .                     occupied by them. This would make it impossible for the tenants to carry on
                         their existing businesses and the circumstances taken as a whole, would show      c
                         that the claim of the landlord was not bona fide but was a mere pretext for
                         evicting the tenants.

                                11. We find that the trial court and the High Court were, to a great
                         extent, carried away by the fact that the landlord gave up his claim for eviction ·
                         under Section 13(1)(ff) of the Act, even while attempting to pursue his claim ,D
                         for eviction under Section 13(1)(f) of the Act. No doubt, there is some
                         confused pleading by the landlord in the plaint by mixing up the claim for
                         eviction under Section 13(1)(ff) and Section 13(1 )(f) of the Act. But all the
                         same, by the time the matter came up for trial, both sides knew that the claim
   '
___,                     was based solely on the ground under Section 13(l)(f), namely, bona fide
                                                                                                             E
                         need for rebuilding after demolition of the existing structure. The landlord had
                         realised his obligation to put the tenants back in possession in terms of
                         Section I SA of the Act. Therefore, when the parties went to trial, the issue



-  f'        ....,
                         was really the claim for eviction under Section 13(1)(f) of the Act and it was
                         so understood by both the parties.

                               12. No doubt, the landlord still intends to occupy the floors other than
                         the ground floor for residential purposes. But, so long as he is in a position
                                                                                                           F

                         to satisfy the requirement of Section 18A of the Act consistent with the
                         building to be put up in terms of the relevant building laws, it could not be
                         held that the claim for eviction on the ground of rebuilding is not bona fide.
                         After all, the building is 100 years old. It is situated in a growing city like   G
                         Calcutta and it is fetching a meagre income for the landlord by way of rents.
   "   ~


                         Surely, an intention to put the building to better use by way of earning better
                         income consistent with the developments in the locality, cannot be held to
---...     Jfr           be not a bona fide intention, unless of course there is some clear material
                         negativing the bona fides of such an intention. We do not see anything in
                                                                                                           »
                                                                                        -t-
    938                     SUPREME COURT REPORTS                    {2007) 4 S.C.R.

A   the present case which would militate against the bona tides of that intention
                                                                                                          :--
    of the landlord. Coupled with this, is the fact that the landlord wants to                 ~


                                                                                                             \
    occupy the upstair portions of the building after reconstruction. Clearly, he
    cannot do so now, by building over the existing structure, in view of its
    location and in view of the absence of a staircase to go upstairs and the age
    of the structure. It is no doubt true that a shop room is in possession of the
B   landlord, the same having been vacated by a tenant and the claim for eviction                         ,'-
    relates to the other seven rooms in the possession of tenants. Even if a
    staircase is provided in that portion in the possession of the landlord, the
    question still remains whether he could be permitted to put up one or more
                                                                                                          .
    floors in the building as proposed by him in view of the relevant Building
                                                                                                        ~

c   Rules .and their possible violation. Thus, viewed from these angles, which are
    relevant considerations as indicated by the decisions referred to by us earlier,
    it cannot be said that the need put forward by the landlord is not a bona fide
    one. We are therefore of the view that the High Court and the trial court were
    not justified in finding that the bona tides of the claim under Section 13(1 )(f)                 ---..,.
                                                                                                         j
    of the Act for eviction of the tenants is not made out by the landlord.
D
           13. The landlord in his evidence has held out that he has the means to
    undertake the reconstruction. Before the Appellate Court, h~ has also produced            -...
    some evidence in that regard. These are days when finances for such
                                                                                                          ~
    construction activity are more easily available as judicially noticed by one of
    the decisions. We see no justification for doubting the financial capacity of
E                                                                                                         ;..
    the landlord to rebuild. The landlord has shown that he has got the validity
    of the approved plan for rebuilding extended. The High Court, in our view,
    was.not justified in not accepting the evidence produced by the landlord in
    appeal. We are satisfied that the landlord has made out the ground for                                ,.
    eviction under Section 13{l)(f) of the Act on the facts and in the circumstances                    ,.
F   of the case. We reverse the finding of the High Court in that regard.

            14. Under Section l 8A of the Act, the landlord in a case of eviction             ,..-      );-
     under Section 13(l)(f) of the Act has the obligation to put the tenants back
                                                                                                         ~·
    in possession of rooms in the reconstructed building, that is an obligation
    attached to any decree for eviction that may be passed under Section 13(l)(f)
G   of the Act. Certainly, any attempt to defeat that obligation under Section 18A
    of the Act cannot be encouraged and should be put down with an iron hand.                             ~
    In other words, the landlord will be pinned down to his obligations under                           i--

    Section l 8A of the Act and would not be allowed to extricate himself from-
    it or d~lay the performance of his obligations by resort to devious means. But,           4-; -

H   that is different from saying that because of the right available to the tenant
                     VISHWAMITRARAMKUMAR1·. VESTA TIMECOMPANY[BALASUBRAMANYAN,J.) 939


          ~
                     under Section ISA of the Act, an order for eviction under Section 13(l)(t) of     A
                     the Act cannot be passed unless the building is about to fall down over the
                     head of the occupant.

                            15. It is the case of the landlord that under the present Building Rules,
..                   he has to use the basement for providing parking space and construction can
                     be made only in about 55% of the land available on demolition of the existing B
                     building. It is not shown that this claim is not true, or that it is unsustainable. I
         .           No doubt, P.W. 5 was not instructed to prepare the plan ~ith the obligation
                     to the tenants in mind. It is the further case of the landlord that the landlord
                     is in a position to provide the tenants, seven in number, only with areas
                     roughly corresponding to 30% of the areas 'occupied by them. The landlord
                     has offered that the area in its possession on the ground floor, could also be
                                                                                                       c
                     made available to the tenants. Even then, the area available to the tenants
                     would fall short of the areas that are now in their possession or that may
                     normally be allotted to them. When the new construction to be put up
                     consists only of a plinth area of about 55% of the existing construction, it
                      will be reasonable for the tenants to be expected to be put back in possession D
                     of at least 50% of the areas now in their occupation. According to the
         -..,   ..
                      landlord, he proposes to provide all the tenants with rooms in the ground
                     floor. It is seen that one of the rooms is occupied by a tenant who runs a
                     Pan Shop therein and he is at present in occupation of an area of 5 square
                     feet only. Two of the tenants are in occupation of only about 62 square feet;
     /
                     one of the tenants is in occupation of 184 square feet and another in occupation
                                                                                                         E
                     of 292 square feet. One of the tenants is in occupation of 315 square feet and
                     the other is in occupation of 580 square feet. The landlord has also to provide


-                    a staircase or a lift well and for that reasonable space on the ground floor is
                     required. We think that it will   be appropriate to direct the landlord to slightly
                     alter his plan so that aaer accommodating the tenant running a Pan Shop in F
                     a small area, the rest of the tenants could be provided with 50% of the areas ·
                     now occupied by them, by accommodating, if need be, one or two or three
                     of them (tenants holding the larger extents) on the first floor. For this, the
                     landlord will seek a slightly modified plan from the concerned Authority
                     which will grant it expeditiously in the interests of the tenants and will ensure
                     that all the Building Laws are respected by the landlord while constructing.
                                                                                                         G
                     The modified plan will be produced by the landlord before the trial court so
                     as to enable that court to pass formal decrees for eviction and consequential
~


..
         ~
                     orders for the tenants being put back in possession in the reconstructed
                     building as directed above in terms of Section l 8A of the Act. We trust that
                     the concerned Authority when approached in that behalf will take note of the H
     940                      SUPREME COURT REPORTS                    (2007] 4 S.C.R.

.A fact th4lt our direction is in the interests of the sitting tenants in the building
     and that the little modification needed in the Plan is permitted without violating
     any of the Building Laws. If the Plan as such does not require any alteration
     in the light of our directions as per the relevant Building laws treating it as
     only an internal adjustment of the space on the ground floor and on the frrst
     floor, it will be open to the landlord to adopt such stand before the trial court
B    and seek decrees for eviction with consequential directions in terms of Section
     I SA of the Act. In that case, the trial court will satisfy itself on that aspect.
     We are sure that the trial court will expedite the passing of formal decrees for
     eviction in terms of Section 13(l)(t) of the Act in the context of Section ISA
     of the Act by imposing whatever conditions that are required in terms of the
C    statute.

             16. We, therefore, allow these appeals and hold that the landlord is
     entitled to decrees for eviction under Section l3(l)(t) of the Act. We direct
     the trial court to expeditiously pass decrees and consequential orders in terms
     of Section 18A of the Act when moved in that behalf by the landlord: We
·D   direct the trial court to pass the consequential decrees within three months
     of it being approached either with the existing plan or with the modified plan
     by the landlord as we have directed above. The parties will appear before the
     trial court for s~eking appropriate directions for further appearance on.14.52007.

     S.K.S.                                                         Appeals allowed.
E


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