High CourtDivision BenchAppeal dismissed. No order as to costs.

Mohinder Prasad Jain v. Manohar Lal Jain

Case / Petition Number:Civil Appeal No. 1263 of 2006
Neutral Citation:2006 (2) SCR 515

Case Details & Bench

Court
High Court
Hon'ble Judges
  • S.B. Sinha
  • P.K. Balasubramanyam
Judgment Date
2006-02-24
Court Decision / Holding
Appeal dismissed. No order as to costs.
Final Disposition
Appeal dismissed. No order as to costs.

Parties to the Case

Appellants / Petitioners

  • Mohinder Prasad Jain

Respondents

  • Manohar Lal Jain

Legal Representation & Advocates

Counsels for Petitioners

  • • Dr. Vikas Vashishth
  • • Kuldip Singh

Counsels for Respondents

  • • S.B. Sanyal
  • • B.K. Satija

Case Synopsis & Summary

Mohinder Prasad Jain v. Manohar Lal Jain is a Division Bench decision by S.B. Sinha, J., and P.K. Balasubramanyam, J., delivered on February 24, 2006. The appeal concerns eviction of a tenant from a shop under the Haryana Urban (Control of Rent and Eviction) Act, 1973 on the ground of bona fide personal requirement by a co-owner. The respondent, one of the co-owners, sought eviction to run a wholesale Ayurvedic medicines business. The Rent Controller dismissed on the ground that the bona fide need was not proved and that consent of other co-owners was not shown; the Appellate Authority allowed the eviction; the High Court affirmed. The appellant contends that the Rent Controller’s finding should not have been disturbed because the other co-owners’ consent should have been demonstrated, and that a co-owner cannot claim sole use without wider consent. The Court situates the issue in the evolving constitutional and statutory reception of the Act: after Harbilas Rai Bansal (1996) held unconstitutional, later decisions like Rakesh Vij (2005) upheld eviction on bona fide grounds for non-residential premises. The Court reiterates that a suit by a co-owner is maintainable and that consent of other co-owners is not required, though lack of consent may be a relevant fact if contested. It also endorses the agency doctrine from India Umbrella Manufacturing Co. and related cases to hold that one co-owner may file for eviction on behalf of all. The appeal is dismissed, with no costs.

Provisions of Law Cited

Haryana Urban (Control of Rent and Eviction) Act, 1973Section 13[E]Section 4

Legal Doctrines & Maxims

  • Doctrine of Agency (co-ownership eviction)
  • Consent of co-owners presumed as taken unless objected
  • Rights crystallised on the date of institution of the suit

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that a co-owner’s suit for eviction is maintainable without proving consent of other co-owners, and that a bonafide personal requirement for non-residential premises justifies eviction. The Rent Controller’s finding that no consent was shown should not overrule a valid bonafide need; lack of consent evidence cannot bar eviction where co-owners act as agents. The decision in India Umbrella Manufacturing Co. v. Bhagabandei Agarwal(a) supports the agency doctrine, and subsequent precedents (e.g., Rakesh Vij) validate eviction on bonafide grounds for non-residential properties.

Contentions of Respondents

The respondent argues that eviction based on bona fide personal requirement requires substantiation of such need and proper consent from all co-owners; non-joinder could be fatal depending on record. They rely on the earlier view that the Act’s non-residential bonafide provision was unconstitutional, and contend that the appellate body should have scrutinized the evidence more closely to determine bona fide use and co-owner consent.

Cited Precedents (8)

Case NameCitationTreatmentExplanation
Harbilas Rai Bansal v. State of Punjab & Anr.(1996) 1 SCC 1OverruledHarbilas Rai Bansal held the non-residential bonafide provision unconstitutional; this position was effectively overturned/modified by later decisions (notably Rakesh Vij) establishing eviction on bonafide grounds for non-residential premises.
Rakesh Vij v. Dr. Raminder Pal Singh Sethi & Ors.(2005) 8 SCC 504PositiveUpheld the ratio that a landlord under the Act can seek eviction on bonafide grounds for non-residential premises; later upheld by this Court.
Gian Devi Anand v. Jeevan Kumar & Ors.(1985) 2 SCC 683Mentioned OnlyReferenced as part of the background jurisprudence on eviction and co-ownership; not the central controlling authority in this judgment.
India Umbrella Manufacturing Co. & Ors. v. Bhagabandei Agarwal (Dead) by Lrs. Savitri Agarwal (Smt.) & Ors.(2004) 3 SCC 178PositiveEstablished that one co-owner may file for eviction and that the consent of other co-owners is presumed unless opposed; foundational for the agency doctrine.
Sri Ram Pasricha v. Jagannath(1976) 4 SCC 184Mentioned OnlyCited in the context of agency doctrine but not the primary basis for the decision."
Dhannalal v. Kalawatibai(2002) 6 SCC 16Mentioned OnlyCited as part of agency and co-ownership discussions."
Ved Parkash Gupta v. State of Haryana & Ors.(1999) RLJR 689Mentioned OnlyCited as a related decision in Haryana bonafide eviction debates; not the controlling authority here.
Satyawati Sharma v. Union of India(2003) RL.R. 91Mentioned OnlyDelhi High Court Full Bench decision cited in the context of constitutional questions related to eviction provisions.

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Extracted Judgment Text

Exact text extracted from official judgment records.

' ,.\ ---\ ' ~ # MOH!NDER PRASAD JAIN _v._ # MANOHAR LAL JAIN FEBRUARY 24, 2006 [S.B. SINHA AND P.K. BALASUBRAMANYAM, JJ.] ## _Rent and Eviction:_ > _Haryana Urban (Control of Rent and Eviction) Act, 1973; Section I 3:_ c _Eviction Petition-Non-residential premiseslshop-Bonajide requirementNon-joinder of co-owners in eviction proceeding-Effect of-Held: A suit filed by a co-owner maintainable in law-Petitioner-co-owner need not to show that consent of other co-owners obtained_ theret~ince _provisions of law not allowing eviction on bonafide requirement of a non-residential premises held ttJ be unconstitutional by the Supreme Court, the landlord could seek_ D _eviction of the premises in question on the ground of bonafide requirementBesides,_ landlord/c~wner _had proved his bonafide requirement to evict the tenant from the premises/shop in question, the findings of fact arrived at by the Court below need not be disturbed_ ; Respondent, one of the co-owners, filed a petition under Section 13[E ] of the Haryana Urban (Control of Rent and Eviction) Act, 1973 for eviction of the appellant-tenant from a shop/premises in question on the ground of his bona fide personal requir~ment, i.e., for the purpose of running wholesale business in· Ayurvedic medicines. The petition was dismissed by the Rent Controller holding that the bona fide requirement· F of the respondent in respect of the non-residential premises has not been proved and moreover he had not been able to show that the consent of other co-owners obtained favouring eviction of the premises. An appeal preferred thereagainst was allowed by the Appellate Authority on a finding that the petitioner had proved his _bona fide_ requirement. The Revision G Petition filed by the tenant was dismissed by the High Court holding that the landlord is entitled to seek eviction of the tenant from the non. residential premises. Hence the present appeal. Appellant-tenant.contended whereas a clear finding of fact was arrived at by the Rent Controller that the respondent had failed to prove 513 t 514 "' SUPREME COURT REPORTS [2006) 2 S.C.R. - A[his ] _[bona fide ]_[requirement ][in ][relation to the premhes ][in ][question ][in ][view ] of the fact that other co-owners did not ghe their consent for starting a business in the said shop, the Appellate Authority Jid not delve deep into the.matter. ' ## Dismissing the appeal, the Court ## B > HELD: I.I. This Court in the case of _Harbilas Rai Bansal_ v. _State of Punjab & Anr.,_ (19961 1 SCC 1 held the e:dsting provision on bonafide requirement of non-residential premises to be unconstitutional. Later, upholding the ratio in the case of _Rakesh Vij_ v. _Dr. Raminder Pal Singh_ c _[Sethi ][& ][Ors., ]_[(2005) 8 SCC 504, this Court held ][that ][a landlord under the ] Act can seek eviction of a tenant from a non-residential building on the ground of _bonafide_ requirement. 1516-D-EI .. _Rakesh Vij_ v. _Dr. Raminder Pal Singh Sethi & Ors.,_ (20051 8 SCC 504 and _Harbi/as Rai Bansal_ v. _State of Punjab & Anr.,_ (1996] 1 SCC 1, relied D[on. ] _Gian Devi Anandv. Jeevan Kumar & Ors.,_ (1985) 2 SCC 683, referred to. 1.2. A suit filed by a co-owner is maintainable in law. It is not E[necessary ][for ][the ][co-owner ][to show ][before ][initiating ][the ][eviction ] proceeding before the Rent Controller that he hllld taken consent of the other co-owners. However, in the event, a co-owner objects thereto, the same may be a relevant fact. In the instant case, nothing has been brought on record to show that the co-owners of the respondent had objected to F[eviction proceedings initiated ][by ][the respondent. (518-D-E) ] _India Umbrella Manufacturing Co. & Ors._ v. _Bhagabandei Agarwal/a (Dead) by Lrs. Savitri Agarwal/a (Smt.) & Ors.,_ (2004) 3 SCC 178, relied on. 1.3. The submission of the appellant to the effect that before initiating G the proceedings, respondent was required to show that he had experience in running the business in Ayurvedic medicine is rejected. There is no law which provides for such a pre-condition. It may be so where a licence is required for running a business, a statute may prescribe certain qualifications or pre-conditions without fulfilment whereof the landlord H may not be able to start a business, but for running a wholesale business ,.. ' '. ;- _r_ ' \ _r_ "'" c MOHINDER PRASAD JAIN _v._ MANOHAR LAL JAIN [SINHA, J.) 515 in Ayurvedic medicine, no qualification is prescribed. Experience in the A business is not a pre-condition under any statute. Even no experience therefor may be necessary. If the respondent has proved his bona fide requirement to evict the appellant for his own purpose, this Court may not, unless an appropriate case is made out, disturb the finding of fact arrived at by the Appellate Authority and affirmed by the High Court. B 1518-E-F-GJ (:!VIL APPELLATE JURISDICTION: Civil Appeal No. 1263 of2006. _A.,_ ,, From the Final Order dated 15.12.2004 of the Punjab and Haryana High Court in Civil Revision Petition No. 6121 of 2004. Dr. Vikas Vashishth, Kuldip Singh for the Appellant. S.B. Sanyal, B.K. Satija for the Respondent. . The Judgment of the Court was delivered by D ## S.B. SINHA, J. Leave granted. --\ ~ . ,.. ' The father of the respondent herein was the owner of a shop in which the appellant was inducted as a tenant on 1st April, 1972. The monthly rent payable in relation to the said tenanted premises was Rs.700/-. The original E landlord, the father of the respondent having died on 5th March, 1979, the respondent along with his four sisters, became the owner of the said tenanted premises. He was an employee of Hero Honda Motors Limited. He retired from service having attained the ·age of superannuation. One year after his retirement, he filed an application under Section 13 of the Haryana Urban (Control of Rent and Eviction) Act, 1973 ('the Act') for eviction of the F appellant from the shop in question on the ground of his _bona fide_ personal requirement, i.e., for the purpose of running wholesale business in Ayurvedic medicines. The said application was dismissed by the Rent Controller holding that the _bona fide_ requirement of the respondent in respect of the nonresidential premises has not been proved and moreover he had not been able G to show consent of his sisters in his favour in that behalf. An appeal preferred thereagainst was allowed by the Appellate Authority on a finding that he proved his _bona fide_ requirement. In the revision petition filed before the High Court the appellant raised a contention that an application for eviction on _bona fide_ requirement of a non-residential premises was not maintainable. It is not in dispute that this Court as also the Punjab & Haryana High[H ] -; . 516 (2006] 2 S.C.R. SUPREME COURT REPORTS c A Court declared such a provision to be unconsttutional. _**f**_ The High Court opined : "Still further the learned counsel forther argued that eviction on the basis of personal requirement is not available in respect ·of nonresidential building. He has placed rdiance upon the Full Bench judgment of Delhi High Court reported as Satyawati Sharma Versus Union of India and another 2003 (I) R.L.R. 91. **B** However, I am bound by the judgment of the D.B. of this Court in _State of Haryana_ v. _Ved Parkash Gupta and Ors.,_ ( 1999) I R.L.R. 689, wherein the provision of Haryana Urban (Control of Rent and Eviction) Act, 1973 have been struck down and consequently, the landlord is entitled to seek eviction of the tenant from the nonresidential building. In view of the above judgment the reliance of F.B.'s Judgment of Delhi High Court is not r.enable." **D** We may notice that this Court in _Harbilas Rat Bansal_ v. _State of Punjab & Anr.,_ [ 1996] l SCC **1** held such a provision to be unconstitutional, whereas in _Gian Devi Anand_ v. _Jeevan Kumar & Ors.,_ [1985: 2 SCC 683 somewhat different note was struck. The question recently fell for consideration before a Three Judge Bench of this Court in _Rakesh Vij_ v. _Dr. Raminder Pal Singh_ E _[Sethi ][& ][Ors., ]_[reported ][in ][[2005] ][8 ][SCC ][504 ][wherein ][this ][Court ][upheld ][the ] ratio laid down in _Ha;bilas Rai Bansal_ (supra) stating : "We allow the appeal, set aside the impugned judgment of the High Court, declare the abovesaid provisions of the amendment as constitutionally invalid and as a consequence restore the original provisions of the Act which were operating before coming into force of the amendment. The net result is that a landlord under the Act can seek eviction of a tenant from a non-residential building on the ground that he requires it for his own use." **F** In view of the afore-mentioned decision of this Court, we are not called upon to answer the said question. G The learned counsel appearing on behalf of the appellant faced with the said decision, however, submitted that whereas a clear finding of fact was arrived at by the Rent Controller that the respondent had failed to prove his **H** _[bona fide ]_[requirement ][in ][relation ][to ][the ][said ][premises ][in ][view ][of ][the ][fact ][that ] his sisters did not give any consent for starting a business in the said shop, ;.. ~ > _)>_ ... .. ., ,, --(. ··t ## MOHINDER PRASAD JAIN v. MANOHAR LAL JAIN (SINHA, J.] 517 the Appellate Authority did not delve deep into the matter. Our attention in 1 ' this behalf has been drawn to the following findings of the Rent Controller: • ,,.,_ . 1 "The third ground which has been raised by the counsel for the respondent for nailing the ·pel<i'eioner' s case by itself has a force to upset the petitioner's 'dase·because firstly in the case in hand the petitioner has no where pleaded that he is the sole owner of the shop B in dispute and secondly from the perusal of Ex.D6-the petition under Section 4 of the Act for the Determination of the Fair Rent which was filed by the petitioner alongwith his four sisters, this Court is satisfied that the shop in dispute is jointly owned by the petitioner alongwith his four sisters. In para No.I of the aforesaid petition Ex.D6 this has c been categorically pleaded that the petitioners (i.e. the Manohar Lal Jain-the petitioner and his four sisters) are owner of the shop. Consequently the testimony of the petitioner that he is owner of _the shop in dispute is not only beyond pleading but is also devoid of truth. Since the petitioner is not the sole owner of the shop in dispute, therefore, the petitioner's version that the shop in dispute is required D solely by him for his personal use and occupation for running a wholesale business of Ayurvedic Business appears to be a concocted version because the petitioner has no where stated that his other four sisters who are also the owner of the shop in dispute have consented him to use the shop in dispute for his own use and occupation." E The appellate Authority although should have dealt with the S':lid question, had otherwise considered the matter from all aspects. > He had taken note of the fact that the landlord was one of the coowners and non-joinder of other co-owners in eviction petition is not fatal. F :.- -\ / -,. This question now stands concluded by a decision of this Court in _India Umbrella Manufacturing Co._ & _Ors._ v. _Bhagabandei Agarwal/a (Dead) by Lrs. Savitri Agarwal/a (Smt.)_ & _Ors.,_ [2004] 3 SCC 178 wherein this Court opined: "Having heard the learned counsel for the parties we are satisfied[G ] that the appeals are liable to be dismissed. It is well settled that one of the co-owners can file a suit for eviction of a tenant in the property generally owned by the co-owners. (See _Sri Ram Pasricha_ v. _Jagannath,_ [1976] 4 SCC 184 and _Dhannalal_ v. _Kalawatibai,_ [2002] 6 sec 16, sec para 25. This ;:irinciple is based on the doctrine of H ~ 518 [2006] 2 S.C.R. .) ## SUPREME COURT REPORTS A agency. One co-owner filing a suit for eviction against the tenant does so on his own behalf in his own right and as an agent of the other co-owners. The consent of other co-owners is assumed as taken unless it is shown that the other co-owners were not agreeable to eject the tenant and the suit was filed in spite of their disagreement. In the present case, the suit was filed by both the co-owners. One of the co-owners cannot withdraw his consent midway the suit so as to prejudice the other co-owner. The suit once filed, the rights of the parties stand crystallised on the date of the suit and the entitlement of the co-owners to seek ejectment must be adjudged by reference to the date of institution of the suit; the only exception being when by virtue of a subsequent event the entitlement of the body of co-owners to eject the tenant comes to an end by act of parties or by operation of law."· B c A suit filed by a co-owner, thus, is maintain:ible in law. It is not necessary for the co-owner to show before initiating the eviction proceeding before the D Rent Controller that he had taken option or c01:sent of the other co-owners. However, in the event, a co-owner objects thereto, the same may be a relevant fact. In the instant case, nothing has been brought on record to show that the co-owners of the respondent had objected to eviction proceedings initiated by the respondent herein. The submission of the learned counsel for the appellant E[to the effect that before initiating the proceedings, the appellant was required ] to show that he had experience in running the business in Ayurvedic medicine, has to be stated to be rejected. There is no law which provides for such a precondition. It may be so where a licence is required for running a business, a statute may prescribe certain qualifications or pre-conditions without fulfilment whereof the landlord may not be ab le to start a business, but for F[running a wholesale business ][in ][Ayurvedic medicine, no qualification ][is ] prescribed. Experience in the business is not a pre-condition under any statute. Even no experience therefor may be necessary. If the respondent has proved his _bona fide_ requirement to evict the appellaD''. herein for his own purpose, this Court may not, unless an appropriate case is made out, disturb the finding of fact arrived at by the Appellate Authority and affirmed by the High Court. G For the foregoing reasons, there is no merit in this appeal. It is dismissed. In the facts and circumstances of this case, there shall be no order as to costs. _r_ _>-_ • ... _>-_ io. ~ _"f_ S.K.S. Appeal dismissed.