High CourtDivision BenchAppeal allowed; eviction petition denied; judgm...

Prabha Arora v. Brij Mohini Anand and Ors.

Case / Petition Number:Civil Appeal No. 2371 of 2007
Neutral Citation:Prabha Arora v. Brij Mohini Anand, (2007) 11 S.C.R. 721

Case Details & Bench

Court
High Court
Hon'ble Judges
  • A.K. Mathur
  • Markandey Katju
Judgment Date
2007-10-31
Court Decision / Holding
Appeal allowed; the judgments of the Appellate Authority and the High Court were set aside. The eviction petition under Section 21(1)(a) was dismissed as the ground for eviction had disappeared due to the Trust’s creation and ownership transferring to the Trust; no order as to costs.
Final Disposition
Appeal allowed; eviction petition denied; judgments of the Appellate Authority and High Court set aside; no costs

Parties to the Case

Appellants / Petitioners

  • Prabha Arora
  • Anr.

Respondents

  • Brij Mohini Anand
  • Ors.

Legal Representation & Advocates

Counsels for Petitioners

  • • Dinesh Dwivedi
  • • P.N. Gupta

Counsels for Respondents

  • • M.N. Krishnamani
  • • S.C. Maheshwari
  • • J. Quddisi
  • • Vipul Malleshwari
  • • M.P.S. Tomer
  • • Sandhya Goswami

Case Synopsis & Summary

This Supreme Court appeal arises from eviction proceedings under the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (Section 21(1)(a)) where the landlord sought eviction of the tenants so that she could run tuition/coaching classes and augment her pension. The Prescribed Authority rejected the eviction petition, but the Appellate Authority reversed that order, and the High Court upheld the Appellate Authority. During pendency of the appeal, a Trust was created in respect of the disputed property. The appellants argued that the creation of the Trust changed the circumstances, such that the ground for eviction had disappeared, and that Section 51 of the Trusts Act prohibited the trustee from using the Trust property for personal profit. The respondents contended that the petition’s ground was for charitable work and that the purpose continued even after the Trust was formed. The Court held that the Trust deed, executed during the pendency, resulted in the property and its income belonging to the Trust and not to the petitioner, and that the purpose for eviction had disappeared. It relied on precedents about changed circumstances, the effect of transfers to trusts, and limitations on trust property. The appeal was allowed, the High Court and Appellate Authority’s judgments were set aside, and no costs were awarded.

Provisions of Law Cited

Section 21(1)(a) of U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972Section 51 of the Indian Trusts Act, 1882

Legal Doctrines & Maxims

  • Changed circumstances during pendency of litigation (Kedar Nath Agrawal (dead) & Anr. v. Dhanraji Devi (dead) by Lrs. & Anr., [2004] 8 SCC 76)
  • Trust transfer principle: on creation of a Trust, property passes to trustees (Tulsidas Kilachand & Ors. v. Commissioner of Income Tax, AIR 1961 SC 1023)
  • Satisfaction of personal requirement must subsist till final decree; if changed circumstances, eviction may fail (Hasmat Rai v. Raghunath Prasad, AIR 1981 SC 1711)
  • Eviction against transfer to a non-party: suit will fail (MM Quasim v. Manohar Lal Sharma & Ors., 1981)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the creation of the Trust during the pendency of the appeal altered the underlying premise of the eviction petition. The ground for eviction—landlord’s need to run a tuition centre for supplementary income—had ceased to exist since the property now belonged to the Trust, and Section 51 of the Trusts Act prohibited using trust property for personal profit. Citing the principle of changed circumstances during litigation, they urged the Court to dismiss the petition and uphold the Trust’s status as the owner of the property, thereby negating eviction.

Contentions of Respondents

The respondents argued that the petition was filed on the ground of charitable activity and that the creation of the Trust did not extinguish the landlord’s stated need. They contended that the need for eviction could still subsist despite the Trust, and that the change in title should not automatically defeat the eviction petition. They maintained that the purpose described in the petition was not merely charitable work, and the continuation of the need should be examined in light of the Trust’s existence.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Kedar Nath Agrawal (dead) & Anr. v. Dhanraji Devi (dead) by Lrs. & Anr.[2004] 8 SCC 76PositiveCited to support the principle that courts may consider changed circumstances during pendency of litigation and that such changes can affect the viability of eviction claims.
Hasmat Rai v. Raghunath Prasad[1981] 3 SCC 103; AIR 1981 SC 1711PositiveCited for the proposition that personal requirements must subsist until the final decree; if the need ceases due to changed circumstances, eviction may fail.
MM Quasim v. Manohar Lal Sharma & Ors.[1981] 3 SCC 36PositiveCited to illustrate that transfer of property to a person not a party to the proceedings can lead to eviction failure.
Tulsidas Kilachand & Ors. v. Commissioner of Income TaxAIR 1961 SC 1023PositiveCited for the principle that upon creation of a Trust, property passes to trustees and rent collection is through trustees for the Trust.

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Extracted Judgment Text

Exact text extracted from official judgment records.

_( f I_ '""" A ~ \- .>\ ' # PRABHA ARORA AND ANR. # _V._ BRIJ MOHINI ANAND AND ORS. OCTOBER 31, 2007 [A.K. MATHUR AND MARKANDEY KAT JU, JJ.] -"· -l --? _Rent Control and Eviction-Eviction suit-On the ground of using the premises for earning purpose-Evict ion denied by Prescribed Authority-Allowed by the Appellate Authority and High Court-_ c _Subsequent event duringpendency of appeal-On appeal, held: In the facts of the case and in view of subsequent event, ground for eviction disappeared-Landlady not entitled for eviction-UP. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972-s. 21 (1) (a)._ D Respondent-landlady filed an application u/s 21(1)(a) ofU.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 against the appellant-tenants. Eviction was sought on the ground that she wanted the premises for running tuition/coaching classes in order to augment her income. Prescribed authority rejected her application. Appellate Authority as well as High Court upheld her claim. Hence the present appeal. E Appellant contended that during pend ency of the appeal before the appellate authority, a Trust was created in respect of the property F in question and in view of that the very purpose for which the eviction was sought, disappeared. Respondent contended that the purpose did not disappear because the application for eviction was filed on the ground that the respondent wanted to do charitable work. G Allowing the appeal, the Court HELD: In view of the creation of the Trust during pendency of 721 H -\ 722 SUPREME COURT REPORTS (2007] 11 S.C.R. _y_ A[the litigation, ][the ][purpose for which eviction was sought ][of ][the ] tenants through the release application has disappeared. The trust deed nowhere mentions that any income of the Trust will be given to the petitioner who filed the release application. In fact, Section 51 of the Trust Act debars a trustee from using the trust property B[for his own profit. ][The ][purpose mentioned in the petition ][under ] Section 21 ofU.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 was not for doing charitable work. However, after the execution of the trust deed, the premises in dispute now belongs to the Trust. The need mentioned in the petition under Section 21 c[has totally disappeared. [Paras 4 ][and ][8] ][[723-D, E; 724-C, ][D] ] _KedarNathAgrawal (dead) andAnr. v.DhanrajiDevi (dead) by Lrs. and Anr.,_ [2004] 8 SCC 76; _Hasmat Rai_ v. _Raghunath Prasad,_ ( 1981] 3 SCC 103 and _MM Quasim_ v. _Manohar Lal Sharma and Ors.,_ (1981] 3 sec 36, relied on. D _Tulsidas Kilachand and Ors._ v. _Commissioner of Income Tax,_ AIR (1961) SC 1023, referred to. _A_ ...... r I- .I ·r CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2371 of 2007. E From the Judgment and Order dated 9.10.2006 of the High Court ofU1.taranchal at Nainital in W.P. No. 337/2004 (MIS). Dinesh Dwivedi, P.N. Gupta for the Appellants. F M.N. Krishnamani, S.C. Maheshwari, J. Quddisi, Vipul Mal1eshwari, M.P.S. Tomer and Sandhya Goswami for the Respondents. ~ ., The Judgment of the Court was delivered by MARKANDEY KAT JU, J. I. This appeal has been filed against G[the ][judgment ][dated ][09. ][l ][0.2006 ][passed ][by ][the ][Uttaranchal ][High ][Court ][in ] Writ Petition No. 337 of 2004 (M/S). Heard learned counsel for the parties and perused the records. _....J._ .... 2. The appellants before us are the tenants of the premises in dispute while the respondents are the landlords. The landlady filed the petition H _J_ _).__ _,..J._ y , .._ ,,. _I_ ## PRABHAARORA _V._ :!lRUMOHINIANAND [MARKANDEYKATJU,J.] 723 i.fudet 5ection 2l(1)(a) of the U.P. Urban Buildings (Regulation of Letting, A Re~t and EvldiBh) Act, 1972. The grounds mentioned in the release application of the landlady was that she is a retired teacher getting only a pension of Rs. 538/~ per ttionth which is insufficient for her needs. Hence to augment her income she wants to rtift tuition/coaching classes in the premise§ Jtt QHSstitm. The said petition was rejected by the Prescribed B Authority, but in appeal the appellate authority (ADJ Dehradun) by his judgment dated 16.03 .2004 reversed the order of the Prescribed Authority and allowed the release application. The said judgment dated 16:6.12004 has been upheld by the High Court by the impugned judgment dated 09. i 0.2006. Hence this appeal. c 3. It may be mentioned that during the pendency of the appeaJ before the appellate authority a Trust was created in respect of the property in question vide trust deed dated 04.08.2003 (copy of which is annexed as Annexure P-8 to this appeal). D 4. Lean1ed counsel for the appellants, Sim Dinesh Dwivedi, submitted that in view of the aforesaid trust deed dated 04.08.2003 the very purpose for which eviction was sought of the tenants through the release application has disappeared. We are in agreement with this submission. TI1e trust deed nowhere mentions that any income of the Trust will be given to the E petitioner who filed the release application. In fact, Section 51 of the Trust Act debars a trustee from using the trust property for his own profit. -; 5. In _Kedar Nath Agrawal (dead) & Anr._ v. _Dhanraji Devi (dead) by Lrs. & Anr.,_ [2004] 8 SCC 76 this Court held that the court has to consider the changed circumstances during the pendency of the litigation. F This decision relied on the earlier decision of this Court in _Hasmat Rai_ v. _Raghunath Prasad,_ [ 1981] 3 SCC 103: AIR ( 1981) SC 1711 in which it was observed that where possession is sought for personal requirement, the said requirement must not only exist on the date of the filing of the petition but must also subsist till the final decree for an order for eviction G is made. If, in the meantime, events crop up which would show that the landlord's requirement no longer subsists then the action must fail. 6. In _Tulsidas Kilachand & Ors._ v. _Commissioner of Income Tax,_ AIR ( 1961) SC I 023 it was held that on creation of a Trust the property H --\ 724 _y_ ## SUPREME COURT REPORTS [2007] 11 S.C.R. A[passes ][to ][the trustees. ][Hence, ][in ][our opinion, rent ][is ][now ][to ][be ][paid ] the trustees who will collect it on behalf of the Trust. 7. In _MM Quasim_ v. _Manohar Lal Sharma & Ors.,_ [1981] 3 SCC 36 this Court held that on transfer of property to a person who is not a party to the proceedings the suit for eviction will fail. B 8. Learned counsel for the respondents, Shri M.N. Krishnamani, submitted that the petition under Section 21 for eviction was filed on the ground that the petitioner wanted to do charitable work, and after creation of the Trust also the purpose remains the sani.e. We do not agree. In the[7 of ][the ][petition ] c[petition ][under ][Section ][21 ][it ][is ][stated ][iri ][pai-agraph ][nos. ][3 -] that the petitioner has a monthly pension of Rs. 538/- only and she wants to augment her income as it is difficult for her to survive on the meager pension. Hence she wants to open a tutorial centre in the premises in dispute to earn some money. The purpose mentioned in the petition under D[Section ][21 ][was ][not ][for ][doing charitable ][work. ][However, after the ] execution of the trust deed the premises in dispute now belongs to the Trust. The need mentioned in the petition under Section 21 has totally disappeared. 9. In this view of the matter, the impugned judgment of the High E Court dated 09.10.2006 and of th~ appellate authority dated 16.03.2006 can not be sustained and are set aside. _A_ -r '- ,, 10. Appeal is allowed, no order as to costs F K.K.T. // Appeal allowed. _'t_ " h- ;., -' ...