High CourtDivision Bench2017-03-30Appeal allowed; eviction order restored; no costs.

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

Case / Petition Number:Civil Appeal No. 1464 of 2010

Neutral Citation:[2017] 3 S.C.R. 711

Case Details & Bench

Court: High Court
Hon'ble Judges: Kurian, J.
R. Banumathi, J.
Judgment Date: 2017-03-30
Court Decision / Holding: Appeal allowed. The High Court’s order is set aside; the First Appellate Authority’s eviction order is restored; I.A. No. 5 disposed of; there shall be no order as to costs.
Final Disposition: Appeal allowed; eviction order restored; no costs.

Parties to the Case

Appellants / Petitioners

Satish Chander Aggarwal (D) by LRs.

Respondents

Shyam Lal Om Prakash
Arhti
ANR

Legal Representation & Advocates

Counsels for Petitioners

• A. K. Ganguli
• Mahesh Srivastava
• Vaibhav M. Srivastava
• P. N. Puri
• Sanjay Bansal
• Ajay Choudhary

Counsels for Respondents

• Arun Aggarwal
• Taranjeet Singh
• Gaurav Aggarwal

Case Synopsis & Summary

Satish Chander Aggarwal, the original owner-landlord, filed eviction proceedings in 1975 under the UP Urban Building Act on the ground of bona fide requirement for expansion of his family business, M/s Roop Krishna Traders. The Rent Controller dismissed the petition, but the First Appellate Authority reversed, after conducting a spot inspection, and held that the premises were required for the landlord’s business. The tenant challenged the order in a writ petition under Article 226 of the Constitution. The High Court, noting that the landlord had died, refrained from adjudicating the bona fide requirement, holding that the bona fide need of the father is distinct from that of the surviving legal heirs, and directed that the heirs pursue eviction in accordance with law. On appeal, the Supreme Court held that there is no bar to recognizing the bona fide need of the surviving heirs where the business remains a family enterprise and the original landlord’s need has been established. In such a case, it is not necessary to send the heirs to another round of litigation. The Court set aside the High Court’s order, restored the First Appellate Authority’s eviction order, disposed of the I.A., and framed the final disposition that eviction can proceed. The decision clarifies that bona fide need in family business contexts can bind heirs without duplicative litigation.

Provisions of Law Cited

UP Urban Building Act, Section 21(a)Constitution of India, Article 226

Submissions & Arguments

Contentions of Appellants / Petitioners

The original landlord filed eviction proceedings in 1975 on the ground of bona fide requirement for expansion of the family business, M/s Roop Krishna Traders. The Rent Controller dismissed the petition; the First Appellate Authority reversed after conducting a spot inspection, concluding that the premises were needed for the landlord’s business. After the landlord’s death, the surviving legal heirs pursued eviction through a writ under Article 226. The High Court declined to adjudicate the bona fide need of the heirs, treating it as a distinct cause of action that required separate proof. The appellants contend that where the business continues as a family enterprise, the bona fide need proven for the original landlord should bind the heirs; there is no necessity for a separate round of litigation in every case, particularly where the heirs have continued the business and the matter concerns the same premises. The Appellate Authority’s factual finding of need supported by a spot inspection reflects the true necessity; since the heirs have inherited the business, their need is part of the same bona fide requirement. Requiring the heirs to re-litigate would cause delay and duplicative proceedings, contrary to the purpose of eviction law and to Section 21(a).

Contentions of Respondents

The respondents submit that the bona fide requirement is a personal obligation of the landowner and a separate cause of action arises in favor of the surviving heirs once the owner dies. They argue that the heirs, who have continued the father’s business, must establish their own bona fide need as a distinct claim, since the original need cannot automatically bind successors. They point out that the High Court correctly observed that the father’s requirement and the heirs’ requirement can differ. The continuation of business by legal heirs is not automatically coextensive with the original landlord’s need; risks of change in circumstances, such as expansion plans and family considerations, warrant independent evaluation. They contend that the eviction petition is a fresh cause of action that must be resolved on evidence, and that the High Court’s refusal to decide the heirs’ bona fide need was proper to avoid misapplication of law or denial of due process. The decision to permit the heirs to pursue eviction should not prejudice the tenants’ rights, and the lower authorities properly weighed the evidence and complied with due process.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A # [2017] 3 S.C.R. 711 # SATISH CHANDER AGGARWAL (D) BY LRS. v. SHYAM LAL OM PRAKASH, ARHTI AND ANR. (I.A. No. 5 of2017) In (Civil Appeal No. 1464 of2010) MARCH30,2017 B [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_ - _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 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 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. 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, 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 c D E F G 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 D 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. The Judgment of the Court was delivered by E F G H 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 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 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 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 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, 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 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 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 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. A B c D 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 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:, F 9 Pending applications, if any, shall stand disposed of. I 0. There shall be no orders as to costs. G Ankit Gyan Appeal allowed.