High Court of KeralaDivision BenchRevision petition disposed of confirming evicti...

Surya Kumari Kunjamma v. Binu Jacob

Case / Petition Number:R.C.R.No.247 of 2007

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • J.B. Koshy
  • K.P. Balachandran
Judgment Date
2007-07-31
Court Decision / Holding
The revision is disposed of affirming the eviction order under Section 11(2)(b) with liberty to the petitioner to seek vacatur under Section 11(2)(c) after depositing arrears with interest as mandated. The court clarifies that the finding on landlord–tenant status based on the sale and rent deeds shall not operate as res judicata in any subsequent declaration action, and the petitioner may pursue an appropriate suit to challenge the title transfer if desired.
Final Disposition
Revision petition disposed of confirming eviction under Section 11(2)(b) with liberty to pursue relief under Section 11(2)(c); finding on landlord–tenant relation not to operate as res judicata in possible future proceedings.

Parties to the Case

Appellants / Petitioners

  • Surya Kumari Kunjamma

Respondents

  • Binu Jacob

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Shaji P. Chaly

Case Synopsis & Summary

This High Court of Kerala revision arises from eviction proceedings under the Kerala Buildings (Lease and Rent Control) Act, 1965. The Rent Control Court granted eviction under section 11(2)(b) and the Rent Control Appellate Authority dismissed the revision; the revision petitioner challenged these conclusions in RCA 87/2006. The petitioner contends there is no landlord–tenant relationship between herself and the respondent, and that the sale deed executed by her in favor of the respondent is a sham, intended only as collateral security for a loan; she also alleges that rent/devises show no real transfer of title. The court records that the petitioner executed Sale Deed No. 3554/03 in favor of the respondent with respect to the scheduled building, and that there is supporting evidence that tax and rent payments were being made by the respondent. While acknowledging the possibility that the sale deed could be a collateral security, the court finds no merit in the sham-sale contention. The bench clarifies that a separate suit could be filed to challenge the sale deed if desired, but that the eviction order under 11(2)(b) stands confirmed with liberty to pursue 11(2)(c) remedies, and that findings of landlord–tenant relations arising from these proceedings do not operate as res judicata.”

Provisions of Law Cited

Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965Section 11(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965Section 11(2)(c) of the Kerala Buildings (Lease and Rent Control) Act, 1965

Legal Doctrines & Maxims

  • Res judicata
  • Bona fide transaction

Submissions & Arguments

Contentions of Appellants / Petitioners

The revision petitioner contends that there is no landlord–tenant relationship between herself and the respondent; the sale deed executed by her in favor of the respondent is a sham, and the rent deed (Exhibit A3) is a fabrication to confer rents or to evidence a loan security. She urges that the purported transfer may be collateral security and not an operative title transfer, and seeks a finding on this issue; she further requests the eviction order be set aside or relegated to a remedy under Section 11(2)(c) with deposit of rents.

Contentions of Respondents

The respondent contends that the sale deed executed by the petitioner in favor of the respondent is valid, the petitioner is a tenant liable to pay rent, and the appellate authority correctly confirmed eviction under 11(2)(b). He argues that the collateral security theory is unfounded given the documentary record and tax, rent payments, and possession consistent with tenancy; the argument based on a sham document is rejected in light of the admitted sale deed and proof of title transfer.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Devi Das v. Mohan LalAIR 1982 SC 1213Mentioned OnlyCited to discuss a different factual situation; the Apex Court’s observations on a bona fide vs paper transaction are distinguished from the present facts.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE K.P.BALACHANDRAN TUESDAY, THE 31ST JULY 2007 / 9TH SRAVANA 1929 RCRev..No. 247 of 2007 ------------------------------------- RCA.87/2006 of RENT CONTROL APPELLATE AUTHORITY, ERNAKULAM RCP.128/2005 of RENT CONTROL COURT, ERNAKULAM .................... ## REVISION PETITIONER/APPELLANT/RESPONDENT: SURYA KUMARI KUNJAMMA, AGED 56 YEARS, D/O. SAVITHIRIKUNJAMMA, PALATHARA HOUSE, PUTHUKKALVATTOM P.O., ELAMAKKARA. BY ADV. SRI.SHAJI P.CHALY ## RESPONDENT/RESPONDENT/PETITIONER: BINU JACOB, AGED 36 YEARS, W/O.JOHN.T.SAM, 43/2432 A, PALATHARA HOUSE, S.R.M.ROAD, ERNAKULAM NORTH. THIS RENT CONTROL REVISION HAVING COME UP FOR ADMISSION ON 31/07/2007, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: J.B.Koshy & K.P.Balachandran, JJ. --------------------------------- R.C.R.No. 247 of 2007 --------------------------------- ## **ORDER** ## Balachandran, J. Tenant is the revision petitioner. Respondent filed R.C.P.No.128/05 before the Rent Control Court, Ernakulam for an order of eviction against the petitioner invoking grounds under Sections 11 (2)(b) and 11(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965 (hereinafter referred to as 'the Act'). The Rent Control Court allowed eviction under Section 11(2)(b) of the Act, but rejected the claim for eviction under Section 11(3) of the Act. The petitioner/tenant assailed the order of eviction passed under Section 11(2)(b) of the Act before the Rent Control Appellate Authority, Ernakulam filing R.C.A.No.87/06. The appellate authority dismissed the appeal concurring with the findings of the Rent Control Court and confirming the eviction ordered by the Rent Control Court RCR 247/07 2 under Section 11(2)(b) of the Act. 2. It is vehemently contended before us by the learned counsel for the petitioner, relying also on the decision of the Apex Court in **Devi Das v. Mohan Lal** (AIR 1982 SC 1213), that the authorities below went wrong in not entering a finding as regards the contention of the petitioner that there is no landlord/tenant relationship between the respondent and the petitioner and that the sale deed executed by her in favour of the respondent is actually a sham document. The contention is so advanced before us by the learned counsel for the petitioner on the ground that objection had been filed before the Rent Control Court resisting eviction contending that Sale Deed No.3554/03 of Sub Registry Office, Edappilly executed by the petitioner in favour of the respondent in relation to the scheduled building was never intended by the parties to be acted upon as a sale deed, but, was intended only as security in respect of a loan transaction RCR 247/07 3 between the respondent and husband of the petitioner to the tune of Rs.1,50,000/-; that the interest in relation to the loan transaction was fixed at Rs.24,000/- per month and that was being paid regularly till July 2004; that the respondent was bringing into existence a rental deed making use of the blank stamp papers as also other papers got signed from the petitioner by way of security; that the said rent deed (Exhibit A3) is one fabricated by the respondent and that in the circumstances, the petitioner, in law, is the owner of the scheduled building and is not bound to make payments of rents as alleged and that she is not liable to be evicted from the scheduled building resorting to the proceedings under the Rent Control Act. 3. We see absolutely no merit in the contention advanced. It is the admitted case that the petitioner herself has executed Sale Deed No. 3554/03 of Sub Registry Office, Edappilly in favour RCR 247/07 4 of the respondent in relation to the scheduled building and premises, which at least, professes to transfer the said property and building to the respondent. It is seen that other records are also produced by the respondent to establish her contention that the sale deed has actually taken effect and that she is paying the tax, etc. in respect of the scheduled building. It does not lie in the mouth of the petitioner, who has executed sale deed in favour of the respondent in respect of the scheduled building and premises, to contend in rent control proceedings that despite execution of the sale deed, she continues to have ownership of the building and is not a tenant and is not liable to pay rent as per the rent deed, prima facie, executed by her in favour of the respondent. If at all the petitioner has got a contention that the sale deed executed in favour of the respondent was by way of collateral security in relation to the loan transaction and is not expected to operate as RCR 247/07 5 transfer of title over the building it is for her to institute appropriate suit and to get a declaration in that behalf. 4. The decision relied on by the learned counsel for the petitioner is one dealing with an entirely different situation, where, the contention raised by the tenant was that the transfer in favour of the person, who has instituted eviction proceedings against him had not actually obtained ownership over the building, but that the document was a sham one just to enable the petitioner therein to seek for an eviction and obtain an order of ejectment against him from the premises in dispute. It was in the above fact situation that the Apex Court observed that the trial court was bound to record a finding on the question whether the sale of the building to Mohan Lal, who instituted the eviction proceedings, was a bona fide transaction or only a paper transaction. However, in the circumstances of the case, though RCR 247/07 6 there is no merit in the contention advanced on behalf of the petitioner, we leave open the contention of the petitioner that the sale deed executed in favour of the respondent was being executed as a collateral security to be decided in appropriate proceedings to be instituted by the petitioner, if so advised. Accordingly, we dispose of this revision confirming the order of eviction passed concurrently by the authorities below under Section 11(2)(b) of the Act with liberty to the petitioner to get the order vacated under Section 11(2)(c) of the Act, depositing all rents in arrears with interest etc. as statutorily provided. It is made clear that the finding regarding landlord/tenant relationship in this proceedings, on the basis of the sale deed and the rent deed executed by the petitioner in favour of the respondent, shall not operate as res judicata, if at all appropriate suit is instituted by the petitioner for a declaration RCR 247/07 7 to the effect that the sale deed executed by her in favour of the respondent is not one intended to operate on the title over the scheduled building and premises, but was being executed only by way of collateral security. **==> picture [186 x 13] intentionally omitted <==** 31[st] July, 2007 (K.P.Balachandran, Judge) tkv