High CourtDivision BenchAppeal allowed.

Vijay Kumar Ahluwalia & Ors. v. Bishan Chand Maheshwari & Anr.

Case / Petition Number:Civil Appeal No. 1546 of 2017
Neutral Citation:[2017] 1 S.C.R.680

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Jasti Chelameswar
  • Abhay Manohar Sapre
Judgment Date
2017-02-07
Court Decision / Holding
Appeal allowed. The impugned judgment and the order passed by the Additional Rent Controlling Authority dated 13.08.2012 in E-167/2011 (Annexure-P-6 of SLP) are set aside. The appellants-tenant are granted leave to contest the eviction application on merits. The eviction case (Case No. E-167/2011) is restored to its original file before the Rent Controlling Authority for disposal on merits. The appellants are directed to deposit the entire arrears from the date of the application for eviction and continue to deposit rent on or before the 15th of each month at the rate determined by the High Court until final orders. The Rent Controlling Authority is directed to decide the case expeditiously.
Final Disposition
Appeal allowed.

Parties to the Case

Appellants / Petitioners

  • Vijay Kumar Ahluwalia & Others

Respondents

  • Bishan Chand Maheshwari
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • Nikunj Dayal

Counsels for Respondents

  • • S. Gurukrishna Kumar
  • • Ms. Meenesh Dubey
  • • Mohan Raj
  • • S. R. Setia

Case Synopsis & Summary

Vijay Kumar Ahluwalia & Ors. v. Bishan Chand Maheshwari & Anr. is a Supreme Court decision arising from eviction proceedings under the Delhi Rent Control Act, 1958. The tenants challenged an eviction petition under Section 14(1)(e) before the Rent Controller, seeking leave under Section 25B(4) to contest on merits. The landlord asserted ownership by inheritance and adoption, aiming to evict the tenants on grounds of bona fide need to start a business and lack of alternative accommodation within the building. The tenants argued that the ownership claim based on an adoption deed surfaced only after many years; they had not attorned to respondent No.1 as owner, and no reliable landlord–tenant relationship had been established. They further contended that the landlord had available alternative accommodation, undermining the bona fide need. The Supreme Court held that when deciding leave to contest eviction under rent laws, the authority is not required to consider the merits of the eviction grounds. If the grounds raised prima facie disclose a defence which, if accepted, could defeat eviction, leave to contest should be granted. On the facts, the Court found prima facie that ownership via the adoption deed, the devolution of tenancy after the landlady’s death, and the alleged bona fide need with available alternatives were sufficient to grant leave to contest on merits. The impugned order of the Rent Controller and High Court was set aside, and the matter was remanded for merits adjudication, with directions to deposit arrears. The decision emphasizes speedy disposal and confirms tenants’ entitlement to contest where a prima facie defence exists.

Provisions of Law Cited

Delhi Rent Control Act, 1958, Section 25B(4)Delhi Rent Control Act, 1958, Section 25B(5)Delhi Rent Control Act, 1958, Section 14(1)(e)Delhi Rent Control Act, 1958, Section 14

Legal Doctrines & Maxims

  • prima facie defence
  • bona fide need
  • attornment (landlord-tenant relationship concept)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that, for leave to contest under Section 25B(4) of the Delhi Rent Control Act, 1958, the grounds raised — ownership of respondent No.1 over the suit shop based on an adoption deed surfaced after 17 years, the devolution of tenancy after the death of the landlady, and the bona fide need with availability of alternative accommodation in the same building — disclose a prima facie defence. They argued they had not attorned to respondent No.1 as owner and there was no proven landlord-tenant relationship. They asserted the need could be met by other accommodation, making the eviction ground not genuine. The authority should therefore grant leave to contest on merits, permitting a full adjudication of the eviction petition without bar from the contested grounds.

Contentions of Respondents

The landlord contended that the eviction petition under Section 14(1)(e) should stand and that leave to contest was unwarranted. He stressed the long gap since the alleged adoption, urged the ownership claim as valid, and maintained the bona fide need for business within the shop. He argued the Rent Controller and High Court rightly decided against granting leave to contest, as the merits of eviction grounds should not be explored at that stage. He urged that there was no genuine alternative accommodation within the building that would negate the need, thus justifying eviction.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Vijay Kumar Ahluwalia & Ors. v. Bishan Chand Maheshwari & Anr. and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

[2017] 1 S.C.R.680 A ## VIJAY KUMAR AHLUWALIA & ORS. v. BISHAN CHAND MAHESHWARI & ANR. (Civil Appeal No. 1546 of2017) B FEBRUARY 07, 20 I 7 ## [J. CHELAMESWAR AND ABHAY MANOHAR SAPRE, JJ.] _Delhi Rent Control Act, I958_ - _ss. 25 B(4), I4 (e) -Application filed by appellants (tenants) u!s. 25B(4) for grant of leave to contest the eviction proceedings filed by respondent No.I (landlord) against the appellants u!s. I4(e)_ - _Rejection of, by courts below_ - _On appeal, held: While considering the grant of leave to contest the eviction proceedings under the Rent Laws, the Authority/Court is not expected to examine the merits and demerits of the grounds raised in the application for grant of leave to contest and if the Authority/Court finds that the grounds raised prima facie disclose a defence which, if accepted, may result in non-suiting the landlord from claiming eviction, tenant is entitled to obtain leave to contest the eviction proceedings on merits_ - _On facts, grounds sufficient for granting leave to the appellants to contest the eviction application of respondent No. I on merits_ - _Grounds raised by appellants, if accepted, could result in dismissal of respondent No.Is eviction application thereby dis entitling him to claim appellants'_ - _eviction from the suit shop Thus, the order passed by Additional Rent Controlling Authority set aside._ c D E > Allowing the appeal, the Court F HELD:l.I The ground relating to proof of ownership of respondent No.I over the suit shop, which was based O'l the alleged adoption deed set up by him, for the first time, after I 7 years coupled with the ground in relation to devolution oftei.ancy between the parties after the death of landlady and lastly, the G ground relating to _bona fide_ need and availability of the alternative accommodation did disclose _primafacie_ facts within the meaning of sub-sections 4 and 5 of Section 25B of the Delhi Rent Control Act, I958 to contest the eviction application of respondent_ No.I on merits. It is, _inter alia,_ for the reasons, though _prima facie,_ H that the appellants had not attorned to respondent No.I as the 680 G 681 VIJAY KUMAR AHLUWALIA & ORS. v. BISHAN CHAND MAHESH\\'ARI & ANR. owner of the suit shop and, in turn, his status as landlord; there was no evidence to prove the existence of relationship of landlord and tenant between the parties; and specific averments were made by the appellants to show availability of alternative accommodation to satisfy the need of respondent No.1, if it really existed. The said grounds; were sufficient for granting leave to the appellants to contest the eviction application of respondent No.1 on merits. [Paras 18-20] [684-F-H; 685-A-B] 1.2 While considering the grant ofleave to contest the eviction proceedings under the Rent L'.!w.s, the Authority/Court is not expected to examine the merits and demerits of the grounds raised in the application for grant of leave to cnntest and if the Authority/ Court finds that the grounds raised _prima facie_ disclose a defence which, if accepted, may result in non-suiting the landlo~d from claiming eviction, the tenant is entitled to obtain leave to contest the eviction proceedings on merits. In the instant case, it is found that the appellants-tenant have made out such grounds and therefore, a _prima facie_ case was made out entitling the appellants for grant of leave to contest the eviction proceedings filed by respondent No.1 against them on merits. The grounds raised by the appellants, if accepted, could result in dismissal of res~ondent No.1 's eviction application thereby disentitling him to claim appellants' eviction from the suit shop. Thus, the reasoning and the conclusion arrived at by the Rent Controlling Authority and the High Court cannot be concurred with. The impugned judgment and the order passed by the Additional Rent Controlling Authority are set aside. [Paras 17, 21-23] (684-D-E; 685-C, D-F] CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1546 of 2017. A B c D E F From the Judgment and Order dated 04.08.2014 of the High Court of Delhi at New Delhi in RC Rev. No. 76 of2013. Nikunj Dayal, Pramod Dayal, Ms. Payal Dayal, Advs. for the Appellants. G S. Gurukrishna Kumar, Sr. Adv., Ms. Meenesh Dubey, Mohan Raj, S. R. Setia, Advs. for the Respondents. The Judgment of the C_ourt was delivered by ABHAY MANOHAR SAPRE, J. 1. Leave granted. H 682 SUPREME COURT R'£PbRTS [2017] I S.C.R. A B 2. This appeal is filed against the final judgment and order dated 04.08.2014 passed by the High Court of Delhi at New Delhi in RCR No. 76 of2013 whereby the High Court dismissed the revision filed by the appellants herein against the judgment dated 13.08.2012 of the Additional Rent Controller, Delhi by which the leave to contest the application filed by the appellants-tenant has been dismissed and the eviction petition under Section 14( I )(e) of the Delhi Rent Control Act, 1958 (hereinafter referred to as "the Act") filed by respondent No. I was decreed. 3. We herein set out the facts, in brief, to appreciate the issue involved in this appeal. c D E F 4. One Miri Mal was the owner of the shop situated on the ground floor of property bearing No. I 548/V, Nai Sarak, Delhi-I I 0 006 (hereinafter referred to as "the suit shop"). Miri Mal let out the suit shop to one Ram Prakash in 1944 on monthly rent of'EkAna'. Miri Mal died in 1974 leaving behind his widow-Smt. Ram Piari, who became the owner/landlady of the suit shop by inheritance. After the death ofMiri Lal, Ram Piari started collecting rent from Ram Prakash. Ram Prakash died in 1989 leaving behind his son (appellant herein). Smt. Ram Piari died issueless in 1994. 5. Almost after 17 years of the death of Smt. Ram Piari, on 28.07.2011, Respondent No. I herein claiming to be the adopted son of Miri Mal and Smt. Ram Piari, filed an application under Section 14(1 )(e) of Act seeking appellants' eviction from the suit shop being Case No. E-167/2011. Respondent No. I sought eviction, _i111er a/ia,_ on the ground that he is the adopted son of Miri Mal and Smt. Ram Piari, thertfore, became the owner and landlord of the suit shop on their death as their adopted son by inheritance. Respondent No. I sought eviction on the ground of his _bonafide_ need to start a business in the suit shop. 6. In order to prove his ownership over the suit shop, respondent No. I filed some documents which included one adoption deed dated 14.03.1978 alleged to have been executed by Smt. Ram Piari. G H 7. The appellants, on receipt of the summons of the application, filed an application with an affidavit under Section 25B( 4) of the Act by raising grounds therein and sought leave to contest the application filed by respondent No. I for eviction. Since the issue relating to the ownership of respondent No. I over the suit shop, on the strength of adoption deed surfaced for the first time in these proceedings, the appellants in his 683 VIJAY KUMAR AHLUWALIA & ORS. v. BISHAN CHAND MAHESHWARI & ANR. [ABHAY MANOHAR SAPRE, J.] leave to contest the application denied the ownership of respondent No. I over the suit shop so also the relationship oflandlord and tenant between them. The appellants also denied the _bona fide_ need set up by respondent No. I contending, _inter alia,_ that alternative suitable accommodation in the building in question is available to respondent No. I on other floors and hence the plea of _bona fide_ need is not genuine. These were essentially the grounds on which the appellants sought leave to contest the application on merits. 8. Respondent No. I denied the averments made by the appellants in the application for leave to contc;t. The appellants then filed rejoinder and reiterated their grounds already taken in the application for leave to contest. A B c 9. By order dated 13.08.2012, the Additional Rent Controller dismissed the application filed by the appellants for leave to contest and passed an eviction order against the appellants from the suit shop. 10. Felt aggrieved by the said order, the appellants filed revision before the High Court. By impugned judgment dated 04.08.2014, the High Court dismissed the revision. D 11. Challenging the order of the High Court, the appellants liave filed this appeal by way of special leave before this Court. 12. Heard Mr. Nikunj Dayal, learned counsel for the appellants and Mr. S. Gurukrishna Kumar, learned senior counsel for respondent No. I. Respondent No.2 refused to acknowledge the receipt of the service of notice issued to him under registered cover. This refusal on the part of respondent No.2 is deemed as proper service. 13. Learned counsel for the appellants (tenant) while assailing the legality and correctness of the impugned order contended that the Rent Controlling Authority and the High Court erred in dismissing the ai:;pellants' application for leave to contest the eviction application filed by respondent No. I. It was his submission that keeping in view the grounds raised by the appellants in the application, especially, three grounds, namely, first, relating to ownership ofrespondent No. I over the suit shop, second, the existence of the relationship oflandlord and tenant between them and, third, the availability of alternative suitable accommodation in the same building for accomplishing the need, _primafacie,_ a case is made out to contest the respondent No, l's application for eviction on merits. The Rent Controlling Authority and the High Court should have, therefore, E F G H , 684 [20 l 7] I S.C.R. SUPREME COURT REPORTS - A granted leave to contest respondent No. I's application on merits on these grounds. B 14. In reply, learned senior counsel for respondent No. I supported the impugned order and contended that no case is made out to interfere in the impugned order which, according to him, is based on proper reasoning calling no interference in this appeal. 15. Having heard the learned counsel for the parties and on perusal of the record of the case, we find force in the submissions of the learned counsel for the appellants. _c_ 16. The short question, which arises for consideration in this appeal, is whether the Courts below were justified in rejecting the application filed by the appellants under Section 25B( 4) of the Act for grant ofleave to contest the eviction proceedings filed by respondent No. I against the. appellants under Section 14 ( e) of the Act on merits? 17. In our considered opinion, the application filed by the appellants D under Section 25B( 4) of the Act seeking leave to contest the eviction application ofrespondent No. I should have been allowed to enable the appellants (tenant) to contest the eviction application on its merits. In other words, keeping in view the grounds raised by the appellants, we are of the opinion that a _prima facie_ case was made out entitling the E appellants to contest the application of respondent No. I on merits. The grounds raised by the appellants, if accepted, could result in dismissal of respondent No.l's eviction application thereby disentitling him to claim appellants' eviction from the suit shop. I 8. We find that the ground relating to proof of ownership of respondent No.1 over the suit shop, which was based on the alleged F adoption deed set up by him, for the first time, after 17 years coupled with the ground in relation to devolution of tenancy between the parties after the death of Smt. Ram Piari and lastly, the ground relating to _bona fide_ need and availability of the alternative accommodation did disclose _primafacie_ facts within the meaning of sub-sections 4 and 5 of s~ction G 25B of the Act to contest the eviction application ofrespondent No. I on merits. 19. It is, _inter a/ia,_ forthe reasons, though _primafacie,_ that, firstly, the appellants had not attorned to respondent No.1 as the owner of the suit shop and, in turn, his status as landlord; Secondly, there was no H evidence to prove the existence of relationship of landlord and tenant 685 . VJJAY KUMAR AHLUWALIA & ORS. v. BISHAN CHAND MAHESHWARI & ANR. [ABHAY MANOHAR SAPRE, J.) between the parties; and Thirdly, specific averments were made by the appellants to show availability of alternative accommodation to satisfy the need of respondent No. I, if it really existed. 20. The aforesaid grounds, in our view, were sufficient for granting leave to the appellants to contest the eviction application ofrespondent No. I on merits. 21. It is a settled principle oflaw that while considering \lie grant of leave to contest the eviction proceedings under the Rent Laws, the Authority/Court is not expected to examine the merits and demerits of the grounds raised in the ~pp Ii cation for grant of leave to contest and if the Authoriiy/Court finds that the grounds raised _primafacie_ disclose a defence which, if accepted, may result in non-sl!iting the landlord from claiming eviction, ·the tenant is entitled to obtain leave to contest the eviction proceedings on merits. In this case, we find that the appellantstenant have made out such grounds and are, therefore, entitled for grant of leave to conies! the eviction proceedings filed by respondent No. I against thein on merits. A B c D _ii._ ],2. }!! .~he. light of foregoing discussion, we are unable to concur with thereasoning and the conclusion arrived at by the Rent Controlling Authori.tY.ai.icl. the High Court. ". 23. ·As a result, the appeal succeeds and is accordingly allowed. The impugnedjudgment and the order passed by the Additional Rent Controlling Authority dated 13.08.2012 in E-16712011 (Annexure-P-6 of SLP)are set aside. As a consequence thereof, th~ application filed by the appellants under Section 258(4) of the Act dated 29.08.2011 (Anilexure P-3 of SLP) is allowed. The appellants-tenant are granted leave to:contest the application filed by respondent No. I under Section 14 of the Act on 1nerits. 24. The eviction case filed by respondent No. I being Case No. E- 167/2011 out of which this appeal arises is accordingly restored to its original file before the Additional Rent Controlling Authority for its disposal on merits in accordance with law. · ' '25.' The appellants are directed to deposit the entire arrears of r~~t I . ' .. p~~~bi~ ~ " . ' fi~m ' the date of application filed by respondent No. I for their e'(iction and continue to deposit the monthly rent on or before 15'' of each month at the rate determined by the High Court till final orders are passed by the Rent Controlling Authority. Failure to deposit the arrears E F G H 686 SUPREME COURT REPORTS [2017] I S.C.R. - A including monthly rent, as directed herein, would result in refusal !o contest the eviction proceedings. 26. Let the arrears be deposited within one month. Depending upon the result of the final order, appropriate orders for payment of rent deposited be passed. B c 27. Before parting with the case, we consider it apposite to mention that we have not expressed any opinion on the merits of the grounds raised by the parties. The Rent Controlling Authority would, therefore, decide the case on merits strictly in accordance with law without being influenced by any of our observations made in this order. 28. Since the matter relates to eviction, we direct the Rent Controlling Authority to decide the same expeditiously. **Nidhi Jain** Appeal allowed.