Supreme Court Allows Landlord's Eviction Appeal in U.P. Rent Act Case — Tenancy for Composite Purpose Permits Eviction for Commercial Need. The Court held that the High Court erred in entertaining a plea of maintainability for the first time in writ jurisdiction and that concurrent findings of fact should not be interfered with.

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Case Note & Summary

The Supreme Court allowed the appeals filed by the landlords, Deepak Tandon and another, against the judgment of the Allahabad High Court which had dismissed their eviction application under Section 21(1)(a) of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. The appellants were owners of a house in Allahabad, which they had let out to the respondent-tenant, Rajesh Kumar Gupta. The appellants sought eviction on the ground of bona fide need for their business operations, alleging they were currently operating from a tenanted premises and had no other suitable accommodation. The Prescribed Authority allowed the application, finding the need bona fide, and the District Judge affirmed this on appeal. However, the High Court, in a writ petition under Article 227, set aside these orders, holding that the eviction application was not maintainable because the tenancy was essentially for residential purpose, while the eviction was sought for commercial need. The Supreme Court found that the High Court erred in entertaining the plea of maintainability for the first time in writ jurisdiction, as the tenant had not raised this plea before the lower authorities. The Court held that the nature of tenancy (residential, commercial, or composite) is a mixed question of law and fact requiring pleading and evidence, and cannot be decided without factual foundation. It further held that if the tenancy is for composite purpose, the landlord can seek eviction for either residential or commercial need. The Court also emphasized that concurrent findings of fact based on evidence are binding on the writ court and should not be interfered with unless perverse. Consequently, the Supreme Court set aside the High Court's order, restored the orders of the Prescribed Authority and the District Judge, and granted the tenant three months to vacate subject to payment of arrears and advance rent.

Headnote

A) Rent Control - Maintainability of Eviction Application - Section 21(1)(a) U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 - Plea of maintainability not raised before lower authorities cannot be raised for first time in writ - The respondent-tenant failed to raise the plea of maintainability before the Prescribed Authority or the First Appellate Court; hence, the High Court erred in entertaining such plea for the first time in writ jurisdiction (Paras 18-21).

B) Rent Control - Nature of Tenancy - Mixed Question of Law and Fact - Section 21(1)(a) U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 - Whether tenancy is for residential, commercial, or composite purpose is a question of fact requiring pleading and evidence - The High Court erred in deciding this issue without factual foundation (Paras 22-24).

C) Rent Control - Composite Tenancy - Landlord's Right to Evict - Section 21(1)(a) U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 - If tenancy is for composite purpose (residential and commercial), landlord can seek eviction for either residential or commercial need - The High Court's view that eviction for commercial need was not permissible was erroneous (Para 25).

D) Writ Jurisdiction - Interference with Concurrent Findings of Fact - Article 227 of the Constitution of India - Concurrent findings of fact based on evidence are binding on writ court and should not be interfered with unless perverse - The High Court exceeded its jurisdiction by setting aside concurrent findings without examining their legality (Paras 26-27).

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Issue of Consideration

Whether the High Court was justified in allowing the writ appeal and dismissing the landlord's eviction application under Section 21(1)(a) of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 as not maintainable on the ground that the tenancy was for residential purpose and the eviction was sought for commercial need.

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Final Decision

Appeals allowed; impugned order of High Court set aside; orders of Prescribed Authority and District Judge restored; respondent granted three months to vacate subject to payment of arrears and advance rent.

Law Points

  • Plea of maintainability cannot be raised for first time in writ if not pleaded earlier
  • Question of tenancy purpose is mixed question of law and fact
  • Concurrent findings of fact binding in writ jurisdiction
  • Landlord can seek eviction for commercial need if tenancy is for composite purpose
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Case Details

2019 LawText (SC) (2) 51

Civil Appeal Nos. 1537-1538 of 2019 (Arising out of S.L.P.(C) Nos.15585-15586 of 2017)

2019-02-07

Abhay Manohar Sapre, Dinesh Maheshwari

Mr. Avi Tandon for appellants, Mr. Nitin Bhardwaj for respondent

Deepak Tandon & Anr.

Rajesh Kumar Gupta

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Nature of Litigation

Civil appeals against High Court order dismissing eviction application under Section 21(1)(a) of U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972.

Remedy Sought

Appellants (landlords) sought eviction of respondent (tenant) from suit house for their bona fide business need.

Filing Reason

Appellants needed the suit house for their business operations as they were carrying on business in a tenanted premises and had no other suitable accommodation.

Previous Decisions

Prescribed Authority allowed eviction; District Judge affirmed; High Court set aside orders and dismissed application as not maintainable.

Issues

Whether the High Court was justified in allowing the writ appeal and dismissing the eviction application as not maintainable on the ground that the tenancy was for residential purpose and eviction sought for commercial need. Whether the plea of maintainability can be raised for the first time in writ jurisdiction when not pleaded before lower authorities. Whether the nature of tenancy (residential/commercial/composite) is a question of fact or law. Whether concurrent findings of fact can be interfered with in writ jurisdiction.

Submissions/Arguments

Appellants argued that the High Court erred in entertaining the plea of maintainability for the first time and in interfering with concurrent findings of fact. Respondent argued that the eviction application was not maintainable as the tenancy was for residential purpose and eviction was sought for commercial need.

Ratio Decidendi

A plea of maintainability not raised before lower authorities cannot be raised for the first time in writ jurisdiction. The nature of tenancy (residential, commercial, or composite) is a mixed question of law and fact requiring pleading and evidence. If tenancy is for composite purpose, landlord can seek eviction for either residential or commercial need. Concurrent findings of fact based on evidence are binding on writ court and should not be interfered with unless perverse.

Judgment Excerpts

In our considered opinion, the High Court committed jurisdictional error in setting aside the concurrent findings of the two Courts below and thereby erred in allowing the respondent's writ appeal and dismissing the appellants' application under Section 21(1)(a) of the Act, 1972 as not maintainable. If the tenancy is for composite purpose because some portion of tenanted premises was being used for residence and some portion for commercial purpose, i.e., residential and commercial, then the landlord will have a right to seek the tenant's eviction from the tenanted premises for his residential need or commercial need, as the case may be.

Procedural History

Appellants filed eviction application (P.A. No.20/2011) before Prescribed Authority, Allahabad under Section 21(1)(a) of U.P. Act, 1972. Prescribed Authority allowed application on 10.01.2013. Respondent appealed to District Judge, Allahabad (Rent Control Appeal No.52/2013), which was dismissed on 30.05.2014. Respondent then filed writ petition under Article 227 before Allahabad High Court, which allowed the writ appeal on 03.08.2016 and dismissed the eviction application. Review application (Civil Misc. Review Application No. 275082 of 2016) was dismissed on 24.03.2017. Appellants then filed special leave petitions in Supreme Court, which were converted into civil appeals.

Acts & Sections

  • U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972: Section 21(1)(a)
  • Constitution of India: Article 227
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