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Murlidhar Aggarwal (D.)Thr. His Lr. Atul Kumar Aggarwal Vs. Mahendra Pratap Kakan (D.)Thr. Lrs. And Ors.

  Supreme Court Of India Civil Appeal /4275/2017
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2025 INSC 564 1

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 4275 OF 2017

MURLIDHAR AGGARWAL (D.)

THR. HIS LR. ATUL KUMAR AGGARWAL APPELLANT(s)

VERSUS

MAHENDRA PRATAP KAKAN (D.)

THR. LRS. AND ORS. RESPONDENT(s)

J U D G M E N T

K.V. Viswanathan, J.

1. The present appeal calls in question the correctness of the

Judgment and Order dated 09.01.2013 in Writ-A No. 8508 of 1999

passed by the High Court of Judicature at Allahabad. By the said

Judgment and Order, the High Court dismissed the Writ Petition of

the appellant and confirmed the order of the Appellate Authority. The

Appellate Authority had reversed the order of the Prescribed

Authority dated 20.12.1983 by which the Prescribed Authority had

2

allowed the application of the appellant and ordered the eviction of

the respondent-Ram Agya Singh on the ground of bona fide need.

BRIEF FACTS: -

2. On 13.10.1952, the respondents entered the suit property by

virtue of a lease deed executed by one Ram Swarup Gupta, the then

owner of the suit property. The lease was for a period of 10 years. The

predecessor-in-interest of the present appellant, one Shri Murlidhar

Aggarwal purchased the suit property on 26.03.1962. The suit

property is a Cinema building situated at 31, Shiv Charan Lal Road,

Allahabad, popularly known as Mansarovar Palace, along with its

furniture, fixture and fittings.

3. There is a previous round of litigation which requires a brief

mention. Case No. 124 of 1965 was instituted by Murlidhar Aggarwal

seeking eviction under Section 7A of the U.P. (Temporary) Control of

Rent and Eviction Act, 1947 (for short ‘1947 Act’). An order of

eviction was made by the Additional District Magistrate which was

confirmed by the Additional Commissioner. On a revision filed under

Section 7F of the 1947 Act, the tenants succeeded in getting the

3

eviction order set aside by filing a representation before the State

Government. Though the learned Single Judge at the behest of Shri

Murlidhar Aggarwal quashed the order of the State Government, the

Division Bench reversed the order and this Court, by a judgment

reported in Murlidhar Aggarwal v. State of U.P., (1974) 2 SCC 472,

confirmed the order of the Division Bench. The net result was that

the proceedings came to an end and the tenants continued to occupy

the premises.

4. On 09.10.1975, Murlidhar Aggarwal, the predecessor-in-interest

of the appellant herein filed Case No. 301 of 1975 under Section

21(1)(a) of the Uttar Pradesh Urban Buildings (Regulation of Letting,

Rent and Eviction) Act, 1972 (for short ‘Act of 1972’). Though

Rajkumar Aggarwal was applicant no. 2 before the Appellate

Authority, it is not in dispute that he has since relinquished his claim.

5. As is clear from the order of the Prescribed Authority, it was

specifically pleaded in the application that the said Shri Murlidhar

Aggarwal was living at the mercy of his father; that he has his wife

and children to look after; that there was no independent business

4

which they are doing and that in spite of their father’s repeated advice

to start some business they are not able to get a place to start the

business; that the opposite party is refusing to vacate the premises in

spite of the expiry of the lease; that the opposite party has other places

where he is carrying on business apart from their own residential

house; that the opposite party has cinema business in Gazipur and

Varanasi and are also doing film distribution business. It was

specifically pleaded that there was no independent income for the

applicants, and they are in bona fide need of the property. It was also

pleaded that their need was pressing, bona fide and genuine.

6. In response, the respondent-tenant (Ram Agya Singh, the

predecessor of the respondents) pleaded that he has spent around Rs.

30,000/- over the property, that the applicants are in joint family

business with their father Radhey Shyam Aggarwal; that Radhey

Shyam Aggarwal is running his business in the name of Ajanta

Talkies; and that the wife of Murlidhar Aggarwal, Prem Lata is a co-

licensee with her father-in-law in the Ajanta Talkies business. It was

also pleaded that the applicants have share in the firm Murlidhar

Gyanendra Kumar and that the monthly income was more than

5

sufficient for applicant No. 1 to maintain himself, his wife and

children. As far as their own business in Gazipur was concerned, it

was contended that it was in the name of the predecessor of the

respondent(s) and the premises of Gazipur were tenanted. The

running of the film distribution business in the name of Chitra Lok

Films was admitted. It was disputed that the need of the applicant is

bona fide and it was pleaded that a lot of employees were dependent

on the income from the Cinema which is being run in the suit

premises.

7. The Prescribed Authority held that in the earlier round, bona

fide requirement was found and the said finding was not disturbed

throughout. It independently examined the bona fide need in the

present application. The Prescribed Authority disbelieved the

contention that the applicant Murlidhar Aggarwal was part of the joint

family business with his father Radhey Shyam Aggarwal. The

Prescribed Authority held that no proof was adduced by the

respondent(s) to show that the Ajanta Talkies business was inherited

by the applicants.

6

8. The Prescribed Authority found that the applicant was getting a

salary of Rs. 1200/- from Ajanta Talkies business and Rs. 500/- per

month from Radhey Shyam and Sons and this was the only source of

income of applicant no. 1-Murlidhar Aggarwal.

9. The Prescribed Authority found that the respondent tenant could

not dispute the bona fide need of the applicant. The Prescribed

Authority further found that the applicant no.1-Murlidhar Aggarwal

had only some casual income which came from some speculative

business and the income was Rs. 11,142/- in 1975-76 and Rs. 9115/-

in 1976-77 and the applicant had a loss of Rs. 10,118/- in 1974-75. It

was concluded that the applicant no. 1-Murlidhar Aggarwal was

possessing wealth in the negative. In the end, the Prescribed Authority

recorded the following findings:-

“In the present case the income of applicant No1 does not

exceed more than Rs.ll,000/-. The applicant No 2 income

does not exceed more than Rs. 10,000/-. They are hardly

paying income Tax. The applicant No 2 has no other

business to do. His only income is from the interest on

deposits. They have wealth in minus. The opposite party

stated in his written statement in para No 2 that the

premises are purchased for doing profiteering. Applicant

No1 is married have children to look after. The applicant

are (sic) his demand for the release of the premises for

7

doing the Cinema business. The premises are not released.

If applicant started to earn his bread himself and for his

family by doing speculation and doing service elsewhere.

It does not mean (sic) they have no bona fide need of

premises. The applicant has to look for the avenues of

income to support his family. It is not the requirement of

law that applicant should sit idle till his premises are not

released. The opposite party failed to establish that there

is deceit in the need of the applicants. It appears that

premises are honestly and in good faith required by

landlord for carrying out his business as applicant No 2 is

still out of business. There is felt need on the part of

landlord for the release therefore; they are passing his

claim from 1965. The element of deceit is absent.

Therefore, I reach at conclusion that the premises in

dispute are bona fide required by the landlord. There is

felt need on the part of landlord for carrying the business.”

10. Thereafter, the aspect of comparative hardship was appreciated.

The Prescribed Authority recorded the following findings: -

“The three sons of the opposite party got the 2 proprietors

(sic.) at Ghazipur by a Will which is paper No Annexure

Paper No 27/A. the one property is Regal Talkies and other

property is not disclosed. The opposite party inherited the

ancestral property as only father of opposite party bequeathed

the self acquired property of his 3 grand sons. Thus the sons

of opposite party are well settled. The opposite party is man

of substance and running several Cinema Houses and paying

7 lacks Tax to Government. He is man of 76 year and

confined to bed as admitted in the Court. His all daughters

are married. He is also running the business of film

distribution.

I am putting on the weighing scale the need of both the

parties to Judge the comparative hardship. On one hand the

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opposite party Ram Agya Singh is man of substance running

several Cinema Houses in U.P doing also film distributing

business. His all the three sons are well settled. He is owner

No50/B/51/B and 36/A. He has no wordly liabilities to

discharge on his shoulders. His all daughters are married. He

is man of 76 years old and confined to bed. Fast approaching

toward the point of eternal sleep fixed for every human being.

The applicant No 1 is married and started to do service in

Ajanta Talkies and M/s Radhey Shyam and sons on the

monthly salary due to forced circumstances to maintain his

family. He has no other business to do. His income hardly

exceeds Rs. 1000/- per year. He started to do speculation

business to look after his family which is no longer a good

job. He has to discharge the wordly liabilities that are to

perform the marriages of his daughter. He is man of 40 years

age and have to long face the world. His sons are not settled

and pursuing the studies.

After giving the human touch to the whole affair it clear that

balance is in favour of landlord applicant. The premises were

leased out to opposite early for the period of 10 years in

year'1952. He is enjoying the premises from last 31 years.

I reach at conclusion on the basis of above findings that

landlord will suffer more hardship if the premises in question

not released in their favour.”

So finding, the Prescribed Authority ordered the eviction of the

respondent and further ordered the payment of Rs. 72,000/- as

equivalent to rent of 5 years as compensation for goodwill and loss of

business.

11. The respondent filed an appeal before the XI

th

Addl. District

Judge Allahabad, challenging the order of the Prescribed Authority.

9

Arguments that were already rejected about the alleged multiple

businesses of the appellant were once again canvassed.

12. The Appellate Authority discarded the finding of the Prescribed

Authority insofar as it was held by the said Authority that bona fide

need had already been found in the earlier round of litigation. Be that

as it may, we will keep this aspect of the matter aside since we find

that the Appellate Authority has not given convincing reasons for

dislodging the independent findings arrived at in the present

proceedings by the Prescribed Authority that the need for the

appellant was bona fide. The only finding recorded in this regard by

the Appellant Authority is as follows: -

“I fully agree with the contention of the applicants that on

the basis of the evidence the need of the respondents/

applicants for the disputed building is not bona fide. My

above view gets this support from the fact of the applicants

of the application. Appellant No. 1 has stated that he does

not have any business and or his savings and money have

been invested in the purchase of disputed building for

cinema. This fact has not only been denied by the opposite

party but it has also been proved by the evidence.

Appellant has not denied this fact that the business in the

name of M/s Radhey Shyam & Sons and M/s Murlidhar &

Gynander Kumar and M/s Ajanta Talkies are not in his

possession. The opposite party/appellant in this respect has

clearly stated and has also proved by the evidence that 40%

10

partnership of applicant No. 1 exists in M/s Radhey Shyam

& Sons and applicant No. 2 was a student and unmarried

person at the time of filing of application. Thus the

applicants has admitted that his income is also from other

sources which includes M/s Radhey Shyam and Sons, M/s

Ajanta Talkies, M/s Murlidhar Gyanander Kumar and

income tax is also being paid by him. The opposite

party/appellant also produced important documents

pertaining to income tax department on the file by which it

becomes clear that admittedly respondent is having income

from the business. Therefore, the case of the applicants that

they are not having any business becomes completely (sic)

proved untrue completely. In this respect the judgment

passed by the Ld. Prescribed Authority is wholly against

the facts. The Ld. Prescribed Authority has drawn this

conclusion that the income of the applicants is not

sufficient whereas the applicants have taken this stand that

they do not have any business. In view of this the

Prescribed authority in fact has found an additional new

case as proved contrary to the stand taken by the applicants

which is wholly against the facts available on the file.”

13. We find that this finding is wholly unsustainable. The

Prescribed Authority, after analyzing the documents, has concluded

that the wealth of the applicant was in the negative and the income

was also abysmally low and referred to the documentary evidence as

extracted hereinabove. The only reason given by the Appellate

Authority is that since the appellants took the stand that they have no

other business and the finding of the Prescribed Authority was that the

income is not sufficient, the Prescribed Authority has found a new

11

case wholly against the facts available on record. This finding is

completely untenable. The Prescribed Authority found that while

there was some income from speculative transactions which was

sporadic, the only consistent income for applicant was his salary

income and concluded that the wealth was in the negative as far as the

applicants were concerned. There is no contradiction, much less has

any new case been made out.

14. The other finding is about the fate of the Ajanta Talkies business

after the death of Radhey Shyam Aggarwal, father of Murlidhar

Aggarwal. The Prescribed Authority had found that the respondents

had not established as to how the applicants have a stake in Ajanta

Talkies. The Appellate Authority has recorded the following finding.

“The finding of the lower court that the onus of proving the

fact that the property of late Radhey Shyam was acquired

by applicants in succession, is against the law and cannot

be accepted. And such type of finding cannot be accepted

and the findings made on this basis that the applicants are

not the owners of Ajanta Talkies is against the facts.”

15. Thereafter, the Appellate Authority dealt with the other

businesses run by the tenant and recorded the following finding: -

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“On the other hand the Ld. Counsel of the appellant

disclosed about the above mentioned business according to

which Regal Talkies was in the ownership of late Thakur

Sehdev Singh wherein Late R.A. Singh is a tenant of Rs.

100/- per month after the death of Thakur Sehdev Singh as

per paper No. 11 List 928 all sons of late Shri R.A. Singh

got this building in succession and between the family

members of opposite party in Suit No. 15 of 1972 by way

of paper No. 19A Annexure 15 partition suit is pending in

the Court. It has also been shown that Gazipur is the

backward area and two other cinema halls Sahni Talkies

and Subhadra Talkies are also opened which are in better

condition and therefore the business of Regal Talkies is

running in loss. In this respect documents were also made

available on the file in which Regal Talkies running in loss

is shown. Besides this it is also worth mentioning that the

business of Mansarovar Cinema situated at Allahabad

cannot be compared with the business of Regal Talkies

Ghaziabad as clear by the comparative table of income

brought on the file.

Likewise in respect of Chitra Talkies situated at Varanasi it

has been proved that it was taken on rent and the contract

has been expired and now this business is not being done

by the opposite party. In the same manner it has been

shown in respect of Chitralok films that no business was

done by this company and now it is not in existence.

Likewise in respect of income derived from agricultural

land it can be said on the basis of available evidence that

this is not such an income shows upon which full

dependency can be attributed. Likewise on behalf of

applicant it has been told about Allahabad Motor Garage

that the same is also running in loss and it was submitted

that Mansarovar Cinema is only the business of opposite

party and his source of income and thus on the basis of

available evidence the need of disputed building by the

opposite party is real bona fide and urgent and the need of

the applicants cannot be said to be bona fide.”

13

16. What is clear is that there are several businesses which the

family of respondents run. All that is mentioned is that partition suits

are pending; that Gazipur is a backward area and that certain other

businesses are either on loss or have since closed down. As far as

agricultural income is concerned, it was concluded summarily that it

was not such an income on which full dependency could be attributed.

Thereafter, the Appellate Authority had found that the respondent

could be put to greater hardship if eviction is ordered.

17. It is this finding which has been affirmed by the High Court.

18. Mr. Balbir Singh, learned Senior Counsel for the appellant

contended that the Prescribed Authority having correctly arrived at

the finding of bona fide need by independently analyzing the evidence

in the case and there were no good grounds for the Appellate

Authority to reverse the said finding. It was also brought to the notice

that during the pendency of the proceeding in the High Court,

Murlidhar Aggarwal died and his son Atul Kumar Aggarwal has filed

an affidavit stating that he has no source of income and that he does

not have any other business. Further it is averred that there is no

14

commercial property except this suit property and that Atul Kumar is

crippled on account of the malfunctioning of the hip bone and is

moving with a limp.

19. On the other hand, Mr. Anand Varma, learned Counsel for the

respondents has reiterated the finding of the Appellate Authority. It is

further contended that legal heirs cannot continue the litigation on the

basis of the need of their father and ought to prefer a fresh application

for release in accordance with law, setting up their own requirement

for release of the premises in question. Learned counsel for the

respondents contended that at no stage of the present proceedings

have the legal heirs of the appellant set up their own need and

requirement for the property in question. According to the learned

Counsel, the legal heirs are already well settled and have no need for

the property. According to the learned Counsel, Civil Appeal @

Special Leave Petition, which has been filed on the basis of the need

of the appellant i.e. the original applicant, is thus not maintainable.

20. We have considered the submissions of learned Counsel for the

parties and perused the records.

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RELEVANT STATUTORY PROVISIONS: -

21. Section 21(1)(a) of the 1972 Act, along with the proviso is

extracted hereinbelow: -

“21. Proceedings for release of building under

occupation of tenant. –

(1) The prescribed Authority may, on an application of the

landlord in that behalf, order the eviction of a tenant from

the building under tenancy or any specified part thereof if it

is satisfied that any of the following grounds exists

namely-

(a) that the building is bona fide required either in its

existing form or after demolition and new construction

by the landlord for occupation by himself or any

member of his family, or any person for whose benefit

it is held by him, either for residential purposes or for

purposes of any profession, trade or calling, or where

the landlord is the trustee of a public charitable trust, for

the objects of the trust;

Provided that where the building was in the occupation of a

tenant since before its purchase by the landlord, such

purchase being made after the commencement of this Act,

no application shall be entertained on the grounds,

mentioned in clause (a), unless a period of three years has

elapsed since the date of such purchase and the landlord

has given a notice in that behalf to the tenant not less than

six months before such application, and such notice may be

given even before the expiration of the aforesaid period of

three years:

Provided further that if any application under clause (a) is

made in respect of any building let out exclusively for non-

residential purposes, the prescribed authority while making

16

the order of eviction shall, after considering all relevant

facts of the case, award against the landlord to the tenant an

amount not exceeding two years' rent as compensation and

may, subject to rules, impose such other conditions as it

thinks fit :

Provided also that no application under clause (a) shall be

entertained-

(i) for the purposes of a charitable trust, the objects of

which provide for determination in respect of its

beneficiaries on the ground of religion, caste or place of

birth;

(ii) in the case of any residential building, for

occupation for business purposes;

(iii) in the case of any residential building, against any

tenant who is a member of the armed forces of the

Union and in whose favour the prescribed authority

under the Indian Soldiers (Litigation) Act, 1925 (Act

No. IV of 1925) has issued a certificate that he is

serving under special conditions within the meaning of

section 3 of that Act, or where he has died by enemy

action while so serving, then against his heirs:

Provided also that the prescribed authority shall, except in

cases provided for in the Explanation, take into account the

likely hardship to the tenant from the grant of the

application as against the likely hardship to the landlord

from the refusal of the application and for that purpose

shall have regard to such factors as may be prescribed.

Explanation-- In the case of a residential building :

(i) where the tenant or any member of his family who has

been normally residing with or is wholly dependent on

him has built or has otherwise acquired in a vacant state or

has got vacated after acquisition a residential building in

the same city, municipality, notified area or town area, no

17

objection by the tenant against an application under this

sub-section shall be entertained;

Note-- For the purposes of this clause a person shall be

deemed to have otherwise acquired a building, if he is

occupying a public building for residential purposes as a

tenant, allottee or licensee.

(ii) [***]

(iii) where the landlord of any building is –

(1) a serving or retired Indian Soldier as defined in

the Indian Soldiers (Litigation), Act, 1925 (IV of

1925) and such building was let out at any time

before his retirement; or

(2) a widow of such a soldier and such building was

let out at any time before the retirement or death of

her husband, whichever, occurred earlier;

and such landlord needs such building for occupation

by himself or the members of his family for

residential purposes, then his representation that he

needs the building for residential purposes for himself

or the members of his family shall be deemed

sufficient for the purposes of clause (a), and where

such landlord owns more than one building this

provision shall apply in respect of one building only.”

22. Rule 16(2) of The Uttar Pradesh Urban Buildings (Regulation of

Letting, Rent and Eviction) Rules, 1972 (hereinafter referred to as the

“Rules of 1972”) is set out hereinbelow: -

“16. Application for release on the ground of personal

requirement.-

(2) While considering an application for release under

clause (a) of sub-section (1) of Section 21 in respect of a

18

building let out for purposes of any business, the

Prescribed Authority shall also have regard to such facts as

the following-

(a) the greater the period since when the tenant opposite

party, or the original tenant whose heir the opposite party

is, has been carrying on his business in that building, the

less the justification for allowing the application;

(b) where the tenant has available with him suitable

accommodation to which he can shift his business

without substantial loss there shall be greater justification

for allowing the application;

(c) the greater the existing business of the landlords own,

apart from the business proposed to be set up in the

leased premises, the less the justification for allowing the

application, and even if an application is allowed in such

a case, the Prescribed Authority may on the application

of the tenant impose the condition where the landlord has

available with him other accommodation (whether

subject to the Act or not) which is not suitable for his

own proposed business but may serve the purpose of the

tenant, that the landlord shall let out that accommodation

to the tenant on a fair rent to be fixed by the Prescribed

Authority;

(d) where a son or unmarried or widowed or divorced or

judicially separated daughter or daughter of a male lineal

descendant of the landlord has, after the building was

originally let out, completed his or her technical

education and is not employed in Government service,

and wants to engage in self-employment, his or her need

shall be given due consideration.

23. We must notice, at the outset, in this case that the bona fide need

was found established by the Prescribed Authority by its judgment of

20.12.1983. Shri Murlidhar Aggarwal died during the pendency of the

19

proceedings in the High Court. We have carefully scanned the finding

and we find that elaborate reasons have been adduced and cogent

finding recorded. Whether we apply the bona fide need as on the date

of the eviction petition or take into account the subsequent events, we

find that the bona fide need of the appellant on the facts of the present

case is made out on both scenarios.

24. Section 21(7) of the 1972 Act is an important provision which

reads as under: -

“21. Proceedings for release of building under

occupation of tenant –

(7). Where during the pendency of an application under

clause (a) of sub-section (1), the landlord dies, his legal

representatives shall be entitled to prosecute such

application further on the basis of their own need in

substitution of the need of the deceased.”

ANALYSIS AND REASONS: -

25. It is well settled that the bona fide requirement for occupation of

the landlord has to be liberally construed and, as such, even the

requirement of the family members would be covered. [See Joginder

Pal v. Naval Kishore Behal, (2002) 5 SCC 397 and Dwarkaprasad v.

Niranjan and Anr., (2003) 4 SCC 549]

20

26. In this case, we have Section 21(7) additionally to reinforce the

position. In the absence of any denial to the facts that Atul Kumar,

the son of Murlidhar Aggarwal is crippled and has no other source of

income or any other business, the need of the appellant has been

clearly established in this case. Hence, the objection to the

maintainability of the special leave petition is rejected.

27. The repeated reference to the alleged existence of other

businesses of the appellant does not carry the case of respondents any

further. At the outset, the bona fide need of the appellant is clearly

established. No doubt, Rule 16(2)(c) of the Rules of 1972 does

mention that greater the existing business of the landlords own, the

less the justification for allowing the application. It is also true that

comparative hardship is to be appreciated under the proviso to Section

21(1)(a) of the 1972 Act. We have weighed the evidence on record

and found that taking the case of the respondents at its highest, and

even if we believe each and every averment of the respondents at best,

the parties in financial terms could be said to be equally poised. The

respondents who own several businesses have managed to cling on to

the premises for the last 63 years, after the expiry of the 10-year lease.

21

28. In Mohd. Ayub and Anr. v. Mukesh Chand, (2012) 2 SCC 155,

this Court, by relying on Ganga Devi v. District Judge, Nainital and

Ors., (2008) 7 SCC 770 and Bhagwan Dass v. Jiley Kaur (Smt) and

Anr., 1991 Supp (2) SCC 300, held that one of the circumstances to

be seen while appreciating the comparative hardship is to examine

whether the tenant has brought on record any material to indicate that

at any time during the pendency of the long drawn-out litigation, he

made any attempt to seek an alternative accommodation and was

unable to get it. This factor will be one of the circumstances to be

taken into consideration while determining whether the claim of the

landlord is bona fide. In this case, nothing is on record to show that

the tenant who has been in the premises for a total of 73 years with 63

years of them after the expiry of the lease, has made any attempt to

seek any alternative accommodation and nothing is brought on record

to show that he was unable to get one.

29. In Sushila v. IInd Addl. District Judge, Banda and Ors.,

(2003) 2 SCC 28, interpreting Rule 16 of the Rules of 1972, it was

held as under:-

22

“10. A bare perusal of Rule 16 of the U.P. Urban Buildings

(Regulation of Letting, Rent and Eviction) Rules, 1972, makes it

clear that the Rule only prescribes certain factors which have also

to be taken into account while considering the application for

eviction of a tenant on the ground of bona fide need. Sub-rule (2)

of Rule 16 quoted earlier relates to the cases of eviction from an

accommodation for business use. Clause (a) of sub-rule (2)

provides, greater the period of tenancy less the justification for

allowing the application; whereas according to clause (b) in case

the tenant has a suitable accommodation available to him to shift

his business, greater the justification to allow the application.

Availability of another suitable accommodation to the tenant,

waters down the weight attached to the longer period of tenancy

as a factor to be considered as provided under clause (a) of sub-

rule (2) of Rule 16. Yet another factor which may in some cases

be relevant under clause (c) is where the existing business of the

landlord is quite huge and extensive leaving aside the proposed

business to be set up, there would be lesser justification to allow

the application. The idea behind clause (c) is apparent i.e. where

the landlord runs a huge business eviction may not be resorted to

for expansion or diversification of the business by uprooting a

tenant having a small business for a very long period of time. In

such a situation if eviction is ordered it is definitely bound to

cause greater hardship to the tenant.

11. In the case in hand we find that even though the period of

tenancy of the respondent is no doubt long but availability of

another shop to him where he can very well shift his business as

found by the prescribed authority, neutralises the factor of length

of tenancy in the accommodation in dispute. We further find that

the landlady has no other shop where she can establish her son

who is married and unemployed. There is nothing on the record

to indicate that the business of the father of Prem Prakash is

so huge or that it is a very flourishing business so as to attract

application of clause (c) of Rule 16(2). As observed earlier it is

clear that the length of the period of tenancy as provided under

clause (a) of sub-rule (2) of Rule 16 of the Rules, 1972 is only

one of the factors to be taken into account in context with other

facts and circumstances of the case. It cannot be a sole criterion

or deciding factor to order or not the eviction of the tenant.

23

Considering the facts in the light of Rule 16 pressed into service

on behalf of the respondent, we find that according to the

guidelines provided therein balance tilts in favour of the

unemployed son of the landlady whose need is certainly bona fide

and has also been so accepted by the respondent before us.”

30. Applying the same, we find that in this case also nothing has

been brought on record to show that the business of the appellant’s

family is so vast as to neutralize their bona fide claim to evict the

respondents from the suit property.

31. In Nidhi v. Ram Kripal Sharma(D.) Thr. LRs, (2017) 5 SCC

640, the landlady had moved away to a different town after marrying

an officer of the Indian Revenue Service. Notwithstanding that the

Court found her bona fide need had subsisted as she wanted the

premise not just for herself but to accommodate her parents &

grandparents like in the present case, the need for the family was

found.

32. In Sheshambal (D.) Thr. LRs. v. Chelur Corporation Chelur

Building and Ors., (2010) 3 SCC 470, where the landlady lost

throughout from the Trial Court stage, this Court while confirming the

eviction decree found that none of the married daughters had a bona

fide need for the premises and that the death of the landlady on facts

24

of that case brought to an end the ground of personal requirement.

The said case is wholly distinguishable from the facts that are

established in the present case.

33. We finally bring the “curtains down” on this long drawn out

litigation concerning the cinema hall. For the reasons stated above,

the appeal is allowed and the judgment and order of the High Court

dated 09.01.2013 in Writ-A No. 8508 of 1999 is set aside. The

respondents are granted time till 31.12.2025 to vacate the premises

and to deliver vacant and peaceful possession of the suit premises,

subject to the respondents filing the usual undertaking and clearing all

arrears, if any, of rent/use and occupation charges, within 4 weeks

from today. No order as to costs.

……….........................J.

[M. M. SUNDRESH]

.……….........................J.

New Delhi; [K. V. VISWANATHAN ]

24

th

April, 2025.

Reference cases

Description

Supreme Court Settles Decades-Old Eviction Battle: Analyzing `Murlidhar Aggarwal (D.) Thr. His LR. Atul Kumar Aggarwal v. Mahendra Pratap Kakan (D.) Thr. LRS. and Ors.`

This authoritative judgment by the Supreme Court of India provides crucial insights into **Bona Fide Need for Eviction** and complex **Landlord-Tenant Dispute Resolution**, reaffirming long-standing legal principles. The case, *Murlidhar Aggarwal (D.) Thr. His LR. Atul Kumar Aggarwal v. Mahendra Pratap Kakan (D.) Thr. LRS. and Ors.*, is a significant ruling now featured prominently on CaseOn, highlighting its importance in property law jurisprudence.

Case Background (Facts)

This protracted legal saga began with a lease deed executed on October 13, 1952, for a 10-year period, concerning a cinema building known as Mansarovar Palace in Allahabad. The property was subsequently purchased by Murlidhar Aggarwal's predecessor-in-interest on March 26, 1962. A previous round of litigation under the U.P. (Temporary) Control of Rent and Eviction Act, 1947, for eviction failed, allowing the tenants to continue occupation. In 1975, Murlidhar Aggarwal initiated new eviction proceedings under Section 21(1)(a) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (the 'Act of 1972'). He pleaded a bona fide and genuine need for the property, asserting that he lacked independent income or business, was living at his father's mercy, and needed the premises to establish a business and support his family. The tenant, Ram Agya Singh, countered by claiming significant investment in the property, asserting Murlidhar Aggarwal's involvement in a joint family business with substantial income, and possessing other cinema and film distribution businesses. The tenant also highlighted the hardship to his employees if eviction were ordered.

Issue Presented (Issue)

  • Did the High Court err in affirming the Appellate Authority's decision to reverse the Prescribed Authority's finding of a bona fide need for eviction by the landlord, Murlidhar Aggarwal (and subsequently, his legal heir)?
  • Was the comparative hardship analysis correctly applied, considering the landlord's genuine requirement and the tenant's long occupation and multiple businesses?
The Supreme Court primarily relied on Section 21 of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, particularly:

Section 21(1)(a) – Bona Fide Requirement

This section allows the Prescribed Authority to order eviction if the building is *bona fide* required by the landlord for personal occupation or for any family member, for residential, professional, trade, or calling purposes. Crucially, the proviso mandates consideration of 'likely hardship' to the tenant versus the landlord.

Section 21(7) – Death of Landlord During Pendency

This vital provision states that if a landlord dies during the pendency of an application under Section 21(1)(a), their legal representatives are entitled to prosecute the application based on *their own need*, substituting the need of the deceased. This allows the proceedings to continue without a fresh application.

Rule 16(2) of the 1972 Rules – Factors for Business Premises

This rule outlines factors for the Prescribed Authority to consider when ordering eviction for business purposes:
  • **(a)** Longer tenancy period generally implies less justification for eviction.
  • **(b)** Availability of suitable alternative accommodation for the tenant strengthens the justification for eviction.
  • **(c)** A landlord's existing huge business lessens the justification for eviction (to prevent uprooting a small tenant for expansion).
  • **(d)** A landlord's technically educated and unemployed son/daughter seeking self-employment should be given due consideration.

Court's Examination and Decision (Analysis)

Prescribed Authority's Findings

The Prescribed Authority meticulously analyzed the evidence and concluded that Murlidhar Aggarwal had a bona fide need. It found his income to be low (Rs. 1200/- salary, Rs. 500/- from another source) and his overall wealth in the negative. It disbelieved the tenant's claim of Murlidhar Aggarwal's involvement in a huge joint family business, finding no proof of inheritance for 'Ajanta Talkies.' The authority emphasized that the landlord needed avenues of income to support his family and that the tenant failed to establish deceit in the landlord's need. Regarding comparative hardship, the Prescribed Authority noted the tenant, Ram Agya Singh, was a 'man of substance,' running several cinema houses and film distribution businesses, with his three sons well-settled. In contrast, Murlidhar Aggarwal, aged 40, was married with children, had no other business, and was struggling financially. The balance, therefore, tilted heavily in favor of the landlord.

Appellate Authority and High Court's Reversal

The Appellate Authority reversed the Prescribed Authority's order, a decision subsequently affirmed by the High Court. The Appellate Authority's reasoning was deemed 'wholly unsustainable' by the Supreme Court. It found that the Appellate Authority wrongly concluded that Murlidhar Aggarwal's claim of 'no other business' was untrue because he had some income from other sources and paid income tax. The Supreme Court clarified that the Prescribed Authority had, in fact, acknowledged sporadic income but found his consistent income to be salary and his wealth to be negative, making no new case or contradiction. Furthermore, the Appellate Authority's finding that the Prescribed Authority erred in placing the onus on the tenant to prove the applicants' stake in 'Ajanta Talkies' was also rejected. The Supreme Court found the Appellate Authority's assessment of the tenant's businesses (Regal Talkies running in loss, Chitra Talkies lease expired, Chitralok films non-existent, agricultural income not substantial) to be inadequate and not robust enough to dismiss the landlord's need. Legal professionals seeking quick insights into rulings like these, along with a comprehensive understanding of statutory provisions, find immense value in CaseOn.in's 2-minute audio briefs, which expertly analyze such specific judgments for efficient legal research.

Supreme Court's Reassessment of Bona Fide Need and Comparative Hardship

The Supreme Court affirmed the Prescribed Authority's findings. It highlighted Section 21(7), noting that Murlidhar Aggarwal's son, Atul Kumar Aggarwal, who took over the litigation after his father's death, was crippled, had no other source of income, and no other commercial property. This reinforced the 'bona fide need' even under subsequent events. The Court stressed that bona fide requirement must be liberally construed, covering the needs of family members (citing *Joginder Pal v. Naval Kishore Behal* and *Dwarkaprasad v. Niranjan and Anr.*). Addressing comparative hardship, the Supreme Court considered the tenant's long occupation (73 years, 63 after lease expiry) but found no evidence that the tenant attempted to seek alternative accommodation, which is a crucial factor (*Mohd. Ayub and Anr. v. Mukesh Chand*). It also reiterated that the tenant's family having 'several businesses' (even if some were in loss or dispute) did not negate the appellant's genuine need, aligning with Rule 16(2)(c) interpretation in *Sushila v. IInd Addl. District Judge, Banda and Ors.* The Court concluded that even at its highest, the financial positions of both parties were, at best, equally poised, but the landlord's need, especially with the son's circumstances, was clearly established.

Conclusion (Conclusion)

The Supreme Court allowed the appeal, setting aside the judgment and order of the High Court and reversing the Appellate Authority's decision. It affirmed the Prescribed Authority's finding of bona fide need and ordered the eviction of the tenants. The respondents were granted time until December 31, 2025, to vacate the premises, subject to filing a usual undertaking and clearing all arrears of rent/use and occupation charges within four weeks.

Why This Judgment is an Important Read for Lawyers and Students

This judgment is a crucial read for legal professionals and students for several reasons:
  • **Reaffirmation of Bona Fide Need:** It clarifies the liberal interpretation of 'bona fide need' under rent control laws, particularly how the courts should assess a landlord's genuine requirement, even when some incidental income exists.
  • **Application of Section 21(7):** The case highlights the practical application and significance of Section 21(7), allowing legal heirs to continue eviction proceedings based on their own needs, thus ensuring continuity in the pursuit of justice for landlords.
  • **Comparative Hardship Analysis:** It provides a detailed example of how comparative hardship should be weighed, emphasizing the tenant's responsibility to demonstrate efforts in finding alternative accommodation and the comprehensive evaluation of both parties' financial and business statuses.
  • **Critique of Appellate Overreach:** The Supreme Court's strong criticism of the Appellate Authority's 'unsustainable' findings serves as a reminder of the judicial discipline required in reviewing factual conclusions, especially those arrived at by the primary authority after detailed evidence analysis.
  • **Long-Drawn Litigation:** The case illustrates the complexities and prolonged nature of landlord-tenant disputes in India, underscoring the need for clear evidentiary standards and judicious application of law to bring such matters to a definitive close.

Disclaimer

All information provided in this blog post is for informational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, readers are advised to consult with a qualified legal professional for specific legal concerns.

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