1973 (3) TMI 139 - SC - Indian Laws

Supreme Court Restores City Civil Court's Eviction Order, Upholds Landlord's Bona Fide Requirement

K.K. Chari Versus R.M. Seshadri

The Supreme Court allowed the appeal, setting aside the High Court's order and restoring the City Civil Court's order. The court held that the decree for ... - Issues Involved:1. Whether the order dated March 31, 1969, passed by the Court of Small Causes, Madras, directing the eviction of the respondent tenant is a nullity and as such not executable.2. Whether the court satisfied itself regarding the bona fide requirement of the landlord for his own occupation.3. Whether the compromise decree is valid under the Madras Buildings (Lease & Rent Control) Act, 1960.4. Whether the tenant's objections to the landlord's title and the validity of the notice under Section 106 of the Transfer of Property Act were considered.Issue-wise Detailed Analysis:1. Whether the order dated March 31, 1969, passed by the Court of Small Causes, Madras, directing the eviction of the respondent tenant is a nullity and as such not executable:The respondent contended that the decree for eviction was a nullity because it was based solely on a compromise without the Rent Control Court satisfying itself independently about the bona fide requirement of the landlord. The High Court agreed, holding that the eviction order is void as the Rent Controller did not apply his mind to the statutory requirement. However, the Supreme Court reversed this, stating that the court was satisfied about the landlord's bona fide requirement based on the evidence and the tenant's unconditional withdrawal of his defense.2. Whether the court satisfied itself regarding the bona fide requirement of the landlord for his own occupation:The Supreme Court emphasized that the landlord had provided substantial evidence, including 45 exhibits, to support his claim of bona fide requirement. The tenant, despite initially contesting the claim, withdrew his defense unconditionally and submitted to a decree for eviction. The court inferred that the tenant accepted the landlord's claim as true. The Supreme Court held that the Rent Controller's satisfaction could be inferred from the materials on record and the procedural stage reached, indicating that the court applied its mind to the statutory requirement.3. Whether the compromise decree is valid under the Madras Buildings (Lease & Rent Control) Act, 1960:The Supreme Court clarified that an order of eviction based on a compromise is not necessarily void if the jurisdictional fact, i.e., the existence of statutory conditions, is established. The court stated that the satisfaction of the Rent Controller need not always be explicitly stated in the order but can be inferred from the proceedings and the evidence presented. The court concluded that the decree for eviction was valid as the landlord's bona fide requirement was established and accepted by the tenant through the compromise.4. Whether the tenant's objections to the landlord's title and the validity of the notice under Section 106 of the Transfer of Property Act were considered:The tenant had initially raised objections regarding the landlord's title and the validity of the notice. However, by unconditionally withdrawing his defense, these objections were effectively waived. The Supreme Court noted that these issues no longer survived for consideration due to the tenant's withdrawal of all defenses.Conclusion:The Supreme Court allowed the appeal, setting aside the High Court's order and restoring the City Civil Court's order. The court held that the decree for eviction was neither void nor inexecutable, as the Rent Controller was satisfied about the landlord's bona fide requirement based on the evidence and the tenant's withdrawal of defense. The court also dismissed the tenant's objections regarding the landlord's title and the validity of the notice.