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Issues: Whether the amendment to the East Punjab Urban Rent Restriction Act, 1949, which withdrew a landlord's right to seek eviction of a tenant from a non-residential building on the ground of bona fide personal requirement, was violative of Article 14 of the Constitution of India.
Analysis: The Act, as originally enacted, applied its eviction scheme to both residential and non-residential premises and recognised bona fide need of the landlord as a ground for eviction. The amendment created a distinction by removing that ground only in relation to non-residential buildings. The object of the Act was to regulate rent and prevent mala fide evictions, not to confer lifelong protection on tenants of commercial premises. A classification between residential and non-residential premises could not be justified where the landlord's bona fide need stood on the same footing in both cases and the restriction operated without a rational connection to the legislative object. The resulting bar on recovery of commercial premises even for genuine personal need was held to be harsh and arbitrary.
Conclusion: The amendment failed the test of reasonable classification and was unconstitutional as offending Article 14.
Final Conclusion: The appeal succeeded, the High Court's order was set aside, and the original eviction ground for a landlord's bona fide need in respect of non-residential premises stood restored.
Ratio Decidendi: A statutory classification must have an intelligible differentia with a rational nexus to the object of the law, and a rent-control amendment that deprives landlords of eviction for bona fide personal requirement only in respect of non-residential premises, without such nexus, is discriminatory and unconstitutional under Article 14.