OM PRAKASH Vs MISHRI LAL (DEAD) REP. BY HIS LR. SAVITRI DEVI
Bench: ARUN MISHRA,AMITAVA ROY
Case number: C.A. No.-004309-004309 / 2017
Diary number: 11506 / 2015
Advocates: RAMENDRA MOHAN PATNAIK Vs
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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 4309 OF 2017 (ARISING OUT OF SLP (C) NO. 17414 of 2015)
OM PRAKASH & ANR. …..APPELLANTS
VERSUS
MISHRI LAL (DEAD) REPRESENTED BY HIS LR. SAVITRI DEVI ....RESPONDENT
WITH
CIVIL APPEAL NO. 4310 OF 2017 (ARISING OUT OF SLP (C) NO. 20758 of 2015)
RAJENDRA PRASAD & ANR. …..APPELLANTS
VERSUS
MISHRI LAL (DEAD) REPRESENTED BY HIS LR. SAVITRI DEVI & ANR. ..…RESPONDENTS
J U D G M E N T
AMITAVA ROY, J.
Delay condoned.
2. Leave granted.
3. The appellants/plaintiffs (for short, hereinafter to be
referred to as “the appellants”) are aggrieved by the dismissal of
their suit and the application under the Uttar Pradesh Urban
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Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
(for short, hereinafter to be referred to as “the Act”) for eviction
of the respondents from the suit premises on the ground,
amongst others of default and bona fide requirement. The suit
and the application filed under Section 21 of the Act have been
dismissed in two separate proceedings by the High Court vide
orders dated 25.02.2014 in W.P.(C) No. 26732 of 2010 and Civil
Miscellaneous Writ Petition No.31855 of 1998.
4. Both these petitions were analogously heard and thus
the present adjudication would address collectively the issues
involved.
5. We have heard Mr. Anand Varma, learned counsel for
the appellants and Mr. R.D. Upadhyay, learned counsel for the
respondents.
6. The appellants as plaintiffs instituted Suit No. 252 of
1989 in the Court of Small Causes, Allahabad against Mishri
Lal, the predecessor-in-interest of the present respondents
seeking his eviction from the suit premises on the ground of
default in payment of rent and sub-letting of the suit premises
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without the knowledge and approval of the landlords i.e. the
appellants. The appellants claimed themselves to be the joint
owners of the suit premises since the death of their grand-
mother Chameli Devi, widow of late Mahabir Prasad on
30.07.1985. They referred to a will dated 28.12.1976 executed
by their afore-named grand-mother in support of their claim of
joint ownership. They averred that the predecessor-in-interest
of the respondents was a tenant of the suit premises since 1968
against payment of monthly rent of Rs. 96/- and the same was
rented out on the clear understanding that the tenant would
vacate the same on one month’s notice. The appellants alleged
that the tenant i.e. the predecessor-in-interest of the
respondents paid rent till October, 1979 and thereafter
persistently failed to make payment thereof in spite of repeated
demands. Due to such default, the relationship between the
landlords and tenant became strained, and as claimed by the
appellants, he without offering the rent to the landlords, made
deposits thereof under Section 30 of the Act, which was invalid
and non est in law. Situated thus, the appellants addressed a
notice dated 18.08.1989 terminating the tenancy, demanding
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payment of the arrears of rent within the statutory period of one
month with the clear indication that in case of failure to
respond to the notice and the request for rent, the tenancy
would stand determined and that the tenant would be liable for
eviction. According to the appellants the notice was served on
26.08.1989, but despite the same, rent was not paid and
consequently the tenancy stood terminated.
7. It was further alleged that the tenant also sub-let the suit
premises to one Moti Chand for conducting his business
therein. It was thus averred that on this ground as well, as the
sub-letting was done without the knowledge and consent of the
landlords, the tenant was liable for eviction. The suit was thus
filed for recovery of arrears of rent, eviction of the tenant/
defendant and for damages for unauthorised use or occupation
of the tenanted premises as well as for interest.
8. The original defendant/tenant in his written statement
though admitted the tenancy under Smt. Chameli Devi, the
grand- mother of the appellants, he refused to acknowledge the
appellants as his landlords. He claimed that the tenancy had
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commenced from 1957 and that he had paid rent up to the
month of September, 1989 to the landlord, Bhola Nath (father
of the appellants) and that on his refusal to accept the same
thereafter, he had deposited the rent in court under Section 30
of the Act. The defendant/tenant admitted Smt. Chameli Devi
to be the landlady who used to realize the rent till her life time
and after her death, Bhola Nath, her eldest son used to collect
the same. He admitted the receipt of the notice dated
18.08.1989, but denied that he was a defaulter in payment of
rent or that he was liable for eviction from the suit premises.
9. According to him, Motichand was his nephew and
partner in his business and that as he was like his own son, the
allegation of sub-letting was unfounded. Elaborating on the
facts preceding the deposit of rent in Court, the tenant
reiterated that after the refusal by Shri Bhola Nath to accept the
rent subsequent to September, 1989, he remitted the rent for
the month of October and November, 1989 by money order
dated 04.12.1989 but the same was refused again. He stated
that thereafter, for the second time, he dispatched the rent for
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the months of October, November and December, 1989 on
26.12.1989 by money order but similarly the same was refused.
According to the tenant, he again on 12.01.1990 remitted the
rent for the months of October, 1989 to January, 1990 by
money order and as the same was refused again, he started
depositing the rent in Court, the first deposit being vide Misc.
Case No.41 of 1990 for the months of October, 1989 to
January, 1990.
10. He denied the execution of the will dated 28.12.1976 by
Smt. Chameli Devi, who had two sons Bhola Nath and
Bacchanlal, but admitted that the eldest son Bhola Nath used
to realize rent from him.
11. Parallelly the appellants also filed an application under
Section 21 of the Act before the Prescribed Authority against the
original defendant/tenant seeking release of the suit premises
on the ground of bona fide and genuine need therefor to,
amongst others conduct their business therein. This
application was contested as well by the original defendant by
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filing his objection questioning the bona fide need of the
appellants.
12. The Trial Court, on the basis of the pleadings, framed
issues and the parties adduced evidence, both oral and
documentary. The appellants in particular examined their
father Bhola Nath as PW2, who admittedly used to collect rent
from the defendant/tenant till September, 1979, as claimed by
them.
13. The Trial Court decreed the suit, both on the ground of
default in payment of rent and sub-letting of the suit premises.
In reaching this conclusion, it amongst others took note of the
testimony of Bhola Nath, son of Smt. Chameli Devi, who
supported the pleaded case of the appellants and endorsed the
factum of execution of will by Smt. Chameli Devi on the basis of
which they (appellants) claimed joint ownership of the suit
premises. It also noticed that such joint ownership had not
been questioned or disputed by any quarter. It also referred to
a compromise decree between the heirs of Bhola Nath and his
brother Bachan Lal, rendered in Original Case No. 95 of 1986
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qua the will, which too authenticated the claim of the
appellants of the suit premises. Noticing the admission of the
original defendant/tenant of having paid rent to Bhola Nath,
the father of the appellants, the Trial Court negated his
challenge to their claim of joint ownership and their status of
landlord vis-a-vis the suit premises.
14. While upholding the allegation of sub-letting, the Trial
Court as well held that the deposit of rent made by the original
defendant was not in terms of the Act and therefore he was not
entitled to the protection from eviction. It held the view that
though disputed, even if the rent for the months of October,
1989 to January, 1990 had been sent to Bhola Nath vide money
order, it did not amount to offering thereof to the appellants, the
landlords, and thus the deposit in Court was not as mandated
by Section 30 of the Act. According to the Trial Court, Bhola
Nath was only a collector of rent on behalf of the appellants and
therefore, offer thereof ought to have been made to them
(appellants) for a valid deposit under Section 30 of the Act. The
suit was thus decreed in full, as prayed for.
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15. This verdict was challenged by the original
defendant/tenant in revision before the District Judge,
Allahabad, who reversed the same on the ground that the
appellants have not been able to prove that they were the
exclusive landlords owners of the suit premises.
16. The appellants thereafter filed a writ petition before the
High Court, which remanded the matter to the Revisional Court
by noticing, in particular the compromise decree dated
05.04.1989 in Original Case No. 95 of 1986, in which the joint
ownership of the appellants in the suit premises had been
decreed.
17. The Revisional Court, on remand, however maintained
that the will dated 28.12.1976, on the basis of which the
appellants claimed joint ownership had not been proved, as
required under Section 63 of the Indian Succession Act, 1925
and Section 68 of the Indian Evidence Act, 1872. Besides, it
also expressed its reservation with regard to the authenticity
and genuineness of this document. The suit was thus
dismissed by upturning the decree of the Trial Court.
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Consequently, the Revisional Court did not examine the other
issues on merits.
18. By the impugned judgment and order as well, the High
Court, while limiting itself to the aspect of the proof of the will,
concurred with the Revisional Court and dismissed the suit of
the appellants. Apropos, the proceedings based on the
application under Section 21 of the Act for the eviction of the
original defendant on the ground of bona fide requirement, the
High Court, by the impugned verdict, upheld the rejection
thereof, as recorded by the Prescribed Authority by negating
their status of that of a landlord. In reaching this conclusion,
the High Court noted that Bhola Nath, the father of the
appellants used to collect rent from the original defendant
throughout and that they did not at any point of time claim to
be the owners/landlords of the suit property, pursuant to the
will executed by Smt. Chameli Devi. It also concurred with the
findings recorded by the Prescribed Authority and the Appellate
Court on the issue of bona fide need and comparative hardship.
The High Court was of the view that the will dated 28.12.1976
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on the basis of which the appellants had claimed joint
ownership was not proved as required in law and thus, the
mere registration thereof did not either suggest its genuineness
or its validity so as to provide the locus standi to them to
maintain the application.
19. The learned counsel for the appellants has emphatically
urged that the issue of their joint ownership having been settled
finally in view of the compromise decree dated 05.04.1989
rendered in Original Case No. 95 of 1986 and their status as
the heirs of Smt. Chameli Devi having been conclusively
established, the suit filed for the eviction of the predecessor-in-
interest of the respondents in that capacity was maintainable,
more particularly in the absence of any dispute of title inter se
the other legal heirs. In the alternative, it has been argued that
in any view of the matter, the appellants being the sons of
Bhola Nath, who admittedly used to collect rent and was a
landlord under the Act, they were entitled to receive rent qua
the suit property from the tenant as landlords under the statute
and, therefore not only the predecessor-in-interest of the
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respondents were estopped from denying their status as such,
but had made himself liable for eviction therefrom by persistent
default in payment of rent. The learned counsel for the
appellants has submitted that the High Court in this factual
background had grossly erred in dismissing the suit and the
application for release of the suit premises filed under Section
21 of the Act on the sole purported ground that the will
executed by Smt. Chameli Devi on 28.12.1976 had not been
proved. Additionally, as the appellants have proved that the
original tenant had continuously defaulted in payment of rent
and had sub-let the premises without the knowledge and
approval of the landlords, the Trial Court was justified in
decreeing the suit for his eviction, he urged. It was further
argued that the suit premises being required bone fide by the
appellants for their genuine need for business, the impugned
judgments and orders, if allowed to stand would result in
serious miscarriage of justice.
20. As against this, the learned counsel for the respondents
has maintained that the appellants in the attendant facts and
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circumstances are neither the landlords nor the owners of the
suit premises, which is clearly borne out by the fact that the
rent therefor was initially collected by Smt. Chameli Devi and
thereafter, by their father Bhola Nath, during his lifetime. It
has been argued that as Bhola Nath refused to receive rent, it
was offered to him and thereafter was deposited in court under
Section 30 of the Act and thus the original defendant/tenant
by no means can be branded as defaulter. It was reiterated that
Motichand was the nephew of the original tenant as well as a
partner in his business and thus his stay in the suit premises
did not amount to sub-letting thereof. The learned counsel for
the respondents also endorsed the finding of all the forums on
the absence of bona fide need or requirement of the appellants
of the suit premises.
21. The competing assertions and the materials on record
have been duly taken note of. Before adverting thereto, it would
be appropriate to undertake a brief survey of the relevant
provisions of the Act, which as the title suggests, is a legislation
for regulation of letting and rent of and the eviction of tenants
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from certain classes of building, situated in the urban areas
and for matters connected there with. The expressions “tenant”
and “landlord” are defined as hereunder:
3(a) “tenant” in relation to a building, means a person by whom its rent is payable, and on the tenant's death, his heirs.
3(j) “landlord”, in relation to a building, means a person to whom its rent is or if the building were let would be, payable, and includes, except in clause (g), the agent or attorney, or such person.
22. It would be apparent from hereinabove that a “tenant” in
relation to a building is a person by whom rent is payable and
on his death, his heirs. “Landlord” vis-a-vis a building, as
defined, means a person to whom its rent is or if the building
was let, would be payable and or include the agent or attorney
of such person. The definition of “Family” being not relevant in
the present context qua the expression “landlord” is not being
dilated upon. In terms of Section 20 of the Act, a suit for
eviction of a tenant for building after the determination of his
tenancy may be instituted on one or more of the grounds as
enumerated in sub-section (2), clauses (a) to (g) which includes:
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(i) arrears of rent for not less than four months and
failure to pay the same to the landlord within one
month from the date of service upon him of a
notice of demand; and
(ii) sub-letting of the suit premises by the tenant in
contravention of the provisions of Section 25 of the
whole or any part of the building.
23. Sub-section 4 of Section 20 provides that if at the first
hearing of the suit, the tenant unconditionally pays or tenders
to the landlord, the entire amount of rent and damages for use
and occupation of the building due from him (such damages for
use and occupation being calculated at the same rate as rent)
together with interest thereon at the rate of 9% per annum and
the landlord’s cost of the suit in respect thereof after deducting
therefrom any amount already deposited by the tenant under
sub-section 1 of Section 30, the court may in lieu of passing a
decree for eviction, pass an order relieving the tenant against
his liability for eviction, on that ground. The proviso thereto
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being not of any consequence in the present case is not being
referred to.
24. Section 21 authorises the Prescribed Authority to order
the eviction of a tenant from the building under tenancy or any
specified part thereof, if it is satisfied, on an application by the
landlord, that, amongst others the building is bona fide
required either in its existing form or after demolition and
raising of new construction by the landlord for occupation by
himself or any member of its 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 if the landlord is
a trustee of a public charitable trust, for the objects of the trust.
25. Sub-section 4 clarifies that such an order may be made
notwithstanding that the tenancy has not been determined with
the exception that no such order would be made in the case of
tenancy created for a fixed term by registered lease, before the
expiry of such term.
26. Section 30 of the Act permits deposit of rent in court in
certain circumstances. It predicates that if any person claiming
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to be a tenant of a building tenders any amount as rent in
respect of the building to its alleged landlord and the alleged
landlord refuses to accept the same, then the tenant may
deposit such amount in the prescribed manner and continue to
deposit any rent which he alleges to be due for any subsequent
period in respect of such building until the landlord in the
meantime signifies by notice in writing to the tenant, his
willingness to accept it. Sub-section 2 elaborates that where
any bona fide doubt or dispute has arisen as to the person who
is entitled to receive any rent in respect of any building, the
tenant may likewise deposit the rent stating the circumstances
under which such deposit is made and may until such doubt
has been removed or such dispute has been settled by the
decision of any competent court or by settlement between the
parties, continue to deposit the rent that may subsequently
become due in respect of such building.
27. Whereas sub-sections (4) and (5) provide for issuance of
notice of the deposit to the alleged landlord or the
person/persons concerned, sub-section (6) mandates that in
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respect of such a deposit being made, it would be deemed that
the person depositing it has paid it on the date of such deposit
to the person in whose favour it is deposited. Section 38
proclaims that the provisions of that Act would have effect
notwithstanding anything inconsistent therewith contained in
the Transfer of Property Act, 1882 or in the Code of Civil
Procedure, 1908.
28. It is a matter of record that Smt. Chameli Devi, widow of
Mahabir Prasad was the grand-mother of the appellants. As the
verdict in original Case No. 95 of 1986, consistently referred to
by all the Forums, would divulge, Mahavir Prasad and
Chameli Devi had two sons Bhola Nath and Bachhan Lal. As
noted hereinabove, the appellants are the sons of Bhola Nath.
Incidentally, Radha Devi, wife of Bacchan Lal and her sons
instituted the afore-mentioned suit i.e. Original Case No.95 of
1986 in the Court of the Additional Civil Judge- VI, Allahabad
seeking declaration of title in respect, amongst others of the suit
premises. This was contested by Bhola Nath and the
appellants and in course of the adjudication, the will dated
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28.12.1986 executed by Chameli Devi surfaced for scrutiny. On
the basis of this document, the appellants claimed ownership of
the suit premises. As the decision rendered in that suit on
05.04.1989 would reveal, a compromise was arrived at between
the parties having due regard to the said will, whereby the
ownership of the suit premises of the sons of Bhola Nath and
Bacchan Lal was declared and a decree to that effect was
passed. This decree, indisputably, has become final, in absence
of any challenge thereto before any forum. In the face of this
compromise decree, in our comprehension, the dismissal of the
suit and the rejection of the application for the release under
Section 21 of the Act by the High Court on the sole ground that
the appellants had no locus to maintain the same in absence of
formal proof of the will dated 28.12.1976 was grossly
misdirected and thus cannot be sustained, more particularly in
view of the definition of the “landlord” provided in the Act.
29. Noticeably, the predecessor-in-interest of the respondents
had admitted the tenancy under Smt. Chameli Devi. He has
admitted as well that during her lifetime, rent used to be paid to
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her and thereafter her elder son, Bhola Nath, father of the
appellants used to receive the rent. It is his pleaded case that
as was the arrangement, he paid rent to Bhola Nath upto
September, 1979, whereafter he refused to accept the same.
Incidentally, even assuming that the plea of the original
defendant of having paid rent to Bhola Nath up to September,
1989 is correct (the allegation of the appellants is that the
default is from October, 1979), the default from October 1989
is incidentally subsequent to the compromise decree, as
afore-mentioned whereunder the sons of Bhola Nath and
Bachan Lal were held to be the owners of the suit premises. It
is a matter of record that the appellants by notice dated
19.08.1989 had demanded from the original defendant the
arrears of rent from October, 1979 which was admittedly
received by him but not acted upon. In spite thereof, according
to the original defendant, he offered rent to Bhola Nath for the
months of October, 1989 to January, 1990 by remitting the
same by money-orders and on the alleged refusal thereof,
eventually deposited the rent in court under Section 30.
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30. In view of the categorical disclosure in the notice dated
18.08.1989, issued on behalf of the appellants, requiring
payment of rent in arrears to them as the landlords and also
indicating determination of tenancy in case of failure in
payment, we are of the view that the so called offer of rent for
the months of October, 1989 to January, 1990 to Bhola Nath
by money-orders and thereafter deposit in Court under Section
30 of the Act would be of no avail to the original defendant and
on his death, the present respondents. The original defendant
in terms of the aforementioned notice was fully aware of the
compromise decree and the status of the appellants as the joint
owners/landlords and thus his offer of rent to Bhola Nath, who
ceased to be the landlord, was not in compliance either of
sub-section 4 of Section 20 or Section 30 of the Act to be
availed as a defence against his/their eviction from the suit
premises. The original defendant and consequently the
respondents has/have therefore rendered himself/themselves
as defaulters within the meaning of the Act and are liable to be
evicted thereunder. It is more so as admittedly neither the
original defendant nor the respondents had ever endeavoured to
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offer rent to the appellants after the compromise decree dated
05.04.89.
31. Viz-a-vis the aspect of sub-letting, we are inclined to
concur with the finding of the Trial Court that Motichand, who
was the nephew of the original defendant, had been inducted in
the suit premises as a sub-tenant. Further as it is a matter of
record that the original defendant had constructed his own
house elsewhere where he has been residing with his wife, the
accommodation of his nephew Motichand in the suit premises
did amount to sub-letting and the same having been done
without the knowledge and approval of the landlords, this too
provided a ground for his eviction therefrom. Additionally, even
if the deposit of arrears of rent in full by the original defendant
at the time of institution of the suit is construed to be valid, in
the face of his own house elsewhere, he is not entitled to the
protection from eviction under the proviso to sub-section 4 of
Section 20. To be elaborate, under sub-section 4 of Section 20,
as referred to hereinabove, if a tenant, at the first hearing of
the suit, unconditionally pays or tenders to the landlord the
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entire amount of rent and damages for use and occupation of
the building due from him together with interest thereon @
9% per annum and the landlords' costs of the suit in respect
thereof, after deducting therefrom any amount already
deposited by the tenant under sub-section1 of Section 30, the
court may, in lieu of passing a decree for eviction on that
ground, pass an order relieving the tenant against his liability
for eviction on the ground of default. The proviso thereto
predicates that this benefit would not be available to a tenant
who or any member of his family has built or has otherwise
acquired in a vacant state, or has got vacated after acquisition,
any residential building in the same city, municipality, notified
area or town area. Apart from the fact that no evidence is
forthcoming to attest that the requirements of sub-section 4 of
Section 20 had been fully complied with, the construction of his
own house elsewhere, as is evident from the record, did
dis-entitle the original defendant and now the respondents to
avail the benefit of such protection, as contemplated by the
Act.
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32. It is no longer res integra and is settled by this Court in
Sri Ram Pasricha vs. Jagannath and Ors., (1976) 4 SCC
184, Dhannalal vs. Kalawatibai and Ors. (2002) 6 SCC 16
and India Umberalla Manufacturing Co. and Ors. vs.
Bhagabandei Agarwalla (dead) by Lrs. Savitri Agarwalla
(Smt.) and Ors. (2004) 3 SCC 178 that a suit for eviction of a
tenant can be maintained by one of the co-owners and it would
be no defence to the tenant to question the maintainability of
the suit on the ground that the other co-owners were not joined
as parties to the suit. The judicially propounded proposition is
that when the property forming the subject matter of eviction
proceedings is owned by several co-owners, every co-owner
owns every part and every bit of the joint property along with
others and thus it cannot be said that he is only a part owner or
a fractional owner of the property and that he can alone
maintain a suit for eviction of the tenant without joining the
other co-owners if such other co-owners do not object. In the
contextual facts, not only the compromise decree, as
aforementioned, has declared the appellants to be the joint
owners of the suit premises, their status as such has not been
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questioned at any stage by anyone interested in the title
thereto.
33. Further, the original defendant having accepted Smt.
Chameli Devi as his landlady and thereafter continued to pay
rent to her son Bhola Nath, the father of the appellants, in
terms of the definition of “landlord” in Section 3(j) of the Act, he
during his life time and after his demise, the respondents are
estopped under Section 116 of the Indian Evidence Act, 1872 to
dispute the status of the appellants as their landlord in a suit
for his eviction from the tenanted premises.
34. That a tenant during the continuance of the tenancy is
debarred on the doctrine of estoppel from denying the title of his
landlord through whom he claims tenancy, as is enshrined in
Section 116 of the Indian Evidence Act, 1872, is so well-settled
a legal postulation that no decision need be cited to further
consolidate the same. This enunciation, amongst others is
reiterated by this Court in S. Thangappan vs. P. Padmavathy
(1999) 7 SCC 474 and Bhogadi Kannababu and Ors. vs.
Vuggina Pydamma and others (2006) 5 SCC 532. In any
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view of the matter, the appellants, being the son of Bhola Nath,
who at all relevant time, was the landlord vis-à-vis the original
defendant and the respondents in terms of Section 3(j) of the
Act, their status as landlords for the purpose of eviction under
the Act, could not have been questioned so as to non suit them
for want of locus.
35. To reiterate, the High Court by the decisions impugned,
had dismissed the suit and the application for release of the
suit premises under Section 21 of the Act, principally on the
ground of want of standing of the appellants. In the face of the
determination made hereinabove, the said conclusion is
unsustainable on facts and in law and are thus liable to be set
aside, which we hereby do. Having regard to the conclusions
recorded on the aspect of default in payment of rent and
sub-letting, both statutorily recognized grounds for eviction of a
tenant under Section 20 of the Act, it is considered inessential
to dilate on the ground of bona fide requirement and
comparative hardship. In the wake up of the above, the
impugned judgments and orders of the High Court are set-aside
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and the suit of the appellants is decreed in full. The
respondents would vacate the suit premises at the earliest and
in no case later than three months from today. The appeals
are allowed. No costs.
............................................J. (ARUN MISHRA)
….........................................J. (AMITAVA ROY)
NEW DELHI; MARCH 21, 2017.