1990 (11) TMI 423 - SC - Indian Laws

Summary

Issues Involved:
1. Condition of the building.
2. Bona fide requirement of the landlord.
3. Legislative intent and protection of tenants.
4. Interpretation of Section 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.
5. Judicial review and appreciation of evidence.

Detailed Analysis:

1. Condition of the Building:
The landlord sought eviction under Section 14(1)(b) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, claiming the building was over 100 years old and liable to crumble. The tenant refuted this, citing previous reports and petitions by the landlord that described the building as structurally sound. The statutory authorities and the High Court found the building structurally safe and sound, despite its age. However, the High Court held that the building's condition was not decisive in determining the landlord's bona fide requirement for demolition and reconstruction.

2. Bona Fide Requirement of the Landlord:
The landlord argued that the property's location justified its demolition and reconstruction for better economic use, which was in the public interest. The High Court agreed, stating that the landlord's requirement for a legitimate scheme of demolition and reconstruction was bona fide, even if the building was structurally sound. The tenant contended that Section 14(1)(b) focuses solely on the building's condition and not the landlord's economic interests.

3. Legislative Intent and Protection of Tenants:
The judgment emphasized the legislative intent to protect tenants from unreasonable eviction, balancing the interests of both landlords and tenants. The overriding consideration was to safeguard tenants against unjustified demands for higher rent or eviction. The court underscored that the Act's primary objective is to control rents and prevent unreasonable eviction, reflecting the acute shortage of accommodation.

4. Interpretation of Section 14(1)(b):
The court analyzed Section 14(1)(b), which allows eviction if the building is bona fide required for immediate demolition and reconstruction. The term "immediate purpose" was interpreted to mean a directly connected and timely purpose, not necessarily instant action. The condition of the building must indicate a bona fide requirement for timely demolition and reconstruction. The court held that a sound and safe building does not qualify for demolition under this section. The landlord's requirement must be genuine, timely, and directly connected to the statutory purpose of demolition and reconstruction.

5. Judicial Review and Appreciation of Evidence:
The court reviewed the judicial approach to evidence and findings of fact by statutory authorities. It emphasized that judicial review does not entail re-evaluation of evidence but ensures that the authority has acted within its jurisdiction, considered all relevant facts, and applied the law correctly. The court found that the Controller, appellate authority, and High Court had erred by not considering the building's sound condition as a relevant factor for eviction under Section 14(1)(b).

Conclusion:
The Supreme Court set aside the judgment under appeal, emphasizing that the condition of the building is a vital factor in determining the bona fide requirement for eviction under Section 14(1)(b). The landlord's petition for eviction was dismissed, and the appeal was allowed with costs. The court reiterated the legislative intent to protect tenants from unreasonable eviction and the need for careful consideration of the building's condition in such cases.