V G PANNEERDAS AND CO Vs. SWADESAMITRAN LIMITED

JUDGEMENT

(1.) This application for special leave under Art. 136 of the Constitution is directed against the revisional order of the Madras High Court dated August 5, 1986 upholding the order passed by the Appellate Authority under the Tamil Nadu Buildings Lease and Rent Control) Act, 1960 hereinafter referred to as 'the Act').

(2.) The petitioner is a tenant of about 7,000 sq. ft. in the ground floor of the premises known as the Victory House situated on the Mount Road in Madras on a monthly rent of Rs. 7,000/-. The respondent-landlord applied for the petitioner's eviction on the ground that the building had become more than a century old and was no longer safe for the tenant to occupy and, therefore, the building had to be pulled down and a new one raised. There were several tenants in the premises who, realising the genuineness of the landlord's stand, volunteered to vacate and surrender possession. The petitioner, however, refused to do so. The respondent-landlord had ultimately to ask for eviction under S. 14(1)(b) of the Act for the purpose of demolition and reconstruction. The petitioner maintained that he was in possession of the premises from 1971 and the Managing Director of the respondent had agreed to renew the lease for a period of 10 years and the petitioner had deposited a sum of Rs. 21,000/-. It was further maintained that the respondent had offered to sell the land and the building measuring 10 grounds for a consideration of Rs. 20 lakhs to the petitioner but subsequently backed out and filed the application for eviction. The petitioner further claimed that the building did not require demolition or reconstruction. On the other hand the respondent wanted to turn out the petitioner from occupation with a view to raising the consideration amount for selling portions of the property. The petitioner raised an additional contention that the Managing Director had no authority to institute the proceeding.

(3.) The Rent Controller dismissed the application. On appeal, the Appellate Authority examined the entire material on record and on an appropriate analysis thereof came to hold that the application for eviction had to be granted. He accordingly decreed eviction. The petitioner went before the High Court challenging the appellate order of eviction and reiterated its objections to the maintainability of the application for eviction. The High Court found that the building was an old one. The learned Judge observed :-