KRISHNA D S Vs. DIGVIJAY INDUSTRIES

JUDGEMENT

(1.) This Revision Petition is filed under Section 22 of the A.P. Buildings (Lease, Rent and Eviction) Control Act by the tenant. The order of the appellate Court (Chief Judge, City Small Causes Court, Hyderabad) passed in R.A.No. 485 of 1988, which was the appeal preferred by the landlord, is under challenge. By the impugned order, the Chief Judge, Small Causes Court allowed the appeal filed by the landlord-respondent and ordered eviction of the petitioner from the premises bearing Municipal No. 1-8-583, situated in Azamabad Industrial Area.

(2.) The dispute is in respect of a factory shed with a hall measuring 50' x 40' and an attached room together with contiguous open space of 50' x 20', of which the petitioner obtained lease from the respondent on 1-10-1964. The eviction petition was filed on the grounds of wilful default in the payment of rent and the denial of jural relationship of landlord and tenant without bona fides. The stipulated rent for the premises is Rs. 650/- per month. It is common ground that the rent was not paid from March, 1976 onwards. The case of the tenant is that the rent need not be paid to the original landlord in view of the subsequent event of the paramount title-holder, namely the State Government, resuming the land and allotting the same on lease to the petitioners industry. Earlier, two eviction petitions were filed in the years 1974 and 1975 on the grounds of wilful default and bom fide requirement. These petitions were dismissed for default. The rent due upto February, 1976 was subsequently paid.

(3.) In order to appreciate the controversy, it is necessary to have a back ground of the relevant events. M/s. Shivachand Mohanlal and Company was assigned by the Government of Hyderabad a plot of land measuring Ac. 1-22 guntas (6301.68 square metres) in the industrial area of Azamabad in the year 1952. The said firm constructed a building (factory shed) and leased it out to M/s Digvijay Industries, which is the respondent herein, with permission to sub-lease. M/s. Digvijay Industries in its turn leased out a portion of the premises to the petitioner with effect from 1-10-1964 on a monthly rent of Rs. 300/-. The details of the premises leased out to the petitioner have already been noticed. On 28-10-1964, the Government of Andhra Pradesh accorded sanction for the assignment of lease-hold interest of M/s. Shivchand Mohanlal and Company in favour of Digvijay Industries. On 5-1-1965, M/s. Shivchand Mohanlal and Company assigned the lease-hold rights and sold the building constructed by them to Digvijay Industries. On 10-2-1966, there was tripartite agreement between the State Government, Shivchand Mohanlal and Co. and Digvijay Industries. It was specifically mentioned therein that Shivachand Mohanlal and Co. erected a factory building on the land. By this Agreement, the State Government granted 99 years lease of the plot in question together with buildings thereon commencing from 23-10-1951 in favour of Digvijay Industries on an yearly rent of Rs. 30/-. Thereafter, a second rental agreement was executed between the petitioner and Digvijay Industries. The rent was stipulated at Rs. 550/- per month upto 1-10-1969 and Rs. 600/- thereafter. In that rental Agreement, it was specifically mentioned that the lessors are the owners of the factory building and the compound bearing Municipality No. 1-8-1583. In the year 1972 the rent was enhanced from Rs. 600/- to Rs. 650/- per month. As already stated, the eviction petitions filed in the years 1974 and 1975 against the petitioner-tenant weredismissed for default. In the year 1976 certain crucial events which formed the sheet-anchor of this litigation occurred. Pursuant to the representation made by the petitioner-tenant, the Government determined the lease by an order dated 28-4-1976 on the ground that the lessee (the respondent herein) made a breach of covenants by not starting the industry and by sub-leasing the premises to the petitioner. The Deputy Director of Industries was directed to take possession of the entire plot with structures and on the same day, the State Government passed G.O.Ms.No. 464 (Ex.R-3) assigning 2.903 Sq. yards to M/s. Rajasri Paper Industries of which the petitioner is the proprietor and an extent of 2,335 Sq. Yards to M/s Shanti Soap Works in which also the petitioner has interest. The lease included the structures thereon. The lease amount was fixed at Rs. 7,500/- per acre and the rent at 3 paise per square yard. A formal lease deed was also executed on 8-12-1976. The respondent Digvijay Industries filed O.S.No. 397 of 1976 in City Civil Court, Hyderabad seeking a declaration that the lease granted in its favour was still subsistingand enforceable and for a perpetual injunction restraining the defendants from in terfering with the possession of the plaintiff. The legality of G.Os. 463 and 464 was challenged in the suit, to which the petitioner was also a party. During the pendency of the suit, the Government was restrained from assigning the land in favour of anybody else except Rajashree Paper Industries and Shanti Soap Works to the extent they are in possession as lessees of the plaintiff. As a consequence of this order, an assignment deed was executed by the Government in favour of the petitioner in respect of 545 Sq. Yards (of which the petitioner has been in actual possession) on a yearly rent of Rs. 200/-. Against the said order passed in I.A., C.M.A.No. 4/78 was filed. It was partly allowed permitting the Government to collect the rents agreed to be paid to the plaintiff from January, 1979 onwards from the petitioner and M/s Shanti Soap Works and to deposit the same into Court. In the CRP filed by the Government, the High Court by the judgment dated 26-2-1980 modified the order in CMA and the sublessees were directed to start depositing the rent in the trial Court from the day they have not paid the rent to the Government. This direction was not complied with by the petitioner. On 13-9-1983, the eviction petition out of which the present CRP arises was filed. While the eviction petition was pending, O.S.No. 397 of 1976 filed by the respondent was decreed on 28-2-1986. The G.O. by which the lease was determined was declared void. It was held that by sub-leasing the demised premises, the respondent did not commit any breach of the covenants in the lease. It was further held mat there was no valid determination of lease. It was also found that the possession was not taken over from the plaintiff in pursuance of the G.O. The appeals against the said judgments were dismissed. In the appeal, it was observed that the petitioner and another continued to be the tenants of the respondent. The second appeal was also dismissed by mis Court in year 1995. In the meanwhile, the State Legislature passed the Azamabad Industrial Area (Termination and Regulation of Lease) Act, 1992. The Act was upheld by the High Court.