RISHAB CHAND BHANDARI(D)BY LRS. Vs NATIONAL ENGINEERING INDUSTRY LTD.
Case number: C.A. No.-001320-001320 / 2005
Diary number: 2596 / 2005
Advocates: Vs
ANIL KUMAR SANGAL
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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1320 OF 2005
Rishab Chand Bhandari (D) by Lrs. & Anr.
.... Appellants
Versus
National Engineering Industry Ltd.
.... Respondent
O R D E R
1. Heard learned counsel for the parties.
2. This appeal has been filed against the judgment and
order dated 17.01.2005 of the Division Bench of the High
Court of Judicature at Rajasthan Bench at Jaipur whereby the
learned Division Bench has set aside the order of the
learned Single Judge dated 23.08.2001 and restored that of
the Trial Court, i.e., the Addl. District Judge No. 5,
Jaipur City, Jaipur dated 31.07.1993.
3. The respondent-plaintiff filed a suit for eviction
against the appellants-defendants and for deposit of arrears
of rent. The said suit was decreed by the Trial Court. In
appeal the said decree was set aside by the learned Single
Judge of the High Court, which order has been set aside by
the learned Division Bench by the impugned order. Hence,
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this appeal by special leave.
4. The facts in brief are that the suit premises
admittedly belonged to Sitaram Bhandar Trust (hereinafter
for short 'the Trust') and the Trust is the owner of the
suit premises. The respondent, claiming that it was
authorized by the Trust to do so, alleged that it had let
out the premises in dispute to appellant No.2 (defendant No.
1 in the suit) and was collecting rent from it. However,
thereafter, the defendant No. 1 started paying rent to one
Ram Das Modani who claimed to be an employee of the Trust.
The respondent then filed a suit for eviction and arrears of
rent against the appellants alleging that the appellants had
committed default in payment of rent.
5. Under the Rajasthan Premises (Control of Rent &
Eviction) Act, 1950, under Section 3(iii) the word
'landlord' has been defined as under:-
“landlord” means any person who for the time
being is receiving or is entitled to receive the
rent of any premises, whether on his own account
or as an agent, trustee, guardian or receiver or
any other person or who would so receive or be
entitled to receive the rent if the premises were
let to a tenant; it includes a tenant in relation
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to a sub-tenant”.
6. Learned counsel for the appellant submitted that
there were no arrears of rent as rent was being paid to Ram
Das Modani, who was collecting rent on behalf of the Trust.
Hence, he submitted that there was no default in payment of
rent.
7. On the other hand learned counsel for the respondent
submitted that the respondent company was the landlord and
hence rent should have been paid to it and thus there was
default in payment of rent. He further submitted that it
was the respondent who had let out the premises and
accordingly in terms of the Act it was entitled to receive
rent.
8. We have heard learned counsel for the parties. We
are required to interpret the word 'landlord' as provided
under the Act.
9. In our opinion a purposive, and not literal
interpretation has to be given to the definition of
'landlord' in the Act.
10. The natural landlord of a premises is ordinarily
the owner. However, an expanded definition has been given
in various rent statutes of many States for the reason that
sometimes the owner may not himself be in a position to
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collect the rent and may hence appoint an agent or authorize
any person to collect rent on his behalf because he may be
abroad or is unable to do so for any other reason. This
does not mean that the natural meaning of the word
'landlord', who is the owner of the premises, would
disappear and that the owner goes out of the picture
altogether. This is the view taken by the Delhi High Court
in the case of Shri Madan Lal Vs. Shri Hazara Singh 1977 (2)
RLR, 641. We approve of the view taken in the said
decision. If we interpret the definition of 'landlord' in
the Act literally it will result in strange consequences.
It will mean that even if the owner, who is the natural
landlord, does not want to evict a tenant, his agent may do
so. Surely this is an absurd situation. It is well settled
that if a literal interpretation leads to absurd
consequences, it should be avoided, and a purposive
interpretation be given.
11. In the present case the respondent has not been able
to show that it was authorized in writing to act on behalf
of the Trust either by a power of attorney or any other
written document. Unless there is some documentary proof
that the Trust had authorized its agent to file a suit for
eviction on its behalf, it cannot be said that the
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respondent had any right to file such a suit, even though it
had actually let out the premises to the appellant and
collected rent. The respondent is admittedly not the owner
of the premises, and only claims to be the agent of the
Trust.
12. On the facts and circumstances of the case, we are
of the opinion that this aspect of the matter needs to be
gone into by the Trial Court. Accordingly, we allow this
appeal and set aside the impugned judgment and order of the
Division Bench and that of the learned Single Judge and
remand the matter to the Trial Court. Before the Trial
Court, the respondent will have liberty to produce any
documentary evidence to show that the Trust had authorized
it in writing to receive rent and file suit for eviction on
behalf of the Trust. The respondent-plaintiff shall also
implead the Trust as proforma-defendant before the Trial
Court.
13. The Trial Court shall decide the suit uninfluenced
by any observations made by us in our order or the
observations made by the Division Bench and learned Single
Judge of the High Court or the earlier decree of the Trial
Court. All contentions are left open to the parties to be
urged before the Trial Court.
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14. Appeal allowed. No order as to the costs.
.....................J. (MARKANDEY KATJU)
.....................J. (ASOK KUMAR GANGULY)
NEW DELHI; SEPTMBER 17, 2009