December 21, 2007

Tenants Beware: “Landlord Knows No Annoyance”

In a major boost to property owners and the real estate sector, a recent judgment of the Supreme Court of India has held that causing damage to landlord’s property and creating nuisance is a valid ground of eviction of tenants. Hitherto, the landlords have been at the receiving end of the tenants who resorted to legal provisions and jurisprudence more favorable to tenants to prevent their eviction. Not anymore! The emphatic pronouncement of the Supreme Court on December 14, 2007 empowers harassed landlords to get rid of their erring tenants. In its decision, the Supreme Court upheld the view of the Appeal Court which had overturned the findings of the trial court in favour of tenant on the grounds of eviction claimed by the landlord

A Saga of Damage and Nuisance

The West Bengal Premises Tenancy Act, 1956 (“Tenancy Act”) provides certain grounds for eviction of a tenant under Section 13. The case of Ranju Gautam Ghosh v. Rekha Ghosh involved the second ground under section 13(b) which provides that when the tenant acts contrary to the provisions of clause (m), clause (o) or clause (p) of section 108 of the Transfer of Property Act, 1882 (Property Act). Section 108 of the Property Act deals with the rights and liabilities of landlord and tenant.

As per sub-section (m), the tenant is bound to keep, and on the termination of the lease to restore, the property in as good condition as it was in at the time when he was put in possession, subject only to the changes caused by reasonable wear and tear or irresistible force. It also states that the landlord or his agent has a right to inspect the property by giving prior notice.  Sub-section (o) provides that the tenant must not use, or permit another to use, the property for a purpose other than that for which it is rented.  Sub-section (p) bars the tenant to erect any permanent structure in the rented out premises without prior consent of the landlord.

The Supreme Court considered the following questions of law to determine whether eviction was warranted in the present case apart from an issue on valid service of notice for eviction by the landlord:

  1. Whether the tenant did any act which violated clauses (m), (o) and (p) of Section 108 of the Transfer of Property Act, 1882;

  2. Is the tenant guilty of causing act of nuisance and annoyance?

On the first question, the court relied on the evidence of prosecution witnesses and other documentary evidence such as complaint to the police, entry in general diary and accepted the case of the plaintiff.  The court concluded that the defendant caused damage to collapsible gate and put up an additional construction. 

On the question of nuisance and annoyance, the Court found that the tenants dismantled the collapsible gate of the landlord’s garage.  Further, on protest by the landlord, they threatened to kill him and also of dire consequences.  A photograph of cutting the collapsible gate was also produced before the Court in support of this claim.  Lastly, criminal proceedings under Section 144 of Cr.P.C (power to issue order in urgent cases of nuisance or apprehended danger) were also instituted against the tenant. On the basis of the complaint given to the police, the subsequent criminal proceedings and other relevant materials the Court held that the landlord made out a case for eviction on the ground of nuisance and annoyance which we concur with the said factual finding.

In view of the above, the court arrived at the following conclusions:

  1. that the activities of threatening to kill the plaintiff, beating the son of the plaintiff and abusing him with filthy language would amount to nuisance and annoyance, furnishing a ground of eviction under clause (e) of section 13 (1) of the Tenancy Act;

  2. that causing damage to the collapsible gate of the tenanted portion and putting up a concrete elevation of the floor, would amount to doing acts contrary to the provisions of clauses (m), (o) and (p) of section 108 of the Property Act, thereby furnishing a ground of eviction under section 13(1)(b) of the Tenancy Act.

Implications

The Supreme Court has upheld and recognized the basic principles of tenancy laws and enforced it against a grossly misbehaving tenant. What is highly appreciable in the Court’s opinion is that it does not presume mala fide on part of the landlord; rather, it weighs the facts objectively and rewards the landlord with its property and the erring tenant with eviction.

The judgment assumes significance in view of the transformation of the classical landlord-tenant relationship in to a more corporatized and organized one. The Supreme Court’s judgment complements this emerging reality by restoring the landlord’s faith in tenancy laws and the courts.

Source: Supreme Court Judgment

You can direct your queries or comments to the authors

 

Welcome to connect with us at interesting conferences, seminars and events (more...

  RESEARCH REPORTS
Taxation of Derivatives
Discovering Derivatives
eCommerce Taxation in India
Special Economic Zones
BPO Report
India: Structural Strategy
Inversion - The Basic Facts
Venture Capital at Crossroads
  SUBSCRIPTION

We update our clients by sending various hotlines. You can subscribe to one / more hotlines also. You can email us for registering yourself for any of the hotlines given below.

Corpsec Hotline
Tax Hotline
HR Hotline
iCe Hotline
Annual Budget
FII Hotline
IP Update

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsubscribe
Feedback
Disclaimer: The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This hotline provides general information existing at the time of preparation. The hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any  loss arising to any person acting or refraining from acting as a result of any material contained in this hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA