Holding

The High Court erred in interfering with the Appellate Authority’s factual findings; such interference is permissible only on a manifest error of law or a perverse conclusion, and the comparative‑hardship analysis is unnecessary where the landlord’s bona‑fide requirement is not established.

Summary

The landlord sought eviction of the tenants under Section 21(1)(a) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, claiming a bona‑fide need for the shop to start his son’s business. The Prescribed Authority accepted the claim and ordered eviction with compensation. The Appellate Authority, after detailed examination, held that the landlord’s claim was not genuine and set aside the eviction order, dismissing the landlord’s appeal. The landlord then approached the Allahabad High Court under Article 226, which quashed the Appellate Authority’s order and restored the eviction. The Supreme Court held that the High Court was not justified in re‑examining the factual findings of the Appellate Authority, as such findings can be interfered with only on a manifest error of law or perverse conclusion, and that the comparative‑hardship test applies only when a bona‑fide requirement is established. Consequently, the Supreme Court set aside the High Court’s judgment and confirmed the Appellate Authority’s order.

Issues considered

Whether a High Court exercising writ jurisdiction under Article 226 can interfere with the factual findings of a statutory appellate authority in eviction proceedings.
Whether the comparative‑hardship provision in the proviso to Section 21(1)(a) of the Uttar Pradesh Urban Buildings Act must be applied when the landlord’s claim of bona‑fide requirement is not accepted.
Whether the Appellate Authority committed any manifest error of law or a perverse finding in rejecting the landlord’s bona‑fide need.

Legislation cited

Constitution of Indias. Article 226
Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972s. 13(2), s. 21(1)(a)

Subjects

evictionbona fide requirementcomparative hardshipArticle 226writ jurisdictionrent controlUttar Pradesh Urban Buildings Actappellate authorityfactual findingsquasi‑judicial

Judgment

ASHOK KUMAR AND ORS. A
v.
SITA RAM

APRIL 19, 2001

[D.P. MOHAPATRA AND SHIVARAJ V. PATIL, JJ.] B

Rent and Eviction:

Uttar Pradesh Urban Buildings (Regulation of letting, Rent and
Eviction) Act, 1972-Section 21 (l)(a), Proviso-Eviction petition bona fide C
need-Hardship likely to be caused to tenant in allowing the petition for
eviction as against hardship likely to be caused to landlord in disallowing
the same-Question of-Held, this question can appropriately be considered
by the Authority upon conclusion that the plea of bona fide requirement
taken by landlord is found to be acceptable-In case the Authority comes to
the conclusion that the case ofbona fide requirement pleaded by the Iandlor(i D
is not believable and acceptable, considering the question of comparative
hardship does not arise-In the present case, non-consideration of such
question cannot be found fault with as Appellate Authority recorded that
landlord had no bona fide need for the shop in question- Held, the said ordel·
did not suffer from any serious illegality-High Court erred in interfering with E
the order in exercise of its writ jurisdiction.

Constitution of India, 1950:

Article 226-Writ Jurisdiction-Exercise of-Held, finding of facts
recorded by final court of fact should not ordinarily be inte1fered with by F
High Court in exercise of writ jurisdiction, unless the High Court is satisfied
that the finding is vitiated by manifest error of law or is patently perverse-
High Court merely having supervisory jurisdiction and not acting as anothe11
Appellate Court.

Respondent-landlord filed a petition for eviction of appellant-tenants G
from the shop in question under Section 21(1)(a) of the Uttar Pradesh Urban
Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. Eviction was
sought on ground that respondent-landlord was in bona fide need of the shop·
for establishing his son in business. Prescribed Authority allowed the petition'
and ordered eviction of appellants. Order was also made for payment of an: H
101
102 SUPREME COURT REPORTS [2001] 3 S.C.R.

A amount equivalent to two years rental as compensation for indentifying
appellants for inconvenience faced by them in shifting their business.
A1>pellants preferred an appeal against the ord~r of eviction passed against
them. Res1>0ndent also filed an appeal assailing the order for payment of two
years rental to appellants. Appellate Authority allowerl the appeal filed by
B appelJant-tenants and dismisse~ the one filed by respondent-landlord.
Aggrieved, respondent-landlord filed a writ petition before High Court which
was allowed. Hence the present appeal.

On behalf of the appellant-tenants, it was contended that it was not open
to the High Court to re-open the findings of fact recorded by Appellate
C Authority in exercise of jurisdiction under Article 226 of the Constitution;
that the Appellate Authority had given cogent reasons for differing from the
findings recorded by the Prescribed Authority on the question of bona .fide
requirement of landlord and therefore, no interference by th<! High Court
was warranted.

D Allowing the appeal, the Court

HELD: 1. The order passed by the Appellate Authority did not suffer
from any serious illegality, nor can. it be said to have taken a view of the
matter which no reasonable person "'as likely to take, In that view of the
E matter there was no justification for the. Bigh Court' .to interfere w'ith the
order in exercise of its writ jurisdiction. In a matter like.the 1>resent case
where orders passed by the Statutory Authority vested with 1>ower to act
quasi-judicially is challenged before the High Court, the role of the Court is
supervisory and corrective. The Court is not acting as yet another Appellate
Court in the matter. The position is too well settled to admit of any controversy
F that the finding of fact recorded by the final Court of fact should not ordinarily
be interfered with by the High Court in exercise of writ jurisdiction, unless
the Couii is satisfied that the finding is vitiated by manifest error of law or
is l>atently perverse. [108-D; 105-B]

G 2. On a fair reading of the proviso to Section 2l(l)(a} of the Uttar
Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act,
1972, it is clear that the legislative mandate is that the Prescr'Jbed Authority
shall take. into account the hardship likely to be caused to the tenant in .
allowing the petition for eviction as against the hardship likely to be caused
to the landlord in the event of rejection of the prayer for evi::tion of the
H tenant. This question can appropriately be considered by.the Authority upon
~
I

ASHOK KUMAR v. SITA RAM [D.P. MOHAPATRA, J.] · 103

conclui;ion that the plea of bona fide requirement taken by the landlord is A
found to be acceptable. In case the Authority comes to the conclusion that the
case of bona fide requirement pleaded by the landlord is not believable and
.acce1ltabJe the question of allowfog the petition for e'iction does not arise and
so the necessity of making acomparison between the hardship in allowing
the petition for eviction and disallowing the same does not arise. (107-F-G]
B
Hiralal Moolchand Doshi v. Barot Raman Lal Ranchhoddas, [1993]! .2
sec 458, relied on.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2892 :of
2001.
c
From the Judgment and Order dated 8: 12.99 of the Allahabad High Court ·
.. in W.P. No. 92 (RJC) of 1992: · ·

Aseem Mehrotra for Abhijat P. Medh for the Appellants. ·

Manoj Swanip, Ms. Lalita Kohli, Ms. Maulina Swamp and Rakesh D
Singh for
Mis. Manoj Swamp & Co. for the Respondent.

The Judgment of the Court was delivered by

D.P. MOHAPATRA, J;
E
Leave granted.

The appellants are the tenants of the shop room No.R 67 (New No. RI
50) located in the Mohalla ~soolpur, Nawab Ganj, District Bara~allki, Uttar
Pradesh. Sita Ram@ Nand Kishore, the respondent is the landlord of.the said
property. On the petition filed by the respondent on 28.1.1988 for eviction of F
the appellants and release of the premises und~r section 2l{l)(a) of the Uttar
Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
(Act 13 of 1972) (hereinafter referred to as 'the Act' ) P.A. No. 2/1988 was
registered in the Court of Ilnd Additional Chief Judicial Magistrate/Prescrib~d
Authority, Barabanki. The case of the respondent shortly stated was that he G
was in bona fide need of the shop room in question for establishing his son
Dilip Kumar in business; being his father and the Karta of the family it was
his duty to provide necessary facilities to his son to start independent
business. The appellants entered contest; refuted the averments/allegations
made by the respondent in the eviction petition. They denied that the
respondent had any bona fide need for the shop room in question. According H
104 SUPREME COURT REPORTS [2001] 3 S.C.R.

A to them the respondent had a number of other premises, some of which he
let out to others shortly before filing the eviction petition in 1987.

The prescribed authority on sifting the evidence on record accepted the
case of the respondent that he was in bona fide need of the :shop room in
question, and allowed the prayer for release of the premises and ordered
B eviction of the appellants therefrom. He also ordfo'.red payment of an amount
equivalent to two years rental as compensation for indemnifying the appellants
for the inconvenience faced by them in shifting their business.· '

Both the parties preferred appeals against the order of the prescribed
C Authority; the appellants challenged the order of eviction passed against
them, while the respondent assailed the order for payment of two years rental
to the appellants.
•
The 5th Additional District Judge Baraban.ld in t_he judgment dated
12.5.1992 in Rent Control Appeal Nos.1/91 and 2/91 allowed the appeal No.
D 2/91 filed by the appellant herein and disallowed the appeal No.1/91 filed by
the respondent herein.

Being aggrieved by the judgment of the Appellate Authority the
respondent landlord filed the petition under Article 226 of the: Constitution ,..
being W.P. No. 92(R/C) of 1992 in the Allahabad High Court (Lucknow Bench).
E A single Judge of the Court by the judgment dated 8.12.1999 allowed the Writ
Petition, and quashed the judgment/order of the Appellate Authority.

Hence this appeal by the tenants.

F The main thrust of the arguments of the learned counsel appearing for
the appellants is that it was not open to the High Court to re-open the
findings of fact recorded by the Appellate Authority that the landlord has no
bona fide need for the disputed shop room, in exercise of jurisdiction under
Artide 226. The further submission of the learned counsel' is that the Appellate
Authority has given cogent reasons for differing from the findings recorded
G by the prescribed Authority on the question of bona fide requirement of the
landlord, and therefore, no interference by the High Court with the order of
the Authority was warranted.

Per contra the learned counsel appearing for the respond1ent supported
the judgment contending that the High Court, in the facts and c:ircumstances
H of the case, was right in setting aside the judgment of the Appellate Authority
t
ASHOK KUMAR v. SITA RAM [D.P. MOHAPATRA, J.] 105

and restoring the order of eviction passed by the prescribed Authority. A
The position is too well settled to admit of any controversy that the
finding of fact recorded by the final Court of fact should not ordinarily l;Je
interfered with by the High Court in exercise of writ jurisdiction, unless the
Court is satisfied that the finding is vitiated by manifest error of law or ~s
patently perverse. The High Court should not interfere with a finding of fact B
simply because it feels persuaded to take a different view on the material on
record.

In the present case on perusal of the judgment of the Appellate Authority
which runs to about sixty pages the Authority has discussed in great detail C
the case pleaded by both the parties, materials placed by them in support of
tlieir case and has disbelieved the case that the landlord bona fide required
the shop in question for his son Dilip Kumar . The Appellate Authority
observed that Dilip Kumar was married in 1979; the marriage was dissolved
. by a decree of divorce passed in July 1987 before filing of the eviction
petition; therefore, the cause pleaded in the eviction petition that Dilip Kum~r D
after his marriage felt the need to augment his income and for that purpose
wanted to start his independent business, was not acceptable. The Appellate
Authority further observed that the respondent landlord had himself let out
his building on rent in 1987 which show that Dilip Kumar's need was not b01ia
fide one; the necessity, if any, had ceased by the date of the eviction petition E
i.e. on 28.1.1988. In conclusion, the Appellate Authority recorded the finding
that from the evidence produced it becomes perfectly evident that the applicant
had no need for vacation of the shop room for use of Dilip Kumar and that
it was correctly stated by the opposite party that this application was filect
·in order· to enhance the rent. The Appellate Authority further observed: .
F
"As regards the relative hardships and the damages it need no decisio.p
here as the relative hardship ·is material only in case the necessity of
applicant .had been bonafide and as regards the damages, a decision
on this point would have required only when the application filed by
the applicant was being granted. On these points no decision i:;
therefore required. The decision of the lower court in this regard is set G ·
aside."

The High Court set aside the order of the Appellate Authority. The
learned Judge observed:

"Every father wants to see in his life that his son is settled in life. This · H
106 SUPREME COURT REPORTS {2001] 3 S.C.R.

A aspect of the matter was not taken into consideration by the appellate
authority. The appellate authority further failed to compare the bonafide
need of the opposite parties 2 to 5 and the petitioner. The detailed
judgment ·of the Prescribed Authority too has not been scrutinised in
accordance with law. The only thing which prevailed in the mind of
the appellate authority was that since the wife had deserted Dilip
B Kumar, the son of the petitioner therefore there is no need to release
the shop in question in favour of the petitioner on the ground of need
of his son to settle in life. The appellate authority has also recorded
a finding that there is no question of comparing the hardships of the
landlord with opposite parties 2 to 5 because he had come to the
c .conclusion that there was no bonafide need of the landlord."

Considering the question of the power of the Court to interfere with the
order of the Appellate Authority the High Court appears to have taken the
view that if the Appellate Authority has erred on a question oflaw then the
High Court has jurisdiction to interfere under Article 226 of the Constitution.
D . Taking exception to the Order of the Appellate Authority the High Court
observed :

"The Prescribed Authority had compared the bonafide need of the ~
petitioner as well as the opposite parties 2 to 5 whereas the appellate ,..
authority refused to consider the need of the petitioner-landlord on
E the ground that there was no bonafide need.

"-~ xxx xxx

However, it can be said that the order of the Prescribed Authority has
been set aside by the appellate authority without comparing the need
F and hardships of the landlord with opposite parties 2 to 5 which was
considered by the Prescribed Authority iri details. The find_ing recorded·
by the appellate authority that the need of the petitiloner was not
bonafide is erroneous."

Section 21 makes provision regardiiig proceedings for release ofbuilding
G under occupation of tenant. Sub-section (l)(a) under which the respondent
sought the eviction of the petitioner, along with its proviso reads as follows:

"21.Proceedings for release of building under occupation of tenant -
(i) The prescribed authority may, on an application of the landlord.in .....
that behalf, order the eviction of a tenant from the building under ._
H tenancy or any specified part thereof if it is satisfied that any of the

...,
"

i
ASHOK KUMAR v. SITA RAM [D.P. MOHAPATRA, J.] 107

following grounds exists namely- A
(a) that the building is bona fide required either in its existing form
/
or after demolition and new construction by the landlord for occupation
by himself or any member of his family, or any person for whose
benefit it is held by him, either for residential purposes or for purposes
of any profession, trade or calling, or where the landlord is the trustee B
of a public charitable trust, for the objection of the trust;

xxx xxx xxx xxx
Provided also that no application under clause (a) shall be entertained-

xxx xxx xxx xxx c
(ii) in the case of any residential building, for occupation for business
purposes"

As noted earlier the High Court has faulted the Appellate Authority for .
not considering the question of comparative hardship. The Appellate Authority D
did not feel the necessity to go into that question since it had recorded the
finding that grant of eviction as pl~aded by the landlord was not acceptable.
On a fair reading of the proviso to section 21 (I )(a) it is clear that the legislative
mandate is that the prescribed Authority shall take into account the likely
hardship to the tenant from the grant of the application as against the likely
hardship to the landlord from the refusal of the application. This question can E
appropriately be considered by the Authority when he comes to the conclusion
that the plea of bonafide requirement taken by the landlord is found to be
acceptable. It is at that stage that the Authority should take into account the
hardship likely to be caused to the tenant in allowing the petition for eviction
as against the hardship likely to be caused to the landlord in the event of p
rejection of the prayer for eviction of the tenant. In case the Authority comes
to the conclusion that the case of bona fide requirement pleaded by the
landlord is not believable and acceptable the question of allowing the petition
for eviction does not arise and so the necessity of making a comparison
between the hardship in allowing the petition for eviction and disallowing the
same does not arise. Gi
This Court in Hirata/ Moo/chand Doshi v. Barot Raman Lal
Ranchhoddas, [1993] 2 SCC 458 held:

"The High Court was also in error in assuming that the landlord is
supposed to have· pleaded his own comparative hardship in the plaint H
108 SUPREME COURT REPORTS (2001) 3 S.C.R.

A itself. Section 13(2) comes into play at the stage when the court is
satisfied that the ground contained in clause (g) of sub-section (1)
of Section 13 of the Act has been made out. It is at that stage that
the court has to examine the question of comparative hardship. It
was thus not necessary to plead in the plaint itself. Often the parties
at the stage of recording of evid~nce of bona fide personal requirement
B also lead evidence as to the comparative hardship of the landlord or
the tenant. But such averrrients are not required to be pleaded in the
plaint itself to give cause of action to·the landlord to enable him to
file a suit for eviction of the tenant on the ground of his bona fide·
personal requirement." ·
......
c The question that remains to be considered is whether the High Court
in exercise of writ jurisdiction was justified in setting aside the order· of the
Appellate Authority. The order passed by the Appellate Authority did not
suffer from any serious illegality, nor can it be said to have taken a view of
the matter which no reasonable person was likely to take..In that view of the
D matter there was no justification for the High Court to interfere with the order
in exercise of its writ jurisdiction. In a.matter like the present"case where
orders passed by the Statutory Authority vested with power to act qua~i
judicially is challenged before the High Court, the role of the Court is ...
supervisory and corrective. In exercise of such jurisdiction the High Court is
not expected to interfere with the final order passed by the Statutory Authority
E 'unless the order suffers froin manifest error and if it is allowed to stand it
would amount to perpetuation of grave injustice. The Court should bear in
mind that it is not acting as yet another Appellate Court in the matter. We
are constrained to observe that in the present case the High Court has failed
to keep the salutary principles in mind while deciding the case.
F
On consideration of the entire matter we are satisfied that the High
Court erred in interfering with the judgment/order passed by the Appellate
Authority. Accordingly, the appeal is allowed, the judgment(order of the High
Court dated 8.12.1999 in Writ Petition No. 92 (RIC) of 1992 is set aside and
the order of ·the Appellate .Authority i.e. Vth Additional Djstrict Judge,
G Barabanki dated 12.5.1992 in Rent Control Appeal No.I of 1991 is confirmed.
The parties will bear their respective costs.

MP. Appeal allowed.