Holding

Section 10(3)(c) applies only when the tenant occupies a portion of the same building in which the landlord occupies a part; it does not extend to separate adjoining buildings even if owned by the same landlord.

Summary

The respondent, who owned building No.1‑1‑249 and used it for residence and business, purchased the adjoining building No.1‑1‑250 where the appellant was already operating a shop and residing. The respondent sought eviction of the appellant under Section 10(3)(c) of the Andhra Pradesh Buildings (Lease Rent and Eviction) Control Act, 1960, claiming a need for additional space. The Rent Controller rejected the petition, holding the two premises were separate buildings. The Appellate Authority and the High Court reversed, treating the adjoining structures as a single building because of common ownership and a single separating wall. The Supreme Court held that Section 10(3)(c) requires the landlord and tenant to occupy portions of the same building; ownership unity is irrelevant, and a practical test is whether one building can be sold without affecting the landlord’s possession of the other. Consequently, the landlord could not invoke the provision to evict the tenant, and the Supreme Court set aside the lower orders, restoring the Rent Controller’s dismissal of the eviction petition.

Issues considered

Whether Section 10(3)(c) of the Andhra Pradesh Buildings (Lease Rent and Eviction) Control Act, 1960 applies when the landlord occupies one building and the tenant occupies an adjoining building owned by the same landlord.
How to determine if adjoining structures constitute the same building for the purpose of the provision.
Whether the landlord can seek eviction for additional accommodation under Section 10(3)(c) when the tenant occupies a separate building.

Legislation cited

Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960s. 10(3)(c), s. 2(iii)

Subjects

evictionlandlord-tenantadditional accommodationbuilding definitionSection 10(3)(c)Andhra Pradesh Buildings Actoneness of buildinglease rent control

Judgment

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GANGARAM
A
v.
N. SHANKAR REDDY

OCTOBER 6, 1988

[R.S. PATHAK, CJ AND S. NATARAJAN, J.] B

Andhra Pradesh Buildings (Lease Rent and Eviction) Control
Act, 1960-Section 10(3)(c)-Landlord entitled to seek eviction of
tenant occupying another portion or remaining portion of same building
and not occupying portion in another building-What is envisaged is
oneness of building and not oneness of ownership of two different build-
ings one occupied by landlord and another by tenant.
c
The respondent had acquired the building being premises
No. 1.1.249 Chikkadpalli, Hyderabad, constructed two storeys over. '
this building and utilised the upper floors for his residence and the
ground floor for his business. Subsequently, he had purchased the adja- D
cent building being Jlremises No. 1-1-250. The appellant was a tenant
in the suit premises No. l.l.250 even before the respondent purchased
it, and was running his shop in the front room and residing in the rear
·portion.

The respondent sought eviction of the appellant inter alia on the E
ground of requirement of additional space under section I0(3)(c) of the
Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act,
1960, under which a landlord occupying oniy a part of a building was
entitled to seek the eviction of a tenant occupying another portion or the
remaining portion of the building if the landlord required additional
accommodation for residential purpose or for carrying on his business. F

The Rent Controller held that the respondent was not entitled to
an order of eviction under s. l0(3)(c) because the leased premises was a
separate building and did not form part of the building in which the
respondent was carrying on his business.
G
The Appellate Authority however held that even thougbthe leased
premises had a separate municipal door number it could be .treated as
forming part of the building in the respondent's occupation because
both' the buildings were owned by the respondent and were separated
only by a single wall.
H
434 SUPREME COURT REPORTS [1988] Supp. 3 S.C.R.

The High Court in revision held that if the respondent wanted the
A premises bona fide as an additional accommodation it did not matter
whether it was a separate building or a portion of the same building.

Before this Court, the appellant contended that section 10(3)(c)
would not apply to a case where the landlord and the tenant were
B occupying different buildings even though the two buildings were
owned by the same landlord. The respondent, on the other hand, con-
tended that the two buildings could not be treated as independent and
separate buildings because both the buildings were owned by the
respondent and were separated only by a single wall.

Allowing the appeal, it was,
c
HELD: (l) From a reading of clause (c) of section lOq) it is
obvious that provision has been made under that clause only to seek the
eviction of a tenant occupying another portion or the remaining portion
of the building in which the landlord is also residing or carrying on his
D business in one portion. [437F]

(2) What s. 10(3)(c) envisages is the oneness of the building and
not the oneness of ownership of two different buildings, one occupied by
the landlord and the-other b-y the tenant. [438G-HJ - -

E (3) The significant words used in s. I0(3)(c) are "the landlord
who is occupying only a part of a building" and "any tenant occupying
the whole or any portion of the remaining part of the building." [438H; 439A]

(4) A practical test which can be applied to find out if two adjoin-
ing buildings form part of the same building or two different buildings
F would be to see whether one of the two buildings can be sold by the
landlord and the purchaser inducted into possession of the premises
sold without the landlord's possession and enjoyment of the premises in
his occupation being affected. [439B-C]

(5) The identity of two separate buildings is not to be judged on
G _t_he basis of the buildings being separated by a single wall or by two
separate walls with intervening space in between them. [4J9E] -

(6) There is no room or scope for the respondent to invoke section
2(iii), defining the word "building", to contend that two different pre-
mises should be treated as a single and integrated building for the
H purposes of the AcCif the two bulldillgs adjoin each other and are
GANGARAM v. N.S. REDDY JNATARAJAN, J.] 435

owned by the same person but under different occupation i.e. one by the A
landlord and the other by the tenant. [440C-D]

(7) If the hardship experienced by landlords similar to the
respondent is to be alleviated, then it is for the legislature to remedy the
situation by making suitable amendments to the Act and it is not for the
Court to read s. 10(3)(c) beyond its terms, oblivious to the limitations B
contained therein and hold that a separate tenanted building adjoining
the building in the owner's occupation would .also for_m p_art of ihe latter
building. [441A-B]

Balaiah v. Lachaiah, AIR 1965 A.P. 435; Balaganesan Metals v.
M.N. Shanmugh~m Chetty, JT 1987 l S,C, 247 and N. Ramaswamy C
Naidu v. P. Venkateshwarlu, Vol. II 19611 A.W.R. page 400, referred
to.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 537
of 1978. ·
D
From the Judgment and Order dated 13.10.1977 of the Andhra
Pradesh High Court in C.R.P. 250of 1977.

P .P. Rao, K. Ram Kumar and Mrs. Janki Ramachandran for the
Appellant.
E
A.S. Nambiar and B. Parthasarthi for the Respondent.

The Judgment of the Court was delivered by

NATARAJAN, J. This appeal by special leave directed against a
judgment of the Andhra Pradesh High Court lies within a narrow F
compass.

Tlie respondent/landlord filed a petition under. Section 10(3) of
the An_dhra Praclesh Buildings (Lease_,_Rent and J'vic!ion) C@trol Act,
1960 (for short the 'Act') to seek the ·eviction of the tenant/appellant
from premises bearing No. 1-1-250 Chikkadpalli, Hyderabad. The G
appellant is running a pan shop and a hire cycle shop in the front room
of the premises and residing in the rear portion. Besides the leased
premises, the respondent owns the adjoining building bearing No.
1/1/249. In the said building the "respondent was running a grocery
shop in the ground floor and residing in the second and third floors
subsequently constructed by him. It would appear that the respondent H
436 SUPREME COURT REPORTS [1988] Supp. 3 S.C.R.

A has since changed over his business to retail sale of liquor. On -the
ground of requirement of additional space for the grocery shop, the
respondent sought the eviction of the appellant. The Rent Controller
held that the respondent was not entitled to an order of eviction either
under Section 19(3)(a)(iii) or Section 10(3)(c) because the leased pre-
mises was a separate building and did not form part of the building in
B which the respondent was carrying on his·business. In the appeal pre-
ferred by the respondent, the Chief Judge, City Small Cause Court,
Hyderabad, took a different view of the matter and held that even
though the 'leased premises had a separate municipal door number it
can be treated as forming part of the building in the respondent's
occupation because both the buildings are owned by the second
respondent and besides the two buildings are separated only by a
.C single wall. For reaching such a conclusion, the Appellate Authority
followed the ratio1aid down in Balaiah v. Lachaiah, AIR 1965 A.P.
435. As the Appellate Authority further found that the requirement of
additional space by the respondent was a bona fide one, the Appellate
Authority allowed the appeal and ordered the eviction of the appel-
D !ant. A civil revision filed by the appellant to the High Court did not
meet with success and hence the appellant has preferred this appeal.

Though the proceedings before. the Rent Controller and the
Appellate Authority were co-nducted on· the footing that the respon-
dent was entitled to seek the appellant's evicifon under Section
E 10(3)(a)(lii) as well as undetSection l0(3)(c), it was conceded before
us by Mt. Nambiar, learned comi:sel for• the respondent that the
tenant's eviction was sought for only unC!erSectiori 10(3)(c) viz.
·requirement of additional space for. the respondent's business. In such
citcumstances _the only factor for determination ·is whether. the respon-
dent c.an-seek the appellant's eviction froni thectenanted building on
F the'gto_und he requires additional accommodation for his busifiess. _

c B_efore we prgc~d to deal with the question, it is nece~sary to
· state a f~w facts, Originally, --a ro~ of buildings cotnprised cin door
· numbers 1-1-248to: kl-251 were owned by one R. Kistiyah and after
.him bf one Rambai. The said Rambai.sold the buildi11gs in the row to
G different'persons. The respondent and his brother were two of such
--purchasers and they purchased pretriisesno.J:-1~248and1-·1-249. Silb'
sequently, in a·.partition between them, premises No. 1-1-249 was
. all9tted to the.respondent and premises No.· 1-1-248 wa_s allotted to_hl~
. brother. After the partition was effected, the respondent construeted
two storeys over his building by erecting toncrete pillars oh both .sides
H of his building. At that time; th~_suit premises bearing No. 1-1'250 was
0

GANGXRAM v N.S. REDDY [NATARAJAN, J.J . 437

owned by an advocate by name Sri S. Sitaram Rao. Wheri the concrete
A
· pillars were erected, Sitaram Rao complained of encroachment by the
respondent'and eventually, the dispute was resolved by the respondent ./..
himself purchasing Sifaram Rao's house viz. No. 1-1-250. After con-
structing the two floors, the respondent' shifted his residence to those
floors and utilised the entire ground floor for his business. The appel-
lant who was a tenant of the suit premises even before the respondent B
purchased it attomed his tenancy to the respondent. ·

. Under the Act, a.landlord can seek the eviction of a tenant from
a n1m-residential building under Section 10(3)(a)(iii) if he is not
already occupying anon-residential building which is either his own or
to the possession of which he is entitled or under Section 10(3)(c) by
way. of additional accommodation if the non-residential building c
occupied by him is not sufficient for the purpose of the business .he is
carrying on. Since we are concerned in this appeal only with Section
10(3){c), we need extract only that clause which reads asunder:

"10(3)(c). A landlord who is occupying only aP.art of a D
building, whether residential or non-residential, may not-
withstanding anything in clause (a), apply to.the Controller
for an order directing any tenant Ofcupying the whole or
any portion or the remaining part of the building to put the
landlord in possession thereof, if he requires additional
accommodation for residential purpose or for purpose of a E
business which he is carrying on, as the case may be."
(Emphasis supplied) .

. From a reading of clause {c), it is obvious that provision has been made
under that clause only to seek the eviction of a tenant occupying
another portion or the remaining 'portion of the building in which the F
landlord is also residing or carrying on his business in one portion.
Section 10(3)(c) of the Tamil Nadu Buildings (Lease and Rent Con-
trol) Act 1960 which is identically worded as Section 10(3)(c) of the
Andhra Pradesh Buildings (Rent, Eviction and Control) Act came to
be construed in a different context by this Court in Balaganesan Metals
v. M.N. Shanmugham Chetty, (JT 1987 (2) S.C. 247). It was held in G
that case that a landlord occupying only a part of a building for resi-
dential or non-residential purposes may seek th.e eviction of a tenant
occupying the whole or any portion of the remaining part of the build-
ing if he requires additional accommodation for his residential or non-
residential needs and ihat it is not necessary that there must be identi-
cal user of the leased portion by the tenant if the landlord wants to H
438 SUPREME COURT REPORTS [1988] Supp. 3 S.C.R.

A seek his eviction for his-residential or business needs.

In this case, the controversy centres around the question whether
a landlord can invoke Section 10(3)(c) of the Act to seek the eviction
of a tenant who is not occupying a portion of the building occupied by
the landlord himself but is occupying another building belonging to the
B landlord. While the Rent Controller held that the two premises viz.
1/ l/249 and 1/ 1/250 are separate and independent, the Appellate
Authority has taken the view that by reason of the unity of ownership
of the two buildings in the respdndent and by reason of the two build-
ings being separated only by a single wall "it can be said that the mulgi
constitutes additional accommodation to the appellant" and the fact
C that th.e two mulgies beat different municipal numbers should not
make any difference. The High Court has not construed the scope of
Section 10(3)(c) but has sweepingly said that:

"Whether both can be said to be same building or separate
buildings it does not matter, if the respondent wants the
D premises bona fide as an additional accommodation;
whether it is a separate building or a portion of the same
building, he can require it on that ground."

Before us it was canvassed by Mr. P.P. Rao, learned counsel for
the appellant that Section 10(3)(c) would entitle a landlord to seek the
E eviction of his tenant for purposes of additional accommodation for
himself only if the portion occupied by the tenant forms part of the
same building occupied by the landlord and that Section 10(3)(c) will
not apply to a case where the landlord and the tenant are occupying
different buildings even though the two buildings may be owned by the
same landlord. Controverting this argument Mr. Nambiyar, learned
F counsel for the respondent contended that the premises occupied by
the appellant, though assigned a separate municipal door number can-
not be treated as an independent and separate building because both
the buildings are owned by the respondent and secondly the leased
premises are separated from door number l/l/249 only by a single
wall.
G
On a consideration of the matter, we find that the contention of
Mr. Nambiyar, which has found acceptance with.the Appellate Court
and the High Court is not at all a tenable one. What Section 10(3)(c)
envisages is the oneness of the building and not the oneness of owner-
ship of two different buildings, one occupied by the landlord and the
H '<!>!her by the ~enant. The significant words use_d in Section 10(3_l(c) are
GANGARAM v. N.S. REDDY [NATARAJAN, J.] 439

"the landlord who is occupying only a part of a building" and "any
A
tenant occupying the whole or any portion of the remaining part of the
building". Surely no one can say that two adjoining buildings bearing
different door numbers, one occupied by the landlord and the other by
the tenant would make them one and the same building if they are
owned by one person and separate buildings if they are owned by two
different persons. A practical test which can be applied to find out if B
two adjoining buildings form part of the same building or two different
buildings would be to see whether one of the two buildings can be sold
by the landlord and the purchaser inducted into possession of the
premises sold without the landlord's possession and enjoyment of the
premises in his occupation being affected. Viewed in that manner, it
can at once be seen ihat the leased premises in the appellant's occupa-
tion can be independently sold and the purchaser delivered possession
c
without the respondent's possession of door no. 1-1-249 being
affected in any manner. As a matter of fact, the previous history of
the building shows that before it was purchased by the respondent, it
was owned by Sri Sitaram Rao and the respondent was owning only
door no. 1-1-249. Such being the case, merely because the appellant D
has acquired title to door no. 1-1-250 also, it can never be said that the
building under the tenancy of the appellant became part and parcel of
the respondent's building no. 1-1-249. Similarly, the fact that the two
buildings are separated only by a single wall with no intervening space
between them would not alter the situation in any manner because the ·
identity of two separate buildings is not to be judged on the basis of the E
buildings being separated by a single wall or by two separate walls with
intervening space in between them.

Section 10(3)(c) which occurred as Section 7(3)(c) in the Madras
Buildings (Lease and Rent Control) Act 1949 has been properly con-
strued by Chandrasekhara Sastri, J. in M. Ramaswamy Naidu v. F
P. Venkateswarlu, (Vol. II) 1961(1) A.W.R. page 400. The learned
judge has stated that Section 7(3)(c) "applies only to a case where the
landlord is occupying a part of a building and still requires the remain-
ing part for the purpose of his own business as additional accommoda-
tion." This decision has not been noticed by the Appellate Authority
and the High Court and they have proceeded solely on the basis that as G
per the ratio in Balaiah v. Lachaiah, (supra) the respondent is entitled
to an order of eviction even under Section l0(3)(a)(iii) for additional
accommodation despite the fact that he is in occupation of a building
of his own. '

Mr. Nambiyar referred to the de_finition of the word "building" . H
440 SUPREME COURT REPORTS [1988] Supp. 3 S.C.R.

in Section 2(iii) of the Act and argued that if for the purposes of the
A Act, where the context warrants it, different portions of the same
building can be treated as separate buildings, it should conversely be
held that if adjoining building are owned by the same person and one
of them is in the occupation of the landlord and the other by a tenant,
then for purposes of Section. 10(3)(c) the two buildings should be
B treated as an integrated and composite building. We are unable to
accept this argument because firstly the terms of Section 2(iii) do not
afford scope for such a construction and secondly the argument fails to
take note of the purpose' and object lying behind the definition of
"building" in the manner in which the clause is worded. Section 2(iii)
has been· provided so as to make the provisions of the Act applicable to
the whole of the building as well as to parts of it depending upon
C whether the entirety of the building has been leased out to a tenant or
different portions ·of it have been let out to different tenants. There is,
therefore, no room or scope for the respondent to invoke Section 2(iii)
to contend that two different premises should be treated as a single
and integrated building for the purposes of the Act if the two buildings
o adjoin each other and are owned by the same person but under diffe-
rent occupation i.e. one by the landlord and the other by the tenant. ·

Mr. Nambiyar then argued that if section 10(3)(c) is to be con-
strued as being applicable only when different portions of the same
building are in the occupation of the landlord as well as one or more
E tenants, it would result in a landlord like the respondent who. is
genuinely in need of additional accommodation being left with no
remedy whatever for securing additional accommodation for his busi-
ness needs. We find it unnecessary to go into the merits of this submis-
sion· because however genuine the· respondent's need for additional
accommodation.may be and whatever be the hardship resulting to him
p by non-eviction of the appellant, we cannot grant any relief to the
respondent under the Act as it now stands. As per the Act the relief of
eviction of a tenant can be given to a landlord only under two situa-
tions viz. (1) where the landlord is not in occupation of a building of
his own or to the possession of which he is entitled to by an order of
eviction under Section 10(3)(a)(iii) and (2) where the landlord is in
0 occupation of only a portion of his building and is bona fide in need of
additional accommodation and another or the remaining portion of the
building is in the occupation of a tenant or tenants by ordering his or
their eviction under Section 10(3)(c). The Le_gislature has not_provided
for Section 10(3)(c) b~in_g.made applicaple _to a landlord where he owns
adjoining buildings and is in occupation of only one of those two
!-! btiildii:igs and the tenant is in occupation of the other and the land-
GANGARAM v. N.S. REDDY INATARAJAN, J.] 441

lord's bona fide in need of additional accommodation for his residen- A
tial or business needs. If the hardship experienced by landlords similar
to the respondent is to be alleviated, then it is for the Legislature to
remedy the situation by making suitable amendments to the Act and it
is not for the Court to read Section 10(3)(c) beyond its terms oblivious
to the limitations contained therein and hold that a separate tenanted
building adjoining the building in ihe owner's occupation would also B
form part of the latter building.

In the light of our conclusions, it follows that the judgment and
order of the Appellate Authority and the High Court cannot be
sustained and have to be set aside. In the result, the appeal succeeds
and the order of the Rent Controller dismissing the respondent's peti- c
tion for eviction will stand restored. There will, however, be no order
as to costs

R.S.S. Appeal allowed.