UMED SINGHversusARYA SAMAJ SEWA SADAN

A                                 UMED SINGH
                                         v.
                         ARYA SAMAJ SEWA SADAN

                                  JULY 4, 2006

B           [DR. AR. LAKSHMANAN AND AL TAMAS KABIR, JJ.]


         Haryana Urban (Control of Rent and Eviction) Act, 1973:

          ss. I 3(3)(a)(i) and (ii)-Residential premises owned by Arya Sama) Sewa
C   Sadan-Eviction of tenant sought for bona fide need for running a public
    library therein-Held, a juristic person cannot have need of residence but
    may use premises for non-commercial purpose unconnected with any business
    or trade--Suit premises came under the ambit of s. l 3(3)(a)(i)-Eviction of
    tenant affirmed.
D         Appellant was a monthly tenant of the suit premises, which was a
    residential building. The respondent, Arya Samaj Sewa Sadan, which later
    became landlord of the building through a will, filed a suit for ejectment
    of the appellant u/s 13(3)(a)(i) of the Haryana Urban (Control of Rent and
    Eviction) Act, 1973 on the grnunds of non-payment of rent and bona fide
E   requirement for starting a library therein. The Rent Controller decreed
    the suit and the appellate authority affirmed the decree. However, in the
    High Court the matter was referred to a Full Bench, which held in favour
    of the respondent and, interpreting s.13(3)(a)(i) and (ii) of the Act,
    observed that any activity, whether it is to be carried on in a building by
F   a juristic person or an individual but is not tainted with business or trade
    and is essentially not connec:ted with profit and loss, such activity would
    not render the usage of the building as "non-residential building". The
    revision of the tenant was dismissed.

          In the present appeals filed by the tenant it was contended that the
G High Court failed to consider that the provisions of s.13(3)(a)(i) would have
    to be interpreted in the context of residential use and not for any other
    purposes, and in this view of the matter running a library could not be
    said to be for residential purpose and the expression "own occupation"
    could only be in relation to use and occupation for residential purpose.

H                                       196
                UMED SINGH v. ARYA SAMAJ SEWA SADAN                      197
      On the question: whether sub-clause (i) of sub-s. (3) (a) of s.13 of      A
the Haryana Urban (Control of Rent and Eviction) Act, 1972, makes it
obligatory on the part of the landlord to use the premises purely for
residential purposes only or whether the expression "own occupation" also
connotes use of the premises for non-commercial purposes, i.e. for
purposes unconnected with business or trade,
                                                                                B
      Dismissing the appeal, the Court

      HELD: The respondent-society intends t.:i use the premises in
question for running a public library without any profit which would bring
the same within the ambit of non-commercial use. The Full Bench of the          C
High Court was, therefore, fully justified in arriving at the conclusion that
the suit premises would be covered by the provisions of s.13{3){a){i) of the
Haryana Urban (Control of Rent and Eviction) Act, 1973. The respondent
being a society, cannot have any residential requirement in respect of a
premises and its activities will have to determine the nature of its use of a
premises. A juristic person cannot have need of residence but may use a         D
premises for non-commercial purposes. Since the society intends to use
the premises for itself for a non-commercial purpose, unconnected with
any business or trade, it must come within the ambit of s.13{3)(a)(i) of
the Act and more particularly so having regard to clause {ii) which
contemplates use of the residential premises even for purposes such as a        E
consulting room for a lawyer or other professionals. (202-A-CJ

      Atul Castings Ltd. v. Bawa Gurvachan Singh, (2001[ 5 SCC 133 and
Attar Singh v. lnder Kumar, [1967] 2 SCR 50, referred to.

     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6495 of2005.                F
                                      WITH

     Civil Appeals Nos. 6496 and 6497 of 2005.

     From the Judgment and Order dated 23.8.2002 of the High Court of G
Punjab and Haryana at Chandigarh in CR No. 4999 of 2000.

     Raj Kumar Gupta, Sheo Kumar Gupta, Bhanu Pratap Gupta and A.N.
Bardiyar for the Appellant.

     Gagan Gupta, Ranjay Kumar and B.K. Satija for the Respondent.              H
    198                     SUPREME COURT REPORTS (2006] SUPP. 3 S.C.R.

A         The Judgment of the Court was delivered by

           AL TAMAS KABIR, J. The appellant, Urned Singh, was inducted as
    a tenant of the suit premises by one Sewa Ram at a monthly rent of Rs. I00/
    - for residential purposes. One Mohan Lal was also a tenant of a portion of
    the building. The said Sewa Ram executed a Will in favour of the respondent-
B   society, Arya Samaj Sewa Sadan, on 15th March, 1984. Soon thereafter, on
    5th June, 1984, Sewa Ram died.

           On 25th March, 1994, the respondent filed ejectment suit against the
    appellant herein under Section l 3(3)(a)(i) of the Haryana Urban (Control of
C   Rent) & Eviction Act, 1973 (hereafter referred to as 'the Act') for non-
    payment of rent from !st December, 1989 to 31st March, 1994 and als0 on
    the ground of bona fide requirement for starting a library in the suit premises.
    It may be indicated that the respondent-society also filed a suit against the
    other tenant, Mohan Lal, but the same was dismissed by the Rent Controller
    on the ground that running of a library could not be equated with the expression
D   "use or occupation by the landlord for purposes of residence". An appeal
    preferred by the society against Mohan Lal was allowed and the judgment of
    the trial court was set aside. Ultimately, however, the High Court set aside
    the judgment of the Appellate Authority and restored the decision of the Rent
    Controller.
E
           In the meantime, by its judgment and order dated 31st January, 2000,
    the Rent Controller decreed the eviction petition filed by the society against
    Urned Singh on the ground of bona fide requirement and an appeal preferred
    therefrom by Urned Singh was dismissed by the appellate authority on 24th
    August, 2000. Urned Singh filed a Revision Petition before the High Court
F   on 7th November, 2000 against the said judgment of the appellate authority
    dated 24th August, 2000. The said Revision Petition was dismissed by the
    High Court on 22nd November, 2000. Subsequently, having regard to the
    decision of the High Court in the case of Mohan Lal, the other tenant, whereby
    the society's eviction petition had been dismissed, Urned Singh filed a Review
G   Petition before the High Court on 21st December, 2000 relying on the decision
    in Mohan LQ/'s case. In view of the High Court's decision in Mohan La/'s
    case, the order dated 22nd November, 2000 dismissing Urned Singh's Revision
    Petition was recalled and upon further consideration of the provisions of
    Section 13(3)(a)(i) of the Act and its different interpretations by two Division
H   Benches of the expression "for his uwn use and occupation" as used in the
    said section, the learned Judge referred the matter to the Chief Justice for the
          UMED SINGH v. ARY A SAMAJ SEWA SADAN [AL TAMAS KABIR, J.] 199

     following question to be examined by a larger Bench, namely,                      A
             '"Whether his own occupation' and the 'residential purpose' in relation
             to a corporate body/juristic person can be read in wider perspective
             or in stricto senso of the dictionary meaning?"

            The aforesaid reference was placed before the Full Bench of the Punjab B
     and Haryana High Court which considered the question referred to it in great
     detail in its judgment dated 23rd August, 2002, in the context of Section 13
     (3)(a)(i) of the Act. While considering the Reference, the attention of the Full
     Bench was drawn to the observations made by the learned Single Judge in
      Mohan Lal's case in C.R. No.1217/2000, wherein reference was made to a
     decision of this Court in the case of Attar Singh v. lnder Kumar, reported in     c
     [ 1967] 2 SCR 50, which was a decision rendered under the provisions of the
     East Punjab Urban Restrictions Act, No.III of 1949 (hereinafter refer;·ed to as
     "the 1949 Act"). The learned Single Judge relied on the finding in the said
     decision that as the respondent-landlord required the land not for business or
     trade but only for constructing a house for himself, he was not entitled to D
     eject the appellant under Section 13(3)(a)(ii) of the 1949 Act from the rented
     land. After considering the decision of this Court in the aforesaid case, the
     Full Bench made a distinction between the facts of Attar Singh 's case and
     those of the case before it upon holding that the expression "his own
     occupation" had been restricted by virtue of the restraints provided in Section
      13(3)(a)(ii) of the 1949 Act. Upon considering the submissions made, the E
     Full Bench held that all buildings which were not "non-residential buildings"
     would be "residential buildings". Furthermore, the expression "business or
     trade" are so intertwined that they are complementary to each other and it is
     imperative to be seen in each case as to whether activities which are to be
     carried out in the building are attended with business and/or trade or not. If F
     such element is missing in the activity which is to be carried on or is to be
     carried out in the building, such buildings would not be defined as "non-
     residential building".

            Upon holding as aforesaid, the Full Bench answered the question referred
     to it, as extracted hereinabove, in the following manner:-                        G
            "Any activity, whether it is to be carried out or is being carried on
            in a building by a juristic person or an individual but is not tainted
            with business or trade and is essentially not connected with profit and
            loss, such activity would not render the usage of the building as "non
•·          residential building". Unless the user has been defined under a statute    H
    200                      SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R.

A           to be commercial dehors of element of profit and loss, such building
            shall be termed as "non-residential building". Thus, in each case it
            shall have to be examined whether the element of business or trade
            has crept in with the rnecessary element of profit and loss and as a
            sequel thereto, the purpose and object of occupation by the landlord
            shall stand defined accordingly."
B
          In view of the above, the interpretation of Section 13(3)(a)(i) of the Act
    in Mohan Lal 's case was overruled. Subsequently, the Review Petition which
    was pending was also dismissed by virtue of the decision rendered in the
    Reference.
c         These three appeals which were filed by the tenant, Umed Singh against
    the initial judgment of the High Court in the Civil Revision filed by the
    tenant and the judgment rendered by the Full Bench and the subsequent
    dismissal of the Review Petition, have been heard together and are being
    disposed of by this common judgment.
D
           On behalf of the appellant, it was sought to be argued that the decision
    of the Full Bench was erroneous, inasmuch as Section 13(3)(a) of the Act
    referred to residential buildings and clause (i) thereof could only be interpreted
    in respect of such residential building. It was urged that running a library
    could by no stretch of imagination be said to be for residential purposes and
E   the expression "own occupation" could only be in relation to use and
    occupation for residential purpose. It was submitted that the Full Bench of
    the High Court had failed to consider the fact that the aforesaid provisions
    would have to be interpreted in the context of residential use and not for any
    other purpose. It was urged that the view taken by the Full Bench was
F   erroneous and was liable to be ;;et aside and both the Civil Revision Application
    and the Review Petition filed by the appellant before the High Court were
    liable to be allowed.

          Such submissions were vehemently opposed on behalf of the respondent-
    society and it was submitted that-all non-residential purposes need not be
G   connected with commercial ac:tivity as had been provided for in clause (ii) of
    Section 13(3)(a) which contemplates a form of commercial activity but has
    also been included in the expre:ssion "own occupation" in case of a "residential
    building".

         Reference was made to the decision of this Court in Atul Castings Ltd.
H   v. Bawa Gurvachan Singh. [2001] 5 sec 133, wherein it was observed that              •
          UMED SINGH v. ARYA SAMAJ SEWA SADAN [ALTAMAS KABIR, J.) 201
:
     when a premises had been leased for residence only, and there was no specific      A
     clause in the agreement that not even one room could be used as a study
     room for the members of the family for doing office work at home, such
     activity could still be undertaken in the leased premises, particularly in the
     days of computer, internet and other like facilities which are kept at home for
     convenience and use.
                                                                                        B
           Since we have been called upon to consider the provisions of Section
     13(3)(a)(i) and (ii) of the Act in the background of the decision rendered by
     the Full Bench of the Punjab and Haryana High Court, the same is reproduced
--   hereinbelow for the sake of reference:-

             "13. Eviction oftenants.-{3) A landlord may apply to the Controller        c
             for an order directing the tenant to put the landlord in possession -

             (a) in the case of a residential building, if,-

             (i) he requires it for his own occupation, is not occupying another
             residential building in the urban area concerned and has not vacated       D
             such building without sufficient cause after the commencement of the
             I949 Act in the said urban· area:

                  (ii) he requires it for use as an office or consulting room by his
                  son who intends to start practice as a lawyer, qualified architect
                  or chartered accountant or as a "registered practitioner" within      E
                  the meaning of that expression used in the Punjab Medical
                  Registration Act, I 9 I 6, the Punjab Ayurvedic and Unani
                  Practitioners Act, I963, or the Punjab Homoeopathic Practitioners
                  Act, I 965, or for the residence of his son who is married:
             Provided that such son is not occupying in the urban area concerned        F
             any other building for use as office; consulting room or residence, as
             the case may be, and has not vacated it without sufficient cause after
             the commencement of the I 949 Act."

           There is no ambiguity that the provisions referred to are to be considered
     in the case of a residential building. In other words, we will have to consider    G
~    whether Sub-clause (i) makes it obligatory on the part of the landlord to use
     the premises purely for residential purposes only or whether the expression
     "own occupation" also connotes use of the premises for non-commercial

-    purposes, i.e. for purposes unconnected with business or trade.
                                                                                        H
    202                      SUPREME COURT REPORTS [2006) SUPP. 3 S.C.R.

A          The respondent-society intends to use the premises in question for
    running a public library without any profit which would bring the same
    within the ambit of non-commercial use. The Full Bench of the High Court
    was, therefore, fully justified in arriving at the conclusion that the suit premises
    would be covered by the provisions of Section I3(3)(a)(i) of the aforesaid
    Act. The rt:spondent being a society, cannot have any residential requirement
B   in respect of a premises and its activities will have to determine the nature
    of its use of a premises. A juristic person cannot have need of residence but
    may use a premises for non-commercial purposes. Since the society intends
    to use the premises for itself for a non-commercial purpose, unconnected
    with any business or trade, it must, in our view, come within the ambit of
C   Section 13(3)(a)(i) of the Act and more particularly so having regard to
    Clause (ii) which contemplates use of the residential premises even for purposes
    such as a consulting room for a lawyer or other professionals.

          We, therefore, see no reason to interfere with the reasoning of the Full
    Bench while considering the provisions of Section 13(3)(a) (i) of the Act and,
D   in our view, the appeals before us are devoid of merit and are accordingly
    dismissed.

           There will be no order as to costs.

    R.P.                                                           Appeal dismissed.




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