Holding

An eviction decree cannot be granted unless the landlord proves the tenant’s alteration, lack of consent, and material impairment of value or utility; here the landlord failed to prove material impairment, so the appeal was dismissed.

Summary

The landlord let a shop with a verandah to the tenant, who later enclosed the verandah and installed a rolling shutter without the landlord's consent. The landlord sought eviction under Section 13(2)(iii) of the East Punjab Urban Rent Restriction Act, 1949, alleging that the alteration materially impaired the shop's value and utility. The Rent Controller dismissed the petition for lack of proof, the Appellate Court reversed, but the High Court reinstated the dismissal, holding no material impairment. The Supreme Court affirmed that an eviction order requires proof of (i) the tenant's alteration, (ii) lack of consent, and (iii) material impairment of value or utility, and found the landlord had failed to prove the third limb. Consequently, the appeal was dismissed.

Issues considered

Whether the landlord proved that the tenant's alteration materially impaired the value or utility of the shop under Section 13(2)(iii) of the East Punjab Urban Rent Restriction Act, 1949.
Whether the burden of proving material impairment lies on the landlord.
Whether enclosing a verandah without consent automatically amounts to material impairment.

Legislation cited

East Punjab Urban Rent Restriction Act, 1949s. 13(2)(iii)

Subjects

rent controlevictionmaterial alterationvalue impairmentutilitylandlord-tenantEast Punjab Urban Rent Restriction ActSection 13(2)(iii)burden of proof

Judgment

A
. .' WARYAM SINGH
v.
BALDEV SINGH

OCTOBER 3 I, 2002

[S.N. VARIA VA AND ARUN KUMAR, JJ.]
B

Rent Control & Eviction :

East Punjab Urban Rent Restriction Act, 1949-Section 13(2) (iii)- C
Material alteration-Landlord letting out shop with verandah-Tenant covering
the verandah-Eviction Petition on ground of material alteration-Landlord
leading no evidence on material itnpair111ent of value and utility of the shop--
Rent Controller dismissing the petition-Appellate Court allowing the same-
High Court without disturbing finding offact that tenant made alteration, held
that alteration not materially impairing value and utility of shop thus, eviction D
decree cozild not be passed-On appeal held, since there is no proofofmaterial

... impairment in value or utility of shop, order of High Court upheld

Appellant-landlord let out a shop with a verandah to respondent-
tenant. Respondent-tenant altered the verandah by enclosing it and putting
a rolling shutter in the front without the consent of appellant-landlord. E
Appellant-landlord filed eviction petition. Rent Controller dismissed the
petition as the appellant-landlord could not prove that respondent-tenant
made any additions/alterations and also that the alterations made did not
impair the value and utility of the shop. First Appellate Court held that
respondent-tenant made additions/alterations which materially impaired F
the value and utility of the shop. Aggrieved, respondent filed a revision.
High Court di<I not disturb the finding of fact that respondent-landlord
made alteration but held that the alteration made did not materially impair
the value and utility of the shop and allowed the revision. Hence the present
appeal.
G
Dismissing the appeal, the Court

HELD: I.I. An order for eviction can be passed only ifthe landlord
proves that the tenant had carried out the construction; that the same was
without the consent of the landlord; and that the value or utility had been
H
9
, I
10 SUPREME COURT REPORTS [2002] SUPP. 4 S.C.R.

A materially impaired. In the instant case, first Appellant Court, concluded
i ·-
on facts that respondent had carried out alteration by enclosing the
verandah. On facts, it has been held that this has been done without the
consent of appellant. Revisional Court was correct in not interfering with
the findings of fact that respondent made alteration. Thus there is no
B reason to take a different view on a question of fact. (15-H; 16-A(

1.2. On the question of material impairment of value or utility of
the shop appellant lead no evidence at all. It cannot be said that no
evidence was re.quired to be lead as it has to be inferred that the value or
utility had been diminished. In the case of a shop, particularly in a business
C locality, the area of the shop gets increased by the verandah getting
enclosed. This would increase the value and utility of the shop. Further,
there is no proof, that free flow of light and air has been stopped. On the
contrary, by putting up a rolling shutter in the front the flow of light and
air is increased. Thus in the absence of any proof of material impairment
in value or utility of the shop, High Court was right in concluding that no
D decree for eviction could be passed and therefore, there is no reason to
interfere with the judgment of the High Court. [16-B-D)

Om Prakash v. Amar Singh, [1987) 1 SCC 458, relied on.

Dewan Chand v. Babu Ram, (1980) 2 RCJ 615 and Vipin Kumar v.
E Roshal Lal Anand, [1993) 2 sec 614, distinguished.

Narain Singh v. Bakson Laboratories, (1981) CLJ (Civil) 414,
disapproved.

Gurbachan Singh v. Shivalak Rubber Industries, [1996) 2 SCC 626;
F Kartar Singh v. Kesar Singh and Anr., (1980) 2 RCJ l; Brijendra Nath
Bhargava v. Harsh Wardhan, (1988) 1 SCC 454 and Om Pal v. Anand
Swarup, [1988[ 4 SCC 545, referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6942 of
2000.
G
From the Judgment and Order dated 14.3.2000 of the Punjab and
J-laryana High Court in C.R. Nos. l 838 of 1989.

Sudhir Walia and Mahlnder Singh Dahiya, for the Appellant.

H Dabasis Misra, for the Respondent.
. ....
WARY AM SINGH v. BALDEV SINGH [S.N. VARIAVA. J.] JJ
The Judgment of the Court was delivered by A
.'
S.N. VARIAVA, J. This Appeal is against a Judgment dated 14th
March, 2000.

Briefly stated the facts are as follows:
B
The Appellant, who is a landlord of the concerned premises, filed
Eviction Petition on two grounds, namely, arrears of rent and secondly that
there was material alteration in the shop without the written consent of the
landlord. The Appellant claimed that the shop had thus been materially
impaired in value and utility. The Respondent immediately deposited the rent
in Court and, therefore, the first ground did not survive. The Petition was C
contested only on the ground of material alteration.

On 9th November, 1987 the Rent Controller rejected the ejectment
Petition holding that the Appellant had not been able to prove that the
Respondent had made any additions/alterations. The Rent Controller also D
held that the alterations were not of such a nature that they had impaired the
value and utility of the shop.

Th~ Appellant filed an Appeal which was allowed by an Order dated
26th May, 1989. The Appellate Court held that the additions/alterations had
been made by the Respondent-tenant and that they materially impaired the E
value and utility of the shop. The Respondent then filed a Civil Revision
before the High- Court which has been allowed by the impugned Judgment.
The High Court has not disturbed the finding of fact that the alteration was
made by the Respondent. The High Court has, however, concluded that the
alteration was such that it had not materially impaired the value and utility
of the shop. Hence this Appeal. F
• Before we consider the submissions, the necessary provisions need to
be set out. Sections 13(2)(iii) of the East Punjab Urban Rent Restriction Act,
1949 reads as follows:

"13. Eviction of tenants.- G
xxx xxx xxx

xxx xxx xxx

(2) A landlord who seeks to evict his tenant shall apply to the H
12 SUPREME COURT REPORTS [2002] SUPP. 4 S.C.R.

A Controller for a direction in this behalf. If the Controller after giving
the tenant a reasonable opportunity of showing cause against the
application, is satisfied:

xxx xxx xxx

B xxx xxx xxx

(iii) that the tenant has committed such acts as are likely to impair
materially the value or utility of the building or rented land,

xxx xxx xxx
c xxx xxx xxx"

Thus it is to be seen that the act of the tenant must be one which is likely
to impair, materially, the value of utility of the building or the rented land.

D In this case what was let out was a shop with a verandah. The alteration
is that the verandah has been covered up by construction of walls on the two
sides and a rolling shutter in the front. The original door has also been
removed. The question would be whether enclosing the verandah would
amount to impairing materially the value or utility of the shop. A number of
authorities have been cited. We therefore need to consider those authorities.
E
Mr. Sudhir Walia first relied upon the case of Dewan Chand v. Babu
Ram, reported in 1980 (2) &CJ 615. In this case the tenant had removed
rafters of the shop from the wall and placed a lintel thereon. The tenant had
also constructed two walls on two sides of the verandah and fixed a door on
the outer wall of the two sides. It was found, as a matter of fact, that the
F changes had caused cracks on the walls of the first floor. Because of this the
Court held that the changes had impaired materially the value and utility of
the shop. This case therefore would be of no assistance to the Appellant as,
..
admittedly, in the present case, it has not been shows that as a result of the
changes the shop is damaged in any manner.
G Mr. Walia next relied upon the case of Vipin Kumar v. Roshal Lal
Anand, reported in (1993] 2 SCC 614. In this case, the tenant had constru<?ted
a wall on the verandah and put up a door. The tenant had also removed
certain fixtures. Thi~ Court held as follows:

H "Clause (iii) of sub-section (2) of Section 13 prov~des that" if
WARY AM SINGH 1'. BALDEV SINGH rs N. VARIAVA. J.] 13

the tenant has committed such acts as are likely to impair materially A
the value of utility of the building or rented land"'. the Rent Controller
1nay make an order directing the tenant to put the landlord in possession
of the building or rented land. If the Controller is not so satisfied, he
shall 111ake an order rejecting the application. It is, therefore) clear
that if the tenant had committed such acts as are likely to impair
materially the value of utility of the building, he is liable to ejectment. B
The finding recorded by the Controller is that on account of the
construction of the wall and putting up a door the flow of light and
air had been stopped. He removed the fixtures. So the value of the
demised shop has been impaired and utility of the building also is
impaired. The impairment of the value or utility of the building is C
from the point of the landlord and not of the tenant. The first limb
of Clause (iii) of sub-section (2) of Section 13 is impairment of the
building due to acts committed by the tenant and the second limb is
of the utility or value of the building has (sic having) been materially
impaired. The acts of the tenant must be such that by erecting the
wall he had materially impaired the value or utility of the demised D
premises .. It is contended by Mr. Prem Malhotra that the landlord
shou Id prove as to how it is materially affected and that there is no
evidence adduced by the landlord. We find no force in the contention.
By constructing the wall, whether the value or utility of the building
has materially been impaired is an inferential facts to be deduced E

.. from proved facts. The proved facts are that the appellant without the
consent of the landlord had constructed the wall and put up a door
therein as found by the Rent Controller, the flow of air and light has
been stopped. He removed the fixtures."

, Thus, it is to be seen that it was proved that fixtures had been removed and F
that by constructing the wall and putting up of a wall flow of air and light
had been stopped. Jn the present case, there is absolutely no proof that any
fixtures has been removed and/or that the flow of air and light has been
stopped. To be noted that all that has been put up in the front is a rolling
shutter. The rolling shutter would be locked only in the night. During the G
day the shutter would be kept open. Therefore, there would in fact be more
light and air in the shop. This case also therefore does not assist the Appellant.

Mr. Walia then relied upon the case of Gurbachan Singh v. Shivalak
Rubber Industries, reported in [l 996] 2 SCC 626. In that case a number of
shops had been let out to the tenants. Along with the shops there were some H
14 SUPREME COURT REPORTS [2002] SUPP. 4 S.C.R.

A open spaces also. The tenants removed the roofs of the shops, the partition
walls and the doors. They then laid a new roof merging the verandah with
the shops, closing the doors and opening new doors and windows. They also
enclosed the open spaces. Resu It of all the alterations was that the premises
was conve1ted altogether into a new and different shape. On these facts it was
held that the tenant had committed acts which impaired materially the value
B or utility of the premises. It was held that impairment of value or utility must
be judged from the point of view of the landlord and no one else. It was held
that the question whether the additions amount to material impairment in
value or utility depends upon the facts which have to be proved. In other
words merely because some additions/alterations have been ma<ie would not
C itself amount to impairment in the value or utility of the premises, much less
material impairment.

Mr. Walia next relied upon the case of Kartar Singh v. Kesar Singh
and Anr., reported in (1980) 2 RCJ l. In this case the alteration was that a
partition wall between two rooms had been demolished turning the two shops
D into one. The tenant had also made an opening in the partition walls of the
rooms behind the front room. The tenant had removed the "Chutkhats" and ....
"Takhtas" of four doors and had included the verandah in the front room
and fixed a shutter on one of the doors in verandah and a tin dol)r on the
other. It was held that this amounted to additions and alterations which
E impaired materially the value and utility of the building. To be noted that
here also the additions and alterations were of a substantial nature and the
finding is given on the facts of the case. The finding is based on the fact that
the substantial changes had resulted in the premises being totally different
from that which had been rented out. On facts it was held that the alterations
were of far-reaching nature and the utility had been diminished from the
F point of view of the landlord.

Mr. Walia next relied upon the case of Narain Singh v. Bakson
Laboratories, reported in 1981 CLJ (Civil) 414, In that case, the tenant had
enclosed the verandah on the front and back side of the building and had
G opened a door by breaking the wall of the room. It was held that this diminished
the value of the premises. With great respect to the learned Judges concerned,
we find ourselves unable to accept this proposition . As stated above it is not
every addition or alteration which r.:ould be said to materially impair value or
utility. It has to be proved that the value or utility has been materially impaired.
Merely because some additions or alterations are made it cannot be presumed
H or inferred that the value or utility of the building has been impaired. This
WARY AM SINGH"· BALD EV SINGH [S.N. VARI;\ VA. J.] 15

authority cannot be said to be laying do,vn the correct proposition of la\V. A
We find support for our point of vie\v fro111 the case of 0111 Prakash v.
Amar Singh reported in [ 1987] I SCC 458. In that case, a temporary pmtition
\Vall of 6 feet height \Vas put up in a big hall. This partition \Vas 111ade \Vithout
digging any foundation on the tloor and the partition did not touch the selling.
The tenant had also extended the pre-existing tin shed on the open land by B
constructing a \Vall of 1nud and enclosing that wall \Vith ba1nboo tatters. It
was held that before a landlord could get a decree it must be established (I)
that the tenant had made the construction, (2) that such construction was
without the consent of the landlord and (3) that such construction had
materially affected the premises. It was held that these three conditions were C
cumulative in nature and each one of them was necessary to be established
before a decree of eviction could be passed. It was held that the construction
which had been carried out did not materially alter the premises and that
therefore no ground for eviction had been made out.

Jn the case of Brijendra Nath Bhargava v. Harsh Wardhan reponed in D
fl988] I SCC 454, the tenant put up a "dochatti" for storing the goods on
the roof of the cabin with a wooden staircase from inside the cabin to go to
the balcony. The question was whether this materially impaired the value or
utility of the building. It was held that in order to attract Section 13(2) (iii)
' the construction must not only impair the value or utility of the building but
must also be of a material nature, i.e. the changes must be of substantial or E
significant nature. It was held that the burden of proving such material
impairment was on the landlord. It was held that the constructions put up
were of a temporary nature and that therefore they did not materially affect
the value or utility of the premises.

In the case of Om Pal v. Anand Swarup, reported in [1988] 4 SCC 545,
F
the tenant had put up a wooden balcony in the showroom. It was held that
the answer to the question whether there was a material alteration or not
depended upon the facts and circumstances of each case. It was held that the
constructions must be substantial and pennanent in nature. In this case it was
held that constructions did not materially alter the premises. G
Thus an Order for eviction can be passed only if the landlord proves
(a) that the tenant had carried out the construction, (b) that the same was
without the consent of the landlord and (c) that the value or utility had been
materially impaired. In the present case, the First Appellate Court, on facts,
. ' H
16 SUPREME COURT REPORTS [2002] SUPP. 4 S.C.R.

A concluded that the Respondent had carried out alteration by enclosing the
verandah. On facts it has been held that this has been done without the
consent of the Appellant. The Revisional Court has correctly not interfered
with the findings of fact. We also see no reason to take a different view on
a question of fact.

B However, the question still arises whether merely because a verandah
is enclosed it can be inferred, without any further evidence or proof, that the
value and utility is affected. On the question of material impairment of value
or utility the Appellant has lead no evidence at all. The submission has been
that no evidence was required to be lead as it has to be inferred that the value
C or utility had been diminished. We are unable to accept such a submission.
In the case of a shop, particularly in a business locality, the area of the shop
gets increased by the verandah getting enclosed. This would increase. the
value and utility of the shop. In this case there is no proof, like in Vipin
Kumar's case (supra), that free flow of light and air has been stopped. On the
contrary, by putting up a rolling shutter in the front the flow of light and air
D is increased. In the absence of any proof of material impairment in value or
utility, the High. Court was right in concluding that no decree for eviction
could be passed. We, therefore, see no reason to interfere with the Judgment
of the High Court.

Accordingly the Appeal stands dismissed. Therewill be no order as to
E costs.

N.J. Appeal dismissed.