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Tenants to evict commercial premises too: Supreme Court

New Delhi, Fri, 18 Apr 2008 NI Wire

The Wednesday brought mixed blend of happiness and sorrow for the Delhiites with the Supreme Court new directives on “Delhi Rent Control Act” that tenants uses leased premises for commercial purposes could be evicted on the landlord’s bonafide need.


A bench headed by Justice B N Aggarwal while eliminating the difference between rented places used for ‘commercial purpose’ and for ‘residential purposes’ said that since a person living in a rented house could be evicted by the landlord and so the same criteria also applied to the one used for commercial purpose.

The bench said that under section 14 (1) (e) of the 1958, Delhi Rent Control Act, which barred landlord from eviction of a tenant occupying commercial premises, is unconstitutional as it violates the doctrine of equality embodied in Article 14 of the Constitution.

It said, “Legislation which may be quite reasonable and rationale at the time of enactment may with the lapse of time, due to change of circumstances, become arbitrary, unreasonable or violative of the doctrine of equality.”

Although the Supreme Court said the new decree would apply to those rented commercial premises, which paid less than Rs 3500 per month, the verdict will impact a number of shopkeepers in Delhi even working in most coveted areas.

Hitherto the commercial premises on rent could be asked to evict owing to non-payment of rents, sub-letting, or if the premises were locked for more than six months. But the landlords now can seek eviction of commercial premises on mere base of bonafide need.

Setting aside a Delhi High Court verdict in this context the Supreme Court stated that High Court ruling may be quite reasonable and rationale at the time of enactment in context of shortage of buildings in the capital owing to the influx of refugees after partition, but now is outdated. The situation has considerably eased now and therefore that judgment was no longer relevant, the Supreme Court said after allowing the appeals of several landlords.

Earlier in 1973, a full bench of Delhi High Court while upholding previous ruling in the H.C Sharma Vs LIC and Amarjit Singh Vs Kahatoon Quamarin cases said that the proviso barring the eviction of a tenant occupying a commercial premises was not unconstitutional.

In contrast, the Supreme Court on Wednesday hold the view that the 1973 judgment should not be a base to disallow the appeal challenging the validity of Section 14(1)(e) as the refugees from West Pakistan and their next generations have properly settled down and were doing good and earning well.

The Supreme Court passed the judgment after allowing a petition filed by the legal heirs of a woman Satyawati Sharma against the decision of a full bench of Delhi High Court.


Read More: Delhi

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