Supreme Court Rules on Eviction and Re-Induction of Tenant in Reconstructed Property

The case of Om Prakash vs. Suresh Kumar revolves around a long-standing tenancy dispute over a commercial property in Hamirpur, Himachal Pradesh. The Supreme Court was tasked with deciding whether the landlord, Om Prakash, was obligated to re-induct his tenant, Suresh Kumar, into the newly reconstructed premises after an eviction order.

Background of the Case

The dispute dates back to 1969, when the father of the respondent, Suresh Kumar, was inducted as a monthly tenant in a commercial premises owned by Om Prakash. The tenant used the space to operate a cloth business.

Key developments in the case:

• In 2013, the landlord, Om Prakash, initiated eviction proceedings before the Rent Controller, citing the need to demolish and reconstruct the building.
• The Rent Controller ruled in favor of the landlord, ordering eviction on November 28, 2013.
• The decision was upheld by the Appellate Court.
• Suresh Kumar filed a civil revision petition before the Himachal Pradesh High Court in 2015.

High Court’s Ruling

During the High Court proceedings, the tenant expressed willingness to vacate the premises if the landlord agreed to re-induct him into the reconstructed building.

The landlord’s counsel accepted this condition, stating that:

“The petitioner-tenant will be re-inducted in equal area in the newly constructed building within one month from the date of completion of construction.”

Based on this assurance, the High Court disposed of the case on May 12, 2016, directing:

• The tenant to vacate the premises by October 31, 2016.
• The landlord to complete reconstruction by October 31, 2017.
• The tenant to be re-inducted into an equivalent area by November 30, 2017.
• Failure to re-induct the tenant would make the landlord liable for damages at Rs. 1,000 per day from December 1, 2017.

Review Petition Filed by the Landlord

After changing his legal representation, Om Prakash filed a review petition, claiming that he never instructed his previous counsel to make the commitment regarding re-induction.

The High Court dismissed the review petition on August 24, 2016, prompting Om Prakash to appeal to the Supreme Court.

Arguments by the Appellant (Om Prakash)

The landlord contended:

• His lawyer’s statement before the High Court was made without his consent and was not binding on him.
• He had no obligation to re-induct the tenant after reconstruction.
• The High Court’s condition of Rs. 1,000 per day as damages for non-compliance was excessive and unjustified.

Arguments by the Respondent (Suresh Kumar)

The tenant argued:

• The landlord’s counsel gave an unequivocal statement before the High Court, which was binding.
• He vacated the premises based on this commitment and had a legal right to be re-inducted.
• The landlord was now attempting to go back on his word to deprive him of re-possession.

Supreme Court’s Observations

The Supreme Court examined whether a lawyer’s statement in court binds the client and whether Om Prakash could retract his commitment.

1. Lawyer’s Statement Before Court is Binding

The Court held that:

“An unequivocal statement made by an authorized counsel before a court is binding on the client, unless proven to be made under misrepresentation or fraud.”

It noted that Om Prakash’s lawyer had clear authority to represent him and had made the statement voluntarily.

2. Re-Induction Must Be Honored

The Supreme Court ruled that since the tenant vacated the premises based on the commitment, the landlord was bound to re-induct him.

3. Modifications to the High Court Order

However, the Supreme Court acknowledged that due to structural constraints in the new building, the entire ground floor could not be provided to the tenant.

The Court modified the order:

• The tenant would be given a portion of the ground floor measuring 3.73 meters x 7.57 meters.
• The landlord must erect a dividing wall within six weeks to separate the tenant’s space.
• The landlord must compensate the tenant with Rs. 74,000 for loss of space.
• The tenant’s rent would be determined by the Rent Controller.

Final Judgment

The Supreme Court ruled:

• The High Court’s judgment was modified to reflect the new space allocation.
• The landlord must re-induct the tenant within six weeks.
• The Rs. 1,000 per day penalty was waived.
• The compensation amount of Rs. 74,000 must be paid to the tenant.

Implications of the Judgment

This ruling reinforces several key legal principles:

• A lawyer’s statement in court is binding unless shown to be unauthorized.
• Landlords must honor commitments made in eviction cases.
• Courts can modify eviction orders to ensure fairness.
• Compensation must be paid if a tenant loses part of their space.

Conclusion

The Supreme Court’s judgment ensures fairness in eviction and re-induction cases. It underscores the importance of honoring court commitments while allowing flexibility for structural constraints. This ruling serves as a precedent for similar landlord-tenant disputes in India.

Petitioner Name: Om Prakash.
Respondent Name: Suresh Kumar.
Judgment By: Justice A.M. Khanwilkar, Justice Hemant Gupta, Justice Dinesh Maheshwari.
Place Of Incident: Hamirpur, Himachal Pradesh.
Judgment Date: 30-01-2020.

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