Tenant Eviction Dispute: Supreme Court Upholds Landlord’s Right to Evict Over Rent Arrears

The case of Apollo Zipper India Limited vs. W. Newman And Co. Ltd. revolves around a tenant eviction dispute involving a heritage hotel property in Kolkata. The primary issue was whether the respondent (tenant) had a substantial defense to contest the eviction suit filed by the appellant (landlord), who sought possession of the premises due to non-payment of rent.

The dispute originated when the appellant acquired ownership of the Great Eastern Hotel property, including the respondent’s rented shop. The appellant served a notice terminating the tenancy due to unpaid rent and initiated a summary eviction suit under the Transfer of Property Act. The trial court ruled in favor of the landlord, but the High Court reversed the decision, granting the tenant leave to defend the case. The Supreme Court was then called upon to decide whether the tenant had valid grounds to contest the eviction.

Arguments by the Appellant (Apollo Zipper India Limited)

• The appellant argued that the respondent was liable for eviction due to non-payment of rent amounting to Rs. 39,20,000/-.
• They contended that the respondent had accepted them as the new landlord and had paid rent accordingly, thereby acknowledging their ownership.
• They asserted that the monthly rent of the suit premises was Rs. 40,000/-, which exceeded the threshold under the West Bengal Premises Tenancy Act, making the eviction suit maintainable under the Transfer of Property Act.
• The appellant maintained that the respondent had no substantial defense and was merely trying to delay the eviction proceedings.

Arguments by the Respondent (W. Newman And Co. Ltd.)

• The respondent claimed that they had not attorned (acknowledged) the appellant as their landlord.
• They argued that the rent was only Rs. 1,600 per month, which made the tenancy protected under the West Bengal Premises Tenancy Act.
• The respondent also contended that there was uncertainty about the ownership of the property, as another company, Bharat Hotels Ltd., was also involved in the ownership dispute.
• They sought a trial to contest the appellant’s claims, arguing that the eviction suit could not be summarily decided.

Supreme Court’s Observations

The Supreme Court found that the respondent had attorned to the appellant as the new landlord. The key observations included:

• The tenant had paid rent to the appellant and acknowledged their ownership, which established attornment.
• The rent receipts and agreements demonstrated that the rent was Rs. 40,000 per month, disqualifying the premises from the protections of the West Bengal Premises Tenancy Act.
• The tenant’s objections were not substantial defenses but rather attempts to delay eviction.
• The tenant failed to reply to the eviction notice, further weakening their case.

Final Judgment

The Supreme Court ruled in favor of the appellant and ordered the following:

• The respondent must vacate the premises within six months.
• The tenant must deposit all rent arrears and six months’ rent as damages.
• Failure to comply would allow the landlord to execute the eviction order immediately.
• All related pending legal cases between the parties were disposed of.

This judgment reaffirmed the principle that tenants cannot use procedural delays to evade eviction when there is clear evidence of rent default and attornment to the landlord.

Petitioner Name: Apollo Zipper India Limited.
Respondent Name: W. Newman And Co. Ltd..
Judgment By: Justice R.K. Agrawal, Justice Abhay Manohar Sapre.
Place Of Incident: Kolkata, West Bengal.
Judgment Date: 20-04-2018.

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