Co-Owner Is 'Landlord' Under Bombay Rent Act, Can Maintain Eviction Suit Without Exclusive Title: Supreme Court

The Supreme Court has held that a co-owner of a property qualifies as a “landlord” under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and is therefore entitled to maintain eviction proceedings even without exclusive title or formal partition of the tenanted premises.

A bench of Justice Manoj Misra and Justice Manmohan set aside the Bombay High Court's decision that had overturned the concurrent findings of the trial court and the first appellate court in an eviction dispute, where the appellant-plaintiff, a co-owner and co-landlord of the tenanted premises, had sought eviction of the respondent-tenants on the ground of bona fide residential requirement for her family needs.

The High Court had reversed the eviction decree in civil revision proceedings on the ground that the appellant had failed to establish exclusive ownership over the premises so as to qualify as a landlord competent to maintain the eviction suit.

Restoring the trial court's eviction decree in the Appellant's favour, the judgment authored by Justice Manmohan observed that co-ownership itself creates an entitlement to receive rent, which is sufficient to confer the status of “landlord” under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (“Act”).

The Court rejected the tenant's argument that the appellant lacked exclusive ownership over the suit premises and therefore could not seek eviction. It held that the statutory definition of “landlord” is broad enough to include co-owners and persons entitled to receive rent on behalf of others.

Section 5(3) of the Act defines landlord as “any person who is for the time being, receiving, or entitled to receive, rent in respect of any premises whether on his own account or on account, or on behalf, or for the benefit of any other person or….”

In light of this definition, the Court held that “the Appellant, being the co-owner of the suit building was entitled to receive rent and thus fell squarely within the statutory definition of 'landlord' under the Act.”

Importantly, the Court clarified that exclusive ownership or partition of the property is not a precondition for maintaining eviction proceedings.

The judgment stated that all co-owners of the property are landlords in the eyes of the rent control law and any of them can maintain proceedings if otherwise legally permissible.

“…this Court holds that the Appellant has conclusively proved that, at the time of filing the suit, she was a holder of the share certificates, had an interest in the land and was a co-owner of the Suit Building.”, the court said.

In terms of the aforesaid, the appeal was allowed, thereby restoring the eviction decree against the Respondent-tenants.

Cause Title: MARIETTA D' SILVA VERSUS RUDOLF CLOTHAN LACERDA & ORS.

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Appearance:

For Petitioner(s) : Mr. Siddharth Bhatnagar, Sr. Adv. Ms. Pritha Srikumar Iyer, AOR Mr. Arun Srikumar, Adv. Mr. Nadeem Afroz, Adv. Mr. Ritwik Gupta, Adv.

For Respondent(s) : Mr. Upendra Mahadik, Adv. M/s Juristrust Law Offices, AOR Mr. Prashant Shrikant Kenjale, Adv. Mr. Naveen Hegde , AOR