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M/S. BRITISH MOTOR CAR CO. versus MADAN LAL SAGGI (D) AND ANR.

Citation: [2004] SUPP. 6 S.C.R. 203 · Decided: 19-11-2004 · Supreme Court of India · Bench: SHIVARAJ V. PATIL, B.N. SRIKRISHNA · Disposal: Dismissed

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Judgment (excerpt)

MIS. BRITISH MOTOR CAR CO. 
A 
v. 
MADAN LAL SAGGI (D) AND ANR. 
NOVEMBER 19, 2004 
[SHIVARAJ V. PATIL AND B.N. SRIKRISHNA, JJ.] 
B 
East Punjab Urban Rent Restriction Act 1949 : 
S. J 3(2)(iii)-Additions and alterations by "tenant materially impairing 
value of the premises"-Tenant of/and and building-Constructing permanent C 
structure on the land without permission of landlord-Held, the three courts 
below have correctly applied the true test and on facts found that the sheds 
constructed by tenant amounted to an act materially impairing the value 
and utility of the premisses-Order of eviction upheld. 
Om Prakash v. Amar Singh and Ors., [1987) 1 SCC 458; Om Pal v. 
Swarup, (1988) 4 SCC 545; Wa1yam Singh v. Ba/dev Singh, [2003) 1 SCC 
59; Gurbachan Singh and Anr. v. Shivalak Rubber Industries and Ors., 
[1996] 2 SCC 626 and Vipin Kumar v. Roshan Lal Anand and Ors., (1993) 
2 sec 614, referred to. 
CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) No. 
11001 of 2001. 
From the Judgment and Order dated 16.5.2001 of the Punjab and 
Haryana High Court in C.R. No. 5764 of 2000. 
S.M. Sarin and P.N. Puri for the Petitioner. 
Dr. A.M. Singhvi, M.A. Chinnasamy, Simran Mehta, Ms. Bamali 
Basak and Ms Shipra Ghose for the Respondents. 
The following Order of the Court was delivered : 
This is a desperate attempt on the part of the petitioner, who was 
unsuccessful throughout, to hold on to the premises of which he is the tenant. 
D 
E 
F 
G 
The petitioner is the tenant of land and building constructed upon a H 
203 
204 
SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R. 
A plot in Jalandhar. Sometime in the year 1967 the petitioner was inducted 
into the premises by a lease agreement dated 25.10.1967. The lease.agreement, 
inter alia, contained a clause which said, "that the lessees will not make any 
addition or alteration or change in the building during the period of tenancy". 
B 
c 
D 
E 
F 
The respondent-landlord moved a petition under section 13 of the East 
Punjab Urban Rent Restriction Act, 1949 seeking eviction of the petitioner-
tenant on two grounds, namely, (1) that the petitioner had not been paying 
the enhanced rent as per the terms of the agreement; and (2) that though the 
earlier the petitioner had made a temporary shed over the generator which 
was placed in the courtyard, the petitioner had now extended and made 
further construction of two pacca sheds without consent of the landlord in 
the courtyard and by constructing the sheds the petitioner had materially 
impaired the value and utility of he premises. 
The Rent Controller raised the following issues : 
1. 
2. 
3. 
4. 
5. 
Whether the respondent is in arrears of rent? 
Whether the respondent has made additions and alternations 
without the consent of the petitioner and has materially impaired 
the value and utility of the premises in question? 
Whether the petitioners are estopped from filing the present 
petition by their own act and conduct as alleged? 
Whether the petitioner are debarred from demanding the access 
rent? 
Relief." 
After trial of the application, the Rent Controller answered the first 
issue in favour of the petitioner, With regard to the 2nd issue, the Rent 
G Controller held that the constructions made were of such nature as to 
materially impair the value and utility of the premises and an act which 
would amount to a ground for eviction under section l 3(2)(iii) of the Act. 
The Rent Controller decided the third issue in the favour of the petitioner 
H and held that the previous litigation pertained to a temporary shed covering 
; ,_ 
BRITISH MOTOR CAR CO. v. M.L. SAGGI 
205 
the generator in which the finding had been that there was no material 
impairment of the value and utility of the premises. Although, the respondent-
landlord had attempt to evict the petitioner-tenant for this reason, he had 
failed throughout in the litigation right up to this Court. The Rent Controller 
took the view that this did not prevent the landlord from moving again on 
the fresh cause of action. 
The appellate authority under the Act, after careful re-appreciation of 
the evidence on record completely affirmed the findings recorded on the 
issues by the Rent Controller. The appellate authority also took the view that 
the sheds constructed by the tenant are of permanent nature which could not 
be removed without doing damage to the building in question as they were 
embedded in the floor and also in the side wall; that by constructing the 

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