The Bombay High Court has ruled that eviction proceedings under the Rent Act cannot be continued against a tenant who subsequently becomes a co-owner of the suit premises. Justice Rajesh S. Patil held that once a tenant acquires a share in the ownership of the property, they occupy a dual capacity, and the existing co-owners cannot proceed with eviction.
Background
The case originated from a Rent Act eviction suit filed against the applicant, Shri Krishnakumar K Ashar, on grounds including unauthorized construction, subletting, change of user, bona fide requirement, and arrears of rent. While the Trial Court initially dismissed the suit on June 30, 2009, the Appellate Bench subsequently set aside that order and ruled in favor of the landlords.
The applicant challenged the Appellate Court’s decree by filing a Civil Revision Application under Section 115 of the Civil Procedure Code (CPC) in 2014. During the pendency of this revision, a significant development occurred: on April 22, 2016, the applicant-tenant purchased a 50% share of the building from the legal heirs of one of the original plaintiffs (deceased plaintiff no. 2) via a conveyance deed.
Arguments of the Parties
The applicant, represented by Advocate Kailas Dewal, argued that by virtue of becoming a 50% owner of the suit premises, the eviction proceedings must terminate. He further pointed to a 1979 communication where the original plaintiff no. 2 had expressed a desire not to proceed against the tenant.
The respondent no. 2 (original plaintiff no. 1) supported this stance through Advocate Manoj P. Mhatre, stating that his client did not wish to continue the eviction proceedings and sought to withdraw the same.
Conversely, the contesting respondent, Mr. Clyde Archie Varel, opposed the withdrawal and the revision application. He cited the Supreme Court judgments in P. Anjanappa (D) by LRs. vs. A. P. Nanjundappa & Ors. and Alka Shrirang Chavan & Anr. vs. Hemchandra Rajaram Bhonsale & Ors. to support his position.
Court’s Analysis
Justice Rajesh S. Patil analyzed the maintainability of eviction suits involving multiple co-owners. Citing the Supreme Court in Mohinder Prasad Jain vs. Manohar Lal Jain (2006) and India Umbrella Mfg. Co. v. Bhagabandei Agarwalla (2004), the Court noted that while one co-owner can file a suit as an agent of others, the objection of a co-owner is a relevant fact.
The Court categorized three specific situations where eviction proceedings cannot proceed:
- When one of the joint co-owner plaintiffs decides not to proceed with the eviction.
- When a co-owner sells their share to a third party who then objects to the eviction.
- When the tenant themselves purchases a share of the ownership.
Regarding the dual capacity of the applicant, the Court observed:
“In the light of above analysis, in my judgment once a tenant also becomes a co-owner, he is in a dual capacity, that of the ownership to the extent of share purchased and tenancy to the extent of his tenancy agreement as on date. As soon as he purchases a part of ownership right, another co-owner can’t file or continue eviction proceedings under Rent Act against him qua the tenancy premises.”
The Court dismissed the authorities cited by the respondent, noting that they dealt with the validity of release deeds and the executability of specific performance decrees, which were not applicable to a landlord-tenant dispute where the tenant had acquired 50% ownership.
Decision
The High Court allowed the Civil Revision Application and quashed the Appellate Court’s judgment and decree. The original judgment of the Trial Court was confirmed.
Furthermore, the Court addressed the issue of market rent deposited by the tenant following the Supreme Court’s guidelines in Atmaram Properties vs. Federal Motors (2005). Noting that the applicant had succeeded in the revision and referring to a 2017 Supreme Court order in the same matter, the Court directed the Registry to refund approximately ₹60,00,000/- deposited by the applicant since 2017, along with accrued interest.
Case Details:
- Case Title: Shri Krishnakumar K Ashar Vs Archie John Varel & Others.
- Case No.: Civil Revision Application No. 752/2014
- Bench: Justice Rajesh S. Patil
- Date: April 7, 2026
