Thursday, September 4, 2014

NRI landlord can not be asked to prove his title to get the tenant evicted, rules Supreme Court

A bench of Justice TS Thakur and Justice C Nagappan of Supreme Court of India in the case of 'Kamaljit Singh vs Sarabjit Singh' Civil Appeal No. 8410 of 2014 held on 2nd September 2014 that Non-resident Indians (NRIs) cannot be asked to prove ownership of their property to get their tenants evicted. 

In the case in hand, an NRI who was born and brought up in India had migrated to UK but decided to return to India in 2002 after spending 30 years in the UK with the intention of settling down and establishing a hotel at Phagwara his home town in Punjab. He had let out a shop in a building situated at Banga Road, Phagwara. The tenant refused to vacate the shop. The NRI filed an eviction petition under Section 13-B of the East Punjab Urban Land Restriction Act, 1949, stating that he was an NRI and needed the shop for his own use and was hence entitled to get it vacated. The rent controller dismissed his eviction petition on the ground that the NRI failed to prove his ownership over the premises for a period of five years before the filing of the eviction petition as mandated under the law. On appeal by the NRI, the Punjab & Haryana High Court also ruled against the NRI. The NRI then appealed to Supreme Court which allowed the plea of the NRI. The Court held that Section 13-B of the said Act is a beneficial provision intended to provide a speedy remedy to NRIs who return to their native places and need property let out by them for their own requirement or the requirement of those who are living with and economically dependent upon them. Their position cannot, therefore, be worse off than what it would have been if they were not NRIs. Once the tenant admits relationship of landlord and tenant between him and the NRI, the NRI landlord was not under any obligation to prove his title to the property. The court directed the tenant to vacate the premises by March 31, 2015, subject to the condition that he clears his rent arrears in six weeks and submits an undertaking in court that he would clear out by that date and if he fails to abide by these, the eviction decree can be executed right away.


Read the Full Judgment.