Bent to be tenant friendly Rent Control Acts operating in various states were enacted with a view to provide control of rents and evictions of tenants. The most contentious ground in rent control legislation has been the question of eviction on the grounds of bonafide requirement of the landlord. Earlier landlord wanting to evict the tenant of a commercial establishment could not avail of these eviction provisions, as the clause dealing with the eviction of a tenant for the bona fide use of the landlord limited its scope to only “residential premises”.  However, after Satyawati Sharma vs Union of India[1], SC acknowledged the need to use premises let-out for commercial purposes and striked down this discrimination.

The term “bona fide” is of a wide connotation pointing towards genuine and not a frivolous requirement of the landlord, without the intention of trying to recover possession from the tenant.

Difference between desire and requirement[2]

SC observed that requirement means when objectively seen there is a necessity with the party to require the premises for his use. It is not a sheer desire only whether a landlord may show his intention to occupy the premises.

Balance of Convenience/principle of comparative advantage or disadvantage[3]

Court has to take into account, while examining advantages and disadvantages of the respective parties, the interest of the individual for whose benefit the property and shop is held, (whether he being landlord or tenant) law leans in favor of the person to whom the greater inconvenience and hardship is caused. Also, would grant relief to the landlord only when his difficulties are likely to surpass the hardships which may be affected to the tenant.

SC in recent judicial decisions has held with regard to above principle that it is perfectly open to the landlord to choose more suitable premises (for carrying on business by son) and tenants[4] cannot dictate such needs.

The eviction process is a cumbersome for overseas citizens to carry out. It takes knowledgeable and experienced property lawyers to understand and resolve such issues of NRIs and overseas citizen.

Court has to take into account, while examining advantages and disadvantages of the respective parties, the interest of the individual for whose benefit the property and shop is held, (whether he being landlord or tenant) law leans in favor of the person to whom the greater inconvenience and hardship is caused. Also, would grant relief to the landlord only when his difficulties are likely to surpass the hardships which may be affected to the tenant.