Can tenant be evicted after buying a share of property? Bombay High Court delivers key ‘dual capacity’ ruling

“Once a tenant also becomes a co-owner, he is in a dual capacity, that of the ownership to the extent of the share purchased and tenancy to the extent of his tenancy agreement as of the date. As soon as he purchases a part of the ownership right, another co-owner can’t file or continue eviction proceedings under the Rent Act against him qua the tenancy premises,” the order read.

Tenant turned co-owner

The Bombay High Court analysed several situations to clarify the position of the owner, co-owner, and a tenant who became a co-owner at a later stage:

• Where both the co-owners have jointly filed a case against a tenant, however, for any reason, if one co-owner says that he does not wish to proceed with the eviction proceedings at any stage, then the eviction proceedings cannot be continued against the tenant.
• Where two co-owners have jointly filed an eviction case against a tenant and subsequently one of the owners sells his share to a third party, who is not the tenant, and the third party decides not to proceed with the eviction proceedings against the tenant, the eviction proceedings cannot be proceeded with further against the tenant.
• Where there are two co-owners and the 50 per cent share of one of the owners at any stage of the eviction proceedings is purchased by the said tenant, the eviction proceedings cannot be proceeded against the said tenant. The Bombay High Court clarified that in such a situation, the tenant becomes a 50 per cent owner, and on the other hand, his tenancy continues.

• The high court pointed out that even if one of the co-owners’ shares is purchased by the tenant and the said tenant, now a co-owner out of many, decides not to proceed with the eviction proceeding, then the eviction proceedings cannot be proceeded with further at whichever stage it may be.
• If a sitting tenant solely purchases the entire ownership right of the tenanted premises by way of registered conveyance, he becomes the absolute owner and his tenancy rights qua the premises get converted into a superior right, that of ownership.
• The Bombay High Court noted that the case deals with a situation where there is a landlord-tenant dispute, and during the pendency of the proceedings, the tenant has purchased a 50 per cent share of the land.
• The court upheld the judgment and decree passed by the trial court and quashed the order of the appellate court.

Tenant purchased co-ownership in 2016

It was placed on record that previously, the original two co-owners (landlords) filed a case of eviction against the tenant in the trial court, which was dismissed by a June 2009 order. Aggrieved by the same, the said landlords filed an appeal. However, one of the landlords died during the pendency of the appeal.

Subsequently, the appellate court reversed the decision and allowed eviction in May 2014. Aggrieved by this order, the tenant challenged this order before the Bombay High Court the same year.

However, it was noted that during the pendency of the case in April 2016, the tenant purchased 50 per cent ownership of the property from the legal heir of the landlord who died during the pendency of the appeal.

At the same time, one of the original co-owners also expressed that he did not want to continue the eviction proceedings.

The Bombay High Court, thus, was in a unique position to give a verdict in a case where the tenant was both a tenant and a co-owner, enjoying a dual status.