- (1.) BY these petitions under Art 226 of the Constitution, the Life Insurance Corporation of India seeks that the orders dated 12th of June, 1970, passed by the State Government, dated 19th of Novem ber, 1969, passed by the Commissioner, Allahabad Division Allahabad and the Gov ernment Order No. 6324E/XXXVII-202-63 dated 3rd December, 1965 be quashed.
(2.) BRIEFLY stated the facts leading to two petitions are that the petitioner Life In surance Corporation of India is a tenant in premises No. 40, Mahatma Gandhi Marg, Allahabad at monthly rent of Rs. 333.67 and is carrying on the Life Insurance business therein. Respondent No. 5, Sri K. S. Gandhi, is the landlord. The plot of land on which premises No. 40, Mahatma Gandhi Marg stands was held on lease by Sri K. S. Gandhi. Period of that lease has since expired. The State Government issued Government Order No. 6324-H/XXXVII-202-63, dated 3rd of December, 1965 laying down the principles for renewal of such leases. It provided that the persons wishing to get these leases renew ed have to pay certain premium over and above annual rent. For this purpose the Government order classified land into two classes i. e. land used for commercial pur pose and that used for non-commercial pur pose. Rate of premium and annual rent pay able in respect of land used for the com mercial purposes is much higher than that for the land used for non-commercial pur poses. It was considered that the plot, on which premises No. 40, Mahatma Gandhi Marg stands, was being used for commercial purposes. Accordingly, for getting the lease of that plot renewed Sri Gandhi was asked to pay a premium of Rs. 1, 31, 321.25 P. and rent at the rate of Rs. 964 per acre per annum. If, however, the plot was being used for non-commercial purposes, corres ponding premium and annual rent would have been Rs. 23, 950.32 and Rs. 100.00 per acre per year only. Sri Gandhi accordingly made an application under Section 3 of the U. P. (Temporary) Control of Rent and Evic tion Act, 1947 seeking permission to file a suit for the ejectment of the petitioner so that the disputed_ accommodation may be let out for residential purposes and he may not be forced to pay an additional Premium of Rs. 1, 07, 370.93 P. and the additional ground rent at the rate of Rs. 864 per acre per annum. The Rent Control and Eviction Officer, by his order dated 27th August, 1968 rejected the application for permission. He observed that in this case Sri Gandhi did not require the accommodation in dispute for his own use and occupation. The main rea son why he sought permission was that he wanted to reduce his liability in respect of payment of premium and ground rent. The Life Insurance Corporation had been in oc cupation of the accommodation for last many years and great hardship and inconvenience would be caused to the public and policy-holders in case it was evicted from the premises in dispute. In the circumstances, he was not satisfied that the need of Shri Gandhi was either convincing or justified. According ly, he rejected the application of Shri Gandhi.
(3.) IN revision, the Commissioner Allahabad Division observed that the Rent Control and Eviction Officer had based his decision on the basis that the landlord did not require the accommodation for personal occupation. However, he omitted to consider the effect of the present occupation of the premises in dispute, by the Life Insurance Corporation. He concluded that so far as the landlord is concerned the effect of con verting the accommodation into residential accommodation would be to put it to more profitable use. The Life Insurance Corpora tion was financially in a position to construct not only an office for itself but to have a building where many more offices could be housed. Any change in the location of the L. I. C. Office could not, in his opinion, cause inconvenience to public or the policy- holders. In the result, he found that the need of the landlord was more pressing than that of the tenant. Accordingly, he allowed the revision, set aside the order passed by the Rent Control and Eviction Officer dated 27th of August, 1962 and granted the permission sought for by Sri Gandhi.;