Full Judgment Text
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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.8233 OF 2010
[Arising out of SLP [C] No.16995 of 2009]
Jai Singh and Ors. .. Appellants
VERSUS
Municipal Corporation of Delhi ..Respondents
and Anr.
WITH
CIVIL APPEAL NO. 8234 OF 2010
[Arising out of SLP [C] No.1925 of 2008]
Municipal Corporation of Delhi .. Appellant
VERSUS
Sh. Jai Singh and Ors. ..Respondents
J U D G M E N T
SURINDER SINGH NIJJAR, J.
1. In this special leave petition, the petitioners have
challenged the judgment of the Delhi High Court in a
Writ petition under Article 227 of the Constitution of
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rd
India, CM (M) No.516 of 2007, dated 23 March, 2009,
whereby the High Court has quashed and set aside the
order passed by the Additional Rent Control Tribunal
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[“ARCT” for short] dated 12 March, 2001, upholding the
order passed by the Additional Rent Controller [“ARC” for
brevity].
2. Heard counsel. Leave granted.
The facts, as noticed by the High Court, are that the
appellants are claiming themselves to be the landlords in
respect of premises constructed on the plot of land No.2,
Block B, transport area of Jhandewalan Estate, Desh
Bandhu Gupta Road, Karol Bagh, New Delhi.
3. In the eviction petition, it was stated that the
premises were let out to respondent No.2, Delhi
Transport Corporation [for short “DTC”], on a monthly
rental of Rs.3500/-. DTC has sublet/assigned the
premises in favour of respondent No.1, Municipal
Corporation of Delhi [for short “MCD”] and parted with
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possession in favour of MCD without the written consent
of the appellants. Therefore, both DTC and MCD were
liable for eviction. The High Court has noticed the
sequence of events since the transport services were
being run by Gwalior Northern India Transport Company
(for short “GNIT”) to the time when DTC stepped into its
shoes. The appellants claimed that the tenancy of the
premises was with DTC. MCD had, however, claimed
that the legal possession was retained by MCD; rent was
being paid by MCD to DTC.
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4. The ARC by an order dated 11 November, 1989,
upon consideration of the rival contentions, held:
“19. Admittedly it is respondent No.2 (MCD)
who is in possession of the premises in
question. It is also admitted that respondent
No.2 (MCD) pays a sum of Rs.3500/- as rent to
respondent No.1 (DTC) by way of cheques. It
is not the case of the respondent that any
written consent of the petitioners was obtained
in this regard. Therefore, it has to be held that
respondent no.1 (DTC) has either sublet,
assigned or otherwise parted with the
possession of the tenanted premises illegally to
respondent No.2 (MCD). It is well settled that
in voluntarily (sic) transfers are also included
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with the meaning of sub-letting etc. in Section
14(1)(b) DRC Act.”.
5. The order passed by the ARC was upheld by the
ARCT with the following observations:
“15. After having heard up the matter in all its
possible aspects I do not find any infirmity or
illegality in the finding of the learned trial
court by holding that there exists relationship
of landlord and tenant between the parties and
since the exclusive possession of the premises
was handed over by the erstwhile tenant to the
Municipal Corporation of Delhi, i.e.,
respondent No.2 which is itself a separate and
independent legal entity, it amounts to sub-
letting.”
6. The High Court set aside the concurrent findings
recorded by the ARC and ARCT with the following
observations:
“The orders passed by learned ARC and the
learned ARCT categorically show that neither
the learned ARC nor learned ARCT has
devolved upon the facts of the case and nor
had even considered the concept of tenancy
and sub tenancy in this case in the peculiar
circumstances of this case.”
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7. The High Court held that this is not a case of sub-
letting as Delhi Transport Services (for short “DTS”),
Delhi Transport Undertaking (for short “DTU”), MCD and
DTC were the creation of statute. The premises had
come to them after it was acquired by Union of India
(UOI) from GNIT on nationalization of the business.
There was no parting with possession by DTC to MCD,
therefore, it was not sub-letting. The DTC was
incorporated in lieu of DTU as a separate company to
facilitate running of transport business. Mere payment
of Rs.3500/- per month by MCD to DTC does not show
sub-letting or parting with possession. Relying on a
judgment of this Court in Madras Bangalore Transport
Co. [West] Vs. Inder Singh & Ors. [AIR 1986 SC 1564],
the High Court has held that:
“In the case in hand, the situation, is much
better. The alleged original tenant GNIT stood
acquired by a Legislative Act and the premises
went to DTS. DTS was converted to DTU and
DTU was further converted into DTC. The
premises remained in occupation of the same
entity which changed its form from one to
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another. Thus it cannot be said that it was a
case of sub-letting under any circumstances.
The orders passed by learned ARC and learned
ARTC are liable to be set aside for non
application of law and non consideration of
facts at all.”
8. The objection raised by the appellants to the
entertainment of the petition under Article 227, on the
ground of laches, has been rejected with the following
observations:
“The respondent in this case has strongly
objected to entertaining the petition on the
ground of limitation. The petitioner has filed
this petition under Article 227 of the
Constitution of India. In exercise of this
power, interfering with the orders of the Court
of Tribunal has to be done where this Court
finds that there was a serious dereliction of
duty and blatant violation of the fundamental
principles of law and justice and where, the
order caused grave injustice and needs to be
corrected. Although the petitioner herein had
not been vigilant in prosecuting the appeal
below but that cannot prevent his Court from
correcting the patent illegality writ large on the
face of the orders of the ARC and Tribunal
below. Both the ARC and ARCT passed orders
without considering the facts of the case in a
very mechanical manner. Neither the learned
ARC nor learned ARCT had taken into account
the sequence of facts brought before them
regarding acquisition of the entire assets of
GNIT and conversion of DTS to DTU and then
to DTC by the Legislative Act and the order has
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been passed merely on the ground that
amount of Rs.3500/- was being remitted by
the MCD to DTC. The Courts below did not
even consider the issue as to who was the
tenant and how MCD became the sub-tenant
of respondent once the premises was owned by
Union of India and the leasehold rights of the
entire land vested in Union of India. This
Court can set aside the findings and the orders
of the Tribunal below if there was no evidence
at all to justify the findings and the findings
were perverse. The order can also be set aside
if no reasonable or prudent person can
possibly come to such a conclusion despite the
fact that the petition was not brought before
this Court by the petitioner soon after the
passing of the order. In Badlu and another Vs.
Shiv Charan and Others [(1980) 4 SCC 401],
Supreme Court observed that the delay caused
in prosecuting the case in bona fide and good
faith in wrong court due to mistake of law or
facts can be condoned, I, therefore, consider
that petition is not liable to be dismissed on
the ground of delay, nor learned ARCT was
justified in dismissing the application.
Learned ARCT went wrong in dismissing the
application of the petitioner for condonation of
delay. The order of learned ARCT on this
count also is liable to set aside. It is ordered
accordingly.”
9. Mr. Altaf Ahmad, learned senior counsel appearing
for the appellants submits :
1. The exercise of power under Article 227 of
the Constitution of India, by the High
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Court, in the peculiar facts of this case
was improper.
2. The petition was liable to be dismissed on
the ground of delay and laches alone.
3. Even otherwise, the High Court exceeded
its jurisdiction by acting as an appellate
court.
4. The High Court erroneously decided the
question of ownership of the premises
which was not even an issue in the
proceedings, under Article 227 of the
Constitution of India.
5. Even on facts, the findings are contrary to
the material on record.
10. On the other hand, Ms. Madhu Tewatia, learned
counsel appearing for the respondents submits that the
High Court was fully justified in exercising its jurisdiction
under Article 227 of the Constitution to correct the
patent, factual and legal errors committed by ARC and
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ARCT. She has emphasised the entire history of
transformation of GNIT into DTC. According to the
learned counsel, there was no landlord and tenant
relationship between the predecessor of the appellants
and GNIT. The payment of Rs.3500/- per month was a
misnomer. The plot vested in the Government under the
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agreement dated 23 April, 1948, therefore, GNIT was
incompetent to transfer any perpetual lease to Bharat
Singh. The amount of Rs.3500/- was being paid to
Bharat Singh as compensation for the amount spent by
him on behalf of GNIT for construction of the depot. She
further submits that the land vested in DDA, i.e.,
Government. Therefore, Rent Controller had no
jurisdiction. In any case, the appellants have failed to
prove that there has been any parting with possession,
without the written consent of the landlord. The ARC and
ARCT ignored vital documents in concluding that there
has been subletting by DTC to MCD. In fact, MCD has
retained the legal possession all along. The payment of
Rs.3500/- was only being routed through DTC, as a
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matter of convenience. On the question of delay and
laches, it is submitted that the High Court had converted
the RCSA to a petition under Article 227. The delay has
been condoned as the MCD had been bona fide pursuing
the wrong legal remedy. The High Court in a petition
under Article 227 of the Constitution of India had the
jurisdiction to undo the injustice caused to the MCD by
the orders of ARC and ARCT. In support of her
submissions, learned counsel relied on a number of
judgments of this Court, viz. , on subletting: Resham
Singh Vs. Raghbir Singh & Anr . [1999 (7) SCC 263];
Bharat Sales Ltd. Vs. Life Insurance Coropration of
India [1998 (3) SCC 1] and on jurisdiction of the High
Court under Article 227 of the Constitution of India,
Estralla Rubber Vs. Dass Estates (P) Ltd . 2001 (8)
SCC 97.
11. Mr. Ahmad, in reply submits that the sub-tenant
DTC, cannot be permitted to plead a case which even the
tenant could not have pleaded.
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12. We have anxiously considered the submissions of
the learned counsel.
13. Before we consider the factual and legal issues
involved herein, we may notice certain well recognized
principles governing the exercise of jurisdiction by the
High Court under Article 227 of the Constitution of India.
Undoubtedly the High Court, under this Article, has the
jurisdiction to ensure that all subordinate courts as well
as statutory or quasi judicial tribunals, exercise the
powers vested in them, within the bounds of their
authority. The High Court has the power and the
jurisdiction to ensure that they act in accordance with
well established principles of law. The High Court is
vested with the powers of superintendence and/or
judicial revision, even in matters where no revision or
appeal lies to the High Court. The jurisdiction under this
Article is, in some ways, wider than the power and
jurisdiction under Article 226 of the Constitution of
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India. It is, however, well to remember the well known
adage that greater the power, greater the care and
caution in exercise thereof. The High Court is, therefore,
expected to exercise such wide powers with great care,
caution and circumspection. The exercise of jurisdiction
must be within the well recognized constraints. It can not
be exercised like a ‘bull in a china shop’, to correct all
errors of judgment of a court, or tribunal, acting within
the limits of its jurisdiction. This correctional jurisdiction
can be exercised in cases where orders have been passed
in grave dereliction of duty or in flagrant abuse of
fundamental principles of law or justice. The High Court
cannot lightly or liberally act as an appellate court and
re-appreciate the evidence. Generally, it can not
substitute its own conclusions for the conclusions
reached by the courts below or the statutory/quasi
judicial tribunals. The power to re-appreciate evidence
would only be justified in rare and exceptional situations
where grave injustice would be done unless the High
Court interferes. The exercise of such discretionary power
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would depend on the peculiar facts of each case, with the
sole objective of ensuring that there is no miscarriage of
justice.
14. In our opinion, the High Court in this case, has
traveled beyond the limits of its jurisdiction under Article
227 of the Constitution. Both ARC and ARCT had acted
within the limits of the jurisdiction vested in them. The
conclusions reached cannot be said to be based on no
evidence. All relevant material has been taken into
consideration. Therefore, there was hardly any
justification for the High Court to undertake an
investigation into issues which did not even arise in the
lis.
15. The appellants had filed a simple eviction petition
before the ARC, under Section 14(1)(b) of Delhi Rent
Control Act, 1958 (in short “DRC Act”). They had stated
that DTC was their tenants in premises as the entire plot
No.2 with the construction thereon at Jhandewalan
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known as Karol Bagh Depot, as per plan attached.
Monthly rent was stated to be Rs.3500/-. It was claimed
that DTC has sublet the premises to MCD, without
permission of the landlord. Therefore, both DTC and
MCD were liable for eviction.
16. Both DTC and MCD took identical pleas. Their
defence was that the appellants are neither the owners
nor the landlords of the demised premises. They claimed
that Late Bharat Singh (LBS) had agreed to construct the
depot for and on behalf of GNIT. He was receiving
Rs.3500/- p.m. for the money spent on construction.
Therefore, the term rent is a misnomer. Allegations of
subletting were denied. The business of GNIT was
nationalized and taken over by the government vide
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agreement dated 23 April, 1948. The plot was mutated
in the name of Government of India. Thereafter, Delhi
Road Transport Corporation Act, 1950, was enforced.
Under this Act, Delhi Transport Services (DTS) was
established. From then the onward DTS was in
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occupation and started paying the rent of Rs.3500/- till
the enactment of DMC Act, 1957. Under this Act, the
transport service in Delhi was given to Delhi Transport
Undertaking (DTU), which was made a wing of MCD.
Since then MCD started releasing Rs.3500/- to LBS
through its wing, DTU. After the death of LBS, the
amount has been paid to the appellants, without any
objection. On passing of Delhi Road Transport Laws
(Amendment) Act, 1971, Delhi Transport Corporation,
came into existence as a statutory body. But the
possession of the demised premises remained with MCD.
As DTC had taken the place of DTU, the rent amount,
thereafter, was routed through DTC. Therefore, there was
no subletting. In any event, since the property vests in
Government of India, Delhi Rent Control Act would not
be applicable.
17. Taking into consideration the aforesaid claims of the
parties, the ARC concluded that there is no dispute with
regard to construction and ownership of the depot by
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LBS. The appellants are successors of LBS. The issues as
crystallized by the ARC are as follows:-
“(i) The tenant has sublet, assigned or
otherwise parted with possession.
(ii) It may be in respect of the whole or any
part of the premises.
(iii) Such subletting etc has taken place on or
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after the 9 day of June, 1952.
(iv) Such subletting etc has taken place
without obtaining the consent in writing
of the landlord.
(v) The first and the foremost ground that
requires to be seen is whether
relationship of landlord and tenant exist
between the petitioners and respondent
No.1 or not.”
Thereafter in Para 9 ARC observes :-
“Whether relationship of landlord and tenant
was contemplated or not is the most important
fact which has to be seen.”
18. Thereafter, ARC proceeds to consider the implications
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of the agreement dated 10 November, 1944, wherein
LBS agreed to develop the plot of land. He is referred
to as the prospective purchaser. The lease with GNIT
was provided for, LBS was to pay all taxes. GNIT had
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to pay 10% p.a. of the entire cost of the building.
GNIT were to execute a ten year lease. Rent of
Rs.3500/- was regularly paid. The ARC noticed that
Government of India had moved the Rent Controller,
New Delhi for fixation of fair rent in June, 1950. The
Rent Controller, after conducting an enquiry had fixed
the agreed rent as the fair rent. An appeal against the
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order of Rent Controller, New Delhi dated 26
December, 1950 was dismissed by the learned District
Judge at Delhi by an order dated 3.5.1951. Not only
this, ARC notices that during the course of present
proceedings, rent was deposited in court for the period
1.4.93 to 30.11.93, by DTC. Therefore, they can not
now be permitted to say that MCD is the tenant, in
possession. In such circumstances, the ARC held that
DTC has sublet the premises to MCD.
19. Thereafter, MCD challenged the aforesaid order
before the ARCT in RCA No.9 of 2001. The aforesaid
appeal was beyond limitation by 431 days. It
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appears that even though the ARCT did not find any
substance in the reasons given by the MCD for
seeking condonation of delay, the appeal was still
considered on merits. ARCT discussed at length the
negligent attitude of the MCD in pursuing the
proceedings in the court of ARC. Ultimately, the
ARC was left with no alternative but to proceed
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against the MCD ex-parte on 25 of August, 1999.
It was observed by the ARCT that the delay was
wholly unjustified as well as wholly unexplained.
We may notice the observations made by the ARCT
which are as follows:
“Now, looking to the appellant’s stand through
another angle, I find that the appellant and
respondent/DTC are both governmental
organization and it does not stand to mind
that respondent/DTC or its representative
would not intimate the appellant/MCD about
its not being represented to some advocate or
about its having been proceeded ex-parte. The
case was admittedly on last state and it
appears that the appellant took chance and
stayed out of the scene and has now come up
with this hopelessly delayed appeal with a cock
and bull story which does not seem to be any
way bonafide, reasonable and acceptable to
mind. Strangely enough, the appellant even
did not disclose in the application as to on
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which date or month, the court bailiff had gone
to the demises premises, and this lengthy
delay of about 431 days (or 393 days after
excluding the time taken in obtaining the
certified copies) has remained completely
unexplained. The application for seeking
condonation of delay, thus, is found to be
without any sufficient or reasonable ground
and needs to be dismissed. Order as such with
the dismissal of the appellant is application for
condonation of delay – this appeal meets the
same fate.”
Having observed as such, the ARCT considered
the appeal on merits on the assumption that the
application of MCD for condonation of delay has been
allowed, though it had not been allowed. The ARCT
thereafter considered the entire gamut of facts and
circumstances in detail. The ARCT noticed the
submissions made by the learned counsel for the MCD
and considered each submission in detail.
20. It was submitted that ARC had failed to distinguish
the three expressions: sublet, assigned and otherwise
parted with possession. This was answered as follows:
“I feel that the submissions made by learned
counsel Sh.Chachra do not gather any support
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from the records because the learned ARC has
dealt with insufficient details of the needed
requirements and it was only thereafter that he
came to a conclusion of the respondent/DTC
having sublet, assigned or otherwise parted with
the possession of the demised premises in
favour of this appellant. For attracting the
applicability of a ground of eviction u/s 14(1)(b)
of the Act, it has either to be direct
circumstance of subletting which ordinarily may
not be possible to be detected since it is, in most
cases, a secret deal between the tenant and the
alleged sub-tenant or it is the assignment where
under the tenant has to divest himself of all the
rights that he had as a tenant or parting with
possession which circumstances postulates the
parting with legal possession also i.e. the tenant
surrenders his legal right of are-entry to the
premises. This mischief of Section 14(1)(b) of
the Act is complete if any of the three
expressions gets established. It is certainly no
necessary and nor has it been so held by any of
the pronouncements of any superior courts that
pleadings on this aspect must state in specific
terms that it either sublet or assignment or
parting with possession. In case a party
succeeds in establishing the first expression
sublet the to my mind. It goes to establish that
even the other two expressions assignment and
parting with possession stand proved because
the moment a tenant indulge a third person as
his tenant (sub-tenant) qua the demised
premises-he (tenant) squarely assigns and also
parts with possession in both ways as he divests
himself of all the rights as he had as a tenant
and part with possession to delivering and only
physical possession but also fully surrendering
his legal possession over the tenanted premises.
The impugned judgment did discuss evidence
with a clear angle that the appellant had been
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parting rent of Rs.3,500/- per month to
respondent / DTC every month. The
respondent DTC was admittedly not in
possession any way of the demised premises as
the appellant’s own stand on this point is
admittedly the same. In case, the first
expression sublet has been established, almost
in an admitted style, through various acts
admitted documents and stands taken in
various court proceedings, the other two
expressions would also go hand in hand and the
Ld. ARC was not any way required to state as to
under which of the three expressions, parties
case felt Evidence or specific admissions
through deeds and conduct find duly discussed
through various admitted or proved documents
and these negates the plea of the appellant that
the evidence had not been discussed by the Ld.
Trial Court. I feel the impugned judgment
carries all these necessary details and these
need not be repeated here any further.”
ARCT thereafter considered in detail the
relationship of landlord and tenant between LBS and
various statutory entities, in succession. The
transformation of GNIT, through DTS to DTC was duly
noticed, and dilated upon. It was noticed that DTC
which was a government undertaking, was a successor in
interest of a private transport company. It was further
noticed that the “land underneath the superstructure /
the demised premises might or might not belong to the
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government and the superstructure was built around
May, 1948 by predecessor-in-interest of respondents 1
to 3 and an amount of Rs.3,500/- per month was agreed
to be paid being a fair return against the investment
made towards construction of superstructure”. The
submission that Rs.3,500/- per month was paid as
compensation for construction of the superstructure was
considered and rejected with the observations :-
“The submission of appellant’s Ld. Counsel
that the amount was agreed to be paid only
with a vie to compensate the predecessor-in-
interest of respondents 1 to 3 and was not the
rental of the super-structure does not seem to
be carrying any weight and to my mind this
submission cannot stand because the
moment, we speak of compensation – it
indicates to some specific amount of a specific
period by which the liability would be deemed
to have been discharged. It never means a
flowing steam of payments to continue till
infinity. It has got to be the rental only and it
was also to understand, taken and acted upon
by the parties as is clearly and unambiguously
indicated from the admitted stand of
respondent/DTC. The respondent / DTC had
in its written statement admitted this amount
as rent though at other point it denied it being
so. Really, respondent / DTC could not
suppress the truth and at times, it honestly
leaned towards it and described this sum of
Rs.3,500/- as monthly rental. Paras(a), (f) and
(k) of brief facts of the written statement of
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respondent/DTC clearly reflect the above
stand. In para (e), the words used are and
would give it on rental basis to GNIT. The
words used in para (f) are that Sh. Bharat
Singh constructed a depot on plot No. 2 and
rented out the same structure to GNIT at a
monthly rental of Rs.3,500/-. Para (k) states…
and the GNIT company continued paying a
rent of Rs.3,500/- per month to Sh. Bharat
Singh for the amount he had invested on the
super-structure and also for the amount he
had financed to GNIT company. These terms
are no misnomers and actually they pump out
the real intent of the parties under which
respondent / DTC started making payments of
monthly rentals to respondents 1 to 3 their
predecessor-in-interest”.
21. We have been constrained to make elaborate
reference to the orders of ARC and ARCT only to
demonstrate that High Court was not justified in
observing that there has been ‘serious dereliction of duty’
or that there has been ‘blatant violation of the
fundamental principles of law and justice’ by the ARC
and ARCT. We also cannot accept the observations of the
High Court that both ARC and ARCT have considered the
facts in a very mechanical way, or that the orders passed
by ARC and ARCT exhibited any patent illegality writ
large on the face of the orders. We also do not agree that
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the ARC and ARCT ignored the sequence of events
through which GNIT was substituted by DTC. The entire
sequence of metamorphosis of GNIT into DTC have been
elaborately explained and dilated upon.
22. We are of the considered opinion that the High
Court ought not to have exercised the extra ordinary
jurisdiction under Article 227 of the Constitution in the
peculiar circumstances of this case. We may briefly
indicate the reasons for saying so:-
(i) Initially the appellants filed a petition for
eviction against DTC and MCD. They had
clarified that MCD has been impleaded only to
avoid multiplicity of proceedings.
(ii) Decree of eviction was passed. DTC lost in
appeal, lost in RCSA in the High Court.
However, the High Court clarified it shall have
no bearing on the appeal filed by MCD. The
order dated 31/01/2001, passed by the High
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Court in CM (M) No.31 of 2001 reads as
under:-
“There is a concurrent findings of facts and law
against the petitioner. It is not for this Court to
substantiate for judgment over the judgment of
the Court below through the proceedings
under Article 227 of the Constitution of India.
Dismissed.
I am informed that the MCD has challenged
the impugned order before the Rent Control
Tribunal. Dismissal of this petition shall have
no bearing on the determination of the Appeal
filed by the MCD. ”
Following the aforesaid order, RCSA No: 17/2001 &
CMs 74-75/2001 filed by the MCD was also
dismissed vide order dated 03/09/2004, with the
following observations:-
“It appears that the order of the Additional
Rent Controller was challenged before the
Tribunal, which order has been adjudicated
upon by other bench of this court which
uphold the order of the Additional Rent
Controller. In view of the matter, I see no
reason to entertain this appeal. SAO 17/2001
is accordingly dismissed.”
In our opinion the aforesaid order was
unexceptional since the pleas taken by the DTC and
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MCD before the Additional Rent Controller were
identical. Therefore, it was in fitness of things that
the subsequent coordinate bench also dismissed the
appeal filed by MCD. The aforesaid order was
however recalled without any justification with the
following observations:-
“Heard counsel for the parties and have gone
through the order dated September 03, 2004
as also January 30, 2001. It appears to me
that while disposing of RCSA 17/2001
reference has been made purely CM(M)
31/2001. What escaped notice was that the
order dated January 30, 2001 in CM(M) would
have no bearing on the determination of the
appeal by the Municipal Corporation of Delhi.”
Thereafter MCD, moved CM 4639/2007 with the
prayer that the appeal be treated as a petition under
Article 227 of the Constitution of India as the appeal
is not maintainable. The application was disposed
off by the following order dated 30/3/2007:-
“Counsel for the appellant has moved CM
No: 4639/2007 praying that this appeal be
treated as a petition under Article 227 of the
Constitution of India as the appeal is not
maintainable. He further submits that the
appellant should file a fresh petition under
Article 227 of the Constitution of India or
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under any other law if the same is permissible
under law. On instruction from the respondent
who is present in Court, counsel will not
proceed with the execution petition for a period
of 15 days from today. Subject to this
condition as prayed by counsel for the
appellant RCSA 17/01 is dismissed as
withdrawn.
CM 4639/07 also stands disposed off.”
A perusal of the aforesaid order clearly shows that the
application was disposed off on the statement made by
the learned counsel for MCD that the appellant (MCD)
should file a fresh petition under Article 227 of the
Constitution of India if the same is permissible under
law. (emphasis supplied)
Therefore, the aforesaid order cannot be treated as an
order passed by the High Court permitting MCD to file a
petition under Article 227 of the Constitution of India.
However using the aforesaid order of the High Court as
an excuse, MCD filed the petition under Article 227 of the
Constitution of India on 09/04/2007, being CM (Main)
No. 57/2007, challenging the order which was passed by
the ARC dated 11/11/1989 and the order passed by
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ARCT dated 12/3/2001. At this stage, in our opinion, the
High Court failed to bestow proper attention to the
objections taken by the appellants to the maintainability
of the writ petition on the ground of delay and laches.
Proceedings under Article 227 can be initiated in the
absence of the availability of an alternative efficacious
remedy. In the present case, MCD had consciously
withdrawn RCSA which had been filed under Section
39(1) of the Delhi Rent Control Act. The appeal had been
filed against the order of the ARCT dated 12.3.2001.
However, the objection on the ground of delay and laches
was brushed aside by the High Court on two wholly
untenable grounds, i.e:-
(i) The orders passed by the ARC and ARCT
suffered from patent illegality on the face of the
orders.
(ii) The MCD was bona fide prosecuting a case in
the wrong court, due to mistake of law.
29
23. We are of the opinion that the High Court
committed a patent error of jurisdiction in entertaining
the writ petition under Article 227 of the Constitution
which was unconscionably belated. Both reasons stated
by the High Court in support of its conclusions, are
contrary to the facts on the record.
It must be remembered that in these proceedings,
the pleas raised by the DTC and MCD before the ARC as
well as the ARCT were identical. The order passed by the
ARCT has been upheld by a coordinate bench of the High
Court. The RCSA No: 17/2001 filed by MCD on identical
grounds was thus dismissed by a subsequent coordinate
bench. That was indeed in conformity with the high
traditions, procedures and practices established by the
courts to maintain judicial discipline and decorum. The
underlying principle being, to avoid conflicting views
taken by coordinate benches of the same court. Except
in compelling circumstances, such as where the order of
the earlier bench can be said to be per incurium, in that
30
it is passed in ignorance of an earlier binding precedent/
statutory or constitutional provision, the subsequent
bench would follow the earlier coordinate bench.
24. It appears that the entire proceedings adopted by
MCD after the dismissal of the RCSA – CM(M) No.31 of
2001, on 31.1.2001 were a subterfuge to avoid the
execution proceedings in a decree which had become
final between the parties. In the application seeking
conversion of RCSA No: 17/2001 to a petition under
Article 227 of the Constitution of India, it was
categorically stated by MCD that the aforesaid RCSA was
not maintainable. The aforesaid statement is a clear
admission that the appeal filed by the MCD did not
involve a substantial question of law. It is apparent from
the fact that under Section 39(1) of the DRC Act subject
to the provisions of sub-section (2), an appeal lies to the
High Court from an order made by the ARCT. Sub-
section (2) provides as under :-
31
“No appeal shall lie under sub-section (1),
unless the appeal involves some substantial
question of law.”
Having made an admission that no substantial
question of law was raised in the RCSA, withdrawal of
the same could not possibly have been used as a
justification for filing a petition under Article 227 of the
Constitution of India. If the RCSA was devoid of any
substantial question of law, the petition under
Article 227, based on the same facts, would be equally
devoid of any substantial question of law. This categoric
admission of the MCD was ignored by the High Court
whilst recording the finding that the orders of ARC and
ARCT were passed “in blatant violation of fundamental
principles of law and justice.” This apart in the peculiar
facts of this case, noticed above, it could not be held that
MCD had been bona fide prosecuting a case in the wrong
court. It was seeking a remedy provided under
Section 39(1) of DRC Act. Even this appeal was filed
beyond limitation. It was delayed by 431 days. In the
meantime possession of a part of the premises had
32
already been taken by the appellants. Inspite of the
objections having been raised to the maintainability of a
writ petition under Article 227 of the Constitution of
India, they were rejected by the High Court with the
observations noticed in the earlier part of the judgment.
In such circumstances, in our opinion, it was wholly
inappropriate for the High Court to entertain the writ
petition under Article 227 of the Constitution of India.
25. Undoubtedly, the High Court has the power to
reach injustice whenever, wherever found. The scope and
ambit of Article 227 of the Constitution of India had been
discussed in the case of The Estralla Rubber Vs. Dass
Estate (P) Ltd., [(2001) 8 SCC 97] wherein it was
observed as follows :
“The scope and ambit of exercise of power and
jurisdiction by a High Court under Article 227
of the Constitution of India is examined and
explained in a number of decisions of this
Court. The exercise of power under this article
involves a duty on the High Court to keep
inferior courts and tribunals within the
bounds of their authority and to see that they
do the duty expected or required of them in a
legal manner. The High Court is not vested
33
with any unlimited prerogative to correct all
kinds of hardship or wrong decisions made
within the limits of the jurisdiction of the
subordinate courts or tribunals. Exercise of
this power and interfering with the orders of
the courts or tribunals is restricted to cases of
serious dereliction of duty and flagrant
violation of fundamental principles of law or
justice, where if the High Court does not
interfere, a grave injustice remains
uncorrected. It is also well settled that the
High Court while acting under this article
cannot exercise its power as an appellate court
or substitute its own judgment in place of that
of the subordinate court to correct an error,
which is not apparent on the face of the
record. The High Court can set aside or ignore
the findings of facts of an inferior court or
tribunal, if there is no evidence at all to justify
or the finding is so perverse, that no
reasonable person can possibly come to such a
conclusion, which the court or tribunal has
come to.”
In our opinion, the High Court committed a serious
error of jurisdiction in entertaining the writ petition filed
by MCD under Article 227 of the Constitution of India in
the peculiar circumstances of this case. The decision to
exercise jurisdiction had to be taken in accordance with
the accepted norms of care, caution, circumspection. The
issue herein only related to a tenancy and subletting.
There was no lis relating to the ownership of the land on
34
which the superstructure or the demised premises had
been constructed. The whole issue of ownership of plot of
land No:2, Block-B, transport area of Jhandewalan
Estate, Desh Bandhu Gupta Road, Karol Bagh, New
Delhi is the subject matter of a civil suit being Suit No:
361 of 1980 in the High Court of Delhi. The High Court,
therefore, ought not to have given any opinion on the
question of ownership.
26. We are of the opinion the High Court traveled
beyond the well defined contours of its jurisdiction under
Article 227 of the Constitution of India.
27. We, therefore, allow this appeal and set aside the
impugned judgment and order.
Civil Appeal No. 8234 of 2010 @ Special Leave
Petition (C) No.1925 of 2008 :
1. Leave granted.
2. In view of the judgment in Civil Appeal No.8233 of
2010 @ SLP (C) No. 16995 of 2009, this appeal becomes
infructuous and is dismissed as such.
35
……………………………..J.
[B.Sudershan Reddy]
……………………………..J.
[Surinder Singh Nijjar]
New Delhi;
September 23, 2010.