| ture | 1<br>REPORTABLE<br>IN THE SUPREME COURT OF INDIA<br>CIVIL APPELLATE JURISDICTION<br>CIVIL APPEAL NOS. 3467-3468 OF 2010<br>SMT.NOORUNISSA BEGUM … APPELLANT<br>VERSUS<br>BRIJ KISHORE SANGHI … RESPONDENT<br>WITH<br>CIVIL APPEAL NO.3471 OF 2010,<br>CIVIL APPEAL NO.3472 OF 2010,<br>CIVIL APPEAL NO.3473 OF 2010,<br>CIVIL APPEAL NOs.3474-3475 OF 2010,<br>CIVIL APPEAL NO.3476 OF 2010,<br>CIVIL APPEAL NOs.7825-7826 OF 2012,<br>CIVIL APPEAL NO.2569 OF 2013,<br>C.A.NO. 2406 OF 2015<br>[@ SLP (C)NO.16508 OF 2012],<br>C.A.NOS. 2403-2405 OF 2015<br>[@ SLP (C)NOS.15230-15232 OF 2012],<br>C.A.NO. 2407 OF 2015<br>[@ SLP (C)NO.35787 OF 2012] AND<br>C.A.NOS. 2408-2409 OF 2015<br>[@ SLP (C)NOS.15154-15155 OF 2014]<br>J U D G M E N T<br>Not Verified<br>SUDHANSU JYOTI MUKHOPADHAYA,J<br>igned by<br>hi Kohli<br>5.02.27<br>IST<br>Leave granted.<br>2. All these appeals involves common question of law as to the<br>applicability of Section 32(c) of the Andhra Pradesh Buildings |
|---|
| lly s<br>aks<br>201<br>:38<br>on: | |
2
(Lease, Rent & Eviction) Control (Amendment) Act, 2005
(hereinafter referred to as the ‘Amendment Act, 2005’) to
eviction cases pending on the date of its coming into force and
th
the effect of the said Section on G.O. dated 29 December, 1983
issued by the Government of Andhra Pradesh. Therefore they were
heard together and being disposed of by this common judgment.
3 . The background of Section 32 of Andhra Pradesh Buildings
(Lease, Rent & Eviction) Control Act, 1960 (Act No. XV of 1960):
st
The State of Andhra Pradesh came into existence on 1
October, 1953 under the provisions of Andhra State Act, 1953. By
virtue of the provisions of the said Act, the Madras Buildings
(Lease and Rent Control) Act, 1949 continued to be in operation
in the State of Andhra Pradesh. By the States Reorganisation
Act, 1956 with the merger of Telangana area, which formerly
formed a part of the erstwhile State of Hyderabad, to the
territories of State of Andhra Pradesh the new State of Andhra
st
Pradesh came into existence by Notification dated 1 November,
1956. By virtue of States Reorganisation Act, Hyderabad House
(Rent, Eviction and Lease) Control Act, 1954 continued to be in
force in the Telangana area. In the Andhra area, the Madras
Buildings (Lease and Rent Control) Act, 1949 also continued to
be in force. In this background both the Madras Act and
Hyderabad Act were repealed and replaced by the Andhra Pradesh
Buildings (Lease, Rent and Eviction) Control Act, 1960
3
(hereinafter referred to as the ‘Act’). The Section 32 of the
Act, as it stood on the date of enactment exempted buildings
owned by the Government and buildings constructed on and after
th
26 August, 1957 from the purview of the Act.
. The constitutional validity of Section 32(b) of the Act
4
th
which exempted buildings constructed on or after 26 August,
1957 from the operation of the Act was challenged before this
Court in Motor General Traders and another vs. State of Andhra
This Court by judgment
Pradesh and others, (1984) 1 SCC 222.
th
dated 26 October, 1983 held the said section to be
unconstitutional being violative of Article 14 of the
Constitution of India.
5 . Section 26 of the Act authorizes the State Government to
exempt any building or class of building from all or any of the
provisions of the Act.
Later, in exercise of power under Section 26 of the Act the
th
Government of Andhra Pradesh issued G.O.Ms. No.636 dated 29
December, 1983 whereby it exempted from operation of the
provisions of the Act, (a) all buildings for a period of 10
years from the date on which the construction is completed, and
(b)buildings, the monthly rent of which exceeds Rs.1,000/-.
th
The exemption was given effect from 26 October, 1983 i.e.
the date on which this Court struck down Section 32(b) of the
Act.
4
. After declaration of Section 32(b) unconstitutional and
6
invalid, Section 32 (a) which exempted buildings owned by the
Government from the operation of the Act stood till Section 32
was amended by the Amendment Act, 2005. By amended Section 32,
the Act was made inapplicable to buildings the rent of which as
on the date of commencement of the Amendment Act, 2005, exceeds
Rs.3,500/- per month in the areas covered by the Municipal
Corporations in the State and Rs.2,000/- per month in other
areas.
. All the buildings with respect to which these appeals are
7
preferred belong to the category of buildings of which rent was
more than Rs.1,000/-(one thousand).i.e. who were exempted by
th
G.O.Ms.No.636 dated 29 December, 1983. On the amendment of
Section 32 the tenants of such buildings against whom eviction
cases or appeal or revision or execution cases were pending
before various courts approached the Andhra Pradesh High Court
raised a contention before the learned Single Judge that in view
of the amended Section 32, the pending suits cannot be
adjudicated by the civil courts and the decrees already passed
cannot be executed because courts which passed the decrees will
be deemed to have become “ coram non judice”.
8 . The learned Single Judge of the High Court referred the
matter to the Division Bench.
5
The Division Bench noticed the judgments in
Shah Bhojraj
Kuverji Oil Mills and Ginning Factory vs. Subhash Chandra Yograj
Sinha, AIR 1961 SC 1596; Rafeequnnesa vs. Lal Bahadur Chetri,
AIR 1964 SC 1511; Dilip vs. Mohd. Azizul Haq & Anr., AIR 2000 SC
and other cases including unreported judgment of Full Bench
1976
th
of the said High Court in Second Appeal No.532 of 2002 dated 6
January,2005 and felt that the issue raised in the cases needs to
be addressed by a Full Bench and accordingly referred the matter
to Full Bench.
. The Full Bench, after hearing the cases at some length, by
9
an elaborate order, observed that the judgment rendered by a
Bench of equal strength in Second Appeal No.532 of 2002 requires
reconsideration by a Larger Bench in the light of various
judgments referred to in the reference order.
. On such reference, the matter was heard by the Larger Bench
10
of 5-Judge of the High Court of Judicature of Andhra Pradesh at
th
Hyderabad. By the impugned common judgment dated 30 April, 2007
in S.A.No.1475, 1449 of 2005 etc., the Larger Bench by majority
held the Amendment Act, 2005 to be prospective and observed that:
”A reading of the amended Section 32 makes it
clear that Section 32(b) as it originally stood
has been substituted with Section 32(c) and with
this, G.O.Ms.No.636 dated 29.12.1983 issued by
the State Government under Section 26 of the Act
has become redundant.”
6
The Larger Bench further answered the reference as follows:
“(a) Section 32(c)of the Andhra Pradesh
Buildings (Lease, Rent and Eviction) Control
Act, 1960 as brought into force by Section 3
of the Andhra Pradesh Buildings (Lease, Rent
and Eviction) Control (Amendment) Act, 2005
is prospective in operation and this
provision does not affect the proceedings
pending as on the date of its coming into
force before the Civil Courts or Appellate,
Revisional or Executing Courts. These cases
are required to be decided without reference
to and application of the provisions of the
amendment Act of 2005.”
. In his minority judgment, one of the Judges held the
11
Amended Section to be retrospective and answered the reference
as follows:
“i) with effect from28.05.2005, when the amended
Section 32(c) came into force, persons, by
whom rent payable for a building does not
exceed Rs.3,500/-p.m. within the Municipal
Corporations of the State and does not exceed
Rs.2,000/- p.m. in other areas, would come
within the definition of “tenant” under
Section 2(ix) of Act 15 of 1960.
ii) even if such persons have suffered a decree
for eviction prior thereto, they are entitled
for the protection of Act 15 of 1960 provided
they continue in possession of the building.
iii)
after 28.05.2005, such tenants cannot be
evicted in execution of a decree in view of
the protection conferred on them by Section
10(1) of Act 15 of 1960.
7
iv) after the amended Section 32(c)came into
force, with effect from 28.05.2005, the civil
court must be held to have become coram non
judice, not to have jurisdiction to pass a
decree of eviction in respect of buildings
the rent of which in areas within Municipal
Corporations of the State does not exceed
Rs.3,500/- p.m. and in other areas not
exceeding Rs.2,000/- p.m. and its
proceedings, resulting in the decree, a
nullity.
v) even if at the time of institution of the
suit, or when a decree for eviction was
passed, the amended Section 32(c) was not in
force, but was introduced during the pendency
of the appeal a tenant, who continues to
remain in possession of a building whose rent
is below the limits prescribed in the amended
Section 32(c), for being exempted from the
provisions of the Act, is entitled for the
protection of Act 15 of 1960, more
particularly Section 10(1) thereof, and the
Appellate Court is divested of its
jurisdiction to pass a decree of eviction.”
12 . As one or other party in all these appeals addressed the
Court either supporting the majority decision of the Larger
Bench or minority decision, it is not necessary to record the
individuals’ submissions made by the learned counsel.
13. THE STATUTORY PROVISIONS:
To determine the issue involved it is necessary to refer to
relevant provisions of the Act. Section 2(iii) of the Act
defines ‘building’ as under:
- means any house
“Section 2(iii) ’Building’
or hut or part of a house or hut, let or to
be let separately for residential or
non-residential purposes and includes:-
8
(a) the gardens, grounds, garages and
out-houses if any, appurtenant to
such house, hut or part of such of
house or hut and let or to be let
along with such house or hut or
part of such house or hut;
(b) any furniture supplied or any
fittings affixed by the landlord
for use in such house or hut or
part of a house or hut, but does
not include a room in a hotel or
boarding house;
Section 2(ix) of the Act defines ‘tenant’ for the purpose
of the Act as under:
“Section 2(ix) - ’Tenant’ means any person
by whom or on whose account rent is
payable for a building and includes the
surviving spouse, or any son or daughter,
of a deceased tenant who had been living
with the tenant in the building as a
member of tenant’s family up to the death
of the tenant and a person continuing in
possession after the termination of the
tenancy in his favour, but does not
include a person placed in occupation of
a building, by its tenant or a person to
whom the collection of rents or fees in
public market, cart-stand or
slaughter-house or of rents for shops has
been framed out or leased by a local
authority.
Section 10 of the Act deals with ‘eviction of tenants’. It
protects the tenant from eviction in execution of a decree or
otherwise in all cases except in those cases where the eviction
is in accordance with the provisions of the Section 10 or
9
Sections 12 and 13 of the Act. Relevant portion of the said
section reads as under:
“ A tenant shall not be
Section 10(1):-
evicted whether in execution of a decree
or otherwise except in accordance with
the provisions of this Section or
Sections 12 and 13:
Provided that where the tenant, denies
the title of the landlord or claims right
of permanent tenancy, the Controller
shall decide whether the denial or claim
is bona fide and if he records a finding
to that effect, the landlord shall be
entitled to sue for eviction of the
tenant in Civil Court and the Court may
pass a decree for eviction on any of the
grounds mentioned in the said sections,
notwithstanding that the Court finds that
such denial does not involve forfeiture
of the lease or that the claim is
unfounded.”
Section 26 of the Act empowers the State Government to
exempt any building or class of building from all or any of the
provisions of the Act subject to such conditions and terms, if
any, the State may specify. Section 26 reads as follows:
“ Notwithstanding
Section 26. Exemptions:-
anything in this Act the Government may,
by notification in the Andhra Pradesh
Gazette, exempt subject to such
conditions and terms, if any, as they may
specify in the notification, any building
or class of building from all or any of
the provisions of the Act.”
Section 32 of the Act as it stood on the date of enactment
is as follows:
10
“32. Act not to apply to certain
buildings.- The provisions of this Act
shall not apply:
(a) To any building owned by the
Government;
(b) to any building constructed
on and after August 26,
1957.”
th
Upon striking down of Section 32(b) by this Court on 26
October, 1983 only Government buildings were exempted from the
purview of the Act.
. Since enactment of the Act in 1960 the State Government
14
never exercised its power under Section 26 of the Act to grant
exemption to any building or class of building from or any of
the provisions of the Act, till it issued G.O. Ms. No.636 dated
th
29 December, 1983 exempting all buildings for a period of 10
years from the date of completion of their construction and the
building(s) the monthly rent of which exceeds Rs.1,000/- from
the provisions of the Act. The said G.O. Ms is quoted here
under:
“[G.O.Ms.No.636, General Administration
th
(Accommodation-A) 29 December, 1983]
In exercise of the powers conferred
by Section 26 of the Andhra Pradesh
Buildings (Lease, Rent and Eviction)
Control Act, 1960 (Andhra Pradesh Act XV
of 1960), the Governor of Andhra Pradesh
hereby exempts with effect on and from
11
th
the 26 October, 1983, from the operation
of the provisions of the said Act,-
(a) all buildings for a period of
ten years from the date on
which their construction is
completed and;
(b) buildings the monthly rent of
which exceeds rupees one
thousand.
Explanation:- For the purpose of
clause (a) the construction of a
building shall be deemed to have
been completed on the date on
which the completion thereof is
reported to or otherwise recorded
by, the local authority having
jurisdiction and in the absence of
any such report or record the date
on which it is actually occupied
(not including occupation merely
for the purpose of supervising the
construction or guarding the
buildings under construction) for
the first time:
Provided that there may be
different dates of completion of
construction in respect of
different parts of building which
are either designed as separate
units or occupied separately by
the land-lord and one or more
tenants or by different tenants.”
The said G.O.Ms was issued by the State Government in
exercise of its power under Section 26 of the Act to fill up
the void created by the judgment of this Court in ‘ Motor
th
The said G.O.Ms was issued on 29 December,
General Traders’.
12
th
1983 and was made applicable from 26 October, 1983, i.e., the
date of the judgment in ‘ Motor General Traders’ .
Section 32 as amended by Amendment Act, 2005
15. :
32.Act not apply to certain buildings:- The provisions of
this Act shall not apply,-
(a) to any building belonging to the State Government
or the Central Government, or Cantonment Board or any
local authority;
(b) to any building constructed or substantially
renovated, either before or after the commencement of
this Act for a period of fifteen years from the date
of completion of such construction or substantial
renovation.
A building may be said to be
Explanation I:-
substantially renovated if not less than seventy five
percent of the premises is built new in accordance of
completion of such construction or substantial
renovation.
Explanation II:- Date of completion of construction
shall be the date of completion as intimated to the
concerned authority or of assessment of property tax,
whichever is earlier, and where the premises have
been constructed in stages the date on which the
initial building was completed and an intimation
thereof was sent to the concerned authority or was
assessed to property tax, whichever is earlier.
(c) to any building the rent of which as on the date
of commencement of the Andhra Pradesh Buildings
(Lease, Rent and Eviction) Control (Amendment) Act,
2005, exceeds rupees three thousand and five hundred
per month in the areas covered by the Municipal
Corporations in the State and rupees two thousand per
month in other areas.
13
. The submission made by the learned counsel on behalf of the
16
tenants is summarised as follows:
(1) The amended Section 32 would make the
provisions of the Act applicable to
pending proceedings.
(2) The definition of “Tenant” in Section
2(ix) of the Act would even include a
former tenant continuing possession
after the termination of the tenancy
in his favour. Thus, irrespective of
any decree for eviction which may have
been passed, if the tenant continues
in possession, he would be covered by
the statutory definition of “Tenant”.
(3) The purpose of the Amendment Act is to
bring within its fold buildings, whose
rent are upto Rs.3,500/-p.m. Thus, on
the date the Amendment Act came into
force, all those persons who were in
possession of buildings the rents of
which were below Rs.3,500/- p.m. would
come under the definition of “Tenant”
as defined in Section 2(ix) of the Act
and such buildings would come under
14
the definition of “building” as given
in Section 2(iii) of the Act.
(4) For the purposes of the Act a person
ceases to be a tenant only when he
loses possession of the building, i.e.
on the date of execution of a decree
of eviction passed against him.
Therefore, it is with reference to the
date of execution of the decree that
it has to be determined whether or not
the person is a “Tenant”. If the
person falls within the definition of
“Tenant”, irrespective of whether or
not there exists a decree of eviction
against him, the provisions of the Act
would apply.
(5)
As a result of the coming into force
of the Amendment Act, the cases of
tenants are brought within the
protective umbrella of Section 10(1)
of the Act. Accordingly, the power of
civil courts to evict the tenant
(which includes a tenant continuing in
possession after the termination of
the tenancy) who is in possession of
15
the buildings whose rents do not
exceed Rs.3,500/- p.m. is taken away.
The Civil Court therefore, becomes
coram non judice.
(6) An appeal is in continuation of the
suit and an appeal, arising from a
suit which was decided before the
amendment came into force, would be
governed by the amendment provided the
original or the appellate decree has
not been executed by the date the
amendment came into force.
(7)
The State Legislature was aware of
th
G.O.Ms dated 29 December, 1983 when
amendment to Section 32 was passed.
The State Government while exercising
power made Section 26 is merely a
delegate which otherwise originally
vests in the State Legislature. The
State Legislature by amendment of
Section 32 has taken over the occupied
field. In such an event the G.O. dated
th
29 December, 1983 issued by the
delegatee cannot eclipse or undermine
16
the exercise of power by the delegator
itself.
(8) Even though, Section 26 is a
non-obstante clause, the same cannot
override Section 32, in as much as
Section 32 is a non-obstante clause
itself. In the event Section 26 is
held to invest power with the
delegatee to override or eclipse the
intention of the delegator itself, the
said Section would be open to
challenge on the ground of excessive
delegation.
. Learned counsel appearing for the landlords submitted that
17
all the above said contentions were advanced before the Full
Bench of the High Court and on careful consideration of these
contentions the Full Bench rightly came to the conclusion that
Section 32(c) of the Act brought into force by Section 3 of
Amendment Act, 2005 is prospective in operation and does not
affect proceedings pending at various stages.
. Further according to the learned counsel for the landlord
18
retrospective amendment of a law is always resorted to only when
the Legislature intends to deal with a situation which deserves
a remedial process. By amending a law retrospectively, a benefit
17
or an interest which has been put in jeopardy owing to any
reason or cause is retrieved. In other words a retrospective
amendment intends to achieve a specific object or purpose
remedial in character. If no purpose or object is discernible,
retrospectively will not be imputed or assumed.
In support of the contentions both the learned counsel
19.
relied on the judgments of this Court relevant of which will be
noticed at the appropriate stage.
20. Before dealing with the rival contentions in the light of
the judgments relied on by the learned counsel for the parties,
we deem it appropriate to consider the precise nature of rights
of landlord and tenant in the common law and under the
provisions of the Act.
21. The rights of the landlord to evict a tenant by way of suit
before a civil court of competent jurisdiction exist as long as
it is not abridged by a special legislation conferring
protection in favour of the tenant.
In
22. Parripati Chandrasekharrao & sons vs. Alapati Jalaiah,
(1995) 3 SCC 709, this Court drew a distinction between the
rights which accrue to the landlord under the common law and the
protection which is available to the tenant under the Act. While
th
upholding the G.O.Ms. No.636 dated 29 December, 1983 this Court
observed as under:
18
“12. According to us there is a material
difference between the rights which accrue
to a landlord under the common law and the
protection which is afforded to the tenant
by such legislation as the Act. In the
former case the rights and remedies of the
landlord and tenant are governed by the law
of contract and the law governing the
property relations. These rights and
remedies continue to govern their
relationship unless they are regulated by
such protective legislation as the present
Act in which case the said rights and
remedies remain suspended till the
protective legislation continues in
operation. Hence while it can legitimately
be said that the landlord’s normal rights
vested in him by the general law continue
to exist till and so long as they are not
abridged by a special protective
legislation in the case of the tenant, the
protective shield extended to him survives
only so long as and to the extent the
special legislation operates. In the case
of the tenant, therefore, the protection
does not create any vested right which can
operate beyond the period of protection or
during the period the protection is not in
existence. When the protection does not
exist, the normal relations of the landlord
and tenant come into operation. Hence the
theory of the vested right which may
validly be pleaded to support the
landlord’s case is not available to the
tenant. It is for this reason that the
analogy sought to be drawn by Shri Subbarao
between the landlord’s and the tenant’s
rights relying upon the decision of this
(1988) 4 SCC 284,
Court in Atma Ram Mittal,
is misplaced. In that case the landlord’s
normal right to evict the tenant from the
premises was not interfered with for the
first ten years of the construction of the
premises by an exemption specifically
incorporated in the protective rent
legislation in question. The normal right
19
was obviously the vested right under the
general
law and once accrued it continued
to operate. The protection given to the
tenant by the rent legislation came into
operation after the expiry of the period of
ten years. Hence, notwithstanding the
coming into operation of the protection and
in the absence of the provisions to the
contrary, the proceedings already commenced
on the basis of the vested right could not
be defeated by mere passage of time
consumed by the said proceedings. It is for
this reason that the Court there held that
the right which had accrued to the landlord
being a vested right could not be denied to
him by the efflux of time.”
23 . In Garikapati Veeraya v. N. Subbaiah Choudhary, AIR 1957 SC
540, while dealing with the golden rule of construction this
Court held that in the absence of anything in the enactment to
show that the amendment is to have retrospective operation it
cannot be so construed so as to have the effect of altering the
law applicable to a claim in litigation at the time when the Act
was passed. The Constitution Bench held:
“(25)In construing the articles of the
Constitution we must bear in mind certain
cardinal rules of construction. It has
been
said in Hough v. Windus, 1884-12 QBD 224
at p.237(V)that "statutes should be
interpreted, if possible, so as to
respect vested right." The golden rule of
construction is that, in the absence of
anything in the enactment to, show that
it is to have retrospective operation, it
cannot be so construed as to have the
effect of altering the law applicable to
a claim in litigation at the time when
the Act was passed. Leeds and County Bank
20
Ltd.v.Walker,(1883) 11 QBD 84 at p.91(W);
Moon v. Durden,(1948) 2 Ex 22:76RR 479 at
p.495 (X). The following observation of
Rankin C.J. in Sadar Ali v. Dalimuddin
(supra) at page 520 (of ILR Cal); (at
p.643 of AIR) is also apposite and
helpful: "Unless the contrary can be
shown the provision which takes away the
jurisdiction is itself subject to the
implied saving of the litigant’s right."
In Janardan Reddy v. The State, 1950 SCR
940 at pp.946, 947); (AIR 1951 SC 124 at
pp.126-127) (Y) Kania C.J. in delivering
the judgment of the Court observed that
our Constitution is generally speaking
prospective in its operation and is not
to have retroactive operation in the
absence of any express provision to that
effect. The same principle was reiterated
in Keshavan Madhava Menon v. The State of
Bombay, 1951 SCR 228; (AIR 1951 SC 128)
(Z) and finally in Dajisaheb Mane and
Others v. Shankar Rao Vithal Rao, 1955-2
SCR 872 at pp.876-877; (S) AIR 1956 SC 29
at p.31) (Z1)to which reference will be
made in greater detail hereafter.”
. In this Court
24 Moti Ram v. Suraj Bhan, AIR 1960 SC 655,
decided a case of ejectment of tenant by the landlord under
Section 13(1) of the East Punjab Urban Rent Restriction Act,
1949. Under Section 13 of the said Act, a tenant in possession
of a building cannot be evicted therefrom except in accordance
with the said Section.
This Court held that where an amendment affects vested
rights, the amendment would operate prospectively unless it is
21
expressly made retrospective or its retrospective operation
follows as a matter of necessary implication. It was held:
“It is well settled that where an
amendment affects vested rights, the
amendment would operate prospectively
unless it is expressly made retrospective
or its retrospective operation follows as
a matter of necessary implication. The
amending Act obviously does not make the
relevant provision retrospective in terms
and we see no reason to accept the
suggestion that the retrospective
operation of the relevant provision can
be spelt out as a matter of necessary
implication….”
This Court further held:
“Where the legislature intends to make
substantive provisions of law
retrospective in operation it generally
makes its intention clear by express
provision in that behalf.”
25 . Ordinarily a Court of appeal cannot take into account a new
law brought into existence after the judgment appealed from has
been rendered, because the rights of the litigants in appeal are
determined applying the law in force at the date of the suit.
This view was expressed by this Court in
Dayavati v. Inderjit,
AIR 1966 SC 1423. This Court further held that if the new law
speaks a language which expressly or by clear intendment takes
in even pending matter the Court of trial as well as the Court
of appeal must have regard to the intention so expressed and the
Court of appeal may give effect to such a law even after the
judgment of the Court of first instance.
22
. In
26 Atma Ram Mittal vs. Ishwar Singh Punia, (1988) 4 SCC
284, this Court dealt with the provisions of Haryana Urban
(Control of Rent and Eviction) Act, 1973 which mandates that the
tenant in possession of a building or a rented land shall not be
evicted therefrom except in accordance with the provisions of
that Act. Section 1(3) of the said Act provides that “nothing in
this Act shall apply to any building the construction of which
is completed on or after the commencement of this Act for a
period of ten years from the date of its completion.
The appellant-landlord in the said case filed a suit for
possession in the civil court of Hissar in Haryana on the basis
that the respondent was in arrears of rent from December 1, 1981
to May 31, 1982 and the tenancy of the respondent had been
terminated by giving him notice. The suit was filed for recovery
of possession on the termination or expiry of the period of
tenancy. Later the respondent-tenant moved an application for
dismissal of suit stating that shop in question was constructed
in June, 1974 and ten years had elapsed by June, 1984 and in
terms of Section 1(3) of the said Act, immunity from application
of Act had expired. It was contended that jurisdiction of Civil
Courts stood barred due to the said provision. This Court held
that the exemption applies for ten years and landlord was
entitled to the exemption until the final disposal of the suit.
This Court held:
23
“8. It is well-settled that no man
should suffer because of the fault of the
court or delay in the procedure. Broom
has stated the maxim “actus curiae
neminem gravabit” — an act of court shall
prejudice no man. Therefore, having
regard to the time normally consumed for
adjudication, the ten years’ exemption or
holiday from the application of the Rent
Act would become illusory, if the suit
has to be filed within that time and be
disposed of finally. It is common
knowledge that unless a suit is
instituted soon after the date of letting
it would never be disposed of within ten
years and even then within that time it
may not be disposed of. That will make
the ten years holiday from the Rent Act
illusory and provide no incentive to the
landlords to build new houses to solve
problem of shortages of houses. The
purpose of legislation would thus be
defeated. Purposive interpretation in
asocial amelioration legislation is an
imperative irrespective of anything
else.”
This Court further held:
“11……In our opinion, bearing in mind the
well-settled principle that the rights of
the parties crystallise to (sic on) the
date of the institution of the suit as
enunciated by this Court in Om Prakash
Gupta v. Digvijendrapal Gupta, (1982) 2
SCC 61 , the meaningful construction must
be that the exemption would apply for a
period of ten years and will continue to
be available until suit is disposed of or
adjudicated. Such suit or proceeding must
be instituted within the stipulated
period of ten years. Once rights
crystallise the adjudication must be in
accordance with law.”
24
27 . The learned counsel for the landlord placed much reliance
on this Court’s decision in
Ambalal Sarabhai Enterprises Ltd.
vs. Amrit Lal & Co. and another, (2001) 8 SCC 397. The said case
was related to Delhi Rent Control Act, 1958. An amendment was
made in the Act making the Act inapplicable to the tenancy of
any premises monthly rent of which exceeds Rs.3,500/-. In the
said case, the Division Bench of this Court held that the said
amendment would not affect the pending proceedings and observed
as follows:
“17. The aforesaid decision holds that
tenants have no vested right under the
Rent Act. In effect, the law is well
settled. Prior to the enactment of the
Rent Act the relationship between the
landlord and the tenant was governed by
the general law, maybe the Transfer of
Property Act or any other law in relation
to the property. The Rent Act merely
provides a protection to a tenant as
against the unbridled power of the
landlord under the general law of the
land. The Rent Act gives protection to
the tenant from being ejected except on
the grounds referred to under the Rent
Act. In other words, it protects the
tenant from ejectment, it protects a
tenant from the drastic enhancement of
the rent by the landlord which may
otherwise the landlord could do under the
general law. Thus the right of a tenant
under the Rent Act at the best could be
said to be a protective right, which
cannot be construed to be a vested right.
In effect, in view of this special
enactment of the Rent Act, the right and
remedies available to a landlord under
25
the general law remain suspended. In
other words the landlord’s vested right
under the general law continues so long
it is not abridged by such protective
legislation, but the moment when this
protection is withdrawn
the landlord’s normal vested right
reappears which could be enforced by him.
xx xxx xxx xxx
In view of the aforesaid legal
36.
principle emerging, we come to the
conclusion that since proceeding for the
eviction of the tenant was pending when
the repealing Act came into operation,
Section 6 of the General Clauses Act
would be applicable in the present case,
as it is the landlord’s accrued right in
terms of Section 6. Clause (c) of Section
6 refers to “any right” which may not be
limited as a vested right but is limited
to be an accrued right. The words “any
right accrued” in Section 6(c) are wide
enough to include the landlord’s right to
evict a tenant in case proceeding was
pending when repeal came in. Thus a
pending proceeding before the Rent
Controller for the eviction of a tenant
on the date when the repealing Act came
into force would not be affected by the
repealing statute and will be continued
and concluded in accordance with the law
as existed under the repealed statute.
In view of the aforesaid findings,
37.
we conclude by recording our findings on
the question posed earlier by holding:
(1) A landlord or tenant are relegated
to seek their rights and remedies under
the common law once the protection given
to a tenant under the Rent Act is
26
withdrawn, except in cases where Section
6 of the General Clauses Act, 1897 is
applicable.
(2) A ground of eviction based on
illegal sub-letting under proviso (b) to
Section 14 of the Rent Act would not
constitute to be a vested right of a
landlord, but it would be a right and
privilege accrued within the meaning of
Section 6(c) of the General Clauses Act
in a matter if proceeding for eviction is
pending.
(3) When the tenant has no vested
right under a Rent Act having only
protective right, withdrawal of such
protection would not confer on a landlord
a vested right to evict a tenant under
the Rent Act except where clause (c) of
Section 6 of the General Clauses Act is
applicable.
In view of these findings we hold
38.
that the landlord has a right under the
repealed Rent Act by virtue of Section
6(c) of the General Clauses Act, which
would save the pending proceedings before
the Rent Controller, which may continue
to be proceeded with as if the repealed
Act is still in force.”
. In
28 Mani Subrat Jain vs. Raja Ram Vohra, (1980) 1 SCC 1,
this Court dealt with the case of an advocate who belonged to
‘scheduled’ class of tenants whose dwellings enjoy special
protection. The appellant-advocate tenanted a building belonging
to the respondent-landlord. The latter sued for possession and
the former, entered into a compromise and agreed to vacate by a
27
certain date on certain terms regarding rent. A decree in terms
thereof was passed on October 9, 1972. Then came the East Punjab
Rent Restriction Act, 1949, which by extension of its operation,
applied to Chandigarh where the suit premises was situated
w.e.f. November 4, 1972. Had the decree been passed but a few
days later, the Act would have admittedly interdicted the
eviction because of Section 13. In the said case having noticed
the definition of tenant [Section 2(i)] and Section 13(1) of the
Act, the Court held:
Section 2(i) reads:
“6.
“‘tenant’ means any person by whom or on
whose account rent is payable for a building
or rented land and includes a tenant
continuing in possession after the
termination of the tenancy in his favour, but
does not include a person placed in
occupation of a building or rented land by
its tenant, unless with the consent in
writing of the landlord, or a person to whom
the collection of rent or fees in a public
market, cart-stand or slaughter house or of
rents for shops has been farmed out or leased
by a municipal, town or notified area
committee;
In this context, we may also read Section
13(1) which is integral to and makes impact
upon the meaning of Section 2(i) even if
there be any marginal obscurity.
“13. .—(1) A tenant in
Eviction of tenants
possession of a building or rented land shall
not be evicted therefrom in execution of a
decree passed before or after the
commencement of this Act or otherwise and
whether before or after the termination of
the tenancy, except in accordance with the
28
provisions of this section, or in pursuance
of an order made under Section 13 of the
Punjab Urban Rent Restriction Act, 1947, as
subsequently amended.
The expression “tenant” includes “a tenant
continuing in possession after the
termination of the tenancy in his favour”. It
thus includes, by express provision, a
quondam tenant whose nexus with the property
is continuance in possession. The fact that a
decree or any other process extinguishes the
tenancy under the general law of real
property does not terminate the status of a
tenant under the Act having regard to the
carefully drawn inclusive clause. Even here,
we may mention by way of contrast that
case,(1969) 2 SCR 559)related to a
Subudhi
statute where the definition in Section 2(5)
of that Act expressly included “any person
against whom a suit for ejectment is pending
in a Court of competent jurisdiction” and
more pertinent to the point specially
excluded “a person against whom a decree or
order for eviction has been made by such a
court”. We feel no difficulty in holding that
the text, reinforced by the context,
especially
Section 13, convincingly includes
ex-tenants against whom decrees for eviction
might have been passed, whether on compromise
or otherwise. The effect of the compromise
decree, in counsel’s submission, is that the
tenancy has been terminated. Nobody has a
case that the appellant is not continuously
in possession. The conclusion is inevitable
that he remains a tenant and enjoys immunity
under Section 13(1). The execution
proceedings must, therefore, fail because the
statutory road-block cannot be removed.
Indeed, an application under the Act was
filed by the landlord defendant which was
dismissed because the ground required by the
Act was not made out.
7. We have been told by counsel, and
supporting citations have been brought to our
29
notice, that the High Court at Chandigarh has
taken the contrary view for some time. It is
better to be ultimately right rather than
consistently wrong. The interpretation we
have given in Section 2(i) is strengthened by
our conviction that a beneficial statute
intended to quieten a burning issue affecting
the economics of the human condition in India
should be so interpreted as to subserve the
social justice purpose and not to subvert it.
Even apart from this value-vision, the
construction we have adopted is sustainable.”
. In
29 Lakshmi Narayan Guin and others vs.Niranjan Modak,
(1985) 1 SCC 270, the Court dealt with a case where West Bengal
Premises Tenancy Act, 1956 was made extended to the location of
suit premises during the pendency of the appeal. The Court held
that the appeal would be governed by the said Act and the
provisions of the Act would retrospective operate from the date
of the filing of the eviction suit. The relevant portion of the
said judgment reads as follows:
“7. As has been stated earlier,
sub-section (1) of Section 13 of the Act
provides that no order or decree for the
recovery of possession shall be made by any
court in a landlord’s suit against the
tenant except on certain enumerated
grounds. Does the decree here refer to the
decree of the trial court or, where an
appeal has been preferred, to the appellate
decree? Plainly, reference is intended to
the decree which disposes of the suit
finally. It is well settled that when a
trial court decrees a suit and the decree
is challenged by a competent appeal, the
appeal is considered as a continuation of
the suit, and when the appellate decree
30
affirms, modifies or reverses the decree on
the merits, the trial court decree is said
in law to merge in the appellate decree,
and it is the appellate decree which rules.
The object of sub-section (1) of Section 13
is to protect the possession of the tenant,
subject to the exceptions specified in the
sub-section, and that protection is ensured
if we construe the sub-section to mean
that, subject to those exceptions, no
effective or operative order or decree can
be made by the court in a landlord’s suit
for possession against a tenant. To our
mind, therefore, sub-section (1) of Section
13 of the Act can be invoked by a tenant
during the pendency of an appeal against a
trial court decree.
8. The next point is whether sub-section
(1) of Section 13 can be invoked where the
suit was instituted before the Act came
into force. In the instant case, the suit
was instituted long before the Act was
extended to Memari. Sub-section (1) of
Section 13 directs the court not to make
any order or decree for possession subject,
of course, to the statutory exceptions. The
legislative command in effect deprives the
Court of its unqualified jurisdiction to
make such order or decree. It is true that
when the suit was instituted the court
possessed such jurisdiction and could pass
a decree for possession. But it was
divested of that jurisdiction when the Act
was brought into force. The language of the
sub-section makes that abundantly clear,
and regard must be had to its object. In
Shah Bhojraj Kuverji Oil Mills and Ginning
Factory v. Subhash Chandra Yograj Sinha
(1962)2 SCR 159, a Bench of five Judges of
this Court had occasion to consider
sub-section (1) of Section 12 of the Bombay
Rents, Hotel and Lodging House Rates
Control Act, 1947. Sub-section (1) of
Section 12 provided:
31
“A landlord shall not be entitled
to the recovery of possession
of any
premises so long as the tenant pays, or
is ready and willing to pay, the amount
of the standard rent….”
On the question whether the provision
applied to pending suits for possession,
the learned Judges drew attention to the
point of time specifically mentioned in
the sub-section. It operated, they said,
“when the decree for recovery of
possession will have to be passed” and
did not refer back to the institution of
the suit. By a unanimous judgment the
learned Judges held that the sub-section
applied to pending suits. In passing, it
may be noted that the learned Judges
expressed a degree of hesitation on
whether a statutory injunction of that
nature could be applied retrospectively
to appeals against decrees already made.
But any doubt on the point must be
considered to have been finally removed
by this Court when in Rafiquennessa v.
Lal Bahadur Chetri, (1964)6 SCR 876,
another Bench of five Judges, which
included J.C. Shah, J. who was a member
of the Bench in the earlier case, held on
an interpretation of clause (a) of
sub-section (1) of the Assam
Non-Agricultural Urban Areas Tenancy Act,
1955, which prohibited the eviction of a
tenant, that the statutory provision came
into play for the protection of the
tenant even at the appellate stage. The
learned Judges relied on the principle
that an appeal was a continuation of the
suit and that the appeal would be
governed by the newly enacted clause (a)
of sub-section (1) of Section 5 even
though the trial court decree had been
passed earlier.”
32
30. A Constitution Bench of five-Judge in
Shah Bhojraj Kuverji
Oil Mills and Ginning Factory v. Subhash Chandra Yograj Sinha,
considered the question as to whether a
AIR 1961 SC 1596,
section is prospective or retrospective. This Court dealt with a
case where during the pendency of possession suit by
respondent-landlord a notification was issued u/s 6 of Bombay
Rents, Hotel and Lodging House Rates Control Act, 1947, applying
part II of the said Act to the area where the suit property was
situated. The appellant-tenants claimed protection of Section
12 as part II of the said Act which deprived the landlord of the
right to possession under certain circumstances. The Court
allowed the appeal filed by the tenant holding Section 12(1) to
be retrospective. The Court in the said case held that a
section may be prospective in some parts and retrospective in
other parts. The relevant portion of said judgment reads as
follows:
“(11) The second contention urged by
the learned Attorney-General that s. 12(1)
applied from the date on which the Act was
extended to the area in question is, in our
opinion, sound. Section 12(1) enacts a rule
of decision, and it says that a landlord is
not entitled to possession if the tenant
pays or shows his readiness and willingness
to pay the standard rent and to observe the
other conditions of the tenancy. The word
"tenant" is defined in the Act to include
not only a tenant, whose tenancy subsists
but also any person remaining, after the
determination of the lease, in possession
33
with or without the assent of the landlord.
The
present appellants, as statutory tenants,
were within the rule enacted by s. 12(1)
and entitled to its protection, if the
sub-section could be held applicable to
this suit.
(12) Both the Bombay High Court and
this Court had, on the previous occasions,
observed that s. 12 of the Act was
prospective. In those cases, the learned
Judges were concerned with the
interpretation of sub ss. (2) and (3) only,
which, as the words of those subsections
then existing show, were clearly
prospective, and were applicable to suits
to be instituted after the coming into
force of the Act. But a section may be
prospective in some parts and retrospective
in other parts. While it is the ordinary
rule that substantive rights should not be
held to be taken away except by express
provision or clear implication, many Acts,
though prospective in form, have been given
retrospective operation, if the intention
of the legislature is apparent. This is
more so, when Acts are passed to protect
the public against some evil or abuse. (See
Craies on Statute Law, 5th Edn., p. 365).
The sub-section says that a landlord Shall
not be entitled tothe recovery of
possession of any premises so long as the
tenant pays or is ready and willing to pay
the standard rent etc., and observes and
performs the other conditions of the
tenancy. In other words, no decree can be
passed granting possession to the landlord,
if the tenant fulfils the conditions above
mentioned. The Explanation to S. 12 makes
it clear that the tenant in case of a
dispute may make an application to the
Court under sub-s. (3) of S. 11 for
fixation of a standard rent and may
thereafter pay or tender the amount of rent
or permitted increases specified in the
order to be made by the Court. The tenants,
34
in the present case, have expressed their
readiness and willingness to pay, and it is
clear that they fulfil the requirements of
sub-s.(1) of S. 12, and the landlord is,
therefore, not entitled to the relief of
possession.
(13) Both the High Court as well as
this Court in their previous decisions,
referred to above, were not called upon to
interpret sub-s. (1) of the Act. They were
dealing with appeals arising out of decrees
already passed. The observations that S. 12
was prospective were made with reference to
sub-ss. (2) and (3) and not with respect to
sub-s. (1), which did not even find a
mention in those judgments. The question
then was whether S. 12 by itself or read
with the proviso to S. 50 was applicable
retrospectively to appeals. That is not the
question which has arisen here. Then again,
S. 12(1) enacts that the landlord shall not
be entitled to recover possession, not "no
suit shall be instituted by the landlord to
recover possession". The point of time when
the sub-section will operate is when the
decree for recovery of possession would
have to be passed. Thus, the language of
the subsection applies equally to suits
pending when Part 11 comes into force and
those to be filed subsequently. The
contention of the respondent that the
operation of S. 12(1) is limited to suits
filed after the Act comes into force in a
particular area cannot be accepted. The
conclusion must follow that the present
suit cannot be decreed in favour of the
respondent. The decisions of the High Court
and the Court of First Instance are thus
aside.”
erroneous, and must be set
31 . Subsequently, another Constitution Bench of five-Judge of
this Court in
Mst. Rafiquennessa v. Lal Bahadur Chetri and
35
having noticed the scope of Assam
another, AIR 1964 SC 1511,
Non-Agricultural Urban Areas Tenancy Act held:-
“(9).....In order to make the statement
of the law relating to the relevant rule of
construction which has to be adopted in
dealing with the effect of statutory
provisions in this connection, we ought to
add that retroactive operation of a
statutory provision can be inferred even in
cases where such retroactive operation
appears to be clearly implicit in the
Provision construed in the context where it
occurs. In other words, a statutory
provision is held to be retroactive either
when it is so declared by express terms, or
the intention to make it retroactive
clearly follows from the relevant words and
the context in which they occur.
(10) Bearing in mind these principles,
let us look at s. S. Before doing so, it is
necessary to consider s. 2 which provides
that notwithstanding anything contained in
any contract or in any law for the time
being in force, the provisions of this Act
shall apply to all non-agricultural
tenancies whether created before or after
the date on which this Act comes into
force. This provision clearly indicates
that the legislature wanted the beneficent
provisions enacted by it to take within
their protection not only leases executed
after the Act came into force, but also
leases executed prior to the operation of
the Act. In other words, leases which bad
been created before the Act applied are
intended to receive the benefit of the
provisions of the Act, and in that sense,
the Act clearly affects vested rights of
the landlords who had let out their urban
properties to the tenants prior to the date
of the Act. That is one important fact
which is material in determining the scope
and effect of s. 5.
36
(11) Now, s. 5 itself gives an
unmistakable indication of the legislative
intention to make its provisions
retrospective. What does s. 5 provide? It
provides protection to the tenants who have
actually built within five years from the
date of leases executed in their favour,
permanent structures on the land let out to
them for residential or business purposes,
and this protection is available either
when the construction of the permanent
structure has been made by the tenant in
pursuance of the terms of the lease, or
even without any term of that kind and the
landlord had knowledge of it and had
acquiesced in it. Thus, the plain object of
s. 5 is to protect the tenants who have
built a permanent structure either for
business or for residence, provided it has
been built within 5 years from the date of
contract of tenancy. Therefore, cases where
permanent structures had been built within
5 years of the terms of contract, would
fall within s. 5 ( 1 ) (a), even though
those constructions had been made before
the date of the Act. Thus, the very scheme
of 5 (1) (a) clearly postulates the
extension of its protection to
constructions already made. That is another
point which is significant in dealing with
the controversy between the parties before
us.
(12) There is yet another point which
is relevant in this connection. S. 5(1)(a)
provides that the tenant shall not be
evicted by the landlord from the tenancy
except on the ground of non-payment of
rent, provided, of course, the conditions
prescribed by it are satisfied. If the
legislature had intended that this
protection should operate prospectively. it
would have been easy to say that the tenant
shall not be sued in ejectment; such an
expression would have indicated that the
protection is afforded to the suits brought
37
after the Act came into force, and that
might
have introduced the element of prospective
operation; instead, what is prohibited by
s. 5 (1)(a) is the eviction of the tenant,
and so, inevitably, the section must come
into play for the protection of the tenant
even at the appellate stage when it is
clear that by the proceedings pending
before the appellate court, the landlord is
seeking to evict the tenant, and that
obviously indicates that the pending
proceedings are governed by s. 5(1)(a),
though they may have been initially
instituted before the Act came into force.”
32 . In the present case Section 2(ix) of the Act defines
‘tenant’ as any person by whom or on whose account rent is
payable for a building and includes the surviving spouse, or any
son or daughter, of a deceased tenant who had been living with
the with the tenant in the building as a member of tenant’s
family up to the death of the tenant including a person
continuing in possession after the termination of the tenancy in
his favour. Thus it is clear that even if any person after
termination of tenancy in his favour is continuing in
possession, is covered by definition of ‘tenant’.
33 . Section 10 of the Act relates to ‘eviction of tenants’. It
protects the tenant from eviction in execution of a decree or
otherwise except where eviction is in accordance with the
provisions of Section 10 or Sections 12 and 13. A tenant,
including a person continuing in possession of the premises
| 38<br>after the termination of his tenancy thereby cannot be evicted<br>by execution of a decree or otherwise except in accordance with<br>the provisions of Section 10 or Sections 12 and 13. Therefore,<br>it is clear that till the execution of a decree, the tenant<br>including a person continuing in possession after termination of<br>tenancy in his favour is protected under the Act.<br>34. Section 32, as it originally stood, consequent to its<br>striking down in ‘Motor General Traders’ case and after<br>Amendment Act, 2005 is reproduced below: | | | |
|---|
| Original Section 32<br>prior to striking down | Section 32 consequent<br>on its striking down | Section 32 as amended by<br>Amendment Act, 2005 | |
| 32. Act not to apply<br>to certain Buildings:-<br>The provision of this<br>Act shall not apply-<br>(a) to any building<br>owned by the<br>Government;<br>(b) to any building<br>constructed on or<br>after the 26th<br>August,1957. | 32. Act not to apply<br>to certain Buildings:-<br>The provision of this<br>Act shall not apply-<br>(a) to any building<br>owned by the<br>Government; | 32.Act not apply to certain<br>buildings:- The provisions<br>of this Act shall not<br>apply,-<br>(a) to any building<br>belonging to the State<br>Government or the Central<br>Government, or Cantonment<br>Board or any local<br>authority;<br>(b) to any building<br>constructed or substantially<br>renovated, either before or<br>after the commencement of<br>this Act for a period of<br>fifteen years from the date<br>of completion of such<br>construction or substantial<br>renovation.<br>Explanation I:- A building<br>may be said to be<br>substantially renovated if<br>not less than seventy five<br>percent of the premises is<br>built new in accordance of<br>completion of such | |
| 39 | | | |
|---|
| | | construction or substantial<br>renovation.<br>Explanation II:- Date of<br>completion of construction<br>shall be the date of<br>completion as intimated to<br>the concerned authority or<br>of assessment of property<br>tax, whichever is earlier,<br>and where the premises have<br>been constructed in stages<br>the date on which the<br>initial building was<br>completed and an intimation<br>thereof was sent to the<br>concerned authority or was<br>assessed to property tax,<br>whichever is earlier.<br>(c) to any building the rent<br>of which as on the date of<br>commencement of the Andhra<br>Pradesh Buildings (Lease,<br>Rent and Eviction) Control<br>(Amendment) Act, 2005,<br>exceeds rupees three<br>thousand and five hundred<br>per month in the areas<br>covered by the Municipal<br>Corporations in the State<br>and rupees two thousand per<br>month in other areas. | |
| 35. In its original form the Act protected tenants of all<br>buildings, irrespective of rent, except (a) the tenants of a<br>building owned by the Government and (b) the tenants of a<br>building constructed on or after 26th August, 1957.<br>36. After striking down of Section 32(b), the tenants of all<br>buildings, including any building constructed on or after 26th<br>August, 1957 irrespective of rent were protected under the Act<br>except the tenants of a building owned by the Government. | | | |
40
. After amendment of Section 32 by the Amendment Act, 2005,
37
th
w.e.f 27 April, 2005, tenants of a building, rent of which is
Rs.3,500/- p.m. or below in the areas covered by the Municipal
Corporations and the tenants of a building, rent of which is
Rs.2,000/- p.m. or below in other areas, only remain as
protected tenants. In effect, the rest of the tenants of any
building rent of which exceeds Rs.3,500/- p.m. in the area
covered by the Municipal Corporation and Rs.2,000/- p.m. in
other areas, no more remain tenant within the meaning of Section
2(ix) of the Act as the Act is not applicable to them.
th
Therefore, since, 27 April, 2005 this class of tenants of
building whose rent exceeds Rs.3,500/- p.m. in Municipal
Corporation areas and Rs.2,000/-per month in other areas, lost
their right of protection under the Act in view of amended
Section 32(c). This apart the tenants of any building
constructed or substantially renovated, either before or after
the commencement of the Act for a period of fifteen years from
the date of completion of such construction or substantial
renovation, no more remain ‘tenant’ within the meaning of
Section 2(ix) of the Act and they also lost their right of
protection in view of the amended Section 32(b). The position
with regard to the building belonging to the Government remained
the same. The tenants of building belonging to the Cantonment
| 41<br>Board or local authority also lost their rights to claim<br>protection in view of amended Section 32(a).<br>38. If the effect of Section 32 in the inception of the Act,<br>after striking down in Motor General Traders case and after<br>amendment of the Act in 2005 is shown in a tabular chart, it<br>will be as follows: | | | |
|---|
| Original Section 32<br>prior to striking down | Section 32 consequent<br>on its striking down | Section 32 as amended by<br>Amendment Act, 2005 | |
| (a)tenants of a<br>building owned by the<br>Government; and<br>building constructed,<br>on or after the 26th<br>August,1957 do not<br>come within the<br>definition of tenant –<br>Section 2(ix) of the<br>Act;<br>(b) tenants of all<br>other buildings,<br>irrespective of rent,<br>including belonging to<br>Cantonment Board or<br>any local authority<br>come within the<br>meaning of tenant<br>under the Act.<br>This includes the<br>building whose rent is<br>between<br>Rs.1001-Rs.3500 p.m.<br>in the municipal area<br>and from Rs.1001/- to<br>Rs.2000/- in other<br>areas. | (a) tenants of a<br>building owned by the<br>Government (State or<br>Central Government) do<br>not fall within the<br>meaning of tenant<br>under the Act.<br>(b) tenant of all<br>other buildings,<br>irrespective of rent,<br>including the tenant<br>of Cantonment Board or<br>any local authority<br>come within the<br>definition of tenant<br>of the Act.<br>This includes the<br>building whose rent is<br>between<br>Rs.1001-Rs.3500 p.m.<br>in the municipal area<br>and from Rs.1001 to<br>Rs.2000/- in other<br>areas.<br>(c) | (a)tenants of building<br>belonging to State<br>Government or Central<br>Government or Cantonment<br>Board or any other local<br>authority do not come within<br>the meaning of tenant;<br>(b)tenants of building<br>constructed or substantially<br>renovated for a period of 15<br>years from the date of<br>completion of such<br>construction or substantial<br>renovation do not come<br>within the meaning of tenant<br>under the Act;<br>(c) tenants of any building<br>the rent of which exceeds<br>Rs.3,500/- p.m. in the areas<br>covered by Municipal<br>Corporation and Rs.2,000/-<br>p.m. in other areas do not<br>come within the meaning of<br>tenant under the Act;<br>(d) tenants of all other<br>buildings rent of which is<br>Rs.3,500/- p.m. or below in<br>the Municipal area and<br>Rs.2,000/- p.m. or below in<br>other areas continued to be<br>protected tenant. | |
| | | | |
42
. In view of the aforesaid discussion, we hold that part of
39
Section 32 i.e. Section 32(a) and (c) is prospective and other
part i.e. Section 32(b) is retrospective.
th
40 . Effect of G.O.Ms.No.636 dated 29 December, 1983 on the Act
Section 32 of the Act specifies the buildings to which the
Act will not apply. It is not an exemption granted in the Act
but a specific provision under the Act stipulating
non-application of the Act to certain buildings. Section 26 is
the power of exemption granted to the State Government to exempt
certain buildings or class of buildings from all or any of the
provisions of the said Act. With the cost of repetition, it is
desirable to produce Section 26 again as follows:
“ Section 26. Exemptions:- Notwithstanding
anything in this Act the Government may, by
notification in the Andhra Pradesh Gazette,
exempt subject to such conditions and
terms, if any, as they may specify in the
notification, any building or class of
building from all or any of the provisions
of the Act.”
41 . Nature and effect of a non obstante clause was considered
by this Court in
Union of India and another vs. G.M. Kokil and
another, 1984 (Suppl.) SCC 196. In the said case this Court held
as follows:
“11………… It is well-known that a non
obstante clause is a legislative device
which is usually employed to give
overriding effect to certain provisions
43
over some contrary provisions that may be
found either in the same enactment or some
other enactment, that is to say, to avoid
the operation and effect of all contrary
provisions…………”
. In
42 Chandavarkar Sita Ratna Rao vs. Ashalata S. Guram,
(1986) 4 SCC 447, this Court while dealing with a case of
statutory tenant discussed the merit of non obstante clause and
held as follows :
A clause beginning with the
“67.
expression “notwithstanding anything
contained in this Act or in some particular
provision in the Act or in some particular
Act or in any law for the time being in
force, or in any contract” is more often
than not appended to a section in the
beginning with a view to give the enacting
part of the section in case of conflict an
overriding effect over the provision of the
Act or the contract mentioned in the non
obstante clause. It is equivalent to saying
that in spite of the provision of the Act
or any other Act
mentioned in the non
obstante clause or any contract or document
mentioned the enactment following it will
have its full operation or that the
provisions embraced in the non obstante
clause would not be an impediment for an
operation of the enactment. See in this
connection the observations of this Court
in South India Corpn. (P) Ltd. v.
Secretary, Board of Revenue, Trivandrum,
AIR 1964 SC 207.”
This Court further held that the expression notwithstanding
is in contradistinction to the phrase ‘subject to’, the latter
44
conveying the idea of a provision yielding place to another
provision or other provisions to which it is made subject.
In view of the aforesaid decision, we hold that Section 26
43.
and the exemption granted by the State Government under Section
th
26 of the Act by G.O.Ms.636 dated 29 December, 1983 has
overriding effect over rest of the provisions of the Act.
44. It cannot be said that by amending Section 32, the
legislature intended to bring about a remedial situation
relating to certain classes of buildings which were the subject
matter of exceptions under Section 26 granted in the year 1983.
Such classes of buildings enjoying the benefit of exemption from
the operation of the Act since 1983 cannot be said to have lost
the benefit of exemption by way of such amendment.
45. It is wrong to state that buildings whose rent are upto
Rs.3,500/- in the municipal area and Rs.2,000/- in other area
have been brought into the fold of the Act by amended Section
32(c). In fact, as noticed above, a building whose rent were
upto Rs.3,500/- in the municipal area and Rs.2,000/- in other
area were already covered by the Act in view of original Section
32. But the tenant of such building could not claim protection
in view of exemption granted by the State under Section 26 by
th
G.O.Ms. No. 636 dated 29 December, 1983.
. Sections 26 and 32 of the Act operate in two different
46
fields. Section 32 has been enacted to enable the legislature to
45
provide for non-application of the Act in its entirety without
any qualifications. It is open to the legislature to choose any
subject for such non-application. It can be an area, class of
buildings etc. Section 32 is an independent provision in respect
of the non-application of the Act.
. On the other hand, Section 26 confers power on the
47
Government to exempt buildings or classes of buildings to which
Act is applicable from all or any of the provisions of the Act.
Section 26 has a non-obstante clause, which is widely worded.
The Government need not, for the purposes of exercise of power
under Section 26 take any guidance or be influenced by the
provisions of Section 32.
. We have noticed that at the inception of the Act, tenants
48
of all the buildings, irrespective of rent, were covered under
the Act and were tenants within the meaning of the Act, except
the tenant of any building owned by the Government or building
th
constructed on or after 26 August, 1957, the Act was applied to
all tenants.
th
49 . After striking down of Section 32(b) w.e.f. from 26
October, 1983, though the Act applied to all the buildings, by
th
virtue of G.O.Ms.636 dated 29 December, 1983 issued by State
Government under Section 26 of the Act all buildings for a
period of ten years from the date on which their construction is
completed and buildings the monthly rent of which exceeds rupees
46
one thousand were exempted from the operation of the provisio[ns
of the said Act.
. The effect is that except the tenant whose rent is
50
Rs.1,000/- or below, rest of the tenants in view of exemption
could not claim protection.
51. By amended Section 32 (clause (b) of Section 32), the Act
has been made not applicable to any building constructed or sub-
stantially renovated, for a period of 15 years from the date of
such construction or substantial renovation. In view of such
amendment the first part of exemption granted by G.O.Ms.636 dated
th
29 December, 1983 with regard to all buildings for a period of
10 years from the date of construction has become redundant.
th
Though clause (a) of G.O.Ms.636 dated 29 December, 1983
has become redundant, clause (b) of the said G.O.Ms.636 dated
th
29 December, 1983 still applies to the building the monthly
rent of which exceeds Rs.1,000/- i.e. the building monthly rent
of which is between Rs.1001/- to Rs.3,500/- in the Municipal ar-
eas and Rs.1001/- to Rs.2,000/- in other areas. The aforesaid
buildings whose monthly rent exceeds Rs.1,000/- still continue to
enjoy the exemption granted to them under Section 26 of the Act.
The larger Bench of the High Court wrongly held that clause (b)
47
th
of the G.O.Ms.636 dated 29 December, 1983 has become a redun-
dant in view of the amended Section 32.
In view of the discussion above, we hold:-
52.
(a) Part of Section 32 is prospective and some part of it
is retrospective.
(b) The exemption granted by the State Government under
th
Section 26 of the Act by G.O.Ms.636 dated 29 December,
1983 has overriding effect over rest of the provisions of
the Act.
(c) The buildings whose rents are upto Rs.3,500/- in the
Municipal areas and Rs.2,000/- in other areas were already
covered by the Act and after amendment it continues to be
covered by the Act but the tenants of buildings, rent of
which is more than Rs.1,000/- and does not exceed Rs.3,500/-
in the Municipal area or Rs.2,000/- in other area even after
amendment of Section 32 cannot claim protection in view of
the exemption granted under Section 26 of the Act.
(d) Section 26 and Section 32 of the Act operate in two
different fields. Section 32 relates to non applicability of
the Act to a class of building(s) whereas Section 26 deals
with the power of the State to exempt the building or class
of buildings to which Act is applicable. In fact, there is
no clash between Section 26 and Section 32, as they operate
48
in two different fields and, therefore, the question of
overriding of one over another does not arise.
th
(e) Clause (a) of G.O.Ms.636 dated 29 December, 1983 has
become redundant. However, clause (b) of the G.O.Ms.636
th
dated 29 December, 1983 still holds good.
(f) The suit(s), appeal(s), revision application(s) or exe-
cution case(s) which are pending for determination under the
General Law are not affected by amended Section 32 and will
continue to be decided in accordance with General Law.
In view of the aforesaid discussion and the judgment (major-
53.
th
ity) dated 30 April, 2007 passed by the High Court of Andhra
Pradesh is upheld in so far as it relates to prospective opera-
tion of Section 32(c) and its effect on the pending proceedings.
th
The finding of majority decision dated 30 April, 2007 in
th
regard to clause (b) of G.O.Ms.636 dated 29 December, 1983
declaring the said part of the G.O.Ms. 636 as redundant is
declared bad in law and is set aside. Civil Appeal
Nos.3467-3468, 3471, 3472, 3473, 3474-3475, 3476 OF 2010 and
Civil Appeal No. 2406 of 2015 [@ SLP (C)No.16508 of 2012], Civil
Appeal Nos.7825-7826 OF 2012, Civil Appeal No.2569 of 2013, Civil
Appeal Nos. 2408-2409 of 2015[@ SLP (C)Nos.15154-15155 of 2014]
and Civil Appeal No. 2407 of 2015 [@ SLP (C) No.35787 of 2012]
49
all filed by the tenants are dismissed. Civil Appeal Nos.
2403-2405 of 2015 [@ SLP (C)NOS.15230-15232 of 2012] stand
disposed of in terms of the finding as recorded above. However,
on the facts and circumstances, there shall be no order as to
costs.
…………………………………………………………………………J.
(SUDHANSU JYOTI MUKHOPADHAYA)
………………………………………………………………………J.
(S.A. BOBDE)
NEW DELHI,
FEBRUARY 24, 2015.
50
ITEM NO.1A COURT NO.4 SECTION XIIA
(For judgment)
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Civil Appeal No(s). 3467-3468/2010
SMT. NOORUNISSA BEGUM Appellant(s)
VERSUS
BRIJ KISHORE SANGHI Respondent(s)
(with office report)
WITH
C.A. No. 3471/2010
C.A. No. 3472/2010
C.A. No. 3473/2010
C.A. No. 3474-3475/2010
C.A. No. 3476/2010
C.A. No. 7825-7826/2012
C.A. No. 2569/2013
C.A. No.2403-2405/2015
(@ SLP(C) No. 15230-15232/2012)
C.A. No.2406/2015
(@ SLP(C) No. 16508/2012)
C.A. No. 2407/2015
(@ SLP(C) No. 35787/2012)
C.A. No.2408-2409/2015
(@ SLP(C) No. 15154-15155/2014)
Date : 24/02/2015
These appeals were called on for judgment today.
For Appellant(s) M/s Mitter & Mitter Co., Advs.
Ms. Promila,Adv.
Mr. V. N. Raghupathy,Adv.
Mr. Roy Abraham, Adv.
Ms. Seema Jain, Adv.
Ms. Chandrani Prasad, Adv.
Mr. Himinder Lal, Adv.
Mrs. D. Bharathi Reddy,Adv.
Mr. Pramod B. Agarwala,Adv.
Mr. Ajay Choudhary,Adv.
For Respondent(s) Mr. Sridhar Potaraju, Adv.
51
Mr. Gaichang Pou Gungme, Adv.
Mr. Arjun Singh, Adv.
Mr. Mukunda Rao Angara, Adv.
Mr. Anil Kumar Tandale,Adv.
Mrs. Sudha Gupta,Adv.
Mr. Amit Pawan,Adv.
Ms. T. Anamika,Adv.
Mr. Ashok Mathur,Adv.
Mr. M. Vijaya Bhaskar,Adv.
Mr. M. Shoeb Alam, Adv.
Mr. Talha Rahman, Adv.
Mr. Pranab Kumar Mullick,Adv.
Hon'ble Mr. Justice Sudhansu Jyoti Mukhopadhaya pronounced
the judgment of the Bench comprising His Lordship and Hon'ble Mr.
Justice S. A. Bobde.
Civil Appeal Nos.3467-3468, 3471, 3472, 3473, 3474-3475,
3476 OF 2010 and Civil Appeal No. 2406 of 2015 [@ SLP (C)No.16508
of 2012], Civil Appeal Nos.7825-7826 OF 2012, Civil Appeal
No.2569 of 2013, Civil Appeal Nos. 2408-2409 of 2015[@ SLP
(C)Nos.15154-15155 of 2014] and Civil Appeal No. 2407 of 2015 [@
SLP (C) No.35787 of 2012] all filed by the tenants are
dismissed, Civil Appeal Nos. 2403-2405 of 2015 [@ SLP
(C)NOS.15230-15232 of 2012] stand disposed of in terms of the
signed reportable judgment.
(Nidhi Ahuja) (Suman Jain)
COURT MASTER COURT MASTER
[Signed reportable judgment is placed on the file.]