Full Judgment Text
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PETITIONER:
PRABHA MANUFACTURING INDUSTRIALCO-OPERATIVE SOCIETY
Vs.
RESPONDENT:
BANWARI LAL
DATE OF JUDGMENT14/02/1989
BENCH:
RANGNATHAN, S.
BENCH:
RANGNATHAN, S.
MUKHARJI, SABYASACHI (J)
CITATION:
1989 AIR 1101 1989 SCR (1) 647
1989 SCC (2) 69 JT 1989 (1) 397
1989 SCALE (1)383
ACT:
Delhi Rent Control Act, 1958: s. 2(i)--Plot of land-
allotted by Custodian of Evacuee Property and temporary
structure put thereon-Whether ’Premises’--Suit for eviction
and possession in Civil Court-Maintainability of.
Constitution of India, Article 136: Concurrent findings
of fact-Non-interference by the Court.
HEADNOTE:
The appellant-society was temporarily allotted the
property in question by way of a lease by the Custodian of
Evacuee Property in March, 1949. In the allotment letter it
was described as an ’industrial establishment’ known as open
compound. The inspection report dated January 9, 1951 of the
person who had delivered the possession to the society
described the property as a ’plot’ on which the allottee
promised to start a factory. Sometime thereafter the society
sought reduction of the assessment rent. The order of the
Deputy Custodian thereon dated March 31, 1955 granting the
relief, again described the property as a ’plot’ with a
self-constructed shed. Subsequently, the society through its
letter dated January 21, 1957 requested that the said ’indu-
strial plot’ may be permanently allotted to it. However, the
Custodian chose to sell the property by auction on July 15,
1960 in favour of the predecessor in-interest of the re-
spondent. The society moved to have the said sale set aside
and in its application dated October 15, 1960 made to the
concerned authority it mentioned the property as an ’indu-
strial plot’. That application was eventually rejected by
the Chief Settlement Commissioner on August :25, 1961. In
its revision petition before the Government of India the
contention of the society was that the plot was allotted to
the society for industrial purpose and they had erected a
building and installed machinery thereon. The Government
order rejecting the revision petition too started with a
recital that the Custodian had allotted ’an open plot of
land’ to the society for industrial purposes and that the
society had erected ’a temporary structure’ on the plot and
also installed some machinery.
648
On February 15, 1968 the appellant society filed an
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application under s. 44 of the Delhi Rent Control Act, 1958
seeking permission to make repairs to the premises in ques-
tion. The owners resisted the said application on a prelimi-
nary objection that the petitioners were not tenants of any
premises within meaning of the Delhi Rent Control Act. The
Controller found that what was allotted to the petitioner
society was only a plot and that the shed was self-con-
structed. The petitioner, therefore, being a tenant only
with respect to an open site, which did not come within the
definition of a ’premises’ as contemplated by the Act, the
petition under s. 44 was not maintainable.
The respondent instituted a suit against the society in
1977 seeking its eviction and possession stating that the
property was only a plot of land and not ’premises’ within
the meaning of Delhi Rent Control Act, and that the plain-
tiffs had terminated the tenancy of the defendants. All the
three courts below held in his favour.
In this appeal it was contended for the appellant-socie-
ty that the property in question was a ’building’ within the
meaning of the Delhi Rent Control Act, 1958 the eviction
from which could be sought by the landlord only from a Rent
Controller on grounds specified in the Act and not by a suit
in a civil court under the Transfer of Property Act read
with the Code.of Civil Procedure; that the references in the
allotment letter to ’industrial premises’, to the ’industri-
al establishment known as open compound’, and to the ’facto-
ry/workshop/industrial establishment’ clearly showed that
what was allotted to the society was not a mere plot but an
industrial premises.
Dismissing the appeal,
HELD: 1. The property allotted to the appellant-society
in respect of which it was a tenant initially under the
Custodian and later under the plaintiff-respondent was only
a plot of land. The plaintiff was, therefore, justified in
attempting to recover possession thereof by a suit for
possession in a civil court. [664F-G]
2. The letters addressed by the society to the Custodian
and the Settlement Commissioner as well as the application
for reduction of rent and the order, thereon, are valuable
pieces of evidence both because they are anterior to the
litigation between the parties and also because they re-
flected the representations of the society to, and the
findings of the very authority that allotted the said
property. The society represented that it had been’ allotted
only a plot of land and that
649
the shed had been put up thereon by itself and this plea
would not have been accepted by the Custodian had it not
been correct. Both in the opening sentence as well as in the
body of the order there is a clear finding to this effect.
This is a very strong circumstance to show that what was
allotted to the society was only a plot of land. Further-
more, the findings of the Rent Controller in the application
under s. 44 of the Rent Control Act filed by the society,
right or wrong, had attained finality as between the parties
and it was not open to the society on principles analogous
to res-judicata to take a contrary stand in these proceed-
ings. [659F-H;660A]
3. The reference to ’industrial premises’ in the allot-
ment letter cannot be construed as a reference to ’premises’
within the meaning of the Rent Control Act. It was obviously
a cyclostyled proforma allotting an item of evacuee property
and except for the portion where it contained a description
of the property in question viz., ’open compound’, it only
contained terms applicable to allotment generally. [661F-H]
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4. The finding on the point of the courts below are
concurrent findings on a question of fact. This Court under
Article 136 of the Constitution does not normally reappraise
the evidence or interfere with such concurrent findings of
fact, even if it is possible on the facts to come to a
contrary conclusion. [663G]
The decree for eviction not to be executed till February
28, 1990 provided the persons in occupation of the premises
file the usual undertaking. [664G]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1504 of
1980.
From the Judgment and Order dated 20.5. 1980 of the
Delhi High Court in Regular Second Appeal No. 18 1 of 1979.
S.K. Mehta, D. Mehta, A. Vachhar and Atul Nanda for the
Appellant.
Dr. Shankar Ghosh and Ashok Grover for the Respondent.
The Judgment of the Court was delivered by
RANGANATHAN, J. The appellant, a cooperative society,
(hereinafter referred to as ’the society’), resists a suit
for possession
650
laid by the respondent, contending that the property in
question is a ’building’ within the meaning of the Delhi
Rent Control Act, 1958 (’the Act’), the eviction of a tenant
from which can be sought by the landlord only from a rent
controller on grounds specified in the Act and not by a suit
in a civil court under the Transfer of Property Act read
with the Code of Civil Procedure (C.P.C.). This contention
of the appellant has been rejected, concurrently, by the
Assistant District Judge, the Additional District Judge and
the High Court. In this appeal, counsel for the appellant
seeks to persuade us that all the three courts have decided
erroneously a substantial question of law raised by it and
that they ought to have dismissed the suit instead of de-
creeing it. To get a cogent idea of the history of the
litigation concerning this property and to properly appreci-
ate the contentions urged, it is necessary to set out the
relevant facts at some length.
2(a) The property in question originally belonged to one
Khan Din Hussain Din but it came to be vested in the Custo-
dian of Evacuee Property on the owner being declared an
evacuee on the eve of the partition of the country. The
Custodian leased it out to one Pritam Chand who occupied it
in September 1947. There is on record an undated survey
report in a "proforma for residential premises" which per-
tains to the period when Pritam Chand was in occupation. It
described the property covered by it thus:
1. Locality or street Hamilton Road, Delhi
2. H.C. No. III/1403-1406
3. No. & size of rooms 15’ x 15’ shed, 3’ x 8’
10’x 10’, 10’x 10’
10’ x 10’ Ver 40’ x 8’
shed 35’ x 10’ Open
space 50’ x 45’ use as
Motor Lorry Workshop.
(b) Subsequently, the allotment in favour of Pritam
Chand appears to have got cancelled and the Society applied
for the allotment of the property to it for starting a
factory. The application was granted and the property was
allotted, by way of a lease, to the Society by an order
dated 28.3.1949. It is necessary to extract this order in
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full:
ORDER
"Subject: Allotment of industrial premises.
651
With reference to your application
dated-------I have to inform you that Indus-
trial Establishment known as open compound at
Hamilton Road (Portion of Jai Hind Motor
Works) with 25 Front and 50 deep together with
all the machinery and accessories kept there-
in has been allotted to you. Possession of the
factory/workshop/Industrial establishment will
be delivered to you immediately after your
fulfilling the following conditions namely:
1. Delivering at this office a
communication addressed to the Custodian
undertaking to pay such deposit and rent as
may be assessed and required to be paid and to
execute the lease on the prescribed form.
2. Filling a duly attested affidavit
as per form ’A’ attached herewith.
3. Possession of stocks of consuma-
ble goods and other stores and material, if
any, will be given to you for safe custody as
caretaker until the disposal thereof.
Assistant Custodian Industrial is
hereby required to deliver the possession of
factory/workshop/Industrial Establishment and
other moveable property kept therein (to) the
above named allottee after satisfying himself
that he has fulfilled conditions laid down
above. If necessary, the enforcement section
will help the Assistant Custodian and the
allottee of the property in accordance with
the procedure prescribed under law."
(c) A report on the use of the allotted plot submitted
on 9.1.51 is of some relevance. It clarifies that no machin-
ery had been allotted to the Society and that power was
being fitted. It says then:
"I have found nobody at the premises except a
Gorkha Chowkidar. I remember it very well that
in the presence, I gave the possession of the
above-said plot to allottee who promised that
they want to start a factory very soon, but it
is regretted that no advantageous use of the
premises is being made by the Co-operative.
However, I have seen new power connection
being fitted on the premises. The work might
have (then) set back due to non-availability
of power. Any how we must consult the file and
subsequently call the allottee."
652
(d) It appears that Pritam Chand was attempting to get
the allotment to the Society cancelled on the allegation
that it had unauthorisedly sublet the property. A letter was
written, in this context, by the Assistant Registrar of
Cooperative Societies to the Custodian on 15.5.1954. This
letter, on the subject of"Allotment of Industrial Premises",
reads as under:
"Kindly refer to your order No. DC/IV/A/185
dated the 28th March, 1949 on the above sub-
ject under which the house No. 2939-III/1403-
1406 on Industrial Establishment known as open
compound at Hamilton Road (Portion of Jai Hind
Motor Works with 25’ front and 56’ deep)
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together with all machinery and accessories
kept therein, was allotted to the Prabhat
Manufacturing Co-operative Industrial Society
Ltd.
Before allotment one Shri Pritam
Chand was occupying the whole premises. He is
now again trying to take the premises allotted
to the society. He therefore filed an applica-
tion to the Assistant Custodian against the
Society alleging that the premises had been
sublet to Shri Ajit Singh Duni Chand and
Banwari Lal. The Assistant Custodian served
the Society with a notice for cancellation of
allotment of the said premise. The fact is
that Shri Ajit Singh, is the Secretary of the
Society and Shri Duni Chand and Banwari Lal
were its members. The question of subletting
does not arise. A Government loan of Rs.4,000
was also advanced to the society under the
Rehabilitation Scheme. Under the above circum-
stances I would request you to allow the
Society to function in the allotted premises,
so that it may be able to repay the Government
loan advanced to it."
(e) The Society made an attempt to have the assessment
of rent reduced. The order of the Deputy Custodian dated
31.5. 1955, under which this relief was granted reads thus:
"This is revision petition by M/s Prabhat Mfg.
Cooperative Socio Industrial Society Ltd.,
against the assessment of rent. The petitioner
has got a plot. There is a small shed on this
plot also. The petitioner was assessed on the
rental of Rs.50 on the basis of the M.A.R. It
is contended before me that there is no M.A.R.
for property No. 2939
653
but there is joint M.A.R. for house No. 1403-
6. From the copy of the assessment sheet, (it)
appears that 1403-1406 is equivalent to 2939-
40. It is not clear therefore whether new
number has got an assessment of Rs.50 or there
are several numbers included in this assess-
ment. I find that I inspected this house on
20th March 1953 and asked the S.D.O. to let me
know the value of the plot and probable rent.
At that time he had assessed the value of the
plot at Rs. 10970. The present value of course
will be more than that. However, on the basis
of this valuation, the rent of the petition-
er’s plot if it were a vacant plot would work
out to Rs.327 per month exclusive of house
tax. There is a small shed also which is
alleged to be self constructed. Considering
therefore all the circumstances I fix the rent
of the petitioners plot at Rs.35 per month. As
the petitioner is a cooperative society, I
direct that rate should have retrospective ef-
fect. The petitioner is, however, directed to
clear the arrears within fortnight."
(f) After this order was passed, a survey report was
made on 15.7.1955 which describes the property in the occu-
pation of the Society thus:
1. Sr. No.
2. Road, Street, lane or Mohalla Hamilton Road
3. Municipal House No. (old) III/l/4 (1403-6) old
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2939 (new)
4.
5.
6. Accommodation available Plot with tin shed
No. & Size of rooms store 27 ft. North
rooms, verandah, kitchen, 61 ft. East
bath, courtyard etc. 64.8 ft. West
24 ft. South
15. Description of present Manufacturing concern
occupation i.e. business Motor accessories and
service (Govt. or Pvt.) tools Regd. No. 199
other occupation) dated 24.3.49.
16. Rent previously fixed Rs.50 reduced to
for the accommodation Rs.35
3.(a) Having thus got the plot on lease, the Society
tried to acquire the property for itself. There is on record
a letter of the Society dated 21.1.1957 requesting that the
"industrial plot" may be perma-
654
nently allotted to it.. However, the Custodian chose tO sell
the property by auction on 15.7.60 in favour of one Dina
Nath (the predecessor-in-interest of the present respondent
Banwari Lal). The upset price was Rs.21,000 and the sale was
for Rs.23,000. Unfortunately, however, except the informa-
tion that sale deed in favour of Dina Nath was executed on
13.7.61, there is no document on record about the exact
nature and condition of the property thus sold.
(b) The Society moved to have the sale set aside on the
ground that, as the value of the property was less than Rs.
10,000, it should have been sold to the Society itself as
the allottee and not to an outsider. In the course of these
proceedings, it made an application on 15.10.60 to the
concerned authority for a copy of the order declaring the
property to be saleable, the first paragraph of which reads
thus:
"The above mentioned property an Industrial
Plot on Hamilton Road No. 2939 (old No. 1403-
1406) was sold by auction on 15.7.60."
(c) The application of the Society was, eventually,
rejected by the Chief Settlement Commissioner on 25.8.1961
and so the appellant filed a revision petition before the
Government of India. In this petition, it is seen, the
Society tried to take advantage of a Press Note of the
Government which enabled an allottee who had invested more
than Rs.30,000 in a property to get a priority when the
property came to be allotted but this attempt was also
unsuccessful. Certain reports submitted by the concerned
authorities in the context of the Society’s application have
been placed on record. On 21.3. 1962, the Executive Engineer
reported.
"The land under property in question has been
assessed at Rs. 17,500 while the structure
value of it has been assessed at Rs.3,883
giving a total value of Rs.21,383. The reserve
price of this property has been fixed at
Rs.21,000"
Reports submitted by one T.C. Dewan contain the following
observations:
"I have been to the premises and obtained a
list of machinery now installed in the prem-
ises. The copy of the letter dated 21.3.56
addressed to the C.S.C. is also attached. M/s
Prabhat Mfg. Co-op. Industrial Society want to
have the premises transferred to them as
Industrial concern.
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655
The property has already been
auctioned on 15.7.1960.
The sale certificate has been issued
in favour of Dina Nath s/o Charan Das on
13.6.61."
"I have to submit further that a part of the
superstructure was evacuee and was valued with
the plot. Some portion has been made as a
temporary shed etc. The position can be made
clear by consulting the valuation schedule on
the property. The portion which was included
in the valuation at that time means at the
time of auction as noted it was definitely an
evacuee structure. The rest is non evacuee
raised by the occupant."
It also appears that, in the course of these proceedings,
Ajit Singh, on behalf of the Society made a statement to the
following effect in May, 1962:
"The above Society is in occupation of the premises since
the year 1949. There was only a shed built in the premises
but the other portion was open plot when it was allotted to
us. The entire machinery has been installed by the Co-op.
Society. I can supply inventory of the machinery which has
been installed by the Society would be produced on 8.5.62."
(d) The Society’s revision petition was-rejected on
6.8.62. The order of the Joint Secretary to the Government
of India starts with a recital that the Custodian had allot-
ted "an open plot of land" to the society for industrial
purposes, and that the Society had erected "a temporary
structure on this plot and also installed some machinery".
In para 3, the contention of the Society is stated to be
"that the plot was allotted to the Society for industrial
purposes and they erected a building and installed machinery
worth about Rs.30,000 in it." The order proceeds:
"... the valuation officer was asked to assess
the value of the land, building and machinery.
After a spot inspection he reported that the
value of land and building was about
Rs.21,000, whereas the value of the machinery
installed in March, 1956, according to the
vouchers produced before him by the Society
came to only Rs.6,585. Hence, the value
656
of the machinery did not exceed that of the
land and building. Further, the Press Note of
the 22nd March, 1956 required such allottees
to submit applications to the Regional Settle-
ment Commissioner concerned with a certificate
from the Director of Industries of the State
that they had established factories under the
Commissioner, New Delhi.
4. It is, therefore, clear that this
case is not covered by the Press Note of 22nd
March, 1956. The property in their occupation
was rightly auctioned."
4. Now we come to the third chapter of the story. Dina
Nath, the purchaser of the property filed suit No. 155 1/62,
in the court of Rent Controller, Delhi seeking eviction of
the appellant society from the property in question on the
ground of sub-letting, misuser, default in payment of rent
and requirement of the premises for the bona fide use of the
owner. The Rent Controller dismissed the petition. It is
seen from the order of the Rent Controller that the owner
had alleged that a portion of the demised premises had been
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sublet, assigned or otherwise parted with to M/s. Malviya
Industries after 9.6.1952 without obtaining the written
consent of the landlord. The respondent had shown that
Malviya Industries was a proprietory concern of Ajit Singh,
who was in possession of the whole premises as a Secretary
of the appellant society and that, apart from the fact that
the goods manufactured by the society were sold through
Malviya Industries, there was nothing to show that any
particular portion of the property in question was exclu-
sively used by Malviya Industries. It also appears that the
owner alleged that he required the premises in question for
purposes of re-building it. The controller held that as the
property had been given to the tenant for residential pur-
poses and the proposed reconstruction would change the
character of the premises, this was not permissible under
the Act, and therefore, the landlord could not be said to
require the premises bona fide for re-building. On behalf of
the appellant it is urged that the fact the landlord filed a
rent control eviction petition as well as a finding in the
order of the Rent Controller dated 16.1.1967 clearly show
that the property in question was a ’building’ falling
within the scope of the Delhi Rent Control Act. It is also
pointed out, from a copy of the application for eviction
placed on record, that in para 5 of the application it was
stated that a workshop was situated on the piece of land and
about 20 people (approx.) were working therein and the
details of the accommodation were shown as comprising of one
tin shed as shown in the attached plan.
657
(b) In 1964 the society filed suit No. 294 of 64 against
Dina Nath and others. In this suit it prayed for an injunc-
tion restraining the defendants from interfering with its
possession and lawful enjoyment of the property, inter alia,
by preventing the plaintiff from carrying out the necessary
repairs to the premises in question. This suit was filed
during the pendency of the earlier suit filed in the rent
controller’s court. It was alleged that the portion of the
roof had started leaking and that, when the plaintiff began
to make the necessary repairs to the premises, the defend-
ants began to interfere illegally with its possession with
the ulterior motive of securing the possession of the prem-
ises otherwise than in due course of law. The defendants
resisted this suit. It appears that this suit was eventually
dismissed but further details are not available.
(c) It also appears that Banwari Lal had filed a suit
for permanent injunction against the Society restraining it
from erecting any new structure on, or making any additions
or alterations to the property in question. It is said that
in one of the affidavits filed in the course of these pro-
ceedings Banwari Lal stated as follows:
"3. That the defendant is tenant of ground
floor consisting of a tin shed in house No.
2939, Hamilton Road, Delhi at a monthly rent
of Rs.35 which is a single storeyed property.
4. That the defendant has got no right title
and interest to erect any new structure on the
first floor or to make any additions and
alterations in the aforesaid property without
the consent of the plaintiff."
There is no further information available regarding this
suit.
(d) One more proceeding instituted by the appellant
society has also to be referred to: On 15.2.1968, the appel-
lant filed an application under section 44 of the Delhi Rent
Control Act, 1958 (Suit No. 169-M of 1968-69), seeking
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permission to make repairs to the premises in question. This
application was resisted by the owners on a preliminary
objection that the petitioner were not tenants of any prem-
ises within the meaning of Delhi Rent Control Act. This
application was dismissed on 9.3.1972. It is necessary to
extract paragraph 5 of this order since it is relevant to
the controversy presently in question:
"5. I also find it established on record that
the petitioner society is a tenant only with
respect to an open site and the
658
structure thereon namely, the shed itself
constructed by the tenant. It is admitted
(that) by Ajit Singh, who states himself to be
the Secretary of the Society by the custodian,
as it was an evacuee property. A reference to
the allotment order Ex. RW 1/1 which was
produced by the clerk of the office concerned,
examined as R.W. 1 shows that the subject
matter of the allotment of the petitioner
society was an ’Open Compound’. It is further
clear from the copy of an order Ex. R.W. 1/1
that it was stated by the tenant, namely the
petitioner society before the custodian’ that
the shed was self constructed and the rent was
got reduced from Rs.50 per month to Rs.35 per
month. This continues to be the rent upto
date, according to be that the petitioner
society continues to be in occupation of the
same property, as it was, when it was allotted
to them by the Custodian, and it is estab-
lished from the evidence of the clerk of the
office of the Custodian. R.W. 1 and the orders
produced by him, namely R.W. 1/1 and R.W. 2/2,
as well as the survey report Ex. R.W. 1/3 that
what was allotted to the petitioner society,
was only a plot and that the shed was self
constructed. The petitioner has failed to
substantiate the contention that the respond-
ent himself has treated him/them/as a tenant
because no certified copy of the previous
pleadings has been placed on the file. The
petitioner, therefore, being a tenant only
with respect to open site, which does not come
within the definition of a ’premises’, as
contemplated by the Delhi Rent Control Act the
petition under sec. 44 of the act, is not
entertainable."
5. The suit out of which the present appeal arises has
to be understood in the context of the above previous histo-
ry. In 1977 Banwari Lal instituted suit No. 318/77 against
the Society seeking eviction of the Society from "the plot
of land in question". It was alleged that the plaintiff was
the owner of the above said plot and that the defendant had
put up a shed thereon. It was alleged that the Society had
been occupying the property much earlier and that the plain-
tiff who came to the scene much later had mistakenly thought
that the defendant was the tenant of both the land and the
shed put up thereon and accordingly filed the petition under
the Rent Control Act for evicting the Society. Subsequently
it was said, after examining the records of the Custodian
and allotment letter in favour of the defendant he had come
to know that the shed had been constructed by the defendant
and that, as such the property from which the eviction
659
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was to be sought was only a plot of land and not ’premises’
within the meaning of the Delhi Rent Control Act. In these
circumstances, it was claimed that the plaintiff had termi-
nated the tenancy of the defendants and that the suit was
being filed to recover possession of the property from the
tenants. As mentioned earlier, the plaintiff has succeeded
in all the three courts and hence the present appeal.
6. Shri S.K. Mehta, learned counsel for the Society,
contends that in this case both the parties had taken up
inconsistent stands at different stages of the litigation
and that, in that state of affairs, the courts below should
have ignored the past conduct of both the parties and gone
by the contents of the documents of title in order to decide
the matter. Instead, he complains, the courts have held the
conduct of the Society in some of the prior litigation as
negativing its claim but, when it came to a consideration of
the like conduct on the part of the plaintiff, they have
chosen to make light of it, accepting the lame excuses put
forward on his behalf. We shall, therefore, consider, at the
outset, the impact, if any, of the earlier proceedings in
this case on the question at issue.
7. The detailed narration of facts set out earlier will
show that the parties have not been consistent in their
stands and have tried to blow hot or cold as the occasion
suited them. Taking up the stand of the Society first, the
Society, in its application to the custodian for reduction
of rent claimed--successfully--that what was allotted to it
was only a plot of land and that the small shed thereon had
been put up by the Society itself. So also, in its applica-
tion for allotment dated 21.1. 1957 and 15.10.1960, it
referred to the property only as an industrial plot. The
letters addressed by the Society to the Custodian and Set-
tlement Commissioner as well as the application for reduc-
tion of rent and the order thereon are valuable pieces of
evidence both because they are anterior to the litigation
between these two parties and also because they reflect the
representations of the Society to, and the findings of, the
very authority that allotted the property to the Society.
The Society represented that it had been allotted only a
plot of land and that the shed had been put up thereon by
itself and this plea would not have been accepted by the
Custodian had it not been correct. Shri Mehta tried to argue
that the Custodian has only reduced the rent on general
grounds and has given no finding that only a plot had been
allotted to the Society but we are unable to accept this
contention as both in the opening sentences as well as in
the body of order there is a clear finding to this effect.
This is a very strong circumstance to show that what was
allotted to the Society was only a plot of land. Secondly,
660
the findings of the Rent Controller in the application under
section 44 filed by the Society, right or wrong, have at-
tained finality as between the parties and it is not open to
the Society on principles analogous to res judicata to take
a contrary stand in these proceedings.
8. It is true that in the suit for injunction filed in
1964 as well as in its application under section 44 of the
Rent Control Act the Society took up a contrary position and
claimed that the property was tenanted ’premises’. It is not
clear why the Society filed the suit if the property was
subject to the Rent Control Act and, though it appears that
the plaintiff pointed out that the property was the subject
of proceedings under the Rent Control Act, the suit was
eventually dismissed without any findings. Again, the Socie-
ty’s claim in the second set of proceedings was rejected by
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the Rent Controller in a reasoned order on 9.3.1972. The
statement of Ajit Singh of May, 1962 is ambiguous, as it
says on the one hand that there was a shed but also says on
the other that what was allotted to the Society was only an
open plot. These are, therefore, not of much help to the
Society.
9. Turning next to the stand of the plaintiff, in Decem-
ber 1962, soon after acquiring the property, he applied to
the Rent Controller-though unsuccessfully--for the eviction
of the Society on the allegation that the property comprised
a shed, that it-had been unauthorisedly sublet and that the
plaintiff required it for reconstruction as residential
premises. His explanation that this was due to some mistaken
notion has been accepted by the first appellate court.
Counsel for the appellant contends that this was a naive
explanation which should not have been accepted as the
material on record shows that Banwan Lal and Dina Nath were
members of the Society and were fully aware of all the
transactions and activities of the Society right from the
inception and could not have been unaware of the nature of
the property allotted to the Society as alleged. There is
some truth in this but at the same time, it should be appre-
ciated that, when filing this application, the plaintiff
might not have been fully aware of all the legal implica-
tions of the situation. At the time of the action, the
property consisted of a land and shed. If the land belonged
to the Custodian and the shed had been put up by the Socie-
ty, what was sold to the plaintiff was really only the
right, title and interest of the Custodian and the plaintiff
could not have become the owner of the shed superstructure.
Strictly speaking, the Society was the tenant only in re-
spect of the land but it is possible that, without examining
the niceties as to what was the original allotment and the
effect of subsequent structure having been put up on it by
the lessee, the plaintiff may just have tried
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to evict the Society by resort to the Rent Control Act. The
question whether the property was ’premises’ within the Rent
Control Act was not put in issue in that case and the deci-
sion of the Rent Controller also rested on a very narrow
finding which has no relevance to the point at issue. We,
therefore, think, that these proceedings do not affect the
present case of the plaintiff, particularly in view of the
specific findings given by the Rent Controller in the Socie-
ty’s application.
10. Summing up the position, therefore, it seems to us
that the history of the earlier litigation and findings
given in the orders therein support the plaintiff’s case
rather than that of the Society as held by the courts below.
That apart, we do not think the position is different
even_if, as urged by Sri Mehta, we ignore all these proceed-
ings as unhelpful to either side and concentrate only on the
documents on which Shri Mehta relies as supporting his plea
that the Society had got an allotment of not a mere plot of
land but of a building as well.
11. The first and most important document on which Shri
Mehta places great reliance is the order of allotment dated
28.3.1949 by the Custodian in favour of the Society. Counsel
lays stress on the references in it to "industrial
premises", to the "industrial establishment known as open
compound ... (portion of Jai Hind Motor Works)", to "the
factory/workshop/industrial establishment", to "possession
of stocks of consumable goods and other stores and material,
if any", "and other movable property kept therein" and
contends that the document clearly shows that what was
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allotted to the Society was not a mere plot of land but an
industrial premises.
12. We are unable to accept the above contention for a
number of reasons. In the first place, the reference to
’industrial premises’ in this letter cannot be construed as
a reference to ’premises’ within the meaning of the Rent
Control Act. The letter also refers to the allotted property
as factory, workshop and industrial establishment though,
admittedly, there was no such factory, workshop or estab-
lishment in existence on that date. The letter also refers
to stocks of consumable goods, stores and movable property
on the property but it is common ground that there was none
of these things on the site at the time. It was obviously a
cyclostyled proforma allotting an item of evacuee property
and, except for the portion where it contains a description
of the particular property in question viz. "open compound
at Hamilton Road (portion of Jai Hind Motor Works) with 25
front and 50 deep", it only contains terms applicable to
allotments generally. In this case the
662
particular description is not of much help either. That the
property was "known as office compound" does not necessarily
mean that there were premises inside the compound as was
sought to be suggested. It is equally consistent with the
claim that it was only an open plot of land inside a com-
pound on which some motor works were located.
13. Secondly, in the absence of a clear indication of
the nature of the property in the allotment letter, we may
refer to the other documentary evidence on record. The
inspection report of the person who delivered the property
to the Society dated 9.1.1951, the order dated 31.3.1955 of
the Deputy Custodian, the letters of the Society dated
21.1.1957 and 12.10.1960, the revision petition filed by the
Society as well as the order dated 6.8.1962 thereon clearly
indicate that what was allotted to the Society was only a
plot of land and that the Society had put up a temporary
structure and installed some machinery on it. The importance
of these documents, as indicated earlier, lies in the fact
that they arise out of proceedings between the allotting
authority and the Society and relate to a point of time
anterior to the commencement of the litigation between the
Society and the plaintiff. Shri Mehta invited our attention
to the reports called for and submitted in connection with
the application under s. 33 of the Displaced Persons Act
filed by the Society. He pointed out that the report of the
Executive Engineer shows that the reserve price for the
auction sale of the property was fixed at Rs.21,000 by
taking into account the value of the land at Rs. 17,500 and
the value of the structure of Rs.3.883 (in all Rs.21,303)
and that this had been further clarified by the report of
T.C. Dewan. But, as rightly pointed out by Dr. Ghosh for the
plaintiff, these were only reports submitted in 1962 (much
later than the allotment) in the context of justifying the
action of the department in auctioning the property in 1960
instead of allotting it to the occupant Society. As men-
tioned earlier, the Society itself had pleaded in its appli-
cation that it had been allotted the land and that it had
put up structure and machinery thereon worth Rs.31,000. It
is clear that the machinery installed by the Society on the
land was not considerable. It is seen from the order on the
revision petition that the Society could prove installation
of machinery only to the extent of Rs.6,585. The effort of
the Society was, therefore, apparently to contend that it
had been allotted only the land for which an upset price of
Rs.21,000 had been fixed and that since it had also put up a
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structure and installed machinery worth Rs.31,000, the
property should not have been sold in auction. An inspection
was ordered and report of the Executive Engineer indicates
that the value of Rs.21,000 had been fixed taking into
account both the land and-the structure thereon and not
merely for the
663
land. The report of T.C. Dewan was also to the effect that
the upset price of Rs.21,000 fixed in 1960 had taken into
account a part of an evacuee structure that had already
existed on the land. These reports were thus drawn up in the
context of a controversy between the parties as to the
nature of the property allotted and the manner in which it
had been valued at Rs.21,000. These reports drawn up several
years after. the allotment, and intended to justify the
department’s action, cannot be of much evidentiary value. It
is also significant that, although Dewan’s report states
that "the position can be made clear by consulting the
valuation schedule’ of the property" no attempt was made to
bring on record the valuation schedule which must have been
drawn up at the time of the sale, before fixing the upset
price at Rs.21,000. These documents cannot, therefore, be
relied upon as to the state of the property when it was
allotted to the Society.
14. Thirdly, the survey reports referred to by us earli-
er are helpful in indicating how the confusion in the case
could have arisen. The report made at the time of Pritam
Chand’s occupancy obviously covers a much more extensive
property which consisted of an open space of area 50’ x 45
which was used as motor lorry workshop and a number of sheds
and a verandah. If we read the letter of allotment in the
context of this report, it is clear that what was allotted
to the Society was only a portion of the Jai Hind Motor
Works measuring 50’ x 25’. This makes it abundantly clear
that only an open space was allotted to the Society. Even
the report of 1955 shows the property (though somewhat
larger in size than 50’ x 25’ shown in the allotment letter)
only as a plot with tin shed. As, even on the Society’s own
showing, it had put up a shed on the plot, we again reach
the position that what was originally allotted was only a
plot of land.
15. The allotment letter and the other documents re-
ferred to by counsel for the Society do not, therefore,
further its case. On the contrary, they only reinforce the
conclusion of the courts below. Actually, the findings on
the point of all the three courts are concurrent findings on
a question of fact. The Additional District Judge has co-
gently collected together all the circumstances which mili-
tate against the Society in its judgment and the High Court
has approved this summing up. This Court does not normally
reappraise the evidence or interfere with such concurrent
findings of fact, even if it is possible on the facts to
come to a contrary conclusion. We have, however, discussed
the material at great length and practically reviewed the
entire evidence on record as Shri Mehta submitted that the
property is at present occupied by a larger number of mem-
bers of the petitioner Society who are carrying on small
business and that they will all be
664
thrown out on the road as a result of the decision of the
courts below. Even so, for reasons discussed above, we do
not think we can come to a contrary conclusion on the mate-
rial on record.
16. The High Court has gone one step further. It has
indicated that, even if one accepted the best case of the
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appellant Society--that there was a shed on the land even at
the time of the original allotment--such plot-cum-shed
cannot convert the land into ’premises’ within the meaning
of the Rent Control Act. This was the prima facie view of
the court as it did not hear arguments from the parties on
this point. Counsel canvassed this point before us also.
Shri Mehta, referring to Corporation of City of Victoria v.
Bishop of Vancouver Island, AIR 1921 PC 240; Karnania
Properties Ltd. v. Augustin, [1957] SCR 20; State of Bombay
v. Sardar VenkatRao Krishna Rao Gujar, [1963] 1 SCR 428 and
Ghanshiam Das v. Devi Prasad & Another, [1966] 3 SCR 875
contended that the definition of premises envisages a build-
ing and that, as per these decisions, anything that is built
on land, even if it is only a kacha shed, would be a build-
ing and this brings the property in question within the
purview of the Act. On the other hand Dr. Ghosh sought, by
analogy of the principle of the decisions in Uttam Chand v.
S.M. Lalwani, AIR 1965 SC 716; S.M Gopalkrishna Chetty v.
Ganeshan & Ors., [1973] 1 SCR 273 and Morarji Goculdas Deoji
Trust & Ors. v. Mahadev Vithan Kutwa, [1983] 1 RCJ 195, to
contend that what the Rent Control Act contemplates is a
building let out qua building, may be with appurtenant land,
but not a land let out for use as land merely because there
may be a small building on it. The relevant question, he
says, is what was the dominant subject matter of the allot-
ment--the land or the building and this is a question which
can only be decided in the respondent’s favour. We do not
consider it necessary to embark on a discussion of this
aspect as we are satisfied, for the reasons already dis-
cussed, that the property allotted to the Society in respect
of which it was a tenant, initially under the custodian and
later under the plaintiffs, was only a plot of land and that
the plaintiffs were justified in attempting to recover
possession thereof by a suit for possession in the civil
court.
It is further directed that the decree for eviction will
not be executed till 28.2.1990 provided the persons who are
in occupation of the premises in question file an undertak-
ing containing the usual terms within four weeks from today.
17. The appeal, therefore, fails and is dismissed but,
in the circumstances, we make no order as to costs.
P.S.S. Appeal dismissed.
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