Full Judgment Text
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CASE NO.:
Appeal (civil) 2152-2153 of 1999
PETITIONER:
Raichurmatham Prabhakar & Anr.
RESPONDENT:
Rawatmal Dugar
DATE OF JUDGMENT: 12/04/2004
BENCH:
R.C. LAHOTI & ASHOK BHAN.
JUDGMENT:
J U D G M E N T
R.C. Lahoti, J.
There are two cases relating to two premises, both being part of
the same building, owned by the same owners but held on tenancy by
two tenants. The two premises are described as Door Nos.11-45-60
and 11-45-60/A situated at Thavvavari Street of Vijayawada. The
tenants in the two premises were holding each at a monthly rent of
Rs.250/- under the appellant-landlords. For convenience sake we
would refer to the parties only as ’landlord’ and ’tenant’.
The landlord initiated proceedings for recovery of possession
over the tenancy premises alleging that the same were required bona
fide by the landlord for the immediate purpose of demolishing and
such demolition was to be made for the purpose of erecting new
building on the site of the building sought to be demolished, a ground
contemplated under Clause (b) of sub-Section (1) of Section 12 of the
A.P. Buildings (Lease, Rent and Eviction) Control Act, 1960
(hereinafter ’the Act’, for short). The landlord was successful in both
the proceedings and vide the order dated 21.2.1986, the Rent
Controller directed the two tenants to put the landlord in possession of
the tenancy premises within one month from the date of the order.
The tenants preferred appeals which were dismissed on 5.2.1987.
The time appointed for compliance by the tenants was extended by
one month. The tenants delivered possession over their respective
shops to the landlord on 5.3.1987. The landlord gave an undertaking
to the effect that on completion of the work of repairs and alteration
etc. in the building the same will be offered to the tenants.
The work was completed by the landlord within six months. On
3.9.1987, the landlord sent an offer to each of the two tenants to
occupy the rebuilt premises subject to payment of Rs.2400/- p.m. by
each of the two tenants. The area of the two shops in question before
renovation was 27 ft. x 11 ft. = 297 sft. each. It appears that the
building continues to be non-residential as before but it has undergone
structural alterations of far-reaching character. It is clear from the
description of premises contained in the offer in writing made by the
landlord on 03.09.87, relevant parts whereof read as under:__
"You are aware that in my building D.no.11-45-
60/A in Tavvavari Street, Vijayawada-1, in front of the
Room (which was leased to you previously), a new shop
room measuring about 11 x 12 feet has been constructed
with the concrete Pillers, RRC roofing and iron shutter
facing the northern side. The previous room which is now
situated inside of this newly constructed shop room, is
completely altered by removing the wooden door,
window, walls, middle piller, arches, and partition walls,
and by putting new iron beams (girders) in the place of
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partition walls and by constructing new walls, by
removing wooden beams (girders) in their places, by
carrying out new cement planting to all walls, and raising
height of the ground floor to one foot and putting new
cuddappha stone slab flooring. All these rooms including
newly constructed front shop room are being completely
altered constructed with new additional constructions in
order to make one big shop measuring about 40 x 11 feet
with decent appearance as suitable for the offices, or
wholesale shops. x x x
I offer this newly constructed shop/hall (with iron
shutter) measuring about 40 x 11 feet (including newly
constructed front shop room) to you for lease for the rent
of Rs.2400/- Rupees two thousand four hundred only per
month, and this rent is according to the market rate of
the rents prevailing in this important business area."
The tenants did not reply. On 15.12.1987, the tenants filed two
execution petitions seeking enforcement of the undertaking given by
the landlord and recovery of possession to the tenants from the
landlord. By order dated 6.1.1989, the executing Court directed the
execution petitions to be dismissed solely on the ground that they
were barred by limitation as they were filed on 15.12.1987 and not
within six months from the date of the appellate orders i.e. 5.2.1987
(as required by Rule 23, quoted hereinafter). The tenants preferred
two revision petitions before the High Court which have been disposed
of by a common order. The revision petitions have been allowed. The
landlord has been directed to restore possession to the tenants. The
High Court has left it open to the landlord to take necessary steps for
claiming fair rent from the tenants by approaching the Rent Controller
for the purpose. Feeling aggrieved the landlord has come up in
appeals by special leave.
Two questions arise for decision:-
(1) Whether a new tenancy comes into existence, between the
parties, on possession being restored to the tenant over the newly
erected building or any part thereof, which would entitle the landlord
to settle the rent and other terms of lease afresh?
(2) What is the period of limitation for filing an application by the
tenant seeking enforcement of the order of the Rent Controller made
under Section 12 of the Act?
Both the abovesaid issues call for construing the provision
enacted in Section 12 of the Act.
The Andhra Pradesh Buildings (Lease, Rent and Eviction) Control
Act 1960 (Act No.15 of 1960) was enacted to replace former two State
enactments namely the Madras Buildings (Lease and Rent) Control
Act, 1949 (Madras Act XXV of 1949) and the Hyderabad Houses (Rent,
Eviction and Lease) Control Act, 1954 (Hyderabad Act XX of 1954)
which were operating in two areas of the State namely the Andhra
area and Telangana areas respectively. It seems that in the
predecessor legislation there was no provision similar to the one
contained in Section 12 of the Act of 1960. The Statement of Objects
and Reasons states inter alia that new Act was introducing some
important new provisions and one of them being ___ "to make a
provision empowering the Rent Controller to direct the tenant to hand
over possession of a building to the landlord to enable him to
reconstruct or renovate the old building subject to certain safeguards".
Section 12 of the Act with which we are concerned reads as under:-
"12. Recovery of possession by landlord for
repairs, alterations or additions or for
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reconstruction:-
(1) Notwithstanding anything in this Act on an
application made by a landlord, the Controller may,
if he is satisfied:
(a) that the building is reasonable and bona fide
required by the landlord for carrying out
repairs, alterations or additions which cannot
be carried out without the building being
vacated; or
(b) that the building consists of not more than
two floors and is reasonable and bona fide
required by the landlord for the immediate
purpose of demolishing it and such
demolition is to be made for the purpose of
erecting a new building on the site of the
building sought to be demolished,
pass an order directing the tenant to deliver
possession of the building to the landlord
before a specified date.
(2) No order for recovery of possession under this
Section shall be passed unless the landlord gives
an undertaking that the building on completion of
the repairs, alterations or additions or the new
building on its completion will be offered to the
tenant, who delivered possession in pursuance of
an order under sub-section (1), for his occupation
before the expiry of such period as may be
specified by the Controller in this behalf.
(3) In case the tenant, to whom the building or the
new building, as the case may be, is offered under
sub-section (2) by the landlord does not want to
occupy it the landlord shall give notice of vacancy
in writing to the authorized officer under sub-
section (1) of Section 3.
(4) Nothing in this Section shall entitle the landlord,
who has recovered possession of the building for
repairs, alterations or additions or for
reconstruction to convert a residential building into
a non-residential building or a residential building
unless such conversion is permitted by the
Controller at the time of passing an order under
sub-section (1)."
In exercise of the power conferred by Section 30 of the Act,
rules have been framed by the Government of Andhra Pradesh, called
the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Rules,
1961. The relevant part of Rule 23, with which we are concerned, is
extracted and reproduced hereunder:-
"23. (1) Every application for the execution of orders
passed under this Act shall be in writing signed
and verified by the decree-holder and filed
before the Controller within six months from the
date of the order accompanied by a certified
copy of the order concerned together with the
necessary process fee:
Provided that an application may be
admitted after the specified period if the
applicant satisfied the Controller that he has
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sufficient cause for not preferring the
application within such period.
(2) On receipt of an application for the execution of
order as provided by sub-rule (1), the Controller
shall ascertain whether all the requirements
have been complied, and if they have not been
complied, the Controller may reject the
application or may allow the defect to be
remedied within the time to be fixed by him.
(3) & (4) xxx xxx xxx
(5) An order of eviction passed under Sections 10,
12, and 13 shall be executed by evicting the
persons against whom the order was passed or
any other persons bound by the said order and
by delivering the vacant possession of the
building in regard to which the order was
passed either to the person in whose favour the
order was passed or to such person as he may
appoint to take delivery on his behalf.
(6) to (8) xxx xxx xxx"
The leases of immovable property and the relationship
between landlord and tenant are governed by Chapter V of the
Transfer of Property Act, 1882. The rights and liabilities of lessor and
lessee are stated in Section 108 of the T.P. Act which apply subject to
the contract or local usage to the contrary. Under Clause (b) and (c)
thereof, not only the lessor is bound on the lessee’s request to put him
in possession of the property but there is also an implied covenant for
peaceful possession and enjoyment of the leased property by the
tenant. So long as the lessee pays the rent reserved by the lease and
performs the obligations cast on him by the contract of lease, he is
entitled to hold and enjoy the property without interruption by anyone
including the lessor. Under Clause (l) the lessee is bound to pay or
tender, at the proper time and place, the premium or rent to the
lessor.
There has developed what is known as the doctrine of
suspension of rent based on principles of justice, equity and good
conscience. If the lessee is dispossessed by the lessor from the leased
property the obligation of the lessee to pay rent to the lessor is
suspended.
In V. Dhanapal Chettiar Vs. Yesodia Ammal ___ AIR 1979
S.C. 1745, the Seven-Judges Bench of this Court examined the impact
of Rent Control Legislations on the provisions of the Transfer of
Property Act in the context of the issue whether for the purpose of
seeking an eviction of tenant under the provisions of the rent control
law, it was still necessary for the landlord to terminate the tenancy by
giving a notice under Section 106 of the T.P. Act. Certain observations
made by this Court during the course of its judgment are relevant for
our purpose and may be noticed. The State Rent Acts have, to a very
large extent, encroached upon the field of freedom of contract. The
right of re-entry controlled by Section 111 of the T.P. Act is further
restricted and fettered by the provisions of the Rent Restriction Act. In
spite of the contract of lease having expired or terminated, the tenant
___ lessee continues in possession under the protective wing of the
Rent Restriction Act until the lessee loses that protection. The lessee
is not bound to vacate nor can the lessor-landlord exercises his right of
re-entry unless a ground entitling him to do so within the meaning of
the Rent Act has been made out and established in a court of law. The
landlord-tenant relationship stands snapped and the tenancy comes to
an end only on a decree or order in that regard being passed by a
competent court. Thus, the contractual lease may have come to an
end and the landlord-tenant relationship may have ceased to exist
under the contract or the T.P. Act, yet the same continues to exist for
the purpose of Rent Act.
With this much prefatory statement we proceed to examine the
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provisions of the A.P. Act.
The Heading given to Section 10 of the Act is ___ ’Eviction of
tenants’. It confers a protection on the tenant to occupy the tenancy
premises by providing that the tenant shall not be evicted whether in
execution of a decree or otherwise except in accordance with the
provisions of Section 10 or Sections 12 and 13. Sub-section (2) of
Section 10 enumerates the grounds on the availability whereof the
tenant becomes liable to be evicted. The provision opens by enacting
that a landlord who seeks to evict his tenant shall apply to the
Controller for a direction in that behalf. If the Controller, after hearing
both the parties, is satisfied of the availability of any one or more of
the grounds specified in sub-section (2) being made out, the Controller
shall make an order directing the tenant to put the landlord in
possession of the building. The Headings given to Sections 12 and 13
speak of ’Recovery of possession by landlord for repairs, alterations or
additions or for reconstruction’ of buildings.
The view is now settled that the Headings or Titles pre-fixed to
sections or group of sections can be referred to in construing an Act of
the Legislature. But conflicting opinions have been expressed on the
question as to what weight should be attached to the Headings or
Titles. According to one view, the Headings might be treated as
preambles to the provisions following them so as to be regarded as
giving the key to opening the mind of the draftsman of the clauses
arranged thereunder. According to the other view, resort to Heading
can only be taken when the enacting words are ambiguous. They
cannot control the meaning of plain words but they may explain
ambiguities. (See: Principles of Statutory Interpretation by Justice
G.P. Singh, Ninth Edition, 2004, pp.152,155). In our opinion, it is
permissible to assign the Heading or Title of a section a limited role to
play in the construction of statutes. They may be taken as very broad
and general indicators of the nature of the subject-matter dealt with
thereunder. The Heading or Title may also be taken as a condensed
name assigned to indicate collectively the characteristics of the
subject-matter dealt with by the enactment underneath; though the
name would always be brief having its own limitations. In case of
conflict between the plain language of the provision and the meaning
of the Heading or Title, the Heading or Title would not control the
meaning which is clearly and plainly discernible from the language of
the provision thereunder.
In the present case, Sections 10 and, 12 and 13 are placed in
close proximity and yet assigned different titles which is suggestive of
the legislative intent that the subject-matter dealt with under the two
headings, differently named, is different. A comparative reading of
Section 10 with Sections 12 and 13 shows that while sub-section (2) of
Section 10 contemplates the tenant being directed to put the landlord
in possession of the buildings consequent upon a ground for eviction of
tenant having been made out and the landlord having succeeded in
making out a case for eviction of his tenant. And so, the delivery of
possession by tenant to landlord is in effect eviction of tenant by
landlord. The tenancy itself is determined. Under Sections 12 and 13
the Controller orders the tenant to deliver possession of the buildings
to the landlord for a specific purpose and according to a calendar of
events which binds the landlord and the tenant both. In other words,
under Sections 12 and 13 the tenant is not evicted; the tenancy does
not come to an end; the lease continues to survive; and yet the tenant
ceases to be in actual possession of the building which is placed in
possession of the landlord for a specified purpose. Under Clause (a) of
sub-section (1) of Section 12 the purpose is "for carrying out repairs,
alterations or additions which cannot be carried out without the
building being vacated". Under Clause (b) of sub-section (1) the
purpose is "the immediate purpose of demolishing it and such
demolition is to be made for the purpose of erecting a new building on
the site of the building sought to be demolished." The provision seeks
to achieve a multi-purpose. The tenant is protected because his
tenancy does not come to an end and his right to re-occupy the
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building ___ repaired, altered, added or erected ___ continues to survive.
The landlord is benefited because but for the tenant having been
directed to deliver possession to him he could not have carried out
such repairs, etc. or rebuilding. The public interest is served as the
buildings are kept in good state and habitable and new building
activity continues to be carried on.
Under Section 12, as we have already stated, the lease does not
come to an end, nor the tenancy is terminated, merely on account of
possession of the building having been delivered to the landlord; nor
does it come to an end nor extinguished because the old building has
been demolished and a new building has been erected. The tenant,
when he re-enters into possession, does so under the original tenancy
which stands statutorily protected under the Act and he has not been
evicted nor held liable to be evicted. In spite of the building having
been repaired, altered, added to or re-erected, the tenant shall re-
enter to occupy the premises on the same terms and conditions on
which he was occupying the building on the date on which he delivered
possession to the landlord, pursuant to the order of the Controller.
The rent for the period between the date of delivery of possession by
tenant to landlord and the date of tenant’s re-entry shall remain
suspended because during that period it was not the tenant but the
landlord who was in possession of the building. On the tenant’s re-
entry into possession of the building, his obligation to pay the same
rent which he was paying on the date of delivery of possession by him
to the landlord, shall stand revived. If the law permits a revision of
rent or fixation of standard rent afresh, the landlord would be at liberty
to invoke that provision and revise the rent consistently with such
provisions. But the revision of rent cannot be insisted on by the
landlord as a condition precedent to re-entry by the tenant.
Therefore, the landlord in the present case was not justified in
offering the premises to the tenants for re-entry by qualifying the offer
for payment of a higher rate of rent.
In Kondeti Suryanarayana and Ors. Vs. Pinninti Seshagiri
Rao __ (1995) 2 Andh. L.T. 100, a learned Single Judge of the High
Court of Andhra Pradesh noticed G.O.M. No.636, G.A.D. dated
29.12.1983 which exempted newly constructed buildings from the
operation of the Act, with effect from 26.10.1983, for a period of 10
years from the date on which their construction is completed. The
Notification was issued in exercise of the power conferred by Section
26 of the Act. In the opinion of the learned Single Judge, inasmuch as
the newly constructed building would remain exempted for a period of
10 years from the operation of the Act, it was not necessary for the
landlord to give an undertaking as contemplated by sub-section (2) of
Section 12 of the Act and the right of re-induction of the tenant
remained suspended for a period of 10 years from the date of
completion of the construction of building. This judgment was put in
issue in appeal by special leave before this Court. A Division Bench of
this Court by its judgment dated 04.11.1999 (reported as Kondeti
Suryanarayana and Ors. Vs. Pinninthi Seshagiri Rao ___ AIR
2000 Supreme Court 70) set aside the judgment of the Andhra
Pradesh High Court and held that where a landlord requires a building
to be demolished necessarily he has to reconstruct the building on the
same site of the building and on reconstruction of new building the
tenant has to be allowed to re-enter in the said premises. If an
interpretation, as given by the learned Single Judge of the Andhra
Pradesh High Court, was to be accepted then it would encourage any
unscrupulous landlord to get eviction of tenant on the ground of
demolition of the building which would be repugnant to the object of
the Act, said this Court. We may hasten to add that the judgment of
the Andhra Pradesh High Court reversed by this Court suffered from
the fallacy of reading Section 12, as providing a ground to the landlord
for evicting the tenant which it is not.
A perusal of Section 12 of the Act shows the order being passed
by the Controller directing the tenant to deliver possession of the
building to the landlord before a specified date, subject to the
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Controller being satisfied of the availability of the ground for making
such an order.
An order for recovery of possession under Section 12 cannot be
passed unless the landlord gives an undertaking for offering the
building back to the tenant on the expiry of such period as may be
specified by the Controller in this behalf. If the tenant does not avail
the offer still the landlord cannot occupy the building. He has to notify
the vacancy in writing to the authorized officer under Section (1) of
Section 3. The nature of user after reconstruction must remain the
same as it was before, that is to say, a residential building must
continue to be a residential building and a non-residential building
must continue to be a non-residential building on re-erection unless
permitted otherwise by the Controller. Section 12 empowers the
Controller to specify time or appoint the dates for three purposes: (i)
the date by which the tenant has to deliver possession of the building
to the landlord, (ii) the date by which the landlord has to complete the
work, and (iii) the date by which the landlord shall offer the building to
the tenant. The controller can also specify the date or time before the
expiry of which the tenant must give response to the offer made by
the landlord. ’Such period as may be specified by the Controller in this
behalf’ ___ the expression as employed in sub-section (2) of Section 12
qualifies all the events within the scope of that provision. Once these
dates have been specified there will be no difficulty of implementation.
Having reconstructed the premises totally anew, should the rent
remain static? We can understand the premises being just repaired or
only essential repairs having been carried out by the landlord in
discharge of his obligation to secure peaceful enjoyment and
possession of the tenancy premises by the tenant for the purpose for
which the tenancy was created. So long as the premises remain the
same, one can understand and assume that the rent appointed for the
premises either by agreement or as fair rent has already taken care of
the obligation of the landlord of maintaining the premises in good and
habitable condition. In such cases, it may not be necessary to revise
the rate of rent. However, when the premises have been added to,
improved, altered or rebuilt consequent upon the satisfaction of the
Controller having been arrived at in that regard, it will be
unreasonable and capricious to keep the premises tied down to the old
rate of rent which was being paid for premises which were ____ may be
____ dilapidated or not worthy of human habitation. Such a provision, if
contained in any Legislation, would be liable to be struck down as
unconstitutional on account of being arbitrary, capricious and
unreasonable. However, so far as the Act is concerned, care has been
taken by Section 5 thereof which provides as under:-
"5. Increase in fair rent in what cases
admissible:-(1) When the fair rent of a building
has been fixed under this Act, no further increase
in such fair rent shall be permissible except in
cases where some addition, improvement or
alteration has been carried out at the landlord’s
expense and if the building is then in the
occupation of a tenant, at his request:
Provided that the increase shall be calculated
at a rate per annum not exceeding six per cent of
the cost of such addition, improvement or
alteration carried out and the fair rent as increased
under this sub-section shall not exceed the fair rent
payable under this Act for a similar building in the
same locality with such addition, improvement or
alteration:
Provided further that, any dispute between
landlord and the tenant in regard to any increase
claimed under this sub-section, shall be decided by
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the Controller."
Sub-Section (1) of Section 12 contemplates delivery of
possession by the tenant to the landlord for repairs, alterations,
additions and demolition and reconstruction. Out of these four
situations, Section 5 permits revision of rent in cases of alterations,
additions and repairs amounting to improvements. A reconstruction
carried out pursuant to order of Controller made under Section 12(1)
of the Act is included within the meaning of the expression ’addition,
improvement or alteration’ which, in our opinion, seems to have been
used in wider sense. In such cases, it will be permissible to have the
rent fixed consistently with the principles laid down in the proviso to
sub-Section (1) of Section 5. In the cases covered by Section 12,
Section 5 is available for fixation of fair rent by way of revision over
the rate of rent at which it was being paid previously. The opening
part of sub-Section (1) of Section 5 is divisible into two parts,
comprehending two situations, as under :
(i) Where the fair rent of a building has been fixed under
this Act, no further increase in such fair rent shall be
permissible;
except in cases
(ii) where some addition, improvement or alteration
has been carried out at the landlord’s expense and if the
building is then in occupation of a tenant, at his request.
The next following two provisos respectively lay down the
formula for calculating the revision in rent and confer exclusive
jurisdiction on the Controller to decide the dispute.
Sections 4, 5 and 6 are parts of one scheme. What first clause
of sub-Section (1) of Section 5 provides is that the fair rent of a
building having been fixed under Section 4 the same cannot be re-
fixed once again. It is the rule of one-time fixation of fair rent. This
rule does not apply to any case of addition, improvement or alteration
having been carried out as stated in the later clause. It is an
exception to ’one-time fixation of fair rent’ rule. In spite of fair rent of
building having been fixed already, the fair rent can be fixed again as
per formula laid down in the proviso on an addition, improvement or
alteration having been carried out. Such cases are excepted from the
prohibition of ’no further increase’.
Now arises for determination the question of limitation for filing
of execution petition by the landlord or by the tenant. Here again, a
perusal of the scheme of Section 12 shows that the provision
contemplates passing of an order directing the tenant to deliver the
possession of the building to the landlord before a specified date under
sub-section (1) of Section 12. Sub-Section (2) does not contemplate
an order for re-entry by tenant into possession being made by the
Controller; what the Controller does is to accept the undertaking given
by the landlord without which an order for delivery of possession by
the tenant in favour of the landlord under sub-section (1) shall not be
passed. The specification of dates by the Controller is dependant on
and consequent to the undertaking given by the landlord as condition
precedent to the passing of the decree. If the landlord does not give
the undertaking contemplated by sub-section (2), there shall be no
order for recovery of possession under sub-section (1).
Where the tenant fails to deliver possession on or before the
specified date to the landlord, the landlord may execute the order of
the Controller by filing an execution petition which will be governed by
Rule 23 and hence shall have to be filed within a period of six months
from the date of the order. The application is by landlord who is a
decree-holder having an executable order in his favour in his hands. A
tenant exercising his right of re-entry is neither a decree-holder nor
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seeking execution of any order in his favour; he is seeking
enforcement of a solemn undertaking given by the landlord but for
which the Controller would not have made an order under sub-section
(1) of Section 12 of the Act. The tenant’s application is not an
application for execution and hence does not attract applicability of
Rule 23. It would be governed by Article 137 of the Limitation Act,
1963; it being an application for which no period of limitation is
provided elsewhere and the period of three years shall begin to run
when the right to apply accrues. The right to apply will accrue on the
date specified by the Controller under sub-section (2) in this behalf.
The period of limitation prescribed by Rule 23 may become otiose if
applied to tenant as the period for completion of building by landlord
may itself be more than six months and the period of limitation for
tenant if governed by Rule 23 would have already expired by that
time. An application filed before Rent Controller can attract
applicability of Limitation Act, 1963 (See \026 Mukri Gopalan Vs.
Cheppilat Puthanpurayil Aboobacker \026 (1995) 5 SCC 5. There
are three single-Judge Bench decisions of Andhra Pradesh High Court,
namely, K.S. Hanumantharayappa Vs. A.N. Vittal Rao \026 1987 (1)
ALT 474, K.Manik Rao and Ors. Vs. Smt. M. Bikshapamma & Anr.
\026 1987 (2) ALT (Notes on Cases) 15 and Navin Chandra Vs. Smt.
Prema Bai Pitti \026 1992(3) ALT 181, taking the view that the
limitation for application by tenant seeking restoration of possession to
him is governed by Rule 23. These decisions do not lay down the
correct law and are overruled.
However, we hasten to add that the tenant must exercise his
right to recover possession within the time appointed by the Controller
for the purpose or if no such time is appointed then within a
reasonable time and promptly on receiving offer from the landlord in
that regard failing which the right of the tenant to seek restoration of
possession shall be lost. The tenant who has allowed the time
appointed by the Controller to lapse or failed to avail the offer made
by landlord within a reasonable time need not be allowed relief by the
Controller in spite of his application being within limitation under
Article 137 of the Limitation Act. The limitation of three years is the
outer limit of time available to tenant seeking recovery of possession
when the landlord has defaulted.
Hence, in the present case, the application filed by the tenant
for enforcing the right of re-entry pursuant to the undertaking given
by the landlord, whether incorporated in the order of the Controller or
not, cannot be said to be barred by limitation. It is futile to determine
the question of limitation by reference to Rule 23 above said. The
High Court has rightly allowed the revision petitions holding the
application filed by the teant to be within limitation and rightly held
that it was open to the landlord to take necessary steps for claiming
fair rent. However, we clarify that the landlord shall be entitled to
claim fair rent as is permitted by law and till then the tenant shall be
liable to pay the rent at the same rate at which it was being paid.
Before parting we notice that when the revisions filed by the
tenant were allowed by the High Court on 16.10.1998 it was brought
to the notice of the High Court by the landlord, at the time of
pronouncement of the judgment, that the reconstructed building had
already been leased out to some other persons, and therefore, the
High Court directed the operation of its judgment to remain stayed for
approaching this Court. As to when and in what circumstances third
persons have been inducted into possession of re-built building, are
not known as the same are not discernible from the record. Before
giving effect to the order of the High Court, the Controller shall have to
give notice to such third parties who are presently in possession and
they shall have to be heard. It is difficult for us to anticipate what
these third persons in possession may have to say and, therefore, we
make no observation on their rights, if any, and leave it open to be
determined by the Controller.
Subject to the above said cautionary observation, the appeals
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are dismissed.