Full Judgment Text
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PETITIONER:
MARTIN & HARRIS LIMITED
Vs.
RESPONDENT:
WITH ADDITIONAL DISTT. JUDGE & ORS.
DATE OF JUDGMENT: 11/12/1997
BENCH:
S.B. MAJMUDAR, M. JAGANNADHA RAO.
ACT:
HEADNOTE:
JUDGMENT:
J U D G M E N T
S.B. Majmudar, J,
Leave Granted
Respondent nos. 1 and 2 are formal parties being
authorities and hence it was not necessary to hear them. By
consent of learned counsel for the contesting parties the
appeal was taken up for final disposal and having heard them
it is being decided by this judgment.
In this appeal question of maintainability of
application for possession moved by respondent no.3-
landlord against the appellant-tenant under Section 21(1)(a)
of the U.P. Urban Buildings (Regulation of Letting, Rent and
Eviction) Act, 1972 (hereinafter referred to as ‘the Act’]
mainly falls for consideration. The appellant has also
raised a subsidiary ground centering round a subsequent
event to which we will make a reference at an appropriate
stage in this judgment. A few introductory facts leading to
this appeal are required to be noted at the outset to
appreciate the aforesaid controversy between the parties.
Introductory Facts
Respondent No.3 purchased the suit property being
Bungalow No. 21-C, Ashok Marg, Lucknow, wherein the
appellant-company is occupying an area of 9000 sq.ft. as a
tenant since 28th December 1966. Respondent no.3 was
serving in Indian Army as Major General. He retired from
the said post on 1st April 1985. He purchased the aforesaid
tenanted property on 30th June 1985 from its erstwhile owner
Dr. K.R. Chaudhary who coincidentally was his father-in-law.
Respondent no 3-1 landlord gave a notice dated 20th
September 1985 to the appellant seeking possession on the
ground that he had purchased the property for his
residential purpose and the bona fide required the same for
the said purpose. The appellant replied to the said notice
on 20th October 1985 and refuted the claim of the
respondent-landlord. Respondent no.3 thereafter filed an
application on 24th January 1986 under Section 21(1)(a) read
with Section 21(1-A) of the Act in the court of IIIrd
Additional Civil Judge and Prescribed Authority, Lucknow.
It was registered as P.A. Suit No.1 of 1986. In the written
statement filed by the appellant on 17th September 1986
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before the prescribed authority, amongst others, a
contention was raised that the application was not
maintainable under Section 21(1)(a) of the Act on twin
grounds - (1) that it was filed prematurely before expire of
three years from the date on which the premises was
purchased by respondent no.3-landlord: and (2) respondent
no.3 has not filed the suit after expire of six months from
the date of the suit notice dated 20th September 1985 and
consequently the application was not maintainable as per the
first proviso to Section 21(1) of the Act. During the
pendency of the proceedings, however, the appellant joined
issues on merits by filing affidavit controverting the
affidavit filed by the respondent-landlord in support of his
case. After hearing the parties on merits of the claim of
respondent-landlord, the prescribed authority by its
judgment dated 23rd May 1990 decreed the suit of the
respondent - landlord holding that respondent - landlord has
proved his case for bona fide requirement of the suit
premises. The appellant - tenant carried the matter in
appeal under Section 22 of the Act before the District
Judge, Lucknow. The appeal was pressed on merits of the
controversy between the parties whereby the appellant sought
to challenge the decree of the trial Court on the ground
that the respondent - landlord did not require the premises
for his bona fide use. The said contention of the appellant
was rejected by the first Appellate Court and the appeal was
dismissed on 21st March 1994. Thereafter the appellant
carried the matter in a Writ Petition before the Lucknow
Bench of the High Court of Allahabad under Article 226 of
the Constitution of India. In the said writ petition the
appellant’s counsel mainly urged the question about the
maintainability of the application for possession as moved
by the respondent-landlord under Section 21(1)(a) of the
Act. The finding of fact of bona fide requirement of
respondent-landlord as concurrently reached by the courts
below was not challenged before the High Court. One
ancillary point was urged based on subsequent event. The
High Court noted the contention of appellant’s learned
counsel that question of maintainability of the proceedings
was not urged by the appellant before the courts below, but
as the contention went to the root of the matter it was
considered by the High Court on merits. The High Court,
however, rejected the same and took the view that the
application filed by respondent-landlord was maintainable.
It also rejected the ancillary contention on behalf of the
appellant-tenant that because of the subsequent event,
namely, that respondent-landlord’s wife had got undivided
interest in the adjoining were situated, the respondent’s
bona fide requirement did not survive. In the result the
High Court confirmed the decree for possession as passed by
the Trial Court and as confirmed by the First Appellate
Court.
Rival Contentions
Learned senior counsel Shri P.P. Rao, appearing on
behalf of the appellant submitted in support of the appeal
that the High Court has patently erred in law in taking the
view that respondent-landlord’s application under Section
21(1)(a) was maintainable. He submitted, placing reliance on
various decisions of this Court to which we will make a
reference hereinafter, that the suit as filed before expire
of the period of six months from the date of the service of
the suit notice was clearly not maintainable and that as the
said provisions was for the benefit of the suppressed class
of tenants it was in public interest and objection regarding
the same could not be waived by the appellant as wrongly
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held by the High Court. It was also contended that the
application for possession under Section 21(1)(a) of the Act
was not maintainable as it was filed within three years of
the date of purchase of the property by the respondent-
landlord and consequently the prescribed authority had no
jurisdiction to entertain such an application from the very
inception. It was submitted that the term ‘entertain’ as
employed by the first proviso to Section 21(1)(a) of the Act
was synonymous with the word ‘institute’ and in any case at
the time the court took cognisance of the suit for
possession by issuing notice to the appellant it could be
said that the Court has entertained the said proceedings and
such entertaining of the proceedings was clearly barred by
the aforesaid provision of the Act and consequently the
decree for possession as passed by the Trial Court and
confirmed by the First Appellate Court and the High Court
was a nullity. It was also contended that because of the
subsequent event brought to the notice of the High Court to
the effect that respondent was staying with his wife in the
adjoining part of the building where the suit premises was
situated and as the said property jointly belonged to
respondent’s wife and her brother it could not be said that
the respondent-landlord had any felt need for occupying the
suit premises and his need for the suit premises, if any,
had come to an end.
On the other hand learned senior counsel for the
respondent-landlord, Shri Gopal Subramaniam supported the
decision rendered by the High Court. It was submitted that
the term ‘entertain’ as employed by the first proviso to
Section 21(1) of the Act only meant that the Trial Court
could not decide the ground under Section 21(1)(a) on merits
if three years’ period from the date of the purchase of the
property by the respondent-landlord has not expired by then.
That in the present case when the prescribed authority took
up the said ground for consideration on merits after 1986
three years’ period had a already expired from the date of
purchase of the suit property by respondent-landlord and
hence there was no question of bar against such
entertainment and consideration of the ground by the Trial
Court. So far as the question of notice of six months was
concerned, it was submitted that though it was a mandatory
requirement of the provision and application could not be
filed before expire of six months from the date of the
service of the suit notice as joined by the first proviso to
Section 21(1) of the Act and as such a contention which was
already raised by the appellant in its written statement was
not pressed into service at subsequent stages of the trial
and on the contrary the appellant jointed issues on merits
by filing affidavit and seeking cross-examination of the
plaintiff on the question of his bona Fide requirement of
the suit premises. Such a contention can be said to have
been consciously waived by the appellant. That if during
the trial such a contention was canvassed for consideration
the respondent-landlord could have filed a fresh suit on
that ground by withdrawing the suit based thereon. Thus
because of the conduct of the appellant in not pursuing this
point during the trial the respondent-landlord has
irretrievably changed his position and it would have
resulted in grave prejudice to the respondent-landlord if
such a plea was entertained subsequently. It was also
submitted in this connection that the proceedings were
personal in nature between the landlord and the tenant and
the provision of service of six months’ notice before filing
of the suit as found in the proviso to Section 21(1) of the
Act was for the protection and benefit of the tenant
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concerned and such a protection could be given up and waived
by the tenant. It would not be said that such a protection
was not capable of being waived being in public interest.
That no such public interest was involved in the said
provision. It was also submitted that the respondent-
landlord was rightly held not to be in any way adversely
affected only because he was staying with his wife in the
adjoining part of the building where the suit premises was
situated, and where in his wife has an undivided interest.
That according to him the respondent-landlord was forced to
stay, in the absence of his own house, in another premises
belonging to his son-in-law and even assuming that he was
staying also in the adjoining property partly belonging to
his wife along with her brother, her cannot be complied to
remain as a licensee of his wife for the rest of his life.
he, however, fairly conceded that the reasoning of the
learned Judge of the High Court, that because the
respondent-landlord was a retired army officer his case was
covered by Explanation (iii) to Section 21(1) of the Act
and, therefore, ipso facto his need of the building for
residential purpose shall be deemed sufficient for proving
his case under clause (a) of sub-section (1) of Section 21
of the Act, could not be sustained. However he submitted
that even independently thereof, on the basis of the
evidence on record and the current findings to which the
Trial Court and the First Appellate Court reached, the High
Court was justified in confirming the decree for possession
under Section 21(1) (a) of the Act.
Points for Consideration
In view of the aforesaid rival contentions the
following points arise for our consideration;
1. Whether the respondent-landlord’s application under
Section 21(1)(a) of the Act was not maintainable in
view of the proviso to the said Section as it was filed
before the expiry of three years from the date of
purchase of the suit premises by the respondent.
2. Whether the said application was not maintainable on
the additional ground that it was filed prior to the
expiry of six months from the date on which notice was
given by the respondent to the appellant as required by
the very same proviso.
3. Whether the bona fide requirement of the respondent
landlord did not survive in view of the subsequent
event, namely, that respondent’s wife had acquired an
undivided interest in the adjoining part of the
building in which the suit premises were situated and
where in the respondent-landlord was staying with his
wife.
We shall deal with these points seriatim.
Point No.1
In order to appreciate the controversy centering round
this contention it is necessary to have a look at the
relevant statutory provisions. Section 21(1) with its
relevant clauses and the provisos reads as under:
"21. Proceedings for release of
building under occupation of
tenant. - (1) The prescribed
authority may, on an application of
the landlord in that behalf, order
the eviction of a tenant from the
building under tenancy or any
specified part thereof it is
satisfied that any of the following
grounds exists namely-
(a) that the building is bona fide
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required either in its existing
form or after demolition and new
construction by the landlord for
occupation by himself or any member
of his family, or any person for
whose benefit it is held by him,
either for residential purposes or
for purposes of any profession,
trade or calling, or where the
Landlord is the trustee of a public
charitable trust, for the objects
of the trust.
(b) that the building is in a
dilapidated condition and is
required for purposes of demolition
and new construction.
Provided that where the building
was in the occupation of a tenant
since before its purchase by the
landlord, such purchase being made
after the commencement of this Act,
no application shall be entertained
on the grounds, mentioned in clause
(a), unless a period of three years
has elapsed since the date of such
purchase and the landlord has given
a notice in that behalf to the
tenant not less than six months
before such application, and such
notice may be given even before the
expiration of the aforesaid period
of three years:
Provided further that if any
application under clause (a) is
made in respect of any building let
out, exclusively for non-
residential purposes, the
prescribed authority while making
the order of eviction shall, after
considering all relevant facts of
the case, award against the
landlord to the lenient an amount
not exceeding two years’ rent as
compensation and may, subject to
rules, impose such other conditions
as it thinks fit:
Provided also that no application
under clause (a) shall be
entertained-
(i) ... ....
...............................
(ii) ..............................
........
(iii) in the case of any
residential building, against any
tenant who is a member of the armed
forces of the Union and in whose
favour the prescribed authority
under the Indian Soldiers
(Litigation) Act, 1925 (Act No. IV
of 1925) has issued a certificate
that he is serving under special
conditions within the meaning of
Section 3 of that Act, or where he
has died by enemy action while so
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serving then against his heirs:
Provided also that the prescribed authority shall,
except in cases provided for in the Explanation, take into
account the likely hardship to the tenant from the grant of
the application as against the likely hardship to the
landlord from the refusal of the application and for that
purpose shall have regard to such factors as may be
prescribed.
Explanation - In the case of a residential building:-
(i) ................ ...........
...........
(ii)........ ................
.......................
(iii) Where the landlord of any
building is-
(1) a serving or retired Indian
Soldier as defined in the Indian
Soldiers (Litigation ) Act, 1925
(IV of 1925), and such building was
let out at any time before his
retirement, or
(2) ............
...................
......................
and such landlord needs such
building for occupation by himself
or the members, of his family for
residential purposes, then his
representation that he needs the
building for residential purposes
for himself or the members of his
family shall be deemed sufficient
for the purposes of clause (a), and
where such landlord owns more than
one building this provision shall
apply in respect of one building
only."
As the respondents application was also based on
another ground under Sub-Section (1-A) of Section 21 of the
Act it will be necessary to note the said provision also at
his stage. It reads as under:
" 21(1-A). Notwithstanding any
thing contained in Section 2, the
prescribed authority shall, on the
application of a landlord in that
behalf, order the eviction of a
landlord in that behalf, order the
eviction of a tenant from any
building under tenancy, if it is
satisfied that the landlord so such
building was in occupation of a
public building for residential
purposes which he had to vacate on
account of the cessation of his
employment:
Provided that an application under
this sub-section may also be given
by a landlord in occupation of such
public building at any time within
a period of one year before the
expected date of cessation of his
employment. But the order of
eviction on such application shall
take effect only on the date of his
actual cessation."
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A mere look at the aforesaid provision of the first
proviso to Section 21(1) of the Act shows that no
application filed by a landlord is to be entertained by the
prescribed authority on grounds mentioned in clause (a)
unless a period of three years has expired since the date of
purchase of the property by the landlord when the building
which is purchased is having a sitting tenant. It is not in
dispute between the parties that the appellant was a sitting
tenant since 1966 in the said building when it was purchased
by respondent Landlord on 30th June 1985, It is, of course,
true that respondent landlord moved an application for
possession, against the appellant both under Section 21(1)
(a) of the Act and also under Section 21(1-a) of the Act.
However, so far as the ground under Section 21(1)(a) of the
Act is concerned the application was filed before the expiry
of three years from the date of such purchase. It was in
fact filed within seven months from the date of purchase of
the premises. The moot question is whether the very filing
of such application was barred by the provisions of the said
proviso. It must be kept in view that the proviso nowhere
lays down that no application on the grounds mentioned in
clause (a) of Section 21(1) could be ’instituted’ within a
period of three years from the date of purchase. On the
contrary, the proviso lays down that such application on the
said grounds cannot be ’entertained’ by the authority before
the expiry of the period. Consequently it is not possible to
agree with the extreme contention canvassed by the learned
senior counsel for the appellant that such an application
could not have been filed at all within the said period of
three years. Learned senior counsel for the appellant Shri
Rao in this connection invited out attention to a decision
of this Court in the case of Anandilal Bhanwarlal and
another v. Smt. Kasturi Devi Ganeriwala and another [(1985)
1 SCC 442]. In the said decision this Court was concerned
with the interpretation of Section 13(3-A) of the West
Bengal premises Tenancy Act. 1956. The said provision reads
as under:
"Where a landlord has acquired his
interest in the premises by
transfer, no suit for the recovery
of possession of the premises on
any of t he grounds mentioned in
clause (f) or clause (ff) of sub-
section (1) shall be instituted by
the landlord before the expiration
of a period of three years from the
date of his acquisition of such
interest...."
As in that case the very ’institution’ of suit for
recovery of possession was barred for a period of three
years form the date of acquisition of interest of the
landlord in such premises this Court took the view that the
decree for possession passed in the face of such statutory
prohibition was illegal. As the proviso to Section 21(1) of
the Act in the present case is not so worded the said
decision cannot be of any avail to learned senior counsel
for the appellant. However he submitted that the word
’entertain’ should be construed as being synonymous with the
word ’institute’. It is difficult to agree. The statutory
scheme of Section 21(1) contra-indicates such a contention,
sub-Section (1) of Section 21 lays down that ’the prescribed
authority may, on an application of the landlord in that
behalf, order the eviction of a tenant from the building
under tenancy or any specified part thereof if it is
satisfied that any of the following grounds exists.....’
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Section 21(1) deals with grounds mentioned not only in
clause (a) but also in clause (b) The proviso to Section
21(1) bars entertainment of the application only on the
grounds mentioned in clause (a) thereof, It is easy to
visualise that an application for possession may be filed by
the landlord not only invoking grounds mentioned in clause
(a) of Section 21(1) but even other grounds mentioned in
that sub-section. Therefore, the stage at which the court
has to consider whether grounds mentioned in clause (a) are
made out be the plaintiff or not will be reached when the
Court takes up the application for consideration on merits.
It has to be kept in view that applications for possession
filed under Section 21(1) of the Act are not placed for
admission before the prescribed authority. Once they are
filed they are to be processed for being decided on merits
after issuing notices to the parties concerned. Therefore,
when the application reaches final hearing on merits the
authority has to sift the grounds on which the application
is based and if it finds that the application is based,
amongst others, on the grounds mentioned in clause (a)) it
has to ascertain whether three years’ period has expired
since the day of the purchase of the said property by the
plaintiff- landlord and if the period of three years is
found to have expired then the grounds mentioned in clause
(a) would become alive for consideration of the authority.
If not, said grounds would not be entertained for
consideration. Thus the word ’entertain’ mentioned in the
first proviso to Section 21 (1) in connection with grounds
mentioned in clause (a) would necessarily mean entertaining
the ground for consideration for the purpose of adjudication
on merits and not at any stage prior thereto as tried to be
submitted by learned senior counsel, Shri Rao, for the
appellant. Neither at the stage at which the application is
filed in the office of the authority nor at the stage when
summons is issued to the tenant the question of entertaining
such application by the prescribed authority would arise for
consideration. This conclusion also flows from the statutory
scheme discernible from the third proviso to section 21(1)
of the Act. It is seen that the said proviso uses the
similar terminology to the effect that such application
under Section 21(1)(a) shall not be entertained under
contingencies contemplated by various sub-clauses of the
said proviso. These provisions clearly show that while
entertaining the application for possession under clause (a
of sub-section (1) of Section 21 of the Act the Court has to
find out, on evidence led before it, as to what is the
purpose of the charitable trust and also whether the
residential building is sought for occupation for business
purposes or whether the tenant of residential premises, if
he is a member of armed forces has got a certificate to the
effect that he is serving under special conditions mentioned
in Section 3 of the Indian Soldiers (Litigation) Act, 1925
or whether he has died by enemy action while so serving an
the proceedings are being filed against his heirs. All these
questions of fact will have to be considered whole
entertaining the application under clause (a) of Section 21
(1) of the Act as laid down by the third proviso. It is
obvious that said stage would be reached only when the
prescribed authority takes up the application for
consideration on merits of the grounds mentioned in clause
(a)) of Section 21(1) which are pressed in service by the
landlord for getting possession.
Even that apart there is an internal indication in the
first proviso to Section 21(1) that the legislature has made
a clear distinction between ’entertaining of an application
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for possession under Section 21(1) (a) of the Act and
‘filing’ of such application. so far as the filling of such
application is concerned it is clearly indicated by the
Legislature that such application cannot be filled before
expiry of six months form the date on which notice is given
by the landlord to the tenant seeking eviction under Section
21(1) (a) of the Act. The words, ‘the landlord has given a
notice in that behalf to the tenant not less than six months
before such application’, would naturally mean that before
filing of such application or moving of such application
before the prescribed authority notice must have preceded by
at least six months. similar terminology is not employed by
the Legislature in the very same proviso so far as three
years’ period for entertaining such application by the
prescribed authority is concerned. Therefore, it must
necessarily mean that when the prescribed authority is
required to entertain an application on the grounds
mentioned in Clause (a) of Section 21(1) a stage must be
reached when the Court applies its judicial mind and takes
up the case for decision on merits concerning the grounds
for possession mentioned in clause (a) of Section 21(1) of
the Act. Consequently on the very scheme of this Act it
cannot be said that the word ’entertain’ as employed by the
Legislature in the firs proviso to Section 21(1) of the Act
would mean ’Institution’ of such proceedings before the
prescribed authority or would at least mean taking
cognisance of such an application by the prescribed
authority by issuing summons for appearance to the tenant-
defendant. It must be half that on the contrary the term
’entertain’ would only show that by the time the application
for possession on the grounds mentioned in clause (a)) of
Section 21(1) is taken up by the prescribed authority for
consideration on merits, at least minimum three years’
period should have elapsed since the date of purchase of the
premises by the landlord.
Learned senior counsel, Shri Rao, for the appellant
invited our attention to a decision of this Court in the
case of Kiran Singh and others v. Chaman Paswan and others
[(1955) 1 SCR 117] for submitting that a decree without
jurisdiction is a nullity and such an objection to it can be
raised even in execution proceedings. There cannot be any
dispute on this legal proposition. However, the question is
whether decree passed by the prescribed authority under
Section 21(1) (a) of the Act can be said to be a nullity at
all. As we have seen above the decree of the Trial Court was
passed much after the expiry of the three years from the
date on which the respondent Landlord purchased the
property. To recapitulate, the property was purchased on
30th June 1985 while the decree of the Trial Court is dated
23rd May 1990. In fact the Trial Court had taken up the
application for consideration of the aforesaid grounds more
than three years after 20th December 1985 in 1988-89
onwards. Consequently it must be held that the application
for possession on the grounds under Section 21(1)(a) was
entertained by the Trial Court after the expiry of three
years from the date of purchase of the suit property by the
respondent, plaintiff. Hence it cannot be said that the said
decree was a nullity being without jurisdiction. On the same
reasoning, therefore, reliance placed by learned senior
counsel, Shri Rao, for the appellant on the decision of this
Court in the case of Chiranjilal Shrilal Goenka (Decease)
through LRs. V. Jasjit Singh and others [(1993) 2 SCC 507],
cannot be of any avail to him as in the said case this Court
reiterated the very same principle that contention about a
decree passed by a court without jurisdiction on the
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subject-matter or on the grounds on which the decree is made
goes to the root of its jurisdiction or by a court which
lacks inherent jurisdiction is to be treated as one passed
by a coram non justices. Learned senior counsel for the
appellant also invited our attention to a decision of a
Constitution Bench of this Court in the case of Shri Charan
Lal Sahu & Another v. Shri K.R. Narayanan & Another [JT 1997
(9) SC 253] where in S.C. Agrawal, J., speaking for the
Constitution bench held in para 31 of the Report that Rs.
10,000/- are quantified as costs to be paid by the
petitioners and it was directed that no petition filed by
either of the petitioners-in-person shall be entertained in
this Court till the amount of costs imposed is paid. Relying
on these observations learned senior counsel for the
appellant submitted that in the aforesaid decision the
Constitution Bench, employed the term ‘entertain’ as meaning
‘institute’. It is difficult to appreciate this contention.
This Court in that case was not concerned with the question
as to when an application can be said to be entertained. The
statutory scheme with which we are concerned in the present
case was not on the anvil of consideration in the aforesaid
case. Therefore, even assuming that the direction in the
aforesaid decision might contain instruction to the office
of this Court not to permit filing of such Election Petition
without payment of costs, the same cannot be considered to
be a decision on the question with which we are concerned on
the scheme of the Act. Learned senior counsel, Shri Rao, for
the appellant then invited our attention to two decisions of
this Court in the case of M/s. Lakshmiratan Engineering
Works Ltd, V. Asst. Commissioner (Judicial) I, Sales Tax,
Kanpur Range, Kanpur and another [AIR 1968 SC 488, (1968) 1
SCR 505] and Hindustan Commercial Bank Ltd., V. Punnu Sahu
(Dead) through Legal Representatives [(1971) 3 SCC 124]. In
Lakshmiratan Engineering (supra) this Court was concerned
with the meaning of the word ‘entertain’ mentioned in the
proviso to Section 9 of the U.P. Sales Tax Act, 1948.
Hidayatullah, J., speaking for the Court observed in the
light of the statutory scheme of Section 9 of the said Act
that the direction to the Court in the proviso to Section 9
was to the effect that the Court shall not proceed to admit
to consideration an appeal which is no accompanied by
satisfactory proof the payment of the admitted tax. In the
case of Hindustan Commercial Bank (supra) the term
’entertain’ as found in the proviso to Order XXI Rule 90,
Code of Civil Procedure (’CPC’) fell for consideration of
the Court. Hedge, J., speaking for a Bench of two learned
Judges of this Court in this connection observed that the
term ’entertain’ in the said provision means ’to adjudicate
upon’ or ’to proceed to consider on merits’ and did not mean
’initiation of proceeding’. The aforesaid decisions, in our
view, clearly show that when the question of entertaining an
application for giving relief to a party arises and when
such application is based on any grounds on which such
application has to be considered, the provisions regarding
’entertaining such application’ on any of these grounds
would necessarily mean the consideration of the application
on the merits of the grounds on which it is based. In the
present case, therefore, it must be held that when the
Legislature has provided that no application under Section
21 (1) (a) of the Act shall be entertained by the prescribed
authority on grounds mentioned in clause (a) of Section
21(1) of the Act before expiry of three years from date of
purchase of property by the landlord it must necessarily
mean consideration by the prescribed authority of the
grounds mentioned in clause (a) of Section 21(1) of the Act
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of merits. On the facts of the present case, as we have seen
earlier, that stage was reached after 1988 when the
prescribed authority on the basis of the affidavit evidence
led before it took up the plaintiff’s case for consideration
on merits of the grounds under Section 21 (1) (a) of the Act
and at that stage more than three years had expired. from
the date on which the respondent-landlord had purchased the
property. Consequently no fault can be found with the
decision of the High Court to the effect that the prescribed
authority was justified in entertaining the consideration of
the grounds under section 21(1) (a) of the Act at that stage
and the decree passed on the said ground, therefore, cannot
be said to be a nullity, nor can the entertaining of such
application on the ground under Section 21(1) (a) of the Act
be said to be illegal. The first point for consideration is,
therefore, answered in the negative, in favour of the
respondent landlord and against the appellant.
Point No. 2
so far as this point is concerned it must be held on
the clear language of the first proviso to Section 21(1) of
the Act that application for possession under Section 21(1)
(a) had to be filed by the landlord concerned not earlier
than expiry of six months from, the date of issuance of the
notice by the landlord. On the facts of the present case it
cannot be disputed that when the notice was issued on 20th
September 1985 the application for possession could not have
been filed by the respondent invoking the grounds mentioned
in clause (a) of Section 21(1) of the Act, at leas till 20th
March 1986, while the application was filed in January 1986.
To that extent it can be said that the application was
premature. The provision in this connection has to be
treated to be mandatory.
However the further question survives for
consideration, namely, whether the beneficial provision
enacted by the Legislature in this Connection for the
protection of the tenant could be and in fact was waived by
the tenant. So far as this question is concerned on the
facts of the present case the answer must be in the
affirmative. As we have noted earlier after the suit was
filed the appellant filed its written statement on 17th
September 1986. In the said written statement the appellant,
amongst others, did take up the contention that the
application as filed by the respondent-landlord under
Section 21(1) (a) was not maintainable and was premature as
six months ’ period had not expired since the service of
notice dated 20th September 1985 when the suit was filed.
But curiously enough thereafter the said contention raised
by the appellant in written statement was given a go by for
reasons best known to the appellant. It is easy to visualise
that if at that stage the appellant had pressed for
rejection of the application on the ground of Section 21(1)
(a) as not showing completed cause of action due to non-
expiry of six months from the date of Service of notice
invoking Order VII Rule 11(a) and (d), CPC, alleging that
the plaint did not disclose a cause of action or it appeared
to be barred by law, respondent-plaintiff could have
withdrawn the suit on the that ground under Order XXIII
Rule, 1 Sub-rule (3), CPC as the suit based on grounds under
Section 21 (1) (a) of the Act would have been shows to have
suffered from a formal defect and he would have been
entitled to claim liberty to file a fresh suit on the same
cause of action after the expiry of six months’ period from
the date of service of notice. That opportunity was lost to
the respondent-landlord as the appellant did not pursue this
contention any further.
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On the contrary appellant joined issues on merits by
seeking permission to cross-examine the plaintiff on merits
of the case on grounds as pleaded under Section 21(1) (a) of
the Act. When the decree was passed against the appellant,
even while challenging the said decree in appeal no such
ground was taken in the Memo of Appeal, nor was it argued
before the First Appellate Court. Under these circumstances,
the High Court rightly held that the contention, regarding
the suit being premature as filed before expiry of six
months from the date of the notice, must be treated to have
been waived by the appellant. Joining issue on his question
learned senior counsel, Shri Rao, for the appellant invited
our attention to a decision of this Court in the case of
Seth Badri Prasad and others v. Seth Nagarmal and other
[(1959) Supp. 1 SCR 769]. In that case a suit filed by an
unregistered company was found to be hit by the provisions
of section 4 sub-section (2) of the Rewa State Companies
Act, 1935. The said contention was permitted to be taken for
the first time during arguments in appeal before this Court.
It was held that as this contention went to the root of the
maintainability of the suit it could be agitated as a pure
question of law. We fail to appreciate how that decision can
be of any avail to the appellant in the present case. This
Court, placing reliance on a decision of the privy council
in the Case of Surajmull Nargoremuil v. Triton Insurance
Company Ltd. (1924) L.R. 52 I.A. 126, extracted with
approval the observations of Lord Summer at page 128 of the
Report of the Privy Council Judgment to the following
effect:
"The suggestion may be at once
dismissed that it is too late now
to raise the section as an answer
to the claim. No court can enforce
as valid that which competent
enactments have declared shall not
be vailed, nor is obedience o such
an enactment a thing from which
court cab be dispensed by the
consent of the parties, or by a
failure to plead or to argue the
point at the outset; Nixon v.
Alibion Marine Insurance Co.,
(1867) L.R. 2 Ex. 338. The
enactment is prohibitory. It is not
confined to affording a party a
protection, of which he may avail
himself or not s he pleases."
The decision of the Privy Council referred to with
approval by this Court in the aforesaid decision clearly
indicates that if a proceeding before a Court is barred by a
law, a plea to that effect being a pure question of law can
be agitated any time. But if the prohibition imposed by the
Statute is with a view to a fording projection to a party,
such protection can be waived by the party. He may avail of
it or he may not avail of it as he may choose. It is not the
case of the appellant that the application for possession as
filed by the respondent-plaintiff was barred by any
provision of law. All that was contended was that it was
prematurely filed as six months period had not expired from
the date of issuance of the suit notice. That provision
obviously was enacted for the benefit and protection of the
tenant. It is for the tenant to insist on it or to waive it.
On the facts of the present case there is no escape from the
conclusion that the said benefit of protection, for reasons
best known to the appellant, was waived by it though it was
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alive to the said contention as it was mentioned at the
outset in the written, statement filed before the prescribed
authority. Thereafter it was not pressed for consideration.
Result was that the respondent landlord by the said conduct
of the appellant irretrievably changed his position and
would set prejudiced if such a contention is entertained at
such a late stage as was tried to be done before the high
Court after both the courts had concurrently held on facts
that the respondent-plaintiff had proved his case on merits.
It is not possible to agree with the contention of the
learned senior counsel for the appellant that the provision
containing the proviso to Section 21(1) of the Act was for
public benefit and could not be waived. It is, of course,
true that it is enacted to cover a class tenants who are
sitting tenants and whose premises are subsequently
purchased by landlords who seek to evict the sitting tenants
on the ground of bona fide requirement as envisaged by
Section 21(1) (a) of the Act, still the protection available
to such tenants as found in the proviso would give the
tenants as found in the proviso would give the tenants
concerned a locus penintentiae to avail of it or not. It is
easy to visualise that proceedings under Section 21(1) (a)
of the Act would be between the landlord on the one hand and
the tenant on the other. These proceedings are not of any
public nature. Nor any public interest is involved therein.
Only personal interest of landlord on the one hand and the
tenant on the other hand get clashed an called for
adjudication by the prescribed authority. The ground raised
by the Landlord under Section 21(1) (a) would be personal
to him and similarly the defence taken by the tenant would
also be personal to him. Six months’ breathing time is given
to the tenant after service of notice to enable him to put
his house in order and to get the matter settled amicably or
to get alternative accommodation if the tenant realises that
the landlord has a good case. This type of protection to the
tenant would naturally be personal to him and could be
waived. In this connection we may profitably refer to a
decision of this Court in the case of Krishan Lal v. State
of J & K [(1994) 4 SCC 422] where in Hansaria, J., speaking
for a Bench of two learned Judges has made the pertinent
observations concerning the question of waiver of a
mandatory provision providing for issuance of notice to the
parties sought to be proceeded against by the person giving
the notice, in paragraphs 16 and 17 of the Report as under:
"As to when violation of a
mandatory provision makes an order
a nullity has been the subject-
matter of various decisions of this
Court as well as of Courts beyond
the seven seas. This apart, there
are views of reputed text writers.
let us start from our on one time
Highest Court, which used to be
privy Council. This question came
up for examination by that body in
Vellayan Chettiar v. ’Government of
the province of Madras AIR 1947 PC
197 in which while accepting that
Section 80 of the Code of Civil
Procedure is mandatory, which was
the view taken in Bhagchand
Dagadusa v. Secretary of State for
India in Council 54 IA 336 it was
held that even if a notice under
Section 80 be defective, the same
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would next per se render the suit
requiring issuance of such a notice
as a precondition for instituting
the same as bad in the eye of law,
as such a defect can be waived.
This view was taken by pointing out
that the protection provided by the
Section 80 is a protection given to
the person concerned and if in a
particular case that person does
not require the protection he can
lawfully waive his right. A
distinction was made in this regard
where the benefit conferred was to
serve "an important purpose" , in
which case there would not be
waiver (see paragraph 14).
This point had come up for
examination by this Court in
Dhirendra Nath Goral v. Shudhir
Chandra Ghosh AIR 1964 SC 1300:
(1964) 6 SCR 1001 and a question
was posed in paragraph 7 whether an
act done in breach of a mandatory
provision is per force a nullity.
This Court referred to what was
stated in this regard by
Mookherjee, J. In Ashutosh Sikdar
v. Behari Lal Kirtania ILR 35 Cal.
61 at page 72 and some other
decisions of the Calcutta High
Court along with one of Patna High
Court and it was held that if a
judgment-debtor, despite having
received notice of proclamation of
sale, did not object to the non-
compliance of the required
provision, he must be deemed to
have waived his right conferred by
that provision. It was observed
that a mandatory provision can be
waived if the same be aimed to
safeguard the interest of an
individual and has not been
conceived in the public interest."
Consequently it must be held that the provision for six
months’ notice before initiation of proceedings under
Section 21(1) of the Act, though is mandatory and confers
protection to the tenant concerned, it can be waived by him.
On the facts of the present case there is no escape from the
conclusion that the appellant, for the reasons best known to
it, consciously and being alive to the clear factual
situation that the suit was filed on the ground prior to the
expiry of six months’ notice, did not think it fit to pursue
that point any further and on the contrary joined issues on
merits expecting a favorable decision in the suit and having
lost therein and got an adverse decision did not think it
fit even to challenge the decision on the ground of
maintainability of the suit while filing an appeal and
argued the appeal only on merits and only as an afterthought
at the stage of writ petition in the High Court such a
contention was sought to be taken up for the first time for
consideration. On the facts of the present case, therefore,
it must be held that the appellant had waived that
contention about the suit being premature having been filed
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before the expiry of six months from the date of the suit
notice.
Apart from waiver the appellant was stopped from taking
up such a contention as the respondent, on account of the
aforesaid contention of the appellant, had irretrievably
changed his position to his detriment and lost an
opportunity of seeking leave of the Court to withdraw the
suit with liberty to file a fresh suit, as seen earlier. The
second point for consideration is, therefore, answered in
the negative, in favour of the respondent-landlord and
against the appellant.
Point No. 3
So far as this point is concerned it is true that as a
last resort the appellant’s learned senior counsel, invited
attention of the High Court on the subsequent event, namely,
that the respondent’s wife had got an undivided interest in
the adjoining part of the building where the suit premises
were also situated. But the said subsequent event was
rightly held to have no effect on the merits of the
respondent’s claim as the respondent was a retired army
major General who had no property of his own in Lucknow town
and who could not be compelled to stay as a licensee of his
wife in a property which did not even exclusively belong to
her but was jointly owned by her brother. It is, of course,
true that the further observation of the High Court that the
respondent’s claim was covered by Explanation (iii) to
Section 21(1) of the Act was not justified as respondent had
not let out the building before his retirement from army
service. He was not the owner of the building when he
retired from army service. To that extent the reasoning of
the High Court cannot be sustained as rightly and fairly
conceded by learned senior counsel for the respondent-
landlord. Still however, the subsequent event was rightly
held by the High Court not to have any effect on the bona
fide requirement of the respondent-landlord as seen by us
earlier. The third point for consideration is also answered
in the negative, in favour of the respondent-landlord and
against the appellant.
These were the only points raised in support of the
appeal and as they fail to assist the appellant the appeal
fails and has to be dismissed. However it was contended by
learned senior counsel for the appellant that if this appeal
is to be dismissed then the appellant-company, which is
carrying on the business of manufacturing life saving drugs
and which has its office in the suit premises since 1966 and
as there is an air-conditioned godown in the said premises,
may be given reasonable time to vacate the premises so that
it can search out any alternative premises. Learned senior
counsel for the respondent has fairly left to us this
question of giving time to the appellant. In the facts and
circumstances of the case, therefore, while dismissing this
appeal we deem it fit to grant time to the appellant-company
to vacate the suit premises till 31st December 1998 on the
appellant filing a usual undertaking within four weeks in
this Country. If such an undertaking is not filed or if any
of the conditions of the undertaking is committed breach of
by the appellant , the grant of time to vacate the premises
will stand recalled. Appeal is dismissed subject to the
aforesaid grant of time to vacate, with no order as to costs
n the facts and circumstances of the case. Ad interim relief
granted earlier will stand vacated.