Full Judgment Text
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CASE NO.:
Appeal (civil) 2894 of 2001
PETITIONER:
Rakesh Vij
RESPONDENT:
Dr. Raminder Pal Singh Sethi and others
DATE OF JUDGMENT: 30/09/2005
BENCH:
CJI R.C. Lahoti,G.P. Mathur & P.K. Balasubramanyan
JUDGMENT:
J U D G M E N T
WITH
Writ Petition (Civil) No. 234 of 2003, Civil Appeal Nos. 7049/2001,
3551/2002, 7920-7921/2002 and S.L.P. (Civil) No. 20444/2001
G.P. Mathur, J.
Civil Appeal No. 2894 of 2001
1. This appeal, by special leave, has been filed against the judgment
and order dated 20.12.2000 of the High Court of Punjab and Haryana at
Chandigarh by which the revision preferred by the appellant against the
order of eviction passed against him by the Rent Controller as affirmed by
the Appellate Authority was dismissed.
2. Before examining the legal issues raised by the learned counsel for
the parties it will be convenient to notice the facts of the case in brief.
The respondent Dr. Raminder Pal Singh Sethi is a Dental Surgeon and he
is co-owner along with his wife of a premises described as Shop-cum-Flat
(for short "SCF") in Sector 37-A, Chandigarh, in which father of the
appellant late O.P. Vij was a tenant. The respondent filed a petition for
eviction of O.P. Vij on the grounds, inter alia, that he was having his
clinic in House No. 5, Sector 16-A, Chandigarh, but the owner of the said
premises, namely, Shri Wasan Singh had filed an eviction petition against
him on the ground that he was a specified landlord within the meaning of
Section 2(hh) of the East Punjab Urban Rent Restriction Act, 1949 (for
short ’1949 Act’) and the said petition was pending adjudication before
the Rent Controller. The respondent wanted to set up a bigger dental
clinic with modern gadgets, more number of dental chairs, provision for
x-ray examination, orthopentamorgrams and radio video graphs and other
facilities for which the space required was wholly inadequate in the rented
premises currently in his occupation. The tenant O.P. Vij contested the
eviction petition on various grounds and the principal ground urged was
that eviction of a tenant cannot be sought on the ground of personal
requirement of the landlord under the relevant provisions of East Punjab
Urban Rent Restriction (Extension to Chandigarh) Act, 1974 or the
amendment made to the said Act in the year 1982. The Rent Controller,
after a thorough examination of evidence on record, allowed the eviction
petition by the judgment and order dated 16.9.1999 and the said order was
affirmed in appeal by the Appellate Authority on 16.11.2000. During the
pendency of the appeal the original tenant O.P. Vij died and his legal heirs
including the present appellant Rakesh Vij, who is his son, were
substituted in his place. Rakesh Vij then preferred a revision under
Section 15(5) of the 1949 Act in the High Court, but the same was
dismissed on 20.12.2000.
3. The principal submission made by Shri Ashwani Chopra, learned
senior counsel for the appellant, is that eviction of a tenant on the ground
of bona fide requirement of the landlord is not provided for in the East
Punjab Urban Rent Restriction (Extension to Chandigarh) Act, 1974 and
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also after the amendment of the said Act in 1982 and, therefore, the
eviction petition filed by the respondent landlord wherein he had sought
eviction of the appellant’s father, who was the sitting tenant, was not
maintainable and the view taken by the Rent Control Authorities and also
by the High Court is erroneous in law.
4. Shri Sudhir Chandra, learned senior counsel for the respondent has,
on the other hand, submitted that on a correct interpretation of the
provisions of the enactment applicable to Chandigarh a landlord can seek
eviction of a tenant on the ground of his bona fide requirement and the
contention to the contrary raised by the learned counsel for the tenant is
wholly erroneous in law.
5. In order to appreciate the controversy raised it is necessary to set
out the relevant provisions of the concerned enactments. The main
enactment wherein restrictions were imposed on the increase of rent of
certain premises situated within the limit of urban areas and the eviction
of tenants therefrom is the East Punjab Urban Rent Restriction Act, 1949,
which was published in the East Punjab Gazette on 25.3.1949. Section 2
of this Act gives the definitions and sub-sections (d), (f) and (g) thereof
are being reproduced below: -
"2. Definitions \026 In this Act, unless there is anything
repugnant in the subject or context, -
(d) "non-residential building" means a building being used
solely for the purpose of business or trade:
Provided that residence in a building only for the
purpose of guarding it shall not be deemed to convert a "non-
residential building" to a "residential building";
(f) "rented land" means any land let separately for the
purpose of being used principally for business or trade;
(g) "residential building" means any building which is not
a non-residential building."
Section 13 of this Act deals with eviction of tenants. Section 13(1)
and the relevant portion of Section 13(3)(a), which have a bearing on the
controversy in hand, are being reproduced below: -
"13. Eviction of tenants, - (1) A tenant in possession of a
building or rented land shall not be evicted therefrom in
execution of a decree passed before or after the
commencement of this Act or otherwise and whether before
or after the termination of the tenancy, except in accordance
with the provisions of this section.
(2) ...........................................
(3) (a) A landlord may apply to the Controller for an order
directing tenant to put the landlord in possession \026
(i) in the case of a residential or a scheduled building if \026
(a) he requires it for his own occupation;
(b) he is not occupying another residential or a
scheduled building as the case may be in the urban
area concerned; and
(c) he has not vacated such a building without
sufficient cause after the commencement of this
Act, in the said urban area;
(ii) in the case of a non-residential building or rented land,
if \026
(a) he requires it for his own use;
(b) he is not occupying in the urban area concerned for
the purpose of his business any other such building
or rented land, as the case may be and
(c) he has not vacated such a building or rented land
without sufficient cause after the commencement of
this Act, in the urban area concerned."
The aforesaid 1949 Act was amended by the East Punjab Urban
Rent Restriction (Amendment) Act, 1956 (for short "Amendment Act,
1956"), which was published in Gazette on 24.9.1956 and the provisions
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thereof, which are relevant for the decision of the present case, are being
reproduced below:
"2. Amendment of section 13 of East Punjab Act III of
1949. \026 In clause (a) of sub section (3) of section 13 of the
East Punjab Urban Rent Restriction Act, 1949, hereinafter
referred to as the principal Act \026
(i) (a) In sub clause (i), the words "or a scheduled" shall
be omitted.
(b) In sub-paragraph (b), the words "or a scheduled"
and the words "as the case may be" shall be omitted.
(ii) (a) In sub-clause (ii) the words "a non-residential
building or" shall be omitted.
(b) In sub-paragraph (b), the words "building or" and
the words "as the case may be" shall be omitted.
(c) In sub-paragraph (c), the words "a building or"
shall be omitted."
As a result of the amendment made by the Amendment Act, 1956
the relevant provisions of the East Punjab Urban Rent Restriction Act,
1949 read as under: -
"13. Eviction of tenants \026 (1) A tenant in possession of a
building or rented land shall not be evicted therefrom in
execution of a decree passed before or after the
commencement of this Act or otherwise and whether before
or after the termination of the tenancy, except in accordance
with the provisions of this section, or in pursuance of an
order made under section 13 of the Punjab Urban Rent
Restriction Act, 1949, as subsequently amended.
(2) ............................................
(3) (a) A landlord may apply to the Controller for an order
directing the tenant to put the landlord in possession \026
(i) in the case of a residential building if ...........
................................ (Omitted as not relevant)
(ii) In the case of rented land, if -
(a) he requires it for his own use;
(b) he is not occupying in the urban area concerned
for the purpose of his business any other such
rented land, and
(c) he has not vacated such rented land without
sufficient cause after the commencement of this
Act, in the urban area concerned.
......................................................."
It will be seen that as a result of the amendment effected by the
Amendment Act, 1956 the landlord could only seek eviction of a tenant
from a residential or scheduled building or rented land, but was
completely deprived of his right to seek eviction of a tenant from a non-
residential building even if he required it for his own use.
6. As a result of reorganization of the State of Punjab by Punjab
Reorganization Act, 1966, Chandigarh was carved out as a Union
Territory with effect from 1.11.1966. The Central Government issued a
Notification on 13.10.1972 by which East Punjab Urban Rent Restriction
Act, 1949 was made applicable to the Union Territory of Chandigarh with
effect from 4.11.1972. The validity of this Notification was challenged
and a Full Bench of Punjab and Haryana High Court in Dr. Harkishan
Singh vs. Union of India and others AIR 1975 P&H 160, declared the
Notification to be invalid. The result of this decision was that East Punjab
Urban Rent Restriction Act, 1949 ceased to be applicable to the Union
Territory of Chandigarh. Thereafter, the Parliament enacted the East
Punjab Urban Rent Restriction (Extension to Chandigarh) Act, 1974 (for
short "Chandigarh Extension Act"), which was published in Gazette on
20.12.1974. It is a short Act consisting of only 4 Sections and a Schedule.
Sections 1, 2 and 3 of this Act read as follows: -
"1. Short title. \026 This Act may be called the East Punjab
Urban Rent Restriction Act (Extension to Chandigarh) Act,
1974.
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2. Definition. \026 In this Act "the Act" means the East Punjab
Urban Rent Restriction Act, 1949 as it is extended to, and
was in force in, certain areas in the pre-reorganization State
of Punjab (being areas which were administered by
municipal committees, cantonment boards, town committee
or notified area committee or areas notified as urban areas for
the purposes of that Act) immediately before the 1st day of
November, 1966.
3. Extension of East Punjab Act III of 1949 to
Chandigarh. \026 Notwithstanding anything contained in any
judgment, decree or order of any court, the Act shall, subject
to the modifications specified in the Schedule, be in force in,
and be deemed to have been in force with effect from the 4th
day of November, 1972 in the Union Territory of
Chandigarh, as if the provisions of the Act as so modified
had been included in and formed part of this section and as if
this section had been in force at all material times."
Section 4 makes provisions for validation and savings of any
judgment, decree or order passed by any court under the 1949 Act and the
Schedule makes some minor modifications whereunder it is provided that
for "State Government" occurring in the 1949 Act "Central Government"
shall be substituted and definition of "Urban Area" has been given, which
means the area comprised in the Union Territory of Chandigarh and
makes further provision empowering the Central Government to declare
any area in the said territory having regard to the density of the population
and the nature and extent of the accommodation available to be urban for
the purposes of this Act.
7. Thereafter, the Parliament enacted the East Punjab Urban Rent
Restriction (Chandigarh Amendment) Act, 1982 (for short "1982 Act"),
which also consists of only 4 sections. Sections 2 and 3 of this Act are
being reproduced below: -
"Amendment of Section 1. \026 In the East Punjab Urban Rent
Restriction Act, 1949 (East Punjab Act III of 1949), as in
force in the Union Territory of Chandigarh (hereinafter
referred to as the Principal Act), in section 1, in sub-section
(1), for the words "East Punjab", the word "Punjab" shall be
substituted.
3. Amendment of Section 2. - In section 2 of the
principal Act, for clause (d), the following clause shall be
substituted, namely: -
(d) "non-residential building" means \026
(i) a building being used solely for the purpose of
business or trade;
(ii) a building let under a single tenancy for use for the
purpose of business or trade and also for the purpose
of residence.
Explanation. \026 For the purposes of this clause, residence in a
building only for the purpose of guarding it, shall not be
deemed to convert a "non-residential building" to a
"residential building".
Section 4 makes provisions for pending cases, which is not relevant
for the purpose of the present case. The important amendment brought
about by this Act is that a "non-residential building" would also mean a
building let under a single tenancy for use for the purpose of business or
trade and also for the purpose of residence. It appears that there are many
such buildings in Chandigarh where the ground floor is used as a shop and
the first floor is used for residential purpose and they are known as Shop-
cum-Flats (SCF). The premises in dispute in the present case is a Shop-
cum-Flat and, therefore, as a result of the aforesaid amendment brought
about by the East Punjab Urban Rent Restriction (Chandigarh
Amendment) Act, 1982 it became a non-residential building.
8. To complete the chain of events it is necessary to take note of
another development, which is of great significance. The constitutional
vires of the East Punjab Urban Rent Restriction (Amendment) Act, 1956
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was challenged and the same was held to be ultra vires and was struck
down by this Court in Harbilas Rai Bansal vs. State of Punjab and another
(1996) 1 SCC 1. The judgment in this case was delivered on 5.12.1995.
After a thorough examination of the provisions of the aforesaid Act the
Court recorded its conclusion as under in paragraphs 13, 17 and 18 of the
reports: -
"13. The provisions of the Act, prior to the amendment, were
uniformly applicable to the residential and non-residential
buildings. The amendment, in the year 1956, created the
impugned classification. The objects and reasons of the Act
indicate that it was enacted with a view to restrict the
increase of rents and to safeguard against the mala fide
eviction of tenants. The Act, therefore, initially provided--
conforming to its objects and reasons--bona fide requirement
of the premises by the landlord, whether residential or non-
residential, as a ground of eviction of the tenant. The
classification created by the amendment has no nexus with
the object sought to be achieved by the Act. To vacate a
premises for the bona fide requirement of the landlord would
not cause any hardships to the tenant. Statutory protection to
a tenant cannot be extended to such an extent that the
landlord is precluded from evicting the tenant for the rest of
his life even when he bona fide requires the premises for his
personal use and occupation. It is not the tenants but the
landlords who are suffering great hardships because of the
amendment. A landlord may genuinely like to let out a shop
till the time he bona fide needs the same. Visualise a case of
a shopkeeper (owner) dying young. There may not be a
member in the family to continue the business and the widow
may not need the shop for quite some time. She may like to
let out the shop till the time her children grow-up and need
the premises for their personal use. It would be wholly
arbitrary -- in a situation like this -- to deny her the right to
evict the tenant. The amendment has created a situation
where a tenant can continue in possession of a non-
residential premises for life and even after the tenant’s death
his heirs may continue the tenancy. We have no doubt in our
mind that the objects, reasons and the scheme of the Act
could not have envisaged the type of situation created by the
amendment which is patently harsh and grossly unjust for the
landlord of a non-residential premises.
17. In Gian Devi’s case (1985 (2) SCC 683) the question for
consideration before the Constitution Bench was whether
under the Delhi Rent Control Act, 1958, the statutory
tenancy in respect of commercial premises was heritable or
not. The Bench answered the question in the affirmative. The
above quoted observations were made by the Bench keeping
in view that hardship being caused to the landlords of
commercial premises who cannot evict their tenants even on
the ground of bona fide requirement for personal use. The
observations of the Constitution Bench that "bona fide need
of the landlord will stand very much on the same footing in
regard to either class of premises, residential or commercial"
fully support the view we have taken that the classification
created by the amendment has no reasonable nexus with the
object sought to be achieved by the Act. We, therefore, hold
that the provisions of the amendment, quoted in earlier part
of the judgment, are violative of Article 14 of the
Constitution of India and are liable to be struck-down.
18. We allow the appeal, set aside the impugned judgment of
the High Court, declare the above said provisions of the
amendment as constitutionally invalid and as a consequence
restore the original provisions of the Act which were
operating before coming into force of the amendment. The
net result is that a landlord - under the Act - can seek eviction
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of a tenant from a non-residential building on the ground that
he requires it for his own use. The parties to bear their own
costs."
In view of the above quoted conclusions of this Court the position
of law, which emerges, is that a landlord can seek eviction of a tenant on
the ground of his own use both from residential and also non-residential
building under the East Punjab Urban Rent Restriction Act, 1949.
9. Now, we turn to the main controversy involved in the present case
where the landlord has sought eviction of his tenant from a Shop-cum-Flat
on the ground of his own use. As shown earlier as a result of the East
Punjab Urban Rent Restriction (Chandigarh Amendment) Act, 1982 a
Shop-cum-Flat let under a single tenancy would be a ’non-residential
building". The question, which arises for consideration is, whether in the
Union Territory of Chandigarh a landlord can seek eviction of a tenant
from a non-residential building on the ground of his own use. Shri
Ashwani Chopra, learned senior counsel for the tenant has submitted that
the Parliament enacted the Chandigarh Extension Act, 1974 and this Act
made the East Punjab Urban Rent Restriction Act, 1949 applicable to the
Union Territory of Chandigarh. At the time when the Parliament enacted
this Chandigarh Extension Act, 1974, which was published in Gazette on
20.12.1974, factually the East Punjab Urban Rent Restriction Act, 1949
did not contain any provision whereunder a landlord could have sought
eviction of a tenant from a non-residential building on the ground of his
own use on account of the amendment made to it by the Amendment Act,
1956 by which the words "a non residential building or" occurring in
Section 13(3)(a)(ii) of the 1949 Act had been omitted. Consequently in
the Union Territory of Chandigarh a landlord has no right to seek eviction
of a tenant from a non-residential building on the ground of his own use
as there exists no provision to that effect in the law applicable thereto.
10. Shri Sudhir Chandra, learned senior counsel for the landlord-
respondent, has submitted that in the case of Harbilas Rai Bansal (supra),
this Court declared the provisions of the Amendment Act, 1956, as
constitutionally invalid being violative of Article 14 of the Constitution
and consequently void in view of clause (2) of Article 13 of the
Constitution. Since the provisions of the Amendment Act, 1956 have
been found to be void, the result, which would follow, would be as if the
said Amendment Act, 1956, never came into existence and, therefore, by
virtue of Sections 2 and 3 of the Chandigarh Extension Act what the
Parliament made applicable to the Union Territory of Chandigarh was the
East Punjab Urban Rent Restriction Act, 1949, as it existed prior to its
amendment by the Amendment Act, 1956, which contained a provision
whereunder a landlord could seek eviction of a tenant from a non-
residential building on the ground of his own use.
11. We find sufficient force in the contention raised by the learned
counsel for the respondent-landlord. In Harbilas Rai Bansal (supra), this
Court held in very clear terms that the classification created by the
Amendment Act, 1956, by which the words "a non residential building
or" occurring in Section 13(3)(a)(ii) were deleted and certain other
amendments had been made, had no reasonable nexus with the object
sought to be achieved by the Act and consequently the provisions of the
Amendment Act were violative of Article 14 of the Constitution. The
amendments made were thus struck down. Clause (2) of Article 13 of the
Constitution says that the State shall not make any law which takes away
or abridges the rights conferred by Part III of the Constitution and any law
made in contravention of this clause shall, to the extent of the
contravention, be void. The real effect and import of this constitutional
prohibition contained in clause (2) of Article 13 of the Constitution has
been considered and examined in two Constitution Bench decisions of this
Court. In Deep Chand etc. vs. The State of Uttar Pradesh and others AIR
1959 SC 648, Subba Rao, J. (as His Lordship then was) held as under in
paragraph 13 of the reports: -
"13. .............................A Legislature, therefore, has no
power to make any law in derogation of the injunction
contained in Article 13. Article 13(1) deals with laws in
force in the territory of India before the commencement of
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the Constitution and such laws in so far as they are
inconsistent with the provisions of Part III shall, to the extent
of such inconsistency, be void. The clause, therefore,
recognizes the validity of the pre-Constitution laws and only
declares that the said laws would be void thereafter to the
extent of their inconsistency with Part III; whereas clause (2)
of that Article imposes a prohibition on the State making
laws taking away or abridging the rights conferred by Part III
and declares that laws made in contravention of this clause
shall, to the extent of the contravention, be void. There is a
clear distinction between the two clauses. Under clause (1), a
pre-Constitution law subsists except to the extent of its
inconsistency with the provisions of Part III; whereas, no
post-Constitution law can be made contravening the
provisions of Part III, and therefore the law, to that extent,
though made, is a nullity from its inception. If this clear
distinction is borne in mind, much of the cloud raised is
dispelled. When clause (2) of Article 13 says in clear and
unambiguous terms that no State shall make any law which
takes away or abridges the rights conferred by Part III, it will
not avail the State to contend either that the clause does not
embody a curtailment of the power to legislate or that it
imposes only a check but not a prohibition. A constitutional
prohibition against a State making certain laws cannot be
whittled down by analogy or by drawing inspiration from
decisions on the provisions of other Constitutions; nor can
we appreciate the argument that the words "any law" in the
second line of Article 13(2) posits the survival of the law
made in the teeth of such prohibition. It is said that a law can
come into existence only when it is made and therefore any
law made in contravention of that clause presupposes that the
law made is not a nullity. This argument may be subtle but is
not sound. The words "any law" in that clause can only mean
an Act passed or made factually, notwithstanding the
prohibition. The result of such contravention is stated in that
clause. A plain reading of the clause indicates, without any
reasonable doubt, that the prohibition goes to the root of the
matter and limits the State’s power to make law; the law
made in spite of the prohibition is a still-born law."
(emphasis supplied)
The same question was considered by another Constitution Bench
in Mahendra Lal Jaini Vs. The State of Uttar Pradesh and Ors. AIR 1963
SC 1019, where Wanchoo, J. (as His Lordship then was) speaking for the
Court said as under in paragraph 22 of the Reports: -
"22. .............................. Further, Art. 13(2) provides that the
law shall be void to the extent of the contravention. Now
contravention in the context takes place only once when the
law is made, for the contravention is of the prohibition to
make any law which takes away or abridges the fundamental
rights. There is no question of the contravention of Art. 13(2)
being a continuing matter. Therefore, where there is a
question of a post-Constitution law, there is a prohibition
against the State from taking away or abridging fundamental
rights and there is a further provision that if the prohibition is
contravened the law shall be void to the extent of the
contravention. In view of this clear provision, it must be held
that unlike a law covered by Art. 13(1) which was valid
when made, the law made in contravention of the prohibition
contained in Art. 13(2) is a still-born law either wholly or
partially depending upon the extent of the contravention.
Such a law is dead from the beginning and there can be no
question of its revival under the doctrine of
eclipse..............................."
(emphasis supplied)
These two Constitution Bench decisions clearly lay down that
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having regard to the prohibition contained in clause (2) of Article 13 of
the Constitution any law made in contravention of Part III of the
Constitution would be a stillborn law and such a law is dead from the very
beginning. A law, which is stillborn and is dead right from its inception,
cannot at all be taken notice of or read for any purpose whatsoever.
12. Section 2 of the Chandigarh Extension Act defines the words "the
Act" as the East Punjab Urban Rent Restriction Act, 1949 as it is extended
to, and was in force in certain areas in the pre-reorganization State of
Punjab immediately before the first day of November, 1966. In view of
Section 3 of the Chandigarh Extension Act "the Act", which would mean
the East Punjab Urban Rent Restriction Act, 1949 as extended to and was
in force will be deemed to have been in force in the Union Territory of
Chandigarh with effect from 4th day of November, 1972. The words "as it
extended to and was in force in" are very significant. Though as a matter
of fact certain amendments had been made to East Punjab Urban Rent
Restriction Act, 1949 by the Amendment Act, 1956, whereby Section
13(3)(a)(ii) had been amended and the words "non-residential building"
occurring therein had been deleted, but the said amendment having been
found to be violative of Article 14 of the Constitution and having been
struck down cannot be taken notice of or read as the amendment itself was
stillborn and dead from the very inception. Therefore, what the
Parliament extended and applied to the Union Territory of Chandigarh by
means of Chandigarh Extension Act was the East Punjab Urban Rent
Restriction Act, 1949 as it existed prior to its amendment by the
Amendment Act, 1956. Something which was stillborn or dead from the
very inception cannot be read in "the Act", as Section 3 does not say
anything except to make the 1949 Act applicable to the Union Territory of
Chandigarh with effect from the 4th day of November, 1972.
13. It may be noticed that the Chandigarh Extension Act simplicitor, or
if read in isolation, would carry no meaning and would be wholly
ineffective. In order to make this Act effective and workable one has to
necessarily read "the Act", viz., the East Punjab Urban Rent Restriction
Act, 1949. The important words in Section 3 of the Chandigarh Extension
Act are "the Act shall be in force in and be deemed to have been in force
with effect from 4th day of November, 1972 in the Union Territory of
Chandigarh" and as if this Section had been in force at all material times,
though the Chandigarh Extension Act was published in the Gazette on
20.12.1974. This Section not only made the 1949 Act applicable to the
Union Territory of Chandigarh but gave it retrospective effect from 4th
November, 1972 by virtue of the deeming provision. It is well known
principle of interpretation of statute that full effect must be given to a
statutory fiction and it should be carried to its logical conclusion. In view
of the mandate contained in clause (2) of Article 13 of the Constitution
Section 3 of the Chandigarh Extension Act cannot be interpreted to mean
that the Parliament while extending and applying the East Punjab Urban
Rent Restriction Act, 1949 to the Union of Territory of Chandigarh also
applied those provisions which were stillborn or were dead from the very
inception. The mandate of Article 13(2) of the Constitution will equally
apply to the Parliament when it is functioning as a Legislature for making
an Act. The Parliament cannot be deemed to have taken into
consideration something which was stillborn or dead.
14. Learned counsel for the appellant-tenant has next submitted that at
the time when the Chandigarh Extension Act, 1974 was enacted, the
judgment in the case of Harbilas Rai Bansal (supra) had not been rendered
and the Parliament had before it the text of East Punjab Urban Rent
Restriction Act, 1949 as it stood after its amendment by the Amendment
Act, 1956 by which in Section 13(3)(a)(ii) the words "non residential
building or" had been deleted. Naturally, therefore, the Parliament
applied its mind to the said enactment (1949 Act) which did not contain
any provision regarding eviction of a tenant from a non-residential
building and extended the same to the Union Territory of Chandigarh.
Learned counsel has also submitted that in order to interpret the
provisions of the Act the Court must look to the intention of the
Parliament and having regard to the factual scenario then existing,
namely, that at the time of passing of the Chandigarh Extension Act in the
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year 1974, the 1949 Act stood amended by the Amendment Act, 1956, it
is not possible to hold that the Parliament also intended to give a right to a
landlord to seek eviction of a tenant from a non-residential building on the
ground of his own use. In our opinion, it is not possible to interpret
Sections 2 and 3 of the Chandigarh Extension Act in the manner
suggested by the learned counsel for the tenant as it is based upon the
supposed intention of the Parliament. In Maxwell on The Interpretation
of Statutes (Twelfth edition \026 1969) on page 28 it is said that the primary
rule is to give literal construction and if there is nothing to modify, alter or
qualify the language which the statute contains, it must be construed in
the ordinary and natural meaning of the words and sentences. In Chapter
2, page 28, the principle has been stated thus: -
"The rule of construction is "to intend the Legislature to have
meant what they have actually expressed". The object of all
interpretation is to discover the intention of Parliament, "but
the intention of Parliament must be deduced from the
language used," for "it is well accepted that the beliefs and
assumptions of those who frame Acts of Parliament cannot
make the law"."
15. In State of Haryana and others vs. Ch. Bhajan Lal and others AIR
1992 SC 604 in paragraph 42, this Court quoted with approval the
following passage from the judgment of Lord Atkin in Pakala
Narayanaswami vs. Emperor AIR 1939 PC 47: -
"When the meaning of the words is plain, it is not the
duty of Courts to busy themselves with supposed intentions
................. It, therefore, appears inadmissible to consider the
advantages or disadvantages of applying the plain meaning
whether in the interests of the prosecution or accused."
In Emperor vs. Benoari Lal Sarma and others AIR 1945 PC 48,
Lord Chancellor Viscount Simon said, "In construing enacted words the
Court is not concerned with the policy involved or with the results,
injurious or otherwise, which may follow from giving effect to the
language used." Therefore, any supposed intention of the Parliament
cannot be taken into consideration for interpretation of the Chandigarh
Extension Act, 1974.
16. Learned counsel for the appellant has laid emphasis on the
Statement of Objects and Reasons of the Amendment Act, 1956, which
says that the provisions whereunder tenants of commercial premises can
be evicted on the ground of personal requirements of the landlord entail a
great hardship on such tenants and the provision allowing eviction on the
ground of personal use has been misused by certain landlords and,
therefore, it was considered necessary that the tenants of non-residential
property in Punjab should be placed at par with tenants of such property
in Delhi and other urban areas covered by the Delhi-Ajmer Act. It has
thus been submitted that the Parliament while enacting the Chandigarh
Extension Act, 1974 must have had this object in mind when it extended
the East Punjab Urban Rent Restriction Act, 1949 to the Union Territory
of Chandigarh with effect from 4.11.1972. In our opinion it will not be
proper to interpret the provisions of Chandigarh Extension Act by taking
into consideration the Objects and Reasons of another Act and the
supposed intention or notions of the law makers. It will be apt to quote
here what S.R. Das, J. (as His Lordship then was) said while speaking for
a Constitution Bench in Rananjaya Singh vs. Baijnath Singh and others
AIR 1954 SC 749: -
"The spirit of the law may well be an elusive and unsafe
guide and the supposed spirit can certainly not be given
effect to in opposition to the plain language of the sections of
the Act and the rules made thereunder. If all that can be said
of these statutory provisions is that construed according to
the ordinary, grammatical and natural meaning of their
language they work injustice by placing the poorer
candidates at a disadvantage the appeal must be to Parliament
and not to this Court."
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This being the position of law, it will not be proper to take into
consideration the Statement of Objects and Reasons of the Amendment
Act, 1956 for interpreting the provisions of Chandigarh Extension Act.
17. Learned counsel for the appellant has lastly submitted that the
provisions of the 1949 Act have been incorporated into the Chandigarh
Extension Act and, therefore, the provisions of the said Act, as they
textually stood on 20.12.1974, became part and parcel of the later Act
(Chandigarh Extension Act) and consequently the amendment made to the
said Act by the Amendment Act, 1956 have to be taken into consideration
and cannot be ignored while examining the applicability of 1949 Act to
the Union Territory of Chandigarh. The submission is that it is a case of
incorporation, which means that if a subsequent Act brings into itself by
reference some of the clauses of a former Act, the legal effect of that is to
write those Sections into the new Act as if they had been actually written
in it with pen and ink or printed in it. The result thereof is to constitute
the latter Act along with the incorporated provisions of the earlier Act, an
independent legislation, which is not modified or repealed by a
modification or repeal of the earlier Act.
18. Shri Sudhir Chandra, learned senior counsel for the respondent-
landlord has, however, submitted that the principle embodied in
legislation by incorporation or legislation by reference can have no
application here as the said principle has relevance only in the case of
amendment or repeal of an Act. According to the learned counsel as the
effect of an amendment or repeal of the Act does not arise for
consideration here, it will not be proper to apply the principle governing
the cases of legislation by incorporation for the purpose of finding out the
real import of Chandigarh Extension Act.
19. Adopting or applying an earlier or existing Act by competent
Legislature to a later Act is an accepted device of Legislation. If the
adopting Act refers to certain provisions of an earlier existing Act, it is
known as legislation by reference. Whereas if the provisions of another
Act are bodily lifted and incorporated in the Act, then it is known as
legislation by incorporation. The determination whether a legislation was
by way of incorporation or reference is more a matter of construction by
the courts keeping in view the language employed by the Act, the purpose
of referring or incorporating provisions of an existing Act and the effect
of it on the day-to-day working. Reason for it is the courts’ prime duty to
assume that any law made by the Legislature is enacted to serve public
purpose.
20. In State of Madhya Pradesh vs. M.V. Narasimhan AIR 1975 SC
1835, after review of several earlier decisions, the following principle was
enunciated: -
"Where a subsequent Act incorporates provisions of a
previous Act then the borrowed provisions become an
integral and independent part of the subsequent Act and are
totally unaffected by any repeal or amendment in the
previous Act. This principle, however, will not apply in the
following cases :
(a) where the subsequent Act and the previous Act are
supplemental to each other;
(b) where the two Acts are in pari materia;
(c) where the amendment in the previous Act, if not
imported into the subsequent Act also, would render
the subsequent Act wholly unworkable and ineffectual;
and
(d) where the amendment of the previous Act, either
expressly or by necessary intendment, applies the said
provisions to the subsequent Act."
21. The same question was examined in considerable detail in U.P.
Avas Evam Vikas Parishad vs. Jainul Islam and another (1998) 2 SCC
467, where a three Judge Bench of this Court considered the effect of
Section 55 and Schedule of U.P. Avas Evam Vikas Parishad Adhiniyam,
1965, which makes a reference to the provisions of the Land Acquisition
Act and has laid down that any land or interest therein required by the
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Parishad for any of the purposes of the Adhiniyam may be acquired under
the provisions of Land Acquisition Act, which for this purpose has to be
subject to the modifications specified in the Schedule of the Adhiniyam.
This Court, after referring to large number of earlier decisions, laid down
the following principle in paragraph 17 of the report : -
"17. A subsequent legislation often makes a reference to the
earlier legislation so as to make the provisions of the earlier
legislation applicable to matters covered by the later
legislation. Such a legislation may either be (i) a referential
legislation which merely contains a reference to or the
citation of the provisions of the earlier statute; or (ii) a
legislation by incorporation whereunder the provisions of the
earlier legislation to which reference is made are
incorporated into the later legislation by reference. If it is a
referential legislation the provisions of the earlier legislation
to which reference is made in the subsequent legislation
would be applicable as it stands on the date of application of
such earlier legislation to matters referred to in the
subsequent legislation. In other words, any amendment made
in the earlier legislation after the date of enactment of the
subsequent legislation would also be applicable. But if it is a
legislation by incorporation the rule of construction is that
repeal of the earlier statute which is incorporated does not
affect operation of the subsequent statute in which it has been
incorporated. So also any amendment in the statue which has
been so incorporated that is made after the date of
incorporation of such statute does not affect the subsequent
statute in which it is incorporated and the provisions of the
statue which have been incorporated would remain the same
as they were at the time of incorporation and the subsequent
amendments are not to be read in the subsequent legislation.
In the words of Lord Esher, M.R., the legal effect of such
incorporation by reference "is to write those sections into the
new Act just as if they had been actually written in it with the
pen or printed in it, and, the moment you have those clauses
in the later Act, you have no occasion to refer to the former
Act at all." [See: Wood’s Estate, Re, (1886) 31 Ch D 607 at
p. 615]. As to whether a particular legislation falls in the
category of referential legislation or legislation by
incorporation depends upon the language used in the statute
in which reference is made to the earlier legislation and other
relevant circumstances."
In our opinion, the principle of law underlying legislation by
incorporation or legislation by reference has not much relevance in the
present case. We do not have to examine the effect of any amendment or
repeal of any enactment. Section 3 of the Chandigarh Extension Act
makes the East Punjab Urban Rent Restriction Act, 1949, subject to the
modification specified in the Schedule, applicable to the Union Territory
of Chandigarh with effect form 4.11.1972. It is not a case where any
specific section or provision of the 1949 Act may have been made
applicable, but the provisions of the entire 1949 Act have been extended
and made applicable to the Union Territory of Chandigarh. It is in fact a
case of extension of an Act to a territory to which it was previously not
applicable.
22. This very question, namely, whether the 1949 Act was incorporated
in the Chandigarh Extension Act came up for consideration before this
Court in M/s. Punjab Tin Supply Co., Chandigarh vs. Central Government
& others AIR 1984 SC 87, and Venkataramiah, J. (as His Lordship then
was) held as under: -
"8. The Extension Act merely brought into force with effect
from November 4, 1972, the Act which was an Act in force
in the former State of Punjab with the modifications set out
in its Schedule in the Union Territory of Chandigarh and
validated all actions taken, notifications issued and orders
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made or purported to have been taken, issued or made under
the Act. Having done that it withdrew from the scene.
Thereafter the Act as modified by the Extension Act alone
has to be looked into to consider its effect on the Union
Territory of Chandigarh. As observed by this Court in
Rajputana Mining Agencies Ltd. v. Union of India (1961) 1
SCR 453 at p. 457 "there is neither precedent nor warrant for
the assumption that when one Act applies another Act to
some territory, the latter Act must be taken to be
incorporated in the former Act. It may be otherwise, if there
were words to show that the earlier Act is to be deemed to be
re-enacted by the new Act". The Act in the instant case was
only extended but not re-enacted. We should, therefore,
proceed on the assumption that the Act itself with the
amendments was in force with effect from November 4, 1972
in the Union Territory of Chandigarh."
(In this judgment East Punjab Urban Rent Restriction Act,
1949 has been referred to as "the Act" and East Punjab
Urban Rent Restriction (Extension to Chandigarh) Act, 1974
has been referred to as the "Extension Act" \026 see paras 1 and
3.)
It is, therefore, not possible to accept the submission of the learned
counsel for the appellant that the 1949 Act was incorporated in the
Chandigarh Extension Act.
23. The ultimate question is what is "the Act". For ascertaining the
meaning of the words "the Act" we have to refer back to Section 2, viz.,
the East Punjab Urban Rent Restriction Act, 1949 and the provisions of
this 1949 Act have to be seen and examined as they stood on the date
when the eviction petition was filed or till the continuance of the litigation
culminating in the final judgment. On the date when the eviction petition
was filed or at any stage subsequent thereto including the date when the
matter was heard and is being decided by this Court, it is not possible to
read the East Punjab Urban Rent Restriction Act, 1949 in a manner in
which it was amended by the Amendment Act, 1956 but has to be read as
it originally stood which contained a provision giving right to a landlord
to seek eviction of a tenant from a non residential building on the ground
of his own use. This is so because in Harbilas Rai Bansal (supra) the
provisions of the Amendment Act, 1956 were held to be violative of
Article 14 of the Constitution and were struck down. Therefore, read in
any manner the inevitable consequence is that the word "the Act"
occurring in Section 2 of the Chandigarh Extension Act has to be read as
the East Punjab Urban Rent Restriction Act, 1949 as it stood before the
Amendment Act, 1956. The result that follows is that in the Union
Territory of Chandigarh it is open to a landlord to seek eviction of a tenant
from a non residential building on the ground of his own use.
24. Apart from what has been said above, the Act has to be interpreted
in a just and equitable manner. To completely deprive a landlord of his
right to seek eviction of a tenant from a non residential building even on
the ground of his own use for all times to come would be highly unjust
and inequitable to him.
25. In the present case the Rent Controller and the Appellate Authority
have recorded concurrent finding of fact that the respondent landlord bona
fide needs the premises in question for his own use and this finding has
been affirmed in revision by the High Court. In this view of the matter we
do not find any illegality in the impugned orders. The appeal is
accordingly dismissed with costs. The appellant-tenant is granted six
months time to vacate the premises subject to his filing the usual
undertaking within one month.
Writ Petition (Civil) No. 234 of 2003
Raminder Pal Singh Sethi .. Petitioner
Vs.
Union of India & Anr. .. Respondents
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In this writ petition filed under Article 32 of the Constitution
following prayers have been made: -
"(i) Issue a writ of certiorari striking down the provisions
of Section 13(3)(a)(ii) of the East Punjab Urban Rent
Restriction (Extension to Chandigarh) Act, 1974 on
the ground of the same being ultra vires Article 14 of
the Constitution of India; and
(ii) declare that under the East Punjab Urban Rent
Restriction Act, 1949 as extended to Chandigarh vide
East Punjab Urban Rent Restriction (Extension to
Chandigarh) Act, 1974, ejectment of tenant on bona
fide ground can be made both in case of residential
building as well as non-residential building;
(iii) pass such other order(s) as this Hon’ble Court may
deem fit and proper."
In Civil Appeal No. 2894 of 2001, we have held that under East
Punjab Urban Rent Restriction Act, 1949, as extended to Chandigarh by
East Punjab Urban Rent Restriction (Extension to Chandigarh) Act, 1974,
a landlord can seek eviction of a tenant from a non-residential building on
the ground of his own use. In this view of the matter, we do not consider
it necessary to adjudicate the pleas raised in the writ petition as
substantive relief has already been granted to the writ petitioner. The writ
petition and the I.As. moved therein are disposed of.
Civil Appeal Nos. 7049/2001, 3551/2002, 7920-7921/2002 and Special
Leave Petition (Civil) No. 20444/2001
In all these matters the Rent Controller and the Appellate Authority
have recorded concurrent finding of fact that the landlord bona fide
requires the premises for his own use and this finding has been affirmed
in revision by the High Court. For the reasons given in Civil Appeal No.
2894 of 2001, there is no merit in the civil appeals and the special leave
petition, which are hereby dismissed with costs. The tenants are given six
months time to vacate the premises subject to their filing usual
undertaking within one month.