Full Judgment Text
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PETITIONER:
CHANDAVARKAR SITA RATNA RAO
Vs.
RESPONDENT:
ASHALATA S. GURAM
DATE OF JUDGMENT25/09/1986
BENCH:
MUKHARJI, SABYASACHI (J)
BENCH:
MUKHARJI, SABYASACHI (J)
SINGH, K.N. (J)
CITATION:
1987 AIR 117 1986 SCR (3) 866
1986 SCC (4) 447 JT 1986 619
1986 SCALE (2)500
CITATOR INFO :
R 1987 SC1939 (31)
RF 1988 SC 782 (57)
R 1990 SC1563 (11)
F 1991 SC1494 (8,13,14,16)
RF 1991 SC1760 (21)
RF 1992 SC 81 (11)
RF&E 1992 SC1701 (36)
ACT:
Bombay Rents, Hotel and Lodging Rates Control Act,
1947; ss. 14(2) & 15A-Whether and how far statutory tenant
governed by the Act could have created a valid licence
before 1st February, 1973.
Constitution of India, Article 227-Finding of facts-
Scope and ambit of jurisdiction of High Court to interfere.
Statutory interpretation.
Non-obstante clause ’notwithstanding anything
contained.. ’-Expression contained in statute-Meaning of-
Court to find out what is legal not what is right.
Mischief rule-Applicability of-Literal construction and
reading of the statute as a whole to be in consonance with
mischief intended to be remedied-Grammatical construction
ordinarily to be resorted to.
Transfer of Property Act, 1882, s. 108(j)-Lease-
Transfer of interest-Nature of.
Indian Easement Act, 1882, ss. 52 & 53: ’Licence’-
Nature of.
Words and Phrases
’Notwithstanding’-’subject to’-Meaning of.
HEADNOTE:
Section 15A(1) of the Bombay Rents, Hotel and Lodging
House Rates Control Act, 1947 inserted by s. 14 of the
Amending Act of 1973 provides that notwithstanding anything
contained elsewhere in that Act or anything contrary in any
other law for time being in force, or in any contract, where
any person was on the 1st day of February 1973 in occupation
of any premises, or any part thereof which is not less than
a room, as a licensee he shall on that date be deemed to
have become, for the purposes of that Act, the tenant of the
landlord in respect of the
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867
premises or part thereof, in his occupation. Sub-section (2)
of s. 14 stipulates that where the interest of a licensor,
who is a tenant of any premises, is determined for any
reason, the licensee, who by s. 15A is deemed to be a
tenant, shall, subject to the provisions of the Act be
deemed to become the tenant of the landlord, on the terms
and conditions of the agreement consistent with the
provisions of the Act. Section 13(1) (e) entitles the
landlord to ask for the eviction of the tenant if the tenant
has, after the date of commencement of the Amendment Act,
1973 unlawfully given on licence the whole or part of the
premises let to him.
The respondent-landlady had an oral lease of her flat
situated in Bombay, since 1952. She terminated that tenancy
by notice in 1970 and instituted a suit for possession on
the ground of personal requirement. The Court of Small
Causes passed an ex-parte decree for eviction against the
tenant in 1972. The appellant obstructed execution of the
decree on the plea that she was a caretaker of the premises.
Subsequently the ex-parte decree was set aside and the suit
restored. The tenant gave evidence that he was in occupation
of a part of the premises. The trial court passed a decree
against the tenant in 1976. The appeal filed by him was
dimissed by the Appellate Bench of the Small Causes Court.
A writ petition filed against the appellate decision
was dismissed by the High Court in March 1980. The appellant
having obstructed the execution of the decree confirmed by
the High Court, the landlady filed an application for
removal of the obstruction in the executing court. In the
reply filed by the appellant in July 1980 it was stated that
she was in occupation of the whole premises as a licensee,
but did not specify any date of the agreement nor did she
produce any copy thereof. She produced the agreement of
leave and licence when her deposition commenced before the
trial Judge in July 1981 and claimed exclusive possession.
The trial Judge on 25th February, 1983 allowed the
respondent-landlady’s application and ordered removal of the
appellant’s obstruction. The trial court observed that there
was no genuine agreement between obstructionist-appellant
and the tenant. However, it found that there was some
consideration and that there was very cordial relationship
between the appellant and the tenant. It concluded that the
appellant was in exclusive possession of the said premises
of not less than a room on 1st February, 1973, and prima
facie the appellant came within the provisions of s. 15A of
the Act. Being of the view that in law after the termination
of the tenancy of the tenant there was no capacity left in
the tenant to grant the leave and licence, it held that
there was no
868
subsisting licence in law in favour of the appellant and as
such she was not entitled to protection as a licensee.
The Appellate Bench of the Small Causes Court on an
appraisal of the evidence concluded that it could be
reasonably said that there was a licence and not a lease,
that the entire evidence went to show that the appellant
must have been in possession of the premises in question
since 1964-65 continuously as a licensee. It did not accept
the contention that the tenant was in exclusive possession.
It held that the appellant was in possession on 1st
February, 1973, and therefore entitled to protection under
s. 15A of the Act.
A proceeding under Art. 227 of the Constitution was
thereafter moved by the respondent-landlady before the High
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Court. The High Court took the view that the obstruction was
raised by the appellant at the instance of the judgment-
debtor tenant, that the executing court was right in
rejecting the stand taken by the obstructionist, that the
case that the licensee was in possession on the relevant
date had not been made out, that since 1968 or thereabout
the judgment-debtor-tenant as also the appellant-
obstructionist had been making use of the premises for
diverse purposes and it could not be said that the appellant
was in exclusive possession in her own right, that mere
occupation was different from possession and was not enough
to spell out a licence, and that to get the benefit of s.
15A of the Act it had to be established that there was a
valid licence subsisting on the material date, i.e., the
date on which s. 15A was incorporated. It noted that the
judgment-debtor was a statutory tenant inasmuch as the
decree for ejectment had been passed against him and that
there was no case that the judgment debtor under the
original terms of the lease between him and the respondent
was entitled to create a sub-tenancy or a licence in respect
of the premises or any part thereof. Therefore, it could not
be said that the appellant was a licensee and had acquired
protection under s. 15A of the Act. It was the judgment-
debtor who was in possession and who allowed the appellant
to continue for all these years. Relying on a Full Bench
decision of the High Court in Ratanlal Chandiprasad v.
Maniram Darkhan (W.P. No. 76 of 1980 decided on 18th
October, 1985) it held that since in the instant case in the
terms of agreement of sub-lease, there was no right to
create licence in the tenant, the tenant could not have
created a valid licence in favour of the appellant.
In this appeal by special leave it was contended for
the appellant
869
that the High Court was in error in interfering with the
findings recorded by the appellants bench of the Court of
Small Causes in an application under Art. 227 of the
Constitution.
For the respondent it was contended that under s. 15(1)
read with s. 15(2) of the Act a tenant was not entitled to
create any sub-tenancy or to transfer his interest in the
premises after 21st May, 1959 unless the contract of tenancy
positively allowed to do so, that a statutory tenant
continued to be possessed of the same rights and was subject
to the same disabilities as a contractual tenant, that under
s. 53 of the Indian Easement Act, 1882 the right of any
person to create any licence was coterminus with his right
to transfer his interest in the property effected by the
licence, that it was wrong to assume that a statutory tenant
was no longer bound by the terms of his contract of tenancy
after his contract was terminated by notice of the landlord,
and that the non-obstante clause in s. 15-A of the Act which
protected the operative part of the section did not validate
a licence which was invalid.
Allowing the appeal, the Court,
^
HELD:1.1 The High Court exceeded its jurisdiction in
interfering with the finding of facts made by the Appellate
Court. [903E]
1.2 In exercise of jurisdiction under Article 227 of
the Constitution, the High Court can go into the question of
facts or look into the evidence if justice so requires it.
But it should decline to exercise that jurisdiction in the
absence of clear cut down reasons where the question depends
upon the appreciation of evidence. It also should not
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interfere with a finding within the jurisdiction of the
inferior tribunal or court except where the finding is
perverse in law in the sense that no reasonable person
properly instructed in law could have come to such a finding
or there is any mis-direction in law or a view of fact has
been taken in the teeth of preponderance of evidence or the
finding is not based on any material evidence or it has
resulted in manifest injustice. Except to that limited
extent the High Court has no jurisdiction. [883G-H; 884A]
1.3 The Courts must not use the power under Article 227
as a cloak of an appeal in disguise. The writ of Certiorari
does not lie in order to bring up an order or decision for
rehearing of the issues raised in the proceedings. [883D-E]
In the instant case, both the trial court and the
appellate court
870
after discussing the evidence had come to the conclusion
that the appellant was in possession on or before 1st
February, 1973. The trial court had expressed doubt about
Ex. A but ultimately accepted the position. The appellate
court had observed that it could not be said that it was a
concocted story and concluded that there was a licence.
Though there were discrepancies in the evidence of the
obstructionists and there was inconsistency in the conduct
of the judgment-debtor in resisting the suit, yet all these
were for the Court’s finding facts. The very fact that the
trial court came to one conclusion and the appellate court
came to another conclusion in respect of certain aspects was
an indication of the position that two views were possible.
In preferring one view to another of factual appreciation of
evidence, the High Court transgressed its limits of
jurisdiction under Article 227 of the Constitution. [884B-C]
D.N. Banerji v. P.R. Mukharjee & Ors., [1953] SCR 302
at 305; Babhutmal Raichand Oswal v. Laxmibai R. Tarte and
another, AIR 1975 SC 1297; R. v. Nothrumberland Compensation
Appeal Tribunal, Ex. Parte Shaw, [1952] (1) All England Law
Reports 122 at 128; Harbans Lal v. Jagmohan Saran, [1985] 4
SCC 333; Trimbak Gangadhar Telang and Another v. Ram Chandra
Ganesh Bhide and Others, [1977] 2 SCC 437; and Smt. M.M.
Amonkar and Others v. Dr. S.A. Johari, [1984] 2 SCC 354
referred to.
2.1 The High Court was in error on the construction of
the provisions of s. 15A of the Bombay Rents, Hotel and
Lodging House Rates Control Act, 1947. [903E-F]
2.2 All licensees created by landlords or by the
tenants before 1st January, 1973 and who were in actual
occupation of premises, which was not less than a room,
would be the licensees of the landlord or tenant and whether
there be any term in the original agreement of tenancy
permitting creation of such tenancy or licences or not, they
would become tenants under the Act. [903F-G]
2.3 Licence is a personal privilege to do something on
a premises which otherwise would be unlawful. It is not an
interest in property but purely a personal right. Grant of
licence does not entail transfer of interest, nor create any
interest in property. A tenant protected by statute is
entitled to create a licence. He is in the same position as
a contractual tenant until the decree for eviction is passed
against him. The rights of a contractual tenant include the
right to create licence, even if he is the transferor of
interest. Therefore, until a decree of
871
eviction was passed against the tenant he could have created
a licence before 1st February, 1973. [899F-G]
Waman Shrinivas Kini v. Ratilal Bhagwandas & Co.,
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[1959] 2 Suppl. SCR 217; V. Dhanapal Chettiar v. Yesodai
Ammal, [1980] 1 SCR 334 at 340; Gian Devi Anand v. Jeevan
Kumar and Others, [1985] 2 SCC 683 at 686-687 and 707; Anand
Nivas (Private) Ltd. v. Anandji Kalyanji Podhi & Ors.,
[1964] 4 SCR 892; Jagdish Chander Chatterjee & Ors. v. Sri
Kishan & Anr., [1973] 1 SCR 850; Damadilal and Others v.
Parashram and Others, [1976] Supp. SCR 645; Ganpat Ladha v.
Sashikant Vishnu Shinde, [1978] 3 SCR 198; Ludhichem
Agencies Etc. v. Ahmed R.V. Peer Mohamed and Anr., [1982] 1
SCR 712; B.M. Lall v. Dunlop Rubber & Co. Ltd. & Ors.,
[1968] 1 SCR 23; Vasant v. Dikkava. AIR 1980 Bombay 341; and
C.K. Thakur v. N.L. Shetty (First Appeal No. 754 of 1978)
Bombay High Court, referred to.
2.4 It cannot be said that s. 15A was enacted to
protect the interest of licensees of the landlords and not
the licensees of the tenants. The aims and objects, and the
scheme of the Amending Act do not warrant a restricted
meaning to the expression ’licence’. The amended section
says that whoever is in possession as a licensee shall be
deemed to have become for the purposes of the Act the tenant
of the landlord. Further, s. 15A read with s. 14(2) of the
Act make it apparent that where the interest of a licensor,
who is a tenant of any premises, is determined for any
reason, the licensee, who by s. 15A is deemed to be a
tenant, shall, subject to the provisions of the said Act be
deemed to be a tenant of the landlord, on the terms and
conditions of the agreement consistent with the provisions
of the Act. [900F-H]
2.5.1 It is not possible to accept the view that the
non-obstante clause in s. 15A, which was connected with the
operative part of the section, that is, the licensee shall
on the date specified be deemed to have become a tenant,
does not detract from the power of the tenant not to create
licence. Such a construction would curtail the language of
the section and render the amendment meaningless. Unless one
is constrained by compulsion to give a restricted meaning,
one should not do it. There is no such compulsion in this
case. [902F-G]
Aswini Kumar Ghosh & Another v. Arabinda Bose &
Another, [1953] SCR 1; and Dominion of India & Another v.
Shribai A. Irani & Another, [1955] 1 SCR 206 at 231 referred
to.
872
2.5.2 If the view that a statutory tenant, whose
contractual tenancy did not specifically authorise him to
sublet or grant lease, could not create a valid licence
before coming into operation of the amendment on Ist
February, 1973 were to prevail then it will defeat the
purpose of the non-obstante clause in s. 15A of the Act.
[901A]
2.5.3 The expression ’notwithstanding’ is in
contradistinction to the phrase ’subject to’, the latter
conveying the idea of a provision yielding place to another
provision or other provisions to which it is made subject. A
clause beginning with the expression ’notwithstanding
anything contained in this Act or in some particular
provision in the Act or in some particular Act or in any law
for the time being in force, or in contract’ is more often
than not appended to a section in the beginning with a view
to give the enacting part of the section in case of conflict
an overriding effect over the provision of the Act or the
contract mentioned in the non-obstante clause. It is
equivalent to saying that in spite of the provision of the
Act or any other Act mentioned in the non-obstante clause or
any contract or document mentioned the enactment following
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it will have its full operation or that the provisions
embraced in the non-obstante clause would not be an
impediment for an operation of the enactment. [903A-D]
In the instant case, the non-obstante clause in s. 15A
clearly provides that a licensee, who was not a tenant,
shall nevertheless in the circumstances mentioned in the
section, be deemed to have become a tenant of the landlord.
The South India Corporation (P) Ltd. v. The Secretary,
Board of Revenue, Trivandrum & Anr., AIR 1964 SC 207 at 215
[1964] 4 SCR 280.
2.6 In finding out the meaning of the expressions used
the courts must find out what is legal, not what is right.
The rule of construction of a statute is to give effect to
the intention of the legislature, to be collected from the
statute itself, and not to amend what is actually expressed.
The words of the statute where the language is plain must
primafacie be given their ordinary meaning. Where the
grammatical construction is clear and manifest and without
doubt that construction ought to prevail unless there are
some strong and obvious reasons to the contrary or it led to
any manifest absurdity or repugnance in which case the
language may be varied or modified so as to avoid
inconvenience, but no further. [901A-C; E-G]
873
In the instant case, nothing has been shown to warrant
that such literal construction should not be given effect
to. Under s. 15A all licensees who were there on 1st
February, 1973 were to be protected and subsequent licences
were made illegal, as was done in the case of sub-tenancy
from 1959. It was intended to protect very large number of
legitimate persons in occupation and also to eliminate
future mischief Such a literal construction and reading of
the statute as a whole is in consonance with the mischief to
be avoided. [901D]
Since in the instant case, the licence was created
before 1st February, 1973 the licensee must, therefore, by
the express terms of s. 15A of the Act, continue to be a
tenant of the landlord in respect of the premises in
question. [903F-G]
Nokes v. Doncaster Amalgamated Collieries, Ltd., [1940]
A.C. 1014 at 1022; Heydon’s case, 76 E.R. 637; Maxwell ’On
the Interpretation of Statutes’, 12th Ed., p. 40; Becks v.
Smith, [1836] 2 M. & W. 191 at 195 and TVA v. Hill, U.S.
Supreme Court Reports, 57 Lawyers’ Ed. 119 at 146; and
Halsbury’s Laws of England, 4th Ed., Vol. 44, para 856,
referred to.
Full Bench decision of Bombay High Court in R. C. Jalan
v. R. Darkhan, W.P. No. 76 of 1980 dated 18th October, 1985
overruled.
3. When one person grants to another, or to a definite
number of other persons, a right to do, or continue to do,
in or upon the immovable property of the grantor, something
which would, in the absence of such right, be unlawful, and
such right does not amount to an easement or an interest in
the property, such right is called a licence.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 840 of
1986
From the Judgment and Order dated 20.12.1985 of the
Bombay High Court in W.P. No. 1130 of 1984.
Dr. Y.S. Chitale, Uday Lalit and P.H. Parekh for the
Appellant.
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V.M. Tarkunde and Mrs. M. Karanjawala for the
Respondent.
The Judgment of the Court was delivered by
SABYASACHI MUKHARJI, J. The following two questions
arise
874
in this appeal by special leave from the judgment and order
of the learned single judge, Bombay High Court dated 20th
December, 1985:
(i) how far can the High Court in exercise of the
power under the writ jurisdiction under Article
227 of the Constitution interfere with the
findings of facts by the appropriate authorities;
and
(ii) whether and how far a statutory tenant
governed by Bombay Rent Act, 1947 could have
created a valid licence before 1973?
In order to appreciate the questions, it is necessary
to refer to certain facts. One Shri S.P. Rao was an oral
lessee in respect of Flat No. 10-A in Konkan Cooperative
Housing Society Ltd. Mahim, Bombay (hereinafter called the
said premises) of one Smt. Ashalata S. Guram, the respondent
herein since 1952. On or about 10th November, 1966, it is
alleged that there was a written agreement of leave and
licence entered into between the tenant, Shri S.P. Rao and
the appellant herein in respect of the premises being the
entire flat. According to the respondent land-lady this is
an ante document created for the purpose of the present
obstructionist proceedings out of which the present appeal
arises. In 1970, the tenancy of Shri S.P. Rao was terminated
by notice of the respondent, landlady as her husband was
being posted in Bombay prior to his retirement in 1971. The
respondent landlady instituted a suit for possession of the
said premises on the ground of personal requirement, sub-
letting and nonpayment of rent. In the suit, the brother of
the present appellant was made a party-defendant as a sub-
lessee. It is stated before us and in the proceedings that
according to procedure prevalent in Bombay Small Causes
Court which incidentally has exclusive jurisdiction under
the Bombay Rent Act over these matters, a landlord’s suit
for possession is expedited if the suit is confined to the
ground of his personal requirement. Accordingly, it is
stated, that the landlady, the respondent herein, gave up
the other grounds of eviction except that of personal
requirement and the name of the appellants’s brother was
deleted as a defendant in the suit. In 1972, an ex-parte
decree for eviction was passed by the Court of Small Causes
against the tenant, Shri S.P. Rao. During the course of the
execution of the said decree, the appellant obstructed. She
asserted before the bailiff that she was a caretaker of the
premises and was herself staying elsewhere.
It was highlighted before us that she did not at that
time rely on
875
the alleged agreement of leave and licence while offering
obstruction to the execution of the decree. Subsequently,
the ex-parte decree was set aside and the suit was restored.
The Trial Court on 7th November, 1976 passed a decree of
eviction against the tenant Shri S.P. Rao. The tenant, Shri
S.P. Rao gave evidence that he was in occupation of a part
of the premises and that he required the premises for his
residence as well as business.
On 23rd January, 1978, the appeal filed from the decree
of eviction filed by the tenant Shri S.P. Rao was dismissed
by the Appellate Bench of the Bombay Small Causes Court. On
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20th March, 1980, a Writ Petition filed by the tenant Shri
S.P. Rao against the appellate decision of the Division
Bench of the Small Causes Court, Bombay was dismissed by the
High Court. On or about 19th June, 1980, the present
appellant and four others having obstructed the execution of
the decree confirmed by the High Court, the landlady filed
an application for removal of the obstruction in the
executing court against all the five obstructionists. On or
about 31st July, 1980 out of the five obstructionists, only
the present appellant who was obstructionist No. 3 filed a
reply saying that she was in occupation of the whole
premises as a licensee, but she did not specify any date of
the agreement nor did she produce any copy thereof at that
time, the respondent urged before us. The appellant produced
the agreement of leave and licence when her deposition
commenced before the trial judge on 8th July, 1981. The
trial judge on 25th February, 1983 allowed the respondent
landlady’s application and ordered removal of the
appellant’s obstruction.
However, on 12th January, 1984, the appellate bench of
the Bombay Small Causes Court allowed the appeal filed by
the present appellant and discharged the obstructionist
notice. In a Writ Petition filed by the respondent landlady,
the High Court on 20th December, 1985 set aside the judgment
and order of the Appellate Bench of the Small Causes Court
and restored the order of the Executing Court. The High
Court set aside the factual findings that there was a valid
licence at the time of the coming into operation of Section
15A of the Bombay Rents, Hotel and Lodging House Rates
Control Act, 1947 (hereinafter called the ’Act’). The Full
Bench of the High Court had in the meantime considered the
question whether a statutory tenant governed by the Act
could have created a valid licence before 1973. The Full
Bench of the High Court in Writ Petition No. 76 of 1980-
Ratanlal Chandiprasad v. Raniram Darkhan etc. 18th October,
1985, had held that unless the contractual tenant had been
given a specific right to
876
create a licence, the licence created without a specific
clause in their agreement of sub-lease would not be a
licence entitling protection under section 15A of the Act.
Relying on the said Full Bench decision, the learned single
judge of the High Court in the Judgment under appeal held
that since in this case as in the terms of agreement of sub-
lease, there was no right to create licence in the tenant,
the tenant could not have created a valid licence in favour
of the appellant. The licensee being the obstructionist
lost. The present appeal arises out of the said decision of
the Bombay High Court.
It may be mentioned that the learned trial judge of the
Court of Small Causes in his decision on 25th March, 1983
has discussed the factual aspects. After referring to the
facts that it was asserted before the Court of Small Causes
that the appellant had observed that she was not aware of
the litigation between the landlady and her tenant and that
she had paid rent of the said premises to the knowledge of
the landlady and she was in possession of the said premises.
It was further stated by the appellant that the
agreement between her and the defendant tenant was
subsisting on 1st February, 1973 being the date when
provisions of section 15A of the said Act came into
operation.
Mr. Tarkunde, learned counsel appearing for the
respondent landlady herein drew our attention to the
relevant evidence and the observations of the learned trial
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judge as well as the appellate bench of the Court of Small
Causes and the entire course of conduct of the present
respondent to emphasise that the appellant’s case was
concocted story and that the appellant was not in possession
of the premises in question by virtue of any valid licence
that the agreement between the obstructionist appellant and
the tenant was not subsisting on 1st February, 1973. It was
a document brought about subsequently and that is why, Mr.
Tarkunde asserts, it was not produced in the first instance
as has been noted before.
It was noted by the learned trial judge in the first
Court trying the obstructionist notice that in reply to the
obstructionist’s application filed by the present
respondent, there was no mention to this alleged agreement
dated 10th November, 1966 which is Ex. ’A’ in the
proceedings. The said agreement is at page 143 of Volume II
of the present Paper Book. The document is on a non-Judicial
Stamp paper and the stamps had been purchased by Malhotra &
Kapoor. It was
877
submitted by Shri Tarkunde that there was no evidence to
suggest that Malhotra and Kapoor had any connection with the
obstructionist. It is further noted in the recital part of
the said purported agreement that it is agreed between the
parties that the tenant had agreed to accept the leave and
licence of the premises i.e. the entire premises for 11
(eleven) months with effect from 1st November, 1966. It was
stated that the monthly leave and licence fee of the
premises would be paid at the rate of Rs.100. In addition to
this the licensee would have to pay the electricity charges
to the Bombay Electric Supply Corporation; that he would not
assign the premises and the other consequential clauses were
there. Incidentally in challenging the existence of this
agreement, Mr. Tarkunde emphasised before us the fact that
while the tenant had the obligation to pay the monthly rent
of Rs.122, he had parted with the entire premises on leave
and licence on receipt of Rs.100 per month. This, Mr.
Tarkunde submitted, was an incongruity which falsified the
truth of the assertion now sought to be made in support of
the appellant. The Trial Court examined all these and the
oral evidence of the appellant. The Trial Court noted that
she had stated that she originally resided in the said
premises without the written agreement but she entered into
the written agreement Ex. A on 10th November, 1966 and
thereafter she was in exclusive possession of the same. She
was cross-examined about the purchase of the stamp paper and
she stated that her brother had obtained the stamp paper.
The premises in question was a flat of three rooms. The
trial court had discussed the entire evidence and the
probabilities and also the improbabilities of the situation.
The Trial Court noted the incongruity of the situation of
the difference between the rent which was Rs.122 payable by
the tenant and the licence fee receivable by the tenant
which was Rs.100. The Trial Court therefore observed that
there was no genuine agreement between obstructionist, the
appellant herein and the tenant as contained in Ex. ’A’. The
Trial Court, however, came to the conclusion that there was
some consideration. What was the consideration, the Trial
Court did not find it necessary to determine. The appellant
claimed exclusive possession. There was some inconsistency
in support of this contention and the other evidence
available. The Trial Court, however, came to the conclusion
that there was very cordial relationship between the
appellant and the tenant-defendant No. 1 in the suit and
that the appellant was residing in a flat at Sleater Road or
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Grant Road from 1952 to 1956 with her aunt but from 1964-65
she started occupying the said disputed premises. The
evidence of the tenant was also examined. The court after
discussing all the evidence came to the conclusion that the
appellant was in exclusive possession of the said promises
of not less than a room on 1st February, 1973. Therefore, as
878
such, according to the Trial Court, there was some
consideration, and prima facie the appellant came within the
provisions of section 15A of the Act. The Trial Court,
however, on authorities came to the conclusion that in law
after the termination of the tenancy of the tenant there was
no capacity left in the tenant to grant the leave and
licence and as such the appellant was not entitled to
protection. In that view of the matter, the Trial Court
observed that there was no subsisting licence in law in
favour of the appellant and as such it was not entitled to
protection as a licensee who could be a deemed tenant of the
said premises and possession was ordered by the Trial Court.
From the aforesaid order of the trial judge of the
Small Causes Court, Bombay, there was an appeal before the
Appellate Bench of the said Court.
After reiterating the facts and the deposition and
discussing the evidence and noting that the appellant was in
visiting terms with the tenant and was visiting Bombay from
time to time and was staying in the premises, and the Court
noted the execution of Ex. ’A’. The crossexamination was
noted. It was further observed by the appellate bench that
she was badly in need of shelter anywhere and so she had
taken the said premises from tenant, as the members of the
family of her aunt were more and the premises was congested,
she thought it advisable to shift to the suit premises where
she could reside with some comfort. The Court concluded that
this can reasonably be said that there was a licence and not
a lease. The Court noted that it was never the intention of
the tenant to give the premises permanently to the
appellant. Electricity bills from 1969 to 1982 were produced
in favour of the appellant as Ex. C1 and C2. Certain postal
correspondence which she had received in the said premises
were also produced. The Appellate Bench noted that an
attempt had been made to show that Ex. A was prepared
subsequently but according to the appellate bench that
attempt had not succeeded.
The appellate bench after discussing all the facts
including installation of telephone, bills, correspondence,
etc. came to the conclusion that the entire evidence went to
show that the appellant must have been in possession of the
premises in question since 1964-65 continuously as a
licensee. The Appellate Court did not accept that the tenant
was in exclusive possession. The Bench examined the
applicability of section 15A of the said Act. The Appellate
Court came to the conclusion that it was clearly established
that the appellant was in possession
879
on 1st February, 1973 and in view of some of the decisions
then prevailing in the Bombay High Court came to the
conclusion that the appellant was entitled to protection
under section 15A of the Act. The order of the trial judge
was therefore set aside and the obstructionist notice was
discharged.
In respect of the said decision a proceeding under
article 227 of the Constitution was moved before the Bombay
High Court. Out of the judgment of the High Court in that
application the present appeal arises.
In the judgment under appeal the High Court referred to
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the facts as noted in the judgment, and Dr. Chitale on
behalf of the appellant urged that the High Court was
grossly in error in interfering with the findings recorded
by the appellate bench of the Court of Small Causes in an
application under article 227 of the Constitution. On the
other hand Mr. Tarkunde emphasised that the findings
properly read would indicate that the tenant was in
possession of the premises in question and that the
appellant was setting up an inconsistent and a false story
in order to attract the benefit of section 15A of the said
Act. The learned single judge of the Bombay High Court was
of the view that executing court was right in rejecting the
stand taken by the obstructionist. The High Court came to
the conclusion that the obstruction was raised by the
appellant at the instance of the judgmentdebtor of the
tenant and as such the respondent herein was entitled to
possession and obstruction removed. The single learned judge
of the High Court noted the ground that the other grounds
were given up i.e., subletting and bona fide and reasonable
requirement. According to the learned judge, reference to
the evidence would reveal that the stand taken by the
judgment debtor in the suit was reversed and the learned
judge discussed the evidence about the application for
telephone etc. and also noted Ex. A and the evidence as to
his occasional stay with his friends or in a hotal. About
Ex. ’A’ the Court did not accept the version that it was
extended from time to time and that the appellant was
continuing in possession by virtue of the agreement as it
was for a short duration. On the other hand, the learned
judge came to the conclusion that the judgment under appeal
was for a short duration and in terms there was no extension
after the expiry of the period mentioned therein. The
learned judge came to the finding that since at least 1968
or thereabouts the judgment-debtor-tenant as also the
appellant obstructionist had been making use of the premises
for diverse purpose and it could not be said that the
appellant was in exclusive
880
possession in her own right. Furthermore, the Court was of
the view that it was the judgment-debtor who was in
possession and who allowed the appellant to continue for all
these years. But the story that this or that part of the
premises was in exclusive possession of the appellant was,
according to the learned single judge of the High Court,
patently false. The learned judge further came to the
conclusion that Ex. A was a concoction manufactured for
these proceedings and the interested testimony of the
witnesses could not furnish even a reasonably true
indication of what the terms could have been. The plea that
the appellant was a licensee and had therefore acquired
protection under section 15A of the said Act could not be
sustained on the basis of the above evidence, according to
the learned judge. All that could be said was that the
appellant was allowed to reside in the suit pemises and this
might have been for reason like the judgment-debtor being
under a threat of eviction and therefore introducing hurdles
to the inevitable execution, according to the learned single
judge of the High Court. The High Court further observed
that mere occupation was different from possession and did
not confer any right upon the occupant and was not enough to
spell out a licence.
The learned single judge of the High Court factually in
substance held that the case that the licensee was in
possession on the relevant date i.e. on 1st February, 1973
had not been made out. The High Court then examined the
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question whether in law the appellant could be considered to
be a tenant in view of the provisions of section 15A of the
said Act. The High Court referred to the full bench decision
of the Bombay High Court in Writ Petition No. 76 of 1980
mentioned hereinbefore where one of the questions considered
by the bench was whether a statutory tenant governed by the
Bombay Rent Act could have created a valid licence before
coming into operation of amendment by 15A of the said Act on
1st February, 1973. The learned single judge of the High
Court noted that the judgment-debtor was a statutory tenant
inasmuch as the decree for ejectment had been passed against
him. There was no case that the judgment debtor, under the
original terms of the lease between him and the respondent
was entitled to create a sub-tenancy or a licence in respect
of the premises or any part thereof. The High Court noted
that to get the benefit of Section 15A of the said Act, it
had to be established that there was a valid licence
subsisting on the material date i.e. the date on which
section 15A was incorporated. After noting the judgment of
the full Bench which we shall separately refer to, the High
Court noted the order of the full Bench that there were two
categories, namely (A) a
881
tenant who, under the tenancy agreement was specifically
entitled to sublease his interest (for short, "category ’A’
tenant") and another category ’B’ noted as follows:
(B) a tenant who under the tenancy agreement is
not so specifically entitled to sublease or whose
tenancy agreement is silent about it (for short,
"category ’B’ tenant").
and therefore in view of that decision the learned
single judge denied relief to the appellant under section
15A of the said Act. In the premises the order of the
appellate Court of Small Causes was set aside and warrant of
possession was issued with a direction to remove the
appellant from the premises in question.
This appeal challenges the said judgment and order. As
mentioned hereinbefore two questions require consideration-
how far and to what extent in exercise of its jurisdiction
under article 226 or 227 of the Constitution and in this
respect regarding power to deal with factual findings, the
jurisdiction of the High Court is akin both under articles
226 and 227 of the Constitution, can the High Court
interfere with the findings of fact? It is well-settled that
the High Court can set aside or ignore the findings of fact
of an appropriate court if there was no evidence to justify
such a conclusion and if no reasonable person could possibly
have come to the conclusion which the courts below have come
or in other words a finding which was perverse in law. This
principle is well-settled. In D.N. Banerji v. P.R. Mukharjee
& Ors., [1953] SCR 302 at 305 it was laid down by this Court
that unless there was any grave miscarriage of justice or
flagrant violation of law calling for intervention it was
not for the High Court under articles 226 and 227 of the
Constitution to interfere. If there is evidence on record on
which a finding can be arrived at and if the court has not
mis-directed itself either on law or on fact, then in
exercise of the power under article 226 or article 227 of
the Constitution, the High Court should refrain from
interfering with such findings made by the appropriate
authorities. We have noted that both the trial court and the
appellate court after discussing evidence have come to the
conclusion that the appellant was a licensee in possession
on or before 1st February, 1973. The learned trial court had
expressed doubt about Ex. A but ultimately accepted the
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position. There was leave and licence agreement. The learned
appellate bench of the Court of Small Causes doubted Ex. A
and said that it was a concocted story. It is true that
there were discrepancies in the evidence of the
obstructionists and there was
882
inconsistency in the conduct of the judgment-debtor in
resisting the suit. Yet all these are for the Court’s
finding facts and if such fact-finding bodies have acted
properly in law and if the findings could not be described
as perverse in law in the sense that no reasonable person
properly instructed in law could have come to such a
finding, such findings should not be interfered with within
the exercise of the jurisdiction by the High Court under
article 226 and article 227 of the Constitution.
In case of finding of facts, the Court should not
interfere in exercise of its jurisdiction under article 22
of the Constitution. Reference may be made to the
observations of this Court in Babhutmal Raichand Oswal v.
Laxmibai R. Tarte and another, AIR 1975 SC 1297 where this
Court observed that the High Court could not in the guise of
exercising its jurisdiction under article 227 convert itself
into a court of appeal when the legislature has not
conferred a right of appeal. The High Court was not
competent to correct errors of facts by examining the
evidence and reappreciating. Speaking for the Court,
Bhagwati, J. as the learned Chief Justice then was, observed
at page 1301 on the report as follows:
"The Special Civil Application preferred by the
appellant was admittedly an application under
Article 227 and it is, therefore, material only to
consider the scope and ambit of the jurisdiction
of the High Court under that article. Did the High
Court have jurisdiction in an application under
Art. 227 to disturb the findings of fact reached
by the District Court? It is well settled by the
decision of this Court in Warryam Singh Vs.
Amarnath 1954 SCR 565-(AIR 1954 SC215) that the:
"...power of superintendence conferred by
Article 227 is, as pointed out by Harries, C.J.,
in Dalmia Jain Airways Ltd. v. Sukumar Mukherjee,
AIR 1951 Cal 193 (S.B.) to be exercised most
sparingly and only in appropriate cases in order
to keep the Subordinate Courts within the bounds
of their authority and not for correcting mere
errors."
This statement of law was quoted with
approval in the subsequent decision of this Court
in Nagendra Nath Bora v. The Commr. of Hills
Division 1958 SCR 1240-(AIR 1958
883
SC 398) and it was pointed out by Sinha, J., as he
then was, speaking on behalf of the Court in that
case:
"It is thus, clear that the powers of
judicial interference under Art. 227 of the
Constitution with orders of judicial or quasi-
judicial nature, are not greater than the power
under Art. 226 of the Constitution. Under Art. 226
the power of interference may extend to quashing
an impugned order on the ground of a mistake
apparent on the face of the record. But under Art.
227 of the Constitution the power of interference
is limited to seeing that the tribunal functions
within the limits of its authority."
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The history and the development of the writ of
Certiorari, and scope and ambit of its application have been
emphasised by Lord Denning in R. v. Nothrumberland
Compensation Appeal Tribunal, Ex. Parte Shaw, [1952] (1) All
England Law Reports 122 at 128. It is not necessary to
reiterate these. But the courts must guard themselves
against the error mentioned by Morris, L.J. in the said
decision at page 133 to use the power under Art. 227 as the
cloak of an appeal in disguise. The writ of Certiorari does
not lie in order to bring up an order or decision for
rehearing of the issues raised in the proceedings. These
inhibitions are more often than not transgressed by the
Courts in exercise of jurisdiction under Art. 227.
In this connection reference may also be made to the
observations of this Court in Harbans Lal v. Jagmohan Saran,
[1985] 4 SCC 333.
See in this connection the observations of this Court
in Trimbak Gangadhar Telang and Another v. Ram Chandra
Ganesh Bhide and Others, [1977] 2 SCC 437 Smt. M.M. Amonkar,
and Others v. Dr. S.A. Johari, [1984] 2 SCC 354 and also the
observations of this Court in Harbans Lal v. Jagmohan Saran,
(supra).
It is true that in exercise of jurisdiction under
article 227 of the Constitution the High Court could go into
the question of facts or look into the evidence if justice
so requires it, if there is any mis-direction in law or a
view of fact taken in the teeth of preponderance of
evidence. But the High Court should decline to exercise its
jurisdiction under articles 226 and 227 of the Constitution
to look into the fact in the absence of clear cut down
reasons where the question depends upon the appreciation of
evidence. The High Court also should not interfere
884
with a finding within the jurisdiction of the inferior
tribunal except where the findings were perverse and not
based on any material evidence or it resulted in manifest of
injustice (See Trimbak Gangadhar Telang and Another
(supra)). Except to the limited extent indicated above, the
High Court has no jurisdiction. In our opinion therefore, in
the facts and circumstances of this case on the question
that the High Court has sought to interfere, it is manifest
that the High Court has gone into questions which depended
upon appreciation of evidence and indeed the very fact that
the learned trial judge came to one conclusion and the
appellate bench came to another conclusion is indication of
the position that two views were possible in this case. In
preferring one view to another of factual appreciation of
evidence, the High Court transgressed its limits of
jurisdiction under article 227 of the Constitution. On the
first point, therefore, the High Court was in error.
But the findings of the High Court on the factual
aspect would not help the appellant to become a licensee
under section 15A of the said Act. It is to that question,
therefore, attention must be given.
On the construction of section 15A of the said Act, the
learned judge followed the decision of the Full Bench of
that High Court in Writ Petition No. 76 of 1980 in Ratanlal
Chandiprasad Jalan etc. v. Raniram Darkhan etc. (supra)
judgment delivered on 18th October, 1985. In several cases
before Bombay High Court there were several conflicting
decisions on this question. Therefore, the reference was
made to the full bench for its determination on the
following:
"(i) Whether a statutory tenant governed by the
Bombay Rent Act retains heritable interest in the
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premises?
(ii) Whether a statutory tenant governed by the
Bombay Rent Act retains transferable interest in
the premises?
(iii) Whether a statutory tenant governed by the
Bombay Rent Act could have created a valid licence
before 1973?
(iv) Whether Vasant Tatoba Hargude & Others v.
Dikkaya Muttaya Pujari (AIR 1980 Bom. 341) and
Chandrakant Kashinath Thakur & Others v. Narayan
Lakhanna Shetty & Others (First Appeal No. 754 of
1978) were correctly decided?"
885
In this appeal the controversy before us is concerned
only on question No. 3 referred to hereinbefore. The answer
given by the Full Bench on the other questions need not
detain us, though we may briefly note these. The full bench
after exhaustive discussion answered question No. 1 referred
to hereinbefore in the affirmative and added only to the
extent provided by section 5(11) (c) of the said Act.
Question No. 2 was answered in the affirmative but only if
he had such transferable interest as a contractual tenant.
Question No. 3 which is the most material question, the full
bench answered in the affirmative but only if under the
terms of his original contractual tenancy he had a right to
transfer his leasehold rights.
Question No. 4 was answered by saying that the
decisions in Vasant v. Dikkava and Chandrakant Kashinath
Thakur & Others v. Narayan Lakhanna Shetty & Others AIR 1980
Bombay 341 (First Appeal No. 754 of 1978) were not entirely
correct in laying down that no statutory tenant was entitled
to transfer his interest. The category ’A’ tenant mentioned
in the full bench judgment would be entitled to transfer his
interest irrespective of whether he was a contractual or
statutory tenant. But in the aforesaid category ’B’ tenant
after termination of his contractual tenancy would not be
entitled to transfer his interest.
After noting several authorities and the provisions of
the Act, the Full Bench came to the conclusion that the
contractual tenants could be divided into two categories:
A a tenant who, under the tenancy agreement was
specifically entitled to sublease his interest
(for short, "category ’A’ tenant")
B a tenant who under the tenancy agreement was not
so specifically entitled to sublease or whose
tenancy agreement was silent about it (for short,
"category ’B’ tenant").
and the Court went on to observe that category ’A’ tenant,
even after the termination of his tenancy, would continue to
have a right to sublease. That right under the original
contractual lease had not been taken away by the said Act.
In fact that right had been kept intact. However, the tenant
of category ’B’ would not either before or after the
termination of the agreement be able to sublet his interest
in view of the specific bar under section 15 of the said
Act. In other words, the
886
effect of the decision of the Full Bench of the said High
Court was that in cases where there was no specific
agreement granting the tenant a right to transfer the terms
of his contract, termination of his tenancy did not entitle
him to be able to give a valid licence. Such licence would
be invalid and as such could not be considered to be
subsisting at the time of the coming into operation of the
provisions of section 15A of the said Act, i.e., on 1st
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February, 1973. It is the validity of this proposition that
is at issue in this appeal.
In order to appreciate the historical perspective, it
may not be inappropriate to refer to the decision in Waman
Shrinivas Kini v. Ratilal Bhagwandas & Co., [1959] 2 Suppl.
SCR 217. The appellant there was a tenant originally in the
old building but after it was purchased by the respondent in
the new premises. In the old premises the appellant had sub-
tenant who shifted to the new premises along with the
appellant when the latter occupied the said premises. One of
the terms of the lease which was contained in a letter dated
7th June, 1948, written by the respondent to the appellant
provided: "In the shops in the old chawl which are with you,
you have kept sub-tenants. We are permitting you to keep
sub-tenants in the same manner, in this place also". On 20th
April, 1949, the respondent brought a suit for ejectment
against the appellant on the ground, inter alia, that
section 15 of the said Act, as it stood at the relevant
time, prohibited sub-letting and under section 13(1) (c) of
the Act the landlord had a right to evict the tenant on
account of sub-letting. The appellant’s defence was (1) that
section 15 of the Act was confined to "any other law", that
it did not apply to contracts between the landlord and
tenant and therefore it did not preclude an agreement
between the parties as to sub-letting, (2) that the parties
were in pari delicto and therefore the respondent could not
succeed, and (3) that the right of the respondent to sue for
ejectment on the ground of sub-letting being a personal
right for his benefit, he must be taken to have waived it as
he had allowed the appellant to sub-let and, consequently,
he could not evict him under section 13(1) (e) of the Act.
It was held that the non-obstante clause in the said Act
applied to contracts also as these would fall under the
provisions of the law relating to contracts. It was further
held that the respondent was entitled to sue for ejectment,
though the agreement recognised sub-letting, as the suit was
brought not for the enforcement of the agreement but to
enforce the right of eviction which flowed directly from an
infraction of the provisions of section 15 of the Act and
for which the Act itself provided a remedy. The section was
based upon public policy and where public policy demanded,
even an equal
887
participant in an illegality was allowed relief by way of
restitution or recission, though not on the contract and,
thirdly, it was further held that the plea of waiver which
the appellant relied on could not be sustained because as a
result of giving effect to that plea that court would be
enforcing in illegal agreement and thus contravene the
statutory provisions of section 15 of the Act, as the
agreement to waive an illegality was void on grounds of
public policy and would be unenforceable. This led to a
rather peculiar result where the landlord had permitted
himself subletting and yet could sue. This resulted in
amendment of section 15 sub-section (1) of the Act by adding
"but subject to any contract to the contrary" by section 7
of the Bombay Amending Act 49 of 1959.
Section 5 of the Act provides the definitions. Sub-
section (4A) of section 5 of the Act defines ’licensee’ as
follows:-
"(4A) "licensee", in respect of any premises or
any part thereof, means the person who is in
occupation of the premises or such part, as the
case may be, under a subsisting agreement for
licence given for a licence fee or charge; and
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includes any person in such occupation of any
premises or part thereof in a building vesting in
or leased to a cooperative housing society
registered or deemed to be registered under the
Maharashtra Co-operative Societies Act, 1960; but
does not include a paying guest, a member of a
family residing together, a person in the service
or employment of the licensor, or a person
conducting a running business belonging to the
licensor, or a person having any accommodation for
rendering or carrying on medical or para-medical
services or activities in or near a nursing home,
hospital or sanitorium, or a person having any
accommodation in a hotel, lodging house, hostel,
guest house, club, nursing home, hospital,
sanitorium, dharmashala, home for widows, orphans
or like premises, marriage or public hall or like
premises, or in a place of amusement or
entertainment or like institution, or in any
premises belonging to or held by an employee or
his spouse who on account of the exigencies of
service or privision of a residence attached to
his or her post or office is temporarily not
occupying the premises, provided that he or she
charges licence fee or charge for such premises of
the employee or spouse not exceeding the standard
rent and
888
permitted increases for such premises, and any
additional sum for services supplied with such
premises, or a person having accommodation in any
premises or part thereof for conducting a canteen,
creche, dispensary or other services as amenities
by any undertaking or institution; and the
expressions "licence", "licensor" and "premises
given on licence" shall be construed accordingly;"
The expression "tenant" at the elevant time under
section 5(11) was and still is as follows:
"(11) "tenant" means any person by whom or on
whose account rent is payable for any premises and
includes-
(a) such sub-tenants and other persons as
have derived title under a tenant before the
commencement of the Bombay Rents, Hotel and
Lodging House Rates Control (Amendment)
Ordinance, 1959.
(aa) any person to whom interest in premises
has been assigned or transferred as
permitted, or deemed to be permitted, under
section 15;
(b) any person remaining, after the
determination of the lease, in possession,
with or without the assent of the landlord,
of the premises leased to such person or his
predecessor who has derived title before the
commencement of the Bombay Rents, Hotel and
Lodging House Rates Control (Amendment)
Ordinance, 1959,
(bb) such licenses as are deemed to be
tenants for the purposes of this Act by
section 15A;"
Clause (c) of the said sub-section is not relevant for
the present purpose.
Clause (bb) of section 5(11) above introduced by Mah.
17 of 1973.
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By amendment of sub-section (3) of section 6 of the
said Act after amendment of 1973, the provisions of Part II
of the said Act which deals with residential and other
premises was made applicable
889
to the premises given on licence for that purpose for such
area to premises let for that purpose in such area,
immediately before such commencement.
Section 13(1) (e) entitles the landlord to ask for the
eviction of the tenant if the tenant has, since the coming
into operation of the Act, unlawfully sublet or after the
date of commencement of the Amendment Act, 1973, unlawfully
given on licence the whole or part of the premises or
assigned or transferred in any other manner his interest
therein. It is important to bear in mind, therefore, that
the creation of sub-tenancy or grant of licence by the
tenant has been prohibited and made a ground for ejectment
of the tenant. Section 14 of the Act stipulates that when
the interest of a tenant of any premises is determined for
any reason, any sub-tenant to whom the premises or any part
thereof has been lawfully sublet before the commencement of
the Bombay Rents, Hotel and Lodging House Rates Control
(Amendment) Ordinance, 1959 shall, subject to the provisions
of the Act, be deemed to have become the tenant of the
landlord on the same terms and conditions as he would have
held from the tenant if the tenancy had continued. Sub-
section (2) of section 14 stipulates that where the interest
of a licensor, who is a tenant of any premises, is
determined for any reason, the licensee, who by section 15A
is deemed to be a tenant, shall, subject to the provisions
of the Act, be deemed to become the tenant of the landlord,
on the terms and conditions of the agreement consistent with
the provisions of the Act. The creation of sub-tenancy was
prohibited by 1959 Amendment. The result of the two sub-
sections of section 14 is that though the sub-tenancy had
become prohibited from 1959, sub-tenant became direct tenant
of the landlord and licensee who is recognised will become
tenant instead of tenant under the landlord. The creation of
further licence is prohibited. Section 15(1) provides as
follows:
"(1) Notwithstanding anything contained in any
law, but subject to any contract to the contrary,
it shall not be lawful after the coming into
operation of this Act for any tenant to sub-let
the whole or any part of the premises let to him
or to assign or transfer in any other manner his
interest therein and after the date of
commencement of the Bombay Rents, Hotel and
Lodging House Rates Control (Amendment) Act, 1973,
for any tenant to give on licence the whole or
part of such premises."
The proviso is not relevant for the present, Sub-section (2)
of section
890
15 which also came by operation of the Act in 1973
stipulates that prohibition against the sub-letting of the
whole or any part of the premises which have been let to any
tenant, and against the assignment or transfer in any other
manner of the interest of the tenant therein, contained in
sub-section (1) shall, subject to the provisions of this
sub-section, be deemed to have had no effect before the
commencement of the Bombay Rents, Hotel and Lodging House
Rates Control (Amendment) ordinance, 1959 and some other
consequences.
Section 15A which was inserted by section 14 of the
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amending r Act of 1973 provides as follows:
"15A(1) Notwithstanding anything contained
elsewhere in this Act or anything contrary in any
other law for the time being in force, or in any
contract, where any person is on the 1st day of
February, 1973 in occupation of any premises. Or
any part thereof which is not less than a room, as
a licensee he shall on that date be deemed to have
become, for the purposes of this Act, the tenant
of the landlord, in respect of the premises or
part thereof, in his occupation.
(2) The provisions of sub-section (1) shall
not affect in any manner the operation of sub-
section (1) of section 15 after the date
aforesaid.
The question that falls for consideration in this
appeal is as to who is the licensee mentioned in section 15A
of the Act. What kind of licensee is contemplated by sub-
section (1); can a licensee of a statutory tenant whose
contractual tenancy has come to an end be contemplated under
the provisions of this Act? The full bench of the Bombay
High Court has held that a statutory tenant whose
contractual tenancy did not specifically authorise him to
sublet or grant lease cannot create a licence which can be
sought to be recognised by section 15A of the Act. Is that
view right is the question that we have to answer.
In this connection it may not be inappropriate to refer
to the Statement of objects and Reasons of the Maharashtra
Act 17 of 1973 which states, inter alia, as follows:
"It is now notorious that the Bombay Rents, Hotel
and Lodging House Rates Control Act, 1947, is
being avoided by the expedient of giving premises
on leave and licence for
891
some months at a time; often renewing from time to
time at a higher licence fee. Licensees are thus
charged excessive licence fees; in fact, several
times more than the standard rent, and have no
security of tenure, since the licensee has no
interest in the property like a lessee. It is
necessary to make provision to bring licensees
within the purview of the aforesaid Act. It is
therefore provided by clause 14 in the Bill that
persons in occupation on the 1st day of February
1973 (being a suitable anterior date) under
subsisting licences, shall for the purposes of the
Act, be treated as statutory tenants, and will
have all the protection that a statutory tenant
has, under the Act. It is further provided in
clause 8 that in the case of other licences, the
charge shall not be more than a sum equivalent to
standard rent and permitted increases, and a
reasonable amount for amenities and services. It
is also provided that no person shall claim or
receive anything more as licence fee or charge,
then the standard rent and permitted increases,
and if he does receive any such excessive amounts,
they should be recoverable from the licensor"
(Emphasis supplied).
Section 108 of The Transfer of Property Act, 1882 deals
with the rights and liabilities of both the lessor and the
lessee. Clause (j) of section 108 gives the lessee the right
to transfer absolutely or by way of mortgage or sub-lease
the whole or any part of his interest in the property, and
any transferee of such interest or part may again transfer
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it. The lessee shall not, by reason only of such transfer,
cease to be subject to any of the liabilities attaching to
the lease. Further it stipulates that nothing in this clause
shall be deemed to authorise a tenant having an
untransferable right of occupancy, the farmer of an estate
in respect of which default has been made in paying revenue,
or the lessee of an estate under the management of a Court
of Wards, to assign his interest as such tenant, farmer or
lessee. So therefore the prohibition is there on a tenant
having an untransferable right of occupancy to transfer his
interest. We are here, not concerned with the transfer of
the interest but rather with the granting of licence which
is personal in nature. It is indisputable that the grant of
licence does not entail transfer of interest. See B.M. Lall
v. Dunlop Rubber (infra). The Indian Easements Act 1882
deals with licenses. Section 52 of Chapter VI of the said
Act defines license as when one person grants to another, or
to a definite number of other persons, a right to do, or
892
continue to do, in or upon the immovable property of the
grantor, something which would, in the absence of such
right, be unlawful, and such right does not amount to an
easement or an interest in the property, such right is
called a license. Section 53 states that a license may be
granted by any one in the circumstances and to the extent in
and to which he may transfer his interests in the property
affected by the license.
On the aspect whether in law a valid licence could have
been created by the tenant in favour of the appellant and as
such the appellant was protected under section 15A of the
said Act read with section 14(2) of the said Act, according
to learned counsel, the Full Bench of the Bombay High Court
did not hold as was according to Mr. Tarkunde, wrongly
contended on behalf of the appellant that a statutory tenant
could not create a valid licene although a contractual
tenant in the same circumstances could do so. It was
submitted that actually the Bombay High Court has held
specifically that statutory tenant continued to be possessed
of the same rights and was subject to the same disabilities
as a contractual tenant. The decision of the Bombay Full
Bench was that both the contractual tenant as well as the
statutory tenant were entitled by the terms of the tenancy
to sublease its premises. Whereby the terms of tenancy the
tenant was authorised or entitled to create tenancy or
licence, he has been categorised in category ’A’ by the Full
Bench. On the other hand a tenant whether contractual or
statutory who was not entitled, according to the full bench,
to create any valid licence after 21st May, 1959 if his
tenancy agreement did not specifically give him a right to
create a sub-tenancy has been dealt with as category ’B’.
It was submitted that it was clear from the full bench
judgment that the distinction was made by the High Court in
view of section 53 of the Indian Easements Act, 1882 read
with section 15(1) of the said Act. It was urged that
section 53 of the Indian Easement Act, one could grant a
licence in the circumstances in which and to the extent to
which he is entitled to transfer his interest in the
property effected by the licence. Under section 15(1) read
with section 15(2) of the said Act, a tenant is not entitled
to create any sub-tenancy or to transfer his interest in the
premises after 21st May, 1959 unless the contract of tenancy
positively allowed him to do so.
According to full bench, submitted learned counsel for
the respondent, the combined effect of these provisions was
that a tenant
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893
whether contractual or statutory could not create any valid
licence unless the terms of his tenancy allowed him to
create a sublease or otherwise transfer his interest in the
premises. It was submitted that the High Court was right in
coming to this conclusion. It was further urged that it was
wrong to assume that a statutory tenant was no longer bound
by the terms of his contract of tenancy after his contract
was terminated by the notice of the landlord. It was
emphasised with reference to the decisions in the case of
Dhanapal Chettiar’s case [1980] 1 SCR 334 at 340. and Gian
Devi’s case. [1985] 2 SCC 683 at 686-687 and 707. It was
indicated that the termination of tenancy made under the
said terms agreed to govern the relationship between the
landlord and the tenant even after the tenancy was
determined and a tenant became a statutory tenant. It was
not denied, it is true, that a licence was a personal
privilege and that it did not create any interest in
property. However, according to section 53 of the Indian
Easements Act, 1882, according to counsel, the rights of any
person to create any licence was co-terminus with his right
to transfer his interest in the property in question. In
other words, what counsel sought to emphasise was that
though a licence was not a transfer of interest, the right
to grant a licence was co-terminus with the right to
transfer his interest in the property. It was, therefore,
submitted that since a tenant, whether contractual or
statutory, could not create any subtenancy or transfer
interest in the premises after 21st May, 1959 (unless he was
positively authorised by his landlord to do so), he also
could not create any vaild licence in respect of the
premises. It was not because, counsel urged, a licence was a
transer of an interest of property but because the capacity
of a person to create a valid licence was limited to his
capacity to create a vaild transfer. This, it was urged, was
a clear result of section 53 of the Indian Easements Act,
1882. According to Shri Tarkunde, the non-obstante clause in
section 15A of the said Act protected the operative part of
the section should prevail inspite of anything contrary in
any law or contract. In section 15A, the operative part was
the provision that "he (licensee) shall on that date be
deemed to have become, for the purposes of the Act, the
tenant of the landlord, in respect of the premises or part
thereof, in his occupation". The non-obstante clause clearly
provided that a licensee in the circumstances mentioned in
the section who was not a tenant, shall nevertheless be
deemed to be a tenant. It is wrong to interpret, according
to Shri Tarkunde, the non-obstante clause as if it validated
a licence which was invalid. The non-obstante clause,
according to counsel, did not say that notwithstanding any
law or contract to the contrary, a person who claimed to be
a licensee should be deemed to
894
be a licensee; what it says was that a person who was in
fact a licensee would be deemed to be a tenant. The question
is whether the appellant in the present case had a valid
licence on 1st February, 1973 and that question which has to
be determined independently of the nonobstante clause. If it
was contended, it was found that the appellant was a
licensee of the premises and was in occupation thereof on
1st February, 1973, then it would follow, notwithstanding
any law or contract to the contrary, that she should be
deemed to be a tenant of the premises. Reliance was placed
on the observations of this Court in Aswini Kumar Ghosh &
Another v. Arabinda Bose & Another, [1953] SCR 1, and
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Dominion of India & Another v. Shribai A. Irani & Another,
[1955] 1 SCR 206 at 231 in support of the proposition that
non-obstante clause was relevant to the operative part of
the section.
According to Shri Tarkunde, the contentions of the
appellant would lead to absurd result, if it was held that
by virtue of nonobstante clause, any person whoever claimed
to be licensee would be deemed to be a valid licensee, the
result would be that if an invalid licence was created by a
person having no interest whatever in the property affected
by the licence, the so-called licensee would become a tenant
of the property despite any law or contract to the contracy.
According to Shri Tarkunde, it was improper to contend that
other construction would make the provisions of section 15A
otiose because it was submitted that in accordance with the
Bombay full bench, the amending Act would be fully operative
and it confers tenancy rights on-
(a) those licensees who were granted licences by
the landlord-owners before 1.2.1973, provided that
on that date their licences were subsisting and
they were in occupation of the premises;
(b) similar licensees of tenants, whether the
tenants were contractual or statutory, provided
the tenants had the right under the terms of their
tenancy to create sub-lease or otherwise transfer
their interest in the premises; and
(c) similar licensees of tenants who did not have
the authority to sublet or otherwise transfer
their interest in the premises provided the
licensees were granted before 21st May, 1959.
It was submitted that a number of licensees would
become
895
"deemed tenants" under the amended Act who were the
licensees of landlord-owners. On the other hand if section
15A was interpreted, according to Shri Tarkunde, in the
manner suggested on behalf of the appellant, it would lead
to a strange result. The result would be that although
tenants generally had no right to create any valid sublease
after 21.5.1959, they could nevertheless create a valid
licence under the same circumstances. It was not likely that
the legislature intended to make such an irrational
provision, according to counsel.
In the judgment under appeal the entire emphasis on the
full bench decision upon which the learned single judge in
the judgment under appeal relied was that there must be a
term in contractual tenancy enabling the tenant to sublet
the premises and then only such a tenant would be entitled
to create a valid licence under sections 52 and 53 of the
Indian Easements Act, 1882. The full bench further
emphasised that the tenant was entitled to the kind of
protection that is sought to be afforded to a tenant under
the Rent Act and his status after termination of the
contractual tenancy and their whole emphasis was that there
was no difference between the statutory tenant governed by
the provisions of the statute and the contractual tenant;
the statutory tenant could not get higher rights than those
given to a contractual tenant.
In several decisions of this Court the position of
contractual tenants and statutory tenants has been
discussed.
Anand Nivas (Private) Ltd. v. Anandji Kalyanji Podhi &
Ors. [1964] 4 SCR 892 is a decision where it was held by the
majority of the learned judges that the tenant therein was a
statutory tenant and as such had no right to sublet the
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premises and the appellant in that case had no right of a
tenant on the determination of the right of the tenant by
virtue of section 14 of the said Act as amended in 1959.
The sub-tenant was bound by the decree obtained by the
respondents against tenant and it could not take advantage
of the Transfer of Property Act and the Indian Registration
(Bombay Amendment) Act, 1939. By sub-section (1) of section
15 of the Act, all transfers and assignments of interests in
the premises and sub-letting of premises by tenants were,
subject to any contract to the contrary, made unlawful. This
provision applied only to contractual tenants and not to
statutory tenants who had no interest in the property. It
was held that a statutory tenant could not sublet the
premises because subletting involved a
896
transfer of the right to enjoy property for a certain period
in consideration of price paid or promised and a statutory
tenant had merely a personal right to resist eviction.
Section 15(2) of the said Act as it stood at the relevant
time was in the nature of an exception to section 15(1). It
applied to contractual tenancies. It protected sub-tenants
of contractual tenants and removed the bar against sub-
letting imposed by section 15(1) as well as by contract,
provided the transferee was in possession of the premises at
the commencement of the Ordinance.
It was further observed that a statutory tenant was a
person who remained in occupation of the premises let to him
after the determination of or the expiration of the period
of the tenancy. He had no estate or interest in the premises
occupied by him. He merely enjoyed the protection of the law
in that he could not be turned out so long as he paid the
standard rent and permitted increases, if any, and performed
the other conditions of the tenancy. His right to remain in
possession after the determination of the contractual
tenancy was personal. It was held not being capable of being
transferred or assigned and devolved on his death only in
the manner provided in the Act. On the other hand, the right
of a contractual tenant was an estate or interest in the
premises and in the absence of a contract to the contrary,
was transferable and the premises might be sub-let by him.
In a dissenting judgment, Sarkar J. expressed the view
that the word ’tenant’ in section 13(1) (e) of the Act
included not only contractual tenant also statutory tenants
and a statutory tenant had the power to sublet. There was no
justification for the view that sub-letting by a statutory
tenant of a part of the demised premises resulted in parting
with possession of the premises, or that such parting
deprived him of the protection of the Act. Section 13 (1)
(e) of the Act implied that a statutory tenant could sublet
a part of the premises lawfully. Section 15 of the Act dealt
not only with contractual tenants but also with statutory
tenants. The result was that the sub-letting by the tenant
of the premises in that case, according to learned judge,
must be held to have been lawful. It was further observed
that the tenant was not bound by the decree obtained by the
landlord against Maneklal. It was true that a sub-tenant
under the general law of landlord and tenant was bound by
the decree obtained by the landlord against the tenant for
possession, though he was not made a party to the suit, but
where a statute like the Bombay Act gave sub-tenant a right
to continue in possession even after determination of the
tenancy of the statutory tenant, the sub-tenant was not
bound by the decree and his tenancy did
897
not come to an end with the tenancy of the superior tenant.
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A decree obtained by a landlord against his tenant did not
give him a right to evict a sub-tenant like the appellant
who was entitled to the benefits of section 14 of the Act.
Section 52 of the Transfer of Property Act could not be
resorted to by the respondents in the present case,
according to Sarkar, J., to evict the appellant in that
case.
Relying upon the said decision in Jagdish Chander
Chatterjee & Ors. v. Sri Kishan & Anr., [1973] 1 SCR 850
this Court held that after the determination of the
contractual tenancy, the statutory tenant had only a right
to continue in possession and that such personal protection
came to an end as soon as the statutory tenant died.
In Damadilal and Others v. Parashram and Others, [1976]
Supp. SCR 645 the decision in the case of Anand Nivas
(supra) was distinguished and considering the provisions of
the Madhya Pradesh Rent Act, it was held that interest of a
statutory tenant was heritable.
In Ganpat Ladha v. Sashikant Vishnu Shinde, [1978] 3
SCR 198 the question before this Court was whether the
interest of the statutory tenant in the premises was
heritable or not, and further, whether such protection could
be available in respect of commercial premises also.
Considering the provisions of section 5(11) (c) of the
Bombay Act, this Court held that this section was meant to
protect the rights of the legal representatives so far as
residential premises were concerned and that such legal
representatives could not get any tenancy right in respect
of shop or commercial premises. Subsequent to this, the
State of Maharashtra by way of amendment in 1978 added sub-
clause to the original section 5(11) (c) and granted the
same protection to the legal representatives with regard to
the commercial or shop premises.
The question was again considered in V. Dhanapal
Chettiar v. Yesodai Ammal (supra). In that case, the main
question was as to whether a notice terminating the tenancy
was condition precedent to filing of suit for eviction.
While considering this question, this Court considered the
provisions of various rent statutes and held that the jural
relationship of lessor and lessee would come to an end on
the passing of an order or decree for eviction. Until then,
under the extended definition of the word ’tenant’, the
tenant continued to be a tenant even though the contractual
tenancy had been determined by giving of a valid notice
under section 106 of the Transfer of Property Act.
898
In Ludichem Agencies Etc. v. Ahmed R.V. Peer Mohamed
and Anr., [1982] 1 SCR 712 it was held that the licensee’s
interest would come to an end alongwith the termination of
tenancy of his licensor-ordinarily-no power to create
licences endured beyond the tenancy. This decision was a
direct authority under section 15A of the said Act. In that
case the notice of termination was given as well as the
decree for eviction was passed prior to the appointed date,
viz. before 1.2.1973. The licence was created after the
passing of the decree. This Court observed at pages 715-716
of the report as follows:
"Now, there can be no doubt that if the petitioner
can be said to be a licensee in occupation on
February 1, 1973 he is entitled to assert that he
has become a tenant of the land. But a licensee is
one who is in occupation under a subsisting
agreement for licence. The agreement for licence
must be subsisting on the date on which he claims
to be a licensee. In the instant case, in order to
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establish his claim the petitioner must be in
occupation on February 1, 1973 under an agreement
for licence subsisting on that date.
In our opinion the petitioner is not entitled
to the benefit claimed by him. An agreement for
licence can subsist and continue to take effect
only so long as the licensor continues to enjoy a
right, title or interest in the premises. On the
termination of his right, title or interest in the
premises, the agreement for licence comes to an
end. If the licensor is a tenant, the agreement
for licence terminates with the tenancy. No tenant
is ordinarily competent to grant a licence
enduring beyond his tenancy. On the termination of
the licensor’s tenancy the licensee ceases to be a
licensee. This loss of status is the point from
which sub.s. (2) of s. 14 begins to operate and in
consequence of its operation, the erstwhile
licensee becomes a tenant of the landlord on the
terms and conditions of the agreement.
What have we here? Saraswatibai ceased to be
tenant of any description long before February 1,
1973. The contractual tenancy came to an end when
the notice to quit dated July 28, 1962 took effect
and the statutory tenancy terminated when the
decree for ejectment was passed thereafter. Before
February 1, 1973 she had ceased to be a tenant.
With that, the agreement for licence stood auto-
899
matically terminated. In consequence, the
petitioner cannot legitimately claim to be a
licensee on February 1, 1973."
It is apparent from the aforesaid observations that in
the facts and circumstances in that case, it was held that
licensee was not entitled to protection under section 15A of
the said Act but this Court had made it clear that but for
the fact that the licence had been created after the
interest of the tenant came to an end, the licensee would
have been entitled to protection under section 15A of the
Act.
In Gian Devi Anand v. Jeevan Kumar and Others (supra),
it was held that if the Rent Act in question defined a
tenant in substance to mean a tenant who continued to remain
in possession even after the termination of the contractual
tenancy till a decree for eviction was passed against him,
the tenant even after the determination of the tenancy
continued to have an estate or interest in the tenanted
premises.
Discussing the interests of a statutory tenant and the
contractual tenant, Bhagwati, J. (as the learned Chief
Justice then was) at page 687 of the report observed " ....
In one case, the estate or interest is the result of a
contract while in the other, it is the result of a statute.
But the quality of the estate or interest is the same in
both cases." A.N. Sen, J. speaking for the Court observed at
page 696 of the report "We find it difficult to appreciate
how in this country we can proceed on the basis that a
tenant whose contractual tenancy has been determined but who
is protected against eviction by the statute, has no right
of property but only a personal right to remain in
occupation, without ascertaining what his rights are under
the statute.........".
Therefore, as a result of the discussions above, it
appears that until a decree of eviction was passed against
the tenant, the tenant could have created a licence and as
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in this case indisputably the licence was created before 1st
February, 1973, the licensee must, by the express terms of
section 15A of the Act, continue to be a tenant of the
landlord in respect of the premises in question.
In our opinion a tenant protected by a statute is
entitled to create a licence. The licence is not an interest
in property. It is purely a personal right. We must take
notice of the fact of the various amendments in the Act
introduced simultaneously with section 15A of the
900
Act that the entire scheme of those amendments was to
protect licensees.
Shri Tarkunke submitted that it was to protect the
licensees of the landlords and not to protect the licensees
of the tenant. The amplitude of the language compels us to
reject this submission. There is no reason and there is
nothing in the Act or the Statement of Objects and Reasons
to indicate that we should give a restricted meaning to the
expression "licence". The amended section says that whoever
is in possession as a licensee shall be deemed to have
become for the purpose of this Act the tenant of the
landlord. There is no warrant to restrict the ordinary
meaning of that expression. If the construction is
restricted in the manner submitted on behalf of the
respondent, then the apparent scheme or the purpose for
introduction of the amendment would be defeated at least to
a large section of licensees, who were contemplated to be
protected, as the objects as noted before sought to do.
The Indian Easements Act, 1882 defines ’Licence’.
Section 53 of the said Act stipulates that a licence may be
granted by any one in the circumstances and to the extent to
which he may transfer his interests in the property
’affected by the licence’. Licence is a privilege to do
something on the premises which otherwise would be unlawful.
Licence is a personal privilege. See B.M. Lall v. Dunlop
Rubber & Co. Ltd. & Ors., [1968] 1 SCR 23.
Shri Tarkunde tried to urge that right to create
licence was coterminus with a right to transfer interest
though licence itself was not a transfer. We are unable to
accept this argument. The aims and objects of the amending
Act was placed before us in support of the contention that
it was to protect the interest of the licensees of the
landlord that the provisions of section 15A were introduced.
But the aims and objects as set out hereinbefore, do not
warrant such a restricted meaning. Section 15A read with
section 14(2) which was also introduced by Maharashtra Act
17 of 1973 simultaneously makes the position clear that
where the interest of a licensor, who is a tenant of any
premises is determined for any reason, the licensee, who by
section 15A is deemed to be a tenant, shall, subject to the
provisions of the said Act be deemed to be a tenant of the
landlord, on the terms and conditions of the agreement
consistent with the provisions of the Act.
If the view of the full bench of the Bombay High Court
is to be
901
given effect to, then it will defeat the purpose of the non-
obstante clause in section 15A of the Act. The rule of
construction is to give effect to the intention of the
legislature and not to amend what is actually expressed
where the language is plain and admits of one meaning, the
task of interpretation can hardly be said to arise. Here, in
this case it is possible to give effect to the literal
construction; nothing has been shown to warrant that such
literal construction should not be given effect to. The
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words of a statute must prima facie be given their ordinary
meaning. See Nokes v. Doncaster Amalgamated Collieries,
Ltd., [1940] A.C. 1014 at 1022 where the grammatical
construction is clear and manifest and without doubt that
construction ought to prevail unless there are some strong
and obvious reasons to the contrary. In this case there is
none.
It appears to be clear that all licensees who were
there on 1st February, 1973 were to be protected and
subsequent licences were made illegal as was done in the
case of sub-tenancy from 1959. It was an attempt to protect
very large number of legitimate persons in occupation and
also to eliminate future mischief. This construction canvas-
sed for the appellant is in consonance with the mischief
rule enunciated in Heydon’s case 76 E.R. 637 as mentioned in
Maxwell ‘On the Interpretation of Statutes’ Twelfth Ed. page
40. It is useful as was emphasised by Baron Parke in Becks
v. Smith, [1836] 2 M. & W. 191 at 195 in the construction of
a statute to adhere to the ordinary meaning of the words
used, and to the grammatical construction, unless that was
at variance with the intention of the legislature, to be
collected from the statute itself, or led to any manifest
absurdity or repugnance, in which case the language might be
varied or modified, so as to avoid such inconvenience, but
no further. See Halsbury’s Laws of England, 4th Ed. Volume
44 para 856.
In finding out the meaning of the expressions used, the
courts must find out what is legal, not what is right. It
may not be inappropriate to refer to the observations of
Burger, C.J. in TVA v. Hill, U.S. Supreme Court Reports, 57
Lawyers’ Ed. 119 at 146 as follows:
"Our individual appraisal of the wisdom or
unwisdom of a particular course consciously
selected by the Congress is to be put aside in the
process of interpreting a statute. Once the
meaning of an enactment is discerned and its
constitutionality determined, the judicial process
comes to an end. We do not sit as a committee of
review, nor are we vested
902
with the power of veto. The lines ascribed to Sir
Thomas More by Robert Bolt are not without
relevance here:
"The law, Roper, the law. I know what’s legal, not
what’s right. And I’will stick to what’s legal..
I’m not God. The currents and eddies of right and
wrong, which you find such plain-sailing, I can’t
navigate, I’m no voyager. But in the thickets of
the law, oh there I’m a forester.. What would you
do? Cut a great road through the law to get after
the Devil?.. And when the last law was down, and
the Devil turned round on you-where would you
hide, Roper, the laws all being flat?.... This
country’s planted thick with laws from coast to
coast-Man’s laws, not God’s-and if you cut them
down .. d’you really think you could stand upright
in the winds that would blow them? .. Yes, I’d
give the Devil benefit of law, for my own safety’s
sake." R. Bolt, A man for All Seasons, Act I, P.
147 (Three Plays, Heinemanned. 1967)."
On the other hand it is apparent that this literal
construction and reading of the statute as a whole is in
consonance with the mischief intended to be avoided.
It must be emphasised that as a result of the various
decisions referred to hereinbefore, it must be accepted that
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statutory tenant was in the same position as a contractual
tenant until the decree for eviction was passed against him
and the rights of a contractual tenant included the right to
create licence even if he was the transferor of an interest
which was not in fact the transfer of interest.
It was canvassed before us that the non-obstsnte clause
was connected with the verb i.e. that a licensee in section
15A of the Act on the date be deemed to become tenant but it
does not detract from the power of the tenant not to create
licence. The construction placed by the full bench, in our
opinion, would curtail the language of the section and on
the basis of the High Court’s judgment, the amendment ceases
to be meaningful for a large section intended to be
protected and unless one is constrained by compulsion to
give a restricted meaning, one should not do it in this
case. We find no such compulsion.
A clause beginning with the expression "notwithstanding
any thing contained in this Act or in some particular
provision in the Act or
903
in some particular Act or in any law for the time being in
force, or in any contract" is more often than not appended
to a section in the beginning with a view to give the
enacting part of the section in case of conflict an
overriding effect over the provision of the Act or the
contract mentioned in the non-obstante clause. It is
equivalent to saying that in spite of the provision of the
Act or any other Act mentioned in the non-obstante clause or
any contract or document mentioned the enactment following
it will have its full operation or that the provisions
embraced in the non-obstante clause would not be an
impediment for an operation of the enactment. See in this
connection the observations of this Court in The South India
Corporation (P) Ltd. v. The Secretary, Board of Revenue,
Trivandrum & Anr., AIR 1964 SC 207 at 215-[1964] 4 SCR 280.
It is well settled that the expression
‘notwithstanding’ is in contradistinction to the phrase
’subject to’, the latter conveying the idea of a provision
yielding place to another provision or other provisions to
which it is made subject. This will be clarified in the
instant case by comparison of sub-section (1) of section 15
with sub-section (1) of section 15A. We are therefore unable
to accept, with respect, the view expressed by the Full
Bench of the Bombay High Court as relied on by the learned
single judge in the judgment under appeal.
In the premises first the High Court exceeded its
jurisdiction in interfering with the finding of facts made
by the appellate bench of the Court of Small Causes for the
reasons mentioned hereinbefore. Secondly, the High Court was
in error on the construction of the provisions of section
15A of the said Act. In the aforesaid view of the matter, we
are unable to sustain the judgment under appeal. In the
premises it must be held that all licensees created by
landlords or by the tenant before 1st February, 1973 and who
were in actual occupation of a premises which was not less
than a room as licensee on 1st February, 1973 would be the
licensees of the landlord or tenant and whether there be any
term in the original agreement for tenancy permitting
creation of such tenancy ar licences or not they would
become tenant and enjoy the rights granted under the Act
specially those mentioned in section 14(2) of the Act.
In the premises, in the facts and circumstances of the
case as mentioned hereinbefore, the appeal is allowed. The
judgment and order of the learned single judge of the High
Court of Bombay are set aside.
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In the facts of this case, however, we direct that the
parties shall . bear and pay their own costs.
P.S.S. Appeal allowed.
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