20 February 1984
Supreme Court
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RAVI DUTT SHARMA Vs RATAN LAL BHARGAVA

Bench: FAZALALI,SYED MURTAZA
Case number: Appeal Civil 212 of 1981


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PETITIONER: RAVI DUTT SHARMA

       Vs.

RESPONDENT: RATAN LAL BHARGAVA

DATE OF JUDGMENT20/02/1984

BENCH: FAZALALI, SYED MURTAZA BENCH: FAZALALI, SYED MURTAZA VARADARAJAN, A. (J) MISRA RANGNATH

CITATION:  1984 AIR  967            1984 SCR  (2) 614  1984 SCC  (2)  75        1984 SCALE  (1)285  CITATOR INFO :  R          1987 SC2230  (17,20)

ACT:      Constitution of  India 1950,  Article 14: Sections 14A, 25A and  25B of  Delhi Rent  Control Act  1958 whether ultra vires Article 14.      Slum Areas  (Improvement and Clearance) Act 1956, s, 19 Delhi Rent Control Act 1958, Ss. 14 (1) (e), 14A, 25A, 25B & 25C: suit  by landlord for eviction of tenant under s.14 (1) (e) or  s. 14A of the Rent Act-prior permission of Competent Authority under Slum Clearance Act-Whether necessary.

HEADNOTE:      The  appellant-tenant   was  inducted   into  the  suit premises as  for  back  as  1945.  The  respondent  landlord applied  under   section  19  (1)  (a)  of  the  Slum  Areas Improvement and  Clearance) Act  1956 before  the  Competent Authority  for  permitting  him  to  institute  a  suit  for eviction  of   the  appellant   but  that   application  was dismissed, and  the order  was confirmed  in appeal  by  the Financial Commissioner.  Thereafter the  respondent field  a suit for  eviction in  April 1979  under section  14 (1) (e) read with  section 25B  of the  Delhi Rent Control Act 1958. The tenant applied for leave to defend the suit but the same was rejected and an order of eviction was passed. A revision filed by the tenant in the High Court was dismissed.      In the appeal to this Court as well as in the connected Special Leave  Petition it  was contended  that:  (1)  under section 19  (1) (a)  of the  Slum Act it is incumbent on the landlord to  obtain permission  from the Competent Authority before institution  of a  suit for  evicting  a  tenant  and without such  permission the  suit was  no maintainable, and (2) sections  25A and  25B were ultra vires of Article 14 of the Constitution  and were  inconsistent with  the Slum  Act which was  an existing statute and, therefore, the procedure substituted under  Chapter IIIA,  particularly sections  25A and 25B should be invalidated.      Dismissing the Appeal and Special Leave Petition: 615 ^      HELD: A.(1) The High Court was correct in rejecting the

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applications of  the tenants  for setting aside the order of eviction. [624F]]      B.(1) Sections  14A, 25A,  25B and  25C of the Rent Act are special provisions so far as the landlord and tenant are concerned and  in view  of  the  non-obstante  clause  these provisions override  the existing  law so  far  as  the  new procedure is concerned; [624A]      (2) There  is no  difference either  on principle or in law between  sections 14 (1)(e) and 14A of the Rent Act even though these  two provisions  relate to  eviction of tenants under different situations; [624B]      (3) The  procedure incorporated  in Chapter IIIA of the Amending Act  into the Rent Act is in public interest and is not violative of Article 14 of the Constitution; [624C]      (4) In  view of  the procedure  in Chapter  IIIA of the Rent Act,  the Slum  Act is  rendered  inapplicable  to  the extent of  inconsistency and it is not, therefore, necessary for the  landlord to  obtain  permission  of  the  Competent Authority  under  s.  19  (1)(a)  of  the  Slum  Act  before instituting a  suit for  eviction  and  coming  within  s.14 (1)(e) or 14A of the Rent Act. [624D-E]      C.(1) The  dominant object  of the Amending Act of 1976 was to provide a speedy, expeditions and effect remedy for a class of landlords contemplated by sections 14(1)(e) and 14A and for avoiding unusual dilatory process provided otherwise by the  Rent Act.  Suits for  eviction under  the Act take a long time  commencing with the Rent Controller and ending up with the  Supreme Court.  In many  cases  by  the  time  the eviction decree  became  final  several  years  elapsed  and either the landlord died or the necessity which provided the cause of  action disappeared. It was this mischief which the legislature intended  to  avoid  by  incorporating  the  new procedure in  Chapter IIIA. It cannot therefore be said that the  classification   of  such   landlords   would   be   an unreasonable one  because such  a classification  has got  a clear nexus with the objects of the Amending Act of 1976 and the purposes which it seeks to subserve. [619D-F; G]      (2) The  new sections  14A, 25A,  25B and  25C had been introduced  for   the  purpose   of  meeting   a  particular contingency as  spelt out  in the  object and reasons behind the new  provisions. Once  it is  recognised that  the newly added sections  are in  the nature of a special law intended to apply  to special  classes of  landlords, the  inevitable conclusion would  be that  the application  of the  Slum Act stands withdrawn  to that extent and any suit falling within the scope of sections 14(1)(e) and 14A would not be governed or controlled by section 19 (1) (a) of the Slum Act.                                                     [621CD-] 616      (3) It is open to the legislature to pick out one class of the  landlords out of several covered by section 14(1)(e) of the Rent Act so long as they formed a class by themselves and the  legislature was  free to provide the benefit of the special procedure to them in the matter of eviction of their tenants as  long as the legislation had an object to achieve and the  special, procedure had a reasonable nexus with such object to be secured. [621F-G]      (4) The new provision in the Amending Act were intended to have  overriding effect  and all  procedural laws were to give way to the new procedure. [623D]      Kewal Singh  v. Lajwanti  [1980] 1  S.C.R. 854;  Sarwan Singh & Anr. v. Kasturi Lal [1977] 2 S.C.R. 421; Vinod Kumar Chowdhry v.  Narain Devi Taneja [1980] 2 S.C.R. 746 referred to.      Smt. Krishna  Devi Nigam  & Ors.  v. Shyam Babu Gupta &

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Ors. AIR 1780 Delhi 165 approved.

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil  Appeal No. 212 of 1981      Appeal by  special leave  from the  judgment and  order dated the  26th August, 1980 of the Delhi High Court in C.R. No. 790 of 1979.                             WITH      SPECIAL LEAVE PETITION (CIVIL) NO. 2948 OF 1982      From the  judgment and  order dated  the 17th December, 1981 of the Delhi High Court in C.R. No. 873 of 1981.      V. M.  Terkunde, P.M.  Parekh, Ms.  Indu Malhotra,  Ms. Kailash Mehta & Vimal Dave for the Appellant/Petitioners.      Bikarmjit Nayer  and D.D.  Sharma for the Respondent in GA. 212/81. 617      T.S. Kawatra  & N.K.  Agarwala for  the  Respondent  in S.L.P. No. 2948 of 1982.      The Judgment of the Court was delivered by      FAZAL ALI,  J. This Appeal by special leave is directed against an  order passed  by the  Delhi High Court on August 26, 1980  affirming an  order of  eviction of  the appellant made by  the Rent  Controller. The  facts of  the  case  lie within a  very narrow compass and the appeal involves a pure point of  law which is already convered by decisions of this court to which we shall presently refer.      The tenant,  Ravi Dutt  Sharma, was  inducted into  the suit premises  as for  back as  1945. The landlord Ratan Lal Bhargava applied  under section  19  (1)  (a)  of  the  Slum Clearance Act  (’Slum Act’  for short)  before the Competent Authority  for  permitting  him  to  institute  a  suit  for eviction of the appellant but that application was dismissed on July 28, 1973. An appeal against this order was dismissed by the Financial Commissioner on October 4, 1974. Thereafter Respondent filed  a suit for eviction of the tenant under s. 14 (1) (e) read with s. 25 (B) of the Delhi Rent Control Act ("Rent  Act’  for  short)  on  April  13,  1979.  Under  the provisions of  the  Rent  Act  as  amended  in  1976  it  is incumbent upon  the defendant  tenant to  apply for leave to defend a  suit for  eviction before  entering  contest.  The tenant applied  for such leave but the same was rejected and an order of his eviction was passed on September 14, 1979. A revision by  the tenant  to the High Court was dismissed and that has led to the appeal to this Court.      In the  special leave  petition Smt. Puspa Rani filed a suit for  eviction against  her  tenant,  Swaran  Kumar  and others, which  also was allowed by the Rent Controller and a revision therefrom  has been  dismissed by  the High  Court. Hence the petition for special leave against judgment of the High Court  has been filed and that was directed to be heard along with  the Civil  Appeal. It is unnecessary to give the facts involved  in the  case in which special leave has been asked for  because the point of law for consideration is one and the same. 618      Admittedly the houses for which eviction has been asked for in  these two cases are located within the slum areas as defined under  the Slum  Act. It  was contended on behalf of the tenants  that the  suits for  eviction by  the landlords were not  competent in  view of  want of permission from the competent Authority under the Slum Act. Under section 19 (1) (a) of  the Slum  Act it  is incumbent  on the  landlord  to

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obtain  permission   from  the  Competent  Authority  before instituting a  suit for  evicting a  tenant and without such permission the suit is not maintainable.      This argument  was countered  by the  respondent on the ground that  by virtue of the Amending Act of 1976 (referred to as the ’Amending Act’ for short) a new procedure has been substituted for two types of eviction of tenant-one of which was covered  by s.  14 (1)  (e) and  the other by section 14 (A). In  the instant  case  we  are  mainly  concerned  with eviction applications covered by s. 14(1) (e) of the special procedure  provided  in  Chapter  III-A  introduced  by  the Amending Act.  It was  contended by  the respondent  that by virtue of  the Rent  Act a special protection was given to a particular class of landlords who fell within the provisions of s. 14 (1) (e) of the Rent Act (personal necessity) and in such cases a procedure different from the procedure followed in other  cases had  been prescribed.  Section 25 (A) and 25 (B) sought  to simplify  the procedure  by insisting  on the tenant to  obtain permission  to  enter  defence.  In  other words, so  far as  suits  for  eviction  on  the  ground  of personal necessity were concerned, the case for eviction was put at  par  with  suits  under  Order  37,  Code  of  Civil Procedure where  the Court was satisfied that the tenant had an  arguable   case,  leave  to  defend  would  be  granted; otherwise the order of eviction would be passed straightway.      Learned  counsel  for  the  tenants  then  argued  that sections 25(A)  and 25 (B) were ultra vires of Article 14 of the Constitution  and were  inconsistent with  the Slum  Act which was  an existing statute and, therefore, the procedure substituted under  Chapter III-A,  particularly in SS. 25(A) and 25 (B) should be invalidated. On the other hand, counsel for the  landlords contended  that by virtue of the Amending Act a  new procedure  has been added in respect of evictions under s.  14(1) (e)  as also  the  newly  added  14(A),  and sections 25(A)  and 25(B) have been brought into the Statute to give  effect to  the  intention  of  the  legislature  by providing a Special procedure and 619 also making  provision that the new procedure would override the existing law to the contrary.      In order  to  appreciate  this  contention  it  may  be necessary to  give an  extract of  Statement of  objects and reasons of the Amending Act:      "There has  been a  persistent demand for amendments to      the Delhi  Rent  Control  Act,  1958  with  a  view  to      conferring   a    right   of    tenancy   on    certain      heirs/successors of a deceased statutory tenant to that      they may  be protected  from eviction  by landlords and      also for  simplifying the  procedure  for  eviction  of      tenants in  case the  landlord  requires  the  premises      bonafide   for   his   personal   occupation.   Further      Government decided  on the  9th September  1975 that  a      person who  owns his  own house  in his  place of  work      should vacate  the Government accommodation allotted to      him  before   the  31st   December   1975.   Government      considered that  in the circumstances, the Act requires      to be amended urgently."      The dominant object of the Amending Act was, therefore, to provide  a speedy, expeditions and effective remedy for a class of  landlords contemplated  by ss. 14 (1)(e) and 14(A) and for avoiding unusual dilatory process provided otherwise by the  Rent Act.  It is  common experience  that suits  for eviction under  the Act take a long time commencing with the Rent Controller  and ending  up with  the Supreme  Court. In many cases  experience has  indicated that  by the  time the

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eviction decree  became  final  several  years  elapsed  and either the landlord died or the necessity which provided the cause of  action disappeared  and if there was further delay in securing  eviction and  the family of the landlord had by then expanded,  in the  absence of accommodation the members of the family were virtually thrown on the road. It was this mischief  which   the  legislature   intended  to  avoid  by incorporating  the  new  procedure  in  Chapter  III-A.  The legislature in  its wisdom  thought that  in cases where the landlords required  their own  premises for  bona  fide  and personal necessity  they should  be treated  as  a  separate class along with the landlords covered by s. 14 A and should be allowed to reap the fruits of decrees for eviction within the quickest  possible time.  It cannot,  therefore, be said that the classification of such landlords would be 620 an unreasonable  one because such a classification has got a clear nexus  with the  objects of  the Amending  Act and the purposes which it seeks to subserve. Tenants cannot complain of any  discrimination because  the  Rent  Act  merely  gave certain protection  to them  in public  interest and  if the protection or  part of  it afforded  by  the  Rent  Act  was withdrawn and  the common  law right of the tenant under the Transfer of  property Act  was still  preserved, no  genuine grievance could  be made.  This was clearly held in the case of Kewal Singh v. Lajwanti.(1)      The matter  is no  longer res integra and is covered by two decisions of this Court which are directly in point. The first one is the case of Sarwan Singh & Anr. v. Kasturi Lal, (2) in  which an  identical point came up for consideration. It was  held by  this Court that sections 25 (A), 25 (B) and 25 (C) of the Rent Act (introduced by the Amending Act) were special provisions with reference to s. 14 (A) thereof which superseded all  existing Acts  to the  contrary. It was also pointed out  that these newly added sections in the Rent Act were to  apply only  to a class of landlords and, therefore, the question of violation of Act. 14 of the constitution did not  arise.   While  considering   various  aspects  of  the aforesaid provisions,  Chandrachud, J.  (as  he  then  was), spokes for the Court thus:      "When two  or more  laws operate  in the same field and      each contains  a non-obstante  clause stating  that its      provisions  will  override  those  of  any  other  law,      stimulating and  inoisive  problems  of  interpretation      arise.   Since    statutory   interpretation   has   no      conventional protocol,  cases of  such conflict have to      be decided  in reference  to the  object and purpose of      the laws under consideration.. For resolving such inter      se conflicts, one other test may also be applied though      the persuasive  force of  such a test is but one of the      factors which  combine to  give a  fair meaning  to the      language of  the law.  That  test  is  that  the  later      enactment must prevail over the earlier one. Section 14      A and  Chapter III  A having  been enacted  with effect      from December 1,1975, are later enactments in reference      to s. 19 of the Slum Clearance Act which in its present      form, was placed on the statute book with effect 621      from February 28, 1965 and in reference to s. 39 of the      same Act,  which came  into force  in 1956 when the Act      itself was  passed. The  legislature  gave  over-riding      effect to  s. 14 A and Chapter III A with the knowledge      that ss.  19 and 39 of the Slum Clearance Act contained      non-obstante clauses  of equal efficacy. Therefore, the      later  enactment   must  prevail  over  the  former....

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    Bearing in  mind the  language of  the two  laws, their      object and  purpose, and  the fact  that one of them is      later in  point  of  time  and  was  enacted  with  the      knowledge of the non-obstante clauses in the earlier l.      w, we  have come  to the conclusion that the provisions      of s.  14 A  and Chapter  III A of the Rent Control Act      must prevail  over those  contained in ss. 19 and 39 of      the Slum Clearance Act." C      An analysis  of the  aforesaid decision clearly reveals that the  now sections  14A 25(A),  25(B) and 25(C) had been introduced  for   the  purpose   of  meeting   a  particular contingency aespelt  out in  the objects  and reasons behind the new  provisions. Once  it is  recoginsed that  the newly added sections  are in  the nature of a special law intended to apply  to special  classes of  landlords, the  inevitable conclusion would  be that  the application  of the  Sulm Act stands withdrawn  to that  l extent  and  any  suit  falling within the  scope of  the aforesaid  sections-14 (1) (e) and 14A would  not be  governed or controlled by s. 19 (1) . (a) of the Slum Act.      It was.  however. submitted that s. 14A of the Rent act dealt with  a special  contingency  for  which  a  different procedure had  been  provided  in  the  matter  of  evicting tenants by  the landlords in occupation of premisss allotted by the Central Government or any local 1 authority. This was to enable them to get their own residential accommodation so that they  would be  in a  position to  vacate the  premises allotted to them by the Central Government. lt was contended that as  the Central Government and persons in occupation as tenants of  premises provided  by Central  Government were a class by  themselves, section  14 A  could  be  taken  as  a special provision  but 14  (1) (e)  of the  Act could not be elevated to  that-pedestal. We  are not  able to accept this argument. It was open to the legislature to pick out one cl- ass of  landlords out  of the  several covered by s. 14. (1) (e) of  the Rent  act so  long as  they formed  a  class  by themselves and  legislature was  free to provide the benefit of a  special procedure to them in the matter of eviction of their tenants as long the legisla- 622 tion had  an object to achieve and the special procedure had a reasonable naxus with such object to be secured.      Despite the  ingenious and  attractive arguments of Mr. Tarkunde, it  seems to  us that  the distinction made by the learned counsel  between ss. 14 (1) (e) and 14 A is really a distinction without  any  difference.  Moreover,  the  newly added sections,  viz., ss.  14A, 25(A), 25 (B) and 25 (C) do constitute parts  of a special scheme and have the effect of making  the   Sulm  Act   inapplicable.  In   view  of   the pronouncement of  this Court  as referred  to above,  it  is impossible to accede to the contention advanced on behalf of the tenants.  In Kewal  Singh’s case  (supra), a decision to which one  of us  was a  party (Fazal  Ali, J.),  this Court observed as follows-      "The Act  actually replaced  the  ordinance  which  was      promulgated on  1st December,  1979.  The  objects  and      reasons clearly reveal that the amendment has been made      or simplifying the procedure for eviction of tenants in      case the  landlord requires  the premises bona fide for      his personal  occupation. It  is  a  matter  of  common      knowledge that  even though  the landlord  may have  an      immediate and  imperative necessity  for  vacating  the      house given  to ..  tenant he is compelled to resort to      the time  consulting and  dilatory procedure  of a suit      which takes years before the landlord is able to obtain

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    the decree  and in most cases by the time the decree is      passed either  the landlord dies or the need disappears      and the  landlord is completely deprived of getting any      relier. It  appears to us that it was for these reasons      that the legislature in its wisdom thought that a short      an.. l  simple procedure  should be provided for. those      landlords who  generally want  the premises  for  their      bona fide  necessity in  that they  may be  able to get      quick and  expeditious  relief.........  The  landlords      having personal necessity have been brought together as      a separate  class because  of their  special needs  and      such a  classification cannot  be said  to be  unreaso-      nable particularly  when the  legislature in its wisdom      feels that  the landlords  should get  this  relief  as      quickly as possible           Thus taking  an overall  picture of the situation,      the circumstances under which the landlord’s needs have      been classified and the safeguards given by the statute      it cannot be said by 623      any stretch  of imagination  that section  29B and  its      sub-sections  are   violative  of  Article  14  of  the      Constitution of  India, or that section 29 suffers from      the vice  of excessive  delegation of  powers. In  fact      section 29  contains valuable and sufficient guidelines      which completely exclude the exercise of uncanalised or      arbitrary powers by the Rent Controller.      The ratio of this case reinforces the rule laid down in Sarwan Singh’s  case supra  and in  Vinod Kumar  Chowdhry v. Narain Delhi  Taneja,(J) it  was  clearly-pointed  out  that whenever there  was any conflict between section 29A and any other provision of law. s. 29 A was to override and prevail. Here again one of us (Fazal Ali, J.) observed;      "The non-obstante clause occurring in section 29A makes      it quite  clear  that  whenever  there  is  a  conflict      between the provisions of Chapter III A on the one hand      and those  of the  rest of  the Act or of any other law      for the  time being  in force  on the other, the former      shall prevail."      It is,  therefore, clear  from the new provision in the Amending  Act  that  the  procedure  indicated  therein  was intended to  have over-riding effect and all procedural laws were to give way. to the new procedure, . Applications under s. 14 (1) (e), therefore, clearly fell within the protective umbrella of the new procedure in Chapter IIIA:      An identical  view has  been taken  by the  Delhi  High Court tn the case of Smt. Krishnn Devi Nigam & Ors. v. Shyam Babu Gupta & Ors., In this decision it has been clearly held that the  provisions of  s. 29A  cannot be controlled by the provisions of  the Slum 4 Act. We fully approved and endorse the, ratio laid down in that decision as it is in conformity with the consistent opinion of this Court.      On  a   consideration,  therefore,  of  the  facts  and circumstances of  tho case and the law referred to above, we reach the following conclusions: 624      (1)   That sections  14A, 25A,  25B and 25C of the Rent           Act are  special provisions so far as the landlord           and tenant  are concerned  and in view of the non-           obstante clause  these provisions  would  override           the existing  law so  far as  the new procedure is           concerned;      (2)  That there is no difference either on principle or           in law  between sections 14 (l) (e) and 14A of the           Rent Act  even though  these two provisions relate

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         to tenants under different situations;      (3)  That the procedure incorporated in Chapter IIIA of           the Amending  Act into  the Rent  Act is in public           interest and is not violative of Article 14 of the           Constitution;      (4)   That in  view of the procedure in Chapter IIIA of           the  Rent   Act,  the   Slum-  Act   is   rendered           inapplicable to the extent of inconsistency and it           is not,  therefore necessary  for the  landlord to           obtain permission of the Competent Authority under           s. 19 (1) (a) of the Slum Act before instituting a           suit for  eviction and  coming within S. 19(1) (e)           or 19A of the Rent Act      We are,  therefore, of  the opinion that the High Court was correct  in rejecting  applications of  the tenants  for setting aside  the  .  Order  of  eviction.  The  appeal  is accordingly dismissed but without any order as to costs.      As a result of our decision, the special leave petition was to  be dismissed. In both these cases time to vacate the premiss  is extends till June 30, 1984, subject to filing of the usual  undertaking within  four weeks from today failing which the  landlords shall  be free  to ask  for  possession forthwith through the executing court. N.V.K.                          Appeal & Petition dismissed. 625