26 July 1996
Supreme Court
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PRALHAD LALCHAND CHAVAN Vs IQBAL HUSSAIN INAYAT HUSSAIN BADRI


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PETITIONER: PRALHAD LALCHAND CHAVAN

       Vs.

RESPONDENT: IQBAL HUSSAIN INAYAT HUSSAIN BADRI

DATE OF JUDGMENT:       26/07/1996

BENCH: AGRAWAL, S.C. (J) BENCH: AGRAWAL, S.C. (J) NANAVATI G.T. (J)

CITATION:  1996 SCALE  (5)618

ACT:

HEADNOTE:

JUDGMENT:                       J U D G M E N T S.C. Agrawal j.      Special leave granted.      This appeal  by the  landlord arises  out of a suit for eviction from  premises governed  by the  provisions of  the Central  Provinces   and  Berar  Regulation  of  Letting  of Accommodation Act,  1946 Act,  1946 (hereinafter referred to as ’the Act’) and the Central provinces and Berar Letting of Houses and Rent Control Order, 1949 (hereinafter referred to as ’ the Rent Control Order’)      The Rent Control Order has been made in exercise of the power conferred  by Section  2 of the Act which empowers the State Government  by general or special order to provide for regulating the  letting and sub-letting of any accommodation or  class  of  accommodation  whether  residential  or  non- residential. Clause  (b) of  Section 2 of the Act prescribes that such  order may  provide for  preventing the prescribes that such  order may  provide for preventing the eviction of tenants or  sub-tenants from such accommodation in specified circumstances. In  clause  13  of  the  Rent  Control  Order provision has  been made  for the  protection of  a  tenants against the  eviction. The relevant parts of the said clause are reproduced below :-      "13(1) No  landlord  shall,  except      with    the     previous    written      permission of the Controller :-      (a)   give    notice   to   tenants      determining the  lease or determine      the lease if the lease is expressed      to be  determinable at his option ;      or      (b)   whether    the    lease    is      determinable by  efflux of the time      limited thereby  require the tenant      to vacate  the house  by process of      law or  otherwise if  the tenant is

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    willing to  continue the  lease  on      the same terms and conditions.      xxx     xxx     xxx     xxx     xxx      (3) If  after hearing  the  parties      the Controller is satisfied :-      xxx     xxx     xxx     xxx     xxx      (iv)   that the tenant has used the      house  or  premisses  or  any  part      thereof for  a purpose  other  than      that for which it was leased ; or      xxx     xxx     xxx     xxx     xxx      (vi) that  the landlord  needs  the      house or  a portion thereof for the      purpose of  his bonafide residence,      provided he  is not  occupying  any      other residential  house of his own      in the city or town concerned; or      xxx    xxx     xxx     xxx    xxx           he shall  grant  the  landlord      permission  to   give   notice   to      determine the  lease as required by      sub-clause (1)."      On  April   18,  1985   the  appellant   submitted   an application  before   the  Rent   Controller  for  grant  of permission to  issue a  notice terminating  the lease of the respondent. The appellant sought the permission on grounds (VI) and  (VI) of  sub-clause (3)  of clause  13 of the Rent Control Order.  The said  application of  the appellant  was rejected by  the Rent Controller by order dated December 29, 1987. The appeal filed by the appellant against the said was allowed by  the Rent  Control Appellate  Authority by  order dated December  13, 1988  and necessary  permission to issue notice terminating  the lease  was granted under ground (vi) of sub-clause  (3) of  clause 13  of the Rent Control Order, i.e. the  landlord needs  the house or a portion thereof for the purpose  of his  bonafide residence,  provided he is not occupying any other residential house of his own in the city or town  concerned, Feeling  aggrieved by  the order  of the Rent Control Appellate Authority dated December 16, 1988 the respondent moved  the High  Court of  Bombay, Nagpur  Bench, Nagpur by  filing Writ  Petition No  1745 of  1989. The said writ petition   was dismissed by the learned single Judge of the High  Court  by  Judgment  dated  August  8,  1989.  The petition filed for review of the said judgment was dismissed by the  learned single  Judge by  order dated  November  29, 1990. Thereafter,  the respondent  filed  a  Letters  Patent Appeal Against  the Judgment  of the  learned single  Judge, which was dismissed by the Division Bench of the High Court. The  petition  for  special  leave  to  appeal  against  the judgment of  the Division Bench was dismissed by this Court. As a  result the Order granting permission by this Court. as result the  order granting permission under clause 13 of the Rent Control  Order, to issue a notice terminating the lease of the respondent, become final.      In the  meanwhile after  passing of  the order the Rent Control Appellate Authority dated December 16, 1988 granting permission to  issue a  notice terminating  the  lease,  the appellant, on  March 3,  1989, issued a notice under Section 106 of the Transfer of Property Act terminating the lease of the respondent  by the  end of  April 1989 and asking him to hand over  vacant possession  of the premises on the date of termination of  the lease.  Since the  respondent failed  to comply with  the said  notice and did not deliver possession of the premises, the appellant, on May 2, 1989, filed a suit (Civil Suit  No. 100  of 1989)  in the Court of Civil Judge,

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Junior Division,  Amravati for  eviction of  the respondent. The said  suit of  the appellant  was decreed  by the  Civil Judge, by Judgment dated January 31, 1990 and the respondent was directed  to vacate  the premises  and hand  over vacate possession  to  the  appellant.  The  appeal  filed  by  the respondent against  the said  decree of  the trial court was dismissed by  the district Judge, Amravati by Judgment dated March 24,  1994,  Thereafter,  the  respondent  filed  Civil Revision Application  No 616 of 1994 in the High Court which was allowed  by the impugned Judgment dated July 18, 1994 on the view  that which deciding the appeal the appellate court failed to  consider the subsequent events namely that during the pendency  of the  litigation the appellant had purchased another house and had started residing there and thereby the requirement of the appellant was fulfilled. According to the High Court the landlord secured permission for his bona fide requirement, but  during  the  pendency  of  the  litigation especially in  the eviction  proceedings, subsequent  events regarding the purchase of alternative accommodation occurred and that this aspect has to be taken into consideration. The High Court,  therefore, while  setting aside the Judgment of the Additional  District Judge  with a direction to consider the subsequent events and adjudicate the matter accordingly. Feeling aggrieved by the said judgment of the High Court the appellant has filed this appeal.      Shri V.A.  Mohta, the  learned senior counsel appearing for the  appellant, has  urged that  the scheme  of the Rent Control Order  is that  the protection against eviction that is available  to the  tenant under  clause 13  of  the  Rent Control Order whereby the landlord is required to obtain the permission of  the Rent  Controller before  issuing a notice terminating the  tenancy and  such permission can be granted only on  a ground  mentioned in sub-clause (3) of clause (13 of the Rent Control Order, Shri Mohta has submitted that the order of  the  Rent  Controller  granting  permission  under clause  13   can  be  challenged  before  the  Rent  Control Appellate Authority  in appeal  under sub-clause  (3) 21 and that no  further appeal,  revision or application for review lies  from  the  decision  of  the  Rent  Control  Appellate Authority to any other authority whatsoever. Shri Mohata has pointed out that under Section 7 of the Act the jurisdiction of civil  courts is barred in respect of any order passed by an officer  or authority under an order made under Section 2 the Act  and, therefore, the order granting permission under clause 13 of the Rent Control Order is not open to challenge challenged by  filing a  writ petition  under Article 226 of the Constitution  before the  High Court, The respondent had available  the   said  remedy   under  Article  226  of  the Constitution by  filing a   writ petition which petition was dismissed by  the learned single Judge and the said judgment of the  learned single judge  was affirmed in Letters Patent Appeal by  the Division  Bench and  the petition  filed  for special leave  to appeal  against the said judgment was also dismissed by  this Court,  As a  result, the  order granting permission under  clause 13(3)(vi) of the Rent Control Order became final  and a  party cannot  be permitted to go behind the order  granting permission and to reagitate the question whether the  appellant is  entitled to  seek eviction of the respondent from  the premises  of his  bona fide  residence, Shri Mohta  has placed  reliance  on  the  decision  of  the Division  Bench   of  the  High  Court  in  R.P.  Ghosh  VS. Pramilabai Ravindra  Puri  and  Ors,  1976  Maharashtra  Law Journal 828,  and the  observation of  this Court in Benilal (deed) by Lrs. vs. State of Maharashtra and Ors. 1995 Suppl. (1) SCC 235.

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    Shri S. Balakrishnan, the learned counsel appearing for the respondent,  has submitted  that grant  of permission to the landlord  to issued  a notice  terminating  the  tenancy under clause  13(3) of  the  Rent  Control  Order  does  not preclude the  tenant  from  showing  that  in  view  of  the subsequent events that have occurred after the grant of such permission ,  the need  of the  landlord for the premises no longer subsists  and he  is not entitled to seek eviction of the tenant.  Shri Balakrishnan  has  laid  emphasis  on  the object underlying  the protection  Against eviction given to the tenants  under clause  13 of  the Rent Control Order and has submitted  that to deny to the tenant and opportunity to relay upon  subsequent events  occurring  after the grant of permission would  not be in consonance with the decisions of this Court wherein subsequent events have been taken note by this Court in the context of proceedings for eviction of the tenant on the ground of bonafide need of the landlord.      A perusal  of the  provisions contained in clause 13 of the Rent  Control Order  shows that the nature of protection which has been conferred on the tenant under the said clause differs from  the protection given to the tenant under other similar rent  control laws  in other  States. In most of the rent control  laws in  force protection  against eviction is conferred on  the tenant by imposing the requirement that no decree for  eviction shall  be  passed  against  the  tenant except on  certain specified grounds or no suit for eviction by the  tenant would  be filed  except on  certain specified grounds. Such  laws envisage a single judicial proceeding in which the  landlord is  required to  make  out  a  case  for eviction of  the tenant  on the  basis of  any  one  of  the specified grounds  and the  decree  or  order  for  eviction passed by  the civil court or the Rent Controller is subject to an appeal or revision and a further appeal or revision in the High Court. The Rent Control Order, However, envisage to separate proceedings.  One is the proceeding before the Rent Controller under  clause 13  of the  Rent Control  Order for grant of  permission  to  issue  a  notice  terminating  his tenancy which  order is  subject to  appeal before  the Rent Control Appellate  Authority and Judicial review by the High Court under Article 226 of the Constitution. In the event of grant of  permission to  issue the  notice  terminating  the lease, the  proceedings under  clause 13 of the Rent Control Order are  followed by a second proceeding, viz., a suit for eviction after  the landlord  has terminated  the tenancy by issuing a  notice  in  accordance  with  the  provisions  of Section 106  the Transfer  of Property  Act. By clause 13 of the Rent  Control Order  a bar is placed on the right of the landlord to terminate the tenancy of tenant by requiring him to obtain  the necessary  permission in that regard form the Rent controller  and such  permission can be granted only if any of  the grounds specified in sub-clause (3) of clause 13 is made out. In other words under clause 13 that bar that is placed on the right of the landlord to terminate the tenancy of the  tenant is  lifted when permission to issue notice is granted and  therefore the landlord can proceed to terminate the tenancy  in accordance  with Section 106 of the transfer of property  Act and in the event of the tenant not vacating the premises  after the termination of the tenancy by such a notice, the  landlord can  seek the  eviction of  the tenant filing a  suit on  the ground  that the  tenancy having been terminated under Section 106 of the Transfer of Property Act the tenant has no right to remain in occupation. In the said suit the validity of the order granting permissing cannot be assailed by the tenant in view of the bar created by Section 7 of  the Act  read with  clause 21(3)  of the  Rent Control

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Order.      Shri Balakrishnan  does dispute that it is not open the respondent to  assail the  Correctness of the Order granting permission  under  clause  13  of  the  Rent  Control  Order granting permission  under clause  13 of  the  Rent  Control Order  and   that  the   court  dealing  with  the  suit  or appeal/revision is obliged to take to take into account such subsequent event.  In our  view this  contention  cannot  be accepted. Having regard to the fact that the protection that is available  under clause  13 of  the Rent Control Order is confined  to   the  first   proceeding  governing  grant  of permission to issue a notice for terminating the tenancy and the tenant having been found not entitled to such protection on account  of grant  of such  permission under clause 13 of the Rent  Clause 13  of the  Rent Control Order and the said order having  become final,  it is not open to the tenant to reagitate the  said question  in the  subsequent proceeding, viz., the  suit for  eviction,  and  invoke  the  protection available under clause 13 in the suit filed by  the landlord against the  tenant after the tenancy has been terminated on the basis  of the  permission granted under Clause 13 of the Rent Control  Order. The  Scope of inquiry in the subsequent suit is  limited to  the scope  of inquiry in the subsequent suit is  limited to the question whether permission to issue a notice  to terminate  the tenancy  has been  granted under clause 13  of the  Rent Control  Order and if so whether the tenancy has  been validly  terminated in accordance with the provisions of  Section 106  of the  Transfer of Property Act and the tenant has lost the right to remain in occupation of the premises let out him.      In R.P.  Ghosh v.  Pramilabai Ravindra  Puri and others (supra) a  Division Bench of the Bombay High Court has taken the same  view. In  that case permission had been granted by the Rent  Controller  to  serve  a  notice  terminating  the tenancy under  clause 13  of the  Rent Control  Order on the ground that  the premises  were required by the landlord for his bona  fide personal occupation and an appeal against the said order  had been  dismissed by  the appellate authority. The landlord had issued a notice to the tenant under Section 106 of the Transfer of Property Act. Thereafter the original landlord died and his legal representatives filed a suit for eviction. It  was urged  that  since  the  ground  on  which permission was  granted was  personal to the landlord and in view of  the death of the original landlord the cause of the action did  not survive  and the  permission granted  by the Rent Controller  stood  exhausted  with  the  death  of  the original landlord  and that it was obligatory on the part of the legal  permission had  not been  obtained from  the Rent Controller by  the legal  representatives  of  the  deceased landlord, the suit was not maintainable. The said contention was negatived  by the  Division Bench of the High Court. The High Court held that once permission is granted under clause 13 of  the Rent  Control Order  by the Rent Controller, then the landlord  is at  liberty to serve notice upon the tenant terminating his tenancy as per provisions of the Transfer of Property Act  and it  is the Transfer of Property Act and it is the  Transfer of  Property Act which then applied and the provisions of  the Rent  Control Order do not come into play nor they  could affect  the question  of notice to quit, its requirement or its service etc. once a valid permission from the Rent  Controller is  obtained. The  learned Judges  have said :      "The  Rent   Control   Order   only      provides that  such a notice cannot      be   given    unless   a    written

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    permission   down    any    further      condition as far as the quit notice      under Section  106 of  the Transfer      of Property  Act is  concerned. The      filing of  a suit  for ejectment is      an independent action. The combined      effect   of   this   is   that   is      contemplates      two      distinct      proceedings,   one    relating   to      granting of a written permission by      the  Rent   Controller   provisions      notice to determine the lease under      the provisions  of the Rent Control      Order and  thereafter filing  of  a      suit   for   ejectment   before   a      competent civil  court after giving      necessary notice  under Section 106      of the  Transfer of  Property  Act.      The   Rent    Controller   of   the      authority  constituted   under  the      Rent Control Order has no authority      jurisdiction to  eject a  tenant or      deliver possession  of the property      to  the   landlord.  This   is  the      province  of  a  civil  Court.  The      filing of  the ejectment suit after      giving a  notice under  Section 106      of the  Transfer of Property act is      not   the   Continuation   of   the      proceeding which is governed by the      Code of  Civil  Procedure  and  the      Transfer of Property Act."      [p. 832]      "Obviously  exclusive  jurisdiction      is vested  upon  the  Rent  Control      authorities to decide the rights of      the parties arising out of the Rent      Control Order.  A decision  of  the      Rent Controller  in this  behalf is      binding upon  a civil  Court and it      is not  open for the civil Court to      go behind  the said Order."      [p. 834]      "Once it  is held that the decision      of the Rent Controller so far as it      relates to  the matter  within  his      exclusive      jurisdiction      is      concerned, is  final and  could not      be challenged in the suit or in any      collateral  proceedings,  then,  in      our opinion, the same matter cannot      be  reopened   in  a   civil   suit      instituted by  the land  lord after      obtaining  a  permission  from  the      Rent Controller.  So far  as a suit      for  ejectment  is  concerned,  the      cause of  action is  not the ground      on which  the permission is granted      by the  Rent  Controller,  but  the      termination of  the tenancy  of the      tenant under  the provisions of the      tenancy of  the  tenant  under  the      provisions  of   the  Transfer   of      Property Act. The same gives of the      Transfer of  Property Act. The same

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    gives an occasion for and forms the      foundation of  the suit.  So far as      the ejectment  suit concerned,  the      grounds    of     ejectment     are      irrelevant.  To  such  a  suit  the      provisions of  the Civil  Procedure      Code and  Transfer of  Property Act      will apply  and not  the provisions      of the Rent Control Order."      [p. 835]      We are  in agreement  with the  said view  of the  High Court. It  appears that the said decision was not brought to the notice of the learned judge who decided this matter.      This Principle  that subsequent  events should be taken into account  by the court while passing a decree can have a limited application in a case like the present one involving two independent  proceedings. It would apply at the stage of the firs  proceeding relating to the grant of permission but would have  no application  after the  order passed  in  the first proceeding  has attained  finality. Once the decree or order has  become final  the tenant is precluded from saying that in view of subsequent events the need or requirement no more existed,  [See : Hasmat Rai & Anr. v. Reghunath Prasad, 1981 (3) SCR 605, at p. 617; D.K. Soni v. P.K. Mukherjee and Others, 1988 (1) SCC 29, at [p.32]      For the reasons aforementioned, we are of the view that the High  Court  was  in  err  in  holding  that  the  lower appellate  court  was  obliged  to  take  into  account  the subsequent events  regarding  the  purchase  of  alternative accommodation by  the appellant  and in  setting  aside  the Judgment of  the Additional District Judge and remanding the matter for  reconsideration to the said Court. Since, in our opinion, it was not permissible in proceedings arising out a suit for eviction to take into account the subsequent events having a  bearing on  order granting permission under clause 13 of  Rent Control  Order on the ground of bonafide need of the appellant, the said Judgment of the High Court cannot be upheld and has to be set aside.      Before we  conclude  we  must  say  that  the  existing provisions under the Act and the Rent Control Order relating to eviction  of tenant  requiring to  proceedings -  one for grant of  permission to  issue the  notice  terminating  the tenancy to  be followed by regular suit for eviction no only lead to  multiplicity of  proceedings but  also cause  undue hardship  to   the  parties.   It  is  high  time  that  the Legislature gives  a fresh  look to  the said provisions and brings the  law in  this field  in tune  with other  similar legislations applicable in other parts of the Country.      In the  result, the  appeal is allowed, the judgment of the High  Court dated  July 18, 1994 is set aside and, while dismissing the  revision petition  filed by  the respondent, the Judgment  and Order  dated March  24, 1994 passed by the Additional District  Judge, Amravati  is  restored.  In  the facts and  circumstances of the case, there will be no order as to costs.