B. Banerjee Vs. Anita Pan [1974] INSC
246 (20 November 1974)
KRISHNAIYER, V.R.
KRISHNAIYER, V.R.
BEG, M. HAMEEDULLAH GOSWAMI, P.K.
CITATION: 1975 AIR 1146 1975 SCR (2) 774 1975
SCC (1) 168
CITATOR INFO :
F 1976 SC 479 (8) E&R 1978 SC1062
(4,6,7,9) RF 1978 SC1296 (59) E 1980 SC 214 (26) R 1980 SC 898 (66) R 1980
SC1124 (18) MV 1982 SC1325 (31) O 1983 SC1155 (13,15,23,27,29) F 1985 SC 376
(4)
ACT:
West Bengal Premises Tenancy Act 1956 as
amended in 1969-S.
13(1)(f) and (ff)-Constitutional validity
of-Whether offends Art. 19(1)(f) and (5).
HEADNOTE:
Section 13(1)(f) of the West Bengal Premises
Tenancy Act, 1956 Act XII of 1956) enacted that no order or decree for the
recovery of possession of any premises shall be made by any court in favour of
the landlord against the tenants except among others, on the ground that the
premises are reasonably required by the landlord either for the purpose of
building or rebuilding or for making thereto substantial additions or
alterations or for his own occupation if he is the owner or for the occupation
of any person for whose benefit the premises are held.
Section 13(4) of the Act provides that where
a landlord requires the premises on any of the grounds mentioned in cl.
(1)(f) and the Court is of opinion that such
requirement may be substantially satisfied by ejecting the tenant from a part
only of the premises the Court shall pass a decree accordingly. In 1969 the Act
was amended by West Bengal Premises Tenancy (Second Amendment) Act. Section 13
of the original Act was amended by introducing sub-section (3A) in it. This
sub-section prohibits institution of a suit for ejectment of a tenant by a
landlord who has purchased the premises for his own use within three years of
the purchase.
The Amending Act also enacted that the said
Act shall apply to suits and appeals, which are pending at the date of the
commencement of the Act.
The respondent purchased the suit premises in
which the appellant was a tenant and instituted a suit for ejectment of the
tenant under s.13(1)(f) of the original Act. The suit was decreed by the lower
court and affirmed by the lower appellate court. A single Judge of the High
Court dismissed the appeal. When the Letters Patent Appeal was pending before
the High Court, the Amending Act of 1969 was passed, whereupon, the
tenant-appellant invoked the provisions of the new sub-sec. (3A) and contended
that since the landlord had instituted a suit the ejectment within three years
of the purchase, the suit should be dismissed.
The High Court held that s.3A was valid
prospectively but that the restriction imposed by the sub-section. giving it
retrospective effect, was violative of Art. 1(1) (f) of the Constitution.
Per Beg and Krishna Iyer, JJ:
Allowing the appeals and remitting the case
to the High Court,
HELD : (1) (a) There is no violation of Art.
19(1) (f) read with Art. 19(5) of the Constitution in the Amending Act, and
s.13 of the original Act, as amended is valid. The evil corrected by the
Amendment Act is to stop the influx of a transferee class of evictors of
tenants and institution of litigation to eject and rack-rent or re-build to
make large profits. Apparently the inflow of such suits must have been swelling
slowly over the years and when the stream became a flood the Legislature rushed
with an amending bill. Had it made the law merely prospective, those who had,
in numbers, already gone to Court and induced legislative attention would have
escaped the inhibition. This would defeat the object and so the application of
the additional ban to Pending actions could not be called unreasonable. There
is no foundation for the assumptions made by the High Court that there may be
cases of ejectment instituted prior to 1956 or that a number of suits and
decrees, perhaps decades old. will unjustly be nullified by the previous
operation of the new ban. Recondite instances and casual hardships cannot
deflect constitutional construction of social legislation, 775 if the main
thrust of the statute relates to a real social evil of dimensions deserving to
be antidoted by antedated legislative remedy. Questions such as whether those
cases which were filed several years ago should have been carved out of the
category of transferees hit by the Act, and at what point of time the evil
assumed proportions were best left to legislative wisdom and not to courts
commonsense.
[788C-D; 787F-G; 783F; 787H] In the instant
case the two landlord-respondents had purchased the buildings in the early
sixties, but while considering the constitutionality the Court would not be
moved by such accidental instances. The substantial evil has been substantially
met by a broad application of the new ban to pending proceedings. [788C]
Section 13. fairly read, directs that the amendment made by s. 4 shall have
effect in respect of suits, including appeals, pending at the commencement of
the Act. The Court is, therefore, bound to give effect to s. 4 in pending
actions regardless of isolated anomalies and individual hardships. [788G]
(b)Where two interpretations are possible that which validates the statute and
shortens litigation should be preferred to the one which invalidates or
proliferates it.
Although the old cl. (f) is substantially
similar to the present cls.(f) and (ff) the latter imposes more severe
restrictions protecting the tenants. Much more has to be proved by the landlord
now before he can get eviction than when he was called upon to under the
earlier corresponding provision of the basic Act. Moreover, the three year
prohibition against institution of the suit is altogether new. It follows, therefore,
that on the present allegation and evidence the landlord may not get a decree,
his suit having been instituted at a; time when he could not have foreseen the
subsequent enactment saddling him with new conditions. [789C; 789B] Though
therefore, the suit, as originally brought in, would be defective since it did
not and could not contain the averments complying with the new cls. (f) and
(ff) of s.13(1) it is made effective by construing the term 'institute' in a
natural and grammatical way. [789D] (c)'To institute is 'to begin or commence'.
The prohibition clamped down by sub-section (3A), carefully read, is on suits
for recovery of possession by transfereelandlords on any of the grounds
mentioned in cl. (f) Qr cl.
(ff) of sub-section (1). [789G] In the
instant case the suits were not for recovery on grounds contained in clauses
(f) and (ff). They were based on the repealed cl.(f) of s.13 of the basic Act.
Strictly speaking sub-section (3A) brought in by s. 4 of the Amending Act
applies only if (a) the suit is by a transfereelandlord; (b) it is for recovery
of possession of premises;
and (c) the ground for recovery is what is
mentioned in cls.
(f) and (ff) of sub-section (1). Undoubtedly
the third condition is not fulfilled and therefore sub-s. (3A) is not
attracted. [789H] (d)But since the new cls.(f) and (ff) were included by the
Amendment Act in s.13 of the basic Act and since the suits did not seek
eviction on those grounds they will have to be dismissed on account of the
omnibus inhibition on recovery of possession contained in s. 13 itself. [790C]
Per Goswami, J : (1)(a) In trying to include old actions that may be surviving
in courts because of laws' proverbial delay s. 13 of the Amended Act has gone
far in excess of the actual needs of the time and problems and the provisions
therefore cannot be said to impose a reasonable restriction on the right of the
transferee landlords, albeit a well defined class amongst the landlords, to
hold and enjoy their property in the interest of the general public. Such
transferee-landlords with pending old actions in suits or in appeals are not
likely to be of a large number. The imposition of such restrictions on a few
transfereelandlords cannot be in the general interests of the large body of
tenants. If relief in the shape of postponement of the landlord's suit were the
object of sub-section (3A) in giving retrospectivity to it. the law did not
take count of the inevitable long 776 delay that takes place in pending
litigation as a result of man-made laws of procedure in courts such as have
been clearly demonstrated by the cases at hand. The lawthat misses its object
cannot justify its existence. Besides it will be a sterilerelief if tenants
have to face a fresh summons next days. [798A-C] (b)Under the Constitution an
individual's right will have to yield to the commonweal of the general
community, That general community may be in broad segments but even then must
form a class as a whole. A few individuals cannot take the Place of a class and
for the matter of that the general public. [798H] In the present case the
relief contemplated by the Amendment Act is in favour of tenants in general and
the restriction under sub-section (3A) must be viewed in that context. It
cannot be said that the legislature in applying sub-section (3A)
retrospectively has achieved that avowed object at all.
The applicability of the blanket ban to
pending suits and appeals cannot be said to be a reasonable restriction in ,he
interest of general public. [799A-B] (c)Sub-section (3A) so far as it is
retrospective and as such applicable to pending suits including appeals is
ultra vires Art. 19(1) (f) of the Constitution. The provision is valid only
prospectively. The retrospectivity so far as subsection (3A) in concerned with
regard to institution of suits made applicable to pending suits and appeals is
clearly very wide of a reasonable mark and is an imposition of an unreasonable
restriction on the right of the transferee landlords in pending suits which had
been instituted prior to the amendment Act and in appeals arising there from
and it is not saved by the protective clause (5) of Art. 19 of the
Constitution. [799D-E] (2)On the terms of only s. 13 (3A) it is difficult to
hold that it would bring old actions within the mischief of s.13(3A) which
imposes a ban expressly on institution of suits within three years of the
acquisition of ownership of the premises subject to the relaxation contained in
the proviso thereto. [796B-C] (3)Section 13(1)(f) and (ff) are not ultra vires
of Art.
19(1)(f) of the Constitution. Further reliefs
have been sought to be given to the tenants as a class by these provisions in
the Amendment Act. These further reliefs are in the general interests of
tenants and can be applied without any difficulty, to pending suits including
appeals.
There is nothing unreasonable about such a
retrospectivity in applying these provisions for the general welfare of tenants
in securing for them asafe and sure tenure as far as practicable untrammelled
by inconvenient litigation.[799F-G] Arguments for theappellants In C.A. 2063/73
by P. C.
Chatterjee There is no vestedright to eject
on determination of the tenancy but it is conditioned by s. 13, Cl. (a) to (k)
and therefore right to eject is not vested in the landlord until a decree is passed.
Upto that stage it is contingent depending on the satisfaction of cl. (a) to
(k) of s.13. If there is no vested property right, no question of Art. 19(1)(f)
of the Constitution will arise. By denying the right to eject for three years
from the date of purchase the right to property is not restricted or burdened.
The approach of the High Court of separately treating prospectivity and
retrospectivity is not correct. The correct approach adopted by this Court is
that in considering the reasonableness of any provision retrospectivity of the
law is a factor to be considered. Retrospective operation is not bad because it
covers a period of 10 years or so.
For respondent (In C.A. 1304 of 1973.) The
object of the new sub-section (3A) being to give protection to tenants for a
limited period of three years from the date of purchase of the premises by the
landlord, by giving retrospective effect to' the said sub-section the period
limited by the subsection cannot be enlarged.
Therefore, s.13 of the Amending Act which
gives retrospective effect to the said sub-section (3A) should be construed in
a manner so as to keep the effect of retrospectively within the period 777
limited by the said new sub-section 3A. Sections 4 and 13 of the Amending Act
have to be construed harmoniously keeping the object of the Act in view and in
doing that if the court has to supply some words to make the meaning clear, it
should prefer the construction which is more in consonance with reason and
justice. [1958] S.C.R. 739 at 745. The language of sub-s. 3A and the object and
reason for introduction of the said sub-section make it clear that Only
Prospective effect could be given to the sub-section and in any case its effect
cannot go beyond three years of purchase of the premises by the landlord. If,
s.13 of the Amending Act means that s. 4 of the Amending Act applies to all
pending suits including appeals filed by a transferee landlord after the
principal Act came into force, then it is clearly violative of art 19(1)(f) of
the Constitution. The High Court therefore, rightly struck down s.13 giving
retrospective effect to s. 4 of the , Act. Further no law can impose
restrictions retrospectively on fundamental rights.
Arguments for the respondent in C.A. No. 2063
of 1973.
The impugned section cannot be so interpreted
as to give it retrospective effect so as to bring within its mischief all suits
and proceedings including appeals which may be pending since the enforcement of
the Act. This Court can depart from the general rule to apply the law as it is
on the date of institution of the suit and apply the law as on the date when
the appeal comes up for disposal specially because no injustice is going to be
caused between the parties and as such a course would avoid multiplicity of
proceedings.
Section 13 of the Amending Act is ultra vires
of article 19, because, construed literally the section cannot give protection
to such of the tenants against whom proceedings are pending for more than 10
years or so, a protection for a period more than what is envisaged by the
Amending Act.
This is clearly not what is intended or
contemplated by the legislature. Giving retrospective effect to the section
would only benefit a few and is not in the public interest of the tenants of
the transferee-landlords. The restriction is arbitrary and invades the right to
property and is not saved by cl. (5) of article 19. The restriction is not
reasonable.
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 2063 of 1973.
Appeal by special leave from the judgment and
decree datedthe 25th July. 1973 of the Calcutta High Court in Appeal from
Appellate Decree No. 1193 of 1972.
Civil Appeal No. 1304 of 1973.
From the judgment and order dated the 3rd
February, 1972 of the Calcutta High Court in L.P.A. No. 14 of 1969.
P. Chatterjee and Rathin Das, for the
appellant (In C. A. 2063/73).
Urmila Kapoor and Shobha Dikshit, for the
respondent (In C.A. No. 2063/73).
P.K. Chatterjee, G. S. Chatterjee, and
Sukumar Basu, for the Advocate General for the State of West Bengal.
Sukumar Ghose, for the appellants. (In C.A.
No. 1304/73).
D. N. Mukherjee, for the respondents (in C.A.
No. 1304/73).
The judgment of M. H. Beg and V. R. Krishna
Iyer, JJ was delivered by Krishna Iyer, J. P. K. Goswami, J. gave a separate
Opinion.
KRISHNA IYER, J.-Calcutta or Cochin, for the
urban people of India, the shocking scarcity of a roof to rest one's tired
bones is an -L346SupCI/75 778 unhappy problem of social justice that compels
control of rent. and eviction laws. In the case now before us, attacking the
constitutionality of legislation handcuffing the landlord-proprietariat's right
of eviction, the law has to be tested not merely by the cold print of Art.
19(1)(f) but also by the public concern of Art. 19(5) and the, compassionate
animus of Art. 39, Parts III and IV of the Constitution together constitute a
complex of promises the nation has to keep and the legislation challenged
before us is in partial fulfilment of this tryst with the people.
These observations become necessary in limine
since counsel for the respondents dismissed the concept of social justice as
extraneous to an insightful understanding of the section invalidated by the
High Court, while we think that judicial conscience is not a mere matter of
citations of precedents but of activist appraisal of social tears to wipe out
which the State is obligated under the Constitution.
The two appeals before us, raising
substantially identical points, have been heard together and are being disposed
of by a common judgment. Both of them stem from a decision of the Calcutta High
Court reported as Sailendra Nath v. S. E. Dutt(1). One of the decisions under
appeal (C.A. 2063 of 1973) was rendered by a Single Judge of the High Court
following a Division Bench ruling of the same Court (i.e., the one reported as
Sailendra Nath v. S. E. Dull) since he was obviously bound by it.
A provision imparting some sort of
retroactivity to a 1969 legislative amendment implanting additional
restrictions on eviction of premises under the earlier West Bengal rent control
law has been voided by the High Court in the judgment& under appeal. The
aggrieved tenant in each case has appealed and the State, not being directly a
party to the legislation, has entered appearance to support, the legislation
and to challenge the Calcutta decision to the extent it has invalidated the
retrospective part of the statute.
Welfare legislation calculated to benefit
weaker classes, when their vires is challenged in Court, casts an obligation on
the State, particularly when notice is given to the Advocate General, to
support the law, if necessary by a Brandeis brief and supply of socio-economic
circumstances and statistics inspiring the enactment. Courts cannot, on their
own, adventure into social research outside the record and if Government lets
down the Legislature in Court by not illumining the provisions from the angle
of the social mischief or economic menace sought to be countered, the victims
will be the class of beneficiaries the State professed to protect. In this
case, we are unable to compliment the State or the Advocate General from this
point of view. It may happen that when the Court decides against the validity
of a measure or order because Government fails to bring the socially relevant
totality of facts, it is used Is an alibi by (1) A.1 R. 1971 Cal. 331.
779 he latter for the misfortune. Courts
cannot help cover up the Executive's drowsy default or half-hearted help in
making the socioconomic conspectus available.
The West Bengal Premises Tenancy Act, 1956
(Act XII of 956) (for short, referred to as the basic Act) clamped down several
restrictions on ejectment of tenants by landlords from buildings, the policy
behind it being alleviation of the lot of the weaker segment of the urban
community without their own homes in the context of the scarcity of
accommodation and the colossal science conomic upheaval which would follow if
unbridled evictions were allowed. The temptation to evict or rack-rent under
scarcity conditions is an irresistible evil in our economic order and it is an
all India phenomenon that the social conscience of the State Legislatures has
responded to this large scale threat by effective control measures. Indeed, for
decades now, every State in India has on, the statute book rent control law
and, what is more pertinent to the present case, tactics of circumvention have
compelled the enactment of additional safeguards from time to time by vigilant
statutory measures.
West Bengal, a populous State, with an
overcrowded city choked by the largest human congregation in the country, enacted
the basic Act whereby the plenary right of landlords to recover possession of
their buildings was shackled in many ways. Industrial growth and other factors
induced demographic congestion such as was witnessed in the urban areas of that
State. Consequently, the legislature, was faced with a fresh danger in the
shape of ingenious transfers of ownership of buildings by indigenous but
indigent landlords and the transferees resorting to eviction on a large scale
equipped as they were with better financial muscles and motivated as they were
by hope of speculative returns from their investments oil eviction. Presumably,
the phenomenal increase of the menance of eviction by the new species of
transferee-owners of building was countered by a legislative measure-the West
Bengal Premises Tenancy (Second Amendment) Act, 1969 (Act XXXIV of 1959)
(hereinafter referred to as the amendment Act). By this legislation the new
class of transferee landlords was subject to a stringent trammel viz.. that
they should not sue for eviction within three years of the date of transfer (We
are not immediately concerned here with certain other changes effected by the
Amendment Act). The social objective and the practical effect of this fetter
will be con Court has upheldthis provision which is now contained in s. 13(3A)
sidered briefly the little later.
Suffice it to say at this stage the High of
the basic Act.
However , while holding the provision
substantial intra vires the Court has invalidated the giving effect to the
provision to pending suits and appeals. Such limited retrospectivity had been
incorporated by s. 13 of the amending Act and, if the law were only prospective
the landlords in the two cases who had initiated their litigation several years
prior to the enactment of the Amendment Act would be free from the three year
interdict and the other extra restrictions. Once the embargo is out of their
way, the decree-, for eviction they have secured must stand. On tile contrary,
if the restriction on eviction by the transferee landlords were to operate on
780 pending litigation the appellants-tenants are immune to eviction in the
current proceedings as they now stand. Thus the short constitutional issue is
as to whether s. 13(3A) of the basic Act to the extent it applies to pending litigation
on the strength of s. 13 of the Amending Act is violative of Arts. 14 and
19(1)(f) of the Constitution, weapons relied upon for the attack before the
High Court, and here. We will proceed to consider the constitutional
vulnerability of this limb of the protective legislation. By way of
anticipating our conclusion we may also pose the problem whether ss. 1 3 and 4
of the Amendment Act can be validly implemented vis-a-vis pending actions in
any other just manner which will preserve the additional protection, minimise
multiplicity of litigation and make law and justice bedfellows in the
&hanged statutory circumstances.
Some background observations to appreciate
the contest in court are necessary. No social realist will deny the frightful
dimensions of the problem of homeless families and precarious tenancies; and if
the Directive Principles of State Policy are not to be dismissed by the masses
as a 'teasing illusion and promise of unreality', curtailment, in public
interest, of such extreme rights of the landlord as are 'red in tooth and claw'
is a constitutional compulsion.
The Court, informed by this sore economic
situation and reinforced by the initial presumption of constitutionality,
hesitates to strike a socially beneficial statute dead, leading to escalation
of the mischief to suppress which the House legislated-unless, of course, a
plain breach of the fundamental right of the citizen is manifest.
The perspective of the amending Act is
sketched by the High Court in lurid language :
"The scarcity of accommodation is a
burning problem, not only of the State of West Bengal but of the other States
as well. Keeping pace with the needs of the gradually swelling population of
West Bengal, new buildings have not been built owing to abnormal high price of land
and materials. A large majority of the people of West Bengal live in those
premises at the mercy of the landlords." The explosive import of
neglecting such a distressing urban development reasonably obliges the State to
impose drastic restrictions on landlords' right to property. And when
circumvention of wholesome legal inhibitions are practised on a large scale the
new challenge is met by clothing the law with more effective amount and that is
the rationale of the Amendment Act. The learned Judges rightly refer to the
legislative proceedings, notorious common knowledge and other relevant factors
properly brought to their ken. The 'sound-proof theory' of ignoring voices from
parliamentary debates, once sanctified by British tradition, has been replaced
by the more legally realistic and socially responsible canon of listening to
the legislative authors when their artifact is being interpreted We agree with
the High Court when it observes :
"Proceedings of legislature can be
referred to for the limited purpose of ascertaining the conditions, prevailing
at 781 or about the time of the enactment in question, which actuated the
sponsor of the bill to introduce the same and the extent and urgency of the
evil, sought to be remedied.
In the Statement of Objects and Reasons of
the West Bengal Premises Tenancy (Second Amendment) Bill, 1969, it is stated
that it has been consider necessary that some more reliefs shouldbe given to
the tenants against eviction. It is found from the speech of the Minister at
the time of introducing the Bill in the legislature, that the problems of
tenants are many : there are landlords of different kinds : there is one
class-original owners who are the old inhabitants of the city : these
owner-landlords are Dot affluent: they solely depend upon the rents received
from the tenants. It has been ascertained from experience that two of the,
grounds of eviction, namely, of the landlords and for the purpose of building
and rebuilding, have been misused by the landlords. In the city of Calcutta and
other towns, there are millions of tenants who are left at the mercy of the
landlords. In this background and after taking into account similar provisions
in other States, it has been decided that some restrictions ought to have been
imposed upon transferee-landlords prohibiting them from bringing ejectment
suits against the tenants within three years from their purchase. On the above
two grounds and for that purpose, the said classification has been made."
The conclusion of the Court, crystellised in the following words, commends
itself to us :
"Taking an overall view of the various
considerations, the statement of, the Minister, the objects of the Bill,
matters of common knowledge and state of facts, existing at the time of the
legislation, it may be well conceived that underlying policy and objects of the
amended provision is to give more protection to the tenants against eviction
and the classification of landlords into ownerlandlords and transfereelandlords
is based upon a rational and intelligible differentia and we hold
accordingly." Proceeding to examine the limited attack on s. 13(3A) of the
basic Act read with s. 13 of the Amending Act, we have to remember die comity
of constitutional instrumentalities and raise the presumption that the legislature
understands and appreciates the needs of the people and is largely aware of the
frontiers of and limitations upon its power. (See: The State of Bombay v. R. M.
D. Chamar-baguwala(1) and Shri Ram Krishna Dalmia v. Shri Justice S. R.
Tendolkar & Others(2).
Some Courts have gone, to the extent of
holding that "there is a presumption in favour of constitutionality, and a
law will not be declared unconstitutional unless the case is so clear as to be
free from doubt; and 'to doubt the constitutionality of a law is to resolve it
in, favour of its validity."(3) Indeed, the Legis(1) [1957] S.C.R. 874.
(2) [1959] S.C.R. 279.
(3) Constitutional law of India by H. M.
Seervai-p 54 vol.1.
782 lature owes it to the Court to make like
respectful presumptions. We therefore view the provision impugned through a
socially constructive, not legally captious, microscope to discover glaring
unconstitutional infirmity, if any, and not chase every chance possibility of
speculative, thought which may vitiate the law. Stray misfortunes when laws
affecting large chunks of the community are enacted are inevitable and the
respondents before us may perhaps belong to that category. Social legislation
without tears, affecting vested rights, is impossible. Statutory construction
has a benignant sensitivity and we are satisfied the High Court, in
substantially upholding the Amendment Act, has done right, but in striking down
the retrospective portion of the section has stumbled into a specious error.
It is helpful to reproduce the relevant
portion of s. 13 of the basic Act in its unamended state and the amendments
dovetailed into it by the 1969 Act, The so-called 'retrospectivity' of this
provision has been anathematised by the respondent-landlords and annulled by
the High Court :
"13(1) Notwithstanding anything to the
contrary in any other law, no order or decree for the recovery of possession of
any premises shall be made by any Court in favour of the landlord against a
tenant except on one or more of the following grounds, namely:unamended cl. (f)
: where the premises are reasonably required by the landlord either for
purposes of building or rebuilding or for making thereto substantial additions
or alterations or for his own occupation if he is the owner or for the
occupation of any person for whose benefit the premises are held;
cls. (f) and (ff) substituted therefor(f)subject
to the provisions of sub-section (3A), and section 18A, where the premises are
reasonably required by the landlord for purposes of building or re-building or for
making thereto substantial additions or alterations and such building or
rebuilding or additions or alterations cannot he carried out without the
premises being vacated, (ff) subject to the provisions of subsection (3A),
where the premises are reasonably required by the landlord for his own
occupation if he is the owner or for the occupation of any person for whose
benefit the premises are held and the landlord or such person is not in
possession of any reasonably suitable accommodation, Sub-s. (3A) newly
introduced.
13(3A) Where a landlord has acquired his
interest in the premises by transfer, no suit for the recovery of possession of
the premises on any of the grounds mentioned in clause (f) or clause (ff) of
sub-section (1) shall be insti78 3 tuted by the landlord before the expiration
of a period of three years from the date of his acquisition of such-interest :
Provided that a suit for the recovery of the
possession of the premises may be instituted on the ground mentioned in clause
(f) of subsection (1) before the expiration of the said period of three years
if the Controller, on the application of the landlord and after giving the
tenant an opportunity of being beard, permits, by order, the institution of the
suit on the ground that the building or rebuilding, or the additions or
alteration, as the case may be, are necessary to make the premises safe for
human habitation." Once the substantive restriction super-added by s.
13(3A) is held valid, we have to focus attention only on the extension of the
new ban to pending proceedings. That legislative competence to enact
retroactively exists is trite law and we have only to test its validity on the
touchstone of Arts. 14 and 19 (1) (f) pressed into service before us.
Law is a social science and constitutionality
turns not on abstract principles or rigid legal canons but concrete realities
and given conditions; for the rule of law stems from the rule of life. We
emphasize this facet of sociological jurisprudence only because the High Court
has struck down s. 13 of the Amendment Act on surmises, possibilities and may
be rather than on study of actualities and proof of the nature, number and age
of pending litigations caught in the net of the retrospective clause. Judges
act not by hunch but on hard facts properly brought on record and sufficiently
strong to rebuff the initial presumption of constitutionality of legislation.
Nor is the Court a third Chamber of the House to weigh whether it should
legislate retrospectively or draft the clause differently. We find no
foundation for the large assumptions made by the High Court and duly repeated
before us by counsel that there may be cases of ejectment instituted prior to
1956 or that a number of suits and decrees perhaps decades old will unjustly be
nullified by the previous operation of the new ban.
Recondite instances and casual hardships
cannot deflect constitutional construction of social legislation, if the main
thrust of the statute relates to a real social evil of dimensions deserving to
be antidoted by antedated legislative remedy.
In the present case, indubitably the State
was faced with a new, insidious and considerable situation of exploitation,
undermining the security of tenancy conferred by the basic Act. A large number
of original landowners living in their own home could not, under the basic Act,
claim recovery of possession, being occupants of their own houses. Likewise,
they could not urge the ground of recovery for rebuilding, not being
financially able to invest on such a costly venture. They had to look up to
modest old-time rentals as the only source of return and lest the penurious
tenantry desperately inhabiting little tenements be forced to pay extortionate
rents the rent control law of 1956 froze the rates at the 1940 level with
gentle increases as provided therein. However, for now buildings to be
constructed 784 special incentive provision was made by deeming the contract
rent as fair rent, thus ensuring a high return on building investment. The
social upshot of this scheme was that the old landlords found their ownership a
poor return investment, saw a new class of wealthier investors streaming into
cities and towns ready to buy the premises evict old tenants, re-let on
rack-rents or re-build and reap a rich return. They had no buildings of their
own and could prove plans to rebuild, thus disarming the non evictability
provision of s. 13 of the basic Act. The transferees could thus get decrees for
eviction under the basic Act.
Naturally, transfers of buildings to this
somewhat speculating class increased and the spectacle of eviction litigation'
or potential eviction proceedings was projected on the urban scene. The
Legislature promptly reacted by the Amendment Act to rescue the lessees by
clamping down new restrictions by way of s. 13 (3A). A three-year moratorium
was given to the tenants from being hunted out of their homesteads by imposing
a ban on institution of suits for eviction by transferee landlords. This would
both disenchant speculative purchases and provide occupants time to seek
alternative housing. Presumably, these objects inspired the law-makers to
extend the embargo backwards to pending eviction proceedings. Quite
conceivably, the tendency to create a transferee class of real estate owners
gradually gathered in volume and showed up in rashes of pending actions. When
Government was alerted amending legislation was proposed. Unfortunately, the
State's legal wing has failed to protect, in Court the class for whose benefit
the amending law was made by placing luscent social or statistical materials on
these aspect-.. As earlier stated by us, Government have a duty, where social
legislation to protect the weak are challenged, to exhibit the same activism in
the Halls of Court as in the Houses of Legislature. Failure in the former duty
can be as bad as not promulgating the law. Not an elucidatory affidavit by the
State nor even the Minister's explanatory speech has been filed in this Court.
We make these observations because of the handicaps we have faced and the
little help on facts the State has given to sustain the legislation.
The Calcutta High court has upheld the vires
of sub-s. (3A) but invalidated its application to pending litigation. So the
short issue is whether this projection into the past of the otherwise
reasonable restriction on the right of eviction arbitrary, irrational, ultra
vires ? If yes, the lethal sting of Arts. 14 and 19(1) (f) will deaden s. 13 of
the Amendment Act. And the High Court has held so on ,he latter Article.
The prospective validity of the restriction
under Arts. 14 and 19(1) (f), the High Court thinks, is vindicated by sound
classification and sanctioned reasonably by the interest of the general public.
Having regard to the policy of the legislation, the classification of landlords
into two classes of owner-landlords and transferee-landlords and the imposition
of an embargo on the latter minacious class against bringing eviction suits
within three years of purchase passes the dual tests of reasonable
classification and the differentia having a rational nexus with the statutory
object. Therefore, the High Court had no hesitation-and we totally concur-that
the provision is 78 5 impregnable. The controversy rages round giving effect to
these stringent restraints newly enacted on earlier legal actions. This, it is
contended, is a horrendous invasion of property right,; and unjust anteriority
which hits innocent plaintiffs whose, purchases were beyond three years. Before
us respondents' counsel have contended that Art. 14 is violated. by s. 3 read
with s. 4 of the Amendment Act although the high Court has negatived this
submission thus :
"We have carefully considered the
arguments advanced by the learned counsel and we are of the Opinion that the
retrospective operation of sub-section (3A) on pending suits and appeals does
not offend Article 14 of the Constitution." Since the argument, dressed,
differently, has been urged before us again we will briefly deal with it,
agreeing as we do with the High Court. Plaintiffs whose transfers are twenty
years ago or two years before the Act, are lugged together and subjected to the
same ban if their suits were instituted within three years of the transfer.
This blanket ban regardless of the varying periods which have elapsed after the
transfers and before the Act was passed was unequal treatment or rather harshly
equal subjection to restriction of plainly unequally situated transferees.
There is seeming attractiveness in this
presentation. But Courts are concerned not how best to hammer out equal justice
but to oversee whether the classification is without rational basis unrelated
to the object of the Act. That is why we are confined to check whether the
reasoning on this aspect adopted by the High Court is not tenable. We may or
may not disagree with the wisdom of the Legislature in the grouping adopted or
hold views about fairer ways of treatment. But our powers are judicial, not
legislative and arbitrariness and irrationality are not writ large in the
method of differentiation the legislature has here chosen.
In the words of A. K. Mukuherji J :
"In the instant case, suits of the
affected transferee landlords may be regarded as a subclass, within a class
and, if within the said sub-class, the suits are not differently treated, they
will not be hit by Article 14.
The persons affected are transferee-landlords
who instituted their suits within three years of their purchase and they form a
separate class and, among the suits of that 'affected class', there is no
discrimination. The law applied equally with respect to the pending suits with
regard to this affected class." Some hardship is bound to occur
peripherally in any mode of classification and a few hard cases (we have not
been shown whether many have been struck by this pattern of grouping) cannot
guide the Court in upsetting legislative compartmentalisation.
The next attack by the respondents is that
the deprivation of the right to sue is absurdly beyond the object of the Act
when applied to pending cases where the transfers took place more than three
years before the Act. Were we draftsmen of legislation, may be counsel's
submission could have had more potency. But our limited power is to 786 examine
the reasonableness of the restriction, not by substituting our personal notions
but by interfering if the Legislature has gone haywire in unreasonably
hamstringing transferee-landlords by dismissing suits brought long before the
legislative bill was in the womb of time.
In an earlier case this Court observed(1)
"Right at the, threshold we must warn ourselves of the limitations of
judicial power in this jurisdiction. Mr. Justice Stone of the Supreme Court of
the United States has delineated these limitations in United States v. Butter
(297 U.S. 1 56 Sup. Ct. 312 80 Law.
Ed. 477 thus:
The power of courts to declare a statute unconstitutional
is subject to two guiding principles of decision which ought never to be absent
from judicial consciousness. One is that courts ire concerned only with the
power to enact statutes, not with their wisdom. The other is that while
unconstitutional exercise of power by the executive and legislative branches of
the government is subject to judicial restraint, the only check upon our
exercise of power is our own sense of selfrestraint. For the removal of unwise
laws from the statute books appeal lies not to the courts but to the ballot and
to the processes of democratic government." In short, unconstitutionality
and not unwisdom of a legislation is the narrow area of judicial review."
The High Court has assumed that even proceedings started prior to 1956 may be
affected. This, admittedly, is wrong as pre-basic Act suits will be governed by
the, then law as provided in s. 40 and the Amendment Act amends only the 1956
Act. It may also be conceded that in both the appeals before us, thanks to
Indian longevity of litigation, more than three years from the date of transfer
in favour of the plaintiff has passed and thus the spirit of the protection in
that sense is fulfilled. Indeed, counsel for the.
respondents urged that the validation of the
retrospective limb of the law would only drive the parties to fresh suits, thus
promoting multiplicity of suits ruinous to both sides with no social gain.
There is force in this submission.
Its relevance to decide, the constitutional
issue is doubtful but its influence on our ultimate solution in this case, as
will be seen later, is undeniable.
A closeup of the social milieu leading up to
the enactment in 1969 of the Amendment Act is useful to identify the
substantial, mischief the law was intended to overpower.
Did that evil reasonably necessitate, for
effectual implementation of purpose, the extension of the new law to pending
suits and appeals ? How many suits, appeals and second appeals by transferees
within the three-year belt were pending? How long had they been so pending?
Were there only stray eviction cases of long ago and was it feasible or
necessary to (1) Murthy Match Works v. Asst. Collector of Central Excise,
A.T.R. 1974 8.C. 497, 503.
787 draw a line somewhere to prevent
injustice to nonspeculative and old-time buyers of buildings without impairing
the-limited immunity meant for tenants and intended against now realty
investors ? On these facts the State has sat with folded hands and we have been
thrown on our own to scan and sustain or strike down. But here arises the
significance of initial presumption of constitutionality. The High Court has
made short shrift of this plea thus :
"There is nothing on the record to show
that the mischief, sought So be remedied by the amended legislation, was in
existence since 1956. On the other hand, the ministerial speech, referred to
above, rather indicates that the said mischief was of comparatively recent
origin. In this context, the application of the restriction on the omnibus
scale to ill pending suits and appeals would smack of unreasonableness."
Who has the onus to place compelling facts, except in flagrant cases of gross
unreasonableness, to establish excessiveness, or perversity, in the restriction
imposed by the statute? Long ago in Dalmia's Case(1) this Court held that
"there is always a presumption in favour of the constitutionality of an
enactment and the burden is upon him who attacks it to show that there has been
a clear transgression of the constitutional principles"; and 'that it must
be presumed that the legislature understands and correctly appreciates the need
of its own people, that its laws are directed to problems made manifest by
experience and that its discriminations are based on adequate grounds-,"
If nothing is placed on record by the challengers the verdict ordinarily goes
against them.
Moreover, what is the evil corrected by the
Amendment Act? The influx of a transferee class of evictors of tenants and
institution of litigation to eject and rack-rent or re-build to make larger
profits. Apparently, the inflow of such suits must have been swelling slowly
over the years and when the stream became a flood the Legislature rushed with
an amending bill. Had it made the law merely prospective, those who bad, in
numbers, already gone to Court and induced legislative attention would have
escaped the inhibition.
This would defeat the object and so the
application of the additional ban to Pending actions could not be called
unreasonable. To omit to do so would have been unreasonable folly. The question
is whether those cases which were filed several years ago should have been
carved out of the category of transferees hit by the Act ? Where do you draw
the line ? When did the evil assume proportions ? These are best left to
legislative wisdom and not court's commonsense although there may be grievances
for some innocent transferees.
(1) [1959] S.C.R. 279, 297-propositions (b)
and (c).
788 If this be the paradigm of judicial
review of constitutionality, we have to ignore exceptional cases which suffer
misfortune unwittingly. The law is made for the bulk of the community to
produce social justice and isolated instances of unintended injury are
inevitable martyrs for the common good since God Himself has failed to make
perfect laws and perfect justice, Freaks have to be accepted by the victims
rightly or wrongly as forensic fate: Not that it should be so but human
infallibility being unattainable, easily the next best in social justice is to
promote the public weal sacrificing some unmerited private hurt as unfortunate
but unavoidable. It must be conceded that prima facie the two
landlord-respondent's had purchased the buildings in the early sixties and
three time three years or more have now passed since that date. But while
considering constitutionality can we be moved by such accidental instances ?
No. The substantial evil has been substantially met by a broad application of
the new ban to pending proceedings. We see in the Amendment Act no violation of
Art. 19(1) (f) read with 19(5). The same High Court, in a later case Kalyani
Dutt v. Pramila Bala Dassi(1) came to the same conclusion by what it called
'independently considering the question'. We discern nothing substantially
different in the analysis or approach to merit review of our result.
We hold s. 13 of the Amendment Act valid and
repel the vice of unreasonableness discovered in both the reported rulings of
the High Court.
And if reasonable interpretation can avoid
invalidation, it is surely preferable. Here humanist considerations, public
policy and statutory purpose may provide guidelines of construction within
reasonable limits. Section 13 of the Amendment Act reads:
"13. Retrospective effect.-The
amendments made to the said Act by section 4, 7, 8 and 9 of this Act shall have
effect in respect of suits including appeals which are pending at the date of
commencement of this Act." The Court is called upon 'to give effect to s.
4. of this new Act.' Section 4 introduced amendments in s. 13 of the basic Act
which we have set out earlier.
There is no doubt that the purpose of the law
is to interdict, for a spell of three years, institution of suits for eviction
on grounds (f) and (ff) of sub-s. (3A).
Section 13 of the Amending Act makes it
expressly applicable to pending actions, so much so the operation of the prohibition
is not simply prospective as in the Kerala case cited before, us
(Nealakandhayya Fillai v. Sankaran(2).
Section 13, fairly read, directs that the
amendment made by s. 4 shall have effect in respect of suits, including
appeals, pending at the commencement of the Act. We are therefore bound to give
effect to s. 4 in pending actions, regardless of isolated anomalies and
individual hardships.
As earlier noticed, s. 4 has two limbs. It
amends s. 13 of the basic Act by substituting two new clauses (f) and (ff) in
place of the old clause (f) of sub-s. (1) of s. 13 Secondly, it forbids, for a
period of three years from the date of acquisition, suits by new acquirers of
(1) I.L.R. [1972] 2 Cal. 660.
(2) (1961) R.L.T. 755.
789 landlord's interest in premises, for
recovery of possession on any of the grounds mentioned in cl. (f) or cl. (ff)
of sub-S. (1). The result of the= two mandatory provisions has to be clearly
understood. For one thing although the old cl. (f) is substantially similar to
the present cls. f) and (ff), the latter imposes more severe restrictions
protecting the tenants. Much more has to be proved by the landlord now before
he can get eviction than when he was called upon to under the earlier
corresponding provision of the basic Act.
Moreover, the three year prohibition against
institution of the suit is altogether new. It follows, therefore, that on the
present allegations and evidence the landlord may not get a decree, his suit
having been instituted at a time when he could not have foreseen the subsequent
enactment saddling him with new, conditions.
We consider that where two interpretations
are possible that which validates the statute and shortens litigation should be
preferred to the one which invalidates or proliferates it. We are guided by
that consideration in the interpretative process. We are satisfied further that
originally brought in, is defective since it did not contain-and ordinarily
could not-averments complying with the new cls. (f) and (ii) of sub-s. (1) of
S. 13 and we are making it effectively by construing the word 'institute' in a
natural and grammatical way. The suit is really instituted in compliance with
cls. (f) and/or (ff) only when the new pleading is put in.
The bigger roadblock in the way of the
plaintiff is in a pending action lies in the prohibition of the institution of
the suit within three years of the transfer from the landlord. Indeed, such
prohibitions are common in rent control legislation as has been noticed by the
Calcutta High Court and is found even in agrarian reforms laws (vide Malaber
Tenancy Act, as amended by Act VII of 1954, Madras).
Section 13 of the Amendment Act compels the
postponement of the institution of the suit (including appeal) for a period of
three years from the date of the transfer. In both the cases before us, the
suits were instituted within the prohibited period of three years. The argument
therefore is that the suits must be straightaway dismissed, the institution
being invalid. We do not think that this consequence is inevitable. 'To
institute, is 'to begin or commence', in plain English. The question then is
whether the suit can be said to begin on the date it was filed in 1961 or 1964
as the case may be. Here we have to notice a certain nice but real facet of
sub-s. (3A). The prohibition clamped down by sub-s. (3A), carefully read, is on
suits for recovery of possession by transferee landlords 'on any of the grounds
mentioned in cl. (f) or cl. (ff) of subs.(1)'.
Obviously the suits with which we are
concerned are not for recovery on grounds contained in cis. (f) and (ff). They
were based on the repealed cl. (f) of S. 13 of the basic Act. Strictly
speaking, sub-s. (3A) brought in by S. 4 of the Amending Act applies only if
(a) the suit is by a transferee landlord; b) it is for recovery of possession
of premises and (c) the ground for recovery is what is mentioned in cl. (f) and
cl. (ff) of sub-s. (1).
Undoubtedly the third condition is not
fulfilled and therefore sub-s. (3A) is not attracted. This does not mean that
the suit 790 can be proceeded with and decree for recovery passed, because S.
13 of the basic Act contains a broad ban, on eviction in the following words :
"13(1) Notwithstanding anything to the
contrary in any other law, no order or decree for the recovery of possession of
any premises, shall be made by any Court in favour of the landlord against a
tenant except on one or more of the following grounds, namely:(emphasis, ours)
Since the new cls. (f) and (ff) are included by the Amendment Act in s. 13 of
the basic Act and since the suits we are concerned with, as they now stand, do
not seek eviction on those grounds they will have to be dismissed on account of
the omnibus inhibition on recovery of possession contained in S. 13 itself.
A just resolution of this complex situation
was put by us to counsel on both sides and the learned Advocate representing
the State readily agreed that the policy of the legislation and the conditions
in the Amendment Act would be fulfilled if the interpretation we proposed were
to be accepted. We are satisfied that as far as possible courts must avoid
multiplicity of litigation. Any interpretation of a statute which will obviate
purposeless proliferation of litigation, without whittling down the
effectiveness of the protection for the parties sought to be helped by the
legislation, should be preferred to any literal, pendantic, legalistic or
technically correct alternative. On this footing we are prepared to interpret
s. 13 of the Amendment Act and ,give effect to s. 4 of that Act. How do we work
it out ? We do it by directing the-plaintiffs in the two cases to file fresh
pleadings setting out their grounds under cls. (f) and/or (ff)_ of sub-s.(1) if
they so wish. On such pleading being filed we may legitimately bold that the
transferee landlord institutes his suit on grounds mentioned in cls. (f) or
(ff) of sub-s. (1) on that '.ate. It is only when he puts in such a pleading
setting out the specific ground covered by sub-s. (3A) of s. 13 that we can say
he, has begun or instituted a suit for the recovery of possession of the
premises on that ground. Institution of a suit earlier has to be ignored since
that was not based on grounds covered by cls. (f) and/or (ff) and is not
attracted by subs. (3A). He begins proceedings on these new grounds only when
he puts in his pleading setting out these grounds. In spirit and in letter he
institutes his suit for recovery on the new grounds only on the date on which
he puts in his new pleading. We cannot be ritualistic in insisting that a
return of the plaint and a representation thereof incorporating amendments is
the sacred requirement of the law. On the other hand, social justice and the
substance of the matter find fulfillment when the fresh pleadings are put in,
subject of course to the three-year interval between the transfer and the
filing of the additional pleading. Section 13 of the Amendment Act speaks of
suits including appeals.
It thus follows that these fresh pleadings
can be put in by the plaintiff either in the suit, if that is pending. or in
appeal or second appeal, if that is pending. Thereupon, the opposite party.
tenant, will be given fin opportunity to file his written statement and the
Court 'Will dispose of it after giving both sides the right to lead 791
additional evidence. It may certainly, be open to the appellate Court either to
take evidence directly or to call for a finding. Expeditious disposal of
belated litigation will undoubtedly be a consideration with the court in
exercising this discretion. The proviso to sub-s. (3A) can also be complied
with if the plaintiff gets the permission of the Rent Controller in the manner
laid down therein before filing his fresh pleading.
We, are conscious that to shorten litigation
we are straining language to the little extent of interpreting the expression
'institution of the suit' as amounting to filing of fresh pleading. By this
construction we do no violence to language but, on the other hand, promote
public justice and social gain, without in the least imperiling the protection
conferred by the Amendment Act.
Ruinous protraction of litigation, whoever
may temporarily seem to benefit by delay, bankrupts both in the end and
inflicits wounds on society by sterile misuse of money.
Tenant passengers who prolong their expensive
flight on the litigation rocket, are buying tickets for financial crash,
drugged though they be by the seeming blessings of law's delays. Courts, by
interpreting the expression 'institution of suits' cannot authorize
reincarnation, all over again, of litigation for eviction. We save the tenant
by applying it to pending cases and save him also from litigative waste.
This consideration is itself germane, to the
larger concept of justice which it is the duty of Courts to promote. Law finds
its finest hour when it speaks to justice on fair terms. In the present case
our interpretative endeavour has been imbued with this spirit. In the process
of interpretation where alternatives are possible' the man in the law
influences the law in the man may be and the construction on ss. 4 and 13 of
the Amendment Act herein adopted, we admit, appeals to us as more, humane. The
calculus of statutory construction relating to complex problems of the
community cannot be hide-bound by orthodox text-book canons.
An obiter, maybe. More buildings is the real
solution for dwelling shortage; freezing scarcer accommodation relieves for a
little while. Tiger balm is no serious cure for brain turnover We make no more
comments on the need for dynamic housing policies beyond statutory palliatives.
These belong to legislative 'wisdom' and administrative ,activism' and not to
judicial 'constitutionalism'.
It was noticed in the course of arguments
that a later Amending Act of 1970 purporting to give relief to tenants against
whom decrees for eviction bad been passed but dispossession had not ensued, had
been put on the statute book. It is surprising that counsel on either side did
not choose to address us any arguments on the basis of those provisions. We
therefore do not go into the impact of that Act on situations where eviction
has been ordered by Courts.
We therefore allow the appeals with costs but
direct the High Court to dispose of the cases in the light of the directions
and obser792 vations we have made. It will be open to the, Court seised of the
matter to direct, in its discretion, award of costs to be incurred hereafter.
GOSWAMI, J.Civil Appeal No. 1304 of 1973 is
by certificate granted by the Calcutta Hi Court and Civil Appeal No. 2063 of
1973 is by Special Leave of this Court.
The first one arises out of Letters Patent
Appeal No. 14 of 1969 of the Calcutta High Court dismissed on February 3, 1972,
relying upon its earlier decision in Kalyani Dutt vs.
Pramila Bala Dassi since reported in I.L.R.
(1972) 2 Calcutta 660. A preliminary question had arisen in connection with the
aforesaid Letters Patent Appeal along with three other appeals at an earlier
stage with regard to the constitutionality of section 13(3A) of the West Bengal
Premises Tenancy (Second Amendment) Act, 1969 (briefly the Amendment Act). A Division
Bench repelled the contention of the appellants in decision which has since
been reported in A.I.R. (1971) Calcutta 331 (Sailendra Nath Ghosal & Ors.
vs Sm. Ena Dutt & Others). The Division Bench had held that sub-section
(3A) of section 13 in so far as it was retrospective in operation was ultra
vires Article 19(1) (f) of the Constitution on the ground of unreasonableness.
Since, however, the Letters Patent Appeal was
not completely disposed of, the bar of sub-section (3A) was this time pleaded
asserting that Article 19 was not at all attracted to the present case on the
ground that the right of reversion of the landlord, namely, the right to
recover possession of the property from the tenant, is not a right of property
which is a condition precedent to the application of Article 19(1) (f) and
consequently, the question as to the infringement of fundamental right did not
at all rise and that there could not be, any scope for holding that the
provision of sub-section (3A) offended against Article 19(1)(f). This second
contention which was allowed to be raised by the Letters Patent Bench was also
repelled following its earlier decision in Kalyani Dults case (supra) disposed
of on September 7, 1971.
Civil Appeal No. 2063 of 1973 arises out of
the decision of the High Court in Second Appeal No. 1193 of 1972 disposed of on
25th July, 1973 relying upon Sailendra Nath Ghosal's case (supra) which is the
subject matter of appeal in Civil Appeal No. 1304 of 1973.
The history of tortuous litigation in both
the appeals may also be noticed. In Civil Appeal No1304 of 1973 the plaintiff
(respondent herein) purchased the premises in suit on February 16, 1961. She
instituted Title Suit No. 480 of 1961 in the court of Munsif of Sealdah,
District 24-Pargana, for ejectment of the defendant, on July 24, 1961. The suit
was decreed by the Munsif on July 21, 1964, but was dismissed by the lower
appellate court on May 17, 1965. On second appeal at the instance of the
plaintiff, the High Court framed an additional issue and remanded the suit to
ram a finding on the same. On receipt of the finding of the court below, the
learned single Judge of the High Court, dismissed the second appeal and granted
793 leave to a Letters Patent Appeal. That appeal was dismissed on February 3,
1972. The High Court granted certificate to appeal against that decision to
this Court on May 24, 1973, referring to the earlier certificate granted by
that Court in Kalyani Dutt's case (supra). That is how Civil Appeal No. 1304 of
1973 is now before us.
The facts in Civil Appeal No. 2063 of 1973
are these. The property in suit was purchased by the plaintiff (respondent
herein) on February 7, 1964 and the eviction suit No. 76 of 1966 was instituted
in February 1965. The suit was dismissed by the Trial Court on October 11,
1966. On appeal by the plaintiff, the Additional District Judge allowed the
appeal on June 8, 1967, and remanded the suit for disposal after taking
additional evidence. The Munsif thereafter decreed the plaintiff's suit on
December 23, 1968. On appeal by the defendant the Additional District Judge
allowed the same and dismissed the suit on April 8, 1969.
On plaintiff's appeal to the High Court in
Second Appeal No. 968 of 1969, the High Court allowed the same on April 3, 1971
and remanded the suit to the Munsif for retrial. The Munsif again dismissed the
plaintiff's suit on September 13, 1971. On appeal by the plaintiff the
Additional District Judge allowed the same and decreed the suit on April 29,
1972. The High Court on appeal by the defendant dismissed the second Appeal on
July 25, 1973, relying upon Salindra Nath Ghosal's case (supra) disposed of on
January 28, 1971.
The defendant then obtained special leave.
Thus the life of litigation in Civil Appeal No. 1304 of 1973 is now in the
fourteenth year after purchase of the premises by the plaintiff six months
earlier. The second one is a decade old; the property having been purchased
about a year earlier.
Both the appeals were argued together and
will be governed by this common judgment.
The suits in both the appeals are by what has
come to be known as transferee-landlords. They have instituted suits in one
case within six months of the purchase in 1961 and in the other within one year
of the purchase in 1965. During the long pendency of the litigation the West
Bengal Premises Tenancy (Second Amendment) Act was passed which came into force
on November 14, 1969. and section 4, inter-alia, was made applicable to pending
suits including appeals. It amended the West Bengal Premises Tenancy Act, 1956 (West
Bengal Act XII of 1956) (briefly the Original Act). Section 4 of the Amendment
Act introduced the following changes in section 13 of Section 13(1) (f) of the
Original Act stood as follows the Original Act :
"13(1) Notwithstanding anything to the
contrary in any other law, no order or decree for the recovery of possession of
any premises %hall be made by any Court in favour of the landlord against a
tenant except on one or more of the following grounds, namely (f)Where the
premises are reasonably required by the landlord either for purposes of
building or rebuilding; or 4-L346Sup.CI/75 794 for making thereto substantial
additions or alterations or for his own occupation if he is the owner or for
the occupation of any person for whose benefit the premises are held".
After the amendment of section 13 by section
4 of the Amendment Act clause (f) was split up into two clauses (f) and (ff)
which read as under :"(f) Subject to the provisions of sub-section (3A)
and section 18A, where the premises are reasonably required by the landlord for
purposes of building or rebuilding or for making thereto substantial additions
or alterations, and such building or re-building, or additions or alterations.
cannot be carried out Without the premises being vacated;
(ff) Subject to the provisions of sub-section
(3A), where the premises are reasonably required by the landlord for his own
occupation if he is the owner or for the occupation of any person for whose
benefit the premises are held and the landlord or such person is not in
possession of any reasonably suitable accommodation".
In addition, section 4 of the Amendment Act
introduced a new subsection (3A) which reads as follows :"Where a landlord
has acquired his interest in the premises by transfer, no suit for the recovery
of possession of the premises on any of the grounds mentioned in clause (f) or
clause (ff) of sub-section (1) shall be instituted by the landlord before the
expiration of a period of three years from the date of his acquisition of such
interest;
Provided that a suit for the recovery of the
possession of the premises may be instituted on the ground mentioned in clause
(f) of subsection (1) before the expiration of the said period of three years
if the Controller on the application of landlord and after giving the tenant an
opportunity of being heard, permits, by order, the institution of the suit on
the ground that the building or re-building or the additions, or alterations,
as the case may be, are necessary to make the premises safe for human habitation".
It should be noted that the grounds for
ejectment in the earlier sub-section (f) ,ire the same as the new grounds in
clauses (f) and (ff) except for some additional restrictions. The common
grounds for eviction are, broadly speaking, reasonable requirement for the
Purpose of building or rebuilding, etc. [sub-clause (f)] and reasonable
requirement for occupation by the landlord, etc. [sub-clause (ff)]. There is,
therefore, no particular significance to the mention of " grounds" in
clause (f) or clause (ff) of subsection (1) in subsection (3A).
,Section 13 of the Amendment Act which is the
bone of contention grants retrospectivity to section 4 of the Amendment Act
and, therefore, necessarily to sub-section (3A) and section 13(1)(f)(ff). The
grievance centres round retrospectivity of sub-section (3A) and 795 section
13(1)(f) and (ff) made applicable by force of section 13 of the Amendment Act
to suits and appeals pending on the commencement of the Act. It may be in order
first to deal with the question of retrospectivily of sub-section (3A) which is
the principal ground of attack in these appeals.
Section 13 of the Amendment Act provides
that. effect should be given to section 4 of the Amendment Act in pending suits
including appeal on the date of the commencement of the Act.
The suits of the particular category by
transferee landlords, therefore, could be pending on commencement of the
Amendment Act and these may have been instituted several years prior to the
Amendment Act. There may also be appeals pending in different appellate courts
against decrees in such suits. The appeals necessarily have to be understood as
appeals arising out of suits instituted within the three years' ban. The
tenants are now permitted to take objection on the score of contravention of
section 13(3A), before the courts either in a pending suit or in a pending
appeal against decrees in such suits and the point for consideration then would
be whether such a suit was instituted within three years' ban and the appeal
was pending against such a banned suit. When section 13 of the Amendment Act
provides that section 4 therein has to be given effect in pending suits
including appeals, effect has to be given by the courts. Now how will effect be
given to section 13(3A) ? Retrospectively to be given under section 13 of the
Amendment Act to section 4 broadly requires compliance as follows (1) that no
suit for eviction by a transferee-landlord shall be instituted within three
years of his acquisition of the premises;
(2) if eviction is sought on the ground under
section 13(1)(f) of the Amendment Act, an additional restriction is put,
namely, that "such building or rebuilding or additions or alterations
cannot be carried out without the premises being vacated";
(3) if eviction is sought on the ground under
section 13(1)(ff), a further restriction is put upon the right of the landlord
to evict, viz., that "the landlord or such person is not in possession of
any reasonably suitable accommodation".
Under proviso to section 13(3A) a
transferee-landlord can, however, institute a suit within three years' ban
provided he obtains prior permission from me Controller who on an application
by the landlord and after hearing the parties may decide whether permission
should be given or not.
Prime-facie, a suit which had already been
instituted prior to the Amendment Act would not come within the mischief of
section 13(3A) since this sub-section, in terms, prohibits only institution of
suits and does not provide for dismissal of suits already instituted. Similarly
while there is a relaxation in favour of a transferee landlord under the
proviso to obtain permission from the Controller this benefit is out of the way
even in a genuine case where the suit had already 796 been instituted within
three years of purchase and the same or an appeal therefrom is now pending
after the passing of the Amendment Act. In this regard also it appears subsection
(3A) is not intended to be attracted to suits which were already instituted
prior to the Amendment Act. But as will be seen hereafter the above position is
altered by the express provision of section 13 of the Amendment Act whereby it
is intended that the court should give retrospectivity, inter alia, to section
4 of the Amendment Act.
On the terms of only section 13 (3A) it is
difficult to hold that it would bring old sections within the mischief of
section 13 (3A) which imposes a ban expressly on institution of suits within
three years of the acquisition of ownership of the premises subject to the
relaxation contained in the proviso thereto.
This being the correct interpretation of
sub-section (3A), taken by itself, what is the effect of section 13 of the
Amendment Act upon this provision? Section 13 of the Amendment Act in seeking
to give retrospective effect to sub-section (3A) does exactly what sub-section
(3A) by itself contra-indicates.
The first part of section 13(3A) which
provides for a ban against institution of suits for eviction within three years
of acquisition of the premises must be given effect to under section 13 of the
Amendment Act in pending suits and in pending appeals arising out of the
decrees passed in such suits provided the former had been instituted within the
period of the ban. If, therefore, after the Amendment Act it is found in a
pending suit or in a pending appeal that the particular suit was instituted
within the three years' ban the same will have to be dismissed and only in that
way the court will be able to give effect to sub-section (3A).
With regard to the proviso of subsection
(3A), when the ground of eviction is relatable to section 13(1)(f) of the
Amendment Act the court will have to dismiss the suit in absence of the
requisite permission.
That being the practical result of
restrospectivity given to subsection (3A), is that sub-section, in so far as it
is retrospective, violative of Article 19(1)(f) of the Constitution? That takes
us to the object and purpose of the Amendment Act. The Statement of Objects and
Reasons as quoted in Kalyani Dutt's case (supra) is as follows "It has been
considered necessary that some more relief should be given to the tenants
against eviction, that the necessity of tender of rent to the landlord every
time the rent is deposited with the Controller during a continuous period
should be dispensed with, that the interests of the residents of hotels and
lodging houses should be safeguarded and that the penalties for contravention
of some of the provisions of the West Bengal Premises Tenancy Act, 1956, should
be made more stringent".
In the earlier judgment of the High Court
which is also the subject matter of Civil Appeal No. 1304 of 1973 the High
Court referred to the statement of the Minister at the time of piloting of the
Bill in the following words:797 "It is found from the speech of the
Minister at the time of introducing the Bill in the legislature, that the
problems of tenants are many: there is one class-original owners who are the
old inhabitants of the city; these owner-landlords are not affluent; they
solely depend upon the rents received from the tenants. It has been ascertained
from experience that two of the grounds of eviction, namely, requirement of the
premises for own use of the landlords and for the purpose of building and
re-building, have been misused by the landlords. In the city of Calcutta and
other towns, there are millions of tenants who are left at the mercy of the
landlords. In this background and after taking into account similar provisions
in other States, it has been decided that some restrictions ought to have been
imposed upon transferee-landlords prohibiting them from bringing ejectment
suits against the tenants within three years from their purchase".
The High Court also observed further that "there
is nothing on the record to show that the mischief, sought to be remedied by
the amended legislation, was in existence since 1956. On the other hand, the
ministerial speech, referred to above, rather indicates that the said mischief
was of comparatively recent origin".
Again in Kalyani Dutt's case (supra) the High
Court in para 27 observed that "such suits are not many and at the same
time most of them are pending for more than ten years". The materials
relied upon by the High Court stand uncontradicted by any affidavit before US.
On the above materials it is safe to hold
that the main object of the Amendment Actis to counteract the
"recent" mischief of circumvention of theprovisions of the original
Act in order to evict tenants on even bona fide requirements specified under
the law of device of transfer of premises held under the occupation of tenants.
Although the Amendment Act has not completely barred institutions of suits by
transferee-landlords postponement of litigation for a period of three years
from acquisition of the premises was provided for under subsection (3A). This
had a twofold purpose, namely, to enable tenants a reasonable respite to
arrange their affairs and also to discourage speculative acquisitions with an
ulterior motive. This salutary provision for the general body of tenants cannot
be called unreasonable. But the question is whether by applying the provision
to pending suits and appeals has that object been achieved in the interest of
the general body of tenants which would certainly constitute the general public
within the meaning of clause 5 of Article 19? From the fact-,; and
circumstances extra fed above from the two judgments of the High Court. it is
not possible to bold that the interest of the general body of tenants would be
served by application of sub-section (3A) to pending suits and appeals.
If the mischief was of "recent"
origin, there is no reason to overshoot the mark and outstretch the long rope
of the law beyond the 798 requirements of the situation. It is clear that in
trying to include old actions that may be surviving in courts, per chance,
because of laws' proverbial delay, section 13 of the Amendment Act has gone far
in excess of the actual needs of the time and problems and the provisions
thereof cannot be said to impose a reasonable restriction on the right of the
transferee-landlords, albeit a well-defined class, amongst tile landlords, to
hold and enjoy their property in the interest of the general public. Such
transferee-landlords with pending old sections in suits or in appeals are, as
observed by the High Court, not likely to be of a large number and necessarily
so the tenants of such a sub-sec class. It is not in the general interest of
the large body of tenants to impose such restrictions on a few transfreelandlords
of this sub-class subject to unbearable delay in litigation, understandably not
on their own account. If relief in the shape of postponement of a landlord's
suit were the object of sub-section (3A) in giving retrospectivity to it, the
law did not take count of the inevitable long delay that takes place in pending
litigation of this type as a result of man-made laws of procedure in courts
such as has even been clearly demonstrated by the cases at hand. The law that
misses its object cannot justify its existence. Besides, it will be a sterile
relief if tenants have to face a fresh summons next day.
Hard cases will be on both sides of the line.
law contemplates in terms of generality and is not intended to hit a few
individuals by making invidious distinction.
Article 19 of the Constitution confers
protection of rights specified therein belonging to all citizens. Any
individual citizen may complain of encroachment of his rights and freedom
guaranteed under the Article. Law's encroachment upon such rights and freedom
of citizens can survive challenge if it passes the tests laid down in the six
saving clauses of Article 19.
Coming now to article 19(1)(f), with which we
are concerned in these appeals, the said provision confers upon each individual
citizen the right to acquire, hold and dispose of property, This right is
subject to clause (5) which we may read so far as material for our purpose:
"Nothing in sub-clauses (d), (e) and (f)
of the said clause shall .... prevent the State from making any law imposing
reasonable restrictions on the exercise of any of the rights conferred by the
said sub-clauses ....
in the interests of the general public.. . .
.
Even a single citizen may complain against
violation of his fundamental rights under Article 19 (1) (f) and his
vindication of his right may be defeated only if the impugned infringement
brought upon by the law can be considered as a reasonable restriction and the
,aid restriction is also in the interests of the general public.
It is manifest, therefore, under the
Constitution. that an individual's right will have to yield to the common weal
of the general community. That general community may be in broad segments, but
even then must form a class as a whole.
A few individuals cannot take the place of a
class and for the matter of that the general public In the present case the
particular relief contemplated by the Amendment Act is in favour 799 of tenants
in general and the restriction under sub-section (3A) must ,be viewed in that
context. It cannot be said that the legislature in applying sub-section (3A)
restrospectively has achieved that avowed object at all.
The matter would have been different it, in
view of any prevailing conditions, a reasonable date for giving retrospective
effect were fixed under the law in the light of the known mischief. In its.
absence, applicability of the blanket ban to pending suits and appeals cannot
be said to be a reasonable restriction in the interests of the general public.
It may help a few tenants in litigation but will prejudice the right of
transferee-landlords locked up in old and costly litigation. The gain of the
few as opposed to the general public cannot be the touchstone for justifying
reasonableness of the restriction imposed on the rights of the
transferee-landlords in applying subsection (3A) to pending suits and appeals.
In the social combat between the interests of
a few and the general welfare of the community the latter is the clinching
factor to be reckoned and hard cases of a few individuals cannot be assigned a
higher placeand status than they deserve to the detriment of the fundamental
rights of even a single individual.
Therefore, the retrospectivity so far as
sub-section (3A) is concerned with regard to institution of suits made
applicable to pending suits and. appeals is clearly very wide of a reasonable
mark and is, thus, an imposition of an unreasonable restriction on the rights
of the transferee landlords in pending suits which had been instituted prior to
the Amendment Act and in appeals arising therefrom and it is not saved by the
protective clause (5) of Article 19 of the Constitution. Sub-section (3A) so
far as it is retrospective and as such applicable to pending suits including
appeal is ultra vires Article 19 (1)(f) of the Constitution. The provision is
valid only prospectively.
So far as the retrospectivity of section 13(1)(f)
and (ff), the position is entirely different. Clearly further reliefs have been
sought to be given to the tenants as a class by these provisions in the
Amendment Act. These further reliefs are in the general interests of tenants
and can be applied without any difficulty to pending suits including appears.
There is nothing unreasonable about such a retrospectivity in applying these
provisions for the general welfare of tenants in securing for them a safe and
sure tenure as far as practicable untrammelled by inconvenient litigation. It
is well-established that the legislature in enacting laws can legislate
prospectively as well as retrospectively. Section 13(1)(f) and (ff) are,
therefore, not ultra vires Article 19(1) (f) of the Constitution.
With regard to another contention of the
appellants that the right of tile landlords that is affected by sub-section
(3A) is only a mere right to sue and at best a right of reversion and hence it
is not a right to property under Article 19(1)(f) of the Constitution, it is
sufficient to state that the question is covered by two decisions of this Court
in The Commissioner, Hindu Religious Endowments, Madras v. Sri Lakshmindra
Thirtha Swamiar of Sri Shirur Mutt(1) and Swami (1) [1954] S.C.R. 1005 800
Motor Transport (P) Limited and Another v. Sri Sankaraswamigal Butt and
Another(1). The right to own and hold property in order to make an effective
right under the Constitution must include tine right to possession of the
property including the right to evict tenants in accordance with law. The
submission is, therefore, without any force.
The position, therefore, is that in a pending
suit or even in a pending appeal a landlord may be given an opportunity to
adduce evidence to establish such of the new requirements in 13(1) (f) or (ff)
as are relevant to the proceedings. In that case the tenant will have also an
opportunity to produce evidence in rebuttal. If the matter arises in a pending
suit, it will be disposed of by the trial court.
If, however, the matter arises in appeal, it
will be open to the appellate court, in order to shorten the life of
litigation, to remand the matter to the appropriate court to return a finding
on such additional issues as may be framed to meet the requirements of (f)
and/or (ff), as the case may be, under order 41, rule 25, Civil Procedure Code.
In the result these appeals are partly
allowed. The judgment of the High Court with regard to invalidity of subsection
(3A) so far as it is retrospective and applicable to pending suits and appeals
is upheld. The orders dismissing the appeals are, however, set aside and the
appeals are remanded to the High Court for disposal in the light, of the
observations with reference to section 13(1)(f) and/or (f) whichever is
applicable. The landlords may now be given by the High Court an opportunity, if
they so wish, to adduce evidence with regard to such further requirements under
(f) and/or (ff) as may be applicable and the High Court will call for a finding
from the appropriate court in that behalf and thereafter dispose of the appeals
on merits. Since success is shared, there will be no orders as to costs in
these appeals.
ORDER In accordance with the majority
judgment, the appeals are allowed with costs; the cases are remanded to the
High Court, and the High Court is directed to dispose of the case in the light
of the directions and observations made in the majority judgment. It will be
open to the Court seised of the matter to direct, in its discretion, amount of
costs to be incurred hereafter.
P.B.R.
(1) [1963] Supp. 1 S.C.R. 282.
Back