Ashoka
Marketing Ltd. & Anr Vs. Punjab National Bank & Ors [1990] INSC 225 (7 August 1990)
Agrawal, S.C. (J) Agrawal, S.C. (J) Mukharji, Sabyasachi (Cj) Ray,
B.C. (J) Kania, M.H. Saikia, K.N. (J)
CITATION:
1991 AIR 855 1990 SCR (3) 649 1990 SCC (4) 406 JT 1990 (3) 417 1990 SCALE
(2)200
ACT:
Delhi
Rent Control Act, 1958: Sections 14, 22, 50 and 54-Tenant of `Public
Premises'--Tenancy terminated or ex- pires under Public Premises (Eviction of Unauthorised
Occu- pants) Act, 1971--Whether entitled to invoke the statutory protection of
Rent Control Act, 1958.
Public
Premises (Eviction of Unauthorised Occupants) Act, 1971' Sections 2(e), 4(0 and
7(3)--`Public Premises'--Whether includes premises belonging to Nationa- lised
banks--Tenant in such premises--Tenancy expires or is terminated--Whether can
invoke protection of Delhi Rent Control Act, 1958.
HEAD NOTE:
The
appellants/petitioners were tenants in the premises belonging to the respondent
Banks/Life Insurance Corporation of India. Their tenancy had expired or had been terminated by the respondents
and eviction proceedings initiated against them under the provisions of the
Public Premises (Eviction of Unauthorised Occupants) Act, 1971. Writ peti- tions
under Article 226 were filled by the appellants in the High Court challenging
the orders of eviction passed against them, which were dismissed; hence these
appeals. The writ petitioners moved this Court directly under Article 32 of the
Constitution against the notices of termination of tenancy issued to them.
The
Public Premises Act of 1971 was preceded by two enactments the Government
Premises (Eviction) Act 1950, and the Public Premises (eviction of unauthorised
occupants) Act, 1958 which were declared unconstitutional by different High
Courts.
Jagu
Singh v. M. Shaukat Ali, (58 Cal. W.N.
1066); Satish Chander & Anr. v. Delhi Improvement Trust, AIR 1958 Punjab 1; Brigade Commander, Meerut Sub
Area v. Ganga Pra- sad, AIR 1956 All. 507; P.L. Mehar etc. v. D.R. Khanna,
etc., AIR 1971 Delhi 1 and Northern India Caterers Private Ltd. v. State of
Punjab & Anr., [1967] 3 SCR 399.
650
This led to the enactment of the Public Premises Act in 1971. The validity of
this act was upheld by this Court in Hari Singh v. The Military Estate Officer,
[1973] 1 SCR 515.
Before
this Court, the contentions were advanced by the parties mainly on two
questions (i) whether the provisions of the Public Premises Act were applicable
to the Premises belonging to a nationalised bank; and (ii) whether the
provisions of the Public Premises Act override the provi- sions of the Delhi
Rent Control Act.
In
regard to the applicability of the Public Premises act, it was inter alia
contended that the premises belonging to a nationalised bank or insurance
company did not fall within the ambit of the definition of 'Public Premises'
contained in Section 2(e) of the Public Premises Act for the reason that the nationalised
bank was not a company as defined in Section 3 of the Companies Act, 1956 and
it was also not a corporation established by or under a Central Act. On the
other hand, it was contended that the respond- ents being nationalised bank,
was a corporation established by a Central Act, viz., the Bank Nationalisation
Act, and the premises belonging to a nationalised bank were 'public premises' under
section 2(e)(2)(ii) of the Public Premises Act.
In
regard to the second question, each side claimed that the enactment relied upon
by it was a special statute and the other enactment was general, and also
invoked the not obstante clause contained in the enactment relied upon. In this
connection, it was argued on behalf of the respondents that the Public Premises
Act having been enacted by Parlia- ment in exercise of legislative power under
Article 246(1) of the Constitution in respect of matters enumerated in the
Union List would ipso-facto override the provisions of the Rent Control Act
enacted in exercise of the legislative powers under Article 246(4) in respect
of matters enumerated in the concurrent list.
Dismissing
the appeals and the writ petition, this Court,
HELD:
(1) The provisions of the Public Premises Act, to the extent they cover
premises failing within the ambit of the Rent Control Act, override the
provisions of the Rent Control Act, and a person in unauthorised occupation of
public premises under Section 2(e) of the Act cannot invoke the protection of
the Rent Control Act. [694D-E] (2) After the second world war there has been
develop- ment of a new pattern of public corporation in England as an
instrument of plan- 651 ning in the mixed economy. The general characteristics
of such a public corporation is that it is normally created by a special
statute; it has no shares and no share holders, either private or public, and
its share holder, in the symbolic sense, is the nation represented through
Government and Parliament; and it has the legal status of a corporate body with
independent legal personality. There has been a similar growth of this type of
public corporation in other.
countries.
This trend is also evident in our country. since Independence and a number of such public corporations have been
constituted by Acts of Parliament. [668A-C] (3) The expression 'Corporation' in
Section 2(e)(2)(ii) of the Public Premises Act would include public
corporations of the new pattern constituted under the Central Acts where- in
the entire paid-up capital vests in the Central Govern- ment. [670G] S.S. Dhanoa
v. Municipal Corporation, Delhi, [1981]
3 SCR 864, distinguished.
(4) In
order to constitute a corporation it is not necessary that there should be
shareholders or members and that in the new pattern of public corporation that
has developed there are no shareholders or members. [671G] Bank of New South
Wales & Ors. v. The Common-wealth, [1948] 76 CLR 1 and R.C. Cooper v. Union
of India, [1970] 3 SCR 530, referred to.
Oriental
Bank of Commerce v. Delhi Development Authori- ty, [1985] 55 Company Cases 81,
overruled.
(5)
Provisions of the Banks Nationalisation Act show that the nationalised Bank has
been constituted as a dis- tinct juristic person by the Act and it is owned by
the Central Government. They further indicate that the nationa- lised bank has
all the attributes of the new pattern of public corporation. [667B]
(6)
The object of the legislation in enlarging the definition of 'public premises'
in Section 2(e) of the Public Premises Act is to make available the machinery
of the Act for evicting unauthorised occupants not only from the premises
belonging to the Central Government but also from premises belonging to
Companies, Corporation and statu- tory bodies in which the Central Government
has a substan- tial interest. [670D-E] 652
(7)
Under Section 2(e)(2)(i) premises belonging to a company incorporated under the
Companies Act, 1956, in which not less than fifty one percent of the paid-up
capital is held by the Central Government, are to be treated as public
enterprises. It could not be the intention of Parliament that premises
belonging to public corporations whose entire paid-up capital vests in the
Central Government and who are the instrumentalities of State would be excluded
from the ambit of the definition of 'public premises'. [670E-G]
(8)
Keeping in view the provisions of the Banks Nation- alisation Act the nationalised
bank is a corporation estab- lished by a Central Act and it is owned and
controlled by the Central Government. The premises belonging to a nationa- lised
bank are public premises under Section 2(e)(2)(ii) of the Public Premises Act.
[671 H; 672A]
(9)
There is no warrant for confining the scope of the definition of 'public
premises' contained in section 2(e) to premises used for residential purposes
only and to exclude premises used for commercial purposes from its ambit.
[672D] Hari Singh v. Military Estate Officer, [1973] 1 SCR 515, referred to.
(10)
No distinction can be made between premises used for residential purposes and
premises used for commercial purposes in the matter of eviction of unauthorised
occupants of public premises and the consideration which necessitate providing a
speedy machinery for eviction of persons in unauthorised occupation of public
premises apply equally to both the types of public premises. [673B-C]
(11)
The definition of the expression 'unauthorised occupation' contained in Section
2(g) of the Public Premises Act is in two parts. The second part of the
definition is inclusive in nature and expressly covers continuance in
occupation by any person of the public premises after the authority (whether by
way of grant or any other mode of transfer) under which he was allowed to
occupy the premises has expired or has been determined for any reason whatsoev-
er. The words "whether by way of grant or any other mode of transfer"
in this part of the definition are wide in ampli- tude and would cover a lease
because lease is a mode of transfer under the Transfer of Property Act. [673F;
G-H; 674B] Brigadier K.K. Verma v. Union of India, AIR 1954 Bom 358,
distinguished.
653 Lallu
Yeshwant Singh v. Rao Jagdish Singh & Ors., [1968] 2 SCR 203, and Express
Newspapers Pvt. Ltd. & Ors. v. Union
of India & Ors., [1985] Suppl. 3 SCR 302, referred to.
(12)
It is true that there is no requirement in the Public Premises Act that the
Estate Officer must be a person well versed in law. But, that, by itself,
cannot be a ground for excluding from the ambit of the said Act premises in unauthorised
occupation of persons who obtained possession of the said premises under a
lease when the Public Premises Act and the Rules framed thereunder provide for
a right of appeal of the District Judge against an order of the Estate Officer.
which shows that the final order that is passed is by a judicial officer.
[675F-H] Maganlal Chhagganlal (P) Ltd. v. Municipal Corporation of Greater
Bombay & Ors., [1975] 1 SCR 1, referred to.
(13)
As regards rent control legislations enacted by the State legislatures, the
position is well settled that such legislation fail within the ambit of entries
6, 7 and 13 of List III of the Seventh Schedule to the Constitution. [682E] Indu
Bhushan Bose v. Rama Sundari Devi & Anr., [1970] 1 SCR 443; V. Dhanpal Chettiar's
v. Yesodai Ammal, [1980] 1 SCR 334; Jai Singh Jairam Tyagi Etc. v. Mamanchand Ratilal
Agarwal & Ors., [1980] 3 SCR 224; Accountant and Secretari- al Services
Pvt. Ltd. & Anr. v. Union of India & Ors., [1988] 4 SCC
324, referred to.
(14)
The Rent Control Act has been enacted by Parliament in relation to the Union
Territory of Delhi in exercise of the legislative power conferred under Article
246(4) of the Constitution which empowers Parliament to make laws with respect
to any matter for any part of the territory of India not included in a State
notwithstanding that such matter is a matter enumerated in the State List.
[682G]
(15)
The Public Premises Act deals with Government property as well as property
belonging to other legal enti- ties mentioned in clauses (2) and (3) of Section
2(e) of the Public Premises Act. In so far as it relates to eviction of unauthorised
occupants from premises belonging to or taken on lease or requisitioned by or
on behalf of the Central Government, the Public Premises Act would fail within
entry 32 of List I being law with respect to a property of the Union. The property belonging to the various legal
entities mentioned in clauses (2) and (3) of Section 2(e) of the Public
Premises Act cannot be regarded as property of 654 the Union and the Public
Premises Act cannot be held to have been enacted under entry 32 of List I in
respect of the said properties. In so far as it deals with a lessee or licensee
of premises other than premises belonging to the Central Govt; the Public
Premises Act has been enacted in exercising the legislative power in respect of
matters enumerated in the concurrent list. [682H; 683A-C]
(16)
Both the statutes, viz. the Public Premises Act and the Rent Control Act, have
been enacted by the same legisla- ture, Parliament, in exercise of the
legislative powers in respect of the matters enumerated in the Concurrent List.
[684C]
Accountant and Secretarial Services Pvt. Ltd. v. Union of India And Ors., [1988] 4 SCC 324; Smt. Saiyada
Mossarrat v. Hindustan Steel Ltd., [1989] 1 SCC 272 and L.S. Nair v. Hindustan
Steel Ltd., AIR 1980 MP. 106, referred to.
(17)
The Rent Control Act makes a departure from the general law regulating the
relationship of landlord and tenant contained in the Transfer of Property Act
inasmuch as it makes provision for determination of standard rent, it specifies
the grounds on which a landlord can seek the eviction of a tenant, it
prescribes the forum for adjudica- tion of disputes between landlords and
tenants and the procedure which has to be followed in such proceedings. The
Rent Control Act can, therefore, be said to be a special statute regulating the
relationship of landlord and tenant in the Union Territory of Delhi. [686D-F]
(18)
The Public Premises Act is also a special statute relating to eviction of unauthorised
occupants from public premises. [689E] Jain Ink Manufacturing Company v. Life
Insurance Corpo- ration of India & Anr., [1981] 1 SCR 498, referred to.
(19)
Both the enactments, namely, the Rent Control Act and the Public Premises Act,
are special statutes in rela- tion to the matters dealt with therein.
Therefore, the exception contained in the principle that a subsequent general
law cannot derogate from an earlier special law cannot be invoked and in accordance
with the principle that the later laws abrogate earlier contrary laws, the
Public Premises Act must prevail over the Rent Control Act. [686H; 687A] J.K.
Cotton Spinning & Weaving Mills Co. Ltd. v. The State of Uttar Pradesh,
[1961] 3 SCR 185; U.P. State Elec- tricity Board v. Hari 655 Shankar Jain,
[1979] 1 SCR 355 and Life Insurance Corpora- tion v. D.J. Bahadur, [1981] 1 SCR
1083, referred to.
(20)
In the case of inconsistency between the provisions of two enactments, both of
which can be regarded as Special in nature. the conflict has to be resolved by
reference to the purpose and policy underlying the two enactments and the clear
intendment conveyed by the language of the relevant provisions therein. [688G] Shri
Ram Narain v. The Simla Banking and Industrial Co. Ltd., [1956] SCR 603; Kumaon
Motor Owners' Union Ltd. v. The State of Uttar Pradesh, [1966] 2 SCR 121 and Sarwan Singh v. Kasturi Lal, [1977] 2
SCR 421, referred to.
(21)
Keeping in view the object and purpose underlying both the enactments viz., the
Rent Control Act and the Public Premises Act, the provisions of the Public
Premises have to be construed as overriding the provisions contained in the
Rent Control Act. [690H] The Parliament was aware of the non obstante clauses
contained in Section 14 and 22 and the provisions contained in Sections 50 and
54 of the Rent Control Act when it enact- ed the Public Premises Act containing
a specific provision in Section 15 barring jurisdiction of all courts (which
would include the Rent Controller under the Rent Control Act). This indicates
that Parliament intended that the provisions of the Public Premises Act would
prevail over the provisions of the Rent Control Act inspite of the above
mentioned provisions contained in the Rent Control Act. [691A-B]
(23)
The scope of the provisions of the Public Premises Act cannot be cut down on
the basis of an apprehension that the corporations may be induced to earn
profits by purchas- ing property in possession of tenants at a low price and
after buying such property evict the tenants after terminat- ing their tenancy
and thereafter sell the said property at a much higher value. Every activity of
a public authority especially in the background of the assumption on which such
authority enjoys immunity from the rigours of the Rent Act, must be informed by
reason and guided by the public inter- est. [693F; E-G] M/s Dwarkadas Marfatia
and Sons v. Board of Trustees of the Port of Bombay, [1989] 3 SCC 293, referred
to.
CIVIL
APPELLATE JURISDICTION: Civil Appeal No. 2368 of 1986 Etc.
656
From the Judgment and Order dated 30.5.1986 of the Delhi High Court in CW No.
1295 of 1986.
K.K. Venugopal,
A.K. Ganguli, Yogeshwar Prasad, P.R. Seetharaman, S.K. Gupta and A.K. Srivastava
for the Appel- lants.
Soli
J. Sorabjee, Attorney General, Kapil Sibbal, Addi- tional Solicitor General.
G.L. Sanghi, S. Ganesh, Mrs. Sushma Suri, EMS
Anam, Atul Namda. Aman Vachher, S.K. Mehta, Kailash Vasdev and S.R. Srivastava
for the Respondents.
The
Judgment of the Court was delivered by S.C. AGRAWAL, J. The common question
which arises for consideration in these appeals, by special leave, and the writ
petition filed under Article 32 of the Constitution is, whether a person who
was inducted as a tenant in premises, which are public premises for the purpose
of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971
(hereinafter referred to as the 'Public Premises Act'), and whose tenancy has
expired or has been terminated, can be evicted from the said premises as being
a person in unautho- rised-occupation of the premises under the provisions of
the Public Premises Act and whether such a person can invoke the protection of
the Delhi Rent Control Act, 1958 (hereinafter referred to as the 'Rent Control
Act'). In short, the ques- tion is, whether the provisions of the Public
Premises Act would override the provisions of the Rent Control Act in relation
to premises which fall within the ambit of both the enactments.
Civil
Appeals Nos. 2368 and 2369 of 1986 relate to the premises which are part of a
building situated at 5 Parlia- ment Street, New Delhi. The said building
originally be- longed to Punjab National Bank Ltd., a banking company.
Ashoka
Marketing Ltd. (Appellate No. 1 in Civil Appeal No. 2368 of 1986) and M/s Sahu
Jain Services Ltd. (Appellant No. 1 in Civil Appeal No. 2369 of 1986) were
tenants of premises located in the said building since July 1st, 1958. As a result of the enactment of
the Banking Companies (Acquisi- tion and Transfer of Undertakings) Act. 1970
(hereinafter referred to as the 'Banks Nationalisation Act'), the under- taking
of the Punjab National Bank Ltd., was transferred and vested in Punjab National
Bank a body corporate constituted under the provisions of the said Act and the
aforesaid appellants became the tenants of Punjab National Bank. By notices
dated May 18, 1971 issued under Section 106 of the Transfer of Property Act,
the tenancies of both the appel- lants were terminated by 657 Punjab National
Bank, with effect from, November, 30, 1971.
Thereafter,
the said Bank initiated proceedings under the Rent Control Act against both the
appellants. In those proceedings an objection was raised by the said appellants
that proceedings for eviction under the Rent Control Act were not maintainable
in view of the provisions contained in the Public Premises Act. During the pendency
of the said proceedings under the Rent Control Act, proceedings were initiated
by the Estate Officer against the appellants under the provisions of the Public
Premises Act and while the said proceedings under Public Premises Act were
pending the earlier proceedings initiated under the Rent Control Act were
dismissed by the Additional Rent Controller, Delhi, by orders dated August 6,
1979. In the proceedings, under the Public Premises Act, the Estate Officer
passed orders for eviction against the appellants and the appeals filed by the
appellants against the said orders of the Estate Officer were dismissed by the
Additional District Judge. Delhi. The appellants filed writ petitions under
Article 226 of the Constitution, in the Delhi High Court. The said writ peti- tions
were dismissed by the High Court by orders dated May 30, 1986. Aggrieved by the
said orders of the High Court, the appellants have filed these appeals after
obtaining special leave to appeal.
Civil
Appeal No. 3725 of 1986 relates to an office room in the Allahabad Bank
Building situated at 17, Parliament Street, New Delhi. The said building
belongs to Allahabad Bank, a body corporate constituted under the provisions of
the Banks Nationalisation Act. The said premises were let out to Pt. K.B. Parsai,
the appellant in this appeal, for a period of three years with effect from,
February 1, 1982.
After
the expiry of the said period eviction proceedings under the provisions of the
Public Premises Act were initi- ated to evict the appellant and in those
proceedings the Estate Officer passed an order dated March 29, 1986. The
appellant filed a writ petition under Article 226 of the Constitution, wherein
he challenged the validity of the order passed by the Estate Officer. The said
writ petition was dismissed by the Delhi High Court by order dated August 7,
1986. The appellant has filed this appeal against the said decision of the
Delhi High Court after obtaining Spe- cial Leave to Appeal.
Writ
Petition No. 864 of 1985, relates to premises in the building located at 10, Darya
Ganj, New Delhi. The said building originally belonged to Bharat Insurance
Company Limited, as Insurance Company which was carrying on life insurance
business. M/s Bennett Coleman & Co. Ltd., (peti- tioner No. 1 in the writ
petition) was in occupation of a part of the said property as a tenant under
M/s Bharat 658 Insurance Co. Ltd. since 1948. The life insurance business was nationalised
under the Life Insurance Corporation Act, 1956 whereby the Life Insurance
Corporation was established and the life insurance business carried on by the
various insurance companies, including M/s Bharat Insurance Company Ltd., was nationalised
and vested in the Life Insurance Corporation. As a result petitioner No. 1
became a tenant of the Life Insurance Corporation. The Life Insurance Corpora- tion
gave a notice under Section 106 of the Transfer of Property Act terminating a
tenancy of petitioner No. 1 with effect from, August 31, 1953 and thereafter
proceedings for eviction were initiated against petitioner No. 1 under the
provisions of the Public Premises Act and notices dated December 15, 1984 were
issued by the Estate Officer under Section 4(1) and Section 7(3) of the Public
Premises Act.
Feeling
aggrieved by these notices the petitioners have filed the writ petition.
Before
we proceed to deal with the submissions of the learned counsel for the
appellants in the appeals and for the petitioners in the writ petition
(hereinafter referred to as 'the petitioners') it would be relevant to advert
to the legislative history of Public Premises Act.
The
Public Premises Act was preceded by two such enact- ments. The first enactments
was the Government Premises (Eviction) Act, 1950 (hereinafter referred to as
'the 1950 Act') which was enacted by Parliament to provide for the eviction of
certain persons from Government premises and for certain matters connected
therewith. It was confined, in its application, to premises (a building or a
part of a build- ing) belonging to or taken on lease or requisitioned by the
Central Government and it empowered the competent authority tO evict a person
in unauthorised occupation of such prem- ises after issuing a notice to such
person. The 1950 Act did not define the expression "unauthorised
occupation" and it also did not prescribe the procedure to be followed by
the competent authority before passing the order of eviction.
There
was a provision for appeal to the Central Government against the order of the
competent authority. The 1950 Act was declared as unconstitutional by the
Calcutta High Court (in Jagu Singh v. M. Shaukat Ali, 58 Cal. WN 1066) and by
the Punjab High Court (in Satish Chander & Anr. v. Delhi Im- provement
Trust, Etc., AIR 1958 Punjab 1) on the ground that it imposed unreasonable
restriction on the fight of the citizens to acquire, hold and dispose of
property guaranteed under Article 19(1)(f) of the Constitution, and by the
Allahabad High Court (in Brigade Commander, Meerut Sub Area v. Ganga Prasad,
AIR 1956 All. 507) on the ground that it was violative 659 of the rights to
equality guaranteed under Article 14 of the Constitution.
Thereupon
Parliament enacted the Public Premises (Evic- tion of Unauthorised Occupants)
Act, 1958 (hereinafter referred to as 'the 1958 Act'). In the 1958 Act, the defini-
tion of Public Premises was enlarged to include, in relation to the Union
Territory of Delhi, premises belonging to Municipal Corporation of Delhi, or any municipal committee or
notified area committee and premises belonging to Delhi Development Authority.
In the 1958 Act, the expression "unauthorised occupation" was
defined. It also laid down the procedure to be followed by the Estate Officer
for evicting a person in unauthorised occupation of public premises and it made
provision for filing an appeal against every order of the Estate Officer before
the District Judge or such other Judicial Officer in that district of not less
than ten years standing as the District Judge may designate in that behalf. In Northern India Caterers Private Limited v. The
State of Punjab & Anr., [1967] 3 SCR 399 Section 5 of the Punjab Public
Premises and Land (Eviction and Rent Recovery) Act, 1959 was held to be void by
this Court on the ground that the said provision conferred an additional remedy
over and above the remedy by way of suit and that by providing two alternative
remedies to the Government and in leaving it to the unguided discretion of the
Collector to resort to one or the other and to pick and choose some of those in
occupa- tion of public properties and premises for the application of the more
drastic procedure under Section 5, the said provision was violative of Article
14 of the Constitution.
The
provisions contained in the Punjab Act were similar to those contained in the
1958 Act. Keeping in view the deci- sion of this Court in Northern India
Caterers Private Limit- ed's case (supra), Parliament enacted Public Premises
(Eviction of Unauthorised Occupants) Amendment Act, 1968 whereby the 1958 Act
was amended and Section 10E was intro- duced and a bar was created to the
jurisdiction of civil court to entertain any suit or proceeding in respect of
eviction of any person in unauthorised occupation of any public premises or the
recovery of the arrears of the rent or damages payable under the provisions of
the 1958 Act. The Delhi High Court (in P.L. Mehra etc. v. D.R. Khanna, etc.,
AIR 1971 Delhi 1)held that whole of the 1958 Act was void under Article 15(2)
being violative of the provisions of Article 14 of the Constitution and the
amendment of 1968 was ineffective- This led to the enactment of the Public
Premises Act by Parliament in 1971. It was brought into effect from 16th September, 1958, 660 the date on which the 1958 Act
came into force. The provi- sions of the Public Premises Act are similar to those
con- tained in the 1958 Act. The definition of 'public premises' contained in
Section 2(e) of the Public Premises Act has been widened so as to include
premises belonging to or taken on lease by or on behalf of a company, as
defined in Section 3 of the Companies Act, 1956, in which not less than fifty
one per cent of the paid-up capital is held by the Central Government as well
as premises belonging to or taken on lease by or on behalf of any corporation
(not being a compa- ny, as defined in Section 3 of the Companies Act in 1956,
or a local authority) established by or under a Central Act and owned and
controlled by the Central Government. It contains certain additional
provisions, providing for offences and penalties (Section 11), liability of
heirs and representa- tives (Section 13) recovery of rent etc. as an arrear of
land revenue (Section 14) and bar of jurisdiction of Courts (Section 15). The
validity of the Public Premises Act was upheld by this Court in Hari Singh
& Ors. v. The Military Estate Officer & Anr., [1973] 1 SCR 5 15.
The
Public Premises Act was amended in 1980 by the Public Premises (Eviction of Unauthorised
Occupants) Amend- ment Act, 1980, whereby the definition of 'public premises'
in Section 2(e) was amended to include premises belonging to or taken on lease
by or on behalf of certain autonomous and statutory organisations, viz., any
University established or incorporated by any Central Act, any Institute
incorporated by the Institutes of Technology Act, 1961, any Board of Trustees
constituted under the major Port Trusts Act, 1963, and the Bhakra Management
Board and as well as premises belonging to or taken on lease by any Company
which is subsidiary of a Company as defined in Section 3 of the Companies Act,
1956 in which not less than fifty one per cent of the paid-up capital is held
by the Central Govern- ment. By the said Amending Act of 1980, the total period
taken in eviction proceedings was also sought to be cur- tailed by reducing the
period for showing cause against notice of eviction, the period within which an
unauthorised occupant should vacate the premises after eviction order has been
passed and the period for filing an appeal against the order of an Estate
Officer. By the said Amending Act of 1980 provisions were also made, by
inserting Sections 5A, 5B and 5C, to deal with the squatting or spreading of
goods on or against or in front of any public premises and removal of unauthorised
constructions or encroachments on public prem- ises. The Public Premises Act
was further amended in 1984 by the Public Premises (Eviction of Unauthorised
Occupants) Amendment Act, 1984 whereby certain further amendments were made to
provide for increased penalties and 661 making the offences under the Act cognisable
and to enable the Estate Officers to exercise their powers under the Act
effectively.
As
stated in the preamble, the Public Premises Act has been enacted to provide for
the eviction of unauthorised occupants from public premises and, for certain
incidental matters. In Section 2, various expressions have been de- fined. The
definitions of the following expressions which are of relevance are reproduced
as under:
"(c)
"Premises" means any land or any building or part of a building and
includes-- (i) the garden, grounds and out houses. if any, appertaining to such
building or part of a building, and (ii) any fitting affixed to such building
or part of a building for the more beneficial enjoyment thereof;"
"(e) "Public Premises" means-- (1) any premises belonging to, or
taken on lease or requisi- tioned by, or on behalf of, the Central Government,
and includes any such premises which have been placed by that Government,
whether before or after the commencement of the Public Premises (Eviction of Unauthorised
Occupants) Amend- ment act, 1980 under the control of Secretariat of either
House of Parliament for providing residential accommodation to any member of
the staff of that Secretariat;
(2)
any premises belonging to, or taken on lease by, or on behalf of,-- (i) any
company as defined in Section 3 of the Companies Act, 1956 (1 of 1956) in which
not less than fifty one per cent of the paid-up share capital is held by the
Central Government or any Company which is a subsidiary (within the meaning of
the Act) of the first mentioned company, (ii) any corporation (not being a
company as defined in Section 3 of the Companies Act, 1956 ( 1 of 1956), or a
local authority) established by or under a Central Act and owned or controlled
by the Central Government, 662 (iii) any University established or incorporated
by any Central Act, (iv) any Institute incorporated by the Institutes of Tech- nology
Act, 1961 (59 of 1961);
(v) any
Board of Trustees constituted under the Major Port Trusts Act, 1963 (38 of 1963);
(vi)
the Bhakra Management Board constituted under Section 79 of the Punjab Recoganisation
Act, 1966 (31 of 1966) and that Board as and when renamed as the Bhakra-Beas
Management Board under Sub-section (6) of Section 80 of the Act; and (3) in
relation to the Union Territory of Delhi-- (i) any premises belonging to the
Municipal Corporation of Delhi, or any municipal committee or notified area
committee and (ii) any premises belonging to the Delhi Development Author- ity,
whether such premises are in the possession of, or leased out by the said
Authority." "(g) "Unauthorised Occupation", in relation to
any public premises, means the occupation by any person of the public premises
without authority for such occupation, and includes the continuance by any
person of the public premises after the authority (whether by way of grant or
any other mode of transfer) under which he was allowed to occupy the premises
has expired or has been expired for any reason whatsoever." Section 3
makes provision for appointment by Central Govern- ment of gazetted officer of Government or officers of equal
rank of the statutory authority as Estate Officers. Section 4 relates to issue
of show cause against order of eviction and provides as under:
"(1)
If the Estate Officer is of opinion that any persons are in unauthorised
occupation of any public premises and that they should be evicted, the Estate
Officer shall issue in the manner hereinafter provided a notice in writing
calling 663 upon all persons concerned to show cause why an order of eviction
should not be made.
(2)
The notice shall-- (a) specify the grounds on which the order of eviction is
proposed to be made; and (b) require all persons concerned, that is to say, all
persons who are, or may be, in occupation of, or claim interest in, the public
premises ,-- (i) to show cause, if any, against the proposed order on or before
such date as is specified in the notice, being a date not earlier than seven
days from the date of issue thereof;
and
(ii) to appear before the Estate Officer on the date speci- fied in the notice alongwith
the evidence which they intend to produce in support of the cause shown, and
also for personal hearing, if such hearing is desired.
(3)
The Estate Officer shall cause the notice to be served by having it affixed on
the outer door or some other con- spicuous part of the public premises and in
such other manner as may be prescribed, whereupon the notice shall be deemed to
have been duly given to all persons concerned.
(4)
Where the Estate Officer knows or has reasons to believe that any persons are
in occupation of the public premises, then, without prejudice to the provisions
of subsection (3), he shall cause a copy of the notice to be served on every
such person by post or by delivering or tendering it to that person or in such
other manner as may be prescribed." Section 5 relates to eviction of unauthorised
occupants and provides as under' "(1) If, after considering the cause, if
any, shown by any person in pursuance of a notice under Section 4 and any
evidence produced by him in support of the same and after personal hearing, if
any, given under clause (b) of sub- 664 section (2) of Section 4, the estate
officer is satisfied that occupation of public premises is unauthorised, the
estate officer may make an order of eviction, for reasons to be recorded
therein, directing that the public premises shall be vacated on such date as
may be specified in the order, by all persons who may be in occupation thereof
or any part thereof, and cause a copy of the order to be af- fixed on the outer
door or some other conspicuous part of the public premises.
(2) If
any person refuses or fails to comply with the order of eviction on or before
the date specified in the said order or within fifteen days of the date of its
publication under sub-section (1) whichever is later, the estate officer of any
other officer duly authorised by the estate officer in this behalf may after
the date so specified or after the expiry of the period aforesaid, whichever is
later, evict that person from, and take possession of the public premises and
may, for that purpose, use such force as may be neces- sary." Section 5A
provides for removal of unauthorised construc- tions/structures or fixtures,
cattle or other animal from public premises. Section 5B deals with demolition
of unau- thorised constructions. Section 5C empowers the Estate Officer to seal
unauthorised constructions. Section 6 pro- vides for disposal of property left
on public premises by unauthorised occupants. Section 7 empowers the Estate Offi-
cer to require payment of rent or damages on account of use and occupation of
public premises alongwith interest by the person found in unauthorised
occupation. Section 8 lays down that an Estate Officer shall, for the purpose
of holding any inquiry under the Act, have the same powers as are vested in a
civil court under the Code of Civil Procedure, 1908, when trying to suit in
respect of certain matters, viz. summoning and enforcing the attendance of any
person and examining him on oath, requiring discovery and production of
documents;
and
any other matter which may be prescribed. Section 9 provides for an appeal from
every order of the Estate Offi- cer in respect of any public premises passed
under Sections 5, 5B, 5C and 7 to an appellate officer who shall be a district
judge of the district in which the public premises are situated or such other
judicial officer in the district of not less than ten years' standing as the
district judge may designate in this behalf. It also prescribes the period of
limitation for filing such appeals and also lays down that the appeal shall be
disposed of by the appellate offi- cer as expeditiously as possible. Sections
10 attaches finality to the orders 665 made by an Estate Officer or appellate
officer and provides that the said orders shall not be called in questions in
any original suit application or execution proceeding and no injunction shall
be granted by any court or other authority in respect of any action taken or to
be taken in pursuance of any power conferred by or under the Act. Section 11
provides for offences and penalties and Section 11A lays down mat the offences
under Section 11 would be treated as cognizable offences under the Code of
Criminal Procedure, 1973. Section 15 relates to bar of jurisdiction and it
provides as under:
"No
court shall have jurisdiction to entertain any suit or proceeding in respect
of-- (a) the eviction of any person who is in unauthorised occu- pation of any
such public premises, or (b) the removal of any building, structure of fixture
or goods, cattle or other animal from any public premises under Section 5-A, or
(C) the demolition of any building or other structure made, or ordered to be
made, under Section 5B, or (cc) the sealing of any erection or work or of any
public premises under Section 5-C, (d) the arrears of rent payable under
sub-section (1) of Section 7 or damages payable under sub-section (2), or
interest payable under sub-section (2-A) of that section, (e) the recovery of--
(i) costs of removal of any building, structure or fixture or g.gods. cattle or
other animal under Section 5-A, or (ii) expenses of demolition under Section
5-B, or (iii) costs awarded to the Central Government or statutory authority
under sub-section (5) of Section 9, or (iv) any portion of such rent, damages,
cost of removal, expenses of demolition or costs awarded to the Central
Government or the statutory authority." 666 In exercise of the powers
conferred by Section 18 of the Public Premises Act, the Central Government has
made the Public Premises (Eviction of Unauthorised Occupants) Rule, 1971
(hereinafter referred to as the 'Public Premises Rules'). Rule 5 of said Rules
relates to holding of in- quiries and Rule 9 relates to procedure in appeals.
We
will first deal with the contentions urged by the learned counsel for the
petitioners with regard to the scope of the definition of the expression
'Public Premises' con- tained in Section 2(e) and 'unauthorised occupation',
con- tained in Section 2(g) of the Public Premises Act.
As
mentioned earlier, the appeals relate to premises belonging to nationalised
Banks, viz. Punjab National Bank and Allahabad Bank, constituted under the
provisions of the Banks Nationalisation Act. It has been urged by Shri Yogesh- wer
Prasad, that the premises belonging to a nationalised bank do not fall within
the ambit of the definition of 'Public Premises' contained in Section 2(e) of
the Public Premises Act, for the reason that nationalised bank is not a company
as defined in Section 3 of the Companies Act, 1956 and it is also not a
corporation established by or under a Central Act. The submission of the
learned counsel for the respondent banks is that the nationalised bank is a
corpora- tion established by a Central Act, viz. the Banks Nationali- sation
Act, and the premises belonging to a nationalised bank are 'public premises'
under Section 2(e)(2)(ii) of the Public Premises Act. The question which,
therefore, requires to be considered is whether a nationalised bank is a corpo-
ration established by or under a Central Act and is owned or controlled by the
Central Government.
The nationalised
banks have been established under the Banks Nationalisation Act, wherein the nationalised
banks have been described as 'corresponding new bank'. In sub- section (i) of
Section 3 of the Banks Nationalisation Act, it has been provided that on the
commencement of the said Act, there shall be constituted such corresponding new
banks as are specified in the First Schedule. In subsection (2) of Section 3,
it is laid down that the paid-up capital of every corresponding new bank
constituted under sub-section (1) shall, until any provision is made in this
behalf in any scheme made under Section 9, be equal to the paid-up capital of
the existing bank in relation to which it is the corre- sponding new bank. Sub-section(3)
of Section 3 provides that the entire capital of the new bank shall stand
vested in, and allotted to the Central Government. Sub-section (4) of Section 3
lays down that every corresponding new bank shall be a body corpo- 667 rate
with perpetual succession and a common seal with power, subject to the
provisions of the said Act, to acquire, hold and dispose of property, and to
contract, and may sue and be sued in its name. From the aforesaid provisions
contained in Section 3 of the Banks Nationalisation act it is evident that the nationalised
banks have been established under the provisions of the said Act and the same
are distinct juris- tic persons with perpetual succession and the power to
acquire, hold and dispose of property and to contract and having the right to
sue and be sued in their own name and further that the entire capital of the
said banks is vested in the Central Government, meaning thereby, that the said
banks are owned by the Central Government.
Shri Yogeshwer
Prasad has pointed out that, in view of Section 3(4) of the Banks Nationalisation
Act, the nationa- lised bank is a body corporate and not a corporation and that
there is a distinction between a body corporate and a corporation inasmuch as a
body corporate includes bodies, such as companies, co-operative societies,
etc., which are not corporations. Reliance has been placed in this regard on
the decision of Delhi High Court in Oriental Bank of Com- merce and Another v.
Delhi Development Authority and Anoth- er, [1985] 55 Company Cases 81. We find
no substance in this contention.
In
English law a corporation has been defined as "a body of persons or an
office which is recognised by the law has having a personality which is
distinct from the separate personalities of the members of the body or the
personality of the individual holder for the time being of the office in
question." (See Halsbury's Laws of England, Fourth Edition, Volume 9, Para
1201). Generally speaking, corporations are of two kinds; corporation aggregate
and corporation sole. A corporation aggregate has been described as an
incorporated group of co-existing persons and a corporation sole as an
incorporated series of successive persons, (Salmond on Jurisprudence, 12th
Edition P 308. The distinctive feature of a corporation are that it has the
capacity of continuous existence and succession, notwithstanding changes in its
membership and it possesses the capacity of taking, holding and conveying
property, entering into contracts. suing and being sued, and exercising such
other powers and priviledges conferred on it by law of its creation just as a
natural person may (See S.S. Dhanoa v. Municipal Corporation, Delhi & Ors.,
[1981] 3 SCR 864. Corporations aggregate may be public or private. A public
corporation is a corporation formed for a public purpose e.g. local government authori-
ties, and it is usually incorporated by a public general Act of Parliament. A
private corporation is a corporation formed for profit 668 e.g. a limited company,
and it is usually incorporated under a statutory enactment. After the second
world war there has been development of a new pattern of public corporations in
England as an instrument of planning in the
mixed economy.
The
general characteristics of such a public corporation is that it is normally
created by a special statute; it has no shares and no shareholders either
private or public, and its shareholder, in the symbolic sense, is the nation
represent- ed through Government and Parliament; the responsibility of the
public corporation is to the Government, represented by the competent Minister
and through the Minister to Parlia- ment; the administration of the public
corporation is en- tirely in the hands of a board which is appointed by the
competent Minister; and it has the legal status of a corpo- rate body with
independent legal personality. (See W. Fried- man: The New Public Corporations
and the Law [1947] 12 Mod. LR 234-236.) There is a similar growth of this type
of public corporation in other countries. This trend is also evident in our
country since independence and a number of such public corporations have been
constituted by Acts of Parliament.
The
distinction between such a public corporation and a corporation generally known
in law has been explained in the following observations of Denning L.J., as he
then was:-- "The Transport Act, 1947, brings into being the British
Transport Commission, which is a statutory corporation of a kind comparatively
new to English law. It has many of the qualities which belong to corporations
of other kinds to which we have been accustomed. It has, for instance, defined
powers which it cannot exceed; and it is directed by a group of men whose duty
it is to see that those powers are proper- ly used. It may own property, carry
on business, borrow and lend money, just as any other corporation may do, so
long as it keeps within the bounds which Parliament has set. But the
significant difference in this corporation is that there are no shareholders to
subscribe the capital or to have any voice in its affairs. The money which the
Corporation needs is not raised by the issue of shares but by borrowings and
its borrowing is not served by debentures; but is guaranteed by the Treasury.
If it cannot repay, the loss falls on the Consolidated Fund of the United Kingdom; that is to say, on the taxpayer.
There are no shareholders to elect the direc- tors or to fix their
remuneration. There are no profits to be made or distributed." (Tamfin v.
Hannaford, [1950] 1 KB 18).
669 Reference
has already been made to the provisions of the Banks Nationalisation Act which
show that the nationalised bank has been constituted as a distinct juristic
person by the Act and it is owned by the Central Government. There are other
provisions in the Banks Nationalisation Act which show that the general
superintendence, direction and management of the affairs of the business of the
bank is vested in a Board of Directors constituted by the Central Government
and the Central Government has the power to remove a person from the membership
of the Board of Directors (Section 7(2) & 7(3) and in the discharge of its
functions the Bank is to be guided by such directions in regard to matters of
policy involving public interest as the Central Government may, after
consultation with the Governor of the Reserve Bank, give (Section 8). This
indicates that the nationalised bank has all the attributes of the new pattern
of public corpora- tion.
Merely
because the expression 'body corporate' has-been used in relation to the nationalised
banks in Section 3(4) of the Banks Nationalisation Act and the expression 'corpo-
ration' has not been used, does not mean that the nationa- lised bank is not a
corporation. The expression 'body corpo- rate' is used in legal parlance to
mean a 'public or private corporation' (Black's Law Dictionary p. 159).
Shri Yogeshwer
Prasad has urged that in order to consti- tute a corporation there must exist
persons, i.e. members, composing it, and that this element is missing in the natio-
nalised banks inasmuch as the Banks Natiolisation Act does not provide for any
membership to these banks. This conten- tion is without any merit because, as
noticed earlier, in the new pattern of public corporations which have
developed, there are no shares and no shareholders, either public or private,
and its shareholder, in the symbolic sense, is the nation represented through
Government and Parliament. A similar contention was raised before the High
Court of Australia in the Bank of New South Wales & Ors. v. The
Commonwealth, [1948] 76 C.L.R. 19 in relation to the Common- wealth Bank
established as a body corporate by the Common- wealth Bank Act, 1945. While
rejecting this contention, Latham C.J. has observed:
"The
Commonwealth Parliament has declared that the bank is a corporation and the
Court must on this, as on many previous occasions, accept that the bank (though
it has no corpora- tors) exists as a new kind of juristic person." (p.
227) 670 Similarly Dixon J. has observed:
"Although
the Commonwealth Bank is declared to be a body corporate there are no corporators.
I see no reason to doubt the constitutional power of the Federal Parliament,
for a purpose within its competence, to create a juristic person without
identifying an individual or a group of natural persons with it, as the living
constituent or constituents of the corporation. In other legal systems an
abstraction or even an inanimate physical thing has been made an artificial
person as the object of rights and duties." (p. 36 1) It may also be
mentioned that in R.C. Cooper v. Union of India, [1970] 3 SCR 530 this Court,
while referring to nationalised banks constituted under the provisions of the
Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969,
has treated the nationalised banks as corporations.
While
construing the expression 'corporation' in Section 2(e) (2)(ii) of the Public
Premises Act it cannot be ignored that the object of the legislation in
enlarging the defini- tion of 'public premises' in Section 2(e) is to make
avail- able the machinery of the Act for evicting unauthorised occupants not
only from the premises belonging to the Cen- tral Government but also from
premises belonging to Compa- nies, Corporations and statutory bodies in which
the Central Government has a substantial interest. Under Section 2(e)(2)(i)
premises belonging to a company incorporated under the Companies Act, 1956, in
which not less than fifty one per cent of the paid-up capital is held by the
Central Government, are to be treated as public premises. It could not be the
intention of Parliament that premises belonging to public corporations whose
entire paid-up capital vests in the Central Government and who are the
instrumentalities of State would be excluded from the ambit of the definition
of 'public premises'. In our opinion,. therefore, the expres- sion
'corporation' in Section 2(e)(2)(ii) of the Public Premises Act would include
public corporations of the new pattern constituted under the Central Acts
wherein the entire paid-up capital vests in the Central Government.
Shri Yogeshwere
Prasad has placed reliance on the deci- sion of this Court in S.S. Dhanoa's
case (supra) wherein this Court has considered the question whether the
Co-opera- tive Store Ltd., a cooperative society registered under the Bombay
Co-operative Societies 671 Act, 1925 is a corporation established by or under a
Cen- tral, Provincial or State Act, for the purposes of clause Twelfth of
Section 21 of the Indian Penal Code. This Court has observed that a corporation
established by or under an Act of legislature could only mean a body corporate
which owes its existence and not merely its corporate status to the Act and a
distinction has been drawn between a corpora- tion established by or under an
Act and a body incorporated under an Act. It has been held that the
Co-operative Store Ltd., which is a society registered under the Bombay Co-
operative Societies Act, 1925, is not a statutory body because it is not
created by a statute and that it is a body created by an act of a group of
individuals in accordance with the provisions of a Statute. This decision does
not lend any assistance to the contention of Shri Yogeshwer Prasad.
In
Oriental Bank of Commerce's case (Supra) the over- ruled question for
consideration was, whether the Chairman of a nationalised bank is a public
servant and sanction under Section 197 of Code of Criminal Procedure was neces-
sary to prosecute him. M.L. Jain, J. has held that the nationalised bank is a
body corporate and not a corporation within the meaning of clause Twelfth of
Section 21 I.P.C. and, therefore, the Chairman of the nationalised bank is not
a public servant under Section 21 I.P.C. The learned Judge has further held
that even if the nationalised bank is a corporation, the Chairman of the said
bank is not in the service or pay of the bank and further (in the facts of the
case) it could not be said that the Chairman was acting or purporting to act in
the discharge of official duty. Sachar, J. did not consider it necessary to
deal with the question, as to whether the nationalised bank is a corporation
because he was of the view that Section 197 Cr. P.C. was not at- tracted. For
the reasons mentioned earlier, the judgment of Jian, J. insofar as it draws a
distinction between a 'body corporate' and a 'corporation' and laws down that
the natio- nalised bank, though a 'body corporate' is not a corpora- tion,
cannot be upheld. The other reason given by Jain, J.
is
that the nationalised bank is merely a personified insti- tution having no members
and is, therefore, not a corpora- tion. This view also cannot be sustained. We
have already pointed out that in order to constitute a corporation it is not
necessary that there should be shareholders or members and that in the new
pattern of public corporation that has developed there are no shareholders or
members.
Keeping
in view the provisions of the Banks Nationalisa- tion Act we are of the opinion
that the nationalised bank is a corporation established by a Central Act and it
is owned and controlled by the 672 Central Government. The premises belonging
to a nationalised bank are public premises under Section 2(e)(2)(ii) of the
Public Premises Act. We are, therefore, unable to accept the contention of Shri
Yogeshwar Prasad that premises belonging to a nationalised bank do not fall
within the ambit of the definition of 'public premises' contained in Section
2(e) of the Public Premises Act.
Shri Yogeshwer
Prasad has also urged that 'public prem- ises' as defined in Section 2(e) of
the Public Premises Act, must be confined to premises let out for residential pur-
poses only and should not cover premises let out for commer- cial purposes and
that if premises let out for commercial purposes are included, Section 2(e)
would be rendered uncon- stitutional as being violative of the provisions of
Articles 14, 19(1)(g) and 21 read with Articles 39 and 41 of the Constitution.
The submission of Shri Yogeshwer Prasad is that a construction which would
sustain the constitutionali- ty of the provisions of Section 2(e) should be
preferred over a construction which would render them constitutional.
We
find no force in this contention.
There
is no warrant for confining the scope of the definition of 'public premises'
contained in Section 2(e) to premises used for residential purposes only and to
excluded premises used for commercial purposes from its ambit. In Hari Singh v.
Military Estate Officer, (Supra) a similar contention was advanced and it was
argued that the expres- sion 'premises' in Public Premises Act would not apply
to agricultural land. This Court rejected that contention with the observation:
"The
word 'premises' is defined to mean any land. Any land will include agricultural
land. There is nothing in the Act to exclude the applicability of the Act to agricultural
land." We are also unable to hold that the inclusion of prem- ises used
for commercial purposes within the ambit of the definition of 'public
premises', would render the Public Premises Act as violative.of the right to
equality guaran- teed under Article 14 of the Constitution or right to free- dom
to carry on any occupation, trade or business guaranteed under Article 19(1)(g)
of the Constitution or the right to liberty guaranteed under Article 21 of the
Constitution. It is difficult to appreciate how a person in unauthorised
occupation of public premises used for commercial purposes, can invoke the
Directive Principles under Article 39 and 41 of the Constitution. As indicated
in the 673 statement of Objects and Reasons the Public Premises Act has been
enacted to provide for a speedy machinery for the eviction of unauthorised
occupants of public premises. It serves a public purpose, viz. making
available, for use, public premises after eviction of persons in authorised
occupation. The need to provide speedy machinery for evic- tion of persons in unauthorised
occupation cannot be con- fined to premises used for residential purposes.
There is no reason to assume that such a need will not be there in respect of
premises used for commercial purposes. No dis- tinction can, therefore, be made
between premises used for residential purposes and premises used for commercial
pur- poses in the matter of eviction of unauthorised occupants of public
premises and the considerations which necessitate providing a speedy machinery
for eviction of persons in unauthorised occupation of public premises apply
equally to both the types of public premises. We are, therefore, unable to
accept the contention of Shri Yogeshwer Prasad that the definition of public
premises contained in Section 2(e) of the Public Premises Act should be so
construed as to exclude premises used for commercial purposes from its ambit.
Shri
A.K. Ganguli, has urged that a person who was put in occupation of the premises
as a tenant and who was con- tinued in such occupation after the expiry or the termina-
tion of his tenancy cannot be regarded as a person in unau- thorised occupation
under Section 2(g) of the Public Prem- ises Act. The submission of Shri Ganguli
is that, the occu- pation of a person who was put in possession as a tenant is
juridical possession and such an occupation cannot be re- garded as unauthorised
occupation. In support of this sub- mission, Shri Ganguli has placed reliance
on the decision of the Bombay High Court in Brigadier K.K. Verma & Anr. v.
Union of India & Anr., A.I.R. 1954 Bombay 358 which has been approved by
this Court in Lallu Yeshwant Singh v. Rao Jag- dish Singh & Ors., [1968] 2
S.C.R. 203.
The
definition of the expression 'unauthorised occupa- tion' contained in Section
2(g) of the Public Premises Act is in two parts. In the first part the said
expression has been defined to mean the occupation by any person of the Public
premises without authority for such occupation. It implies occupation by a
person who has entered into occupa- tion of any public premises without lawful
authority as well as occupation which was permissive at the inception but has
ceased to be so. The second part of the definition is inclu- sive in nature and
it expressly covers continuance in occu- pation by any person of the public
premises after the au- thority (whether by way of grant or any other mode of
trans- fer) under which he was allowed to occupy the premises has 674 expired
or has been determined for any reason whatsoever.
This
part covers a case where a person had entered into occupation legally under
valid authority but who continues in occupation after the authority under which
he was put in occupation has expired or has been determined. The words
"whether by way of grant or any other mode of transfer" in this part
of the definition are wide in amplitude and would cover a lease because lease
is a mode of transfer under the Transfer of Property Act. The definition of unauthorised
occupation contained in Section 2(g) of the Public Premises Act would,
therefore, cover a case where a person has en- tered into occupation of the
public premises legally as a tenant under a lease but whose tenancy has expired
or has been determined in accordance with law.
Brigadier
K.K. Verma & Anr. v. Union of India & Anr.
(Supra)
was decided under the provisions of the Government Premises (Eviction) Act,
1950, which did not contain the definition of the expression 'unauthorised
occupation'. In that case it has been held that under the Indian law, the
possession of a tenant who has ceased to be a tenant is protected by law and
although he may not have the right to continue in possession, after the
termination of the tenan- cy, his possession is juridical and that possession
is protected by statute, and therefore, an erstwhile tenant can never become a
trespasser and his possession cannot be regarded as unauthorised occupation.
The learned Judges have also observed that unless the legislature had given indica-
tion of a clear intention that by the expression 'unautho- rised occupation' it
meant not only person who had no title at all but also persons who are titled
at the inception and whose title came to an end, it would not be proper to give
an interpretation to the expression 'unauthorised occupa- tion' which would run
counter to the principles of law which have been accepted in this country.
After this decision the legislature intervened and introduced the definition of
the expression 'unauthorised occupation' in the Public Premises (Eviction of Unauthorised
Occupants) Act, 1958, which defi- nition has been reproduced in Section 2(e) of
the Public Premises Act and in the said definition the legislature has taken
care to make an express provision indicating that the expression 'unauthorised
occupation' includes the continu- ance in occupation by any person of the
public premises after the authority (whether by way of grant or any other mode
of transfer) under which he was allowed to occupy the premises has expired or
has been determined for any reason whatsoever. In the circumstances the
petitioners cannot derive any assistance from the decision of the Bombay High
Court in Brigadier K.K. Verma's case (supra).
675 Shri
Ganguli has placed reliance on the decision of A.P. Sen, J. in Express
Newspapers Pvt. Ltd. & Ors. v. Union
of India & Others, [1985] Suppt. 3
S.C.R. 382 and has submitted that in that case the learned Judge has held that
cases involving relationship between the lessor and lessee fall outside the
purview of the Public Premises Act. We have carefully perused the said decision
and we are unable to agree with Shri Ganguli. In that case A.P. Sen, J. has
observed that the new building had been constructed by the Express Newspapers
Pvt. Ltd. after the grant of permission by the lessor, and, therefore, the Express
Newspapers Pvt. Ltd. was not in unauthorised occupation of the same within the
meaning of Section 2(g) of the Public Premises Act. It was also held by the
learned Judge that the Express Building constructed by the Express Newspapers
Ltd. with the sanction of lessor on plots Nos. 9 and 10 demised on perpetual
lease can, by no process of reasoning, be regarded as public premises belonging
to the Central Government under Section 2(e) of the Public Premises Act, and
therefore, there was no question of the lessor applying for eviction of the
Express Newspapers Pvt. Ltd. under the provisions of the Public Premises Act.
The aforesaid observations indicate that the learned Judge did not proceed on
the basis that cases in- volving relationship of lessor and lessee fall outside
the purview of the Public Premises Act. On the other hand the said observations
show that the learned Judge has held that the provisions of the Public Premises
Act could not be invoked in the facts of that case.
Another
submission that has been urged by Shri Ganguli is that the question whether a
tease has been determined or not involves complicated questions of law and the
estate officer, who is not required to be an officer well versed in law, cannot
be expected to decide such question and, there- fore, it must be held that the
provisions of the Public Premises Act have no application to a case when the
person sought to be evicted had obtained possession of the premises as a
lessee. It is true that there is no requirement in the Public Premises Act that
the estate officer must be a person well versed in law. But, that, by itself,
cannot be a ground for excluding from the ambit of the said Act premises in unauthorised
occupation of persons who obtained possession of the said premises under a
lease. Section 4 of the Public Premises Act requires issuing of a notice to the
person in unauthorised occupation of any Public Premises requiring him to show cause
why an order of eviction should not be made.
Section
5 makes provisions for production of evidence in support of the cause shown by
the person who has been served with a notice under Section 4 and giving of a
personal hearing by the estate officer. Section 8 provides that an estate 676
officer, shall, for the purpose of holding any enquiry under the said Act have
the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908, when trying a suit in respect of the matters specified therein
namely:
(a) summoning
and enforcing the attendance of any person and examining him on oath;
(b) requiring
discovery and production of documents; and
(c) any
other matters which may be prescribed.
Rule
5(2) of the Public Premises (Eviction of Unautho- rised Occupants) Rules, 1971,
requires the estate officer to record the summary of evidence tendered before
him. Moreover Section 9 confers a right of appeal against an order of the
estate officer and the said appeal has to be heard either by the district judge
of the district in which the public premises are situate or such other judicial
officer in that district of not less than ten years' standing as the dis- trict
judge may designate in that behalf. In shows that the final order that is
passed is by a judicial officer in the rank of a district judge.
A
similar contention was raised before this Court in Maganlal Chhagganlal (P)
Ltd. v. Municipal Corporation of Greater Bombay & Others, [1975] 1 SCR 1
wherein the validity of the provisions of Chapter VA of the Bombay Municipal
Corporation Act,' 1888 and the Bombay Government Premises (Eviction) Act, 1955
were challenged before this Court and the said contention was negatived. Aligiriswami,
J. speaking for the majority, has observed as under:
"Even
though the officers deciding these questions would be administrative officers
there is provision in these Acts for giving notice to the party affected, to
inform him of the grounds on which the order of eviction is proposed to be
made, for the party affected to file a written statement and produce documents
and be represented by lawyers. The provi- sions of the Civil Procedure Code
regarding summoning and enforcing attendance of persons and examining them on
oath, and requiring the discovery and production of documents are a valuable
safeguard for the person affected. So is the provision for appeal to the
Principal Judge of the City Civil Court in the city of Bombay, or to a District
Judge in the district who has got to deal with the 677 matter as expeditiously
as possible, also a sufficient safeguard as was recognised in Suraj Mail
Mehta's case." Having dealt with the submissions of learned counsel for
the petitioners on the applicability of the provisions of Public Premises Act,
we may come to the main question in- volved in these matters, namely, whether
the provisions of the Public Premises Act override the provisions of the Rent
Control Act. For appreciating the submissions of the learned counsel on this
question it is necessary to examine the provisions of both the enactments. The
relevant provisions of the Public Premises Act have already been set out. We
may briefly refer to the provisions of the Rent Control Act.
The
Rent Control Act has been enacted by Parliament to provide for the control of
rents and evictions and of rate of hotels and lodging houses and for the lease
of vacant premises to Government, in certain areas in the Union Terri- tory of Delhi. It extends to the areas included
within the limits of the New Delhi Municipal Committee and the Delhi Cantonment
Board and to such urban areas within the limits of the Municipal Corporation of
Delhi as are specified in the First
Schedule to the Act (Section 1(2). The expression 'premises is defined in
Section 2(i) as under:
"Premises
means any building or part of a building which is or, is intended to be, let
separately for use as a residence or for commercial use or for any other
purpose, and in- cludes:
(i) the
garden, grounds and outhouses, if any,, appertaining to such building or part
of the building;
(ii) any--furniture
supplied by the landlord for use in such building or part of the building;
but
does not include a room in a hotel or lodging house." Section 3, which
excludes the applicability of the Act to certain premises, provide as under:
"Nothing
in this Act shall apply:
(a) to
any premises belonging to the Government;
(b) to
any tenancy or other like relationship created by a 678 grant from the
Government in respect of the premises taken on lease, or requisitioned, by the
Government Provided that where any premises belonging to Government have been
or are lawfully let by any person by virtue of an agreement with the Government
or otherwise, then, notwith- standing any judgment, decree or order of any
court or other authority, the provisions 'of this Act shall apply to such
tenancy.
(c) to
any premises, whether residential or not, whose monthly rent exceeds three
thousand and five hundred rupees; or
(d) to
any premises constructed on or after the commencement of the Delhi Rent Control
(Amendment) Act, 1988, for a period of ten years from the date of completion of
such construction." Chapter II (Sections 4 to 13) contains provisions re- garding
rent including fixation of standard rent. Chapter III (Sections 14 to 25)
contains provisions for control of eviction, of tenants. Section 14 gives
protection to tenants against eviction and provides that an order for eviction
of a tenant can be passed only on one or more of the grounds mentioned in
clauses (a) to (1) of sub-section (1). Special provisions have been made for
recovery of immediate posses- sion of premises in Sections 14A to 14D in
respect of cer- tain classes of landlords. Section 22 contains a special
provision for recovery of possession of premises where the landlord is a
company or a body corporate or a local author- ity or a public institution if
the premises are required for the use of employees of such landlord or, in the
case of a public institution, for the furtherance of its activities.
In
Chapter IIIA (Sections 25-A to 25-C) provisions have been made for summary
trial of certain applications for eviction on the ground of bona fide
requirement of the landlord.
Chapter
IV (Sections 26 to 29) contains provisions relating to deposit of rent. Chapter
V (Sections 30 to 34) contains provisions relating hotels and lodging houses.
Chapter VI (Sections 35 to 43) contains provisions relating to appoint- ment of
controllers and their powers and functions and appeals. Section 42 makes
provisions for execution of orders passed by the Controller or in appeal, as a
decree of civil court. Section 43 attaches finality to the order passed by the
Controller and the order passed in appeal. Chapter VII (Sections 44 to 49)
contains provisions regarding special obligations of landlords and 679
penalties. Chapter VIII (Sections 50 to 57) contains miscel- laneous
provisions. Under Section 50 jurisdiction of civil courts is barred in respect
of matters specified therein.
Section
54 saves the operation of certain enactments, name- ly, Administration of
Evacuee Property Act, 1950, the Slum Areas (Improvement and Clearance) Act,
1956 and the Delhi Tenants (Temporary Protection) Act, 1956.
On a
comparison of the provisions of the Public Premises Act and the Rent Control
Act it will be found that:
1. By
virtue of Section 1(2) of the Public Premises Act, the said Act is applicable
throughout the territory of India, whereas, view of Section 1(2) of the Rent
Control Act, the said Act is confined in its application to areas included
within the limits of the New Delhi Municipal Com- mittee and the Delhi
Cantonment Board and to such urban areas within the limits of the Municipal
Corporation of Delhi as are specified in the First Schedule and any other urban
area included within the limits of the Municipal Corporation of Delhi to which
provisions of the said Act are extended by the Central Government by notification
in the Official Gazette.
(2)
Under Clauses (c) of Section 2 of the Public Premises Act, the expression
'premises' has a wider connotation and it includes open land as well as
building or part of a building. Under the Rent Control Act the expression 'prem-
ises' as defined in clause (i) of Section 2 has a narrower connotation to mean
any building or a part of building and it does not cover open land.
3. In
view of the definition of the expression 'public premises' contained in clause
(e) of Section 2 of the Public Premises Act, the said Act, in addition to the
premises belonging to or taken on lease or requisitioned by, or on behalf of,
the Central Government, is applicable to premises belonging to or taken on
lease by or on behalf of the compa- nies and statutory bodies mentioned in
clauses (2) and (3) of Section 2(e). The Rent Control Act, on the other hand,
is applicable to all premises except premises belonging to the Government or to
any tenancy or other like relationship created by a grant from the Government
in respect of the premises taken on lease, or requisitioned, by the Government
(Section 3). In view of the amendment introduced in Section 3 by the Delhi Rent
Con- 680 trol Act is not applicable to premises, whether residential or not, whose
monthly rent exceeds three thousand and five hundred rupees and premises
constructed on or after the commencement of the said Amendment Act, for a
period of ten years from the date of completion of such construction.
4. The
provisions of the Public Premises Act are applica- ble to Public Premises in
occupation of a person having no authority for such occupation, including a
person who was allowed to occupy the public premises under a grant or any other
mode of transfer and who has continued in occupation after the authority under
which he was allowed to occupy that premises has expired or has been
terminated. The provi- sions of the Delhi Rent Control Act are applicable only
to persons who have obtained possession of the premises as tenants and whose tenancy
is continuing as well as persons who after the expiration or termination of the
tenancy have continued in occupation of the premises.
As a
result of this comparison it can be said that certain premises, viz. building
or parts of buildings lying within the limits of the New Delhi Municipal
Committee and the Delhi Cantonment Board and in urban areas within the limits
of the Municipal Corporation of Delhi, which belong to or are taken on lease by
any of the companies or statuto- ry bodies mentioned in clauses (2) and (3) of
Section 2(e) of the Public Premises Act and which are in occupation of a person
who obtained possession of the said premises as a tenant and whose tenancy has
expired or has been terminated but who is continuing in occupation of the same,
would ex- facie fall within the purview of both the enactments. The question
which, therefore, arises is whether the occupant of such premises can seek the
protection available under the provisions of Rent Control Act and he can be
evicted from the premises only in accordance with the said provisions and
proceedings for eviction of such a person cannot be initiat- ed under the
provisions of the Public Premises Act.
Shri Venugopal
and other learned counsel representing the petitioners have urged that the Rent
Control Act is a self-contained code providing for regulating the relation-
ship of landlords and tenants and it makes comprehensive provisions with regard
to control of rents as well as evic- tion of tenants and that the provision of
the Rent Control Act, being special in nature insofar as lease-hold proper-
ties in Delhi are concerned, would prevail over the provi- sions of the Public
681 Premises Act which are in the nature of general provisions relating to
eviction of unauthorised occupants from Govern- ment premises in the whole
country.. In support of this submission the learned counsel for the petitioners
have placed reliance on Sections 22 and 54 and the non-obstante clause
contained in Section 14(1) of the rent Control Act.
It has
also been urged by the learned counsel for the peti- tioners that the Public
Premises Act does not contain any machinery for the termination of the tenancy
and that in view of the decision of this Court in V. Dhanapal Chettiar v. Yesodai
Ammal, [1980] 1 SCR 334, the jural relationship of landlord and tenant can come
to an end only on the pass- ing of an order of eviction by a competent court in
accor- ding with the provisions of the Rent Control Act and that in the absence
of an order of eviction under the provisions of the Rent Control Act no
proceedings can be initiated against a person who came into occupation of the
premises as a tenant and who is continuing in occupation of the said premises
after the contractual tenancy has expired or has been terminated.
The
learned Attorney General and Shri G.L. Sanghi, appearing on behalf of the
respondents in the appeals, have urged that the Public Premises Act is in the
nature of a special enactment making provision for speedy and expedi- tious
recovery of possession of public premises from persons in unauthorised
occupation of the same whereas the Rent Control Act is general enactment
regulating the relationship of landlord and tenant and since the Public
Premises Act is a special enactment it would override the provisions of the
Rent Control Act. It has also been urged that the Public Premises Act is a
later enactment, having been enacted in 1971, whereas the Rent Control Act was
enacted in 1958, and, therefore, the Public Premises Act would prevail over the
Rent Control Act. It has been urged that Section 15 of the Public Premises Act
which bars the jurisdiction of other Courts is in the nature of a non obstante
clause which gives overriding effect to the provisions of the Public Premises
Act.
The
learned Addl. Solicitor General, appearing for the respondents in the writ
petitions, has adopted a different line of argument. He has contended that the
Public Premises Act had been enacted by Parliament in exercise of its legis- lative
power under Article 246(1) read with entries 32, 95 and 97 of List I of the
Seventh Schedule to the Constitution whereas the Rent Control Act has been
enacted by Parliament in exercise of its legislative power under Article 246(4)
read with entries 6, 7 and 13 of List III of the Seventh Schedule to the
Constitution and since the Public Premises Act has been enacted in 682 exercise
of the legislative power under Article 246(1) of the Constitution, it would
prevail over the Rent Control Act enacted in exercise of legislative power
under Article 246(4) of the Constitution.
At
this stage, it may be mentioned that in Jain Ink Manufacturing Company v. Life
Insurance Corporation of India & Another, [1981] 1 SCR 498 decided by a
bench of three Judges, it has been held that the Public Premises Act over- rides
the provisions of the Delhi Rent Control Act. In that case it has been observed
that the scope and object of the Public Premises Act is quite different from
that of Rent Control Act and while the Public Premises Act operates in a very
limited field in that it applies only to a limited nature of premises belonging
only to particular sets of individuals, a particular set of juristic persons
like Companies, Corporations or the Central Government, whereas the Rent
Control Act is of much wider application and it applies to all private premises
which do not fall within the limited exceptions indicated in Section 2 of the
Public Premises Act and the object of the Rent Control Act is to afford special
protection to all the tenants or private landlords or landlords who are neither
a Corporation nor Government or Corporate Bodies. It was, therefore, held that
the Public Premises Act is a special Act as compared to the Rent Control Act
and it overrides the provisions of the Rent Control Act. The learned counsel
for the petitioners have assailed the correctness of the said decision and have
submitted that it needs reconsideration.
As
regards rent control legislation enacted by the State legislatures the position
is well settled that such legisla- tion fall within the ambit of entries 6, 7
and 13 List III of the Seventh Schedule to the Constitution (See: Indu Bhushan
Bose v. Rama Sundari Devi & Another, [1970] 1 SCR 443; V Dhanpal Chettiar's
case (supra); Jai Singh Jairam Tyagi etc. v. Mamanchand Ratilal Agarwal &
Others, [1980] 3 SCR 224 and Accountant and Secretarial Services Pvt. Ltd.
& Another v. Union of India & Others, [1988] 4 SCC 324.
The
Rent Control Act has been enacted by Parliament in relation to the Union
Territory of Delhi in exercise of the legislative power conferred under Article
246(4) of the Constitution which empowers Parliament to make laws with respect
to any matter for any part of the territory of India not included in a State
notwithstanding that such matter is a matter enumerated in the State List.
The
Public Premises Act deals with Government property as well as property
belonging to other legal entities men- tioned in clauses (2) 683 and (3) of
Section 2(e) of the Public Premises Act. In so far as it relates to eviction of
unauthorised occupants from premises belonging to or taken on lease or
requisitioned by or on behalf of the Central Government the Public Premises Act
would fall within entry 32 of List I being law with respect to a property of
the Union. The property belonging to the
various legal entities mentioned in clauses (2) and (3) of Section 2(e) of the
Public Premises Act cannot be regarded as property of the Union and the Public
Premises Act cannot be held to have been enacted under entry 32 of List I in
respect of the said properties. In Accountant and Secretarial Services Pvt.
Ltd. and Another v. Union of India and Others, (supra) this Court has held that
the Public Premises Act, in relation to properties other than the properties
belonging to the Central Government has been enacted under the concurrent list.
The learned Additional Solicitor General has placed reliance on the decision of
this Court in Smt. Saiyada Mossarrat v. Hindustan Steel Ltd., [1989] 1 SCC 272
wherein it has been held that with regard to the subject matter of speedy
eviction of unautho- rised occupants from properties belonging to a Government
company, wherein the Central Government has more than fifty one per cent of the
paid-up capital, the source of authority can be traced to entry 97 read with
entry 95 of Union List (List 1). This Court has, however, affirmed the decision
of the Division Bench of Madhya Pradesh High Court in L.S. Nair v. Hindustan
Steel Ltd., AIR 1980 MP 106 wherein it has been held that insofar as the Public
Premises Act deals with a lessee or licence of premises belonging to a
Government company, the subject matter of the Act would be covered by entries
6, 7 and 46 of List III. After quoting the observa- tions of the Madhya Pradesh
High Court in this regard, this Court has observed:
"Learned
counsel for the petitioner has not been able to show that there is any
infirmity in the reasoning of the High Court." This shows that the
decision of this Court is rounded on the view mentioned above. Since the Act
was held to be covered by entries 6, 7 and 46 of List III, it was not necessary
to invoke the residuary power of legislation under entry 97 of List I. The
observations made by this Court that the source of authority in the matter of
speedy eviction of unautho- rised occupants from properties belonging to a
Government company wherein the Central Government has more than fifty one per
cent of the paid-up share capital can, in any case, be traced to entry 97 read
with entry 95 of List I are obiter in nature only. There is, therefore, no
inconsistency between the decisions of this Court in Accoun- 684 tant and
Secretarial Services Pvt. Ltd. (supra) and Smt. Saiyada Mossarrat case (supra)
inasmuch as in both the decisions it is held that the Public Premises Act
insofar as it deals with a lessee or licencee of premises other than premises
belonging to the Central Government has been enact- ed in exercise of the
legislative powers in respect of matters enumerated in the Concurrent List. We
are in agree- ment with this view.
This
means that both the statutes, viz. the PubLic Premises Act and the Rent Control
Act, have been enacted by the same legislature, Parliament, in exercise of the legis-
lative powers in respect of the matters enumerated in the Concurrent List. We
are, therefore, unable to accept the contention of the learned Additional
Solicitor General that the Public Premises Act, having been enacted by
Parliament in exercise of legislative powers in respect of matters enumerated
in the Union List would ipso-facto override the provisions of the Rent Control
Act enacted in exercise of the legislative powers in respect of matters
enumerated in the Concurrent List. In our opinion the question as to whether
the provisions of the Public Premises Act override the provisions of the Rent
Control Act will have to be considered in the light of the principles of
statutory interpretion applicable to laws made by the same legisla- ture.
One
such principle of statutory interpretation which is applied is contained in the
latin maxim: leges posteriors priores conterarias abrogant, (later laws
abrogate earlier contrary. laws). This principle is subject to the exception
embodied in the maxim: generalia specialibus non derogant, (a general provision
does not derogate from a special one).
This
means that where the literal meaning of the general enactment covers a
situation for which specific provision is made by another enactment contained
in an earlier Act, it is presumed that the situation was intended to continue
to be dealt with by the specific provision rather than the later general one (Benion:
Statutory Interpretation p. 433-34).
The
rationale of this rule is thus explained by this Court in the J.K. Cotton
Spinning & Weaving Mills Co. Ltd. v. The State of Uttar Pradesh & Others, [1961] 3 SCR 185:
"The
rule that general provisions should yield to specific provisions is not an
arbitrary principle made by lawyers Judges but springs from the common
understanding of man and women that when the same person gives two directions
685 one covering a large number of matters in general and anoth- er to only
some of them his intention is that these latter directions should prevail as
regards these while as regards all the rest the earlier directions should have
effect." (p. 94) In U.P. State Electricity Board & Ors. v. Hari Shankar Jain &
Ors., [1979] 1 SCR 355 this Court has observed:
"In
passing a special Act, Parliament devotes its entire consideration to a
particular subject. When a General Act is subsequently passed, it is logical to
presume that Parlia- ment has not repealed or modified the former Special Act
unless it appears that the Special Act again received con- sideration from
Parliament." (p. 366) In Life Insurance Corporation v.D.J. Bahadur, [1981]
1 SCR 1083 Krishna Iyer, J. has pointed out:
"In
determining whether a statute is a special or a general one, the focus must be
on the principal subject matter plus the particular perspective. For certain
purposes, an Act may be general and for certain other purposes it may be
special and we cannot blur distinctions when dealing with liner points of
law." (p. 1127) The Public Premises Act is a later enactment, having been
enacted on 23rd August,
1971, whereas the Rent
Control Act was enacted on 31st December, 1958. It represents the later will of Parliament and should prevail over the
Rent Control Act unless it can be said that the Public Premises Act is a
general enactment, whereas the Rent Control Act is a special enactment and
being a special enactment the Rent Control Act should prevail over the Public
Premises Act. The submission of learned counsel for the petitioners is that the
Rent Control Act is a special enactment dealing with premises in occupation of
tenants, whereas the Public Prem- ises Act is a general enactment dealing with
the occupants of Public Premises and that insofar as public premises in
occupation of tenants are concerned the provisions of the Rent Control Act
would continue to apply and to that extent the provisions of the Public
Premises Act would not be applicable. In support of this submission reliance
has been placed on the non obstante clauses contained in Section 14 and 22 of
the Rent Control Act as well as the provisions contained in Sections 50 and 54
of the said Act. On the 686 other hand the learned counsel for the respondents
have urged that the Rent Control Act is a general enactment dealing with the
relationship of landlord and tenant gener- ally, whereas the Public Premises
Act is a special enactment making provision for speedy recovery of possession
of Public Premises in unauthorised occupation and that the provisions of the
Public Premises Act, a later Special Act, will, therefore, override the
provisions of the Rent Control Act in so far as they are applicable to Public
Premises in occupation of persons who have continued in occupation after the
lease has expired or has been determined. The learned counsel for the
respondents have placed reliance on Section 15 of the Public Premises Act which
bars the jurisdiction of all courts in respect of the eviction of any person
who is in unauthorised occupation of any Public Premises and other matters
specified herein. It has been submitted that the said provision is also in the
nature of a non obstante clause which gives overriding effect to the provisions
of the Public Premises Act. Thus each side claims the enactment relied upon by
it is a special statute and the other enact- ment is general and also invokes
the non obstante clause contained in the enactment relied upon.
The
Rent Control Act makes a departure from the general law regulating the
relationship of landlord and tenant contained in the Trnasfer of Property Act
inasmuch as it makes provision for determination of standard rent, it specifies
the grounds on which a landlord can seek the evic- tion of a tenant, it
prescribes the forum for adjudication of disputes between landlords and tenants
and the procedure which has to be followed in such proceedings. The rent
Control Act can, therefore, be said to be a special statute regulating the
relationship of landlord and tenant in the Union Territory of Delhi. The Public
premises Act makes provision for a speedy machinery to secure eviction of unau-
thorised occupants from public premises. As opposed to the general law which
provides for filing of a regular suit for recovery of possession of property in
a competent Court and for trial of such a suit in accordance with the procedure
laid down in the Code of Civil procedure, the Public Prem- ises Act confers the
power to pass an order or eviction of an unauthorised occupant in a public
premises on a designat- ed officer and prescribes the procedure to be followed
by the said officer before passing such an order. Therefore, the Public
Premises Act is also a special statute relating to eviction of unauthorised
occupants from public premises.
In
other words, both the enactments, namely, the Rent Con- trol Act and the Public
Premises Act, are special statutes in relation to the matters dealt with
therein. Since, the Public premises Act is a special statute and not a general
enactment the 687 exception contained in the principle that a subsequent
general law cannot derogate from an earlier special law cannot be invoked and
in accordance with the principle that the later laws abrogate earlier contrary
laws, the Public Premises Act must prevail over the Rent Control Act.
We
arrive at the same conclusion by applying the princi- ple which is followed for
resolving a conflict between the provisions of two special enactments made by
the same legis- lature. We may in this context refer to some of the cases which
have come before this Court where the provisions of two enactments made by the
same legislature were found to be inconsistent and each enactment was claimed
to be a special enactment and had a non obstante clause giving overriding
effect to its provisions.
In Shri
Ram Narain v. The Simla Banking and Industrial Co. Ltd., [1956] SCR 603 this
Court was considering the provisions contained in the Banking Companies Act,
1949 and the Displaced Persons (Debts Adjustment) Act, 1951. Both the
enactments contained provisions giving overriding effect to the provisions of
the enactment over any other law. This Court has observed:
"Each
enactment being a Special Act, the ordinary principle that a special law
overrides a general law does not afford any clear solution in this case"
(p. 613) "It is, therefore, desirable to determine the overriding effect
of one or the other of the relevant provisions in these two Acts, in a given
case, on much broader considera- tions of the purpose and policy underlying the
two Acts and the clear intendment conveyed by the language of the rele- vant
provisions therein." (p. 615) Similarly in Kumaon Motor Owners' Union Ltd.
and Another v. The State of Uttar Pradesh,
[1966] 2 SCR 12 1 there was conflict between the provisions contained in Rule
131(2)(gg) and (i) of the Defence of India Rules, 1962 and Chapter IV-A of the
Motor Vehicle Act, 1939. Section 68-B gave overriding effect to the provisions
of Chapter IV(A) of the Motor Vehicle Act whereas Section 43 of the Defence of
India Act, 1962, gave overriding effect to the provisions contained in the Defence
of India Rules. This Court held that the Defence of India Act was later than
the Motor Vehicles Act and, therefore, if there was anything repugnant, the
provisions of the later 688 Act should prevail. This Court also looked into
object behind the two statutes, namely, Defence of India Act and Motor Vehicles
Act and on that basis also it was held that the provisions contained in the Defence
of India Rules would have an overriding effect over the provisions of the Motor
Vehicles Act.
In Sarwan
Singh & Another v. Kasturi Lal, [1977] 2 SCR 421, the question for
consideration was, whether the provi- sions of Section 14A and Chapter IIIA of
the Rent Control Act will prevail over those contained in Sections 19 and 39 of
the Slum Areas (Improvement and Clearance) Act, 1956.
Section
14A and 25A of the Rent Control Act contained non obstante clauses but in
Section 54 of the Rent Control Act it was expressly provided that nothing in
the said Act shall effect the provisions of the Slum Areas (Improvement and
Clearance) Act, 1956. Moreover in Section 19 of the Slum Areas (Improvement and
Clearance) Act, 1956 mere was non- obstante clause and Section 39 of the said
Act gave overrid- ing effect to the provisions of the said enactment over any
other Jaw. This Court has observed:
"When
two or more laws operate in the same field and each contains a non-obstante
clause stating that its provisions will override those of any other law,
stimulating and inci- sive problems of interpretation arise. Since statutory
interpretation has no conventional protocol, cases of such conflict have to be
decided in reference to the obeject and purpose of the laws under
consideration." (p. 433) After examining the special and specific purpose
under- lying the enactment of Section 14A and Chapter IIIA of the Rent Control
act and the fact that the Rent Control Act was a later enactment this Court
held that the provisions of the Rent Control Act would prevail over those
contained in the Slum Areas (Improvement and Clearance) Act, 1956.
The
principle which emerges from these decisions is that in the case of
inconsistency between the provisions of two enactments, both of which can be
regarded as Special in nature, the conflict has to be resolved by reference to
the purpose and policy underlying the two enactments and the clear intendment
conveyed by the language of the relevant provisions therein. We propose to
consider this matter in the light of this principle.
The
statement of objects and reasons for the enactment of the 689 Rent Control Act,
indicates that it has been enacted with a view:
(a) to
devise a suitable machinery for expeditious adjudica- tion of proceedings
between landlords and tenants;
(b) to
provide for the determination of the standard rent payable by tenants of the
various categories of premises which should be fair to the tenants, and at the
same time, provide incentive for keeping the existing houses in good repairs,
and for further investment in house construction; and
(c) to
give tenants a larger measure of protection against eviction.
This
indicates that the object underlying the Rent Control Act is to make provision
for expeditious adjudication of disputes between landlords and tenants,
determination of standard rent payable by tenants and giving protection against
eviction to tenants. The premises belonging to the Government are excluded from
the ambit of the Rent Control Act which means that the Act has been enacted
primarily to regulate the private relationship between landlords and tenants
with a view to confer certain benefits on the ten- ants and at the same time to
balance the interest of the landlords by providing for expeditious adjudication
of proceedings between landlords and tenant.
As
mentioned earlier, the Public Premises Act has been enacted with a view to
provide for eviction of unauthorised occupants from public premises. In the
statement of objects and reasons for this enactment reference has been made to
the judicial decisions whereby by the 1958 Act was declared as unconstitutional
and it has been mentioned:
"The
court decisions, referred to above, have created seri- ous difficulties for the
Government inasmuch as the proceed- ings taken by the various Estate Officers
appointed under the Act either for the eviction of persons who are in unau- thorised
occupation of public premises or for the recovery of rent or damages from such
persons stand null and void. It has become impossible for Government to take
expeditious action even inflagrant cases of unauthorised occupation of public
premises and recovery of rent or damages for such unauthorised occupation. It
is, therefore, considered imper- ative to restore a speedy machinery for the
eviction of persons who are in unauthorised occupation 690 of public premises
keeping in view at the same time the necessity of complying with the provision
of the Constitu- tion and the judicial pronouncements, referred to above."
This shows that the Public Premises Act has been enacted to deal with the
mischief of rampant unauthorised occupation of public premises by providing a
speedy machinery for the eviction of persons in unauthorised occupation. In
order to secure this object the said Act prescribes the time period for the
various steps which are enquired to be taken for securing eviction of the
persons in unauthorised occupation.. The object underlying the enactment is to
safeguard public interest by making available for public use premises belonging
to Central Government, Companies in which the Central Government has
substantial interest, Corpora- tions owned or controlled by the Central
Government and certain autonomous bodies and to prevent misuse of such
premises.
It
would thus appear that, while the Rent Control Act is intended to deal with the
general relationship of landlords and tenants in respect of premises other than
government premises, the Public Premises Act is intended to deal with speedy
recovery of possession of premises of public nature, i.e. property belonging to
the Central Government, or Compa- nies in which the Central Government has
substantial inter- est or Corporations owned or controlled by the Central
Government and certain corporations, institutions, autono- mous bodies and
local authorities. The effect of giving overriding effect to the provisions of
the Pubic Premises Act over the Rent Control Act, would be that buildings
belonging to Companies Corporations and Autonomous bodies referred to in
Section 2(e) of the Public Permises Act would be excluded from the ambit of the
Rent Control Act in the same manner as properties belonging to the Central
Govern- ment. The reason underlying the exclusion of property be- longing to
the Government from the ambit of the Rent Control Act, is that Government while
dealing with the citizens in respect of property belonging to it would not act
for its own purpose as a private landlord but would act in public interest.
What can be said with regard to Government in relation to property belonging to
it can also be said with regard to companies, corporations and other statutory
bodies mentioned in Section 2(e) of the Public Premises Act. In our opinion,
therefore, keeping in view the object and purpose underlying both the
enactments viz., the Rent Control Act and the Public Premises Act, the
provisions of the Public Premises Act have to be construed as overriding the provi-
sions contained in the Rent Control Act.
691 As
regards the non obstante clauses contained in Sec- tions 14 and 22 and the
provisions contained in Sections 50 and 54 of the Rent Control Act, it may be
stated that Par- liament was aware of these provisions when it enacted the
Public Premises Act contained a specific provision in Sec- tion 15 barring
jurisdiction of all courts (which would include the Rent Controller under the
Rent Control Act).
This
indicates that Parliament intended that the provisions of the Public Premises
Act would prevail over the provisions of the Rent Control Act inspite of the
above mentioned provisions contained in the Rent Control Act.
It has
been urged by the learned counsel for the peti- tioner that there is no
conflict between the provisions of the Rent Control Act and the Public Premises
Act and that both the provisions can be given effect to without one overriding
the other. In this regard, it has been pointed out that since no provisions has
been made in the Public Premises Act for the termination of the lease, the provi-
sions of the Rent Control Act can be held applicable upto the stage of
termination of the lease, and thereafter, proceedings can be initiated for
eviction under the provi- sions of the Public Premises Act. In support of this submis-
sion, reliance has been placed on Dhanpal Chettiar's case (supra), wherein it
has been held that in view of the spe- cial provisions contained in the State
Rent Control Acts, it is no longer necessary to issue a notice under Section
106 of the Transfer of Property Act to terminate the tenancy because inspite of
the said notice the tenant is entitled to continue in occupation by virtue of
the provisions of the said Acts. In the said case, it has been further laid
down that the relationship between the landlord and tenant con- tinues till the
passing of the order of eviction in accord- ance with the provisions of the
Rent act, and therefore, for the eviction of the tenant in accordance with the
law, an order of the competent Court under the Rent Control Act is necessary.
This would mean that in order to evict a person who is continuing in occupation
after the expiration or termination of his contractual tenancy in accordance
with law, two proceedings will have to be initiated. First, there will be
proceedings under Rent Control Act before the Rent Controller followed by
appeal before the Rent Control Tribu- nal and revision before the High Court.
After these proceed- ings have ended they would be followed by proceedings
under the Public Premises Act, before the Estate Officer and the Appellate
Authority. In other words, persons in occupation of public premises would
receive greater protection than tenants in premises owned by private persons.
It could not be the intention of Parliament to confer this dual benefit on
persons in occupation of public premises.
692 It
has also been urged that in Section 22 of the Rent Control Act, special
provision has been made for recovery of possession of premises belonging to a
company or other body corporate or any local authority or any public
institution and that premises belonging to companies, corporations and
autonomous bodies mentioned in clauses (2) and (3) of Sec- tion 2(e) of the
Public Premises would be covered by the said provision and that in view of this
special provision it is not necessary to have a further provision in the Public
Premises Act for the recovery of possession belonging to those bodies, and
therefore, the provisions of the Public Premises Act should be confined in
their application to premises other than premises covered by the Rent Control
Act. Section 22 of the Rent Control Act provides as under:
"Where
the landlord in respect of any premises is any compa- ny or other body
corporate of any local authority or any public institution and the premises are
required for the use of employees of such landlord or in the case of a public
institution for the furtherance of its activities, then, notwithstanding
anything contained in Section 14 or any other law, the Controller may, on an
application made to him in this behalf by such landlord, place the landlord in
vacant possession of such premises by evicting the tenant and every other
person who may be in occupation thereof, if the Controller is satisfied-- (a)
that the tenant to whom such premises were let for use as a residence at a time
when he was in the service or employment of the landlord, has ceased to be in
such service or employment; or (b) that the tenant has acted in contravention
of the terms, express or implied, under which he was authorised to occupy such
premises; or (c) that any other person is in unauthorised occupation of such
premises; or (d) that the premises are required bona fide by the public institution
for the furtherance of its activities.
Explanation--For
the purpose of this section, "public in- stitution" includes any
educational institutional, library, hospital and charitable dispensary but does
not include any 693 such institution set up by any private trust." The
said special provision shows that, it enables recov- ery of possession or
premises of which the landlord is a company or other body corporate or any
local authority or any public institution in certain circumstances viz., if the
premises are required for the use of the employees or such landlord. In the
case of public institutions possession can also be obtained under this
provision if the premises are required for the furtherance of its activities.
In other words, recovery of possession is permissible under this provision only
in certain circumstances and for certain purposes. Inspite of this provision
Parliament has consid- ered it necessary tO extend the Public Premises Act to
premises belonging to companies, corporations and statutory bodies mentioned in
Clauses (2) and (3) of Section 2(e) by widening the definition of the
expression "public premises" in Section 2(e) of the Public Premises
Act. The scope and ambit of the aforesaid power conferred under the Public
Premises Act cannot be restricted by reference to the provi- sion contained in
Section 22 of the Rent Control Act.
It has
been urged by the learned counsel for the peti- tioners that many of the
corporations referred to in Section 2(e)(2)(ii) of the Public Premises Act, like
the nationa- lised banks and the Life Insurance Corporation, are trading
corporations and under the provisions of the enactments whereby they are
constituted these corporations are required to carry on their business with a
view to earn profit, and that there is nothing to preclude these corporations
to buy property in possession of tenants at a low price and after buying such
property evict the tenants after terminating the tenancy and thereafter sell
the said property at a much higher value because the value of property in
possession of tenants is much less as compared to vacant property. We are
unable to cut down the scope of the provisions of the Public Premises Act on
the basis of such an apprehension because as pointed out by this Court in M/s Dwarkadas
Marfatia and Sons v. Board of Trustees of the Port of Bombay, [1989] 3 SCC 293:
"Every
activity of a public authority especially in the background of the assumption
on which such authority enjoys immunity from the rigour of the Rent Act, must
be informed by reason and guided by the public interest. All exercise of
discretion or power by public authorities as the respondent, in respect of
dealing with tenants in respect of which they have been treated separately and
distinctly from other landlords on the assumption that they would not act 694
as private landlords, must be judged by that standard." These observations
were made in the context of the provi- sions of the Bombay Rents, Hotel and
Lodging Houses Rates (Control) Act, 1947 whereby exemption from the provisions
of the Act has been granted to premises belonging to the Bombay Port Trust. The
consequence of giving overriding effect to the provisions of the Public
Premises Act is that premises belonging to companies and statutory bodies
referred to in Clauses (2) and (3) of Section 2(e) of the Public Premises Act
would be exempted from the provisions of the Rent Con- trol Act. The actions of
the companies and statutory bodies mentioned in Clauses (2) and (3) of Section
2(e) of the Public Premises Act while dealing with their properties under the
Pubic Premises Act will, therefore, have to be judged by the same standard.
For
the reasons aforesaid, we are unable to accept the contention of the learned
counsel for the petitioners that the provisions contained in the Public
Premises Act cannot be applied to premises which fall within the ambit of the
Rent Control Act. In our opinion, the provisions of the Public Premises Act, to
the extent they cover premises falling within the ambit of the Rent Control Act,
override the provisions of the Rent Control Act and a person in unauthorised
occupation of public premises under Section 2(e) of the Act cannot invoke the
protection of the Rent Control Act.
In
Civil Appeal No. 3723 of 1966, Shri Yogeshwer Prasad sought to raise
contentions relating to the particular facts of that case, namely, that the
termination of the lease of the appellant is vitiated by mala fides and that
the said appellant could not be held to be a person in unauthorised occupation
of the premises and further that the proceedings have not been taken in
accordance with the provisions of the Public Premises Act. We find that in this
case the appellant filed a writ petition in the High Court directly against the
order passed by the Estate Officer without filing an appeal against the said
order before the Appellate Authority. The High Court has held that the question
of mala fides is a disputed question of fact and the same could not be gone
into in proceedings under Article 226 of the Constitution.
We are
in agreement of the said view of the High Court. As regards the other
contentions we are of the view that the appellant cannot be permitted to
agitate matters which could be agitated by him in appeal before the Appellate
Authority.
In
Civil Appeals Nos. 2368 and 2369 of 1986 the learned counsel 695 for the
respondents have raised a preliminary objection with regard to the
maintainability of these appeals on the ground that the appellants, on account
of their conduct, are not entitled to invoke the jurisdiction of this Court
under Article 136 of the Constitution. The submission of the learned counsel is
that before initiating proceedings under the provisions of the Public Premises
Act the respondent Bank, viz. the Punjab National Bank, had initiated proceed- ings
under the Rent Control Act for the eviction of the appellants had in those
proceedings the appellants had filed an objection with regard to the
maintainability of the eviction proceedings under the Rent Control Act before
the Additional Rent Controller and thereupon the Respondent Bank initiated
proceedings for eviction of the appellants under the Public Premises Act and
thereafter the proceedings initiated by the respondent Bank under the Rent
Control Act were dismissed by the Additional Rent Controller by orders dated
the 6th August, 1989. The learned counsel of the respondents have urged that
the appellants, having raised the objection against the maintainability of the
proceedings for eviction under the Rent Control Act on the ground that proceedings
could only be maintained under the provisions of the Public Premises Act and
having got them dismissed, cannot turn round and raise an objection that the
proceed- ings for eviction under the Public Premises Act are not maintainable
and the proceedings can only be taken under the Rent Control Act. The learned
counsel for the appellants have submitted that special leave to appeal was
granted by this Court after notice to the respondents and at that stage the
respondents had raised this objection but this Court granted special leave and
it is not permissible for the respondents to agitate this question now. The
orders dated the 6th August, 1989 which were passed by the Additional Rent
Controller in the proceedings for eviction initiated by the respondent Bank
under Rent Control Act against the appellants in these appeals have been placed
on record by the respondents and from the said orders it appears that in the
proceedings initiated under the Rent Control Act the appellants had raised a
plea that the premises in question had been declared public premises under the
Public Premises Act and in view of that the proceedings under the Rent Control
Act were not competent. The said orders also show that the Additional Rent
Controller dismissed the proceed- ings for eviction under the Rent Control Act
on the view that the Public Premises Act is applicable to premises in question
and his jurisdiction was excluded. This would show that the proceedings which
were initiated by the Respondent Bank for the eviction of the appellants under
the Rent Control Act were dismissed as not maintainable on the ground that the
Rent Control Act was not applicable to the premises and the premises are
governed by the provisions of the 696 Public Premises Act. This finding was
recorded by the Addi- tional Rent Controller in view of the objection raised by
the appellants with regard to the maintainability of those proceedings. In
other words, the appellants succeeded in those proceedings on the basis of
their plea that the prem- ises were not governed by the Rent Control Act and
were governed by the provisions of the Public Premises Act.
Having
got the proceedings under the Rent Control Act dis- missed the appellants are
now raising the plea that the proceedings under the Public Premises Act are not
maintain- able and that the only remedy available is under the Rent Control
Act. This conduct of the appellants would have disentitled them from invoking
the jurisdiction of this Court under Article 136 of the Constitution. Since we
are of the view that the appellants cannot succeed on the merits, we do not
propose to dismiss the appeals on this preliminary ground.
In the
result the appeals and the writ petition are dismissed. There will be no order
as to costs.
The
appellants in Civil Appeals Nos. 2368 and 2369 of 1986 had been dispossessed
from the premises in their occu- pation after the dismissal of their appeals by
the Addition- al District Judge. During the pendency of these appeals interim
orders were passed by this Court whereunder posses- sion of a part of the
premises was restored to the appel- lants. Since these appeals have been
dismissed the appel- lants in both the appeals are directed to handover the
possession of the portion of the premises in their occupa- tion to the Respondent
Bank within one month.
In
Civil Appeal No. 3725 of 1986 and Writ Petition No. 864 of 1985, this Court had
passed interim orders staying the eviction of the petitioners in those matters.
Since the appeal and the writ petition are being dismissed the said interim
orders shall stand vacated.
R.S.S.
Petitions dismissed.
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