Suresh
Chand Vs. Gulam Chisti [1990] INSC 24 (31 January 1990)
Ahmadi,
A.M. (J) Ahmadi, A.M. (J) Mukharji, Sabyasachi (Cj) Shetty, K.J. (J)
CITATION:
1990 AIR 897 1990 SCR (1) 186 1990 SCC (1) 593 JT 1990 (1) 118 1990 SCALE
(1)100
ACT:
U.P.
Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972: Sections
2(2), 39 and 40--Prermises constructed in 1967-Tenant--Whether entitled to
protection of statutory provision.
HEAD NOTE:
On the
completion of construction of the demised prem- ises in 1967, the
appellant-landlord had let it out to the respondent-tenant in the same year.
Later, on 27th May,
1972 the landlord
filed the eviction suit against the tenant. On 15th July, 1972 the U.P. Urban Buildings (Regulation of Letting, Rent and
Eviction) Act. 1972 came into force. The tenant deposited in the Court on 2nd
September, 1977 an amount of Rs.4005 being the arrears of rent inclusive of
interest and cost. This payment was made within one month after the expiry of
the period of ten years stipulated in section 2(2) of the Act to take advantage
of section 39 of the Act. Section 2(2) inter alia provided that nothing in the
Act shall apply to a building for a period of ten years from the date on which
its construction was completed, while section 39 dealt with pending suits for
eviction relating to building brought under the regulation for the first time.
The
Trial Court gave the benefit of section 39 and refused to order ejectment of
the tenant. The landlord's revision application was rejected by the Additional
District Judge, and his further revision was dismissed by the High Court.
Allowing
the appeal, this Court.,
HELD:
(1) In
order to secure the benefit of Section 39 or 40 it must be shown that the suit,
appeal or revision was pending on the date of commencement of the Act.
Secondly, if the suit is rounded on the allegation of non-payment of rent, the
tenant must, within one month from the date of commencement of the Act or from
the date of knowledge of the pendency of the suit, deposit in court the entire
amount of rent and damages for use and occupation of the building with interest
as prescribed and landlord's entire cost of the suit, to take the benefit of
187 the said provision. If both these conditions are satisfied, the law,
section 39, mandates that no decree for eviction shall be passed except on any
of the grounds specified in the proviso to sub-section (1) or clauses (b) to
(g) of sub-section (2) of section 20 of the Act. Similarly, section 40 lays
down that if an appeal or revision (arising out of a suit for eviction of a
tenant from any building to which the old Act does not apply) is pending on the
date of commence- ment of the Act, the benefit of section 39 will be available
to the tenant. [199B-E] The legislature intended to give the benefit of sec- tions
39 and 40 to suit, appeals or revisions which were pending on 15th July, 1972 and in which the deposit came to be
made within one month from that date. The expression 'such' preceding the word
'commencement' is clearly sugges- tive of the fact that it has reference to the
date of com- mencement of the Act and the payment must be made within one month
from such commencement. unless such a restricted meaning to the section is
given, it would not be able to advance the legislative intent to relieve the
landlords of new buildings from the rigours of the Act. [200F-H]
(3)
The Legislature desired to limit the scope of the application of sections 39
and 40 to suits, appeals and revisions pending on the date of commencement of
the Act, i.e., 15th July, 1972, relating to buildings to which the old Act did
not apply and to which the new Act was to apply forthwith and not at a later
date. This is clear from the fact that the section contemplates deposit of
arrears to rent and damages together with interest and cost within one month
from 'such date of commencement' meaning the date of commencement of the Act. [200B-C]
R.D. Ram Nath & Co. & Anr. v. Girdhari Lal & Anr., [1975] A.L.J. 1;
Ram Swaroop Rai v. Lilavathi, [1980] 3 SCR 1034-(1980) 3 SCC 452; Om Prakash
Gupta etc. v. Dig Vijen- drapal Gupta etc., [1982] 3 SCR 491; Vineet Kumar v. Mangal
Sain Wadhera, [1984] 3 SCC 352; Pasupuleti Venkateswarlu v. Motor and General
Traders, [1975] 1 SCC 779; A.K. Gupta & Sons v. Damodar Valley Corporation,
[1966] I SCR 796; Nand Kishore Marwah v. Samundri Devi, [1987] 4 SCC 382 and Atma
Ram Mittal v. Ishwar Singh Punia, [1988] 4 SCC 284, referred to.
(4)
The Courts below committed an error in giving the benefit of section 39 of the
Act to the tenant since admit- tedly the tenant could not and had not made the
deposit within one month from the date of commencement of the Act on 15th July,
1972 but had made the deposit 188 SUPREME COURT REPORTS [1990] 1 S.C.R. within
a month after the moratorium period expired in 1977. [201F]
CIVIL
APPELLATE JURISDICTION: Civil Appeal No. 10234 of 1983.
From
the Judgment and Order dated 3.1.19/9 of the Alla- habad High Court in Civil
Revision No. 3714 of 1978.
K.B. Rohtagi
for the Appellant.
R.K. Garg
and D.K. Garg for the Respondent.
The
Judgment of the Court was delivered by AHMADI, J. The short question which
arises for our consideration in this appeal by special leave is whether a
tenant of a premises constructed in 1967 is entitled to the protection of
Section 39 of the U.P. Urban Buildings (Regu- lation of Letting, Rent and
Eviction) Act, 1972 (Act No. 13 of 1972 as amended by Act No. 17 of 1985),
hereinafter called 'the Act', in an eviction suit instituted before the
commencement of the Act. The Act came into force w.e.f. 15th July, 1972 by virtue of the notification
issued by the State Government in exercise of power conferred by Sub-Section 4
of Section 1 of the Act, vide Notification No. 3409/XXIX-59-72 dated 27th June, 1972 published in the U.P.
Government
Gazette, Extra, dated 1st
July, 1972. The Act
was enacted for inter alia regulation of letting and eviction of tenants from
certain classes of buildings situate in urban areas specified in Sub-Section
(3) of Section 1. Section 2 indicates the buildings to which the Act shall not
apply. We are concerned with Sub-Section (2) of Section 2, the rele- vant part
whereof reads as under:
"Except
as provided in sub-section (5) of section 12, sub- section (1-A) of Section 21,
sub-section (2) of Section 24, Sections 24-A, 24-B, 24-C or sub-section (3) of
section 29, nothing in this Act shall apply to building during a period of ten
years from the date on which its construction is completed".
Since
it is not disputed before us that the construction of the suit property was
completed in 1967, we need not set out the provisos and the explanations to the
sub-section.
Section
3 defines the various expressions used in the Act.
Under
189 clause (a) 'tenant', in relation to a building means a person by whom its
rent is payable and 'building' according to clause (i) means a residential or
non-residential roofed structure including any land, garages and out-houses appur-
tenant thereto. Any person to whom rent is or if the build- ing were let, would
be, payable, including his agent or attorney or such person, is a 'landlord'
within the meaning of clause (j) of that section. It would thus seem that but
for the exemption granted by Section 2(2), the provisions of the Act would have
applied to the letting of the suit prem- ises. The scheme of Section 2 is that
buildings referred to in clauses (a) to (f) are exempt from the operation of
the Act for all times (subject of course to legislative changes) whereas the
exemption granted by Section 2(2) is for a period of ten years from the date of
completion of construc- tion.
Chapter
III regulates to letting. Section 11 provides that no person shall let any
building except in pursuance of an allotment order issued by the District
Magistrate under Section 16. Chapter IV regulates eviction. Section 20 inter alia
prohibits the institution of a suit for eviction of a tenant from any building
except on the grounds catalogued in clauses (a) to (g) of sub-section (2)
thereof. Section 21 provides for the eviction of a tenant if the building is bonafide
required by the landlord for his own use or the use of any of his family
member. The scheme of Chapters III & IV clearly shows that both the letting
of and eviction from the buildings to which the Act applies are regulated by
the provisions of the Act.
Section
39 of the Act with which we are mainly concerned finds its place in Chapter VII
entitled Miscellaneous and Transitional Provisions. That section reads as
under:
"Pending
suits for eviction relating to building brought under regulation for the first
time--In any suit for evic- tion of a tenant from any building to which the old
Act did not apply, pending on the date of commencement of this Act, where the
tenant within one month from such date of com- mencement or from the date of
his knowledge of the pendency of the suit, whichever be later, deposits in the
court before which the suit is pending, the entire amount of rent and damages
for use and occupation (such damages for use and occupation being calculated at
the same rate as rent) to- gether with interest thereon at the rate of nine per
cent per annum and the landlord's full cost of the suit, no decree for eviction
shall be passed except on any of the 190 grounds mentioned in the proviso to
sub-section (1) or in clauses (b) to (g) of sub-section (2) of Section 20, and
parties shall be entitled to make necessary amendment in their pleadings and to
adduce additional evidence where necessary." This Section carried an
explanation which came to be omitted by Section 8(iv) (and be deemed always to
have been omitted) of the Civil Laws Amendment Act, 1972. Section 40 lays down
that where an appeal or revision arising out of a suit for eviction of a tenant
from any building to which the old Act did not apply is pending on the date of
commencement of this Act, it shall be disposed of in accordance with the provi-
sions of Section 39, which shall mutatis mutandis apply.
The
plain reading of Section 39 makes it clear that the said section obliges the
court to refuse to pass a decree for eviction, except on any of the grounds
mentioned in the proviso to sub-section (1) or in clauses (b) to (g) of sub-
section (2) of Section 20, if the following four require- ments are satisfied:
(i) the
building is one to which the old Act (the U.P. (Temporary) Control of Rent and
Eviction Act, 1947--U.P. Act No. III of 1947) did not apply;
(ii) the
eviction suit must be pending on the date of commencement of the Act i.e., 15th
July, 1972:
(iii)
the tenant deposits in court the entire amount of rent/damages for the use and
occupation of the building together with interest at 9% per annum and the
landlord's full cost of the suit; and (iv) such deposit is made within one
month from the date of commencement of the Act or from the date of knowledge of
the pendency of the eviction suit, whichever is later.
The
benefit of Section 39 is extended mutatis mutandis to an appeal or revision
arising out of an eviction suit to which the old Act did not apply provided the
said appeal or revi- sion was pending on the date of commencement of the Act.
On a
plain reading of Section 39 it becomes clear that in a suit for eviction to
which the said provision applies, the Court trying the suit is 191 precluded
from passing a decree for eviction if the tenant deposits in court the entire
amount of rent and damages together with interest at 9% per annum and the
landlord's full cost of the suit within the time allowed but this embargo does
not apply if eviction is sought on the ground or grounds mentioned in the
proviso to Sub-section (1) or in clauses (b) to (g) of Sub-section (2) of
Section 20. The ground mentioned in the proviso to sub-section (1) of Sec- tion
20 is determination of tenancy by efflux of time where the duration of tenancy
is fixed under a compromise or adjustment arrived at with reference to a suit,
appeal, revision or execution proceeding which is recorded in Court or is
otherwise reduced to writing and signed by the tenant.
Sub-section
(2) of Section 20 enumerates the grounds in clauses (a) to (g) on which an
eviction suit can be rounded against a tenant. Clause (a) permits the
institution of a suit for eviction if the tenant is in arrears of rent for not
less than four months and has failed to pay the same within one month from the
date of service of a notice of demand upon him. The grounds in clauses (b) to
(g) are other than arrears of rent. From the fact that a suit rounded on anyone
or more of the grounds set out in the proviso to sub-section (1) and clauses
(b) to (g) of sub-section (2) of Section 20 is exempt from the operation of
Section 39, it would seem that the legislature desired to grant protection from
eviction where the same is sought on the sole ground of arrears of rent. That
is why in the exemption clause con- tained in Section 39, clause (a) to
sub-section (2) of Section 20 which permits eviction on the ground of arrears
of rent is deliberately and intentionally excluded and an embargo is created
against the passing of an eviction decree if the tenant deposits in court
within the time allowed the entire arrears of rent together with interest and
costs. If the suit is on anyone or more of the exempted grounds, the landlord
is permitted to proceed with the same, if necessary by effecting an amendment
in the pleading and by adducing additional evidence. Such a suit may be
continued and if the ground or grounds pleaded is/are proved, the court is enti-
tled to grant eviction. It, therefore, seems clear to us that the legislature
intended to protect eviction of a tenant on the ground of arrears of rent if
the tenant com- plied with the conditions of Section 39.
In the
present proceedings it is not disputed that the construction of the demised
premises was completed in 1967 and the letting had taken place in the same
year. It is also not disputed that immediately on the completion of ten years
the tenant deposited on 2nd
September, 1977 an
amount of Rs.4,005 being the arrears of rent inclusive of interest and cost. It
is not disputed that this payment was made within one month after the expiry of
the period of ten years stipu- lated in 192 Section 2(2) of the Act to take
advantage of Section 39 of the Act. The eviction suit was admittedly filed on 27th May, 1972 i.e. before the commencement of the
Act i.e. 15th July,
1972. There is also no
dispute that the provisions of the old Act did not apply to the suit. On these
undisputed facts the trial court gave the benefit of Section 39 and refused to
order ejectment of the tenant. The landlord filed a revision application which
was rejected by the Second Addi- tional District Judge, Bulandshahr, on 15th July, 1978. The High Court rejected the
landlord's further revision applica- tion on the ground that the question was
concluded by the decision in R.D. Ram Nath & Co. & Anr. v. Girdhari Lal
& Anr., [1975] A.L.J. 1. It is against the said decision that the present
appeal is preferred. The question then is wheth- er or not the provision of
Section 39 of the Act is attract- ed in the backdrop of the above facts.
We may
now consider the case law on the point to which our attention was called. In
Ram Swaroop Rai v. Lilavathi, [1980] 3 SCR 1034-[1980] 3 SCC 452, this Court
while con- struing section 2(2) of the Act observed that the burden is on the
landlord to show that his case falls within the exemption engrafted in the said
sub-Section. In the present case, since the facts are not in dispute the
question of onus recedes in the background. In Om Prakash Gupta etc. v. Dig Vijen: drapal Gupta etc., [1982] 3 SCR 491, a
three- Judge Bench had to consider the effect of section 2(2) read with section
39 of the Act. In that case, an eviction suit was filed against the
appellant-tenant on the ground that the provisions of the Act did not apply to
the demised shop and the tenant was therefore liable to be evicted. The Trial
Court decreed the suit on the finding that the construction of the suit shop
was completed in 1967 and since 10 years had not elapsed from the date of
completion of the construc- tion the provisions of the Act had no application.
The tenant carried the matter in revision but the judgment and decree of the
Trial Court was substantially maintained. The tenant thereupon moved the High
Court under section 115, C.P.C. The learned Single Judge who heard the revision
remitted the matter to the Trial Court for recording a finding as to on what
date the construction of the building could be said to have been completed
within the meaning of section 2(2) read with Explanation I(a) thereto. The
Trial Court returned a finding to the effect that the construction of the
disputed shop must be taken to have been completed on the date of the first
assessment, i.e. 1st
April, 1968, within
the meaning of the said provision.
The
tenant chal- lenged the finding on the ground that the date of occupation
should have been taken to be the date of completion of the construction and not
the date of the first assessment. The Division 193 Bench to which the case was
referred concluded that the construction of the shop must be deemed to have
been com- pleted on 1st April, 1968 i.e. at the date of the first assessment
and not at the date of actual occupation and hence the provisions of the Act
had no application to the building till the date of the decision of the
revision application on 23rd March, 1978 as the period of 10 years expired
later on 31st March, 1978. This Court upheld the finding that the date of
construction must be taken, as the date of first assessment i.e. 1st April,
1968 and not the date of actual occupation. To overcome this difficulty it was
contended on behalf of the tenant that on a correct reading of section 2(2) the
exemption engrafted therein would not embrace buildings constructed prior to
the en- forcement of the Act. This Court construing the language of section
2(2) of the Act held that the sub-section nowhere provided that the building
should have been constructed after the commencement of the Act; to so interpret
it would tantamount to adding words in it which was not permissible.
This
Court, therefore, negatived the contention that the exemption under the
sub-section did not embrace buildings constructed before the Act came into
force. As pointed out earlier the revision application was decided on 23rd
March, 1978 whereas the period of 10 years from the date of comple- tion of the
construction i.e. 1st April, 1968 was to end on 31st March, 1978 i.e. a week
later. Section 39 of the Act, therefore, clearly did not apply in the facts of
that case.
Secondly,
it was found that the suit was instituted on 23rd March, 1974 long after the
commencement of the Act and was therefore not pending on 15th July, 1972 to
attract the application of Section 39 of the Act. For these reasons, this Court
came to the conclusion that the appellant Om Prakash was not entitled to tile
protection of section 39 of tile Act. Two features which distinguish this case
from the case on hand are: (i) that the revision application was disposed of by
the High Court before the expiry of the moratorium period of 10 years granted
by section 2(2) of the Act; and (ii) the suit having been filed long after the
commencement of the Act on 15th July, 1972 could not be said to be pending at
the date of the commencement of the Act to enable the tenant to seek redress
under section 39 of the Act.
In Vineet
Kumar v. Mangal Sain Wadhera, [1984] 3 SCC 352, an , eviction suit was filed on
the ground of arrears of rent and damages for use and occupation of the demised
premises pendente lite. The tenant was inducted in the building stated to have
been constructed in 1971 on 7th February, 1972, on a monthly rent of Rs.250. The building in suit was assessed to
house and water tax on 1st
October, 197 1. The
tenant defaulted in the payment of rent 'despite service of notice dated 24th
194 March, 1977. Admittedly, the suit was filed after the com- mencement of the
Act. The point for consideration was wheth- er the building which was not 10
years' old on the date of the suit and was therefore exempted from the
operation of the Act, would be governed by it on the expiry of the period of 10
years pendente lite. Dealing with this contention this Court observed in paragraph
13 of the judgment as under:
"The
moment a building becomes ten years old to be reckoned from the date of
completion, the new Rent Act would become applicable." The decision in Om Prakash
Gupta's case (supra) was rightly distinguished on the ground that it was not neces-
sary in that case to deal with the question whether the tenant would be
entitled to the benefit of Section 39 as the building had not become ten years
old when the revision was disposed of by the High Court on 23rd March, 1978.
Dealing
next with the contention that the Court had to decide the case on the basis of
the cause of action that had accrued before the institution of the suit and not
on a new cause of action, this Court, relying on the observations to the effect
that subsequent developments can be looked into made in paragraph 14 of the
decision in Pasupuleti Venkates- warlu v.Motor and General Traders, [1975] 1
SCC 770, ob- served as under:
"Normally
amendment is not allowed if it changes the cause of action. But it is well recognised
that where the amend- ment does not constitute an addition of a new cause of
action, or raise a new case, but amounts to no more than adding to the facts
already on the record, the amendment would be allowed even after the statutory
period of limita- tion. The question in the present case is whether by seeking
the benefit of Section 39 of the new Act there is a change in the cause of
action." After referring to the case of A.K. Gupta & Sons v. Damodar
Valley Corporation, [1966] 1 SCR 796, this Court further observed:
"The
appellant in the present case only seeks the protection of the new Rent Act
which became applicable to the premises in question during the pendency of the
litigation. We see no reason why the benefit of the new Rent Act be 195 not
given to the appellant. Section 20 of the new Rent Act 'provides a bar to a
suit for eviction of a tenant except on the specified grounds as provided in
the section. Subsection (4) of Section 20 stipulates that in any suit for
eviction on the grounds mentioned in clauses (a) to sub-section (2), viz. the
arrears of rent, if at the first hearing of the suit the tenant in default pays
all arrears of rent to the landlord or deposits in court the entire amount of
rent and damages for use and occupation of the building due from him, such
damages for use and occupation being calculated at the same rate as rent
together with interest thereon at the rate of nine per cent per annum and the
landlord's cost of the suit in respect thereof after deducting therefrom any
amount already deposited by the tenant under sub-section (1) of Section 30, the
court may, in lieu of passing a decree for eviction on that ground, pass an
order relieving the tenant against his liability for eviction on that ground.
Sections 39 and 40 of the new Rent Act also indicate that the benefit of the
new Act will be given to the tenant if the conditions contemplated in those
sections are satisfied. Section 39 also indicates that the parties are entitled
to make neces- sary amendment in their pleadings and to adduce additional
evidence where necessary." On this line of reason this Court set aside the
judgment and decree of the High Court insofar as it related to evic- tion.
We
find, with respect, that Their Lordships committed an error in overlooking the
text of Section 39 of the Act. That section in terms says that the suit must be
pending at the commencement of the Act to seek the benefit of that provi- sion.
Admittedly, the suit in question was filed after the commencement of the Act
and hence the tenant was not enti- tled to the benefit of Section 39 of the
Act. But that apart, in a subsequent decision of this Court in Nand Ki- shore Marwah
v. Samundri Devi, [1987] 4 SCC 382, this Court dissented from the view in Vineet
Kumar's case on the ground that the attention of the Court was not drawn to Om Prakash
Gupta's case (supra) which specifically considered the provisions of the Act
and in particular the language of Section 39 of the Act to point out that in
order to attract that provision it must be shown that the suit was pending at
the commencement of the Act i.e. on 15th July, 1975. Refer- ring to Section 20
of the Act, which bars institution of a suit for eviction of a tenant except on
grounds specified in clauses (a) to (g) this Court observed as under:
196
"This clearly indicates that the restriction put under Section 20 is to
the institution of the suit itself and therefore it is clear that if the
provisions of this Act applied then no suit for-eviction can be instituted
except on the ground 'specified in the sub-sections of this sec- tion. Keeping
in view the language of this section if we examine the provisions contained in
sub-section (2) of Section (2) it will be clear that for a newly constructed
building the provisions of this Act will not apply for 10 years and therefore
so far as the restriction under Section 20 is concerned they will not apply and
therefore it is clear that within 10 years as provided for in sub-section (2)
of Section 2 restriction on the institution of suit as provided for in Section
20 subsection (1) quoted above will not be applicable and it is thus clear that
during the pendency of the litigation even if 10 years expired the restriction
will not be attracted as the suit has been instituted within 10 years and therefore
restriction as provided for in Section 20 cannot be attracted." It may
with respect, be pointed out that the comment that the Court's attention was
drawn to Om Prakash Gupta's case is not correct as this case is specifically
mentioned in paragraph 14 of the judgment in that case.
Lastly,
in Atma Ram Mittal v. Ishwar Singh Punia, [1988] 4 SCC 284, the
appellant-landlord had filed an eviction suit in respect of a shop which had
been rented to the respondent in 1978. The suit was filed on the ground that
the tenant was in arrears of rent from ist December, 1981 to 31st May, 1982 and the tenancy had been duly
terminated by a notice.
The
suit was filed under sub-section (3) of Section 1 of the Haryana Urban (Control
of Rent and Eviction) Act, 1973. That sub-section provided that "nothing
in the Act shall apply to any building the construction of which is completed
on or after the commencement of this Act for a period of ten years from the
date of its completion". Section 13(1) enumerated the usual grounds on
which possession of a building or land could be obtained from a tenant. In
November 1984, the tenant applied for dismissal of the suit on the ground that
the moratorium period of 10 years expired in June/984 since admittedly the
demised shop was constructed sometime in June 1974. Quoting the following
passage from Ram Swaroop Rai's, case (supra):
197
"The legislature found that rent control law had a chilling effect on new
building construction, and so, to encourage more building operations, amended
the statute to release, from the shackles of legislative restriction, 'new construc-
tions' for a period of ten years. So much so, a landlord who had let out his
new building could recover possession with- out impediment if he instituted
such proceeding within ten years of completion." this Court held as under:
"It
is well settled that no man should suffer because of the fault of the court or
delay in the procedure. Broom has stated the maxim "actus curiae neminem gravabit"--an
act of court shall prejudice no man. Therefore, having regard to the time
normally consumed for adjudication, the ten years' exemption or holiday from
the application of the Rent Act would become illusory, if the suit has to be
filed within that time and be disposed of finally. It is common knowledge that
unless a suit is instituted soon after the date of letting it would never be
disposed of within ten years and even then within that time it may not be
disposed of. That will make the ten years holiday from the Rent Act illusory
and provide no incentive to the landlords to build new houses to solve problem
of shortages of houses. The purpose of legislation would thus be defeated.
Purposive interpreta- tion in a social amelioration legislation is an
imperative irrespective of anything else." Proceeding further, this Court
said:
"We
are clearly of the opinion that having regard to the language we must find the
reason and the spirit of the law.
If the
immunity from the operation of the Rent Act is made and depended upon the
ultimate disposal of the case within the period of exemption of ten years which
is in reality an impossibility, then there would be empty reasons. In our
opinion, bearing in mind the well settled principles that the rights of the
parties crystallise to the date of the institution of the suit as enunciated by
this Court in Om Prakash Gupta v. Digviiendrapal Gupta, the meaningful con- struc-
198 tion must be that the exemption would apply for a period of ten years and
will continue to be available until suit is disposed of or adjudicated. Such
suit or proceeding must be instituted within the stipulated period of ten
years. Once rights crystallise the adjudication must be in accordance with
law." In order to appreciate the controversy in the correct perspective it
would not be out of place to notice the legislative changes. During the second
world war certain orders were issued under the Defence of India Rules, 1939,
relating to the control and letting of accommodations to cope with the paucity
of accommodation. This was followed by an ordinance promulgated in 1946 which
was repealed by the U.P. (Temporary) Control of Rent and Eviction Act, 1947
described as the Old Act by Section 3(h) of the Act. The measure which was
intended to be of a temporary character only continued till the passing of the
Act in 1972. When the old Act replaced the 1946 ordinance, the expectation was
that the acute shortage of accommodation was only a tempo- rary feature and
would disappear with the passage of time.
The
hope was belied and the stringent restrictions placed on the landlord's rights
in the matter of fixation and recovery of rent and eviction from the rented
premises had to be continued indefinitely. These restrictions discouraged
building activity which added to the already serious housing problem. There was
an urgent need to provide incentives and thereby encourage new constructions.
With that in view Section 2(2) provided that nothing in the Act shall apply to
a building during a period of ten years from the date on which its construction
is completed. In other words the legislature has relieved the owner of a new
building from the restrictive provisions relating to rent, etc., contained in
Sections 4 to 9 of the Act. So also such owners are granted a holiday or recess
of ten years from the restric- tive provisions regulating letting (Chapter III)
and Evic- tion (Chapter IV) contained in the Act. This freedom from the
operation of the Act for ten years is given for the obvious purpose of
encouraging building activity to ease the problem of scarcity of accommodation.
The provisions of the Act in this behalf must, therefore, be understood in this
background.
Section
2(2) in terms says that the provisions of the Act will not apply to new
constructions for a period of ten years from the date of completion of the
construction. Read positively it means that the Act will apply to such build- ings
on the expiry of the recess period. But how are suits already filed during the
recess period to be dealt with? Does 199 the Act offer any clue in this behalf?
In this connection the only provisions which come to mind are sections 39 and
40 of the Act. Section 39 deals with suits pending on the date of commencement
of the Act. Section 40 extends protec- tion to an appeal or revision pending on
the date of com- mencement of the Act provided it has arisen out of an evic- tion
suit filed against a tenant to which the old Act did not apply. Such an appeal
or revision has to be disposed of in the same manner as the suit is required to
be dealt with under Section 39 of the Act. In order to secure the benefit of
Section 39 or 40 it must be shown that the suit, appeal or revision was pending
on the date of commencement of the Act. Secondly, if the suit is rounded on the
allegation of nonpayment of rent, the tenant must, within one month from the
date of commencement of the Act or from the date of knowledge of the pendency
of the suit, deposit in court the entire amount of rent and damages for use and
occupation of the building with interest as prescribed and landlord's entire
cost of the suit, to take the benefit of the said provision. If both these
conditions are satisfied, the law, Section 39. mandates that no decree for
eviction shall be passed except on any of the grounds specified in the proviso
to sub-section (1) or clauses (b) to (g) of sub-section (2) of Section 20 of
the Act. Similarly Section 40 lays down that if an appeal or revision (arising
out of a suit for eviction of a tenant from any building to which the old Act
does not apply) is pending on the date of commencement of the Act, the benefit
of Section 39 will be available to the tenant. What these two provisions emphasise
is that in order to avail of the benefit engrafted therein, the proceedings
i.e., the suit, appeal or revision application must be pending at the date of
commencement of. the Act, i.e., 15th July, 1972, and the tenant must have deposited the arrears of rent and
damages together with interest and full cost of the landlord in the court
within one month from the date of such commencement. Once the four conditions
of Section 39 set out in the earlier part of this judgment are satisfied, the
court is debarred from passing a decree in ejectment except on any of the
grounds mentioned in the proviso to sub-section (1) or in clauses (b) to (g) of
sub-section (2) of Section 20 of the Act. Therefore, even in a suit, appeal or
revision application pending at the date of commencement of the Act, a decree
for eviction can be passed if the case is brought within the exemption clause
of Section 39 not- withstanding the fact that the tenant has deposited the full
amount of arrears of rent and damages together with interest and cost as
required by that section. It, therefore, seems clear to us on the plain
language of Section 39 of the Act that the legislature desired to grant
protection from evic- tion where the same was sought on the sole ground of
arrears of rent. In cases falling within the exemption clauses of that section,
the legislature has 200 itself permitted the landlord to proceed with the suit
and claim eviction on any of the grounds enumerated in the proviso to
sub-section (1) or in clauses (b) to (g) of sub- section (2) of Section 20 of
the Act, if necessary by making the required amendment in the pleadings and by
adducing additional evidence where necessary.
It
therefore seems to us that the legislature desired to limit the scope of the
application of Sections 39 and 40 to suits, appeals and revisions pending on
the date of com- mencement of the Act, i.e. 15th July 1972, relating to
buildings to which the old Act did not apply and to which the new Act was to
apply forthwith and not at a later date.
This
is clear from the fact that the section contemplates deposit of arrears of rent
and damages together with inter- est and cost within one month from "such
date of commence- ment" meaning the date of commencement of the Act. To
put it differently the section expects the tenant to make the deposit within
one month from 15th
July, 1972. This may
not be possible unless the Act is to apply to the building forthwith. Of course
the benefit of an extended date is given to those cases where the knowledge
about the pendency of the proceedings is gained after 15th July, 1972. For example where a suit is
actually filed before the commence- ment of the Act but the summons of the suit
is served in October 1972, the tenant would be entitled to make the deposit
within one month from the service of the summons to avail of the benefit of
this provision. So also it can apply to cases where the tenant had died before
the Act came into force or before the expiry of one month from the date of
commencement of the Act and the landlord took time to bring the legal
representative on record; in which case the legal representative would be
entitled to seek the benefit from the date of knowledge. Of course this benefit
would not be available where the tenant dies after the expiry of the period
within which the right is to be exercised. The same would be the case in the
case of an appeal or revision application. It seems to us that the legislature
intended to give the benefit of Sections 39 and 40 to suits, appeals or
revisions which were pending on 15th July, 1972 and in which the deposit came to be made within one month
from that date.
The
expression such preceding the word 'commencement' is clearly suggestive of the
fact that it has reference to the date of commencement of the Act and the
payment must be made within one month from such commencement. Unless we give
such a restricted meaning to the section we would not be able to advance the
legislative intent to relieve the landlords of new buildings from the rigours
of the Act. This interpreta- tion is also in tune with the ratio in Ram Swaroop
Rai's case (supra).
201
was argued that the words 'commencement of this Act' should be construed to
mean the date on which the moratorium period expired and the Act became
applicable to the demised buildings. Such a view would require this Court to
give different meanings to the same expression appearing at two places in the
same section. The words 'on the date of com- mencement of this Act' in relation
to the pendency of the suit would mean 15th July, 1972 as held in Om Prakash
Gupta (supra) but the words 'from such date of commencement' appearing
immediately thereafter in relation to the deposit to be made would have to be
construed as the date of actual application of the act at a date subsequent to
15th July, 1972. Ordinarily the rule of construction is that the same
expression where it appears more than once in the same statute, more so in the
same provision, must receive the same meaning unless the context suggests
otherwise Besides, such an interpretation would render the use of prefix 'such'
before the word 'commencement' redundant. Thirdly such an interpretation would
run counter to the view taken by this Court in Atma Ram Mittal's case (supra)
wherein it was head that no man can be made to suffer because of the court's
fault or court's delay in the disposal of the suit. To put it differently if
the suit could be disposed of within the period of ten years, the tenant would
not be entitled to the protection of Section 39 but if the suit is prolonged
beyond ten years the tenant would be entitled to such protection.
Such
an interpretation would encourage the tenant to pro- tract the litigation and
if he succeeds in delaying the disposal of the suit till the expiry of ten
years he would secure the benefit of Section 39, otherwise not. We are,
therefore, of the opinion that it is not possible to uphold the argument.
In the
above view of the matter we are of the opinion that the courts below committed
an error in giving the benefit of Section 39 of the Act to the tenant since
admit- tedly the tenant could not and had not made the deposit within one month
from the date of commencement of the Act on 15th July, 1972 but had made the
deposit within a month after the moratorium period expired in 1977. As stated
above the legislature intended to limit the application of Sec- tions 39 and 40
of the Act to cases where the Act became applicable immediately and the deposit
could be made within one month from its applicability and not to cases where
the moratorium period was to expire long thereafter.
For
the reasons stated above we think the courts below were wrong in the view they
took. We, therefore, set aside the judgment and decree of the courts below by
allowing this appeal. Having regard 202 to the fact that the respondent will
have to look for alter- native accommodation we give him a year's time to
vacate on condition that he pays all the arrears of rent and damages, if due,
within one month and files an undertaking in the usual form within even time.
In the circumstances of the case we think the parties may be left to bear their
own costs.
R.S.S.
appeal allowed.
Back