High CourtDivision BenchAppeal dismissed; parties' agreement treated as...

M. S. Jain v. R. R. Vohra

Case / Petition Number:Civil Appeal No. 818 of 1978
Neutral Citation:[1980] 2 SCR 143

Case Details & Bench

Court
High Court
Hon'ble Judges
  • V. R. Krishna Iyer
  • R. S. Pathak
Judgment Date
1979-11-19
Court Decision / Holding
Appeal dismissed; the Court disposed of the appeal by dismissing it, and recorded the parties’ Agreement to sell the property as an undertaking to the Court, thereby giving effect to the enlightened settlement.
Final Disposition
Appeal dismissed; parties' agreement treated as an undertaking to the Court.

Parties to the Case

Appellants / Petitioners

  • M. S. Jain

Respondents

  • R.R. Vohra

Legal Representation & Advocates

Counsels for Petitioners

  • • G. L. Sanghi
  • • B. Datta
  • • K. K. Manchanda
  • • Ishwar Chand Lain

Counsels for Respondents

  • • P. Govindan Nair
  • • N. Sudhakaran

Case Synopsis & Summary

This appeal concerns eviction protection under the East Punjab Urban Rent Restriction Act, 1949, as extended to Chandigarh from November 4, 1972. The appellant, an advocate, was a tenant of a building owned by the respondent. The landlord sued for possession and the matter was settled by a compromise decree requiring the appellant to vacate on a fixed date. After extension, Section 13 barred eviction except under its terms; the central issue was whether protection applies to a decree obtained before extension but executed after, or whether the compromise decree terminates the tenancy. The appellant argued that the Act’s inclusive definition of “tenant” covers a person continuing in possession after termination in the tenant’s favour, and that eviction is thereby precluded; the decree’s effect cannot terminate that status under the Act. The respondent contended that the compromise decree terminates the tenancy, and eviction should be allowed in light of the decree, with Section 13 not applying to pre-extension decrees in a given interpretation. The Court adopted a liberal construction of rent-control legislation, reflecting the social objective of alleviating housing scarcity; it held that the term “tenant” includes a former tenant who continues in possession, and that the protections of Section 13 operate to keep eviction at bay. Subudhi’s case was distinguished on the ground of differing statutory text. Ultimately, the appeal was dismissed, but the matter culminated in an enlightened settlement: the parties recorded an agreement to sell the property, treated by the Court as an undertaking.

Provisions of Law Cited

East Punjab Urban Rent Restriction Act, 1949 – Section 2(1)East Punjab Urban Rent Restriction Act, 1949 – Section 3East Punjab Urban Rent Restriction Act, 1949 – Section 13(1)Punjab Urban Rent Restriction Act, 1947 – Section 13

Legal Doctrines & Maxims

  • Rent control legislation is a beneficial measure whose construction must be liberal to fulfill the statutory purpose.
  • Interpretative doubt belongs to the potential evictee unless the language plainly provides eviction.
  • The expression 'tenant' includes a tenant continuing in possession after the termination of the tenancy in his favour; the inclusive clause protects ex-tenants with ongoing nexus.
  • Subudhi v. Gopinath (1968) 2 SCR 559 distinguished owing to differing statutory definitions; social-justice oriented statutory interpretation prevails.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that under the East Punjab Urban Rent Restriction Act, 1949, the definition of 'tenant' is inclusive and extends to ex-tenants who continue in possession after termination in the tenant's favour. Because Section 13 bars eviction of tenants, any decree for eviction passed prior to the extension or after should be interdicted by the Act's protections. If the compromise decree terminates the tenancy, the status of the appellant as a tenant would still be preserved by the Act, and eviction cannot proceed. The respondent contends that the compromise decree ends the tenancy and the decree should be implemented regardless of Section 13. The liberal interpretation of the Act in a housing-starved country requires adherence to the social objective of rent control and, where necessary, extension of protections to cover ex-tenants with ongoing possession.

Contentions of Respondents

The respondent argues that a compromise decree can terminate the tenancy and that eviction should follow according to the decree, especially if it predates the extension; the Act’s protective shield should not unreasonably inhibit the landlord’s rights; the Chandigarh High Court’s contrary view should not prevail; the statutory text should be applied to promote orderly property rights and eviction where decrees predate the extension.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Subudhi v. Gopinath(1968) 2 SCR 559DistinguishedThe judgment distinguished Subudhi's case on the ground that it involved a different statutory framework; the current Act's broader inclusive definition of 'tenant' and the presence of Section 13 led to a different interpretation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

' 141 MANI SUBRAT JAJN ###### _v._ RAJA RAM VOHRA _November_ 19, 1979 ###### [V. R. KRISHNA IYER AND R. S. PATHAK. JJ.] 8 _East_ _Punjab_ _Urban_ _Rent Restriction Act,_ 1949 _Section_ 2(1), _3,-"Tenant" ......_ _Meaninc_ _of-Scope_ _of._ The appellant, an Advocate, tenanted aJ building belonging to the respondent. The i-espondent sued the oppellant for possession Of the premi!es and by ij ###### compromise, the Appellant •greed to vacate the premises by a certain date. . A C decree in terms thereof was passed. Then the Act came into being which by extension Of its opemtion applied to Chandigarh with effect from 4-11-1972. ·It was contended that (i) had the decree been passed but a few days later, the Act would have admittedly interdicted the eviction because of Section 13 thereof; and had the decree been made and executed a day before the extension of the Act, the years of Jitigative procrastination of eviction might have been **D** impossible. The salvation of the appellant is certain if he be a '1enant" within the meaning of the Act and his eviction is certain if the definition of tenant **doea** **not cover him** **in** **its** **amplitude** **and** **(ii)_** **tb&t** **the effect** **of** **compromise** **decree** **is** **that' the tenancy** **of** **the** **appellant has been terminated.** Accepting the appeal, **HELD : An** **adTocate,** **under** **this** **Act, enjoys special protection. It** **is** **too** platitudinous to preach and too entrenched to shake the proposition that rent control legislation in a country of terrible accommodation shortage is a beneficial measure whose construction must be liberal enough to fulfil the statutory purpose and not frustrate it. So construed, the benefit of interpretative doubt belongs to the potential evictee unless the language is plain and provides for eviction. That intendment must, by interpretation, be effectuated. This is the essence Of '"'1t control jurisprudence. [143 E-GJ **The** **expression** **'tenant** **includes** **a** **'tenant'** **continuing** **in** **possession** **after** **the** **termination** **of** **the** **tenancy** **in** **his favour'.** **It** **thus** **fucludes,** **by** **express** **provision,** **a** **quondam** **tenant** **whose** **nexus** **with "the** **property** **is** **continuance** **in** **pmsession.** The fact that a decree or any other process extingnishes the tenancy under the general law of real property does not terminate the status of a t~nant under the Act having regard to the carefully drawn inclusive clause. _Subudhi"s_ _case_ [1968) 2 S.C.R. _559_ related to a statute wh<ll"e the definition in s. 2(5) of that Act expressly included "any person against whom a suit for ejectment is pending in a court of competent jurisdiction" and more pertinent to the point specially **excluded** **"a** **person** **against** **whom** **a decreei** **or** **order** **for** **eviction** **has- been** **made** by such a court." [144 E-G] (ii) The text, reinforced by the context, especially of section 13, convincingly **includes** **ex·tenants** **against** **whom** **decrees** **for** **eviction** **might** **have** **been** **passed.** **F** #### **G.** ###### **R** T ###### • ' _.,._ **A** **B** SUPREME COURT REPORTS [1980] 2 s.c.R·. **whether on compromise or otherwise.. Nobody** **has** **a case that the appellant** **is:** **not continuously in possession.** **The** **conclusion** **is** **inevitable that he remains** **a.** **tenant and enjoys immunity under section** **13 ( 1)** **of** **the Act.** **The** **execu·tion** **proceedings** **must** **therefore** **fall,** **because** **the** **statutory** **road-block** **cannot** **be** remo¥ed. [A conffict is best resolved by the parties as both sides in the present **case have produced an enlightened settlement** **by** **an agreement to sell the pro-** perty in dispute by the rei;pondent to the appellant.) [144 G-Hl CIVIL APPELLATE JURISDICTION: Civil Appeal No. 818 of 1978 Appeal by Special Leave from the Judgment and Order dated 10-4-1978 of the Punjab and Haryana High Court in Chi) Revision No. 458 of 1978 (0 & H) ### c G. L. Sanghi, B. Datta, K. K. Manchanda and Ishwar Chand lain for the Appellant. _P._ _Govindan_ _Nair_ and _N._ _Sudhakaran_ for the Respondent. The Judgment of the Court was delivered by **D** **E** **F** G **H** - T KRISHNA IYER, J.-The Holmesian homily that the life of the Jaw is not logic but experience directs our humane attention, in this appeal against an order ill execution for evictiO)l of an advocate in] Chandigarh, affirmed by court after court, to a reading of the textual definiton of 'tenant' [s.2 (i)] in the context of the broad embargo on ejectment of urban dwellings in s. 13 of the East Punjab Rent Restriction Act, 1949 (hereinafter referred to as the Act). Chandigarh, a blossom in the desert, has served as the capital of two States; and, with explosive expansion, thanks to the marvellous human resources of Punjab & Haryana, become a crowded, though not yet chaotic, city with chronic accommodation scarcity. Consequently, _laissez_ _faire_ law, in the matter of landlord's right to evict his tenant, was subject to the act with effect from 4-11-1972. From then on, no tenant could be dispossessed except on the ground set out in s. 13. But if a landlord had already obtained a decree for eviction earlier to this dateline, was he to be restrained by s. 13 which forbade even execution of decrees against tenants, or was he free from the statutory fetters because the defendant had ceased to be a tenant on the passing of the decree, having forfeited his status by the destructive effect of a compromise, as in this case? An advocate, under this Act, belongs to a 'scheduled' class of tenants whose dwellings enjoy special protection. The appellantadvocate tenanted a building belonging to the respondent. The latter sued for possession and the former, with refreshing realism, entered into a compromise and agreed to vacate by a certain date on certain tenru; regarding rent which do not bear upon the dispute before us. M. s. JAIN _v._ R. R. VOHRA _(Krishna Iyer,_ J.) 143 A decree in terms thereof was passed on 9-10-1972. Then came the Act, which by extension of its operation, applied to Chandigarh with effect from 4-11-1972. Had the decree been passed but a few days later, the Act would have admittedly interdicted the eviction because of s. 13, Had the decree been made and executed a day before the extension of the Act, the years .of litigative procrastination of eviction might have been impossible. These mystic 'might-have-beens' are gambles of time which spill beyond our jurisdiction and statutory cognisance. The salvation of the appellant is certain if he be a 'tenant' within the meaning of the Act. His eviction is certain if the definition Of 'tenant' does not ensconce him in its amplitude. Decisions of peripheral relevance, but of different kernel, have been cited on both sides, and the one which has tilted the scales in the Chandigiirh jurisdiction in favour of decree-holder-landlord is _Subudhi's_ _case(')_ Precedents are law's device to hold the Present prisoner of the Past ~nd must bind only if squarely covered. _Subudhi' s_ _case('')_ decided under the Orissa House-Rent Control Act, 1958, is not one such. The key word is 'tenant' and if under the Act the appellant fills the bill definitionally he is immune from eviction when read with s. 13. _Subudhi_ (supra) turns on a significantly different definition which cuts down the wide connotation by a tail-end qualification. The semantic sweep of s. 2 (i). in our Act, by clear contrast takes in a wider group and we have no indication in that judgment whether a provision like s. 13 which makes the restriction applicable also to decrees was present in the Act there debated. Therefore, we side-step those rulings and go straight to the two provisions and their meaning in the statutory setting. It is too platitudinous to preach and too entrenched to shake, the p proposition that rent control legislation in a country of terrible accommodation shortage is a beneficial measure whose construction must be liberal enough to fulfil the statutory purpose and not frustrate it. So construed, the benefit of interpretative doubt belong.~ to the potential evictee unless the language is plain and provides for eviction. That intendment must, by interpretation, be effectuated. This is the essence G of rent control jurisprudence. Section 2(i) reads : A B ## c D ## • #### ' #####, ####,., "tenant" means any person by whom or on whose account rent is payable for a building or rented land and _include1_ a tenant continuing in possession _after_ _the_ _termina-_ (1) _K.R. Suhudhi_ v. _Gopinath_ [1968] 2 S.C.R. 559. H A . 144 SUPREME COURT REPORTS [1980] 2 s.c.R. _tion of the_ tenancy in his favonr, bnt does not include a person placed in occupation of a building or rented land by its tenant, unless with the consent in writing of the landlocd, or a person to whom the collection of rent or feea in a public market, cart-stand or slaughter house or of rents for shaps has been farmed out or leased by a municipal, town or notified area committee; { empha.sis added) In this context, we may also read s. 13 {1) which is integral to and makes impact upon the meaning of s. 2{i) even if there be any # c marginal obscurity. ###### • ##### • ###### ' ## '·· 0 E F G H 13. _EYiction_ _of_ _tenants.-(1)_ A tenant in possession of a buiding or rented land shall not be evicted therefrom in execution of a decree passed before or after the commencement of this Act or otherwise and whether before or after the termination of the tenancy, except in accordance with the provisions of this Section, or in pursuance of an order made under section 13 of the Punjab Urban Rent Restriction Act, 1947, 3.! subsequently amended. (emphasis added) The expression 'tenant' includes 'a tenant continuing in possession after the termination of the tenancy in his favour'. It thus includes, by express provision, a quondam tenant whose nexus with the property is continuance in possession. The fact that a decree or ariy other process extinguishes the tenancy under the general law of real property does not terminate the status of a tenant under the Act having regard to the carefully drawn inclusive clause. Even here, we may mention by way of contrast that _Subudhi's case_ (supra) related to a statute where the definition iu s. 2 (5) of that Act expressly included "any person against whom a suit for ejectment is pending in a court of competent jurisdiction" and more pertinent to the poirit specially excluded "a person against whom a decree or order for eviction ha·s been made by such a court." We feel no difficulty in holding that the text, rein· forced by the context, especially s. 13, convincingly includes ex-tenants against whom decrees or eviction might have been passed, whether on compromise or otherwise. The effect of the compromise decree, in counsel's submission, is that the tenancy has been terminated. Nobody has a case that the appellant is not continuously in possession. The conclusion is inevitable that he remains a tenant and enjoys immunity under s. 13 (1). The execution proceedings must, therefore, fail because the statutory road-block cannot be removed. Indeed, an application under the Act was filed by the landlord-defendant which #### • ###### M. s . .JAIN v. R.R. VOHRA (Krishna Iyer, 1.) . 145 was dismissed because the ground required by the Act was not made A out. We have been told by counsel, and supporting citations have been brought to our notice, that the High Court at Chandigarh has taken the contrary view for some time. It is better to be ultimately right ratl!et than consistently wrong. The interpretation we have given in J s. 2(i) is strengthened by our conviction that a beneficial statute intended to quieten a burning issue affecting the economics of the human conditlpn in India should be so interpreted as to subserve the social justice purpose and not to subvert it. Even apart from this. valuevision, the construction we have adopted is sustainable. We have laid down the law on the disputed questions raised before us, but we are not called upon to make any decree pursuant to our decision because, taking the clue from certain observations of the court in the course of the arguments, the parties have come together #### c and reached a fair solution of the Jl1'0blem revolving round the house property. A conflict is best resolved by the parties pursuading them- D , selves to see the futility of continued dispute and enlightened by the law settled the controversy in a manner that promotes the interests of both. We find that both sides in the present case have produced an enlightened settlement and pnt in the court an agreement to sell the property covered by the appeal by the landlord to the tenant. A copy of the agreement has been put in the record which is annexed as E appendix to this Judgment. In this view we dispose of the appeal by formally dismissing it ~ because there is no longer any relief needed in this appeal. ###### ORDER F The Judgment having been delivered counsel for the respondent represented that the Agreement, which has been made and appendixed to the Judwent be treated as an undertaking mutually between the parties to the Court. Counsel on both sides have no objection to this ('.OUrse and so we record the Agreement incorporated in the judgment G as an undertaking to the Court made by the parties in regard to their respective obligations. ·-~ _,'."-· N.K.A. _Appeal_ _dismissed_ H