M/S. CANARA BANK v. DEVA PROPERTIES LIMITED
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- S. V. Bhatti
- Bechu Kurian Thomas
- Judgment Date
- 2021-06-24
- Court Decision / Holding
- Dismissed. The Court held there is no merit in the review petition and maintained the earlier restoration of Section 5(1); the review jurisdiction under Order 47 Rule 1 remains limited.
- Final Disposition
- Review petition dismissed
Parties to the Case
Appellants / Petitioners
- M/S.CANARA BANK
- THE GENERAL MANAGER, CANARA BANK, DESI ROAD, BANGALORE
- DEPUTY GENERAL MANAGER, CANARA BANK, DESI ROAD, BANGALORE
- THE MANAGER, CANARA BANK, SPENCER JUNCTION, THIRUVANANTHAPURAM
Respondents
- DEVA PROPERTIES LIMITED, ANNA SAALI, CHENNAI, REP. BY ITS MANAGING DIRECTOR, K.V.VENUGOPALAN NAIR, ORIGINALLY KNOWN AND INCORPORATED AS M/S.SPENCER ESTATES LTD., CHENNAI - 600 002
Legal Representation & Advocates
Counsels for Petitioners
- • S.R. Ramesh Babu
- • C. Murali Krishnan (Payyanur)
- • Abraham George Jacob
Counsels for Respondents
- • Praveen K. Joy
Case Synopsis & Summary
This is a Review Petition (RP No. 381 of 2021) preferred by Canara Bank and allied petitioners against an order in RCRev. 183/2020 of the High Court of Kerala, Ernakulam. The original case concerned fixation of fair rent under the Kerala Buildings (Lease & Rent Control) Act, 1965 (Sections 5(1), 5, 6, 8), with rent initially fixed at Rs. 40 per sq ft, later revised to Rs. 35 per sq ft on remand. The appellate and revisional courts upheld these findings, and the High Court reviewed the matter, emphasizing locational significance of the building near MG Road, Government Secretariat, and other landmarks to justify the rent level. The review petition centers on a contentious legal question: whether the High Court could review Isaac Ninan v. State of Kerala (1995) which had struck down Sections 5, 6, and 8 as unconstitutional, and whether Edger Ferus v. Abraham Ittycheria (2004) could restore Section 5(1) via severability, a view later affirmed by the Supreme Court in 2009. A Full Bench decision in Selvaraj v. U. Murugadas (2021) was cited to support the Court’s power to review its earlier decision. Ultimately, the Court held there is no merit in the review petition and dismissed it, keeping the earlier restoration of Section 5(1).
Provisions of Law Cited
Legal Doctrines & Maxims
- Doctrine of severability
- Limited nature of the review jurisdiction under Order 47 Rule 1
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioners argued that the judgment in Isaac Ninan v. State of Kerala (1995) declared Sections 5, 6, and 8 unconstitutional, and the subsequent Edger Ferus v. Abraham Ittycheria (2004) pertained to severability but could not restore Section 5(1) by virtue of the challenged ruling. They contended that the Division Bench erred in reviewing Isaac Ninan’s decision and restoring Section 5(1); Selvaraj v. U. Murugadas (2021) was invoked to show that review power exists but should be exercised within narrow limits. The petition stressed that continuing to fix rent under Section 5(1) would defeat the Act’s mischief and court prerogatives were inappropriately expanded. They tried to limit retroactive restoration and questioned the scope of the review jurisdiction under Order 47 Rule 1, asserting the grounds were not properly argued earlier and that the remedy should be legislative rather than judicial revision.
Contentions of Respondents
The respondent-bank argued that Edger Ferus had severed the unconstitutional parts of the Act from those functioning under Section 5(1) and that the power to fix fair rent must exist to preserve the Act’s purpose. They relied on Selvaraj’s concurrence that the judiciary may review its own decisions when required, and that the Court’s intervention was legitimate to ensure continuity in rent fixation. They contended that the doctrine of severability is applicable, and the Supreme Court’s affirmation of Edger Ferus supports restoring 5(1) while leaving the rest unconstitutional. The petitioner’s characterization of Isaac Ninan’s decision as wholly unconstitutional was argued as misrepresenting the scope of earlier rulings and the necessity of a functional framework for rent control.
Cited Precedents (4)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Isaac Ninan v. State of Kerala | 1995 (2) KLT 848 | Partly Overruled / Limited | Originally held Sections 5, 6, 8 unconstitutional; later Edger Ferus restored 5(1) via severability, with Selvaraj upholding the Court’s power to review the Isaac Ninan decision, thus limiting the original ruling. |
| Edger Ferus v. Abraham Ittycheria | 2004 (1) KLT 767 | Positive | Restored Section 5(1) and was later affirmed by the Supreme Court (2009 (4) KLT 673 (SC)). |
| Selvaraj v. U. Murugadas | 2021 (3) KHC 292 | Positive | Full Bench held the Court has power to review its earlier decision and approved the judgment in the Isaac Ninan review, supporting the ongoing mechanism for rent fixation. |
| Edger Ferus v. Abraham Ittycheria (SC affirm) | 2009 (4) KLT 673 (SC) | Positive | Supreme Court affirmed the Edger Ferus decision that allowed restoration of Section 5(1) under severability. |
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