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  • provisions of s. 50 of the Rent Restriction Act,
  • provisions of s. 28. Section 28
  • ss. 12 and 13 of the Rent Act,
  • s. 28. The Rent Act
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Citation Codes
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citation codes
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  • provisions of s. 50 of the Rent Restriction Act,
  • provisions of s. 28. Section 28
  • ss. 12 and 13 of the Rent Act,
  • s. 28. The Rent Act
Smart Summary

Judgment Summary — Chief Justice Chagla

Factual and Procedural Background

The plaintiff claimed to be a sub-tenant of the defendant. The defendant had earlier instituted a suit in the Small Causes Court seeking ejectment of Anna Adgauda Patil, alleging she was his sub-tenant. Patil admitted the allegation and agreed to vacate; the Small Causes Court passed an order on 14 May 1945 directing Patil to vacate. The defendant obtained a warrant of possession and, when the plaintiff obstructed execution, served an obstructionist notice. The plaintiff was ordered to hand over possession to the defendant.

The plaintiff then filed the present suit under Order XXI, rule 103 seeking (a) a declaration that he was the tenant of the defendant and entitled to remain in possession, and (b) a declaration that the defendant was not entitled to execute the order of the Small Causes Court. After filing, but before obtaining a stay of execution, the defendant obtained possession; the plaintiff sought to amend the plaint to pray for restoration of possession.

The trial court (learned Judge) heard a preliminary issue on jurisdiction and held that this Court had no jurisdiction and that the suit must be transferred to the Small Causes Court under section 50 of the Rent Restriction Act (which required transfer of certain suits to the courts established under section 28). The plaintiff appealed from that finding.

Attorneys recorded in the opinion: for appellant — Manilal, Kher, Ambalal & Co.; for respondents — Khunderao, Laud & Co.

Legal Issues Presented

  1. Whether this Court (the High Court) had jurisdiction to try the suit or whether jurisdiction was ousted by section 28 (and the transfer provisions, including section 50) of the Rent Restriction Act.
  2. Whether the suit filed by the plaintiff is a suit for possession falling within the exclusive jurisdiction of the special Courts created by section 28, or whether it is substantially a suit for declaration of title (so that ordinary Courts retain jurisdiction).
  3. If the suit is not one on title, whether it nonetheless falls outside section 28 because it is essentially an action in trespass (i.e., the tenant suing a landlord who is a trespasser), and therefore triable by ordinary courts rather than the special Rent Act courts.
  4. How section 28-A (and section 29-A) of the Rent Restriction Act affects the competency of ordinary courts to try substantial questions of title to premises when such questions arise in suits between landlords and tenants.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Raghubir Narayan Lotlikar v. G.A. Fernandes The case articulated tests for determining when section 28 applies: (1) relationship of landlord and tenant; (2) the suit is for possession; and (3) the suit concerns premises to which Part II of the Rent Act applies. It was also treated as a decision that, where a landlord becomes entitled to possession by reason of ss. 12 and 13 of the Rent Act, such suits fall under the special Court's jurisdiction. The Court relied on and distinguished the tests laid down in Raghubir Narayan Lotlikar. It held that those three tests are not conclusively determinative in every context — specifically, where a tenant sues the landlord and the dispute is substantially one of title, the mere satisfaction of the three tests does not automatically bring the suit within section 28. The Court applied the precedent to explain that section 28 must be strictly construed and that suits substantially about title remain triable by ordinary competent courts.

Court's Reasoning and Analysis

The Court began by noting the statutory scheme: section 28 creates special Courts with exclusive jurisdiction over certain classes of suits under the Rent Restriction Act, and section 50 required transfer of relevant pending suits to those Courts. Because section 28 is in derogation of the High Court's ordinary jurisdiction, it must be strictly construed; the Court therefore read section 28 in light of the Act's preamble and overall object (consolidating law relating to rents, repairs, hotels, lodging houses and evictions; defining new liabilities of landlords and new rights of tenants).

The Court considered its earlier decision in Raghubir Narayan Lotlikar v. Fernandes, where three tests were applied to determine whether a suit fell within section 28. The present learned Judge below had applied the same three tests and concluded that jurisdiction belonged to the special Court. The appellate Court accepted that the three tests are relevant but held they are not exhaustive when a tenant sues a landlord.

The Court analysed the nature of the plaintiff's suit. Although the parties were landlord and tenant, the amended plaint sought possession only after the plaintiff had been dispossessed pending suit. The Court found that the suit was "substantially a suit on title" — the plaintiff sought a declaration that he was a sub-tenant; possession was sought only as an ancillary relief contingent upon a declaration of title. The Court emphasized that a suit which is essentially to establish title remains triable by competent ordinary courts.

The Court relied on section 28-A (quoted in the opinion) which provides that nothing in sections 28 or 29 shall bar a party in proceedings mentioned therein, in which a question of title to premises arises and is determined, from suing in a competent court to establish title. The Court read section 28-A (and section 29-A as explained) to mean that jurisdiction to try substantive title disputes was not taken away by the Act. Thus, if the High Court is the competent court to try the title question, the incidental prayer for possession does not divest it of jurisdiction and transfer to the Small Causes Court is not required.

The Court addressed an alternative characterization: even if the suit were not treated as a title suit, the plaintiff's cause of action was essentially one in trespass — he alleged wrongful dispossession and sued the defendant as a trespasser. The Court observed that remedies for trespass are ordinary rights under the general law, not newly conferred rights under the Rent Act. Although the Rent Act confers several special rights on tenants (the opinion cites ss. 11, 12, 13, 16, 17, 17-A, 20 as examples), a straight action in trespass by a tenant against a landlord does not necessarily invoke those special statutory remedies or the Rent Act's exclusive jurisdiction.

On both grounds — (1) the suit being substantially one for title, and (2) the suit being essentially an action in trespass under ordinary law — the Court concluded that section 28 did not oust the jurisdiction of the High Court in respect of this suit.

Holding and Implications

Holding: The appeal was allowed. The Court set aside the order of the learned Judge below and directed that the suit should proceed to trial on its merits. To emphasize the core ruling:
APPEAL ALLOWED; ORDER OF THE LEARNED JUDGE BELOW SET ASIDE; SUIT TO GO DOWN FOR TRIAL ON MERITS.

Costs and immediate consequences (as recorded in the opinion):

  • The appellant must pay the costs of this appeal (the opinion notes this in view of an order made on 14 April 1952).
  • The respondent must pay to the appellant the costs of the issue that was tried by the learned Judge below.
  • Costs to be set off.

Implications: The decision's direct effect is to preserve the High Court's jurisdiction to try the plaintiff's suit for declaration of title (and ancillary possession) and to permit the suit to proceed to trial in this Court. The opinion does not purport to lay down a broader new rule beyond clarifying that section 28 must be strictly construed and that substantive title disputes and ordinary trespass actions are not automatically ousted to the Rent Act's special Courts. No broader precedent-extinguishing consequence was announced beyond these conclusions.

Appeal allowed.
P.M.P

    Madhavprasad Kalikaprasad Nigam v. Indirabai Widow Of S.G. Chandavarkar

    Chagla, C.J:—

    This appeal arises out of a suit filed by the plaintiff under O. XXI, r. 103 and the suit came to be filed under the following circumstances.

    The plaintiff's case was that he was a sub-tenant of the defendant and the defendant filed a suit in the Small Causes Court for ejecting one Anna Adgauda Patil alleging that Patil was his sub-tenant. Patil admitted the fact and agreed to vacate the premises. Thereupon an order was passed by the Small Causes Court on May 14, 1945, ordering Patil to vacate the premises. The defendant obtained a warrant of possession and the plaintiff offered obstruction. The defendant took out an obstructionist notice and the plaintiff was ordered to hand over possession to the defendant. The plaintiff thereupon filed the present suit. The plaintiff in the suit prayed for a declaration that he was the tenant of the defendant and as such tenant entitled to remain in possession of the premises. He also sought for a declaration that the defendant was not entitled to execute the order of the Small Causes Court. After the suit was filed and before the plaintiff could get a stay of execution of the order, the defendant obtained possession of the premises, and, therefore, the plaintiff asked for an amendment of the plaint and prayed that the possession which had been taken away from him should be restored to him.

    The learned Judge tried the preliminary issue as to whether this Court had jurisdiction to try the suit, and the learned Judge came to the conclusion that this Court had no jurisdiction and that the suit had to be transferred to the Small Causes Court under the provisions of s. 50 of the Rent Restriction Act, and it is from that finding that this appeal is preferred.

    Under s. 50 suits which were pending in this Court and which related to the recovery or fixing of rent or possession of any premises had to be transferred to and continued before the Courts which would have jurisdiction to try such suits, and the Courts which would have jurisdiction are the Courts set up under the provisions of s. 28. Section 28 creates new Courts with exclusive jurisdiction to try certain class of suits and proceedings and it is clear that to the extent that s. 28 is in derogation of the jurisdiction of the. High Court it must be strictly construed. In construing s. 28 we cannot ignore the preamble which gives an indication as to the object with which the Act was passed. It is true that when the language of a section is clear the Court ought not to look at the preamble in order to cut down the effect or the scope of the section. But when a Court with exclusive jurisdiction is created and when the jurisdiction of the High Court is excluded, and when the Court is called upon to construe s. 28 strictly, it is perfectly permissible to look at the preamble in order to ascertain what was the object with which the special Court was created, and also to look at s. 28 in its proper context and setting. Now, the object with which the Act was passed was to consolidate the law relating to the control of rents and repairs of certain premises of rates of hotels and lodging houses and of evictions, and the Act deals with various questions that affect the relationship between landlord and tenant. On the one hand, the Act imposes limitations upon the rights of a landlord which he possessed under the ordinary law. On the other hand, it confers new rights upon the tenants which they did not have under the ordinary law, and the Act is primarily intended to define these new liabilities imposed upon the landlord and the new rights conferred upon the tenant, and the special Court which is set up under s. 28 is primarily intended to deal with all the questions that arise under the Act.

    We had occasion to point out in Raghubir Narayan Lotlikar v. G.A Fernandes that it is not every suit for possession between a landlord and a tenant which necessarily falls within the purview of s. 28. Mr. S.T Desai is right when he points out that in that particular case we were dealing with the suit by a landlord against a tenant and we were not called upon to consider what the position in law would be if a tenant filed a suit against his landlord. But certain tests which we laid down in that case are equally applicable when a suit is filed by a tenant against a landlord. In that case we held that s. 28 applies only to those suits between a landlord and a tenant when a landlord has become entitled to possession or recovery of the premises demised. When a landlord so becomes entitled, the question arises whether he is entitled to possession by reason of ss. 12 and 13 of the Rent Act, and, therefore, when a landlord files a suit for possession under those sections, the Court is called upon to construe the provisions of the rent act and such a suit must obviously be tried by the new Court set up under s. 28. But there may be other suits which a landlord may file against a tenant for possession which may not require the consideration of the provisions of the rent act at all. In that particular case, in Raghubir Narayan Lotlikar v. Fernandes we were dealing with a suit filed by a landlord for specific performance against his tenant, and the landlord prayed for possession against the tenant as a result of an agreement entered into between them, and the learned Judge in deciding the suit applied the three tests which according to him were the only tests that should be applied in considering whether s. 28 came into operation or not. The three tests suggested by the learned Judge were that the relationship between the parties should be that of landlord and tenant, that the suit must be for possession, and that the suit must be in respect of the premises to which part II applies, and the learned Judge took the view that as soon as those three tests were satisfied, no other inquiry need be made and the suit must be transferred to the Court set up under s. 28. Now, in the present case the learned Judge has applied the three identical tests. No blame whatever attaches to the learned Judge because, in fairness to him, it must be stated that our decision in Raghubir Narayan Lotlikar v. Fernandes was not before him when he decided this case. Therefore, when we are dealing with a suit by a tenant against a landlord, it is not sufficient to inquire whether the three conditions just mentioned have been satisfied or not. It is true that in this case the parties arrayed against each other are landlord and tenant. It is equally true that after the amendment of the plaint the tenant asked for possession. It is equally true that the premises in question are premises to which Part II applies. But even if all these conditions are satisfied, it does not necessarily follow that the suit we are considering is a suit to which s. 28 applies. In our opinion this suit substantially is a suit on title. It is not a suit for possession. This is not a case where the relationship of landlord and tenant is admitted and the tenant comes to Court for possession. This is a case where the relationship is in dispute, and what the plaintiff wants from the Court is the establishment of his title that he is the sub-tenant of the premises. It is only when the title is established that he can ask for any relief at all. When he originally filed the suit he would have been content with a mere declaration of title. All that he wanted was that his right to continue in possession should be established. By reason of certain fortuitous circumstances by which he lost possession pending suit he was compelled to ask for an amendment and ask for possession as an ancillary relief. But the mere fact that he asked for possession did not in any way change the nature of the suit. The suit continued to remain a suit for a declaration of the plaintiff's title. The plaintiff would only obtain relief for possession provided the Court gave him the declaration that he sought and provided the Court held that he was a sub-tenant and entitled to be in possession as a sub-tenant. Therefore, in our opinion, it is clear that the suit is substantially a suit for a declaration of title and possession is an ancillary relief which is sought by the plaintiff.

    With very great respect to the learned Judge, we do not for a moment accept the proposition that even where a suit is substantially for title and possession is asked merely as an ancillary relief, even so by reason of s. 28 the suit must be transferred to the special Court set up under s. 28. In this connection s. 28-A may be looked at. That section provides that,

    “Nothing contained in s. 28 or 29 shall be deemed to bar a party to a suit, proceeding or appeal mentioned therein in which a question of title to premises arises and is determined, from suing in a competent court to establish his title to such premises”.

    Therefore, where the special Court under s. 28, or the appeal Court under s. 29, in dealing with suits referred to in s. 28 incidentally decided the question as to title, the party to those proceedings is not barred from agitating the title to the suit premises in a competent Court. Now, it is not disputed that this Court is a competent Court as far as the question of title to premises in suit is concerned. Therefore, a fertiori suits to establish title still continued to be triable by Courts which were competent Courts before the Rent Act was passed, and s. 29-A makes it clear that the jurisdiction of the Courts to try suits on title has not been taken away by s. 28. Section 28 only permits the special Courts to try question of title incidentally but when question of title arises substantially in the suit, then it is the ordinary Courts of the land which are competent Courts that must try and dispose of suits on title. Therefore, if the High Court was the proper Court to try the particular suit on title which the plaintiff has filed, then merely because incidently he prays for possession, does not deprive the jurisdiction of this Court to try that suit for title and the Small Causes Court does not have jurisdiction under s. 28 to try the suit.

    Even assuming that this is not a suit on title, it is difficult to understand how the Small Causes Court would have jurisdiction to try this suit. Essentially this is an action in trespass. The plaintiff's case is that he is the sub-tenant and he has been wrongfully dispossessed by the defendant, and he wants possession from the defendant as a trespasser. Therefore, the plaintiff's suit is on his title against a person who has no title and who is a trespasser, and the interesting question that arises is whether when a tenant files a suit against a landlord for possession alleging that he has been dispossessed, such a suit falls within the ambit of s. 28. The Rent Act gives certain special rights to the tenant in respect of obtaining possession from the landlord. Section 16 gives him right to re-enter upon the premises which have been given to the landlord for repairs. Section 17 also gives him a similar right of re-entry. Section 17-A gives him right to recover possession from his landlord in cases where the building is demolished. There are also rights given to the tenant in respect of recovery of rent paid by him to his landlord. Section 20, for instance, gives him right to recover excess rent paid by him, and s. 11 gives him the right to fix standard rent. Therefore, the learned Judge is right when he points out that under s. 28 there may be applications, certainly if not suits, which may be brought by the tenants against the landlords. But a suit or an action in trespass is not a new right conferred upon a tenant. If a tenant files a suit in respect of the landlord's trespass, he is merely exercising his ordinary rights under the ordinary law. He is not asserting a new right conferred upon him by the Act, and no question as to the provisions of the Act can arise when the plaintiff's suit is a simple suit by a tenant complaining of being dispossessed by a landlord and claiming possession from him as against a trespasser. Therefore, a suit of that nature is not a suit for possession contemplated by s. 28. To repeat, it is not every suit for possession by a tenant against a landlord, just as it is not every suit for possession by a landlord against a tenant; that falls within the ambit of s. 28. The object of enacting s. 28 was to set up a special Court of summary jurisdiction to deal with matters which arise out of the Rent Act and one of the matters that arise out of the Rent Act was suit for possession contemplated by that Act between landlord and a tenant, and may be between a tenant and a landlord. It is impossible to contend that a suit in trespass is a suit contemplated by the Rent Act and which calls into question the consideration of the provisions of the rent act. Therefore, in our opinion, whether we look upon this suit as a suit on title or a suit for possession, it is not a suit solely triable by the new Court set up under s. 28, and in respect of this suit the jurisdiction of this Court has not been ousted.

    The result, therefore, is that the appeal succeeds and the order of the learned Judge below will be set aside and the suit will go down for trial on merits. In view of the order made by as on April 14, 1952, the appellant must pay the costs of this appeal. The respondent to pay to the appellant the costs of the issue tried by the learned Judge below. Costs to be set off.

    Attorneys for appellant: Manilal, Kher, Ambalal & Co.

    Attorneys for respondents: Khunderao, Laud & Co.

    Appeal allowed.
    P.M.P
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    Madhavprasad Kalikaprasad Nigam v. Indirabai Widow Of S.G. Chandavarkar
    (Aug 27, 1952)