Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
Smart Summary

Summary of Opinion: Revision under Article 227 — Tenant v. First Respondent (Purchaser)

Factual and Procedural Background

This Revision under Article 227 of the Constitution of India was filed by the tenant in H.R.C.O.P. No. 4 of 1990 on the file of the Principal District Munsif (Rent Controller), Tindivanam. The Original Petition (R.C.O.P. No. 4 of 1990) was filed by the previous owner (the original landlord). While that eviction proceeding was pending, respondent No. 1 purchased the property by sale deeds dated 23.12.1991 and 24.12.1991.

Respondent No. 1 initially filed an application to be impleaded as a respondent in the pending proceeding but withdrew that application. Later he filed IA. No. 5 of 1994 seeking to be impleaded as an additional petitioner (i.e., to continue the eviction proceeding initiated by the previous landlord). Meanwhile the Original Petition had been dismissed for default. The Rent Controller, by the impugned order, allowed respondent No. 1 to be impleaded and to continue the proceeding already initiated by the previous owner. The tenant (petitioning here) objected and filed this Revision challenging the Rent Controller's order.

Legal Issues Presented

  1. Whether, once an eviction petition has been dismissed for default and is no longer pending, a purchaser of the property can be impleaded or substituted so as to continue the dismissed proceeding or to seek restoration of that proceeding before the Rent Controller.
  2. Whether the Rent Controller had jurisdiction and the requisite statutory or incidental powers under the Rent Control Act to allow a purchaser to be impleaded and to continue proceedings that were initiated by the previous landlord.

Arguments of the Parties

The opinion contains a limited account of the parties' positions. The following summarizes the positions as presented in the text.

Petitioner's Arguments (Tenant)

  • The tenant's main ground of attack was that, once the eviction petition was not pending (having been dismissed for default), there was no proceeding in which the purchaser (first respondent) could be impleaded, substituted, or permitted to continue the proceeding.
  • The tenant contended that, being a Tribunal, the Rent Controller's powers are restricted to what is provided under the Rent Control Act, and therefore the Rent Controller lacked jurisdiction to allow the purchaser to be impleaded or to continue the dismissed proceeding.
  • The tenant also contended that the first respondent had earlier filed an application and withdrawn it, and that this showed a lack of good faith in the present application.

Respondent No. 1's Position (Purchaser)

  • The respondent asserted his entitlement as purchaser of the property to be impleaded and to continue the proceedings initiated by the previous landlord, relying on principles that a purchaser steps into the vendor's rights (including right to receive rent and to pursue eviction for default in rent).
  • Implicitly, respondent argued that, even if the Original Petition had been dismissed for default, he could seek restoration or be impleaded so as to continue the earlier proceedings rather than initiating a fresh petition.
  • The respondent withdrew an earlier application to be impleaded as a respondent where there was no dispute between vendor and purchaser, and later pursued impleading as petitioner/landlord to proceed with restoration or continuation; the withdrawal was not to be treated as evidence of bad faith preventing the later application.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
N. Subbiah v. M. Seshagiri Rao, 92 L.W. 303 The purchaser of property during proceedings under the Rent Control Act can be brought on record to continue the application filed by the vendor; attornment by the tenant is not a material bar to bringing the purchaser on record. The Court relied on this authority to support the proposition that a purchaser can be impleaded and continue proceedings initiated by the prior landlord.
V. Shanmugham v. Carona Sahu Co. Ltd. (M/S), 1991-1 L.W. 349 A purchaser during the pendency of proceedings (a Revision in that case) is entitled to execute the decree for eviction even if not brought on record before final disposal; discussed applicability of Order 21, Rule 16 and Section 146 CPC in executing courts. The Court cited this case to show that a purchaser can continue or execute processes in proceedings initiated by an earlier landlord, and to note that CPC provisions may apply in execution contexts.
Sreenivasan Chettiar v. R.M. Kalyani Ammal, 94 L.W. 108 Appellate Authority under the Rent Control Act is not strictly a civil court but, in absence of barring provisions, can permit the raising of additional grounds while appeal is pending (analogous to Order 41 Rule 2 CPC) because S.23(3) enables the Authority to decide the appeal as a whole. The Court used this precedent to illustrate that tribunals under the Act may have incidental powers necessary to decide appeals or matters properly before them, even if not expressly provided by statute.
A.C. Companies v. P.N. Sharma, A.I.R. 1965 S.C. 1595 Tribunals are constituted by statute to discharge judicial functions and in many respects share characteristics with ordinary courts; they may have substantial judicial powers transferred by the State. The Court invoked this Supreme Court authority to support the view that tribunals can possess incidental powers necessary for the administration of justice and are not mere administrative bodies.
Income Tax Officer, Cannanore v. M. K. Mohammed Kunhi, A.I.R. 1969 S.C. 430 Where a statute confers jurisdiction, it may impliedly confer powers necessary for execution of that jurisdiction (example: power to grant stay is implicit in appellate jurisdiction in certain contexts). The Court cited this authority for the proposition that incidental or implied powers may be read into statutory grants of jurisdiction where necessary for effective exercise of that jurisdiction.
Mst. Dhani Devi v. Sant Bihari Sharma and others, A.I.R. 1970 S.C. 759 In absence of statutory procedure, an administrative authority (Regional Transport Authority in that case) may adopt reasonable procedures, including allowing substitution, subject to public interest and reasonableness; substitution need not follow CPC verbatim. The Court referred to this case to show that where statute is silent, tribunals/administrative authorities may adopt reasonable procedures for substitution or continuation to avoid undue delay or prejudice.

Court's Reasoning and Analysis

The Court approached the question by examining (a) the statutory text and definitions, (b) existing case law on the rights of purchasers during tenancy proceedings, and (c) principles regarding the incidental powers of tribunals.

Key steps in the Court's analysis:

  • The Court acknowledged the limited scope of its review under Article 227: it must determine whether the Rent Controller acted within jurisdiction.
  • Although the Rent Control Act does not expressly provide for impleading a purchaser in a pending proceeding or in a proceeding dismissed for default, the Court noted settled law permitting impleading of purchasers where proceedings are pending (citing N. Subbiah and V. Shanmugham).
  • The Court considered whether tribunals have incidental powers beyond those expressly granted by statute when such powers are necessary to render justice. It relied on authorities (A.C. Companies, Income Tax Officer v. Kunhi) supporting the existence of necessary implied/incidental powers that enable tribunals to function effectively.
  • The Court examined the statutory definition of "landlord" in Section 2(6) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, which includes a person entitled to receive rent (whether on own account or as agent, trustee, etc.). The Court reasoned that a purchaser from a landlord is, by that definition and by Section 109 of the Transfer of Property Act, vested with the rights of the lessor, including entitlement to receive rent.
  • On that basis the Court held that a purchaser who acquires the landlord's rights is competent to apply for restoration of an eviction application dismissed for default (Rule 12) or to be impleaded and continue the proceedings initiated by the previous landlord. The right to be impleaded or to continue is recognized even if the tenant has not attorned to the purchaser.
  • The Court addressed the petitioner's point about earlier withdrawal of an application by the first respondent (when he sought impleading as a respondent). It held that the earlier withdrawal—filed when he sought to be impleaded as a respondent (which would have been inappropriate because there was no dispute between vendor and purchaser)—does not bar the present application to be impleaded as a landlord/petitioner, and does not demonstrate lack of good faith sufficient to deny relief.
  • The Court accepted that the first respondent also had the alternative remedy of filing a fresh eviction petition; however, it observed that impleading or restoring the prior proceedings would shorten litigation and is a permissible remedy. The Court limited its present inquiry to locus standi (standing) of the purchaser to be impleaded or continue the proceedings, not to adjudicate whether causes of action or subsequent events defeat such relief.
  • The Court concluded that none of the tenant's defenses against the original landlord would be lost — they remain available against the purchaser — and that the petitioner was not an aggrieved person entitled to maintain a Revision under Article 226 (noting Article 226 although the present proceeding is under Article 227).

Holding and Implications

Holding: The Revision Petition is dismissed with costs. The Rent Controller's order allowing respondent No. 1 (the purchaser) to be impleaded and to continue the earlier eviction proceeding (or to seek restoration) was held to be within jurisdiction and was affirmed.

Implications:

  • Direct effect on the parties: The purchaser (first respondent) is entitled to be impleaded and to continue (or seek restoration of) the eviction proceedings initiated by the previous landlord. The tenant retains all defenses previously available against the original landlord and may assert them against the purchaser.
  • The Court recognized that tribunals under the Rent Control Act may exercise incidental powers necessary to do complete justice (including permitting a purchaser to be impleaded to continue proceedings), even where such powers are not expressly enumerated in the statute, provided the action is within the scope of their jurisdiction.
  • No broader new legal principle was created by this opinion; the Court relied on existing precedents and statutory interpretation (definition of “landlord” and Section 109 of the Transfer of Property Act) to reach its decision. The opinion affirmed existing lines of authority permitting purchasers to step into their vendor's shoes in pending or restorable rent-control proceedings.

    Renganathan v. Pandurangan And Another

    This Revision under Article 227 of the Constitution of India is filed by the tenant in H.R.C.O.P No. 4 of 1990, on the file of the Principal District Munsif (Rent Controller), Tindivanam.

    2. By virtue of the impugned order, the Rent Controller allowed the application of the first respondent herein, to get himself impleaded in the proceeding and allowed him to continue the proceeding already initiated by the previous landlord.

    3. The Original Petition was filed by the previous owner as R.C.O.P No. 4 of 1990. Pending proceeding, the respondent No. 1 purchased the property as per sale deeds dt. 23.12.1991 and 24.12.1991 Thereafter, an application was filed by the very same respondent to get himself impleaded as a respondent in the proceeding, which he subsequently withdrew. Later he filed the present application, namely, IA. No. 5 of 1994, for getting himself impleaded as additional petitioner in the R.C.O.P In the meanwhile, the Original Petition itself was dismissed for default, and hence, the first respondent wanted himself to be permitted to continue the Original Petition, or to initiate proceedings for restoration of the Original Petition.

    4. By the impuged order, the Rent Controller allowed the first respondent's request, though objected to by the petitioner herein.

    5. The main ground of attack by the petitioner is that once the eviction petition is not pending before the Rent Controller, there is no proceeding in which the first respondent can get himself impleaded or substituted or permitted to continue the proceeding. According to him, being a Tribunal, the powers are restricted as provided under the Rent Control Act, and hence the order of the Rent Controller is without jurisdiction.

    6. Being a Revision under Article 227 of the Constitution of India, my powers are limited, i.e, this Court has only to see whether the jurisdiction exercised by the Rent Controller is within his limits.

    7. It is true that the Act does not provide for the impleading of purchaser in a pending proceeding or in a proceeding which is dismissed for default. But it is settled law by this Court that in a pending proceeding, a purchaser can be impleaded and he can continue the proceeding.

    8. In 92 L.W 303 (N. Subbiah v. M. Seshagiri Rao, C.J held thus:—

    “The purchaser of a property, in the course of proceedings under the Rent Control Act, can be brought on record for the purpose of continuing the application filed by the quondam owner, namely, his vendor, and the mere fact that the tenant has, at the instance of the quondam owner, attorned to the purchaser, who wishes to bring himself on record in those proceedings, would not be a material interdict which would prevent the subsequent purchaser from being brought on record for continuing the proceedings either in the original stage or at the execution state.”

    9. In 1991-1 L.W 349 (V. Shanmugham v. Carona Sahu Co. Ltd. (M/S)), Venkataswami, J. (as he then was), held thus:—

    “The purchaser of a building during the pendency of a Revision Petition in the High Court against an eviction order is entitled to execute the decree for eviction notwithstanding the fact that the purchaser has not been brought on record before the final disposal of the Revision Petition.”

    In that case, the learned Judge was considering the provisions or Order 21, Rule 16 and Section 146 of the Civil Procedure Code, and being an executing Court, the learned judge held that the provisions of the Code of Civil Procedure apply. But, even then, the learned judge discussed the entire case-law and held that the purchaser can continue the proceeding already initiated by earlier landlord.

    10. The powers of the Rent Controller and Appellate Authority are conferred by the Statute. But the question is, whether, apart from the powers that have been granted, the Tribunals constituted have got incidental powers which are not strictly provided under the Statute, but which should be necessary for rendering justice between the parties.

    11. In 94 L.W 108 (Sreenivasan Chettiar v. R.M Kalyani Ammal), Ratnam, J. (as he then was), was dealing with a case whether the Appellate Authority has got power in allowing an application analogous to Order 41 Rule 2, C.P.C, i.e, whether the Appellate Authority can permit the appellant to raise additional grounds in appeal. The learned Judge held thus:—

    “… From the language of S. 23 of the Act, it is clear that the Appellate Authority constituted under S. 23 of the Act is not a court as normally understood and accepted and consequently, the procedures of a civil court cannot be applied to those authorities. But then the question still remains whether in the absence of any specific provisions either in the Act or in the Rules, a litigant who has by inadvertence omitted to raise a ground of objection against the order of the Rent Controller should be precluded from doing so. To negative the putting forth of such a ground would be to bar a party from setting out what might be a vital objection to the order appealed against and in my view, so long as the appeal has not been disposed of, the grating of permission to raise additional grounds of appeal would be part of the power to decide the appeal itself. This would be so, because under S. 23(3) of the Act, it is not as if the hearing of the appeal is confined only to those grounds of appeal raised against the order of the Rent Controller but the decision is on the appeal against the order of the Controller as a whole and not limited to only those grounds upon which an appeal had actually been preferred. Though the Appellate Authority constituted under the Act is not a Court and consequently it had not inherent powers as such to permit the raising of additional grounds of appeal, yet S. 23(3) would enable the Appellate Authority in the process of hearing the appeal to decide the appeal not only on grounds which have been raised before, but also on other grounds which may be raised later. In the absence of any bar on a litigant analogous to O. 41, R. 2,. C.P.C, such a power in the Appellate Authority is available. The conduct of the appeal so long as it is pending is entirely in the hands of the Appellate Authority, that Authority being statutorily vested with the authority to decide …”

    12. In this connection, the powers of the Tribunal and that of a civil Court may also be considered.

    13. In A.I.R 1965 S.C 1595 (A.C Companies v. P.N Sharma), their Lordships held that the Tribunals have got a greater role in the administration of justice, and they are constituted by the statute in exercise of Sovereign power. Their Lordships further held that under our Constitution, the Judicial functions and powers of the State are primarily confered on the ordinary Courts which have been constituted under its relevant provisions. The Constitution recognised a hierarchy of courts and to their adjudication are normally entrusted all disputes between citizens and citizens as well as between the citizens and the State. These Courts can be described as ordinary courts of civil judicature. Their Lordships held as follows:—

    “…. The expression “Court” in the context denote a Tribunal constituted by the State as a part of the ordinary hierarschy of courts which are entrusted with the State's inherent judicial powers. A Sovereign State discharges legislative, executive and judicial functions and can legitimately claim corresponding powers which are described as legislative, executive and judicial powers. Under our Constitution, the judicial functions and powers of the State are primarily conferred on the ordinary courts which have been constituted under its relevant provisions. The Constitution recognised a hierarchy of Courts and to their adjudication are normally entrusted all disputes between citizens and citizens as well as between the citizens and the State. These Courts can be described as ordinary Courts of Civil Judicature. They are governed by their prescribed rules of procedure and they deal with questions of fact and law raised before them by adopting a process which is described as judicial process. The powers which these courts exercise, are judicial powers, the functions and the decisions they reach and pronounce are judicial decisions.

    “In every State there are administrative bodies or authorities which are required to deal with matters within their jurisdiction in an administrative manner and their decisions are described as administrative decisions. In reaching their administrative decisions, administrative bodies can and often do take into consideration questions of policy. It is not unlikely that even in the process of reaching administrative decisions, the administrative bodies or authorities are required to act fairly and objectively and would, in many cases have to follow the principles of natural justice: but authority to reach decisions conferred on such administrative bodies is clearly distinct and separate from the judicial power conferred on Courts, and the decisions pronounced by administrative bodies are similarly distinct and separate in character from judicial decisions pronounced by Courts. Tribunals which fall within the purview of Art, 136 (1) occupy a special position of their own under the scheme of our Constitution. Special matters and questions are entrusted to them for the decision and in that sense, they share with the courts one common characteristic: both the courts and the tribunals are “constituted by he State and are invested with judicial as distinguished from purely administrative or executive functions”. (Vide Durga Shankar Metha v. Raghuraj Singh, 1955-I SCJ 267 at P. 272 = AIR 1954 SCJ 520 at P. 522.) They are both adjudicating bodies and they deal with and finally determine disputes between parties which are entrusted to their jurisdiction. The procedure followed by the courts is regularly prescribed and in discharging their functions and exercising their powers, the courts have to conform to that procedure. The procedure which the tribunals have to follow may not always be so strictly prescribed but the approach adopted by both the courts and the Tribunals is substantially the same, and there is no essential difference between the functions that they discharge. As in the case of Courts, so in the case of Tribunals, it is the State's inherent judicial power which has been transferred and by virtue of the said power, it is the State's inherent judicial function, which they discharge. Judicial functions and judicial powers are one of the essential attributes of a sovereign State, and on considerations of policy, the State transfers its judicial functions and powers mainly to the courts established by the Constitution: but that does not affect the competence of the State, by appropriate measures, to transfer a part of its judicial powers and functions in tribunals by entrusting to them the task of adjudicating upon special matters and disputes between parties. It is really not possible or even expedient to attempt to describe exhaustively the features which are common to the Tribunals and the Courts, and features which are distinct and separate. The basic and the fundamental feature which is common to both the courts and the tribunals is that they discharge judicial functions and exercise judicial powers which inherently vest in a sovereign State.”

    14. In A.I.R 1969 S.C 430 (Income Tax Officer, Cannanore. v. M. K. Mohammed Kunhi), the question that came up for consideration was whether, under the income tax Act, the Appellate Tribunal has got power to grant stay, pending Appeal. As under the Rent Control Act, only certain powers of Civil Court were granted for the Appellate Tribunal Section 131 of the Income-Tax Act said that they shall exercise the same powers as are vested in the Court under the Code of Civil Procedure when trying a suit in matters specified in the Section. But those powers relate only to discovery and inspection, enforcing the attendance of witnesses, compelling production of books of accounts, etc., issue of commission and allied matters. Going by that power alone, their Lordships held that the power of stay is not available. Their Lordships held (at page 433) thus:—

    “…. In Domat's Civil Law, Cushing's Edition, Vol. I, at page 88, it has been stated:

    “It is the duty of the judges to apply the laws, not only to what appears to be regulated by their express dispositions but to all the cases where a just application of them may be made, and which appear to be comprehended either within the consequences that may be gathered from it.”

    Maxwell on ‘Interpretation of Statutes’, Eleventh Edition contains a statement at p. 350 that “where an Act confers a Jurisdiction, it impliedly also grants the power of doing all such acts, or employing such means, as are essentially necessary, to its execution. Cul Jurisdictio data est. ea quoge conces a esse vindentur. Since quibus jurisdictio explicari non notuit.” An instance is given based on Ex Parte, Martin, (1879) 4 QBD 212 at P. 491 that

    “Where an inferior court is empowered to grant an injunction, the power of punishing disobedience to it by commitment is impliedly conveyed by the enactment, for the power would be useless if it could not be enforced”.

    Following the said principle, the learned judge held that when exercising the power of appeal, the power to grant stay is implicit.

    15. In A.I.R 1970 SC 759 (Mst. Dhani Devi v. Sant Bihari Sharama and others), the question that came up for consideration was under the Motor Vehicle Act. There, the applicant, for the grant of stage carriage permit, died, and there is no provision under the Act that his legal representative can continue the proceeding, nor Order 22, C.P.C or the powers under Section 306 of the Indian Succession Act were made applicable. Their Lordships, after discussing the entire case law, held thus:—

    “… In the absence of any statute or statutory rule, the Regional Transport Authority may devise any reasonable procedure for dealing with the situation. As stated in American Jurisprudence, 2nd, Vol. 2 (Administrative Law), Article 340 P. 155” where the statute does not require any particular method of procedure to be followed by an administrative agency, the agency may adopt any reasonable method to carry out its functions.” (See also Corpus Juris Secondum, Vol. 73 (Public Administrative Bodies and Procedure, Article 73, P. 399). The Regional Transport Authority has complete discretion in the mater of allowing or refusing substitution. It is not bound to embark upon prolonged investigation into disputed questions of succession. Nor it is bound to allow substitution of such an order which will delay the proceedings unreasonably or will otherwise be detrimental to the interests of the public generally”.

    16. In this case, the contention that is raised is, that Section 27 of the Act allows only a legal representative to be impleaded, or the proceedings can be continued by or against the legal representative. An argument is put forward that when once the legal representative is allowed to be impleaded or if the proceeding is continued against them, the Statute does not empower the Tribunal to implead a purchaser. The said contention can be met if we look into the definition of ‘landlord’ under The Act. Section 2(6) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, reads thus:—

    “2. In this Act, unless the context otherwise required:—

    (6) “landlord” includes the person who is receiving or is entitled to receive the rent of a building, whether on his own account or on behalf of mother or on behalf of himself and others or as an agent, trustee, executor, administrator, receiver or guardian or who would so receive the rent or be entitled to receive the rent if the building were let to a tenant:”

    If we go by the above definition, a purchaser from a landlord is also entitled to receive rent. The building is admittedly in the occupation of the petitioner, as a tenant. If he is a landlord, Rule 12 of the Act empowers him to file an application to restore the application which was dismissed for default. The competency of the respondent to file an application to restore cannot be disputed, for, he right is given to a landlord. That apart, under Section 109 of the Transfer of Property Act, all the rights of the lessor, if conveyed to a stranger, the purchaser gets all the rights. By virtue of Section 109 of the Act, the right of the purchaser is recognised to get himself impleaded, or to continue the proceedings already initiated. Even if the tenant does not recognise or attorn the tenancy to the purchaser, that will not take away the right of the purchaser to get himself impleaded or to continue the proceedings already initiated. In this case, the eviction petition is on the ground that the tenant has committed default in paying the rent. Admittedly, from the date of sale deed, i.e, from 23.12.1991, the first respondent herein is entitled to collect the rent. In that capacity also, he is entitled to proceed with the matter after getting it restored. The contention by the learned counsel for the petitioner is that the present first respondent himself filed an application and later withdrew the same, and hence the present application is lacking in good faith.

    17. It is true that the present first respondent filed an application. But, in the earlier proceeding, he wanted himself to be impleaded as a respondent. If his right as a landlord is recognised, he cannot get himself impleaded as a respondent, for, there is no dispute between the original landlord and the purchaser. He rightly withdrew the same, and therefore, that cannot be a bar for filing the present application.

    18. It is also contended by the learned counsel for the revision petitioner that the first respondent's right is not taken away, and he can file an application for eviction.

    19. It is true, the first respondent can file a separate petition for eviction. But, that is not the only remedy which is recognised under law. If the first respondent can get himself impleaded or he can continue the earlier proceeding, he can shorten the litigation. The question whether the same cause of action arises, or the Rent Control Courts can take note of the subsequent events are matters not to be considered at present. We are now concerned only with the locus standi of the first respondent to either get himself impleaded or to continue the earlier proceedings. The Rent control court has rightly allowed the application.

    20. In this connection, it is also appropriate to note that none of the petitioner's rights is affected. Whatever defence he had against the original landlord is available to him against the purchaser also. In fact, he is not an aggrieved person so as to file a Revision under Article 226 of the Constitution of India.

    21. In the Result, the Revision Petition is dismissed with costs.

    KA/RR/VCS

    Use AI to get other relevant cases.

    Comments

    Renganathan v. Pandurangan And Another
    (Apr 18, 1995)