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Sat Pal v. Sudershan Lal
Structured Summary of the Legal Opinion
Factual and Procedural Background
The landlords obtained an order for eviction of the petitioners (tenants of slum-area premises) on 29 August 1967. Execution of that order required permission of the Competent Authority under section 19(1)(b) of the Slum Areas (Improvement and Clearance) Act, 1956, which requires consideration of whether alternative accommodation within the tenant's means would be available under section 19(4)(a).
In the first application to the Competent Authority under section 19(1)(b), the landlords alleged that tenant Sat Pal (appellant No.1) was working as a contractor with Shri Chanan Shah and earning Rs. 1,800 per month; the tenant denied this and claimed to be a salary earner on Rs. 125 per month. The Competent Authority (Shri D.K. Podder) accepted the tenant's defence and, finding the household income insufficient to obtain alternative accommodation, dismissed the landlords' application on 5 September 1970. On appeal under section 30, the Financial Commissioner accepted a higher salary figure (Rs. 200/-) for Sat Pal and a higher total household income (about Rs. 1,000/-) but nonetheless dismissed the landlords' appeal on 21 October 1970.
The landlords filed a second application under section 19(1)(b) on 22 December 1970. The tenants argued that the second application was barred by res judicata; the landlords contended changed circumstances permitted the second application. The Competent Authority (Shri P.R. Varshneya) appointed a commissioner for local investigation whose report and subsequent affidavits led the Competent Authority to find that Sat Pal had entered into partnership with Chanan Shah and was earning substantial income from contract work. On that basis, the Competent Authority granted permission to execute the eviction order on 11 June 1971.
The tenants challenged that order by writ petition on several grounds; counsel for the petitioners emphasized two grounds: (1) res judicata barred the second application, and (2) the impugned order was based on no evidence. The landlords argued also that Sat Pal's conduct in concealing income disentitled him from discretionary relief.
Legal Issues Presented
- Whether the second application resulting in the impugned order was barred by res judicata.
- Whether the impugned order was void for being based on no evidence.
- Whether the conduct of the petitioner (Sat Pal) disentitles him to discretionary relief in the writ jurisdiction.
Arguments of the Parties
Petitioners' Arguments
- The second application for permission under section 19(1)(b) was barred by res judicata because the first application had already been dismissed on the issue of the tenant's income and status (wage earner vs. contractor).
- The impugned order (granting permission to execute eviction) was based on no evidence — including reliance on the report of the commissioner for local investigation which, it was argued (relying on a Supreme Court decision), is not evidence admissible against the tenant.
Respondents' (Landlords') Arguments
- The second application was permissible because changed circumstances (new information about a partnership and payments to Sat Pal that came to light after the first decision) removed any bar of res judicata.
- The tenant's conduct in concealing his true income and partnership with Chanan Shah disentitled him to discretionary relief in writ jurisdiction; this conduct justified denying relief to the petitioner.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Madan Lal v. Competent Authority, ILR 1970 I Delhi 106 | Support for the proposition that the general principle of res judicata applies to quasi‑judicial decisions of tribunals other than civil courts. | Used to establish that res judicata can apply to Competent Authority decisions, subject to its ordinary limits. |
| Yoginder Pal v. Competent Authority, ILR 1970 I Delhi 892 | Support for the proposition that res judicata applies to quasi‑judicial bodies. | Relied upon with Madan Lal to state the general principle that res judicata is applicable to such tribunals. |
| Ladli Prasad v. The Financial Commissioner, 1971 RCR 737 | Support for the applicability of res judicata principles to decisions of quasi‑judicial authorities. | Included in the group of authorities showing res judicata applies beyond civil courts. |
| Isher Singh v. Sarwan Singh, A.I.R. 965 9C 948 | That the question of what was directly and substantially in issue in former litigation must be decided from pleadings, issues and findings. | Applied to confine the effect of res judicata to matters directly and substantially in issue in the first application. |
| Bareilly Electricity Supply Co. Ltd. v. Workmen, 1971 2 SCC 617 (paragraph 14) | That information obtained by a commissioner for local investigation is not evidence that can be accepted as such by the deciding authority. | Considered by the court: while the commissioner's information may not per se be admissible evidence, the tenant was made aware of the commissioner's report and had opportunities to respond, and other material was before the Competent Authority which it could properly believe. |
| Shri Jai Narain v. The Assistant Commissioner, C.M. No. 86 of 1968 (decided 7 Apr 1969) | Support for the proposition that findings in earlier proceedings do not bind parties forever where circumstances change (Division Bench decision of this Court cited in support). | Relied upon to support the view that a later change in the tenant's earning circumstances could justify a different finding in the second application. |
| C. R. Abrol v. Administrator under the Slum Areas, ILR 1970 I Delhi 768 | Principle that a petitioner seeking discretionary relief must come with clean hands; misconduct may disentitle a petitioner to relief. | Applied to deny discretionary relief in writ jurisdiction because the tenant suppressed material facts about income and partnership. |
| Digambar Prashad v. S.I. Dhani etc., ILR 1969 Delhi 1016 | Support for the clean‑hands principle in discretionary relief. | Used alongside C. R. Abrol to justify refusal of discretionary relief to the petitioner for having suppressed material facts. |
Court's Reasoning and Analysis
The court proceeded in stages, addressing each legal issue by reference to the pleadings, the evidence before the Competent Authority, and established legal principles:
-
Res judicata principle and its scope:
- The court accepted that the general principle of res judicata applies to quasi‑judicial decisions (citing authorities), but emphasized that res judicata only covers matters "directly and substantially in issue" in the earlier proceeding.
- To determine what was directly and substantially in issue in the first application, the court looked to the pleadings, issues and findings in that case (relying on Isher Singh).
- In the first application the tenants' defence that Sat Pal was a wage earner and not a contractor was accepted; the finding related to his status as a wage earner and the income figure determined on appeal (Rs. 200/- per month). The effect of res judicata was therefore confined to that factual determination.
-
Whether the second application raised new matters:
- The second application involved material not before the first Competent Authority: the local commissioner's report (indicating Bharat Agencies had closed and that Chanan Shah stated a partnership) and an affidavit by Jagmohan Mehra implicating Sat Pal in responsibility for contract work.
- The court analysed the temporal and evidential situation: the contract of earthwork and the partnership allegations arose (or came to light) after the pleadings, issues and evidence in the first application had closed; the landlords could not reasonably have pleaded those facts in the first application because they lacked knowledge of them at that time.
- The court rejected the petitioners' argument that the first decision (dated 5 Sept 1970) operated as res judicata regarding everything that may have occurred prior to that date. The court explained that the timing of an event is relevant only insofar as it shows whether the parties had knowledge to plead it in the earlier litigation. If parties lacked knowledge, they are not barred from later raising such matters.
-
Admissibility and weight of the commissioner's report and other material:
- The court acknowledged the authority cited by petitioners (Bareilly Electricity Supply Co. Ltd.) for the proposition that information obtained by a commissioner for local investigation is not, of itself, admissible evidence.
- However, the Competent Authority had followed procedures that gave the tenant notice of the commissioner's report, and the tenant filed responsive affidavits (including attempts to attribute partnership to other persons). The Competent Authority assessed the affidavits, disbelieved some (e.g., Karnall Singh's affidavit) because documentary proof (deed of partnership) was not produced, and accepted other material (e.g., Jagmohan Mehra's affidavit and the presence of cheques and receipts pointing to payments).
- The court held that the Competent Authority was engaged in appreciating evidence and that it had some admissible material before it which it could properly believe; therefore the impugned order was not one "based on no evidence."
-
Change in income circumstances:
- The court reasoned that income, especially business income, can change over time; a prior finding that a person was a wage earner with a fixed income does not bind for all time if the person later engages in business and earns increased income.
- Consequently, the first finding regarding Sat Pal's income did not preclude a later finding (on new material) that Sat Pal had higher income from partnership business.
-
Conduct of the petitioner and discretionary relief:
- The court reviewed post‑decision evidence: cheques drawn payable to Sat Pal and Chanan Shah, and an affidavit of Chanan Shah that substantial sums (Rs. 27,000) were paid for earth work and divided between him and Sat Pal. Sat Pal gave a new explanation in the writ petition attributing receipt to another person of the same name — an explanation never given before the Competent Authority.
- The court characterized this as an afterthought and suppression of partnership and income before the Competent Authority, concluding that Sat Pal had attempted to mislead the Competent Authority by withholding material facts.
- Relying on authorities about the clean‑hands principle, the court held that a petitioner seeking discretionary relief must come with clean hands and that the petitioner's conduct disentitled him to such relief in writ jurisdiction.
Holding and Implications
Petition dismissed with costs.
Implications:
- The court upheld the Competent Authority's decision granting permission to the landlords to execute the eviction order; the writ petition challenging that order was dismissed.
- The court refused discretionary relief on the basis that the petitioner had suppressed material facts and given an afterthought explanation, invoking the clean‑hands principle to deny relief.
- The opinion does not purport to establish a new general precedent beyond applying established principles: res judicata applies to quasi‑judicial bodies but is confined to matters directly and substantially in issue; new material or changed circumstances may permit re‑litigation of related matters; and petitioners with unclean hands may be denied discretionary relief. The decision's direct effect is on the parties — the impugned administrative order stands and the petition is dismissed with costs.
This summary is prepared exclusively from the provided opinion and does not add information beyond that opinion.
V.S Deshpande, J.:— The petitioners are tenants of premises situated in a slum area belonging to the respondents landlords. An order for eviction against the tenants was obtained by the landlords on 29th August, 1967. This order is not executable unless the permission of the Competent Authority for its execution is obtained under section 19(l)(b) of the Slum Areas (Improvement and Clearance) Act, 1956 (hereinafter called the Act). In granting or refusing such permission, the Competent Authority has to take into account under section 19(4)(a) of the Act whether alternative accommodation within the means of the tenant would be available to him if he were evicted. In the first application to obtain permission under section 19 (1) (b) the landlords, inter alia, stated that the tenant Sat Pal (appellant No. 1) was doing the work of a contract along with one Shri Vidya Parkash and was earning Rs. 1800/- per month. But the defence of Sat Pal was that he was only an employee of M/s. Bharat Agencies on Rs. 125/- per month. This defence was believed by the Competent Aathority Shri D.K Podder who found that the total income of all the persons living in the premises along with the tenants was Rs. 722/- while the number of persons to be maintained on that income was 19. The tenants were not, therefore, in a position to find alternative accommodation within their means if they were evicted. He, therefore, dismissed the application of the landlords on 5th September, 1970 as per Anne-xure A. In the appeal against this order under section 30 of the Act it was urged before the Financial Commissioner that in addition to the basic salary, the tenant Sat Pal must be receiving some allowances and his income was, therefore, held by the appellate authority to be Rs. 200/- per month. The appellate authority was of the view that the total earnings of the people living in the premises were Rs. 1000/-. The tenants could not, therefore, be held to be able to find alternative accommodation within their means as such alternative accommodation would require payment of rent of Rs. 250/- or so which would be 25 per cent of their income. The appeal was, therefore, dismissed on 21st October, 1970.
2. The landlords filed a second application for permission under section 19 (l)(b) on 22nd December, 1970. The tenants contended that the second application was barred by resjudicata in view of the dismissal of the first one. The landlords replied that the bar of res judicata did not apply in view of changed circumstances. The Competent Authority Shri P.R Vershneya appointed a commissioner for local investigation who reported that the premises of Bharat Agencies, the alleged employers of Sat Pal, had been closed down for a long time and that one Chanan Shah told him that Sat Pal was carrying business in partnership with Chanan Shah. Sat Pal filed an affidavit that he was not a partner of Chanan Shah but was serving Bharat Valve Manufacturing Company at a new address. But one Jagmohan Mehra, partner of Messrs. Ram Nath Mehra & Sons, filed an affidavit that he gave earth excavation and cartage work to Chanan Shah on the condition that the tenant Sat Pal also undertook the responsibility of proper fulfilment of the work allotted to Chanan Shah. Shri Varshneya, therefore, inferred that Sat Pal was carrying on business in partnership with Chanan Shah and had tried to conceal his income from the partnership. He, therefore, discarded his defence and believed the allegations of the landlords and held that the tenant Sat Pal was earning more than Rs. 1000/- from his contract business. The total income of the occupants of the premises thus came, to more than Rs. 1900/-. The tenants were, therefore, in a position to find alternative accommodation within their means if evicted. He, therefore, granted the permission to the landlords to execute the order for eviction on 11th June, 1971 This order is impugned in the present writ petition on various grounds. But Shri N.D Bali, learned counsel of the petitioneRs. concentrated on the following two grounds of attack, namely:—
(1) The dismissal of the first application barred the second one by resjudicata,
and (2) The impugned order was based on no evidence. The respondents (landlords) defended the writ petition, inter aba, on the ground that the conduct of the tenant Sat Pal in concealing his income was such that the discretionary relief under Article 226 should be denied to him.
The points for decision, therefore, are:—
(1) Whether the second application resulting in the impugned order was barred by resjudicata?
(2) Whether the impugned order was void as being not based on any evidence?
and (3) Whether the conduct of the petitioner is such as to disentitle him to any relief in this petition?
Points 1 and 2.—
3. It is well established that the general principle of resjudicata, though not the express terms of section 11 Civil Procedure Code, applies to quasi-judicial decisions of tribunals other than civil courts. Madan Lal v. Competent Authority . ILR 1970 I Delhi 106, Yoginder Pal v. Competent Authority/ . ILR1970 I Delhi 892. and Ladli Prasad v. The Financial Commissioner . 1971 RCR 737.
4. The effect of res judicata is, however, confined to the matter which was “directly and substantially in issue” in the former litigation inter partes. What was directly and substantially in issue in the first application made by the landlords? The queston has to be decided on the pleadings, the issues and the findings given in that case. Isher Singh v. Sarwan Singh . A.I.R 965 9C 948.. The allegation of the landlords was that the tenant Sat Pal was a contractor but Sat Pal's defence was that he was a wage earner only. His defence was accepted by the Competent Authority. The effect of resjudicata in that litigation was therefore, confined to the fact that the tenant Sat Pal was only a wage earner and not a contractor and his income was Rs. 200/- per month only as ultimately held by the Financial Commissioner in the appeal.
5. On the contrary, the matter directly and substantially in issue in the second application was that the plea of the landlords that the tenant Sat Pal was a contractor was upheld by the Competent Authority inspite of the denial by Sat Pal on two grounds, namely:—
(1) That the commissioner for local investigation had found that the business premises of the alleged employers of Sat Pal had been closed for a long time and that one Chanan Shah had told him that Sat Pal was a partner, and
(2) That affidavit of Jagmohan Mehra that he had given the contract work to Chanan Shah only because Sat Pal undertook the responsibility to do the same.
6. Shri N.D Bali referred to the Supreme Court decision in Bareilly Electricity Supply Co. Ltd. v. Workmen . 1971 2 SCC 617 paragraph 14, that the information obtained by the commission for local investigation was not evidence which could be accepted by the Competent Authority. According to section 19(3) of the Act, the application of the landlord has to be decided by the Compecent Authority “after making such enquiry into the circumstances of the case as it thinks fit”. The manner of this enquiry is deliberately left flexible by the legislature. It is of course subject to the basic principle of natural justice that both the parites must be given the opportunity of rebutting whatever material is placed before the Competent Authority against either of the parties. The evidence obtained by the commissioner for local investigation may not, therefore, be admissible as such against the tenant Sat Pal since he had perhaps had no opportunity of rebutting it when the commissioner obtained it. The report of the commissioner may not also be regarded as evidence as such The fact, however, remains that the tenant Sat Pal was made aware of the report of the commissioner in which reference was made to the information given by Chanan Shah to the commissioner about the alleged partnership between Chanan Shah and Sat Pal. This led Sat Pal to file an affidavit that the partnership was between one Chanan Shah and one Karnall Singh. Sat Pal still maintained that he was not a partner of this firm at all. Karnall Singh also filed an affidavit that he was a partner of Chanan Shah. The Competent Authority, however, did not believe the affidavit of Karnall Singh inasmuch as the deed of partnership was not filed to show that he was a partner of Chanan Shah. On the other hand, it gave importance to the statement on affidavit of Jagmohan Mehra that he had given the work to Chanan Shah because Sat Pal undertook to be responsible for it. The Competent Authority, therefore, inferred that Sat Pal was a partner of Chanan Shah. Another reason for disbelieving Sat Pal was that Sat Pal had originally stated that he was an employee of Bharat Agencies but when the commissioner found that the Bharat Agencies had closed down long time back, Sat Pal came up with a new case that he was an employee of Bharat Valve Manufacturing Company which was working at a new address. The affidavit filed by Sudershan Kumari was disbelieved by the Competent Authority as the signatures on the affidavit and the salary certificate were different from each other. The Competent Authority was appreciating evidence. It had some evidence before it which it could believe. It cannot be held, therefore, that its decision was based on no evidence.
7. The decision on the second application was that the contract of earth work was given by Jagmohan Mehra to Chanan Shah and Sat Pal in June 1970. The argument of the landlords in the first application was over in June 1970. The landlords had no knowledge of the partnership between Sat Pal and Chanan Shah. They could not, therefore, plead about that partnership in the first application. The income of Sat Pal was a fact within his special knowledge and the burden of proof was on him to show what his income was. The landlords were thus not barred by constructive res judicata from raising the plea of Sat Pal's partnership with Chanan Shah in the second application as they became aware of it only after the report of the local commissioner which was submitted in May 1971. Nor was the Competent Authority barred by res judicata in giving the finding that from June 1970 Sat Pal was in partnership with Chanan Shah. Shri Bali argued that the decision of the first application was given on 5th September. 1970 and that decision was, therefore, res judicata regarding everything which happened prior to 5th September 1970. 1 am unable to agree. The time at which an event takes place is not a necessary ingredient of the plea of res judicata. Such time is relevant only to show that an event which has taken place prior to the former litigation would be within the knowledge of the parties to the former litigation. If the parties do not plead about such an event, then they would be barred by constructive res judicata from raising the plea in a subsequent litigation. But when the landlords pin the present case did not know at all about the partnership between Sat Pal and Chanan Shah, they could not be expected to raise the plea about it in, the first application.
8. The nature of the issue to be decided be the Competent Authority under section 19 (4)(a) is whether at the time the application is made by the landlord and is defended by the tenant, the income of the tenant is such as to enable him to find alternative accommodation: The income of a person is not something which must remain the same at “all times. This is more so in case of a person like Sat Pal who was not a mere wage earner but who could do business. Business income is always liable to change according to the fortunes of the business. Therefore, the finding of the Competent Authority in the first application that Sat Pal was a wage earner with a fixed income cannot be binding on the parties for all the time to come particularly if Sat Pal later ceased to be a wage earner and started doing business. It was open to the landlords to show that while the matter directly and substantially in issue in the former application was that the wages of Sat Pal were only Rs. 200/- per month, the matter directly and substantially in issue in the second application was different, namely, that_ Sat Pal was getting much higher income from business. lam supported in this view by a Division Bench decision of this Court in Shri Jai Narain v. The Assistant Commissioner . C.MM No. 86 of 1968 (C.M No. 86 of 1968 decided on 7th April, 1969.)
9. Further, the decision in the first application is to be construed in the light of the pleadings and the issues arising in that litigation. The pleadings, issues and evidence were all over and even the argument of the landlords was over before Sat Pal entered into partnership with Chanan Shah. The decision on the first application, therefore, related to the pleadings, issues and evidence which were over by June 1970 in the first application. It is only if an event happening during the course of a litigation after the pleadings, issues and evidence are over is brought to the notice of the Court and the decision of the Court on the subsequent event is obtained that the subsequent event would be a part of the res judicata in the former litigation. Otherwise the subsequent event would not be covered by the decision and it would be open to the parties to refer to the subsequent event in a subsequent litigation unless the bar of constructive res judicata prevents them from doing so. I am of the view, therefore, that the filing of the second application was not barred by res judicata and the impugned order was not void for want of evidence. Both the contentions of the petitioners tenants are, therefore, negatived.
10. POINT 3:— In the present case cheques dated 26th October, 1970 3rd September, 1970 and 31st August, 1970 have been produced from the National and Grindley's Bank Ltd, payable to Sat Pal Chanan Shah. These cheques were actually cashed by Sat Pal the tenant. He has now for first time given the explanation that another Sat Pal son of Ram Saran Das was the partner of Chanan Shah and it was on behalf of the partners that he cashed the cheques. This explanation was not given by Sat Pal before the Competent Authority who passed the impugned order. It is thus clearly an afterthought. These cheques are for substantial amounts such as Rs. 2450, Rs. 2300 and Rs. 2300/-. Chanan Shah has also filed an affidavit that a total sum of Rs. 27,000/-. was paid for the earth work by Ram Nath Mehra & Sons and was equally divi-ded between him and Sat Pal. The conduct of SatPal was thus reprehensible. He has totally suppressed his partnership with Chanan Shah even though he had received substantial payments from Ram Nath Mehra & Sons. His explanation for receiving those sums is also unbelievable. It is obvious, therefore, that he has tried to hoodwink the Competent Authority by supperessing his income. In its writ jurisdiction, this Court would be unwilling to help such a person on the principle that a petitioner who comes to obtain a discretionary relief must come with clean hands (C. R. Abrol v. Administrator under the Slum Areas . ILR 1970 I Delhi 768, at 781 and DigambarPrashad v. SI. Dhani etc . ILR 1969 Delhi 1016.
11. The writ petition is, therefore, dismissed with costs.
12. Petition dismissed.
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