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Smart Summary

Factual and Procedural Background

A firm called Mebrose Ice Cream and Frozen Food Company (the tenant) occupied two ground-floor shops in the Greater Kailash market, New Delhi. Jaswant Rai was the landlord. On 19 July 1971 the landlord filed an application under section 14(1)(a) of the Delhi Rent Control Act, 1958 for recovery of possession on the ground of arrears of rent.

The tenant appeared on 25 August 1971 and sought time to file a written statement. Adjournments were granted five times but no written statement was ever filed. On 28 October 1971 no one appeared for the tenant; the court ordered proceedings ex parte and directed the landlord to produce evidence. After the landlord's evidence, the matter was adjourned for arguments and judgment was reserved; an order for recovery of possession was passed by the Additional Controller in November 1971.

The tenant did not appeal that order but on 21 December 1971 applied to have it set aside. That application was dismissed on 18 February 1975 (holding there was no sufficient cause for non-appearance on 28 October 1971). An appeal to the Rent Control Tribunal against the dismissal was dismissed on 8 December 1976. The landlord later sought execution of the recovery order. The tenant filed an objection on 10 February 1977 contending the recovery order was a nullity for lack of jurisdiction; the objection was overruled on 28 February 1977 and an appeal to the Rent Control Tribunal was dismissed on 9 September 1977. This judgment resolves a second appeal under section 39 of the Delhi Rent Control Act, 1958.

The Additional Controller's recovery order declared arrears due and ordered possession delivered to the landlord, but contained a conditional provision that if the tenant paid specified arrears (Rs. 14,000 up to 30-6-1971 and rent at Rs. 1,700 from 1-7-71 onward) within one month the tenant would obtain the benefit of section 14(2) and would not be liable to eviction. The tenant did not comply with that condition.

Legal Issues Presented

  1. Whether a single, combined order that (a) directs payment/deposit of arrears under section 15(1) and (b) simultaneously contains an order for recovery of possession under section 14(1)(a) (made subject to a condition that it will not operate if payment is made within one month) violates section 14(2) of the Act and is therefore a nullity or an excess of jurisdiction.
  2. Whether the Controller, after making an order for recovery of possession, becomes functus officio such that he cannot impose a subsequent conditional suspension providing for revival or cessation of the eviction order on fulfilment of payment requirements.
  3. Whether an objection raised in execution proceedings can properly challenge the validity of such an order (as opposed to raising the issue by way of appeal), particularly where the alleged illegality is that the order contravenes a mandatory statutory provision.
  4. Whether the practical effect of a combined order causes prejudice to the tenant (for example, by limiting the number of appeals available) and thus should be treated as invalid.

Arguments of the Parties

Tenant's Arguments

  • The Additional Controller's order is in reality a combination of two orders — an order under section 15(1) directing payment/deposit of arrears within one month and an order for recovery of possession under section 14(1)(a) — and this combination violates section 14(2) of the Act, rendering the recovery order a nullity and an excess of jurisdiction.
  • By making the order for recovery of possession at the same time as the order under section 15(1), the Controller failed to wait for the one-month period prescribed by section 15(1) so as to allow compliance; this renders section 14(2) nugatory.
  • Alternatively, once the Controller purported to order recovery of possession in the first sentence of his order, he became functus officio and could not thereafter impose a conditional suspension (a condition subsequent) on that eviction order.
  • The combined order caused prejudice because, had there been two separate orders at different times the tenant could have filed two separate appeals instead of one.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mahendra Kumar Khandelwal v. Padam Chand Jain, 1969 R.C.J. 1036 Illustration that composite orders combining relief under the rent control scheme and conditional eviction orders have been made. Cited as an example of the practice of making composite orders; supports validity of such orders.
Shri Kundan Lal v. Kuni Lal & others, 1971 R.C.R. 825 Illustration of composite orders practice. Used to show that combined orders "have almost become a practice".
Smt. Sumitra Rani v. M/s. Bennet Coleman & Co. Ltd., 1970 R.C.R. 566 Composite orders save hearings and prolongation of proceedings. Referenced to support the utility and acceptability of combined orders.
Ramiah Chettiar v. K. Sankaralingam Pillai, 1970 R.C.J. 732 Held that an eviction could not be directed on the basis of an anticipatory default; but if arrears are found to be due, a conditional eviction order is lawful. The court relied on this case to show that it supports (not undermines) the validity of conditional orders where arrears are found to exist; the judgment distinguishes anticipatory default from conditional order based on proven arrears.
Chattar Singh v. Banarsi Lal, 1976 R.C.R. 641 Upheld the legality of a composite conditional order (even when not by consent), noting such orders are a usual practice. Cited with approval; the court agreed with B.C. Misra, J.'s reasoning that such composite orders are legal and valid.
Mohinder Singh v. Lajwanti, 1976 R.L.R. 62 Contains observations (not fully argued) suggesting conditional orders may not be permissible under the Act. Court noted the observations but treated them as not persuasive because they appear to be obiter and not fully argued; therefore not followed.
Bhoj Dutta v. Brij Narain Bagai, 1972 R.C.J. 293 Interpretation of a conditional order for recovery of possession in a different connection. Cited to show there is nothing in that judgment suggesting conditional orders are invalid.
M/S Paradise Industrial Corpn. v. M/S Kiln Plastics Products, 1976 R.C.R. 194 (S.C.) Substance over form: substance of the order matters more than literal sequencing. Relied upon to support the proposition that a minor inversion of sentence sequence in the order does not invalidate it where the substance is clear.
Hira Lal Patni v. Sri Kali Nath, A.I.R. 1962 S.C. 199 Objection to an order being without jurisdiction can be taken at any stage only where there is an inherent lack of jurisdiction making the court incompetent to try the case. Used to explain the limited scope of jurisdictional objections in execution proceedings.
Vasudev Dhannjibhai Modi v. Rajabhai Abdul Rahman & others, A.I.R. 1970 S.C. 1475 Execution court will not investigate questions of fact; jurisdictional objection must be patent on record. Cited to reinforce the principle that execution proceedings are not the forum to re-examine factual matters or mixed questions under the guise of jurisdictional challenge.
Addisons Paints & Chemicals Ltd. v. M/s. Sant Ram Parma Nand & others, A.I.R. 1976 Delhi 137 Similar statement on limitations of objections in execution proceedings. Relied on to demonstrate that a contention that an order is contrary to law does not necessarily go to jurisdiction for execution-stage challenge.
Ittyavira Mathai v. Varkey Varkey & another, A.I.R. 1964 S.C. 907 Even if a decree is illegal (e.g., barred by limitation), it may still be executable; remedy was by appeal. Applied to show that illegality or contravention of law is not always a ground to refuse execution where the decree is otherwise valid on its face.
Chandan Mall Tapna v. Abdul Gani Meah, A.I.R. 1976 Gauhati 54; Dukharan Mukherji v. Tara Sundari Dassi & ors., 83 C.W.N. 147; Ratilal Narbheram v. Welji Nagji (AIR 1975 Bombay 218) Cases cited by tenant for proposition that decree violating a mandatory provision is a nullity and not executable. Court observed that to the extent these decisions conflict with the earlier Supreme Court authorities cited, they cannot be followed.

Court's Reasoning and Analysis

The court began by recognizing the textual scheme of sections 14(2) and 15(1): section 15(1) requires the Controller to direct payment/deposit of arrears within one month and to require current rent month by month; section 14(2) bars making an eviction order under clause (a) of subsection (1) if the tenant makes payment or deposit as required by section 15. On a strict literal reading, the Controller ought to wait the one-month period after an order under section 15(1) to see if the tenant complies before allowing the bar in section 14(2) to operate.

However, the court rejected the submission that a combined order (a single order that both directs payment within one month and provides that a recovery order shall operate in the event of non-payment) is invalid. The court observed that:

  • The joint effect of sections 14(2) and 15(1) is to afford an opportunity to tenants to avoid eviction; their purpose is protective and similar to section 114 of the Transfer of Property Act (relief against forfeiture for non-payment of rent).
  • Composite or combined orders of the kind under challenge have been frequently made and have "almost become a practice", and prior decisions have treated such orders as lawful and useful in avoiding unnecessary hearings and prolongation of proceedings.
  • The case law specifically cited (Ramiah Chettiar) actually supports conditional orders when arrears are found to be due; that case distinguished anticipatory default from conditional orders based on present arrears.
  • Decisions such as Chattar Singh affirm the legality of composite orders and reject the argument that separate chronological orders must be made; Mohinder Singh's contrary observations were described as obiter and insufficiently argued and therefore not persuasive.
  • The court emphasized practical effect over formal sequencing: while the preferred drafting form would be to first direct payment under section 15(1) and then state that, if not complied with within one month, an order for recovery would be deemed to have been passed, a literal inversion of sentence order in the Additional Controller's order was an oversight in form and not determinative of substance. The substance — that the eviction was to operate only if payment was not made within one month — was clear from the order and the Controller's intent.
  • The tenant failed to show any prejudice caused by a combined order; indeed, a combined order can advantage the tenant by allowing him to contest both components in a single appeal.
  • Even if the order were read strictly and found contrary to law, the appropriate remedy was appeal rather than an objection in execution proceedings. The court invoked established authorities to explain that only an inherent and patent lack of jurisdiction can be raised in execution; an objection that an order is merely contrary to law generally does not constitute jurisdictional incapacity and is not a proper execution-stage challenge.

Applying those principles to the facts, the court found (a) the Additional Controller had in substance made an order under section 15(1) and a conditional order of recovery consistent with section 14(2), (b) the inverted sequence in phrasing was a formal defect without substantive consequence, (c) there was no shown prejudice to the tenant, and (d) the objection in execution that the order was without jurisdiction did not disclose an inherent jurisdictional deficiency patent on the record.

Holding and Implications

HOLDING: The second appeal is DISMISSED.

The court held that the order of the Additional Controller was not a nullity or without jurisdiction. It upheld the validity of a composite order that directs payment under section 15(1) while providing that the recovery order will take effect if payment is not made within the stipulated period, treating the substance of the order as decisive notwithstanding a minor inversion in its verbal sequence.

Implications:

  • The immediate practical effect is that the controller's order for recovery of possession (subject to the conditional suspension described in the order) stands and is executable; the tenant's execution-stage objection that the order was without jurisdiction failed.
  • The court reaffirmed that challenges to orders as being contrary to law are generally matters for appeal, and that execution proceedings permit inquiry only where an order discloses an inherent, patent lack of jurisdiction on its face.
  • The judgment treated composite conditional orders as legally valid in appropriate circumstances and relied on existing case law supporting that practice; it did not purport to create a novel legal principle beyond applying and endorsing prior authority.
  • The appeal was dismissed with costs; counsel's fee was assessed at Rs. 300/-, and costs were assessed earlier at Rs. 30 in the Additional Controller's order as noted in the record.

Disposition: Appeal dismissed. (Order date and appeal procedural details are recorded in the opinion.)

    M/S. Mehrose Ice Cream & Frozen Food Company v. Jaswant Rai

    T.P.S Chawla, J.:— This is a second appeal under section 39 of the Delhi Rent Control Act 1958 (the ‘Act’) and the relevant facts are as follows.

    2. A firm called Mebrose Ice Cream and Frozen Food Company was the tenant of two shops, and appurtenances, on the ground floor of the market at Greater Kailash, New Delhi. Jaswant Rai was the landlord. On 19th July 1971, the landlord applied under section 14(1)(a) of the Act for an order for recovery of possession on the ground that the tenant had not paid arrears of rent. The tenant entered appearance on 25th August 1971 and sought more time to file a written statement. Adjournments for this purpose were granted five times, but no written statement was filed. On the last occasion the case was fixed for filing of a written statement on 28th October 1971. No one appeared on behalf of the tenant on that day. Consequently, an order to proceed ex parte against the tenant was made, and the landlord was directed to produce his evidence on 30th October 1971. After the landlord's evidence had been recorded, the matter was adjourned for hearing arguments on 5th November, 1971, on which date judgment was reserved. An order for recovery of possession was passed by the Additional Controller on November 1971.

    3. There was no appeal against that order, but on 21st December 1971 the tenant applied for setting it aside. On this application there were protracted proceedings. Ultimately, it was dismissed on 18th February 1975. It was held that there was no sufficient cause for the non-appearance of the tenant on 28th October 1971. An appeal against this order to the Rent Control Tribunal was dismissed on 8th December 1976. No second appeal was filed.

    4. Then, the landlord tried to execute the order for recovery of possession. He was met with an objection filed by the tenant on 10th February 1977 that the order for recovery of possession was a nullity as it had been made without jurisdiction, and, therefore, could not be executed. The objection was overruled on 28th February 1977. An appeal to the Rent Control Tribunal was dismissed on 9th September 1977. I have now to decide the second appeal.

    5. In his order for recovery of possession the Additional Controller found that arrears of rent were due from the tenant, and had not been paid for tendered to the landlord despite service of a notice of demand. He the said:

    “I, therefore, allow the petition under section 14(1)(a) and order the respondent to deliver possession of the premises in dispute to the petitioner. However, in case the respondent a sum of Rs. 14,000/- as arrears of rent upto 30-6-1971 and arrears of rent at the rate of Rs. 1,700/- with effect from 1-7-71 uptodate within one month from the date of this order, then in that case the respondent company shall be entitled to the benefit of section 14(2) and shall in that case shall (sic) not be liable to eviction under clause (a) of section 14(1). The order is passed ex parte with costs assessed Rs. 30/-.'

    Admittedly, the tenant did not pay or deposit arrears of rent in accordance with this order or at all.

    6. It was contended on behalf of the tenant before the authorities below, and is likewise contended here, that this order is a combination of two orders in one and violates section 14(2) of the Act. Hence, it was said to be a nullity as being excess of jurisdiction.

    7. In every proceeding for recovery of possession on the ground mentioned in section 14(1)(a), the Controller is required by section 15(1) to make an order directing the tenant to pay or deposit the arrears of rent ‘within one month of the date of the order’, and also to pay or deposit current rent ‘month by month’. It was argued that after making such an order, the C0ontroller must wait atleast one month before proceeding to make an order for recovery of possession, because section 14(2) says:4

    ‘No order for the recovery of possession of any’ premises shall be made on ground specified in clause (a) of the proviso to sub-section (1), if the tenant makes payment or deposit as required by section 15'.

    There is no proviso to that sub-section which is not relevant. In the present case, it was submitted, the order for recovery of possession had been passed at one and the same time as the order under section 15(1), without allowing an interval of one month, thus, rendering section 14(2) nugatory.

    8. The same point was also put in another way. It was said that in the very first sentence of the passage which I have quoted, the Additional Controller had made an order for recovery of possession and the functus officio immediately thereafter. He could not, therefore, go on to impose the condition subsequent stated in the next sentence, on the fulfilment of which the order for recovery of possession was to cease to have effect.

    9. I agree that by the strict letter of the law, after making an order under section 15(1), the Controller must wait for a month to see whether that order is complied with or not. It is only then that it can be known whether the bar in section 14(2) is to prevail. The joint effect of those two sections is to afford relief to the tenant where otherwise he is exposed to an order for recovery of possession. They are reminiscent of section 114 of the Transfer of Property Act 1882 which is entitled ‘Relief against forefeiture for non-payment of rent’, and achieve a similar purpose. It is worth noting that the side-note of section 15 reads: ‘When a tenant can get the benefit of protection against eviction’.

    10. But from this it does not follow that an order under section 15(1) conjoined with a conditional order for recovery of possession is invalid. Of course, the condition envisaged is that the order for recovery of possession shall have effect only after one month if, within that time, the order under section 15(1) has not been obeyed. Such composite orders have been frequently made, and have almost become a practice: see Mahendra Kumar Khandelwal v. Padam Chand Jain, 1969 R.C.J 1036(1); Shri Kundan Lal v. Kuni Lal and others, 1971 R.C.R 825(2). They save necessary hearings and a prolongation of the proceedings: see Smt. Sumitra Rani v. M/s. Bennet Coleman and Co. Ltd., 1970 R.C.R 566(3).

    11. I repeatedly invited counsel for the tenant to state what prejudice a combined order has caused to his client. All that he was able to say, after a full opportunity for consideration, was that if two separate orders had been made at different times his client would have been able to file two separate appeals, whereas, now, he had been able to file only one. Far from working to the prejudice of the tenant, surely, this is to his advantage. An appeal against a combined order enables him to contest each of the component parts. Thus, the tenant is able to secure in one appeal the same result that he might have got by two. I, therefore, conclude that a combined order causes no prejudice to the tenant. At any rate, none was revealed to me.

    12. However, the question still remains as to whether such an order is legally valid. Counsel for the tenant cited Ramiah Chettiar v. K. Sankaralingam Pillai, 1970 R.C.J 732(4). In that case the tenant agreed that if he failed ‘to pay in future the rent due for a month on or before the 10th of the succeeding month’, the landlord may take possession of the premises forthwith. An order was made accordingly. There was nothing to suggest that any arrears of rent were due. The judge held that under the Rent Control Act in force in Madras an order for recovery of possession could only be passed if one of the grounds mentioned in the Act was established. Accordingly, respecting the case in hand, he said ‘the Rent Controller had the jurisdiction to direct eviction, only if he found, as a fact, that the tenant had committed wilful default in the payment of rent for the period preceding the application. By the consent order, the tenant had, in effect, ‘renounced’ his rights under the Act which was not permissible.

    13. It was in this context that the judge said the Rent Controller ‘has no power to direct eviction on the basis of an anticipatory default’. Nevertheless, he made it clear that if arrears of rent had been found to be due, a conditional order of eviction could have been lawfully made. This appears from the last paragraph of the judgment where he says:

    ‘If, in this case, the joint endorsement had admitted that the tenant had committed default in the payment of rent and was therefore liable to eviction, and if further an eviction order had been passed by the Rent Controller with a condition that it would remain suspended so long as the tenant continued to pay the rent regularly in future, and would come into force the moment he committed default it would perfectly be an enforceable order. But, unfortunately, that is not the case here.’

    So, this case actually goes against the contention urged on behalf of the tenant.

    14. In Chattar Singh v. Banarsi Lal, 1976 R.C.R 641(5), a combined order of the same kind as the one presently under consideration was passed by consent. It was subjected to the same criticism. The gist of the argument was that two separate orders, chronologically removed by one month, should have been passed. B.C Misra, J., rejected the argument saying ‘All procedure is open to the court unless prohibited by law’, and mentioned that such orders had become a ‘usual practice’. He added that ‘Such a composite order is clearly legal and valid particularly when it is based on the consent of the parties and is not contrary to any of the provisions of the Act’. I agree with his reasons and his conclusion. It was argued that his judgment rested solely on the ground that the order there in question was made by consent. That is not so. He has in terms held that even otherwise the order was perfectly valid in law.

    15. It is true that in Mohinder Singh v. Lajwanti, 1976 R.L.R, 62(6) (Note 66). D.K Kapur, J., has made some observations to the effect that a conditional order for recovery of possession cannot be made under the Act. But there is no discussion of the point, and it does not appear to have been fully argued. The main question in that case was as regards the mode of fixing interim rent under section 15. Besides, the whole judgment seems to have been delivered obiter, because, as the judge himself acknowledged, the appeal by the tenant had become ‘infructuous’ for he had already been evicted. On an earlier occasion, in Bhoj Dutta v. Brij Narain Bagai, 1972 R.C.J 293(7), the same learned judge was called upon to interpret a conditional order for recovery of possession, though in a rather different connection. There is nothing in that judgment to suggest that he thought such an order to be invalid.

    16. The alternative way in which counsel for the tenant stated his submission, gives too much importance to the literal meaning of the order. If the sequence of the two sentences that I have quoted from the order of the Additional Controller had been reversed, counsel would have had practically nothing to say. I would accept that having regard to the scheme of the Act, the correct way in which to frame a conditional order is to direct the tenant to pay or deposit the arrears of rent within one month, and then to add that in the event of non-payment within that time an order for recovery of possession would be deemed to have been passed. In substance, this is really what the Additional Controller has done and obviously intended to do. Through oversight he has inverted the sequence. The order itself indicates that he had both section 15(1) and section 14(2) in mind. And, it is the substance which matters, not the more form: see M/S Paradise Industrial Corpn. v. M/S Kiln Plastics Products , 1976 R.C.R 194(S.C)(8).

    17. For these reasons, I am not persuaded that the order made by the Additional Controller is a nullity or without jurisdiction. In any case, even had I reached the opposite conclusion the point could not have succeeded as an objection taken in the course of execution proceedings. Although the objection that a decree or order was made without jurisdiction can be taken at any stage and in any proceeding, the plea must pertain to an ‘inherent lack of jurisdiction’ rendering the court ‘incompetent to try’ the case: see Hira Lal Patni v. Sri Kali Nath , A.I.R 1962 S.C 199(9). Even then the objection can be entertained only if it is patent on the fact of the record, and the court will not investigate into questions of fact: see Vasudev Dhannjibhai Modi v. Rajabhai Abdul Rahman and others, A.I.R 1970 S.C 1475(10), and Addisons Paints and Chemicals Ltd., v. M/s. Sant Ram Parma Nand and others, A.I.R 1976 Delhi 137(11). The contention that a decree or order is contrary to law does not go to jurisdiction, and is not entainable in the course of execution proceedings. It may have been a good ground of appeal. Thus, if a suit is decreed though barred by time, the decree is executable notwithstanding the illegality: see Ittyavira Mathai v. Varkey Varkey and another, A.I.R 1964 S.C 907(12).

    18. Counsel for the tenant cited some cases for the proposition that a decree which does not comply with or violates a mandatory provision of law is a nullity and cannot be executed: see Chandan Mall Tapna v. Abdul Gani Meah, AIR 1976 Gauhati 54(13), Dukharan Mukherji v Tara Sundari Dassi and ors., 83 C.W.N 147(14) and Ratilal Narbheram v. Welji Nagji trading in the name of “Nagji Ghelabhai” and another, AIR 1975 Bombay 218(15). To the extent that those cases contain any observations not in harmony with the judgments of the Supreme Court to which I have just referred, they cannot be followed.

    19. In essence the argument of counsel for the tenant was that the order made by the Additional Controller violated section 14(2) of the Act, in that, in order for recovery of possession had been made without giving the tenant an opportunity to comply with an order under section 15(1). In my opinion, on a common sense construction, the order for recovery of possession was not intended to have effect unless the tenant did not pay the specified arrears of rent within one month. But even supposing it has to be read in a strictly literal way, the remedy was by appeal and not an objection in execution.

    20. This appeal is, therefore, dismissed with costs. Counsel's fee Rs. 300/-.

    R.S Appeal dismissed.
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    Comments

    M/S. Mehrose Ice Cream & Frozen Food Company v. Jaswant Rai
    (Mar 29, 1979)