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R.C Jain v. Sk. Gupta .

Delhi High Court
Aug 7, 1979
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Summary of Judicial Opinion — S.S. Chadha, J.

Factual and Procedural Background

The revision petition arises under Section 25B(8) of the Delhi Rent Control Act, 1958 and challenges an order dated 23 December 1978 by the Additional Rent Controller, Delhi (Shri J.D. Kapoor), which declined the tenant's application for leave to defend filed under Section 25B and directed the tenant to hand over vacant possession.

The respondents (landlords) had filed a petition for eviction under Section 14(1)(e) read with Section 25 of the Delhi Rent Control Act, 1958, seeking eviction of the petitioner-tenant from premises described in the eviction petition (two rooms, passage, verandah, kitchen, W.C., court yard and bath at municipal No. 6404/2, Block No. 7-B (known as Block No. 7), Gali No. 4, Dev Nagar, Karol Bagh, Ward No. 16, New Delhi).

Summons issued in the prescribed form. The tenant moved an application for leave to defend under Section 25B supported by a detailed affidavit. The landlords filed a reply supported by an affidavit of Shri S.K. Gupta. The Additional Rent Controller considered the affidavits and refused leave, prompting this revision petition.

Legal Issues Presented

  1. Whether the Additional Rent Controller erred in law by going into the merits of the tenant's defences when considering the application for leave to defend under Section 25B, instead of limiting the inquiry to whether the tenant's averments, if presumed true or substantiated, would disentitle the landlord to eviction.
  2. Whether the specific defences raised by the tenant in the affidavit (use as residential-cum-commercial premises, alleged non-execution/forgery of the rent note, inclusion of the premises in a declared slum area, and sufficiency of the landlords' accommodation) disclosed triable issues that entitled the tenant to leave to contest.
  3. As framed in the pleadings, whether the question of inclusion of the property in a slum area under the Slum Areas (Improvement and Clearance) Act, 1956 (Section 3) bears on the maintainability of the eviction petition and how that interacts with Section 14(1)(e) read with Section 25B of the Delhi Rent Control Act.

Arguments of the Parties

Tenant's Arguments

  • The premises are in a slum area and the eviction petition is not maintainable because no permission from the Competent Authority (Slum) was obtained.
  • The premises were let for residential-cum-commercial use with a clear understanding that the tenant could carry on business and reside there; the tenant has always used the premises as residential-cum-commercial with the landlords' consent/knowledge/intimation.
  • No rent note as alleged was ever executed at the commencement of tenancy; the tenant's signatures were obtained on blank stamp paper and the landlords are seeking to rely on a forged or improperly executed document to claim eviction for residential purposes.
  • The landlords already occupy more than sufficient accommodation (entire second floor plus first floor), asserting bona fide need on their part is not genuine.
  • The tenant supported these pleas with a detailed affidavit under Section 25B claiming facts which, if substantiated, would disentitle the landlords to eviction under Section 14(1)(e).

Landlords' Arguments

  • The landlords filed an eviction petition under Section 14(1)(e) read with Section 25, asserting a right to evict the tenant (including reliance on a rent note purporting to show tenancy on residential terms).
  • They contended the disputed property is not included in the slum area (documents and notifications before the Additional Rent Controller excluded Block No. 7-B from the declared slum area for Ward No. XVI).
  • The landlords filed a counter-affidavit (affidavit of Shri S.K. Gupta) opposing the tenant's application for leave to defend; their contentions included the authenticity of the rent note and the maintainability of the eviction petition.
  • At the hearing before the Additional Rent Controller, the Controller treated the slum-area objection as a technical/insubstantial plea and also recorded that the tenant allegedly admitted using the premises for residential purposes (the judgment below characterises that recorded admission as not being contained in the tenant's affidavit).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ram Chand v. Gokal Chand, 1977 R.L.R. 73 Sets out the principles governing grant of leave under Section 25B: the Controller's enquiry is limited to whether the tenant's affidavit discloses facts or legal grounds which, if substantiated, would disentitle the landlord to relief; Controller must not go into merits or subject the material to scrutiny at the leave stage. The Court reproduced and applied these principles to hold that the Additional Rent Controller erred by going into merits on affidavits and by thereby refusing leave when the tenant's averments raised triable issues.
Sarwan Singh v. Kasturi Lal, 1977 Raj. L.R. 48 (S.C.) Relied upon by one side for the proposition that certain provisions (the opinion references an argument that Section 14(1)(e) read with Section 25B might prevail over Section 19 of the Slum Areas Act); the case concerned Section 14A and Chapter III-A of the Delhi Rent Control Act. The Court noted the reliance but explicitly stated that it did not express any considered opinion on the point in the present case.

Court's Reasoning and Analysis

The Court began by identifying the settled legal principles (as explicated by H.L. Anand, J. in Ram Chand v. Gokal Chand) that the Controller's inquiry when considering a Section 25B affidavit is limited and should determine only whether the grounds disclosed could, if proved at trial, disentitle the landlord to an order for eviction. The Court emphasised that this inquiry is narrower than a full trial and that the Controller must not go into the merits by scrutinising evidence or resolving factual disputes at the leave stage.

Applying those principles to the facts before it, the Court reviewed the tenant's affidavit and the counter-affidavit and identified the principal pleaded defences:

  • The tenant's plea that the premises were let and always used as residential-cum-commercial with landlords' knowledge — the Court found that this averment, if true, would disentitle the landlords to eviction under Section 14(1)(e), and that the Additional Rent Controller wrongly treated the pleadings on this point as lacking substance or as admitted factual concessions by the tenant.
  • The tenant's challenge to the rent note: the Court noted discrepancies as recorded on the record (purchase of small-value stamp paper by one Shri R.C. Jain at a time inconsistent with the claimed tenancy terms; the tenant's assertion that signatures were obtained on blank stamp paper) and observed that the typed matter on the rent note suggested further examination was necessary. The Court held these allegations could not be labelled sham or fictitious at the leave stage and thus raised triable issues.
  • The slum-area contention: the tenant alleged the premises fell within an area declared a slum under the Slum Areas (Improvement and Clearance) Act, 1956; the landlords placed notifications and a DDA letter certifying exclusion of Block No. 7-B from the slum declaration. The Additional Rent Controller treated this as a technical plea and additionally recorded an argument that Section 14(1)(e) read with Section 25B should prevail over Section 19 of the Slum Areas Act. The Court noted the reliance on Sarwan Singh v. Kasturi Lal but expressly declined to express any considered view on the conflict.
  • The plea regarding sufficiency of the landlords' accommodation was characterised by the Court as “half-hearted” and of less weight on the facts before it.

The Court concluded that the Additional Rent Controller had transgressed his limited jurisdiction by undertaking a premature investigation into the rival claims on the basis of affidavits, thereby going into the merits at the leave stage. Because some of the tenant's pleaded defences, particularly the letting-purpose and the rent-note allegations, could, if substantiated, non-suit the landlords, the Controller should have granted leave to contest rather than dismissed the application for leave after weighing the affidavits.

Holding and Implications

Holding: The impugned order of the Additional Rent Controller dated 23 December 1978 is quashed and set aside. The tenant is granted leave to contest the eviction petition.

Implications and immediate consequences:

  • The tenant has leave to defend the eviction petition on the basis of bona fide necessity and the other pleaded grounds identified in the affidavit.
  • The parties were directed to appear before the Sixth Additional Rent Controller, Delhi (then presided over by Shri M.L. Sahni) on 20 August 1979 for further proceedings.
  • The Additional Rent Controller is directed to decide the eviction petition expeditiously.
  • The Court did not pronounce on the broader conflict between provisions of the Delhi Rent Control Act and the Slum Areas (Improvement and Clearance) Act; it recorded reliance on a prior case but stated it would not express a considered opinion on that point in this judgment.

Note: The decision reverses a preliminary factual/legal determination and confines itself to correcting the lower authority's jurisdictional error; the opinion applies established principles rather than announcing a new legal doctrine beyond those principles.

Show all summary ...

S.S Chadha, J.:— This revision petition under Section 25(B)(8) of the Delhi Rent Control Act, 1958 is directed against the order dated December 23, 1978 passed by Shri J.D Kapoor, Additional Rent Controller, Delhi declining an application for leave to defend filed under the provisions of Section 25 B of the said Act and directing the petitioner to hand over the vacant possession of the suit premises.

2. The Respondents—landlords filed a petition for eviction under Section 14 (1)(e) read with Section 25 of the said Act for eviction of the petitioner from the premises comprising of two rooms, passage, verandah, kitchen, W.C court yard and a bath bearing municipal No. 6404/2, Block No. 7-B (popularly known as Block No. 7), Gali No. 4, Dev Nagar, Karol Bagh, Ward No. 16 New Delhi.

3. Summons were issued to the petitioner-tenant in the form specified in 3rd Schedule. On the receipt of the summons issued by the Additional Rent Controller, the tenant moved an application for leave to defend and to contest the case. The application was supported by a detailed affidavit of the tenant in terms of the application. Reply to the application was filed by the landlords supported by an affidavit of Shri S.K Gupta, one of the respondents. The learned Additional Rent Controller, Delhi considered the averments made in the affidavits and expressed that the tenant has in his affidavit raised the following defences in support of his claim of being granted the leave to contest the eviction petition:—

(1) that the premises are situated in slum area and the petition is not maintainable as no permission from the Competent Authority (Slum) has been obtained;

(2) that the premises were let to the tenant with clear understanding that he will be entitled to use the premises for carrying on his business besides using it as his residence and he has throughout been using the premises for residential-cum commercial purposes;

(3) that no rent note as alleged by the landlords was ever executed at the time of commencement of tenancy and signatures of the tenants were obtained on blank paper;

(4) that the present accommodation in occupation of the landlords is more than sufficient as the landlords are in occupation of entire second floor besides the first floor accommodation.

4. The learned Additional Rent Controller noticed the principles settled by this Court governing the grant or refusal of leave to the tenant for contesting the eviction petition filed by the landlords by stating that if the facts disclosed by the tenant in the affidavit filed under Section 25 B of the said Act are of such nature which when presumed to be correct or found substantiated would non-suit the landlord that is to say would disentitle the landlords from seeking eviction of the tenant, the tenant should ordinarily be granted leave. It was further noticed that the facts disclosed and the defences raised by the tenant in the affidavit should be specific, positive and of categorical nature and should give rise to triable issues. After stating these basic principles, the Additional Rent Controller erred in law in going the merits of the pleas raised by considering the affidavit of the tenant and the counter-affidavit of the landlords.

5. The principles for the grant of leave have been stated by H.L Anand, J. in “Ram Chand v. Gokal Chand”, 1977 R.L.R 73 and 1 will do well to reproduce the same:——

“It appears to me that on their plain language and on a combined reading of sub-Section (4) and (5) of Section 25 B of the Act, in the context of the compulsions that led to the amendment, the provisions are clear as to the circumstances in which leave to contest should be granted and do not admit of any controversy. Ordinarily, a party who brings a case to Court, must prove such facts as would entitle it to the relief and a bare denial, therefore, by the party that contests such an action would be sufficient to put the question, whether of fact, or of law in issue between the parties casting a duty on the party which went to the Court to establish the facts and, therefore, a corresponding obligation on the Court to investigate both the facts and the law to arrive at a just conclusion. The provisions of Order 37 Rules 2 and 3, C.P.C as indeed the provisions of S. 25 B (4) and (5), however represent a departure from the ordinary norm in that in both the cases the defendant has no right to contest the prayer for relief unless it obtains leave to contest the action or the application for eviction as the case may be. It follows, therefore, that a bare denial would not ordinarily entitle the defendant in an action under Order, 37 or a tenant in an application for ejectment which may be within the mischief of Section 25 B to defend. While in the case of Order 37 the defendant must raise triable issues to entitle him to leave, the affidavit that may be filed by the tenant must disclose facts as would “disentitle” the landlord of the relief of eviction The tenant, would therefore, be entitled to leave if his affidavit discloses grounds, whether of fact or of law, which if substantiated at the trial, would disentitle the landlord from obtaining an-order of eviction. The enquiry before the Controller when leave is sought is, therefore, of a limited nature and is intended to determine a very narrow question if the grounds on which leave is sought, whether based on assertion of fact or of law, would non-suit the landlord, if these could ultimately prevail. While a bare denial would, therefore, be insufficient it is not possible to Jay down any rule of universal application as to the particulars that the tenant must disclose so as to entitle him to leave. It would depend upon the facts of each case. It would, however, be reasonable to expect that the tenant would disclose all such facts and particulars as may be within his knowledge and which he could, with due care and caution, find out. The function of the Controller, therefore, when called upon to consider if leave should or should not be granted, is to determine if the grounds disclosed averments of fact and law which could eventually disentitle that landlord to relief. But it is not open to the Controller for the purpose of determining that question to require the tenant to produce material in support of the averments, to subject the material that may be available to scrutiny to assess the material or to determine as to how the Controller would look at the question or the material eventually at the trial. In the same way if a plea of law is raised, which, if substantiated would non-suit the landlord, the only function of Controller is to find out if. such a plea is possible plea to take of the law and on such a plea prevailing with the Controller the landlord could be non-suited. In such a situation also it would not be open to the Controller to refuse leave to contest because, even though the plea raises a triable question of law, the Controller chooses to look at the plea at that preliminary stage in a manner which may be unfavorable to the tenant. To do so, in either of the cases, would be a transgression of the limited function of the Controller.”

6. I do not propose to deal with the reasons advanced by the learned Additional Rent Controller in negativing the pleas of the tenant in the impugned order except to the extent of ascertaining the bonafides or malafides in raising the pleas. The affidavit made an averment that the eviction petition is not maintainable inasmuch as the premises in dispute were specifically let out and have all through been used for residential-cum-commercial purposes till date with the consent, knowledge or intimation of the landlords. Averments had also been made in the affidavit that no rent deed was executed either at the time of the commencement of the tenancy of the premises in dispute or later on. The affidavit further deposed that the signatures of the tenant were obtained on the stamp paper in blank in the circumstances stated in the affidavit and thus the landlords with the help of a forged document which was never prepared or executed by the tenant, are trying to claim eviction on the plea that the premises were let for residential purposes. The original rent note is on the record. If shows that the stamp, paper was purchased by Shri R.C Jain on June 21, 1973 of the value of Rs. 4/-. This is the time when the tenant took the tenancy of the first floor at a monthly rent of Rs. 330/-. The requisite stamp paper for a monthly tenancy of Rs. 330/- for a period of 11 months would be Rs. 40- The tenancy of the premises in dispute is at the rate of Rs. 400/- per month with effect from August 21, 1973 The stamp paper for rent note for 11 months would be Rs. 43/- or Rs. 50/-. The tenant had also taken the plea that the signatures were obtained on blank. The typed matter on the rent note does suggest for further examination whether the rent note was executed in the manner stated by the tenant in his affidavit or not. The signatures of the tenant are oh the front sheet of the stamp paper at the bottom as well as on the back side at the bottom. The pleas raised by the tenant could thus hot be termed as sham and fictitious. The Additional Rent Controller then stated that the tenant has admitted that he has been using the premises for residential purposes. Such an averment is not contained in the affidavit. On the contrary, the averment is that the premises in dispute have all throughout been used for residential-cum-commercial purposes till date with the consent, knowledge or intimation of the landlords. The plea raised by the tenant of the letting purposes thus did raise a triable issue which could not have been dismissed in law merely on the allegations contained in the affidavits at the time of the grant of leave. The trial Court, obviously, misdirected itself in going into the merits of the contentions. Such a plea as is raised in the affidavit entitled the tenant to the grant of leave to contest the petition for eviction.

7. Another plea raised by the tenant was that the premises in dispute are included in areas which have been declared as slum areas under Section 3 of the slum Areas (Improvment and Clearance) Act, 1956. The premises are admittedly situated in Ward No. XVI. The block number mentioned in para 1 of the eviction petition is Block No. 7-B (popularly known as Block No. 7). The landlords also made an averment that the property in dispute is not included in the slum area. In the notifications which were placed before the Additional Rent Controller, Block No. 7-B is excluded from Ward No. XVI in the declaration of the slum areas. The tenant, however, claims that the property is situated in Block No. 7 which is included in the Slum Area. A letter obtained from the Delhi Development Authority was placed on the record certifying that the premises are not included in the area which has been declared as a Slum Area under Section 3 of the Act. The learned Additional Rent Controller looked into the documents as it was purely a technical plea to hold that the objection of the tenant does not raise any real issue. Apart from it, the argument is that the provision of Section 14 (1) (e) read with Section 25 B must prevail over those contained in section 19 of the slum areas (improvement & clearance) act. Reliance is placed on “Sarwan Singh v. Kasturi Lal”, 1977 Raj. L.R 48 (S.C). That was a case under Section 14 A read with Chapter III-A of the Delhi Rent Control Act, 1958. I do not express any considered opinion.

8. The last ground raised by the tenant that the present accommodation in occupation of the landlords is more than sufficient is only a half-hearted plea and should not detain me.

9. The learned Additional Rent Controller transgressed his jurisdiction by going into the merits of the pleas on the basis of the affidavits while considering the application for grant of leave to the tenant. The plea of letting purpose, if substantiated, would have non-suited the landlords in a petition for eviction under Section 14 (1) (e) of the said Act. The learned Additional Rent Controller virtually embarked on a premature investigation into the rival claims at the stage of considering the application for grant of leave. The impugned order thus clearly suffers from illegality in exercise of the jurisdiction and is quashed. The tenant is granted leave to contest the eviction petition on the ground of bona fide necessity. The parties are directed to appear before the Sixth Additional Rent Controller Delhi (now presided over by Shri M.L Sahni) on 20th August, 1979. The Additional Rent Controller, Delhi will decide the eviction petition expeditiously.