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citation codes
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Acts
  • Section 4(1) of the Karnataka Public Premises (Eviction of Unauthorised Occupants) Act, 1974 (for short hereinafter referred as PP Act)
  • SECTION 5 BANKING COMPANIES ACQUISITION AND TRANSFER OF UNDERTAKINGS ACT 1980
  • Section 4A of the Mines and Minerals (Regulation and Development) Act, 1957
  • Section 5(5) read with Section 17 of the Banking Companies Act, 1980
  • provisions of Section 2(a) and Section 11(1) of the PP Act.
  • Rent Control Act, 1961 (for short KRC Act),
  • Section 21(1) of the KRC Act
  • Section 2(g) of the PP Act.7.
  • Section 2(g) of the PP Act
  • 2(g) of the PP Act
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
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Acts
  • Section 4(1) of the Karnataka Public Premises (Eviction of Unauthorised Occupants) Act, 1974 (for short hereinafter referred as PP Act)
  • SECTION 5 BANKING COMPANIES ACQUISITION AND TRANSFER OF UNDERTAKINGS ACT 1980
  • Section 4A of the Mines and Minerals (Regulation and Development) Act, 1957
  • Section 5(5) read with Section 17 of the Banking Companies Act, 1980
  • provisions of Section 2(a) and Section 11(1) of the PP Act.
  • Rent Control Act, 1961 (for short KRC Act),
  • Section 21(1) of the KRC Act
  • Section 2(g) of the PP Act.7.
  • Section 2(g) of the PP Act
  • 2(g) of the PP Act
Smart Summary

Structured Summary of the Opinion (Shivaraj Patil, J.)

Factual and Procedural Background

The appellant took possession of certain premises on an 11-month lease from Corporation Bank Ltd. and executed a lease deed for that period. After the 11-month period expired he remained in possession as a statutory tenant. Corporation Bank Ltd. issued a registered legal notice dated 3-10-1978 terminating the tenancy; the appellant replied on 16-10-1978. Corporation Bank Ltd. then filed HRC 406/1978 in the Court of the Munsiff at Mangalore for eviction. Corporation Bank Ltd. was nationalised on 15-4-1980 and the 2nd respondent is its successor; HRC 406/1978 was withdrawn by the 2nd respondent on 17-1-1981.

Subsequently the 3rd respondent issued a show cause notice under Section 4(1) of the Karnataka Public Premises (Eviction of Unauthorised Occupants) Act, 1974 (the "PP Act") to the appellant. The appellant replied on 23-3-1981 objecting to eviction. After enquiry the 3rd respondent passed an order under Section 5 of the PP Act on 7-9-1981 directing eviction. The appellant appealed to the District Judge (the 1st respondent), who dismissed the appeal on 25-2-1982.

The appellant filed Writ Petition No. 14150/1982 in this Court challenging the District Judge's order. The learned single Judge heard a batch of writ petitions (including this one) and dismissed them by a common order dated 28-9-1988. The present document is the Writ Appeal (W.A. 427/1989) from that dismissal.

Legal Issues Presented

  1. Whether, for initiation of proceedings under Section 4 and order under Section 5 of the PP Act, it was a condition precedent that the public authority (the successor bank) determine the jural relationship of landlord and tenant or issue a fresh notice of termination of tenancy after nationalisation.
  2. Whether the protection afforded by the Karnataka Rent Control Act, 1961 (KRC Act) prevents the application of the PP Act so that a person in lawful/contractual possession under the KRC Act cannot be treated as an unauthorised occupant for purposes of the PP Act.
  3. Whether the PP Act is intra vires and whether the KRC Act would prevail over the PP Act (i.e., the conflict of statutes and which statute governs public premises belonging to or taken on lease by Corporations established under Central law).

Arguments of the Parties

Appellant's Arguments

  • The appellant contended that a determination of the jural relationship (landlord-tenant) by the 2nd respondent was a condition precedent to issuing a show cause notice under Section 4 of the PP Act; because no fresh termination notice was issued after nationalisation, proceedings under Sections 4 and 5 were vitiated.
  • Relying on provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (specifically sub-section (5) of Section 5 and Section 17), the appellant argued that HRC 406/1978, which was pending at nationalisation (15-4-1980), should be treated as continued by the successor bank until its withdrawal on 17-1-1981; accordingly the jural relationship continued to be governed by the KRC Act until that withdrawal and the earlier notice of termination (3-10-1978) ceased to have effect.
  • He submitted that, because no fresh termination of tenancy was effected post-nationalisation, the appellant remained a contractual/authorised tenant and could not be treated as an unauthorised occupant for purposes of the PP Act. He also relied on the case of State of Haryana v. Ramkishan to argue that the PP Act does not automatically render an authorised lawful occupant an unauthorised occupant.

The opinion does not contain a detailed account of any specific arguments advanced by the respondents distinct from the statutory and judicial conclusions recorded by the court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Haryana v. Ramkishan (case cited by appellant) The appellant relied on this decision to contend that the PP Act does not automatically convert an authorised lawful occupation into an unauthorised occupation. The court noted the appellant's reliance but rejected the argument; the court applied the statutory definition in Section 2(g) of the PP Act and held that the appellant fell within that definition despite the reliance on this precedent.
1988 (3) SCC 416 (decision concerning Section 4A of the Mines and Minerals (Regulation & Development) Act, 1957) Illustration of a provision (Section 4A) which by itself does not prematurely terminate leases; emphasises requirements of consultation and hearing in that statutory context. The court held this decision did not assist the appellant. It explained that the Mines & Minerals decision concerned a different statutory regime (Section 4A) and its procedural requirements and did not support the contention that a fresh termination notice was necessary under the PP Act before initiating eviction proceedings.

Court's Reasoning and Analysis

The court's analysis proceeded from the statutory text and the undisputed facts. The central statutory provision relied upon by the court was the definition of "unauthorised occupation" in Section 2(g) of the PP Act, which includes "the continuance in occupation ... after the authority ... under which he was allowed to occupy the premises has expired or has been determined for any reason whatsoever."

Applying that definition to the factual matrix, the court noted:

  • The appellant had executed an 11-month lease and admitted that the lease period had expired.
  • Corporation Bank Ltd. had issued a registered legal notice dated 3-10-1978 terminating the tenancy, and HRC 406/1978 had been filed (and later withdrawn by the successor bank on 17-1-1981).
  • Given the expiry of the lease period and the prior termination notice, the appellant's continuance in possession fell within the statutory meaning of "unauthorised occupation" as provided by Section 2(g) of the PP Act.

The court rejected the appellant's contention that the jural relationship continued to be governed by the KRC Act until the withdrawal of HRC 406/1978 and that a fresh termination notice was therefore necessary. The court explained that Section 21(1) of the KRC Act provides only a protective shield against eviction except on specified grounds; it does not convert an otherwise unauthorised occupant into an authorised one or prevent the PP Act from applying where the PP Act governs the field.

The court also considered the appellant's reliance on the banking nationalisation provisions (Section 5(5) read with Section 17 of the Banking Companies Act, 1980) and on the Mines & Minerals decision (1988 (3) SCC 416). It concluded that the Mines & Minerals decision was inapposite because it concerned a different statutory mechanism (Section 4A) and the procedural requirements and scope of that provision did not support the appellant's position under the PP Act.

Based on the statutory definition and the facts (lease expiry, termination notice dated 3-10-1978), the court held there was no requirement to issue a fresh notice of termination of tenancy prior to initiating proceedings under Sections 4 and 5 of the PP Act. The court therefore found the PP Act applicable and the eviction proceedings valid.

Holding and Implications

Holding: The court dismissed the Writ Appeal and affirmed the order of the learned single Judge which had upheld the eviction order passed under the PP Act.

Implications:

  • Direct effect on the parties: The appellant's challenge to the eviction order was rejected; the appellate court affirmed the lower court's dismissal of the writ petition and the eviction order under the PP Act stands.
  • Statutory interpretation consequence: The court held that an occupant who remains in possession after the authority to occupy has expired falls within the definition of "unauthorised occupation" under Section 2(g) of the PP Act, notwithstanding protections under the KRC Act. The KRC Act's protection under Section 21(1) does not prevent the PP Act from applying to public premises in the manner found by the court.
  • Procedural consequence: The court held there was no necessity to issue a fresh notice of termination of tenancy before initiating action under Sections 4 and 5 of the PP Act in the circumstances of this case.

The opinion applies existing statutory definitions and precedents to the facts and affirms the eviction; it does not purport to lay down an entirely novel legal doctrine beyond the interpretation and application set out above.

    B. Srinivasa Acharya v. District Judge

    Shivaraj Patil, J.:— Briefly stated the facts, necessary to dispose of this appeal are:—

    The appellant herein had taken the premises in question on lease for 11 months from the Corporation Bank Ltd., predecessor of the 2nd respondent. He had executed a lease deed for 11 months at the time of entering into the possession of the schedule premises. On expiry of the said period he continued in possession as a statutory tenant.

    The Corporation Bank Ltd., issued a registered legal notice dated 3-10-1978 under which the tenancy of the appellant was terminated and he was called upon to surrender vacant possession of the schedule premises. The appellant gave reply to the said notice on 16-10-1978. Thereafter the Corporation Bank Ltd., filed HRC 406/1978 in the Court of the Munsiff at Mangalore for eviction of the appellant.

    The Corporation Bank Ltd., was nationalised on 15-4-1980. Thus the 2nd respondent herein is the successor of the Corporation Bank Ltd. The eviction petition filed in HRC 406/1978 filed earlier, was withdrawn by the 2nd respondent on 17-1 -1981.

    Thereafter the 3rd respondent issued a show cause notice to the appellant under Section 4(1) of the Karnataka Public Premises (Eviction of Unauthorised Occupants) Act, 1974 (for short hereinafter referred as ‘PP Act’) as to why he should not be evicted as he was an unauthorised occupant of the premises. In response to the said notice the appellant gave a reply on 23-3-1981 objecting to the eviction. The 3rd respondent after enquiry passed an order under Section 5 of the PP Act, on 7-9-1981 directing the eviction of the appellant.

    The appellant feeling aggrieved by the said order dated 7-9-1981 passed by the 3rd respondent filed an appeal to the District Judge, Dakshina Kannada at Mangalore (1st respondent). The 1st respondent after hearing the appeal on merits, dismissed the same by his order dated 25-2-1982.

    The appellant pursued his case further by filing Writ Petition No. 14150/1982 in this Court assailing the said order dated 25-2-1982 passed by the first respondent affirming the order of the 3rd respondent. The learned single Judge heard the batch of Writ Petitions including this Writ Petition 14150/1982, and dismissed the same by a common and considered order dated 28-9-1988. Hence this Writ Appeal.

    2. Before the learned single Judge, several contentions were urged including whether the PP Act providing for eviction of unauthorised occupants from the public premises belonging or taken on lease by a Corporation established by or under the Central Act and controlled by the Central Government is ultra vires and/or whether the Karnataka Rent Control Act, 1961 (for short KRC Act), would prevail over the PP Act. The learned single Judge having referred to and relied on various decisions of the Supreme Court did not accept the contentions of the Writ Petitioners. In the view he took, dismissed the Writ Petitions.

    3. This Writ Appeal 427/1989 was posted along with W.A Nos. 597 and 598/1989 as all these Writ Appeals were connected and filed against the said common order of the learned single Judge. In Writ Appeals 597 and 598/1989 at the hearing, the parties filed a joint memo under which the appellants were satisfied if only time was granted to them upto 31-10-1991, to vacate the petition premises. We have passed a separate Order acting on the joint memo in those cases.

    4. Sri U.P Mallya, learned Counsel for the appellant in this appeal (W.A 427/1989), urged before us:—

    That the determination of jural relationship of landlord and tenant by the 2nd respondent was a condition precedent for the issue of show cause notice under Section 4 of the PP Act and such a notice of termination of tenancy having not been issued, the proceedings taken up for eviction under Sections 4 and 5 of the PP Act are vitiated.

    He would construct this argument stating that sub-section (5) of Section 5 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 provides that the suit, appeal or other proceedings may be continued, prosecuted and enforced by or against the corresponding new bank. HRC 406/1978 pending adjudication on 15-4-1980 on which date Corporation Bank Ltd., was nationalised should be taken as continued by the 2nd respondent by virtue of Section 5(5) read with Section 17 of the Banking Companies Act, 1980 up to 17-1-1981 on which date HRC 406/1978 was withdrawn. The jural relationship between the appellant and the 2nd respondent continued to be governed by the KRC Act. The notice of termination issued in 1978 by the erstwhile Corporation Bank Ltd., ceased to have any effect. The provisions of the Act became applicable to the premises of the 2nd respondent only from 17-1-1981. Since there was no termination of tenancy of the appellant after 15-4-1980 the appellant was in lawful and authorised possession of the schedule premises as a contractual tenant and he could never be treated as an unauthorised occupant of public premises. The 2nd respondent ought to have issued notice terminating the jural relationship of landlord and tenant keeping in view the provisions of Section 2(a) and Section 11(1) of the PP Act. Unless one more notice terrminating tenancy was issued the proceedings under Section 4 and 5 of the PP Act could not have been taken. As such proceedings taken and order passed are vitiated for reason of non-issuing such a notice in the instant case.

    In support of this argument he placed reliance on the case of State of Haryana v. Ramkishan He wants to take support from the said Decision to state that there is no provision in the PP Act declaring the authorised lawful occupation of the premises as an unauthorised occupation automatically.

    5. We have carefully considered this argument of the learned Counsel for the appellant. But we find it difficult to accept the same for the following reasons:—

    Section 2(g) of the PP Act reads thus:—

    “(g) “unauthorised occupation” in relation to any public premises, means the occupation by any person of the public premises, without authority for such occupation, and includes the continuance in occupation by any person of the public premises after the authority (whether by way of grant or any other mode of transfer) under which he was allowed to occupy the premises has expired or has been determined for any reason whatsoever.”

    (Emphasis supplied)

    It is the case of the appellant himself, that the lease was for a period of 11 months and he executed a lease deed for 11 months at the time of entering into the possession of the schedule premises. It is also not disputed the Corporation Bank Ltd., issued the legal notice dated 3-10-1978 terminating his tenancy and thereafter HRC. 406/1978 was filed in the Court of the Munsiff at Mangalore. The said HRC. 406/1978 was withdrawn by the 2nd respondent on 17-1-1981. The definition as contained in Section 2(g) of the PP Act clearly takes the appellant within its ambit. The said definition includes the continuance in occupation by any person of the public premises after the authority under which he was allowed to occupy the premises has expired. Admittedly the appellant was allowed to occupy the premises under lease deed for a period of 11 months and the said period of 11 months has expired long back. Hence it is not possible to accept the contention to the contrary advanced by the learned Counsel for the appellant. His submission that the appellant continued as a tenant till 17-1-1981 the date on which HRC. 406/1978 was withdrawn. Under the provisions of the KRC Act, his possession was protected. No order of eviction could be passed against him. Hence he was not an unauthorised occupant when the show cause notice under Section 4 of the PP Act was issued, without issuing a notice of termination of tenancy prior to it. In this argument, the learned Counsel for the appellant has failed to see Section 21(1) of the KRC Act only provided a protective umbrella against order of eviction otherwise than on the grounds mentioned under Section 21(1) of the KRC Act. In view of the law in force namely, the PP Act governing the field, the unauthorised occupant does not become authorised merely because protection was given against the arbitrary evictions under the provisions of the KRC Act earlier.

    6. Learned Counsel for the appellant was not in a position to dispute as to the conclusion arrived at by the learned single Judge that the PP Act, prevails over the KRC Act. In other words, the provisions of the PP Act are applicable to the facts of the case on hand. If that be so after the expiry of the lease period of 11 months initially fixed the appellant became unauthorised occupant. Even his tenancy was terminated by the notice dated 3-10-1978, mere filing of HRC. 406/1978 or its continuance till it was withdrawn on 17-1-1981 did not make him authorised occupant when he became unauthorised occupant within the meaning as contained and defined under Section 2(g) of the PP Act.

    7. The Decision reported in 1988 (3) SCC 416 in our opinion does not help the appellant. It is a Decision in which Section 4A of the Mines and Minerals (Regulation and Development) Act, 1957 came up for consideration by the Supreme Court in the matter of giving opportunity of hearing to the affected lessees before taking decision. In the said Decision it was held Section 4A by itself does not prematurely terminate any mining lease. The decision in this regard has to be taken by the Central Government after considering the circumstances of each case separately and for exercise of such power it is necessary to fulfil the condition mentioned therein, namely, that the proposed action would be in the interest of regulation of mines and mineral development. The Supreme Court in para-10 of the said Judgment has stated thus:—

    “10. On a consideration of the facts and circumstances of the present case, we are of the opinion that there was no effective consultation between the Union of India and the State Government, and the Central Government did not form any opinion as required under Section 4A of the Act. We are further of the view that the lessees, the respondents before us, were entitled to be heard before a decision to prematurely terminate their leases was taken but they were not given any opportunity to place their case.”

    Hence as stated above this Decision is not at all helpful to the appellant. Under the provisions of the PP Act it is not at all contemplated that any prior notice of termination of tenancy be given to an unauthorised occupant. Even under the K.R.C Act, the notice of termination had already been issued in the instant case as early as on 3-10-1978.

    8. In view of this clear legal position, we have no hesitation to hold that there was no necessity of issuing notice of termination of tenancy once again before initiating action under the PP Act and passing orders under the provisions of the said Act, for eviction of unauthorised occupant, like the appellant.

    9. Thus, therefore, there is no merit in this Writ Appeal. Consequently what follows is its dismissal. Accordingly, we affirm the order of the learned single Judge and dismiss this appeal.

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    B. Srinivasa Acharya v. District Judge
    (Jan 31, 1991)