Translate
Text Highlighter

Bookmark

PDF

Share

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

Judicial Opinion — Revision under Section 35, Delhi & Ajmer Rent Control Act, 1952

Factual and Procedural Background

This is a revision petition under section 35 of the Delhi and Ajmer Rent Control Act, 1952. The subject premises is Shop No. 2870 on Ajmal Khan Road, Karol Bagh, New Delhi, owned by Mst. Radhe Piari and first let after 2 June 1944. The tenant, Kalyan Singh, took the shop on lease on 30 October 1948 at a rent of Rs. 112/8 per mensem.

On 12 October 1953, the landlady filed a suit for eviction on grounds of (1) non-payment of arrears of rent and (2) subletting part of the premises to a watch-repairer. The plaint alleged arrears of Rs. 866/4 but no decree for recovery of that amount was sought. The tenant deposited Rs. 2,000 before the first hearing, denied subletting and in his written statement sought fixation of the standard rent on the ground that the agreed rent exceeded the standard rent.

The trial court found that the plaintiff had failed to prove subletting, fixed the standard rent at Rs. 37/8 and dismissed the suit. On appeal the Senior Sub Judge affirmed the finding of no subletting but increased the standard rent to Rs. 50 per mensem. The landlady filed this revision petition challenging that decision.

Legal Issues Presented

  1. Whether the tenant's application for fixation of standard rent, made in the written statement to a pending suit, was barred by limitation under section 11 of the Rent Control Act, 1952 (six months from commencement of the Act for premises let before commencement).
  2. Whether the tenant had sublet part of the rented shop to a watch-repairer such as to justify eviction under section 13(1)(c)(i) of the Act.

Arguments of the Parties

Appellant (Mst. Radhe Piari — landlady) / Her Counsel

  • Contended that the tenant's application for fixation of standard rent was barred by the six-month limitation in section 11 of the Rent Control Act, 1952 and therefore should have been rejected on that ground.
  • Asserted that the tenant had sublet part of the shop to a watch-repairer, which would justify eviction under section 13(1)(c)(i).
  • Counsel conceded, however, that if the court held the application for fixation of standard rent to be within time (or not barred), then the amount determined could not be challenged in these revision proceedings.

Respondent (Kalyan Singh — tenant)

  • Denied having sublet, assigned or otherwise parted with possession of any part of the premises.
  • Deposited Rs. 2,000 towards arrears/costs before the first hearing.
  • In his written statement sought fixation of the standard rent on the ground that the agreed rent exceeded the standard rent.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hem Chand v. Shrimati Sham Devi, 1955 57 P.L.R. 441 Illustrates that the Rent Control Act modifies the general law applicable to landlords and tenants and that rights and liabilities must be determined under the Act. Used to support the proposition that the Act creates new rights and liabilities governing rent and eviction and that the Act's provisions (not general contract law) determine the standard rent and related rights.
Ram Sarn v. Ram Chancier, A.I.R. 1949 E.P. 29 at p. 32 Establishes that section 3 of the Limitation Act bars the remedy but does not extinguish the underlying right; such a right can be asserted in defence. Relied upon to conclude that even if an application for fixation of standard rent is filed after the period in section 11, the right to claim standard rent survives and can be set up in defence to proceedings; limitation may bar the remedy but not the right.
Civil Revision No. 218-D of 1954 (decision of the Chief Justice) Interpreted the Rent Control Act/section 11 in the context of whether limitation applies to applications made in suits or proceedings. The court stated it is in respectful agreement with that decision and used it to support the view that section 11's six-month limitation does not apply to an application for fixation of standard rent when that application is made in a pending suit or proceeding.

Court's Reasoning and Analysis

The court began by observing that the Rent Control Act is a special enactment that modifies the general law between landlords and tenants, so the scope of rights and liabilities (including limitation of remedies) must be determined from the Act itself (citing Hem Chand).

The court analysed the relevant provisions of the Act:

  • Sections 4 and 5: no rent in excess of standard rent may be claimed or received.
  • Section 8: sets out cases in which standard rent may be fixed and provides that the court may fix standard rent "on an application made to it for the purpose or in any suit or proceeding."
  • Section 11: prescribes limitation — a six-month period from commencement of the Act for premises let before commencement — for filing "an application to the court for fixing the standard rent."
  • Section 12: enables refund of rent paid in excess if claimed within six months from payment.

The court focused on the textual difference between section 8, which expressly allows fixation "on an application made to it for the purpose or in any suit or proceeding," and section 11, which prescribes limitation for "an application to the court." The court held that section 11's limitation applies to standalone applications initiated for the purpose of fixation, but does not extend to applications for fixation that are contained in a written statement or otherwise made in the course of a pending suit or proceeding.

Policy considerations supported this construction: if section 11 were read to bar fixation when raised in suits after six months, the legislative control over rents would be ineffective beyond the six-month window (so that rents for premises let before commencement could escape control after that period). The court also observed practical realities – tenants are reluctant to initiate litigation against landlords and frequently raise standard-rent issues defensively in suits initiated by landlords.

The court then approached the matter from the Limitation Act angle. It noted that section 29 of the Indian Limitation Act brings a special law's prescribed limitation period into the scheme of the Limitation Act, so that section 3 of the Limitation Act (which bars remedies filed after prescribed periods) applies. The court reiterated the principle (citing Ram Sarn) that section 3 bars the remedy but does not extinguish the underlying right, which may be asserted in defence. Therefore, even if an application for fixation of standard rent were filed after the six-month period, the right to claim standard rent could be set up in defence in other proceedings.

Applying these interpretive and policy conclusions to the case, the court found that the tenant's application for fixation of standard rent contained in his written statement was not barred by section 11. The Senior Sub-Judge had fixed the standard rent at Rs. 50 per mensem; that amount was not challenged before the revising court, and so the standard rent stood at Rs. 50.

On the subletting question, the court reviewed the lower court's factual findings: evidence showed that the watch-repairing activity by Sardar Singh was conducted on a "takht" placed on municipal land in front of the shop (land in which the owner had no proprietary interest), and that a show case was kept inside the shop for safety. The court accepted the Senior Sub-Judge's factual conclusion that the arrangement did not amount to subletting or parting with possession of any part of the demised shop; possession remained with the tenant. The revising court also found that this conclusion was consistent with the defendant's pleadings and was not beyond those pleadings.

Holding and Implications

Core Ruling: The revision petition is dismissed.

Implications and direct effects:

  • The court held that an application for fixation of standard rent contained in a written statement or made in the course of a suit or proceeding is not barred by the six-month limitation in section 11 of the Rent Control Act, 1952; section 11 applies to standalone applications made for the purpose of fixation.
  • The court accepted the Senior Sub-Judge's fixation of the standard rent at Rs. 50 per mensem for the subject premises; that amount was not challenged and therefore stands.
  • The allegation of subletting to the watch-repairer was not established; the activity was found to be on municipal land in front of the shop and the temporary keeping of a show case inside the shop for safety did not amount to parting with possession or subletting. Accordingly, eviction on the ground alleged under section 13(1)(c)(i) was not made out.
  • The petition was dismissed with costs. The court expressly stated its respectful agreement with the decision in Civil Revision No. 218-D of 1954 on the point of limitation and application in suits/proceedings.
Petition dismissed.

    Shrimati Radhey Piari v. S. Kalyan Singh

    Bishan Narain, J.:— This is a revision petition under section 35 of the Delhi and Ajmer Rent Control Act, 1952.

    2. The facts relevant for the decision of this petition are these. Shop No. 2870 situated at Ajmal Khan Road, Karol Bagh, New Delhi belongs to Radhe Piari. It was constructed some time in 1946 and therefore was first let after 2nd of June, 1944. Kalyan Singh took this shop on lease on 30th of October, 1948 at Rs. 112/8/- per mensem. On 12th of October, 1953, the landlady filed the present suit for eviction of the tenant on the grounds of (1) non-payment of arrears of rent in spite of demand and (2) subletting part of the premises to a watch repairer. According to the plaintiff Rs. 866/4/- were due from the tenant as arrears of rent but no decree for recovery of this amount was sought. The tenant deposited Rs. 2,000/- towards the arrears of rent and costs etc. on or before the first day of hearing of the suit and denied having sublet, assigned or otherwise parted with the possession of any part of the premises. In the written statement the tenant also sought for fixation of standard rent claiming that the agreed rent exceeded it. The trial Court held that the plaintiff had failed to prove that the tenant had sublet any part of the shop and fixing the standard rent at Rs. 37/8/- dismissed the suit. Mst. Radhe Piari appealed and the Senior Sub Judge affirmed the trial Court's finding that the tenant had not sublet the premises. He, however, increased the standard rent from Rs. 37/8/- to Rs. 50/- per mensem. The plaintiff is dissatisfied with this decision and has filed this petition for revision.

    3. Shri Gurbachan Singh the learned counsel for Mst. Radhey Piari has argued that (1) the tenant's application for fixation of standard rent was barred by time and should have been rejected on that ground and (2) that the tenant had sublet the premises to a watch-repairer. The learned counsel, however, frankly conceded that if application for fixation of standard rent is held to be within time then the amount cannot be challenged in these proceedings.

    4. On the question of limitation the contention of the learned counsel is this. The premises were let before the Act came into force on 9th June 1952. Section 11 of the Rent Control Act, 1952 fixes six months' limitation for an application for fixation of standard rent from the commencement of the Act on 9th of June 1952. The present application was made long after the expiry of this period. It was urged that section 11 applied even if such an application is contained in a written statement because in substance it is an application for fixation of standard rent though it is contained in a written statement.

    5. Now there can be no doubt that the Rent Control Act modifies the general law as applicable to landlords and tenants and creates new rights and liabilities between them. The scope of these rights and liabilities can be determined only under the provisions of this enactment. (Vide Hem Chand v. Shrimati Sham Devi . 1955 57 P.L.R 441.). Under the Contract Act the rent fixed by agreement of the parties is binding on them unless the agreement can be avoided on certain grounds specified in that Act. Therefore, the landlord is bound to receive and the tenant is bound to pay the rent fixed by agreement. In view of shortage of available accommodation the legislature has stepped in and has enacted the Delhi and Ajmer Rent Control Act, 1952 to control rents and evictions to certain kinds of premises. Chapter II consisting of sections 4 to 12 relates to control of rents while Chapter III relates to control of evictions. In the present case we are concerned only with Chapter II of the Act. It follows from the provisions contained in this Chapter that the controlled rent or in other words standard rent can be determined only by the provisions contained therein. Now the provisions relevant for the present case are these. Notwithstanding any agreement no landlord can claim or recover or receive any rent in excess of the standard rent (Sections 4 and 5). Section 8 lays down the cases in which standard rent may be fixed and also provides the principles on which it is to be fixed and section 11 provides limitation for applications for fixation of standard rent. Section 12 enables the tenant to obtain refund of the rent which he had paid but was not recoverable under the Act provided such an application is made within six months from the date of payment.

    6. It is under section 8 that the standard rent can be got fixed in spite of the fact that the parties have agreed on the amount of rent payable for the premises leased out. Its relevant portion reads:—

    “8. Cases in which standard rent may be fixed by Court.—(1) In any of the following cases, namely:—

    (a) ****

    (b) Where at any time on or after the 2nd day of June, 1944, any premises are first let and the rent at which they are let is, in the opinion of the court, unreasonable;

    The court may, on an application made to it for the purpose or in any suit or proceeding, fix the standard rent at such an amount as, having regard to the provisions of this Act and the circumstances of the case, the court deems just.”

    Sub-clause (2) relates to increase of standard rent. The other sub-clauses relate to the principles on which standard rent should be fixed. The relevant portion of section 11 reads:—

    “11. Limitation for applications for fixation of standard rent—Any landlord or tenant may file an application to the court for fixing the standard rent of the premises or for determining the lawful increase of such rent—

    (a) in the case of any premises which were let or in which the cause of action for lawful increase of rent arose, before the commencement of this Act, within six months from such commencement;

    (b) ****

    (c) ****

    Provided that the Court may entertain the application after the expiry of the said period of six months if it is satisfied that the applicant was prevented by sufficient cause from filing the application in time.

    It is clear from section 8(1) that the court can fix the standard rent (a) on an application made to it for the purpose (b) on an application, in any suit (c) or in any proceeding. Section 11 lays down limitation for filing an application for fixing the standard rent of the premises concerned. It does not deal with such an application when made in a suit or other proceeding. It appears to me as contended on behalf of the tenant that the limitation provided in section 11 relates only to those cases where proceedings are initiated by an application made for the purposes of fixation of standard rent. This section 11 has no application to cases where an application for this purpose is made in a pending suit or proceeding.

    7. In my opinion this construction is in consonance with the object and purpose of the Act. The policy of the Act is to control the rents and it could not have been the intention of the legislature that this control should remain effective only for six months and not thereafter. If the petitioner's counsel is correct then after 9th of December 1952 the rents of premises let before 9th of June, 1952 could not be controlled. It is true that the proviso to section 11 enables the court to extend time if the applicant satisfies the Court that the applicant was prevented by sufficient cause from filing the application in time. This proviso, however, considering the nature of the problem that the legislature had set out to solve would not be effective in allowing the control of rents to continue after the expiry of six months. The tenants would file applications for the purpose of getting standard rent fixed after the expiry of six months with considerable hesitation in spite of the proviso to section 11. It is well known that in most cases the tenants are not willing to enter into litigation with their landlords because then the landlords can put them to considerable inconvenience even if such an application does not serve as an excuse for starting eviction proceedings. My experience is that most of the applications for fixation of standard rent are made in suits filed by the landlords to evict the tenants. I am, therefore, of the opinion that the limitation prescribed in section 11 does not apply to an application for fixation of standard rent when it is made in a suit. In the present case the tenant has made this application in a suit and therefore the limitation prescribed in section 11 does not apply to the application.

    8. The same conclusion is reached if the problem is looked at from another angle. The Rent Control Act is a special law which in section 11 prescribes a period of limitation different from the period prescribed in the Indian Limitation Act of 1908. In these circumstances section 29 of the Indian Limitation Act lays down that the provisions of section 3 shall apply, as if such period were prescribed in the Indian Limitation Act. In other words section 11 may be read as part of the Indian Limitation Act. This section 3 lays down inter alia that any application made after the prescribed period of limitation shall be dismissed. Therefore section 3 of the Limitation Act applies to section 11 of the Rent Control Act. If that were not so then there was no provision in section 11 of the Rent Control Act laying down that an application made after the prescribed time must be dismissed. That being so an application filed after the prescribed time can be dismissed only under section 3 of the Limitation Act. It is well established that section 3 only bars the remedy but does not destroy or extinguish the right to which the remedy relates. This right remains in existence except in cases where section 28 of the Indian Limitation Act applies. Such a right may be enforced in other ways open to the right holder e.g by setting up the right in defence Vide Ram Sarn v. Ram Chancier . A.I.R 1949 E.P 29 at p. 32.. It follows that the person desirous to get the standard rent fixed by an application after the expiry of six months may set up this right in defence to an action brought by the opposite side. Such a defence is not barred by any provision in the Rent Control Act nor by any provision in the Indian Limitation Act. For these reasons, I am in respectful agreement with the decision of Hon'ble the Chief Justice in Civil Revision No. 218-D of 1954.

    9. The result is that the application for fixation of standard rent included in the written statement in this case is not affected by the provisions of section 11 of the Rent Control Act. The learned Senior Sub-Judge has fixed Rs. 50/- per mensem as standard rent in the present case and the correctness of this amount has not been challenged before me. It follows that the standard rent of the premises in question is Rs. 50/- per mensem.

    10. This brings me to the second question raised in this case. It is argued that the tenant is liable to be evicted under section 13(1)(c)(i) for subletting part of the rented shop to one Sardar Singh, a watch repairer. The learned Senior Sub-Judge after discussing the entire evidence has found. “The only conclusion that these photos lead to is that, in fact, the watch repairing business is carried on by Shri Sardar Singh on the “takht” and not on any part of the shop and that the show case is kept for safety inside the shop. That is exactly what has been stated by Messrs Kanshi Ram, D.W 1 Ganga Ram, D.W 2 Gian Chand D.W 3, Sardar Singh D.W 4, Ram Parkash D.W 5 and Kalyan Singh D.W 6. That being the position the only matter to be considered is as to whether the keeping of the show case inside the shop by Shri Sardar Singh is in the nature of parting with possession of the part of the shop to him as a sub-tenant, as alleged in para 2(a) of the plaint.” Admittedly the “Takht” in question is placed on Municipal land and not on any portion of the leased shop. The owner has no interest in the land in front of the shop and can have no grievance if it is in possession of a person other than the tenant of the shop. The permission to keep the show case of Sardar Singh for safety during the night cannot amount to subletting or parting with the possession of the demised shop or any part thereof. The possession throughout remains with the tenant. This position was not seriously contested but it was argued that this conclusion travels beyond the defendant's pleadings. I have carefully gone through the written statement and the defendant's statement before issues and in my opinion the conclusion of the lower courts is in accordance with the defendants' pleadings in the suit. This contention, therefore, also fails.

    11. The result is that this petition fails and is dismissed with costs.

    Petition dismissed.

    Use AI to get other relevant cases.

    Comments

    Shrimati Radhey Piari v. S. Kalyan Singh
    (Dec 24, 1958)