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Disposition
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Acts
  • Article 226 of the Constitution
  • Clause 13(1)(a), Clause 13(3)(v) of the Rent Control Act
  • State statutes on rent law
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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 226 of the Constitution
  • Clause 13(1)(a), Clause 13(3)(v) of the Rent Control Act
  • State statutes on rent law
Smart Summary

Factual and Procedural Background

The respondents, members of a landlord family, sought permission under Clause 13(3)(v) of the C.P. & Berar Letting of Houses and Rent Control Order, 1949 (“Control Order”) to determine the tenancy of the appellant, Dr. M.K. Salpekar. The appellant had occupied two non-residential portions of their building in Mahal Chowk, Nagpur, as a clinic since 1944. He subsequently constructed a double-storeyed house in Ramdaspeth and let out portions of it to the State Forest Department.

On family partition, the respondents became exclusive owners of the disputed premises and initiated two separate applications for eviction on the ground that the appellant had secured alternative accommodation and therefore no longer reasonably needed the clinic premises. The Rent Controller granted permission; the appellate authority affirmed; a single judge of the High Court dismissed the appellant’s writ petition; and a Letters Patent Appeal was rejected in limine. The present civil appeals were filed before the Supreme Court by special leave.

Legal Issues Presented

  1. Whether Clause 13(3)(v) of the Control Order applies to both residential and non-residential premises, or is confined only to residential houses.
  2. Whether the phrase “and does not reasonably need the house” is a necessary condition in cases where the tenant has secured alternative accommodation.
  3. Whether the respondents’ applications were barred by laches or undue delay because the alternative accommodation had been constructed several years earlier.

Arguments of the Parties

Appellant's Arguments

  • Clause 13(3)(v), as read with its Explanation referring to “a residential house,” is confined to residential premises; therefore it cannot justify eviction from a clinic (non-residential).
  • Comparable rent statutes in other States restrict similar provisions to residential premises, implying the same legislative intent here.
  • The condition “and does not reasonably need the house” must apply to both situations in Clause 13(3)(v) and was not properly considered below.
  • The landlords’ applications were unduly delayed because the Ramdaspeth house had been built long before litigation began; reliance was placed on Mansaram v. S.P. Pathak (1984) 1 SCC 125.

Respondents' Arguments

  • The word “house” in the Control Order is defined to include both residential and non-residential premises; the Explanation merely creates a legal fiction for a subset of residential cases and does not narrow the main clause.
  • Other State statutes are irrelevant; the Control Order deliberately adopts a broader policy.
  • Even if “reasonable need” is considered, alternative accommodation exists and satisfies the tenant’s needs; concurrent findings of fact so hold.
  • The applications were filed within the statutory period of limitation; subsequent family partition and the appellant’s impending retirement constituted sufficient cause for the timing.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mansaram v. S.P. Pathak (1984) 1 SCC 125 Delay and waiver can bar eviction if the landlord slept on his right and raised issues belatedly under questionable circumstances. The Court distinguished the case, noting different facts and holding that no waiver or undue delay existed here; thus the precedent did not aid the appellant.

Court's Reasoning and Analysis

Justice Lalit Mohan Sharma first examined the statutory language. The term “house” in Clause 2(3) expressly covers both residential and non-residential buildings, and the 1951 amendment adding the Explanation left the operative wording of Clause 13(3)(v) unchanged. The Court held that an explanatory clause confined to a narrow set of residential scenarios cannot implicitly excise non-residential premises from the main provision.

The Court reasoned that Clause 13(3)(v) contemplates two distinct situations entitling eviction: (i) the tenant has secured alternative accommodation, and (ii) the tenant has left the area for four months and no longer needs the house. Because these situations are linguistically linked in one sentence, it is impermissible to bifurcate the clause and restrict the first situation to residential premises only. Furthermore, the Explanation employs the phrase “shall be deemed,” creating a legal fiction merely to clarify what constitutes securing alternative accommodation; it does not limit the broader meaning of “house.”

Addressing punctuation, the Court observed that the comma after “alternative accommodation” indicates that the phrase “and does not reasonably need the house” qualifies only the second situation (absence for four months). Nevertheless, even under the appellant’s reading, the courts below had already held that the Ramdaspeth property adequately met the tenant’s requirements.

On the issue of delay, the Court rejected application of Mansaram. The landlords acted within limitation and, due to subsequent partition and the appellant’s impending retirement, had legitimate reasons for filing when they did; therefore waiver principles did not apply.

Holding and Implications

Appeals Dismissed with Costs.

Clause 13(3)(v) of the C.P. & Berar Rent Control Order applies to both residential and non-residential premises. The eviction orders in favour of the landlords stand affirmed. The judgment clarifies the scope of Clause 13(3)(v) but does not create new doctrine; its immediate effect is to allow the respondents to terminate the appellant’s tenancy and recover possession.

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    M.K Salpekar (Dr) v. Sunil Kumar Shamsunder Chaudhari And Others

    Lalit Mohan Sharma, J.— The main question in these cases is whether sub-clause (v) of Clause 13(3) of the C.P and Berar Letting of Houses and Rent Control Order, 1949 (hereinafter referred to as the “Control Order”), applied to all buildings whether residential or non-residential, or was confined only to residential houses.

    2. The civil appeals have arisen out of two proceedings initiated by the owners of the disputed premises for the eviction of the appellant-tenant on the ground that he has secured alternative accommodation and, therefore, does not reasonably need the house. The two premises are parts of the same building situate in Mahal Chowk in the city of Nagpur, and belong to a family of which the applicants, respondents before this Court, are members. The appellant-tenant Dr M.K Salpekar, who is a renowned doctor of Nagpur, has been occupying the premises as tenant for the purpose of his clinic since 1944. Admittedly he has built in Ramdaspeth, another part of the city, a large double storeyed house, and has let out portions thereof to the State Forest Department for running its office. On a partition amongst the members of the family of the owners of the Mahal Building the premises in possession of the appellant-tenant was allotted to the respondents in the two appeals, in parts and they started the present proceedings by two separate applications for permission to determine the tenancy of the appellant-tenant. The appellant defended the actions but the Rent Controller allowed the prayer of the respondents. The order was confirmed in appeal. The appellant moved the High Court under Article 226 of the Constitution. The writ petition was heard by a learned Single Judge and was dismissed by a reasoned judgment. A letters patent appeal was dismissed in limine. The appellant then filed the present civil appeals by special leave.

    3. The necessary findings on the various issues involving facts were recorded in favour of the respondents by the Rent Controller as well as the appellate court and have been endorsed by the learned Single Judge of the High Court.

    4. Mr Bobde appearing in support of the appeals has contended that the provisions of Clause 13(3)(v) quoted below, which are the basis for the impugned decision, do not apply to non-residential buildings:

    “13. (1) No landlord shall, except with the previous written permission of the Controller,—
    (a) give notice to a tenant determining the lease or determining the lease if the lease is expressed to be determinable at his option; or
    (3) If after hearing the parties the Controller is satisfied—
    (v) that the tenant has secured alternative accommodation, or has left the area for a continuous period of four months and does not reasonably need the house;
    Explanation.—For the purpose of this item the tenant shall be deemed to have secured an alternative accommodation if he owns a residential house in the city or town concerned and if such house is constructed on a site lying vacant on January 1, 1951 or on a site made vacant on or after that date by demolition of any structure standing on such site; or
    he shall grant the landlord permission to give notice to determine the lease as required by sub-clause (1).

    The courts were, therefore, in grave error in directing eviction of the appellant from the premises let out to him not for the purpose of his residence but for running a clinic. The argument is that the Explanation to the clause quoted above by referring to “a residential house in the city or town concerned” makes it abundantly clear that the clause cannot be applied to a non-residential house, for, a residential house cannot be considered as alternative accommodation to a non-residential building.

    5. The original Control Order did not include the Explanation; it was added later by an amendment. Sub-clause (v) referred to “house” which by Clause 2(3) means building or part of a building, whether residential or non-residential, and it cannot, therefore, be suggested that its application was limited to residential buildings only. While introducing the Explanation, the main sub-clause was left untouched. The substance of the argument addressed on behalf of the appellant is that by the addition of the Explanation, non-residential buildings have been excluded from the purview of the sub-clause. We do not find any justification for this interpretation. The expression “house” used in the Control Order in the wider sense is retained and envisages two situations in which the landlord becomes entitled to possession, namely, (i) where the tenant secures alternative accommodation, and (ii) where he leaves the area for a continuous period of four months. It cannot be reasonably suggested that by the addition of the Explanation, which is confined to cases dealing with residential buildings, a non-residential building is excluded even where the tenant leaves the area for a period of four months and does not need the house. If the position in regard to the second category of cases remained unaffected, the Explanation cannot be construed to narrow down the scope of the first category of cases where the tenant secured alternative accommodation. It is not possible to split the main sub-clause so as to apply it to non-residential buildings where the tenant leaves the area for four months and at the same time exclude it where he secures alternative accommodation, as the sub-clause deals with the two situations in the same language without making any distinction. A close look of the Explanation will also show that unlike the main sub-clause it deals with only a very limited class of cases where the tenant owns a residential house which was constructed on a site lying vacant on January 1, 1951 or on a site which became available on or after that date by demolition of any structure. Further, the main sub-clause is not restricted to cases where the tenant is the owner of the alternative building; it also applies where the tenant gets the alternative accommodation in another capacity, e.g, under a lease, or acquires the right of residence for life under a bequest. It is, therefore, manifest that the Explanation operates within a very narrow area and does not cover the entire field governed by the main sub-clause. By the use of the expression “shall be deemed” a legal fiction has been employed for the purpose of including a particular situation within the sweep of the sub-clause. Without the Explanation there was some scope for controversy about the precise meaning of the expression “has secured” in the sub-clause, which by the inclusive nature of the Explanation is set at rest.

    6. Mr Bobde referred to several other State statutes on rent law to show that similar provisions corresponding to those in sub-clause (v) are limited in operation to residential buildings. It was urged that it should, in the circumstances, be assumed that the State Government while making the present Control Order also intended to limit the scope of the present sub-clause (v). There is no merit in this argument either. The list of the different State Acts prepared by the learned counsel itself shows that in four of them the corresponding provisions are applicable to both residential as well as non-residential premises. In the remaining Acts the relevant ground is restricted to residential buildings but in clear and unambiguous terms in the body of the section itself. They are, therefore, of no help to the appellant. Besides, it is a question of policy to be adopted by the different legislatures, and it cannot be legitimately suggested that since the majority of the State legislatures have followed a particular policy, the same must be presumed to be the intention of the author of the Control Order in question before us. We, therefore, do not find any merit in the argument of the appellant for restricting the application of sub-clause (v) of residential buildings.

    7. Mr Bobde pressed two additional points. It is urged that the clause “and does not reasonably need the house” applies as a necessary condition to both categories of cases, that is, where the tenant secures alternative accommodation as also where he has left the area for a period of four months, and this the courts below have failed to appreciate. We do not agree. The punctuation “comma”? in the sub-clause after “alternative accommodation” and before the rest of the sentence indicates that the last part of the sub-clause namely “and does not reasonably need the house” governs only the second part of the sub-clause. However, this controversy is academic in nature because when a court is called upon to decide whether another building available to the tenant can be treated as alternative accommodation, it has to consider whether the other building is capable of reasonably meeting the requirements of the tenant on his vacating the disputed premises. The adjective “alternative” by itself imports this as a condition. And this aspect has been thoroughly gone into by the courts below and necessary findings have been recorded against the appellant.

    8. The last ground urged is that since “Ramdaspeth” house was built several years before the institution of the present proceedings, the applications should have been dismissed on the ground of undue delay. Reliance has been placed on Mansaram v. S.P Pathak (1984) 1 SCC 125. The learned counsel for the respondents in his reply contended that an action for enforcing a right filed within the period of limitation as fixed by law cannot be thrown out merely on the ground of delay. He also relied on the evidence in the present case indicating the special circumstances arising later justifying the belated filing of the application. Following a partition in the family of the landlord-respondents they became entitled to exclusive possession of the respective portions of the premises which are subject matter of the two cases. The evidence also indicates that the appellant was in the process of retiring from active practice and was attempting to establish his son, who is also a doctor, in the premises in question. In that view there is no substance in the point urged. The facts in which the decision in Mansaram case (1984) 1 SCC 125 was rendered clearly indicate that it does not support the argument put forward on behalf of the appellant and no aid therefrom can be taken. The case of the plaintiff, there, was that the appellant-tenant had occupied the premises in question about 22 years earlier illegally and was, therefore, liable to eviction. It was pointed out by this Court that before the application for eviction, out of which the appeal before the Supreme Court arose was filed, there were numerous proceedings between the original landlord and the tenant and this question about the illegal entry of the appellant had never been raised and it was only after the death of the original landlord that a “total stranger” had come forward to raise the issue and it was held that he was not entitled to do so. The principle of waiver was clearly applicable. We, therefore, do not find substance in any of the points urged on behalf of the appellant. The appeals are accordingly dismissed with costs.

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    M.K Salpekar (Dr) v. Sunil Kumar Shamsunder Chaudhari And Others
    (Aug 10, 1988)