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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Haryana Urban (Control of Rent and Eviction) Act, 1973
  • Section 2(2) of the 1972 Act
  • U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 Section 2(2)
  • Section 13 of the Act, Section 2(2) of the U.P Act
  • Sections 39 and 40 of the Act
  • Rent Act
  • Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973
  • Section 1(3) of the Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Haryana Urban (Control of Rent and Eviction) Act, 1973
  • Section 2(2) of the 1972 Act
  • U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 Section 2(2)
  • Section 13 of the Act, Section 2(2) of the U.P Act
  • Sections 39 and 40 of the Act
  • Rent Act
  • Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973
  • Section 1(3) of the Act
Smart Summary

Supreme Court of India – Civil Appeal (S.L.P.)

Factual and Procedural Background

The appellant–landlord let out a shop situated in Raj Guru Market, Hissar (Haryana) to the respondent–tenant in 1978. Alleging arrears of rent from 1 December 1981 to 31 May 1982, the landlord terminated the tenancy and, relying on the exemption contained in Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (“the Act”), instituted a civil suit for possession in the Court of the Sub-Judge, Hissar.

The written statement was filed on 15 February 1983. In November 1984, after the building had completed ten years (construction having been completed in June 1974), the tenant applied to have the suit dismissed, contending that the statutory exemption had expired, the Act now applied, and therefore only the Rent Controller had jurisdiction. The Sub-Judge rejected the application, holding that it was sufficient that the suit had been instituted within the ten-year period.

On revision, the Punjab & Haryana High Court reversed that order, holding that because no decree had been passed within the ten-year window, the premises had come under the Act and the civil court lacked jurisdiction; it accordingly dismissed the landlord’s suit. The landlord appealed to the Supreme Court, which granted special leave and heard the matter on the merits.

Legal Issues Presented

  1. Whether premises that were exempt from the Act on the date the eviction suit was instituted remain outside the Act when the ten-year exemption period expires during the pendency of the suit.
  2. Consequently, whether the civil court retains jurisdiction to decide the eviction suit instituted within the exemption period.

Arguments of the Parties

Appellant-Landlord’s Arguments

  • The crucial requirement under Section 1(3) is that the suit be filed within ten years of completion; a decree need not be passed within that time.
  • Rights of the parties crystallise on the date of institution of the suit; subsequent expiry of the exemption cannot divest the court of jurisdiction.
  • Denying the exemption after the suit is filed would defeat the legislative purpose of encouraging new construction.

Respondent-Tenant’s Arguments

  • The building completed ten years in June 1984; thereafter the Act became applicable and barred the civil court’s jurisdiction.
  • Because the suit was still pending when the exemption expired, the landlord could proceed, if at all, only before the Rent Controller on grounds specified in Section 13 of the Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vineet Kumar v. Mangal Sain Wadhera (1984) 3 SCC 352 Premises originally exempt may become governed by a Rent Act if ten-year period expires during litigation; courts may consider subsequent events to render substantial justice. Examined to understand the effect of the exemption’s expiry; ultimately distinguished on the ground that rights crystallise on the date of the suit.
Nand Kishore Marwah v. Samundri Devi (1987) 4 SCC 382 Computation of ten-year period from first assessment; restriction on institution of suit within ten years; rights determined on suit date. Relied on to reinforce that rights are assessed as on the filing date and that suits instituted within ten years are maintainable.
Om Prakash Gupta v. Digvijendrapal Gupta (1982) 2 SCC 61 Rights of parties are determined with reference to the date of the suit. Cited as the governing principle for fixing the relevant date for determining parties’ rights under the Act.
Ram Saroop Rai v. Lilavati (1980) 3 SCC 452 Legislative intent of ten-year exemption is to incentivise new construction by allowing eviction without impediment if proceedings are initiated within ten years. Quoted to elucidate the purpose behind Section 1(3) and support a purposive interpretation.
Poppatlal Shah v. State of Madras AIR 1953 SC 274 Every word must be construed in light of the statute’s purpose. Invoked as an interpretative guide for adopting a purposive construction of Section 1(3).
Black-Clawson International Ltd. v. Papierwerke Waldhof-Aschaffenburg A.G. (1975) AC 591 Courts must discover the true meaning of the words used by Parliament. Cited to justify reading Section 1(3) in a manner that furthers its objective.

Court's Reasoning and Analysis

The Court applied the maxim actus curiae neminem gravabit, emphasising that no litigant should suffer because of delays inherent in the judicial process. Observing that final disposal of a civil suit within ten years is often impossible, the Court held that conditioning the exemption on disposal rather than institution would render the ten-year “holiday” illusory and defeat the legislative intent of encouraging new construction.

Drawing on Om Prakash Gupta, the Bench reaffirmed that parties’ rights crystallise on the date of the suit. Consequently, once a landlord files an eviction suit within ten years of the building’s completion, the exemption under Section 1(3) continues to shield the proceedings until final adjudication.

The Court distinguished Vineet Kumar and harmonised it with later decisions, stressing that Section 13 of the Haryana Act, like Section 20 of the U.P. Act, places a bar only on the institution of suits for eviction once the Act applies. Because the present suit was instituted during the exemption period, the bar never arose.

The purposive interpretation was also justified by policy considerations: without assurance that the exemption will endure through litigation, the statutory incentive to construct new buildings would be meaningless.

Holding and Implications

HELD: The judgment of the Punjab & Haryana High Court is set aside; the order of the Sub-Judge, Hissar, is restored. The eviction suit shall proceed in the civil court in accordance with law, and costs of this appeal will follow the outcome of the suit.

Implications: The ruling clarifies that under Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973, a suit instituted within ten years of a building’s completion remains outside the Act’s purview even if the exemption period expires during its pendency. This interpretation preserves the statutory incentive for new construction but does not announce any broader doctrinal shift beyond reaffirming that parties’ rights are fixed on the suit date.

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    Atma Ram Mittal v. Ishwar Singh Punia .

    Sabyasachi Mukharji, J.— Special leave granted. The appeal is disposed of herein after hearing counsel for both the parties.

    2. The appellant landlord filed a suit for possession in the civil court of Hissar in Haryana. The respondent is the tenant in the shop situated at Raj Guru Market which had been rented out to the respondent in 1978. The suit was filed on the basis that the respondent was in arrears of rent from December 1, 1981 to May 31, 1982 and the tenancy of the respondent had been terminated by giving him notice. The suit was filed for recovery of possession on the termination or expiry of the period of tenancy. It was filed because of Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (hereinafter referred to as “the Act”). The Act was passed with the object to control the increase of rent of certain buildings and rented land situated within the limits of urban areas and the eviction of tenants therefrom. For our present purpose, it would suffice if we bear in mind two relevant provisions. Section 1(3) of the Act provides as follows:

    “Nothing in this Act shall apply to any building the construction of which is completed on or after the commencement of this Act for a period of ten years from the date of its completion.”

    3. Section 13 of the Act deals with the eviction of tenants and sub-section (1) thereof provides that the tenant in possession of a building or a rented land shall not be evicted therefrom except in accordance with the provisions of that section. The section thereafter enumerates the statutory grounds for eviction upon which eviction is permitted which incidentally are more or less similar statutory grounds all over the country.

    4. On or about February 15, 1983 the respondent tenant filed his written statement. In November 1984, the respondent tenant moved an application for dismissal of the suit of the appellant stating that the shop in question was constructed in June 1974 as such the period of ten years had elapsed by June 1984 in terms of Section 1(3) of the Act, and, as such, the immunity from the application of the Act had expired. The suit under the Act is not maintainable and the jurisdiction of the civil court stands barred. The learned Sub-Judge, Hissar, held that the decree was not necessary to be passed within the exemption period of ten years under Section 1(3) of the Act. The learned Sub-Judge accordingly dismissed the respondent's application. Aggrieved thereby, the tenant respondent preferred a revision to the High Court of Punjab and Haryana. The High Court held that as the suit had not been decreed within the period of ten years, the building in question came within the operation of the Act and as such the Rent Act was applicable and the civil court had no jurisdiction. In the premises, the learned Judge of the High Court dismissed the suit pending before the Sub-Judge. Aggrieved thereby the appellant has come up in appeal to this Court.

    5. More or less identical provisions of the U.P Act had come up for consideration before this Court in the case of Vineet Kumar v. Mangal Sain Wadhera (1984) 3 SCC 352, AIR 1985 SC 817, 1984 ALJ 102. The only point that was urged before this Court in that decision was whether the premises which was not ten years old on the date of the suit and was exempted from the operation of the new Rent Act, could be governed by it if ten years expired during the pendency of the litigation. The relevant provisions of the U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 provided as follows:

    “20. Bar of suit for eviction of tenant except on specified grounds.—(1) Save as provided in sub-section (2), no suit shall be instituted for the eviction of a tenant from a building, notwithstanding the determination of his tenancy by efflux of time or on the expiration of a notice to quit or in any other manner:
    Provided that nothing in this sub-section shall bar a suit for the eviction of a tenant on the determination of his tenancy by efflux of time where the tenancy for a fixed term was entered into by or in pursuance of a compromise or adjustment arrived at with reference to a suit, appeal, revision or execution proceeding, which is either recorded in court or otherwise reduced to writing and signed by the tenant.

    6. In Vineet Kumar v. Mangal Sain Wadhera (1984) 3 SCC 352, AIR 1985 SC 817, 1984 ALJ 102 the respondent landlord filed a suit for eviction and for arrears of rent and damages, inter alia, on the grounds that the building in question was not covered by the U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 in view of the exemption granted to new buildings under Section 2(2) of the said Act and that the defendant-appellant had defaulted in payment of rent. The tenant had resisted the claim on the ground that having regard to the date of construction of the building, it was covered by the Act, that the plaint having not been amended so as to bring the suit under the Act, it was barred by Section 20 and that there was no default in payment of rent. As mentioned hereinbefore, during the pendency of the litigation the exemption granted under Section 2(2) expired. The question was whether the premises which was not ten years old on the date of the suit and was exempted from the operation of the Rent Act, would be governed by it if ten years expired during the pendency of the litigation. Allowing the appeal, this Court held that the appellant must get benefits of the Act which became applicable to the premises in question during the pendency of the litigation. That would not affect the cause of action in that case. It was held that the contention that the court had to decide the case on the basis of cause of action that accrued prior to the date of filing the suit and not on a new cause of action was not sustainable. It was further held that normally amendment in plaint is not allowed if it changes the causes of action. However, where the amendment does not constitute an addition of a new cause of action, or raise a new case, but amounts to no more than adding to the facts already on the record, the amendment would be allowed even after the statutory period of limitation. This Court observed that processual justice required that the events and developments subsequent to the institution of proceedings must be taken into consideration in appropriate cases to promote substantial justice. Vineet Kumar case (1984) 3 SCC 352, AIR 1985 SC 817, 1984 ALJ 102 was discussed and explained by this Court in Nand Kishore Marwah v. Samundri Devi (1987) 4 SCC 382. This Court held that in view of Section 2(2) of the 1972 Act, if an assessment is made of the newly built house then the date of completion of the building, the date from which 10 years are to be computed, will be the date on which the first assessment was made. Therefore, the period of 10 years have to be computed from October 1976. This Court further held that if a tenant is entitled to the advantage of Sections 39 and 40 of the Act and the period of ten years elapses during the pendency of the eviction suit or appeal before this Court (which is the continuation of the suit), then the tenant would be entitled to the benefits of the Act. This Court further held that within ten years as provided for in Section 2(2) restriction on the institution of suit as provided for in Section 20(1) will not be applicable. It was held that during the pendency of the litigation even if ten years expired the restriction under Section 20 will not be attracted as the suit had been instituted within ten years. It is well-settled that the rights of the parties will have to be determined on the basis of the rights available to them on the date of the suit. This Court pointed out that the attention of the Court had not been drawn to the decision of this Court in Om Prakash Gupta v. Digvijendrapal Gupta (1982) 2 SCC 61, (1982) 3 SCR 491. This Court referred to the words used in Section 20 of the said Act which emphasised that “no suit shall be instituted for eviction”. This clearly indicates that the restriction put under Section 20 of the said Act is to the institution of the suit itself and, therefore, it is clear that if the provisions of this Act applies then no suit for eviction can be instituted except on the grounds specified in the sub-sections of that section of the Act. This applies more so in the instant case where the Section 13 of the Act provides that the tenant in possession of a building or a rented land shall not be evicted therefrom except in accordance with the provisions of this section. Those provisions would not be applicable to a suit instituted within ten years from the date of the completion of the building in question. That is the plain meaning of the expression “use”. It was further to be borne in mind that in finding out the plain meaning of the expression “use”, the language, the background, the context, the purpose, these all have to be borne in mind.

    7. In Ram Saroop Rai v. Lilavati (1980) 3 SCC 452 Krishna Iyer, J. has explained the Section 2(2) of the U.P Act as follows:

    “The Legislature found that rent control law has a chilling effect on new building construction, and so, to encourage more building operations, amended the statute to release, from the shackles of legislative restriction, ‘new constructions’ for a period of ten years. So much so, a landlord who had let out his new building could recover possession without impediment if he instituted such proceeding within ten years of completion.”

    8. It is well-settled that no man should suffer because of the fault of the court or delay in the procedure. Broom has stated the maxim “actus curiae neminem gravabit” — an act of court shall prejudice no man. Therefore, having regard to the time normally consumed for adjudication, the ten years' exemption or holiday from the application of the Rent Act would become illusory, if the suit has to be filed within that time and be disposed of finally. It is common knowledge that unless a suit is instituted soon after the date of letting it would never be disposed of within ten years and even then within that time it may not be disposed of. That will make the ten years holiday from the Rent Act illusory and provide no incentive to the landlords to build new houses to solve problem of shortages of houses. The purpose of legislation would thus be defeated. Purposive interpretation in a social amelioration legislation is an imperative irrespective of anything else.

    9. Judicial time and energy is more often than not consumed in finding what is the intention of Parliament or in other words, the will of the people. Blackstone tells us that the fairest and most rational method to interpret the will of the legislator is by exploring his intentions at the time when the law was made, by signs most natural and probable. And these signs are either the words, the context, the subject-matter, the effects and consequence, or the spirit and reason of the law. (emphasis by the court) See Commentaries on the Laws of England (facsimile of 1st Edn. of 1765, University of Chicago Press, 1979, Vol. 1, p. 59). Mukherjea, J. as the learned Chief Justice then was, in Poppatlal Shah v. State of Madras AIR 1953 SC 274, 1953 SCR 677, 1953 Cri LJ 1105, (1953) 4 STC 188 said that each word, phrase or sentence was to be construed in the light of purpose of the Act itself. But words must be construed with imagination of purpose behind them said Judge Learned Hand, a long time ago. It appears, therefore, that though we are concerned with seeking of intention, we are rather looking to the meaning of the words that the legislature has used and the true meaning of what words as was said by Lord Reid in Black-Clawson International Ltd. v. Papierwerke Waldhof-Aschaffenburg A.G 1975 AC 591, (1975) 1 All ER 810, (1975) 2 WLR 513. We are clearly of the opinion that having regard to the language we must find the reason and the spirit of the law. If the immunity from the operation of the Rent Act is made and depended upon that ultimate disposal of the case within the period of exemption of ten years which is in reality an impossibility, then there would be empty reasons. In our opinion, bearing in mind the well-settled principle that the rights of the parties crystallise to (sic on) the date of the institution of the suit as enunciated by this Court in Om Prakash Gupta v. Digvijendrapal Gupta (1982) 2 SCC 61, (1982) 3 SCR 491, the meaningful construction must be that the exemption would apply for a period of ten years and will continue to be available until suit is disposed of or adjudicated. Such suit or proceeding must be instituted within the stipulated period of ten years. Once rights crystallise the adjudication must be in accordance with law.

    10. In that view of the matter, we are of the opinion that the High Court was in error in the view it took. The judgment and order of the High Court are set aside and the order of the learned Sub-Judge is restored. The suit will now proceed in accordance with law in the light of the observations herein as expeditiously as possible. The costs of the appeal will be the costs of the suit.

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    Atma Ram Mittal v. Ishwar Singh Punia .
    (Aug 22, 1988)