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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
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Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 136 of the Constitution
  • Rajasthan Premises (Control of Rent & Eviction) Act, 1950
  • Section 116 of the Evidence 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
  • Article 136 of the Constitution
  • Rajasthan Premises (Control of Rent & Eviction) Act, 1950
  • Section 116 of the Evidence Act
Smart Summary

Factual and Procedural Background

The plaintiff-landlord purchased the disputed shop on 17 May 1965. In July 1965 he terminated the defendant-tenant’s lease by registered notice and demanded arrears of rent. When the tenant failed to vacate, an eviction suit was filed on 23 November 1965. During the pendency of that suit, the Rajasthan Premises (Control of Rent & Eviction) Act, 1950 was extended to Rajgarh town on 30 March 1967.

The tenant denied having executed any rent note in favour of the plaintiff’s predecessor, Bhurdas, and alleged tenancy under another person. He sought to have an issue framed on the legal necessity for the sale to the plaintiff, thereby challenging his landlord’s title. The High Court, relying on Section 116 of the Evidence Act (tenant’s estoppel), refused to frame that issue and eventually dismissed the tenant’s second appeal, noting that the genuineness of the rent notes and sale deed was no longer disputed.

The tenant then filed a Special Leave Petition (SLP) in the Supreme Court under Article 136, asserting in Ground 7 that the rent note did not show Bhurdas as owner. A Vacation Judge granted special leave and stayed dispossession on 17 May 1977. The landlord applied for revocation of that leave, producing the rent note (Ex. 10) which expressly acknowledged Bhurdas’s ownership. The present opinion decides that revocation application.

Legal Issues Presented

  1. Whether the tenant’s misstatement in the Special Leave Petition—denying that the rent note acknowledged his landlord’s ownership—warrants revocation of the special leave granted by the Supreme Court.
  2. Consequently, whether the tenant is estopped under Section 116 of the Evidence Act from challenging the landlord’s title.

Arguments of the Parties

Respondents (Landlord)

  • Produced the original rent note (Ex. 10) showing explicit acknowledgment by the tenant of Bhurdas’s ownership, proving the tenant’s misrepresentation in the SLP.
  • Contended that such deliberate misstatement is an abuse of the Court’s discretionary jurisdiction under Article 136 and cited authorities where courts refused or revoked relief for misrepresentation.
  • Sought immediate revocation of special leave, vacation of stay, and exemplary costs.

Petitioner (Tenant)

  • Could not deny that Ex. 10 contained the ownership recital; offered only that counsel had “misunderstood” the document.
  • Provided no substantive justification for the inaccurate assertion in Ground 7 of the SLP.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
King v. Williams (1914) 1 KB 608 Court may refuse relief where the applicant makes misleading statements in affidavits supporting writ petitions. Cited to show that misleading assertions justify refusal of discretionary relief.
King v. General Commissioners for Income Tax, Kensington (1917) 1 KB 486 Same principle as above—duty of candour in applications for prerogative writs. Relied upon to underline the necessity of full and truthful disclosure.
Asiatic Engineering Co. v. Achhru Ram, AIR 1951 All 746 Suppression or misstatement of material facts disentitles a petitioner to writ relief. Referenced as analogous authority supporting revocation.
Hari Narain v. Badri Das, AIR 1963 SC 1550; (1964) 2 SCR 203 Special leave may be revoked when leave was obtained by untrue or misleading statements. Quotations from this case formed the main foundation for revoking the present special leave.
Rajabhai Abdul Rehman Munshi v. Vasudev Dhanjibhai Mody, AIR 1964 SC 345; (1964) 3 SCR 481 Article 136 jurisdiction is discretionary; parties must come with “clean hands.” Approved Hari Narain and emphasised that misrepresentation compels revocation of leave.

Court's Reasoning and Analysis

The Court inspected the rent note (Ex. 10) and found it unquestionably recorded that the shop belonged to Bhurdas. Thus, Ground 7 of the SLP—asserting the contrary—was a “serious misrepresentation on the only point which could possibly arise.” Because special leave is granted on the assumption that statements in the petition are true, a false statement strikes at the root of the Court’s discretionary jurisdiction under Article 136.

After hearing counsel, the Court rejected as “flimsy” the explanation that the document had been misunderstood. It endorsed the principles in Hari Narain and Rajabhai: a litigant must come with clean hands; misrepresentation or suppression of material facts obliges the Court to refuse or revoke leave.

The Court further observed the growing abuse of appellate processes by defaulting tenants to delay eviction and affirmed that it would not facilitate such conduct. There being no substantial question of law once the misrepresentation was exposed, continued exercise of Article 136 jurisdiction was unwarranted.

Holding and Implications

Special leave to appeal is revoked, the stay of dispossession is vacated, and the tenant’s petition is rejected with special costs in favour of the landlord.

Immediate effect: the eviction decree against the tenant stands executable without further impediment. Broader implication: the Supreme Court re-emphasises that misrepresentation in petitions will lead to denial or revocation of discretionary relief, discouraging litigants from abusing the appellate process. No new legal precedent was set; the decision reinforces existing principles on candour and estoppel under Section 116 of the Evidence Act.

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    Udai Chand v. Shankar Lal And Others

    M.H Beg, C.J— The plaintiff landlord had purchased a shop by a sale deed dated May 17, 1965, and then terminated the tenancy of the defendant-petitioner by a registered notice in July 1965, coupled with a demand for arrears of rent. Upon the failure of defendant to comply with the notice to quit a suit was filed against the defendant-petitioner on November 23, 1965. During the pendency of that suit the Rajasthan Premises (Control of Rent & Eviction) Act, 1950, was made applicable by a notification dated March 30, 1967, to Rajgarh town where the shop is situated.

    2. The defendant-petitioner had denied having executed any rent note in favour of Bhurdas, the predecessor-in-interest of the plaintiff landlord who had also notified the defendant-appellant of the sale in favour of the plaintiff by a registered notice dated June 25, 1965, received by the defendant-petitioner on June 29, 1965. The defendant-petitioner pleaded having taken the shop from another individual, Mahant Ram Ratan Das.

    3. In the course of litigation, the defendant-petitioner had asked for an issue to be framed on the question whether there was legal necessity for the transfer in favour of the plaintiff. In other words, he had questioned, at that stage, the legality of transfer in favour of the plaintiff on the ground of want of title in the plaintiff's predecessor-in-interest and also on the ground that the sale deed was invalid. The High Court had, however, on a revision application preferred by the defendant-petitioner, rejected the demand of the tenant for framing of an issue on the question whether there was legal necessity for the transaction. The ground for this rejection was that, as the defendant-petitioner had obtained possession under a tenancy from Bhurdas, the predecessor-in-interest of the present landlord, Surajmal, the defendant-petitioner, Udai Chand was estopped from questioning the title of his landlord by reason of the principle laid down in Section 116 of the Evidence Act.

    4. Ultimately, upon the decree for eviction, the defendant-petitioner had again challenged the view that he was estopped from questioning the title of Bhurdas. On this question the learned Judge who heard the second appeal in the High Court observed:

    “I would like to mention here that the learned Counsel for the appellant did not challenge the correctness of the finding that the rent notes Ex. 8 and Ex. 10 were executed by the defendant in favour of Bhurdas. The learned Counsel for the appellant also did not challenge the genuineness of the sale deed dated May 17, 1965 executed by Bhurdas in favour of Surajmal.”
    The High Court then quoted the recitals of Ex. 10 showing that the defendant had admitted that the shop was owned by Bhurdas to whom he would pay rent. The defendant-petitioner's second appeal was, therefore, dismissed by the High Court.

    5. The defendant-petitioner then filed a special leave petition in this Court under Article 136. Ground No. 7 of the grounds of special leave petition was:

    “That the Hon'ble Court should have appreciated that the rent note Ex. 10 nowhere states that Bhurdas was the owner of the house and hence the inference of the Hon'ble Judge that the petitioner had admitted that Bhurdas was the owner of the shop, is not correct and hence the judgment under appeal deserves to be set aside.”

    6. On May 17, 1977, the learned Vacation Judge granted special leave to appeal to this Court and also an ex parte order staying dispossession pending disposal of a notice of motion.

    7. The respondents' application for revocation of special leave to appeal is now before us. The respondents have filed a true copy of the rent deed Ex. 10. A perusal of it shows that there was a specific mention of Bhurdas as the owner of the shop in dispute which the defendant-petitioner had taken on rent. Hence, there could be no getting away from the fact that the defendant-petitioner had made a clearly false and misleading assertion in his special leave petition. We fail to see what point other than the applicability of Section 116 of the Evidence Act could possibly arise in the case. The whole case was concluded by finding of fact. Nevertheless, the special leave petition was granted in this Court. We think that the only reason why such leave could have been granted was that it was misrepresented to the Court that the rent note in favour of Bhurdas did not contain an admission of the ownership of Bhurdas. This was certainly a mis-statement of a material fact which was of decisive importance in the case. In fact, it was a serious misrepresentation on the only point which could possibly arise in the case.

    8. We have heard learned Counsel for both sides. Learned Counsel for the defendant-petitioner is unable to give any explanation for the false assertion in Ground No. 7 of his special leave petition except that the learned Counsel had himself misunderstood the document, because of other facts in the case. We are unable to accept this flimsy explanation as a sufficient justification for the false assertion.

    9. Reference was made by the learned Counsel for the respondents to King v. Williams (1914) 1 KB 608 and King v. General Commissioners for the Purposes of the Income Tax Acts for the District of Kensington (1917) 1 KB 486 which are cases of misleading assertions by petitioners made in affidavits to support grounds for writ petitions. He also cited Asiatic Engineering Co. v. Achhru Ram AIR 1951 All 746 on principles governing refusal of relief on writ petitions due to misrepresentation or suppression of material facts. More relevant is: Hari Narain v. Badri Das AIR 1963 SC 1550, (1964) 2 SCR 203 where Gajendragadkar, J., speaking for this Court said (at p. 209):

    “In dealing with applications for special leave, the Court naturally takes statements of fact and grounds of fact contained in the petitions at their face value and it would be unfair to betray the confidence of the Court by making statements which are untrue and misleading.”
    In that case, this Court revoked the grant of special leave despite the fact that Mr Setalvad, who had argued the special leave petition at the time of its grant, had stated that, so far as he recollected, the special leave was not granted on the ground on which misrepresentation by his client had taken place.

    10. The last mentioned case was cited with approval in Rajabhai Abdul Rehman Munshi v. Vasudev Dhanjibhai Mody AIR 1964 SC 345, (1964) 3 SCR 481 where Sarkar and Shah, JJ., pointed out (at p. 488):

    “Exercise of the jurisdiction of the Court under Article 136 of the Constitution is discretionary: it is exercised sparingly and in exceptional cases, when a substantial question of law falls to be determined or where it appears to the Court that interference by this Court is necessary to remedy serious injustice. A party who approaches this Court invoking the exercise of this overriding discretion of the Court must come with clean hands. If there appears on his part any attempt to overreach or mislead the Court by false or untrue statements or by withholding true information which would have a bearing on the question of exercise of the discretion, the Court would be justified in refusing to exercise the discretion or if the discretion has been exercised in revoking the leave to appeal granted even at the time of hearing of the appeal.”
    And, Hidayatullah, J., said (at pp. 493-494) there:
    “The powers exercisable by this Court under Article 136 of the Constitution are not in the nature of a general appeal. They enable this Court to interfere in cases where an irreparable injury has been caused by reason of a miscarriage of justice due to a gross neglect of law or procedure or otherwise and there is no other adequate remedy. The article is hardly meant to afford relief in a case of this type where a party is in default of rent because he withdrew a deposit lying in court but who cannot, on the record of the case, be shown to have withdrawn the amount. If the petition had mentioned that the decision of the appeal Court had proceeded on the ground that the amount was taken out, it is difficult to imagine that this Court would have given special leave to decide a question of discretion.”

    11. We are constrained to observe that the tendency to file appeals in hopeless cases only to gain time and ward off eviction has assumed alarming proportions. We cannot mitigate possible rigours of any law by permitting defaulting tenants to hold up their evictions indefinitely or for inordinately long periods on flimsy or unsustainable grounds. We cannot permit abuses of the process of law and of law Courts.

    12. Accordingly, we allow this application for revocation of special leave. We hereby revoke the special leave granted and reject the special leave petition. We also vacate the stay granted. The application for urging additional grounds is rejected. The plaintiff-respondent will get special costs.

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    Comments

    Udai Chand v. Shankar Lal And Others
    (Feb 7, 1978)