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AMICUS AI
Citation Codes
Neutral Citations
1999 INSC 103
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 12 of the M.P Accommodation Control Act
  • Section 106 of the Transfer of Property Act, 1882
  • Section of the Act (no specific title or year mentioned)
  • Section 3, Subsection (2) of the M.P Accommodation Control Act, 1961
  • Section 3(2) of the M.P Accommodation Control Act, 1961
  • Section 12 of the Act
  • The Act (no specific title or year mentioned)
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
1999 INSC 103
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 12 of the M.P Accommodation Control Act
  • Section 106 of the Transfer of Property Act, 1882
  • Section of the Act (no specific title or year mentioned)
  • Section 3, Subsection (2) of the M.P Accommodation Control Act, 1961
  • Section 3(2) of the M.P Accommodation Control Act, 1961
  • Section 12 of the Act
  • The Act (no specific title or year mentioned)
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

Babulal was a tenant of a shop owned by Phool Maliyan Samaj Mandir Trust, Bhopal. The Trust terminated the tenancy on 14-09-1991 through a notice issued under Section 106 of the Transfer of Property Act, 1882. When Babulal failed to vacate, the Trust filed an eviction suit before the Civil Judge, Bhopal, asserting that the premises—being trust property—were exempt from the M.P. Accommodation Control Act, 1961 by virtue of a State notification dated 07-09-1989 issued under Section 3(2) of the Act.

The trial court decreed eviction on 08-12-1997. Babulal’s legal heirs (the present appellants) pursued an appeal, which the Additional District Judge dismissed on 28-09-1998. A second appeal to the High Court met the same fate on 17-12-1998. All three courts relied on the 1989 notification to hold that the Trust could sue for eviction upon termination of tenancy without invoking Section 12 of the 1961 Act. The appellants then approached the Supreme Court; leave was granted and the present judgment followed.

Legal Issues Presented

  1. Whether the State of Madhya Pradesh’s notification dated 07-09-1989 validly exempts properties belonging to religious and charitable trusts from the operation of the M.P. Accommodation Control Act, 1961.
  2. Consequently, whether the respondents could maintain an eviction suit solely on termination of tenancy under Section 106 of the Transfer of Property Act, without pleading any of the grounds under Section 12 of the 1961 Act.

Arguments of the Parties

Appellants' Arguments

  • The notification dated 07-09-1989 had already been declared invalid by the Madhya Pradesh High Court in Chintamani Chandra Mohan Agarwal v. State of M.P.
  • The Supreme Court, in Mangilal v. Shri Chaturbhuja Mandir, also treated the notification as bad in law.
  • Therefore, the Trust could only evict the tenant on one of the statutory grounds listed in Section 12 of the 1961 Act, and the suit should have been dismissed.

The opinion does not contain a detailed account of the respondents' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chintamani Chandra Mohan Agarwal v. State of M.P. (1994 MPLJ 597) High Court decision that struck down the 07-09-1989 exemption notification. The Supreme Court noted that this decision was later overturned in Civil Appeal No. 9909 of 1995, thereby restoring the notification’s validity.
State of M.P. v. Chintamani Chandra Mohan Agarwal (Civil Appeal No. 9909 of 1995, decided 19-10-1995) Upheld the State’s power to exempt trust and wakf properties from rent-control legislation. Relied upon as binding authority confirming the validity of the 1989 notification.
Mangilal v. Shri Chaturbhuja Mandir (1998) 5 SCC 597 Treated the 07-09-1989 notification as invalid because the High Court had so held. Distinguished; the Court explained that the earlier Supreme Court ruling did not consider the subsequent reversal of the High Court judgment or other binding precedents.
S. Kandaswamy Chettiar v. State of T.N. (1985) 1 SCC 290 Upheld a similar exemption of wakf and trust properties from rent-control legislation in Tamil Nadu. Cited as persuasive authority to show that exemptions of religious and charitable properties have been sustained by the Supreme Court.

Court's Reasoning and Analysis

The Supreme Court observed that the appellants’ challenge rested on the premise that the 07-09-1989 notification had been invalidated. However, the Court clarified that the Madhya Pradesh High Court’s decision in Chintamani was reversed in Civil Appeal No. 9909 of 1995, where the Supreme Court upheld the notification after finding sufficient material to justify the State’s satisfaction under Section 3(2) of the 1961 Act.

The Court distinguished Mangilal, noting that the validity of the notification had not been argued there, nor had the subsequent reversal of the High Court judgment or the precedent in S. Kandaswamy Chettiar been brought to the bench’s attention. Consequently, Mangilal could not govern the present dispute.

Further, the Court underscored that analogous exemptions in other States, including Tamil Nadu, have been upheld, reinforcing the principle that legislatures may justifiably carve out religious and charitable trust properties from ordinary rent-control regimes.

Because the notification remains valid, the Trust’s property is exempt from the 1961 Act, and the landlords were entitled to seek eviction upon termination of the contractual tenancy without invoking Section 12. The findings of the courts below were therefore correct.

Holding and Implications

APPEAL DISMISSED. No order as to costs.

The dismissal confirms the continued validity of the 07-09-1989 notification exempting religious and charitable trust properties in Madhya Pradesh from the Accommodation Control Act. Practically, the appellants must vacate the premises; doctrinally, the decision reinforces earlier Supreme Court precedent that such exemptions are within the State’s power and remain operative unless specifically struck down.

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    Betibai And Others v. Nathooram And Others

    S. Saghir Ahmad, J.— Leave granted.

    2. Babulal was the tenant of a shop belonging to a temple managed by Phool Maliyan Samaj Mandir Trust, Bhopal (“the Trust” for short), whose tenancy was determined by notice dated 14-9-1991 under Section 106 of the Transfer of Property Act, 1882. In spite of the tenancy having been determined, Babulal did not vacate the premises. Consequently, the respondents, who were the trustees of the Trust, instituted a civil suit in the Court of the Civil Judge, Bhopal against Babulal for his eviction. It was pleaded that since the property in question belonged to the religious and charitable Trust, it was exempted from the operation of the M.P Accommodation Control Act, 1961 (“the Act” for short) as provided by Section 3(2) thereof.

    3. The suit was contested by Babulal, who filed a written statement denying the plaint allegations and pleaded that the suit was liable to be dismissed as it was not based on any of the grounds specified in Section 12 of the Act.

    4. The suit was decreed on 8-12-1997, against which an appeal was filed, but before it could be disposed of by the Additional District Judge, Bhopal, the original tenant died and was substituted by the present appellants as his heirs and legal representatives. The appeal was ultimately dismissed on 28-9-1998. The second appeal filed in the High Court was dismissed on 17-12-1998. The trial court as also the lower appellate court and the High Court held that on account of notification issued on 7-9-1989, the properties belonging to religious and charitable trusts were exempted from the operation of the Act and consequently it was not incumbent upon the respondent landlords to have filed the suit for eviction of the tenant on the grounds set out under Section 12 of the Act and that they could file the suit for eviction straightaway after terminating the tenancy under Section 106 of the Transfer of Property Act.

    5. Learned counsel for the appellants has contended that the notification dated 7-9-1989 has already been held to be bad by the Madhya Pradesh High Court in Chintamani Chandra Mohan Agarwal v. State of M.P 1994 MPLJ 597 (MP) He also contended that this Court in Mangilal v. Shri Chuturbhuja Mandir (1998) 5 SCC 597 has also held the notification to be bad. It is, in these circumstances, contended that the suit of the respondents was liable to be dismissed and the appellants cannot be evicted from the premises in question, except by invoking any of the grounds set out in Section 12 of the Act. The pleas raised by the counsel for the appellants, in our opinion, have no substance.

    6. The decision rendered by the Madhya Pradesh High Court in Chintamani case was challenged in an appeal filed in this Court by the State of Madhya Pradesh which was disposed of by a Bench of which one of us, Saghir Ahmad, J., was a Member and the notification dated 9-9-1989, by which the properties belonging to public charitable trusts and the Wakf were exempted, was upheld. It was in that judgment held, inter alia, as under:

    “The State of Madhya Pradesh in exercise of the powers under sub-section (2) of Section 3 of the M.P Accommodation Control Act, 1961 (the Act), exempted all buildings owned by the Madhya Pradesh Wakf Board (Board) from the operation of the Act. The notification dated September 7, 1989 granting exemption to the Board under the above-mentioned provision of the Act was challenged before the High Court. The High Court quashed the notification on the short ground that there was no material before the State Government to reach the satisfaction that it was necessary to issue the impugned notification.

    Learned counsel for the State of M.P has invited our attention to the letter dated March 26, 1976, by the then Prime Minister of India addressed to the Chief Minister of the State of M.P, suggesting, for the reasons given in the said letter, to grant exemption of the provisions of the Act to the properties owned by the Wakf. Thereafter, the State of M.P made enquiries from various other States in this respect. On receipt of the replies, the matter was considered and thereafter, the exemption notification was issued. We are satisfied that there was sufficient material before the State Government for issuing the impugned notification. We, therefore, set aside the impugned judgment of the High Court. We seek support from the judgment of this Court in S. Kandaswamy Chettiar v. State of T.N (1985) 1 SCC 290”

    7. The decision of this Court in Mangilal case2 upon which reliance has been placed is distinguishable as the only question pleaded in that case was that since the notification dated 7-9-1989 has been held to be bad by the High Court in respect of wakf properties only, the trust properties would continue to be exempted from the operation of the Act. This plea was not accepted and it was held that the notification dated 9-9-1989 was a composite notification which applied not only to the wakf properties but also to other charitable trust properties, and since this notification has been held to be bad in respect of the wakf properties, it would be bad for all other properties, including trust properties, which were sought to be exempted from the operation of the Act. The validity of the notification was not questioned in that decision. Moreover, it was not brought to the notice of their Lordships, who decided that case, that against the decision of the Madhya Pradesh High Court in Chintamani case Civil Appeal No. 9909 of 1995 [arising from SLP (Civil) No. 4360 of 1994] was filed in this Court, which was decided on 19-10-1995 and the decision of the Madhya Pradesh High Court was reserved with a categorical finding that the notification issued by the Madhya Pradesh Government exempting the wakf and trust properties from the operation of the Act was valid.

    8. It may be mentioned that similar notifications issued in other States, by which wakf and trust properties were exempted, have already been upheld by this Court. As for example, the notification issued by the State Government of Tamil Nadu exempting wakf and trust properties, was upheld by this Court in S. Kandaswamy Chettiar v. State of T.N Even this decision was not brought to the notice of the learned Judges who disposed of Mangilal case (1998) 5 SCC 597.

    9. In view of the above, the appeal has no merit and is dismissed but without any order as to costs.

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    Betibai And Others v. Nathooram And Others
    (Mar 12, 1999)