AMICUS AI
Citation Codes
Neutral Citations
2002 INSC 91
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 47 of the Code of Civil Procedure
  • Section 18 of the Evidence Act
  • Section 22 of the Act
  • Section 40 of the Act
  • clause (d) of Section 22 of the Delhi Rent Control Act, 1958
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Societies Registration Act
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Cites
Cited by
Citation Codes
Neutral Citations
2002 INSC 91
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 47 of the Code of Civil Procedure
  • Section 18 of the Evidence Act
  • Section 22 of the Act
  • Section 40 of the Act
  • clause (d) of Section 22 of the Delhi Rent Control Act, 1958
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Societies Registration Act
Smart Summary

Factual and Procedural Background

This appeal by special leave arose from the judgment and order of the High Court of Delhi dated 2-12-1981 allowing the respondent-tenant's Second Appeal Order No. 275 of 1980.

The appellant-landlord (a registered society under the Societies Registration Act) filed an eviction application against the respondent-tenant under clause (d) of Section 22 of the Delhi Rent Control Act, 1958, asserting bona fide requirement of the premises for furtherance of its activities. The tenant denied that the landlord was an “institution” within the meaning of the provision and denied bona fide requirement in the written statement.

At trial, the tenant’s counsel conceded the disputed facts across the Bar; the Additional Rent Controller recorded that counsel admitted the eviction ground and admitted that the applicant was a public charitable institution requiring the premises. On that basis, the eviction application was allowed on 24-3-1973. The tenant’s review petition was dismissed; a writ petition challenging the eviction order was dismissed as withdrawn on 22-7-1974; and an appeal to the Rent Control Tribunal was dismissed on 5-9-1977.

During execution, the tenant raised objections under Section 40 of the Delhi Rent Control Act and Section 47 of the Code of Civil Procedure; both were dismissed on 5-4-1980. The tenant’s further challenge before the Rent Control Tribunal failed (order dated 16-5-1980), but the High Court allowed the tenant’s second appeal on 2-12-1981. The present appeal challenged that High Court order.

Legal Issues Presented

  1. Whether the Additional Rent Controller’s “satisfaction” under clause (d) of Section 22 of the Delhi Rent Control Act could be founded solely on a statement made by the tenant’s counsel across the Bar as an admission binding on the tenant.
  2. Whether the counsel’s concession (coupled with the court granting time to vacate) could be treated as a “compromise,” thereby sustaining the eviction order.
  3. Whether, in the absence of supporting material on record, the eviction order was vitiated as being without jurisdiction because the jurisdictional facts under Section 22 were not established.

Arguments of the Parties

Appellant's Arguments

  • The tenant’s counsel’s statement across the Bar amounted to an admission of the party; therefore, the Additional Rent Controller validly recorded satisfaction on that admission, and the eviction order could not be treated as without jurisdiction.
  • The statement should be treated as a compromise, particularly because the court granted five years’ time to the tenant to vacate.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court treated two matters—(i) whether the landlord was an “institution” within Section 22 and (ii) whether the premises were bona fide required for furtherance of its activities—as jurisdictional facts. It held that the Additional Rent Controller could record “satisfaction” only upon deciding these questions in the landlord’s favour on the basis of material on record; satisfaction based on no material or irrelevant material would be vitiated, rendering any resulting order without jurisdiction.

While accepting that an admission of a party is relevant material, the court examined whether a statement by counsel across the Bar could be treated as an admission binding on the party. Having regard to Section 18 of the Evidence Act, and on the facts of the case, the court concluded that the tenant’s counsel’s statement could not be accepted as an admission binding the tenant. Once that statement was excluded, there was no material before the Additional Rent Controller to support satisfaction under clause (d) of Section 22, leading to the conclusion that the eviction order was without jurisdiction.

The court also rejected the characterization of the counsel’s statement as a compromise. It reasoned that a compromise, like a contract, requires consensus between two parties; a counsel’s concession of eviction grounds coupled with a request for time to vacate could not be termed a compromise.

Holding and Implications

DISMISSED: The appeal was dismissed with costs, and the court declined to interfere with the High Court’s order under challenge.

The direct effect was that the High Court’s decision allowing the tenant’s second appeal stood, with the eviction order treated as without jurisdiction on the reasoning adopted. The opinion did not indicate any broader implications or the laying down of new precedent beyond the decision on the materials and statutory provisions discussed.

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    Swami Krishnanand Govindanand v. M.D Oswal Hosiery (Regd.) .

    Order

    1. This is an appeal from the judgment and order of the High Court of Delhi allowing the respondent's Second Appeal Order No. 275 of 1980 on 2-12-1981.

    2. The appellant-landlord of the suit premises is a registered society under the Societies Registration Act. It filed application against the respondent-tenant for his eviction from the suit premises under clause (d) of Section 22 of the Delhi Rent Control Act, 1958 (for short “the Act”) on the ground that the premises are required bona fide for furtherance of its activities. The respondent filed written statement denying both that the appellant is an institution within the meaning of that provision and that it required the premises bona fide for furtherance of its activities. It appears that when the case was posted for trial, the learned counsel appearing for the respondent conceded the facts disputed by the respondent in his written statement before the Court. That statement of the advocate was recorded by the Additional Rent Controller thus: “The respondent's learned counsel has admitted the ground of eviction and also the fact that the applicant is a public charitable institution and for that purpose it required the premises.” On that basis the eviction application filed by the appellant was allowed on 24-3-1973. Within a week thereafter the respondent filed a review petition which was dismissed. He then filed a writ petition challenging the validity of the said order of eviction but that was dismissed as withdrawn on 22-7-1974. Thereafter, the respondent filed an appeal against the said order of eviction before the Rent Control Tribunal but it was also dismissed on 5-9-1977. Be that as it may, when the appellant filed a petition for execution of order of eviction, the respondent raised objections both under Section 40 of the Act as well as under Section 47 of the Code of Civil Procedure. By separate orders both the objection petitions were dismissed on 5-4-1980. That order was challenged by the respondent unsuccessfully before the Rent Control Tribunal. Dissatisfied with the order of the Tribunal dated 16-5-1980, dismissing the appeal, the respondent filed the aforementioned second appeal which was allowed on 2-12-1981. It is against that order of the High Court that the present appeal is filed by special leave.

    3. Mr Jaspal Singh, learned Senior Counsel appearing for the appellant, has vehemently contended that statement made by the learned counsel of the respondent across the Bar is indeed an admission of the party and, therefore, the Additional Rent Controller recorded his satisfaction on the basis of the admission; the order of the Additional Rent Controller cannot thereby be treated as being without jurisdiction. We are afraid we cannot accede to the contention of the learned counsel. Whether the appellant is an institution within the meaning of Section 22 of the Act and whether it required bona fide the premises for furtherance of its activities, are questions touching the jurisdiction of the Additional Rent Controller. He can record his satisfaction only when he holds on these questions in favour of the appellant. For so holding there must be material on record to support his satisfaction otherwise the satisfaction not based on any material or based on irrelevant material, would be vitiated and any order passed on such a satisfaction will be without jurisdiction. There can be no doubt that admission of a party is a relevant material. But can the statement made by the learned counsel of a party across the Bar be treated as admission of the party? Having regard to the requirements of Section 18 of the Evidence Act, on the facts of this case, in our view, the aforementioned statement of the counsel of the respondent cannot be accepted as an admission so as to bind the respondent. Excluding that statement from consideration, there was thus no material before the Additional Rent Controller to record his satisfaction within the meaning of clause (d) of Section 22 of the Act. It follows that the order of eviction was without jurisdiction.

    4. The learned counsel next contended that the statement of the learned counsel for the respondent should be treated as a compromise as the Court granted five years' time to the respondent for vacating the suit premises. In our view, this contention has to be rejected. The compromise like a contract postulates consensus between two parties. A statement of a counsel conceding the grounds of eviction and seeking some time for the respondent to vacate the premises, cannot be termed a compromise.

    5. In view of the above discussion, we do not find any reason to interfere with the order under challenge. The appeal is dismissed with costs.

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    Comments

    Swami Krishnanand Govindanand v. M.D Oswal Hosiery (Regd.) .
    (Feb 20, 2002)