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Niyas Ahmad Khan v. Mahmood Rahmat Ullah Khan And Another

Supreme Court Of India
May 5, 2008
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Factual and Procedural Background

The appellant is a tenant and the respondents are the landlords of premises governed by the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (“the Act”). When the premises were allotted to the appellant in 1985, the rent was fixed at Rs 150 per month under Section 16(9) of the Act. In 1998 the landlords initiated eviction proceedings under Section 21(1)(a) of the Act, alleging bona fide need, but both the prescribed authority and the appellate authority dismissed the eviction petition. The landlords then filed a writ petition under Articles 226/227 of the Constitution before the Allahabad High Court.

While admitting the writ petition on 17-10-2006, a learned Single Judge of the High Court issued an interim order directing the tenant to pay rent of Rs 12,050 per month from October 2006, failing which the landlords could secure eviction with police assistance. The High Court reasoned that it could, in writ jurisdiction, align the rent with prevailing market rates. The appellant-tenant challenged this interim order before the Supreme Court by way of a special-leave petition.

Legal Issues Presented

  1. Whether the High Court, in a landlord’s writ petition challenging refusal of eviction, has jurisdiction under Articles 226/227 of the Constitution to fix or enhance rent beyond the statutory framework of the U.P. Urban Buildings Act, 1972.
  2. Whether the interim fixation of rent at Rs 12,050 per month—over 48 times the previously determined rent—was arbitrary and contrary to statutory provisions and principles governing rent control.

Arguments of the Parties

Respondents – Landlords

  • Contended, through counsel, that similar interim orders enhancing rent had previously been allowed to stand because this Court had declined to grant special leave in comparable cases.

The opinion does not contain a detailed account of the appellant-tenant’s legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court focused on the limits of writ jurisdiction when a statute expressly governs rent fixation:

  • The U.P. Urban Buildings Act contains comprehensive provisions for determining standard rent and allowing increases; these statutory mechanisms cannot be bypassed.
  • Neither Article 226 (judicial review) nor Article 227 (superintendence) empowers the High Court to ignore statutory rent-control provisions or impose arbitrary rents.
  • The landlords’ writ petition sought only eviction; there was no prayer for enhanced rent, removing any foundation for the High Court’s interim direction.
  • The High Court fixed the figure of Rs 12,050 without evidence—no affidavits, market-rate studies, or consideration of factors such as location, age of construction, amenities, or statutory criteria—rendering the assessment “arbitrary and contrary to law.”
  • The Court distinguished two categories of writ petitions: (a) those filed by landlords challenging refusal of eviction, where no interim increase of rent is permissible, and (b) those filed by tenants challenging eviction orders, where reasonable, non-oppressive conditions (including possibly higher rent) may be imposed to stay eviction, provided the state rent law permits.
  • Past refusals of special leave in similar matters do not preclude examination of the issue on its merits in the present appeal.

Holding and Implications

ORDER: The appeal is allowed; the High Court’s interim order dated 17-10-2006 directing the tenant to pay rent at Rs 12,050 per month is set aside.

Implications: The decision reaffirms that High Courts, in landlord-initiated writ petitions challenging dismissal of eviction proceedings, lack authority to impose interim rent increases that contravene state rent-control statutes. The ruling serves as a caution against arbitrary or oppressive interim directions and clarifies the permissible scope of judicial discretion under Articles 226/227. No new precedent regarding rent fixation methodology was created; rather, existing statutory limits were reinforced.

Show all summary ...

R.V Raveendran, J.— Leave granted. Heard both sides.

2. The appellant is the tenant and the respondents are the landlords. On allotment of the premises which is the subject-matter of the proceedings, to the appellant, the rent was fixed as Rs 150 per month under Section 16(9) of the U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (“the Act”, for short) in the year 1985. The respondents initiated proceedings for eviction of the appellant under Section 21(1)(a) of the Act in the year 1998, on the ground that they required the premises for their own use.

3. The prescribed authority dismissed the petition for eviction and that was confirmed by the appellate authority by dismissing the appeal filed by the respondents. Feeling aggrieved, the respondents filed a writ petition before the Allahabad High Court under Articles 226/227 of the Constitution of India.

4. While admitting the said writ petition filed by the landlords, a learned Single Judge of the Allahabad High Court issued an interim direction dated 17-10-2006 to the tenant (the appellant herein) to pay rent at the rate of Rs 12,050 per month with effect from October 2006 with a further direction that if the rent at that rate is not paid for two consecutive months, the landlord could evict the tenant by coercive process with the aid of police. The learned Judge has justified his interim direction on the ground that in exercise of writ jurisdiction the High Court can reasonably increase the rent so as to bring it on a par with the prevailing market rentals. The increased rent was assessed in the following manner:

(i) Rent for six rooms (at Rs 1500 per room) Rs 9000 (ii) Kitchen Rs 500 (iii) Three verandahs (at Rs 500 per verandah) Rs 1500 (iv) Open terrace Rs 300 (v) Three latrines/bathrooms (at Rs 250 each) Rs 750 Total Rs 12,050

The tenant has challenged the said interim order of the High Court in this appeal by special leave.

5. The premises in question is governed by the provisions of the Act. The said Act contains provisions relating to fixation of standard rent and for increase in rent. Where the statute specifically provides for fixation of rent and increase in rent, it is impermissible for the High Court to ignore those provisions and direct the tenant to pay an arbitrarily assessed rent. Neither the power of judicial review under Article 226 nor the power of superintendence under Article 227, can be exercised in a manner ignoring or violating the specific provisions of a statute. While purporting to exercise the power under Article 227 to keep inferior courts and tribunals within the limits of their authority, the High Court should not itself cross the limits of its authority.

6. In this case, the landlord filed an eviction petition seeking possession on the ground that they bona fide required the suit premises for their own use. The said request was rejected both by the prescribed authority and by the appellate authority. The landlord therefore approached the High Court challenging the said rejection by filing a writ petition. The prayer in the writ petition was for quashing the orders of the prescribed authority and the appellate authority and for grant of an order of eviction. There was no prayer for a direction for payment of any rent or for payment of any increased rent. When the grievance in the writ petition was only in regard to refusal of an order of eviction under Section 21(1)(a) of the Act, there is no justification for directing payment of a higher rent either pending consideration of the writ petition or otherwise.

7. Even assuming that the High Court has power to increase the rent, we fail to understand how in the absence of any evidence — either oral or documentary or by way of affidavit, the learned Single Judge could assess the rent as Rs 12,050 which is more than 48 times the rent of Rs 250 earlier determined. The learned Single Judge did not consider any of the relevant circumstances like the market value of the building on the date of letting, prevailing rentals in the locality as on the date of letting, the size or situation or amenities, age of construction, latest assessment of the building or other circumstances. Further, when a premises consisting of several rooms, verandahs, kitchen, terrace, bathrooms, latrines, is let out as a single unit, the question of assessing the rent with reference to each room or portion of such premises separately does not arise. The learned Judge's observation that by taking a pragmatic approach he was assessing the rent at Rs 12,050, to say the least, is arbitrary and contrary to law.

8. The learned counsel for the respondent landlord submitted that in several cases, this Court has rejected the challenge to similar orders by refusing to grant special leave. Dismissal of a special leave petition, in limine does not preclude this Court from examining the same issue in other cases. Further, where the rent is increased reasonably, having regard to the fact that the interim direction is purely a temporary arrangement during the pendency of the writ petition, it is possible that this Court might have refused to interfere under Article 136 of the Constitution of India. Every wrong or doubtful exercise of jurisdiction does not call for grant of special leave, particularly if the order has not resulted in any injustice. In fact, in several cases, this Court has set aside the similar interim directions for payment of excessive rents.

9. We should however note the distinction between cases where a writ petition is filed by the tenant challenging the order of eviction and seeking stay of execution thereof, and cases where a writ petition is filed by the landlord challenging the rejection of a petition for eviction. What we have stated above is with reference to writ petitions filed by landlords. In writ petitions filed by tenants, while granting stay of execution of the order of eviction pending disposal of writ petition, the High Court has the discretion to impose reasonable conditions to safeguard the interests of the landlord. But even in such cases the High Court cannot obviously impose conditions which are ex facie arbitrary and oppressive thereby making the order of stay illusory. When a tenant files a writ petition challenging the order of eviction, the High Court may reject the writ petition if it finds no merit in the case of the tenant; or in some cases, the High Court may admit the writ petition but refuse to grant stay of execution, in which event, the tenant may be evicted, but can claim restoration of possession if he ultimately succeeds in the writ petition; or in some cases, the High Court finding the case fit for admission, may grant stay of eviction, with or without conditions, so that status quo is maintained till the matter is decided. Where the High Court chooses to impose any conditions in regard to stay, such conditions should not be unreasonable or oppressive or in terrorem. Adopting some arbitrary figure as prevailing market rent without any basis and directing the tenant to pay absurdly high rent would be considered oppressive and unreasonable even when such direction is issued as a condition for stay of eviction. The High Court should desist from doing so.

10. To sum up, in writ petitions by landlords against rejection of eviction petitions, there is no scope for issue of any interim direction to the tenant to pay higher rent. But in writ petitions by tenants against grant of eviction, the High Court may, as a condition of stay, direct the tenant to pay higher rent during the pendency of the writ petition. This again is subject to two limitations. First, the condition should be reasonable. Second, there should not be any bar in the respective State rent control legislation in regard to such increases in rent. Be that as it may.

11. The appeal is allowed and the order dated 17-10-2006 passed by the High Court directing the tenant to pay rent at the rate of Rs 12,050 per month from October 2006 is set aside.