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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Section 9-A of the U.P Urban Buildings (Regulation of Letting, Rent & Eviction) Act, 1972
  • U.P Act 28 of 1976
  • Section 9-A of the Act
  • Section 9-A, Section 37 of the Act, Article 226 of the Constitution
  • U.P Act 17 of 1985
  • Section 10 of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Section 9-A of the U.P Urban Buildings (Regulation of Letting, Rent & Eviction) Act, 1972
  • U.P Act 28 of 1976
  • Section 9-A of the Act
  • Section 9-A, Section 37 of the Act, Article 226 of the Constitution
  • U.P Act 17 of 1985
  • Section 10 of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The appellants are tenants of premises owned by the Jama Masjid Committee, Urdu Bazar, Gorakhpur, a public religious trust. Relying on Section 9-A of the U.P. Urban Buildings (Regulation of Letting, Rent & Eviction) Act, 1972, the landlord-trust applied to the District Magistrate (exercised by the Town Rationing Officer) for revision of rent. After estimating the market value of the premises, the officer fixed the monthly rent at double the amount previously paid, effective 31 January 1978.

The tenants challenged this determination in writ petitions before the Allahabad High Court, which were dismissed in limine on 4 January 1980. The present civil appeals were filed against that High Court order.

Legal Issues Presented

  1. Whether the absence of an appellate remedy against an order passed under Section 9-A renders that provision unconstitutional as arbitrary and violative of Articles 14 and 19 of the Constitution.
  2. Whether Section 9-A applies when a portion of the tenanted premises is used for residential purposes, and if so, whether the Town Rationing Officer erred in failing to make that distinction in Civil Appeal No. 3093 of 1980.

Arguments of the Parties

Appellants’ Arguments

  • Section 9-A, as it then stood, provided no right of appeal and attached finality to the District Magistrate’s order under Section 37, thereby denying tenants any effective remedy. This, it was contended, makes the provision arbitrary and unreasonable under Articles 14 and 19. Reference was made to the fact that Section 10 grants an appeal in standard-rent determinations and that the legislature subsequently extended that right to Section 9-A orders (U.P. Act 17 of 1985).
  • In Civil Appeal No. 3093 of 1980, only part of the premises is used as a shop; the remainder is residential. Because Section 9-A is confined to buildings let for shop or commercial purposes, the authority allegedly erred in applying it to the entire premises.

Respondent’s Arguments

The opinion does not contain a detailed account of the respondent’s legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Organo Chemical Industries v. Union of India (1979) 4 SCC 573; (1980) 1 SCR 61 Absence of an appellate remedy does not per se make a statutory power arbitrary if other safeguards, including judicial review, exist. Used to support the view that Section 9-A is not unconstitutional merely because it provides no appeal.
Babubhai & Co. v. State of Gujarat (1985) 2 SCC 732; (1985) 3 SCR 614 Factors to assess reasonableness of statutory power include status of authority, objective criteria, natural-justice safeguards, and availability of writ review. Cited to show that Section 9-A contains sufficient objective checks and is subject to writ jurisdiction, thereby passing the test of reasonableness.
Workmen v. Meenakshi Mills Ltd. (1992) 3 SCC 336 Judicial review under Article 226 remains available despite statutory finality clauses. Relied upon to establish that Section 37’s finality clause does not bar writ petitions against orders under Section 9-A.

Court's Reasoning and Analysis

1. Constitutionality of Section 9-A: The Court held that the mere absence of an appellate mechanism does not render Section 9-A arbitrary or violative of Articles 14 and 19. It emphasised:

  • The power is vested in the District Magistrate or an authorised officer, conferring a measure of institutional safeguard.
  • The power must be exercised objectively after observance of natural justice and culminates in a speaking order.
  • Judicial review under Article 226 remains available; Section 37’s declaration of finality cannot oust that jurisdiction.
  • The cited precedents illustrate that alternative checks—such as writ review—can suffice in lieu of an appeal.

2. Mixed Use of Premises: The Court noted that the contention regarding partial residential use in Civil Appeal No. 3093 of 1980 had not been raised before the Town Rationing Officer. Consequently, no error could be attributed to the officer for not considering it. While rejecting the challenge for the present proceedings, the Court left open the possibility of raising the issue in any future rent-revision application.

Holding and Implications

APPEALS DISMISSED. No order as to costs.

Immediate Effect: The revised rent fixed by the Town Rationing Officer—double the previous rent—remains payable by the appellants from the effective date. The High Court’s dismissal of the writ petitions stands affirmed.

Broader Implications: The judgment upholds the constitutionality of Section 9-A despite the absence of an appellate remedy, reinforcing that statutory finality clauses cannot oust writ jurisdiction and that judicial review may serve as an adequate safeguard against arbitrariness. No new legal precedent is set beyond this affirmation.

    Munni Lal And Another v. Town Rationing Officer, Gorakhpur And Another

    Order

    1. Both these appeals are filed by the tenants who have felt aggrieved by the enhancement of the rent payable by them in respect of the premises in their occupation. The rent has been revised on the basis of the provisions contained in Section 9-A of the U.P Urban Buildings (Regulation of Letting, Rent & Eviction) Act, 1972 (hereinafter referred to as “the Act”), which was introduced in the Act by U.P Act 28 of 1976 with effect from 5-7-1976. Section 9-A provides as under:

    “9-A. Revision of rent of commercial buildings let out by public religious institutions.— Where any building belonging to a public charitable or public religious institution has been let out to a tenant for the purposes of a shop or commercial establishment, then notwithstanding anything contained in this Chapter, or any contract or lease, the landlord of such building may apply to the District Magistrate for revision of the monthly rent payable therefor, and such rent shall be revised to a sum equivalent to one-twelfth of ten per centum of the market value of the building under tenancy:
    Provided that the rent revised under this sub-section shall not exceed double the rent payable on the date of the application by the landlord under this sub-section.
    (2) The rent revised under sub-section (1) shall be payable by the tenant from the commencement of the month of tenancy next following the date of the application.
    (3) Where the rent of any building has been revised in accordance with sub-section (1), then the landlord shall not be entitled to move a fresh application under the said sub-section within a period of five years from the date of the final order.
    Explanation.— In this section, the expressions ‘shop’ and ‘commercial establishment’ shall have the meaning assigned to them in the Uttar Pradesh Dookan Aur Vanijya Adhishthan Adhiniyam, 1962, as amended from time to time.”

    The premises occupied by the appellants in these appeals are owned by the Jama Masjid Committee, Urdu Bazar, Gorakhpur, which is a religious trust covered by Section 9-A of the Act. An application was submitted by the landlord-trust for revision of rent under Section 9-A of the Act. The Town Rationing Officer exercising the powers of the District Magistrate, passed orders whereby, after estimating the market value of the premises, he has fixed the rent at double the rent which was being paid by the appellants prior to the date of the application submitted by the landlord-trust. The said order regarding fixation of the revised rent has been made effective from 31-1-1978. The writ petitions that were filed by the appellants in the Allahabad High Court against the said order of the Town Rationing Officer were dismissed in limine by the High Court by order dated 4-1-1980. These appeals are directed against the said order of the High Court.

    2. Shri Yogeshwar Prasad, the learned Senior Counsel appearing for the appellants, has submitted that under Section 9-A of the Act, as it stood at the relevant time, there was no provision for an appeal against an order passed under Section 9-A and that, on the other hand, finality has been attached to such an order under Section 37 of the Act and thus the appellants were denied a remedy to assail the correctness of the orders passed by the Town Rationing Officer. He has urged that at least one right of appeal should have been provided and that a right of appeal is provided under Section 10 of the Act against an order for determination of standard rent under Section 9. It has been pointed out that even in respect of orders passed under Section 9-A of the Act a right of appeal has now been conferred with effect from 18-5-1983 by U.P Act 17 of 1985, whereby Section 10 has been amended so as to include an order passed under Section 9-A.

    3. The fact that a right of appeal is not available against the order passed under Section 9-A of the Act does not render the said provision unconstitutional and void as being violative of Articles 14 and 19 of the Constitution on the ground of arbitrariness and reasonableness. Provision of a corrective machinery by way of appeal or revision to a superior authority to rectify an adverse order passed by an authority or body is only one of the several ways in which the power could be checked or controlled and its absence will be one of the factors to be considered along with others before coming to the conclusion that the power so conferred is unreasonable or arbitrary. The factors which have a bearing are: the status of the person on whom the power is conferred, the nature of the power, i.e, whether the exercise of the power depends upon the subjective satisfaction of the authority or body or is to be exercised objectively by reference to some existing facts or tests; is it a quasi-judicial power requiring observance of the principles of natural justice and making of a speaking order etc. in which event the order would be subject to judicial review under Article 226 of the Constitution on the grounds of perversity, extraneous and irrelevant considerations, mala fides and other infirmities. [See : Organo Chemical Industries v. Union of India (1979) 4 SCC 573, (1980) 1 SCR 61; Babubhai & Co. v. State of Gujarat (1985) 2 SCC 732, (1985) 3 SCR 614 and Workmen v. Meenakshi Mills Ltd. (1992) 3 SCC 336].

    4. The power under Section 9-A is conferred on the District Magistrate or an officer authorised by the District Magistrate to exercise the power. The power is to be exercised objectively after observing the principles of natural justice. The order passed under Section 9-A is subject to judicial review by the High Court under Article 226 of the Constitution. The finality attached to the order by Section 37 of the Act does not preclude an aggrieved person to challenge the said order by moving the High Court under Article 226 of the Constitution of India and the High Court can grant appropriate relief in such proceedings. We are, therefore, unable to accept the contention urged by Shri Yogeshwar Prasad that Section 9-A suffers from the vice of arbitrariness and unreasonableness.

    5. The other contention which has been urged by Shri Yogeshwar Prasad is that Section 9-A is confined in its application to buildings which have been let out for the purpose of a shop or a commercial establishment and that in Civil Appeal No. 3093 of 1980 a part of the premises have been let out for the purpose of shop and rest of the premises have been let out for residential purposes and that while revising the rent the Town Rationing Officer has failed to take into account this fact.

    6. We find that this question was not agitated by the said appellant before the Town Rationing Officer and, therefore, it cannot be said that the Town Rationing Officer has committed any error in not adverting to it. It cannot, therefore, be said that the order passed by the Town Rationing Officer suffers from an error which requires interference by this Court. This will not preclude the appellants in Civil Appeal No. 3093 of 1980 from agitating this matter in future proceedings with regard to revision of rent under Section 9-A of the Act.

    7. The appeals, therefore, fail and are accordingly dismissed. No costs.

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    Munni Lal And Another v. Town Rationing Officer, Gorakhpur And Another
    (Apr 18, 1995)