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Factual and Procedural Background

Chintapalle Achaiah, the petitioner, filed three petitions for leave to appeal to the Supreme Court following the dismissal of petitions in three main proceedings by the High Court on 14th October 1966. The disputes arose from tenancy issues concerning premises known as Brindavan Hotel in Hyderabad, leased by landlord P. Gopalakrishna Reddy to the tenant under a lease deed dated 11th January 1961. The tenant challenged the applicability and validity of the Andhra Pradesh Lease, Eviction and Rent Control Act (XV of 1960) (the new Act), particularly section 32(b) which exempted buildings constructed after 26th August 1957 from the Act’s operation. The tenant sought declarations that section 32(b) was void and that the new Act applied to the premises, while the landlord sought eviction on lease expiry.

The tenant filed various suits and petitions challenging the validity of section 32(b) and the new Act, including writ petitions under Articles 227 and 228 of the Constitution and applications under section 113 of the Civil Procedure Code for reference to the High Court. The High Court held section 32(b) valid and dismissed petitions challenging the new Act’s constitutionality. The tenant’s subsequent petitions for leave to appeal to the Supreme Court were dismissed, and the tenant also challenged the jurisdiction of Rent Controllers to fix rent for the premises. The tenant amended pleadings to question the entire new Act’s validity on procedural grounds related to legislative process. The High Court heard these matters together and delivered a common judgment dismissing all petitions, holding the new Act valid and constitutional.

Legal Issues Presented

  1. Whether section 32(b) of the Andhra Pradesh Lease, Eviction and Rent Control Act (XV of 1960) is unconstitutional and invalid under Articles 14 and 19 of the Constitution of India.
  2. Whether the new Act (XV of 1960) is ultra vires the Constitution due to procedural defects in its enactment.
  3. Whether the former Hyderabad State Act (XX of 1954) remains in force if the new Act is invalid.
  4. Whether the High Court’s dismissal of petitions challenging the new Act’s validity is a final order appealable to the Supreme Court under Articles 132 and 133 of the Constitution.
  5. Whether the claims in the petitions involve substantial questions of law as to the interpretation of the Constitution warranting leave to appeal.

Arguments of the Parties

Petitioner (Tenant) Arguments

  • Section 32(b) of the new Act is void and unconstitutional, thus the tenant is entitled to protections under the new Act.
  • The new Act is ultra vires the Constitution because it was not referred to the Telangana Regional Committee as mandated by the Andhra Pradesh Regional Committee Order, 1958.
  • The tenant sought reference of substantial constitutional questions to the High Court under section 113 Civil Procedure Code.
  • The tenant contended that the case premises’ value exceeds Rs. 20,000, thus appeals under Article 133(1)(b) of the Constitution apply.
  • The tenant sought leave to appeal to the Supreme Court challenging the High Court’s dismissal of petitions and orders.

Respondent (Landlord) Arguments

  • The landlord relied on the validity of section 32(b) and the new Act to assert that the premises are exempt from the new Act’s protections.
  • The landlord sought eviction based on expiry of the lease and the new Act’s applicability.
  • The landlord opposed the tenant’s attempts to refer constitutional questions to the High Court and to stay proceedings.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ramesh v. Gendalal, 1966 2 S.C.J 762; A.I.R 1966 S.C 1445 Finality of High Court orders under Article 226 and appealability under Article 133(1) The Court relied on this to determine that the High Court’s order on the writ petition was final and appealable, as it disposed of the constitutional question raised.
Central Talkies v. Dwarka Prasad, A.I.R 1956 All. 348 Interpretation of Article 133(1)(b) regarding claims involving property value and appealability Used to analyze whether the petition involved claims respecting property of value exceeding Rs. 20,000 for appeal purposes; the Court distinguished this precedent based on the nature of the claims.
Ram Lakshman Singh v. Girindra Mohan Hazra, A.I.R 1963 Cal. 13 Approval of Central Talkies decision on property value claims under Article 133(1)(b) Supported the Court’s view on the inapplicability of Article 133(1)(b) to the present petitions.
Maneklal v. Hormusji, A.I.R 1945 Bom. 113 Property claims and their valuation for appeal purposes Referenced in comparing different High Court approaches to Article 133(1)(b); the Court favored a narrower interpretation.
Dhanna Mal v. Lala Moti Sagar, A.I.R 1923 Lah. 286 Property claims and appealability under Article 133(1)(b) The Court noted dissent from this decision in Maneklal v. Hormusji and preferred the latter’s reasoning.
Shaik Ali Bin Hassan v. The State of Andhra Pradesh, S.G.L.P No. 7 of 1965 Interpretation of “directly or indirectly” in Article 133(1)(b) and appealability Binding Division Bench decision held that incidental claims do not attract Article 133(1)(b); Court followed this view to deny applicability of clause (b) to the petitions.

Court's Reasoning and Analysis

The Court examined the constitutional validity of section 32(b) of the new Act and the entire new Act itself, concluding that the new Act was valid and did not contravene Articles 14 or 19 of the Constitution. The Court found that the exemption for buildings constructed after 26th August 1957 was constitutionally sound. It rejected the tenant’s contention that the new Act was ultra vires due to lack of referral to the Telangana Regional Committee, holding that such referral was not mandatory.

Regarding the appealability of the High Court’s orders, the Court analyzed Articles 132 and 133 of the Constitution. It held that the High Court’s dismissal of writ petitions and leave petitions constituted final orders, appealable under Article 133(1). However, it found no substantial question of constitutional law justifying leave to appeal under Article 132(1). The Court also determined that the claims did not involve property questions of the requisite monetary value under Article 133(1)(b), applying binding precedents that limit such claims to those directly or indirectly involving property rights rather than incidental or remote claims.

The Court distinguished the tenant’s claims from precedents where property value sufficed for appeal, emphasizing that the petitions primarily challenged the validity of the statute and did not raise tenancy rights or property claims of sufficient value. The Court further held that the explanation to Article 132 regarding finality of issues decided did not extend to Article 133. Consequently, the Court concluded that these petitions were not fit for leave to appeal to the Supreme Court.

Finally, the Court dismissed the petitions for leave to appeal with costs, rejecting the need to consolidate the petitions for procedural purposes such as security deposits and printing.

Holding and Implications

The Court dismissed all three petitions for leave to appeal to the Supreme Court (S.C.L.P Nos. 94 to 96 of 1966) with costs.

The direct effect of this decision is that the High Court’s judgment upholding the validity of the Andhra Pradesh Lease, Eviction and Rent Control Act (XV of 1960) and its section 32(b) stands affirmed, precluding further reference or challenge on these constitutional grounds in the pending suits. No certificate for leave to appeal was granted under Articles 132 or 133 of the Constitution, thereby limiting the scope for Supreme Court intervention. The decision does not establish new precedent beyond affirming the applicability of existing constitutional and procedural principles to the facts. It confirms the finality of the High Court’s orders on the constitutional validity of the statute and clarifies the inapplicability of property value-based appeal provisions to statutory validity challenges.

    C. Achiah v. P. Gopalakrishna Reddy And Others

    Anantanarayana Ayyar, J.:— Chintapalle Achaiah is the petitioner in these three petitions for leave to appeal to the Supreme Court. On 14th October, 1966, we pronounced a common judgment dismissing the petition in each of three main proceedings. The petitioner felt aggrieved with the order of dismissal and filed these petitions against each of them.

    2. S.C.L.P No. 94 of 1966 is filed against the judgment so far as it related to C.M.P No. 13247 of 1965, and C.M.P No. 10504 of 1966 is for stay of all further proceedings in O.S No. 44 of 1965, on the file of the 1st Additional Chief Judge, ‘City Civil Court, Hyderabad pending the disposal of the above S.C.L.P, C.M.P No. 10505 of 1966 is for stay of all further proceedings in O.S No. 41 of 1965 on the file of the 1st Additional Chief Tudge, City Civil Court, pending the disposal of S.C.L.P No. 94 of 1966.

    3. S.C.L.P No. 95 of 1966 is filed against the judgment so far as it related to C.R.P No. 221 of 1966. S.C.L.P No. 96 of 1966 is filed against the judgment so far as it related to W.P No. 1360 of 1965.

    4. C.M.P No. 10503 of 1966 is to consolidate all the three leave petitions, S.C.L.P Nos. 94 to 96 of 1966 for the purpose of security deposit for costs and printing. The sole respondent in each of these petitions and in the main proceedings is P. Gopalakrishna Reddy, whom we shall refer to for convenience hereafter in this order as landlord. Similarly, we shall refer to for convenience the petitioner Chintapalli Achaiah, as tenant.

    5. The relevant facts are as follows

    6. The Landlord is the owner of premises known as Brindavan Hotel (hereafter referred to for convenience as the case premises) situated in Hyderabad within its Municipal Limits. He leased it under a lease deed dated 11th January, 1961 for a period of two years according to him, to the tenant. At that time, the Andhra Pradesh Lease, Eviction and Rent Control Act (XV of 1960) (hereafter referred to as the new Act) was in force. Prior to it, the Hyderabad Houses (Rent, Eviction and Lease) Control Act (XX of 1954) (hereafter referred to for convenience as the old Act) was in force. section 32 (b) of the new Act-exempted from the operation of that Act buildings which had been constructed after 26th August, 1957. It is beyoad dispute that the case premises was constructed after that date (26th August, 1957). If that provision of law was valid, the case premises would not be affected by the new Act. The landlord desired that the tenant should vacate the building at the end of the lease period but the tenant desired the contrary. So, the tenant filed a suit (OS. No. 19 of 1963) in the Court of the Chief Judge, City Civil Court on 31st October, 1963 for a declaration that, notwithstanding section 32 (b) of the new Act which was void, he as a tenant was entitled to the benefit of the new Act, (XV of 1960). On 1st November, 1963, the landlord filed O.S No. 20 of 1963, in the same Court for eviction of the tenant alleging that the lease had expired. Ultimately, O.S No. 19 of 1963, became O.S No. 44 of 1965 and O.S No. 20 of 1963 became O.S No. 41 of 1965, on the file of the learned Additional Chief Judge, Hyderabad.

    7. On the pleadings, various issues were framed; one of them was as to whether section 32 (b) of the new Act was unconstitutional, invalid and inoperative in view Articles 14 and 19 of the Constitution of India.

    8. The tenant filed I.A No. 91 of 1964, contending that the suits raised substantial questions as to the interpretation of the Constitution and praying, on that ground that the question involved may be referred to the High Court for decision under the proviso to section 113 Civil Procedure Code. The learned Additional Chief Judge passed an order rejecting that request. Against that order, the petitioner filed of C.R.P No. 1679 of 1964.

    9. The tenant also filed directly in the High Court C.M.P No. 4906 of 1964, under Articles 227 and 228 of the Constitution regarding the validity of section 32 (b). A Bench of this Court heard that G.R.P and Civil Miscellaneous Petition and passed an order holding that section 32 (b) of the new Act was valid and did not offend in any manner Article 14 or any other Article of the Constitution and that the new Act did not apply to the buildings constructed after 26th August, 1957. This Court also directed the disposal of the suits as early as possible.

    10. The petitioner filed S.C.L.P Nos. 64 and 65 of 11965, against the judgment for leave to appeal to the Supreme Court but they were dismissed. He filed Special Leave Applications Nos. 500 and 502 of 1965, in the Supreme Court and they were rejected on 23rd March, 1965, as withdrawn by the tenant. Upto that stage, the tenant was relying on the new Act for relief except for challenging the validity of exemption granted under section 32 (b) of that Act.

    11. Meanwhile, the tenant also instituted R.C 23-FR-1964 before the Additional Rent Controller, Hyderabad for fixation of rent under the New Act. The Rent Controller refused relief on the ground that he had no jurisdiction as the case premises-was a new building covered by section 32(b). The tenant filed an appeal before the Chief Judge, Small Causes Court, Hyderabad in R.A No. 123 of 1964. It was dismissed on the same ground. The tenant filed a Civil Revision Petition against that order in the High Court which also ended in dismissal.

    12. The tenant then got his plaint in O.S No. 44 of 1965, amended so as to question the validity of the entire new Act on the ground that the new Act related mainly to markets and ‘development’ which were items mentioned in Schedule I to the Andhra Pradesh Regional Committee Order, 1958 issued by the President of India and that, consequently, the Bill which ultimately became the new Act, should have been referred to the Telangana Regional Committee before it could be finally passed by the State Legislature and because law and that such mandatory procedure was in fact not followed and that, therefore, the new Act in its entirely was invalid.

    13. As a result of these amended pleadings, two additional issues were framed as follows:

    “(i) Whether Act XV of 1960 of Andhra Pradesh is ultra vires of the Constitution ?

    (ii) If so, whether Act XX of 1954 of former Hyderabad State is still in force and consequently whether the defendant is a tenant under the former Hyderabad State Act XX of 1954 ?”

    14. The petitioner filed I.A No. 1580 of 1965, in O.S No. 41 of 1965, under section 113 Civil Procedure Code, before the trial Court praying for reference of the case to the High Court. The learned trial Judge rejected the application by an order dated 7th December, 1965, holding that the term ‘market’ covered the case premises and also reference of the Bill to the Telengana Regional Committee was not mandatory. Against that order of dismissal, the tenant filed C.R.P No. 221 of 1966.

    15. The tenant also filed directly in this Court C.M.P No. 13247 of 1965 under Article 228 of the Constitution with prayer that this Court should withdraw the suits, O.S Nos. 41 and 45 (sic) of 1965, and determine the questions of law which arose on the two additional issues already referred to by us.

    16. The tenant also filed W.P No. 300 of 1965, questioning the validity of the new Act on substantially the same ground which he urged in I.A No. 1580 of 1965, and C.M.P No. 13247 of 1965, as regards the new Act.

    17. All these three matters involved the same questions of law namely, the validity of the new Act. By common consent, we heard all these three proceedings together and delivered a common judgment on 14th October, 1966 holding that the new Act was valid, that it did not contravene any provision of the Constitution and that it did not suffer from any infirmity. Accordingly, we dismissed all these three petitions. It is this judgment which is now sought to be appealed against in the Supreme Court.

    18. In our judgment, we have clearly held that the new Act is valid. In view of that decision, which is binding on the trial Court as regards the validity of Act XV of 1960 i.e, the new Act, there cannot hereafter be any scope for any reference by the trial Court to this High Court under section 113, Civil Procedure Code, as prayed for by the tenant in I.A No. 1580 of 1965, before the trial Court and in C.R.P No. 221 of 1966 in this Court. There is also no scope for the Supreme Court holding that a reference should be made under section 113 Civil Procedure Code, to this Court by the trial Court or that this Court should withdraw the suits as prayed for in C.M.P No. 13247 of 1965.

    19. Therefore, S.C.L.P Nos. 94 and 95 of 1966 have to be dismissed.

    20. There remains S.C.L.P No. 96 of 1966.

    21. Article 133(1) of the Constitution runs as follows:—

    “(i) An appeal shall lie to the Supreme Court from any Judgment, decree or final order in a Civil proceeding of a High Court in the territory of India if the High Court certifies—

    (a) that the amount or value of the subject-matter of the dispute in the Court of first instance and still in dispute on appeal was and is not less thin twenty thousand rupees or such other sums may be specified in that behalf of Parliament by law; or

    (i) that the judgment, decree or final order involves directly or indirectly some claim or question respecting property of the like amount or value; or

    (c) that the case is a fit one for appeal to the Supreme Court.”

    22. In Ramesh v. Gendalal . 1966 2 S.C.J 762; A.I.R 1966 S.C 1445 at page 1449., their Lordships of the Supreme Court observed as follows:—

    “We are concerned here with the exercise of extraordinary original civil jurisdiction under Article 226. Under that Jurisdiction, the High Court does not hear an appeal or a revision. The High Court is moved to intervene and to bring before itself, the record of a case decided by or pending before a Court or tribunal or any authority within the High Court's Jurisdiction. A petition to the High Court invoking this jurisdiction is a proceeding quite Independent of the original controversy. The controversy in the High Court, in proceedings arising under Article 226 ordinarily is whether a decision of, or a proceeding before, a Court tribunal or authority should be allowed to stand or should be quashed, for want of jurisdiction or on account of errors of law apparent on the face of the record. A decision in the exercise of this jurisdiction, whether interfering with the proceeding impugned or declining to do so, is a final decision in so far as the High Court is concerned because it terminates finally the special proceeding before it……. The answer to the question whether the order is final or not will not depend on whether the contraversy is finally over but whether the controversy raised before the High Court is finally over or not. If it is, the order will be appealable provided the other conditions are satisfied, otherwise not.”

    23. Dealing with the material relevant to that case, their Lordships observed thus:

    “In the present case, the question raised was whether the commissioner had jurisdiction to set aside the discharge of the debt ordered by the Claims Officer the High Court decided to dismiss the petition and the order that was passed must be regarded as final for the purpose of appeal to this Court.”

    24. In this case, the substantial question raised in the Writ Petition was whether the new Act was null and void. The prayer in the Writ Petition which is a Civil Proceeding, was

    ‘to issue a writ of mandamus or any other appropriate writ, order or directions in the nature thereof for declaring the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, (XV of 1960) as null and void and to direct the Government of Andhra Pradesh to appoint a Rent Controller, as per the provisions of Act (XX of 1954) and pass such other and further orders as the Court deems fit and proper in the circumstances of the case’.

    25. This Court held that the Act was not null or void and consequently did not give any direction as prayed for in the Writ Petitior. Therefore, so far as the question raised in the Writ Petition is concerned, the order of this Court is final, unaffected by the fact that the suits are still pending, for the purpose of Article 133(1) of the Constitution.

    26. The present petition (S.C.L.P No. 96 of 1966) is filed under Article’133(1)(6) and (c) and also under Article 132 of the Constitution. (It also mentions sections 109 and 110 of the Civil Procedure Code and Order 45, rule 3, Civil Procedure Code), Article 132 runs thus:—

    “(1) An appeal shall lie to the Supreme Court from any Judgment, decree or final order of a High Court in the territory of India, whether in a civil or other proceeding, if the High Court certifies that the case involves a substantial question of law as to the interpretation of this Constitution.

    Explanation: For the purposes of this article, the expression ‘final order’ includes an order deciding an issue which, if decided in favour of the appellant, would be sufficient for the final disposal of the case.”

    27. The petition itself, as such, does not mention clause (a) of Article 133(1). It is: obvious that clause (a) cannot apply in view of the fact that the prayer in the Writ Petition is for a declaration of invalidity of a statute and for appointment of a Rent Controller and such subject-matter of dispute cannot be said to have a value in terms of money.

    28. Shri Narasaraju, the learned Counsel for the petitioner-tenant has contended that clause (b) to Article 133(1) applies to this case. For this purpose, he contends that our judgment sought to be appealed against involved directly or indirectly claim or question respecting property i.e, the case premises which is worth of value such more than Rs. 20,000.

    29. In Central Talkies v. Dwarka Prasad, the Allahabad High Court held that although the right of tenancy which the applicant claimed might be worth less than Rs. 20,000, he was laying claim to possession over a building of the cinema house which was considerably worth more than Rs. 20,000 and that, therefore, sub-clause (b) of Article 133(1) applied. This decision relied on the decisions of the Bombay High Court in Kastur Bhai Mani Bhai v. Hiralal, and Maneklal v. Homusji . A.I.R 1945 Bom. 113., and differed from the decision of the Lahore High Court in Dharma Mal v. Lala Moti Sagar . A.I.R 1923 Lah. 286 2..

    30. The decision of the Allahabad High Court in Central Talkies v. Dwarka Prasad . A.I.R 1956 All. 348. was approved in Ram Lakshman Singh… v. Girindra Mohan Hazra…. . A.I.R 1963 Cal. 13..

    31. The decision of the Lahore High Court in Dhanna Mal v. Lala Moti Sagar had also been dissented from in Maneklal v. Hormusji.

    32. In Shaik Ali Bin Hassan v. The State of Andhra Prasdesh, (Order of this Court in S.G.L.P No. 7 of 1965 dated 10th February, 1965) a Division Bench of this Court consisting of Basi Reddy and Gopal Rao Ekbote, JJ., held that their decision, which they had given for upholding a scheme for nationalisation of road transport of a route, did not involve directly or indirectly any claim or question respecting property. The learned Judges also observed as follows;

    “Be it noted that the words used are ‘directly or indirectly’ and not ‘remotely or incidentally’”

    33. On that basis, they held that sub-clause (b) of Article 133(1) did not apply. This decision of a Division Bench is binding on us in preference to the decisions of other High Courts. We respectfully agree with the view, of this Court in the above mentioned decision.

    34. In these cases, the prayer in the Writ Petition is for a declaration regarding the validity of the new Act and the appointment of a Rent Controller to fix the fair rent. In our opinion, the judgment cannot be said to involve directly or indirectly the claim of tenancy regarding the case premises. If at all, it can be said to involve only remotely or incidentally. We find that Article 133(1)(b) does not apply to any of these cases.

    35. So far as the order concerned in I.A No. 1580 of 1965, against which C.R.P No. 221 of 1966 is filed, it is an order arising from two additional issues in a suit (O.S No. 41 of 1965) which is still pending. The learned Advocate for the petitioner draws our attention to the explanation to Article 132 and contends that, if the additional is sues 1 and 2 were decided in favour of the tenant, he cannot be evicted and, therefore, the decision would be sufficient for the final disposal of the suit concerned. But, the explanation makes it clear that it applies only for the purpose of Article 132 and that will not apply to Article 133. We find that none of the cases involves a substantial question of law as to the interpretation of the Constitution so as to grant a certificate under Article 132(1) of the Constitution.

    36. We are of the view that these are not fit cases for leave to appeal to the Supreme Court so as to attract clause (c) of Article 133(1) of the Constitution.

    37. We are not satisfied that there is sufficient ground for issuing a certificate as prayed for in each of these Leave Petitions under any of the provisions of law mentioned therein.

    38. In the view we have taken, there is no necessity for consolidating all the three Leave Petitions for the purpose of security deposit for costs and printing. We, therefore, dismiss S.G.L.P Nos. 94 to 96 of 1966 with costs in each. Advocate's fee Rs. 15 in each.

    39. Petitions dismissed.

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    C. Achiah v. P. Gopalakrishna Reddy And Others
    (Dec 13, 1966)