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  • Section 28 of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947.
  • sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961
  • Section 111(g) of the Transfer of property Act
  • sub-section (1) of Section 21
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citation codes
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  • Section 28 of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947.
  • sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961
  • Section 111(g) of the Transfer of property Act
  • sub-section (1) of Section 21
Smart Summary

Factual and Procedural Background

This is a second appeal brought by the third defendant against the decree of the Additional Civil Judge, Gulbarga in Regular Appeal No. 95 of 1968, which had affirmed the decree of the Munsiff at Sedam in O.S. No. 28/1 of 1966.

The first respondent (plaintiff) instituted the suit on 3 June 1966 seeking a declaration that he is the owner of the suit house at Sedam, possession, and mesne profits at the rate of Rs. 10 per month from 1 April 1966 until realization. The plaintiff alleged that defendants 1 and 2 were original owners from whom he purchased the property, that the third defendant was a tenant under them, and that the third defendant forfeited tenancy rights by disclaiming the plaintiff's title and asserting title in himself; consequently the plaintiff treated the third defendant as a trespasser.

The third defendant contested the suit, denying the plaintiff's title and asserting title by adverse possession. The trial court (Munsiff) entered a decree for the plaintiff declaring his title and granting possession and mesne profits; that decree was affirmed by the learned Civil Judge on appeal. The third defendant challenged those concurrent decrees in this second appeal.

Legal Issues Presented

  1. Whether the bar in sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961 (prohibiting courts from making an order or decree for recovery of possession in favour of the landlord and against the tenant, except on specified grounds) prevents the Civil Court from passing a decree for possession in this suit.
  2. Whether the third defendant is a "tenant" within Section 3(r) of the Mysore Rent Control Act, 1961 for the purposes of applying the bar in Section 21(1).
  3. Whether the plaintiff is a "landlord" within Section 3(h) of the Mysore Rent Control Act, 1961 for the purposes of applying the bar in Section 21(1).

Arguments of the Parties

Appellant (Third Defendant) — Sri N. Santhosh Hegde

  • Contended that the decree for possession and mesne profits made by the courts below is contrary to law because sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961 bars a court from making an order or decree for recovery of possession in favour of a landlord against a tenant.
  • Argued that the bar in Section 21(1) should have been available to the third defendant and that the trial court improperly did not permit him to raise that contention.
  • Relied on the statutory definition of "tenant" in Section 3(r) and asserted that once the third defendant's adverse possession claim failed, he remained a person in possession after determination of tenancy and therefore a "tenant" within the Act.

Respondent (Plaintiff) — Sri J.S. Gunjal

  • Contended that the third defendant did not plead that he was in possession as a tenant, and therefore the bar in Section 21(1) of the Act was not attracted.
  • Noted that the third defendant had denied the plaintiff's title and asserted title in himself rather than claiming a tenancy.
  • Also relied on the distinction drawn from the Supreme Court decision in Raizada Topandas v. Gokakhram Gokalchand (AIR 1964 SC 1348) regarding the scope of statutory rent-control forum provisions, though the court in this opinion distinguished that authority for present purposes.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Raizada Topandas v. Gokakhram Gokalchand, A.I.R. 1964 Supreme Court 1348 The Supreme Court held that only when a suit, as framed, is by a landlord or tenant and the relief asked for arises out of the Rent Control Act (or its provisions), must the remedy be pursued before the Rent Control forum; for that purpose the averments in the plaint are decisive as to whether the statutory forum is the proper forum. The present Court distinguished this decision as not helpful: the Raizada case concerned the proper forum inquiry based on the plaint's averments, whereas the current question is whether a Civil Court, in a properly instituted suit, may in substance pass a decree for recovery of possession in favour of a landlord against a tenant despite the statutory bar in Section 21(1) of the Mysore Rent Control Act, 1961. The Court therefore did not apply Raizada to permit the possession decree here.

Court's Reasoning and Analysis

The court proceeded by identifying the statutory bar in the first part of sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961: an injunction that no order or decree for recovery of possession shall be made by any court or other authority in favour of a landlord against a tenant, subject to a proviso permitting recovery only on specified grounds where the proceeding is before the Court constituted under the Act.

The Court analysed whether the proviso applied and concluded it did not because the present proceeding was not an application for recovery of possession before the forum constituted under the Act on one of the specified grounds; this proceeding was a civil suit properly instituted in the Civil Court for declaration and possession. Therefore, the proviso could not be invoked to validate the decree for possession.

The decisive part of the analysis focused on whether the parties fell within the statutory categories of "tenant" and "landlord" for the purpose of attracting the bar in the first part of Section 21(1). The court applied the definitions in the Act: Section 3(r) (defining "tenant" to include a person continuing in possession after determination of tenancy) and Section 3(h) (defining "landlord" as a person receiving or entitled to receive rent).

The Court noted the findings of both courts below that the third defendant, though in possession, had failed to establish title by adverse possession and that the plaintiff's title had been established. Given those findings, the third defendant was treated as a person in possession after determination of tenancy and hence a "tenant" under Section 3(r); the plaintiff, having established title and thus being entitled to receive rent, was a "landlord" under Section 3(h). The Court concluded that all the statutory ingredients to attract the bar in the first part of Section 21(1) were present.

The Court therefore held that the courts below were not entitled to make a decree for recovery of possession in favour of the plaintiff and against the third defendant in view of Section 21(1). The Court addressed the Raizada precedent but distinguished it on the ground that that case concerned a different statutory provision and a different question (proper forum based on the plaint's averments) and did not decide the precise issue here.

Finally, having set aside the decree for possession, the Court considered a practical remedy and the submission of counsel that arrears of rent could be decreed from 1 April 1966 till the date of the decree at Rs. 10 per month. Both counsel agreed (the appellant's counsel did not object), and the Court accepted that approach subject to payment of the requisite court-fee by the plaintiff on the amount awarded.

Holding and Implications

HOLDING: The appeal is partly allowed. The Court held that the bar in sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961 prohibits the Civil Court from passing a decree for recovery of possession in favour of the plaintiff (landlord) against the third defendant (tenant) in the circumstances of this case.

The Court's direct orders were:

  • The decree for recovery of possession and mesne profits passed by the Courts below is set aside.
  • The declaration that the plaintiff is the owner of the suit property, as recorded by the Courts below, is confirmed.
  • There shall be a decree in favour of the plaintiff for arrears of rent from 1 April 1966 until the date of the decree at the rate of Rs. 10 per month, subject to the condition that the plaintiff pays the court-fee on the amount to which he is entitled.
  • No costs were awarded.

Implications: The decision's immediate consequence is to vacate the possession and mesne profits award while confirming title and granting an arrears-of-rent remedy. The opinion does not state that it establishes a new legal precedent beyond the resolution of the parties' rights in this case.

    Mohammed Qasim v. Mohammed Mainuddin And Others

    Malimath, J.:— This second appeal is by the third defendant against the decree passed by the Additional Civil Judge, Gulbarga in Regular Appeal No. 95 of 1968, affirming the decree passed by the Munsiff at Sedam in O.S No. 28/1 of 1966.

    2. The first respondent-plaintiff instituted the suit on the 3rd of June, 1966 for a declaration that he is the owner of the suit house situate at Sedam, for possession and mesne profits at the rate of Rs. 10 per month from the 1st of April till realisation. The case of the plaintiff is that defendants 1 and 2 were the original owners under whom the third defendant was a tenant. He purchased the suit property from defendants 1 and 2. But, defendant No. 3 forfeited his tenancy rights as he disclaimed the plaintiff's title and set up title in himself. The plaintiff has further averred that in these circumstances, the third defendant is in possession as a trespasser. It is on the basis of these averments that the plaintiff sought a decree for declaration of title, possession and mesne profits. The third defendant, who is the contesting defendant, set up title in himself and asserted that he has perfected his title by adverse possession. He denied the plaintiff's title. The Court of first instance made a decree in favour of the plaintiff, declaring his title and awarding possession and mesne profits, at the rate of Rs. 10 per month from the 1st of April, 1966. That decree having been affirmed on appeal by the learned Civil Judge, the third defendant has challenged the same in this second appeal.

    3. Sri N. Santhosh Hegde, learned Counsel appearing for the appellant, contended that the decree passed, for possession and mesne profits, by the Court below is contrary to law. It was contended that in view of the bar contained in sub-section (1) of Section 21 of the Mysore Rent Control Act, 1961 (hereafter referred to as the Act), no decree for possession could be passed in favour of the plaintiff and as against the third defendant. Such a contention was sought to be raised by the third defendant in the Court of first instance, but the Court of first instance did not permit the third defendant to raise such a contention. The first part of sub-section (1) of Section 21 of the Act in so far as it is material for the purpose of this case may be extracted as follows:

    “21. (1) Notwithstanding anything to the contrary contained in any other law or contract, no order or decree for the recovery of possession of any premises shall be made by any court or other authority in favour of the landlord against the tenant:

    Provided that the court may on an application made to it, make an order for the recovery of possession of a premises on one or more of the following grounds only, namely:—

    ………………………………..”

    The first part of sub-section (1) of Section 21 contains an injunction against the Courts or any other authority not to make a decree or order for possession in favour of the landlord and against the tenant for possession of any premises. It is not disputes that the Act applies to the suit premises which is situate at Sedam in the district of Gulbarga. The second part of sub-section (1) of Section 21 which is in the nature of a proviso states that the Court as defined in the Act may on application made to it make an order for recovery of possession of a premises only on one or more of the grounds stated therein. This is not a case to which the proviso to sub-section (1) of Section 21 is attracted, in as much as the proceeding out of which this second appeal arises is not an application for recovery of possession of the premises made to the Court constituted under the Act on any of the grounds mentioned in sub-section (1) of Section 21 of the Act. So far as the first part of sub-section (1) of Section 21 is concerned, the same has to be given effect to when the Court has to take a decree in favour of the landlord and against the tenant in respect of any premises to which the Act applies. As already mentioned, the premises is situate at Sedam to which the Act applies. The bar contained in sub-section (1) will be attracted when a decree for possession is required to be made in favour of the landlord and against the tenant. The first question for consideration, therefore is as to whether the third defendant is a tenant. The expression “tenant” has been defined in Section 3(r) of the Act which includes a person continuing in possession after the determination of the tenancy in his favour. The case of the landlord is that the third defendant was a tenant of the suit premises but that the said tenancy stood determined under Section 111(g) of the Transfer of property Act when he disclaimed the lessor's title and set up title in himself. Both the Courts below have held that though the third defendant is in possession, he has failed to establish that he has perfected his title to the suit property by adverse possession and that the plaintiff has title to the suit property. As a person in possession of the premises after the determination of the lease in his favour is also a tenant for the purpose of the Act, it has to be held that the third defendant is a tenant as defined in Section 3(r) of the Act. The other question to be examined is, as to whether the plaintiff is in the position of a landlord. The expression “landlord” has been defined in Section 3(h) of the Act to mean any person who is for the time being receiving or entitled to receive rent in respect of any premises. As the title of the plaintiff has been established, it follows that he is a person who is entitled to receive rent in respect of the premisesin Question. Hence, all the ingredients to attract the bar contained in the first part of sub-section (1) of Section 21 are satisfied. Hence, no decree for recovery of possession could be made in the suit in favour of the plaintiff who is the landlord and against the third defendant who is the tenant.

    4. The contention of Shri J.S Gunjal, learned Counsel appearing for the first respondent, is that as it was not the case of the third defendant that he is the tenant of suit premises, the bar contained in sub-section (1) of Section 21 is not attracted. It is, no doubt, true that the third defendant did not assert that he is in possession of the suit premises as a tenant. On the contrary, he set up title in himself and denied the title of the plaintiff. The bar contained in sub-section (1) is against the Court or other authority making a decree or order for recovery of possession in favour of the landlord and against the tenant. If the Court comes to the conclusion that it is required to make a decree in favour of the landlord and against the tenant in respect of a premises to which the Act applies, the bar contained in sub-section (1) gets attracted, whether or not the defendant has taken the plea that he is a tenant of the premises. Besides, it is necessary to note that in this case the third defendant did expressly seek permission of the Court to plead the bar contained in sub-section (1). The Court of first instance refused permission to the third defendant to take up such a contention. It cannot, therefore, be said that the contention which is now pressed by Sri Santhosh Hegde was not pressed in the Court of first instance. It may be mentioned that though in a different form, this contention was permitted to be pressed in the Lower Appellate Court.

    5. As the third defendant is a tenant of the premises to which the Act applies and the plaintiff is a landlord, the Courts below were not entitled to make a decree for recovery of possession in view of the bar contained in sub-section (1) of Section 21 of the Act.

    6. I may notice another contention of Sri Gunjal urged on the basis of the observations of the Supreme Court in Raizada Topandas v. Gokakhram Gokalchand(1), reported in A.I.R 1964 Supreme Court 1348. That was a case in which the Supreme Court was required to examine the scope and effect of Section 28 of the Bombay Rents, Hotels and Lodging House Rates Control Act, 1947. That was a case in which the plaintiffs instituted a suit in the City Civil Court, Bombay seeking a declaration that the defendants were not entitled to enter into or remain in possession of a certain shop in Greater Bombay and for a permanent injunction restraining them from entering the shop. The defence to the suit was that the relationship between the parties was not that of a licensee and licensee but that the shop had is fact been sub-let to them and that the agreement between the parties had been given the form of a licence only as a cloak to protest the plaintiffs from ejectment under the Act by its landlord on the ground of unlawful sub-letting. It was further contended that as they were really tenants, their landlords-plaintiffs were not entitled to institute the suit in the City Civil Court Bombay and that the proper remedy for them was only to approach the Rent Control Court under Section 28 of the Act. Their Lordships, repelling the contention of the defendants, held that it is only if the suit as framed is by a landlord or a tenant and the relief asked for is in the nature of claim which arises out of the Act or any of its provisions, then only and not otherwise, the proceedings have to be initiated under Section 28 of the Act. In other words, their Lordships came to the conclusion that for the purpose of adjudicating as to whether the plaintiffs had approached the proper form or not, what has to be looked into is the averments in the plaint. That decision is not of any assistance for deciding the point that arises for consideration in this case. The question as to whether the suit filed in the Court of first instance was proper or not is not a matter which arises for consideration in this case. The only question for consideration in this case, is as to whether in a suit properly instituted in the Civil Court a decree for recovery of possession could be made in favour of the landlord and against the tenant in view of the bar contained in sub-section (1) of Section 21. The question which has arisen for consideration in this case did not arise for decision before the Supreme Court. Hence, the said decision is not of any assistance for deciding the question involved in this case.

    7. Sri Gunjal lastly submitted, in the event of the decree for possession being set aside, a decree for recovery of rent from the 1st of April 1966 till the date of the decree could be made in this case instead of driving the plaintiff to another suit for that purpose. He submitted that if such a direction is given, the plaintiff is prepared to pay whatever court-fee he is liable to pay on the amount that the plaintiff may be held entitled to Sri Santhosh Hegde fairly submitted that he has no objection for a decree for arrears of rent being made in favour of the plaintiff from the 1st of April, 1966 till the date of the decree by this Court. Having regard to the circumstances, the request of Sri Gunjal deserves to be acceeded to.

    8. For the reasons stated above, this appeal is partly allowed. The decree for recovery of possession and mesne profits passed by the Courts below is set aside. The decree passed by the Courts below declaring that the plaintiff is the owner of the suit property is confirmed. There shall be a decree in favour of the plaintiff for arrears of rent from the 1st of April, 1966 till the date of the decree at the rate of Rs. 10 per month, subject to the condition that the plaintiff first respondent pays the court-fee on the amount to which he is entitled. No costs.

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    Mohammed Qasim v. Mohammed Mainuddin And Others
    (Jan 29, 1974)