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  • section 20(4) of U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
  • sub-section (1) of section 30,
  • U.P Rent Control Act,
  • Rent Control Act
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Citation Codes
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citation codes
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  • section 20(4) of U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
  • sub-section (1) of section 30,
  • U.P Rent Control Act,
  • Rent Control Act
Smart Summary

Judgment Summary — S.U. Khan, J.

Factual and Procedural Background

This writ petition challenges a revisional judgment. The petitioner (landlord) originally filed S.C.C. Suit No. 24 of 1987 against respondent No. 2 (tenant Uma Dutta Chaturvedi) for eviction on the ground of default and for recovery of arrears of rent. The Trial Court (J.S.C.C./Civil Judge, Kanpur Dehat) decreed the suit by judgment and decree dated 20.10.1992. The tenant filed S.C.C. Revision No. 4 of 1992. The Revisional Court (Vth A.D.J., Kanpur Dehat) allowed the revision on 27.10.1997, set aside the Trial Court's judgment and decree, and granted the tenant the benefit of section 20(4) of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972; the Revisional Court, however, permitted the landlord to withdraw the amount deposited by the tenant. The present writ petition is directed against that Revisional Court judgment and order.

The property in dispute is described as a ground-floor house with two big rooms, a verandah, three small rooms and an angan; the rent was Rs. 35 per month. The tenant pleaded that the petitioner was not the sole owner, asserting that ownership was shared (inherited after the father's death) by the petitioner and his brother and sister. The Trial Court held the suit maintainable; the Revisional Court reversed that finding, concluding that one co-owner (Kumari Kamini) was not joined and that notice and suit were therefore bad.

Relevant procedural chronology (as set out in the opinion): suit filed 24.12.1987; summons fixed 15.2.1988; defendant applied for copy of plaint on 29.3.1988 (and made similar applications subsequently); suit was dismissed in default on 2.7.1988 and restored on 2.3.1990; an order directed written statement to be filed by 27.4.1990; the tenant sought time on 28.4.1990 and again on 28.5.1990; ultimately the written statement was filed on 13.9.1990 and the tenant deposited the relevant amount on the same date (Trial Court records Rs. 3,200 deposited). Thereafter 16.10.1990 was fixed for final hearing and parties were directed to give evidence on 22.11.1990.

Legal Issues Presented

  1. Whether the Revisional Court was correct in holding the suit non-maintainable on the ground of non-joinder of a co-owner (Kumari Kamini).
  2. Whether the tenant was entitled to the benefit of section 20(4) of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 — in particular, whether the date on which the tenant deposited the rent/damages (after restoration of the suit) qualified as the 'first hearing' for the purposes of section 20(4).
  3. Whether the High Court, in dismissing the landlord's writ petition, could exercise its equitable jurisdiction (under Article 226 and related authorities) to enhance the rent payable by the tenant to a reasonable extent while sustaining the tenant's relief against eviction.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
India Umbrella Manufacturing Co. v. V. Bhagagabandei Agarwalla, 2004 55 ALR 98 (SC) One of the owners can institute suit for eviction; consent of other owners need not be shown. Relied upon to reject the Revisional Court's view that the suit was bad for non-joinder of a co-owner; used to hold that a single owner may maintain the suit.
Mohinder Prasad Jain v. Manohar Lal Jain, 2006 63 ALR 506 (SC) Same principle: a single owner may sue without showing consent of other owners. Applied alongside India Umbrella to support the conclusion that the suit was maintainable despite alleged co-ownership.
Subhash Chand Jain v. 1st Additional District and Sessions Judge, Saharanpur, 1989 2 SCC 110 If a suit is dismissed in default and later restored, no date before the dismissal can be treated as the 'first date of hearing' for the purposes of section 20(4). Applied to determine that dates prior to restoration could not be treated as the 'first hearing'—informing the court's conclusion on entitlement to section 20(4) benefit.
K.K. Gupta v. A.D.J., 2004 2 ARC 659 (Court's own authority) Where a written statement is filed with the permission of the court and taken on record, no date prior to filing of that written statement can be treated as the 'first hearing'. Used to support the position that, after restoration, the date the written statement was filed and taken on record (13.9.1990) should be treated as the earliest 'first hearing' date for section 20(4) purposes.
Khursheeda v. A.D.J., 2004 55 ALR 586 High Court, while granting or maintaining relief to a tenant under Rent Control Acts, is empowered to enhance rent to a reasonable extent. Relied on to justify enhancing the rent payable by the tenant while dismissing the landlord's writ petition and thereby maintaining tenant protection from eviction.
H.M. Kichlu v. A.D.J., 2004 57 ALR 485 Same principle as Khursheeda concerning enhancement of rent by the writ court. Applied to support the court's power to increase rent to a reasonable amount in the present case.
M.V. Acharya v. State of Maharashtra, 1998 2 SCC 1 (Malpe Vishwanath Acharya cited) It is essential to provide for periodical enhancement of rent under Rent Control Acts; frozen rents can produce social problems and lawlessness. Invoked to justify the principle that frozen rents are undesirable and to support the exercise of power to enhance rent reasonably.
Satyawati Sharma (dead) by LRs. v. Union of India, 2008 5 SCC 287 Reiterates that legislation reasonable at enactment may become arbitrary over time; Malpe Vishwanath Acharya's observations were followed regarding frozen/pegged rents. Followed as supporting authority for the court's approach that rent enhancement may be required in equity where statutory protection results in unreasonable, frozen rents.
Shangrila Food Products Ltd. v. Life Insurance Corporation of India, 1996 5 SCC 54 High Court's Article 226 jurisdiction permits taking entire facts into account to give complete and substantial justice; court can require a party to shed any unfair advantage gained prior to invocation of writ jurisdiction. Relied upon to justify asking the tenant to forgo the unfair advantage of an extremely low frozen rent by ordering a reasonable enhancement as a condition of sustaining tenant protection.

Court's Reasoning and Analysis

The court proceeded in two connected strands of analysis: (A) the maintainability and entitlement to section 20(4) relief; and (B) the exercise of equity to enhance rent.

A. Maintainability and Section 20(4) entitlement

  • The Revisional Court's conclusion that the suit was not maintainable because a co-owner was not joined was examined against higher authority. The court cited Supreme Court decisions (India Umbrella Manufacturing Co. and Mohinder Prasad Jain) to the effect that one owner can institute a suit for eviction and need not show consent of other owners. The court therefore found the Revisional Court's maintainability conclusion to be "utterly erroneous in law" and expressly held that the suit was maintainable.
  • On the crucial question whether the tenant was entitled to the benefit of section 20(4) of the U.P. Urban Buildings Act, the court analyzed the procedural chronology: the suit had been dismissed in default and later restored; after restoration the tenant filed the written statement on 13.9.1990 and made the deposit (recorded by the Trial Court as Rs. 3,200) on the same date. The court quoted the statutory definition of "first hearing" from section 20(4) and examined applicable authorities.
  • The court relied on Subhash Chand Jain (1989 2 SCC 110) for the proposition that if a suit is dismissed in default and later restored, no date prior to dismissal can be treated as the 'first date of hearing'. It also relied on its own earlier decision in K.K. Gupta that where a written statement is filed with the court's permission and taken on record, no earlier date can be treated as the first hearing. The court reasoned that until the written statement is filed and taken on record the Court cannot apply its mind to the controversy; therefore the date of filing of the written statement (13.9.1990) was the operative 'first hearing' date in this restored suit.
  • Given that the tenant had deposited the entire amount required under section 20(4) on 13.9.1990 (the date the written statement was filed and taken on record), the court concluded that the tenant was entitled to the benefit of section 20(4). Thus, although the court disagreed with the Revisional Court on maintainability, the writ petition had to be dismissed because the Revisional Court correctly held that the tenant had made the requisite deposit on the date of first hearing and hence qualified for protection under section 20(4).

B. Equity and Enhancement of Rent

  • While dismissing the writ petition, the court addressed the question of rent enhancement. It recalled earlier decisions (Khursheeda; H.M. Kichlu) in which it had held that a writ court is empowered to enhance rent to a reasonable extent when granting or maintaining relief to a tenant under Rent Control legislation.
  • The court relied on M.V. Acharya and Satyawati Sharma to underline the principle that prolonged freezing of rents can become irrational and lead to social harm, thereby supporting the court's equitable power to require adjustments. Shangrila Food Products Ltd. v. LIC (1996 5 SCC 54) was cited for the proposition that the High Court, under Article 226, may require a party to shed any unfair advantage previously gained when the court grants equitable relief.
  • Applying these principles to the facts (the property comprised multiple rooms and the existing rent of Rs. 35 per month was described as "virtually as well as actually no rent"), the court determined that equitable enhancement was appropriate.

Holding and Implications

Core Ruling: The writ petition is DISMISSED.

Direct implications and immediate effects:

  • The court expressly held that the Trial Court's suit was maintainable (rejecting the Revisional Court's non-joinder rationale), but despite that finding the writ petition fails because the Revisional Court correctly held that the tenant had deposited the requisite amount on the date treated as the first hearing and thus was entitled to section 20(4) protection.
  • The court exercised its equitable jurisdiction to enhance the rent: w.e.f. August 2008, the tenant is directed to pay rent at Rs. 1,000 per month (an increase from Rs. 35 per month). The landlord is directed to send a certified copy of the judgment to the tenant by registered post.
  • No statement in the opinion purports to lay down a novel binding precedent; rather the court applied existing Supreme Court and High Court authorities to the facts. The decision's practical effect is binding between the parties as to entitlement to section 20(4) relief in these circumstances and as to the court's exercise of equitable power to moderate the tenant's statutory advantage by reasonable enhancement of rent.

Order: Petition dismissed. (The opinion records that at the hearing respondent No. 2 tenant did not appear and only the petitioner's counsel addressed the Court.)

    Mahesh Chander Nigam v. Vth Additional District Judge, Kanpur Dehat

    S.U Khan, J.:— At the time of hearing no one appeared for the respondent No. 2 tenant, hence only the arguments of learned Counsel for the petitioner-landlord were heard.

    2. This is landlord's writ petition. Landlord filed S.C.C Suit No. 24 of 1987 against tenant respondent No. 2, Uma Dutta Chaturvedi for eviction on the ground of default and recovery of arrears of rent. Suit was decreed by J.S.C.C/Civil Judge, Kanpur Dehat through judgment and decree dated 20.10.1992 Against the said judgment and decree, tenant respondent No. 2 filed S.C.C Revision No. 4 of 1992. Vth A.D.J, Kanpur Dehat allowed the revision on 27.10.1997, set aside the judgment and decree of eviction passed by the Trial Court by granting benefit of section 20(4) of U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 to the tenant. However, Revisional Court permitted the landlord to withdraw the amount deposited by the tenant. This writ petition is directed against aforesaid Revisional Court's judgment and order.

    3. Property in dispute is a house situate on the ground floor, consisting of two big rooms, verandah, three small rooms and Angan, rent of which is Rs. 35/- per month.

    4. Tenant pleaded that petitioner was not the only landlord as house belonged to his father and after father's death, petitioner and his brother and sister also inherited the ownership. Trial Court held that suit was maintainable, however Revisional Court reversed the said point also. Revisional Court held that Kumari Kamini was also co-landlrod owner, hence notice as well as suit were bad as Kumari Kamini did not join with the petitioner in the notice and the suit. This view of the Revisional Court is utterly erroneous in law. Supreme Court in India Umbrella Manufacturing Co. v. V. Bhagagabandei Agarwalla . 2004 55 ALR 98 SC, and Mohinder Prasad Jain v. Manohar Lal Jain. . 2006 63 ALR 506 SC, has held that even one of the owners can institute suit for eviction against tenant and he need not show the consent of the other owners Kumari Kamini at no point of time stated that she did not support her brother, plaintiff in giving the notice and filing the suit.

    5. As far as question of benefit of section 20(4) of the Act is concerned, the following dates are relevant.

    6. Suit was filed on 24.12.1987 Summons were issued fixing 15.2.1988 On 29.3.1988, defendant filed application for supplying copy of the plaint. Similar applications were subsequently also filed by the tenant. On 2.7.1988, the suit was dismissed in default and was restored on 2.3.1990 Thereafter, an order was passed that written statement should be filed by 27.4.1990 On 28.4.1990, tenant sought one month's time to file written statement. Revisional Court held that as time for filing written statement was sought on 28.4.1990 and no complaint was made regarding non-receipt of copy of plaint, hence, it would be assumed that by that date, tenant had got the copy of the plaint. Further time to file written statement was sought on 28.5.1990, which was granted. Ultimately, written statement was filed on 13.9.1990, which was taken on record and thereafter 16.10.1990 was fixed for final hearing. The Trial Court has categorically held that deposit was made on 13.9.1990 (under issue No. 3, Trial Court has mentioned that Rs. 3,200/- was deposited). On 16.10.1990, an order was passed to the effect that parties should give their evidence on 22.11.1990 As tenant had deposited the entire required amount before the said date, hence he was entitled to the benefit of section 20(4) of the Act.

    7. Section 20(4) of the Act is quoted below:

    “20. Bar of suit for eviction of tenant except on specified grounds.—

    (1) …………………….

    (2) …………………….

    (3) …………………….

    (4) In any suit for eviction on the ground mentioned in Clause (a) of sub-section (2), if at the first hearing of the suit the tenant unconditionally pays or tenders to the landlord or deposits in Court the entire amount of rent and damages for use and occupation of the building due from him (such damages for use and occupation being calculated at the same rate as rent) together with interest thereon at the rate of nine per cent per annum and the landlord's costs of the suit in respect thereof, after deducting therefrom any amount already deposited by the tenant under sub-section (1) of section 30, the Court may, in lieu of passing a decree for eviction on that ground, pass an order relieving the tenant against his liability for eviction on that ground:

    Provided that nothing in this sub-section shall apply in relation to a tenant who or any member of whose family has built or has otherwise acquired in a vacant state, or has got vacated after acquisition, any residential building in the same city, municipality, notified area or town area.

    Explanation.—For the purposes of this sub-section:

    (a) the expression ‘first hearing’ means the first date for any step or proceeding mentioned in the summons served on the defendant;

    (b) the expression ‘cost of the suit’ includes one-half of the amount of Counsel's fee taxable for a contested suit.”

    8. The Supreme Court in Subhash Chand Jain v. 1st Additional District and Sessions Judge, Saharanpur . 1989 2 SCC 110, has held that if suit is dismissed in default and thereafter restored, then no date before dismissal of the suit can be taken to be first date of hearing.

    9. In K.K Gupta v. A.D.J . 2004 2 ARC 659., after discussing five authorities of the Supreme Court on the point, I have held that if written statement is filed with the permission of the Court and the same is taken on record, then no date prior to the date of filing of the written statement can be taken to be the date of first hearing.

    10. In the instant case after restoration of the suit, twice or thrice time was granted to the tenant to file written statement and ultimately written statement was filed on 13.9.1990 and on the same date deposit was also made. Until written statement is filed, Court cannot apply its mind to the controversy involved in the case, hence no date prior to the date of filing of written statement can be permitted to be first date of hearing provided that written statement is filed within extended time granted by the Court and with the permission of the Court.

    11. Accordingly, even though I do not agree with the view of the Revisional Court that suit was not maintainable and I expressly hold that suit was maintainable but writ petition is to be dismissed on the ground that Revisional Court rightly held that tenant had made the requisite deposit on the date of first hearing, hence he was entitled to the benefit of section 20(4) of the Act.

    12. Writ petition is accordingly dismissed.

    13. I have held in Khursheeda v. A.D.J . 2004 55 ALR 586. and H.M Kichlu v. A.D.J . 2004 57 ALR 485., that while granting relief against eviction to the tenant in respect of building covered by Rent Control Act or while maintaining the said relief already granted by the Courts below, Writ Court is empowered to enhance the rent to a reasonable extent.

    14. In the aforesaid authority of Khursheeda (supra), I placed reliance upon the Supreme Court authority of M.V Acharya v. State of Maharashtra . 1998 2 SCC 1, where it was held that it was essential to provide for periodical enhancement of rent under the Rent Control Acts. The Supreme Court has further held that frozen rents are giving rise to lawlessness and landlords out of frustration are approaching muscle man to get the premises vacated and Courts of law are becoming redundant in this sphere. This authority has recently been followed by the Supreme Court in Satyawati Sharma (dead) by LRs. v. Union of India . 2008 5 SCC 287, part of Para-29 and Para-34 of which are quoted below:

    “29. It is trite to say that legislation which may be quite reasonable and rationale at the time of its enactment may with the lapse of time and/or due to change of circumstances become arbitrary, unreasonable and violative of the doctrine of equity and even if the validity of such legislation may have been upheld at a given point of time, the Court may, in subsequent litigation, strike down the same if it is found that the rationale of classification has become non-existent.

    34. In Malpe Vishwanath Acharya v. State of Mahrashtra (supra) the Court found that the criteria for determination and fixation of rent by freezing or by pegging down of rent as on 1.9.1940 or as on first date of letting, had, with the passage of time become irrational and arbitrary but did not strike down the same on the ground that extended period of Bombay Rent Act and was coming to an end on 31.3.1998”

    15. Under U.P Rent Control Act, there is no provision of enhancement of rent after October, 1972 [Except where landlord is public charitable or public religious institution (section 9-A) or Government is tenant (section 21(8)]. In the aforesaid authority of Khursheeda, I have also placed reliance upon the authority of Supreme Court in Shangrila Food Products Ltd. v. Life Insurance Corporation of India . 1996 5 SCC 54, paragraph-11 of which is quoted below:

    “It is well-settled that the High Court in exercise of its jurisdiction under Article 226 of the Constitution can take cognizance of the entire facts and circumstances of the case and pass appropriate orders to give the parties complete and substantial justice. This jurisdiction of the High Court, being extraordinary, is normally exercisable keeping in mind the principles of equity. One of the ends of the equity is to promote honesty and fair play. If there be any unfair advantage gained by a party priorly, before invoking the jurisdiction of the High Court, the Court can take into account the unfair advantage gained and can require the party to shed the unfair gain before granting relief.”

    16. Thereafter in Para-8 of the aforesaid authority of Khursheeda, I held as under:

    “Rent Control Act confers a reasonable advantage upon the tenant of protection against arbitrary eviction. Tenant under the Rent Control Act cannot be evicted except on specific grounds like bona fide need of the landlord, arrears of rent, subletting and material alteration etc. This advantage is also coupled with the advantage of immunity from enhancement of rent. The latter advantage cannot be said to be either reasonable or equitable. The Supreme Court in the aforesaid authority of S.F.P v. L.I.C . 1996 5 SCC 54, has laid down that while granting relief to a party the Writ Court can very well ask the said party to shed the unfair advantage which it gained under the impugned order. By slightly extending the said doctrine it may safely be held that while granting the reasonable advantage to the tenant conferred upon him by the Rent Control Act the tenant may be asked to shed the un-reasonable arbitrary advantage conferred upon him by the said Rent Control Act. The Writ Court therefore while granting or maintaining the relief against arbitrary ejectment to the tenant can very well ask the tenant to shed the un-reasonable benefit of the Rent Control Act granted to him in the form of immunity against enhancement of rent, however inadequate the rent might be. Tenant will have to shed the undue advantage of immunity from enhancement of rent under the Rent Control Act to barter his protection from arbitrary eviction provided for by the said Act.”

    17. Therefore, in H.M Kitchlu v. A.D.J . 2004 57 ALR 485., I have held that the same principle of enhancement of rent to a reasonable extent may be made applicable while dismissing the writ petition of the landlord for the reason that by doing so Writ Court approves the protection of Rent Control Act granted to the tenant by the Courts below.

    18. Property in dispute is a house consisting of five big and small rooms and other amenities. Existing rent of Rs. 35/- per month is virtually as well as actually no rent.

    19. Accordingly, it is directed that w.e.f August, 2008 onwards tenant shall pay rent @ Rs. 1,000/- per month. Landlord is directed to send certified copy of this judgment to the tenant through registered post.

    Petition Dismissed.

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    Comments

    Mahesh Chander Nigam v. Vth Additional District Judge, Kanpur Dehat
    (Aug 11, 2008)