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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Public Premises (Eviction of Unauthorised Occupants) Act of 1971
  • these Acts
  • Section 7 of the Act
  • Section 2(e) 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
Attorney(S)
Judges
Acts
  • Section 5, Public Premises (Eviction of Unauthorised Occupants) Act of 1971
  • these Acts
  • Section 7 of the Act
  • Section 2(e) of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The Union of India (Eastern Railway) owns a cinema building located at Mughal Sarai that contains an auditorium and allied equipment meant for the entertainment of railway personnel. In 1982 the Railway Administration entrusted management of the premises to the Railway Cinema Club. The Club, after inviting tenders, granted the appellant a five-year licence to screen feature films in the auditorium. When the licence expired, the Estate Officer of Eastern Railway initiated eviction proceedings under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (“the Act”), treating the appellant as an unauthorised occupant. The Estate Officer ordered eviction under § 5 of the Act. Successive challenges failed before the 6th Additional District Judge, Varanasi, and the High Court of Allahabad. The present civil appeal before the Supreme Court assails those concurrent decisions.

Legal Issues Presented

  1. Whether the Act can be invoked when the privity of contract is solely between the appellant and the Railway Cinema Club, both alleged to be private entities.
  2. Whether the cinema premises continued to be “public premises” within the meaning of § 2(e) of the Act after entrustment to the Railway Cinema Club, particularly in light of the expression “belonging to” the Central Government.
  3. Whether prior Supreme Court decisions concerning railway institute employees and public-premises legislation affect the Union of India’s right to use the Act for eviction.

Arguments of the Parties

Appellant’s Arguments

  • The licence agreement existed only between the appellant and the Railway Cinema Club; consequently, eviction had to be pursued under ordinary landlord-tenant law, not the Act.
  • Because operational control had been handed over to the Club, the premises no longer “belonged to” the Union of India within § 2(e); effective governmental control was allegedly absent.
  • Reliance was placed on (i) Raja Mohd. Amir Ahmad Khan for the construction of “belonging to,” (ii) All India Railway Institute Employees’ Assn. to show the Club’s independence, and (iii) Ashoka Marketing to contend the Government could not proceed as a private landlord.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Raja Mohd. Amir Ahmad Khan v. Municipal Board of Sitapur, AIR 1965 SC 1923 Meaning of the words “belonging to” in a legal document. The Court held the precedent inapposite; construing a contract is distinct from interpreting the statutory definition in § 2(e) of the Act.
All India Railway Institute Employees’ Assn. v. Union of India, (1990) 2 SCC 542 Employees of railway institutes/clubs are not railway employees. Found irrelevant to ownership of the premises; did not diminish the Union of India’s dominion over the property.
Ashoka Marketing Ltd. v. Punjab National Bank, (1990) 4 SCC 406 Central Government does not act as a private landlord; upheld validity of public-premises legislation. Distinguished; here the Government invoked the Act to remove an unauthorised occupant from public premises, not as an ordinary landlord.

Court's Reasoning and Analysis

The Supreme Court rejected every submission advanced by the appellant:

  • Continuing Dominion of the Union of India: The Court emphasised that the property indisputably “belongs to” the Union of India, and that entrustment of day-to-day management to the Club did not divest that dominion. Parliament deliberately used the term “belonging to,” not “owned by,” in § 2(e); hence ownership in the strict sense is unnecessary so long as governmental control subsists.
  • Statutory Interpretation of “Belonging to”: Contractual interpretations such as in Raja Mohd. Amir Ahmad Khan were deemed irrelevant to construing a statutory definition. The expression in § 2(e) must be read to include property over which the Union retains dominion, regardless of operational delegation.
  • Irrelevance of Employee-Status Case: The finding that institute employees are not railway employees does not touch the question of ownership or control of the premises; thus, All India Railway Institute Employees’ Assn. offered no assistance to the appellant.
  • Public-Premises Legislation Purpose: The reliance on Ashoka Marketing was misplaced. Far from acting as a private landlord, the Union was invoking the very statute intended to protect its public premises from unauthorised occupation.
  • Accordingly, the premises remained “public premises,” the Estate Officer had jurisdiction under the Act, and the eviction order was lawful.

Holding and Implications

HOLDING: The civil appeal is dismissed; the interim stay is vacated; no order as to costs.

Implications: The appellant’s eviction remains undisturbed, and ongoing proceedings under § 7 of the Act against the appellant continue unaffected. The decision reaffirms that Government property retains its character as “public premises” despite managerial delegation, but it does not establish new legal doctrine beyond application of existing statutory language.

    Naresh Kumar v. Vith Adj

    Order

    1. The short facts relating to civil appeal are as under : The 5th respondent, Union of India (Eastern Railway) owns a cinema building forming part of the civil appeal which is situated in Mughal Sarai. It has an auditorium and other equipments used for films for the entertainment of railway officers and employees. The management of the club building including auditorium, machinery etc. had been entrusted by the 5th respondent (Eastern Railway Administration) to the 3rd respondent (the Railway Cinema Club) in the year 1982. The auditorium of railway cinema was hired to in favour of the appellant for a period of 5 years for screening feature films. On expiry of this period the 2nd respondent, the estate officer, Eastern Railway, Mughal Sarai initiated proceedings for the eviction of the appellant that on expiry of the contract period he had become an unauthorised occupant. The proceedings were taken under the Public Premises (Eviction of Unauthorised Occupants) Act of 1971, hereinafter referred to as the ‘Act’. The estate officer directed eviction after observing due procedure under Section 5 of the Act. Aggrieved by that order of eviction an appeal was preferred to the first respondent (6th Additional District Judge, Varanasi). That appeal was dismissed. Thereafter the appellant challenged the same in Civil Misc. WP No. 15313 of 1988 before the High Court of Allahabad. The learned Single Judge dismissed the petition and upheld the order of eviction. Questioning the correctness of the said judgment the present civil appeal has been preferred. The learned counsel for the appellant raises the following points for our consideration:

    (1) Insofar as the privity of contract is between the appellant and the Railway Cinema Club it will be a contract between two private individuals. In such a case, for evicting the appellant the provisions of the Act cannot be invoked.

    (2) Section 2(e) of the Act defines public premises. When it says “belonging to” it should mean the Central Government must have control over the property. Where it has handed over the property to the Railway Cinema Club which alone had licensed the appellant, it cannot be said that the Government of India (the Railway administration) has control over the property. The meaning of the words “belonging to” had come up for discussion in Raja Mohammad Amir Ahmad Khan v. Municipal Board of Sitapur AIR 1965 SC 1923. Even though these words may not convey the meaning of ownership, yet Government must have effective control. This is fortified when the definition under Section 2(ii) in relation to company is looked at.

    2. In All India Rly. Institute Employees' Assn. v. Union of India (1990) 2 SCC 542, (1990) 13 ATC 691, AIR 1990 SC 952 this Court held the employees of such cinema houses are not employees of the Railway. It should follow that the Central Government will have nothing to do with the licence in favour of the appellant.

    3. In Ashoka Mktg. Ltd. v. Punjab National Bank (1990) 4 SCC 406 (On and 417, paras 6 and 9) in upholding the validity of these Acts this Court took the view that the Central Government will not behave as a private landlord. This is one of the grounds on which the validity was upheld.

    4. Hence the judgment under appeal cannot be sustained. It is true that the appellant had been evicted pursuant to the impugned judgment. Nevertheless these questions need to be gone into because there are proceedings against the appellant instituted by the Railway Club under Section 7 of the Act. Should the appellant succeed, the same will be rendered otiose.

    5. We have given our careful consideration to each of the submissions made above. We find not one of them tenable. We have already narrated the facts. If admittedly the property belongs to the Union of India, the Railway Cinema Club had been entrusted with the running of the cinema house together with the equipments. It found its running was not a profitable venture. Therefore, by inviting tenders, the offer of the appellant came to be accepted and that was how he became the licensee for a period of five years from 1982 from the Railway Club. After the expiry of the period, the estate officer invoked the provisions of the Act for evicting the appellant. We are clearly of the view that merely because the Railway Club invited tenders the property did not cease to belong to the Union of India (the Eastern Railway Department). It still had dominion over the property. Advisedly under Section 2(e) Parliament has used the words “belonging to” and not ownership. If, therefore, the Union of India has dominion over the property and if the said property had been entrusted to the Railway Club, by such mere entrustment it does not cease to belong to the Union of India. Therefore, the definition under Section 2(e) will apply.

    6. Raja Mohd. Amir Ahmed Khan v. Municipal Board of Sitapur AIR 1965 SC 1923 construed the words “belonging to” in a document while deciding the question whether the lessee had denied the title of the landlord. The construction of a document is wholly different from construing a statutory definition as under Section 2(e). Therefore, that case has no application.

    7. Merely because in All India Rly. Institute Employees' Assn. v. Union of India (1990) 2 SCC 542, (1990) 13 ATC 691, AIR 1990 SC 952 it was held by a Division Bench of this Court that the employees of railway institute and clubs are not railway employees, it does not follow that the property in dispute here does not belong to the Railways. That ruling again does not advance the case of the appellant.

    8. We are unable to see as to how the appellant could derive any assistance from Ashoka Mktg. Ltd. v. Punjab National Bank (1990) 4 SCC 406. This is not a case of the Union of India invoking the provisions as a private landlord would do. On the contrary, it is invoking the provisions of the Act to evict the appellant who is an unauthorised occupant from a public premises which belongs to it. For all these reasons, we dismiss the civil appeal. There shall be no order as to costs. Interim order for stay stands vacated.

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    Comments

    Naresh Kumar v. Vith Adj
    (Jan 18, 1995)