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1998 Supreme(SC) 1049

1998(8) Supreme 5
Supreme Court of India
(From Karnataka High Court)
M.M. Punchhi, CJI & G.B. Pattanaik & S. Rajendra Babu, JJ.
C.N. Rudramurthy etc. -Appellants
versus
K. Barkathulla Khan & Ors. etc. -Respondents
Civil Appeal No. 5039 of 1998
(Arising out of SLP (C) No. 6836 of 1998)
With
Civil Appeal No. 5040 of 1998
(Arising out of SLP (C) No. 4557 of 1998)
Decided on 8-10-1998
Counsel for the Parties :
For the Appellants : Rama Jois, Sr. Advocate, P.R. Ramesh, R.K. Khan­na, Surya Kant & Sushil Balwada, Advocates.
For the Respondents : S.K. Kulkarni, Advocate for Ms. Sangeeta Kumar, Advocate.

Important Point
Section 31 of the Karnataka Rent Control Act, 1961 is valid in view of D.C. Bhatia’s case (1986) 3 SCC 385.

Headnote:Karnataka Rent Control Act, 1961-Section 31-Rent Act not to apply to premises the rent p.m. of which was above 500/- -Declared invalid by Karnataka High Court despite contrary to Supreme Court’s observations in D.C. Bhatia’s case (1986) 3 SCC 385-Whether correct? (No)-Result-Appeal allowed-Trial Court’s order restored.

       Held : In D.C. Bhatia’s case (supra) this Court was concerned with a provision under the Delhi Rent Control Act and Section 3(c) made it clear that the Act was not applicable to any premises whether residen­tial or non-residential whose monthly rent exceeds three thousand rupees which is akin to the provision under Section 31 of the Karnata­ka Rent Control Act. In Shobha Surendar’s case the High Court had proceeded to rely upon Padmanabha Rao’s case; when the matter was brought to this Court though no specific reference was made to Padma­nabha Rao’s case, this Court stated that the law laid down in D.C. Bhatia’s case would be applica­ble, it was not open to the High Court to state that it would prefer to follow the decision in Rattan Arya’s case. Indeed it is a matter of judicial discipline that requires that when this Court states as to what the law on the matter is, the same shall be binding on all the courts within the territory of India. This mandate of Article 141 of the Constitution is not based on any doctrine of precedents, but is an impramatur to all courts that the law declared by this Court is binding on them. If that is so, it was not open to the High Court to consider the effect of the decisions in Rattan Arya’s case, its scope, what was decided therein and whether there could be any distinction between that decision and the decision rendered in D.C. Bhatia’s case. The clear pronouncement made by this Court in Shobha Surendar’s case was that D.C. Bhatia’s case was applicable with reference to Section 31 of the Karnataka Rent Control Act and, therefore, in view of that decision, the High Court’s decision was upset in another matter where the High Court had followed the Padmanabha Rao’s case. In effect, Padmanabha Rao’s case stood impliedly overruled. Thus, it was not at all open to the High Court to have tried to explain the decision of this Court and ought to have implicitly followed the decision of this Court. The law declared by this Court is clear that the D.C. Bhatia’s case was applicable to the provisions of Karnataka Rent Control Act. So it was not open to the learned Judge to take any other view in the matter. Thus we are of the view that the direction issued by the High Court to the parties to work out their remedies under the Rent Control Act is not at all correct. (Para 6)

       In the result, we are of the view that the decree passed by the trial Court is to be restored by setting aside the order made by the High Court and we order accordingly. The appeal, therefore, stands allowed. (Para 10)

       

Judgment

Rajendra Babu, J.-The appellant filed a suit against Bhaskaran, the original tenant in occupation of a premises bearing No. 199 and 200 situated at Brigade Road in Bangalore city for recovery of possession thereof on the ground that he had defaulted in payment of rent and had sublet the same contrary to law. The original tenant set up the de­fence that he had not sublet the suit premises or any portion thereof, but had only entered into an agreement to run business on his behalf and he was not liable to be evicted. The original tenant died on 8.1.1983 and his legal representatives were brought on record. They filed a written statement on 1.8.1984 contending that their father had parted with possession of the suit premises to respondent No. 1 and no decree could be passed against them. Respondent No. 1 was impleaded as a defendant on an application made by him. He contended that he had become a partner with Bhaskaran with the consent of the appellants and partnership stood dissolved as on 10.12.1982 and thus he was a tenant under the appellant directly. His tenancy had not been terminated and, therefore, there was no cause for suit. By a decree made on 31.3.1993, the City Civil Court directed the eviction of the first respondent. Respondent No. 1 preferred an appeal against the said decree in the High Court. This appeal is against that order made by the High Court of Karnataka in that appeal filed by Respondent No. 1.

2. In the High Court three principal points were formulated for con­sideration:-

(1) Whether the first respondent is a tenant? If not, what is his status?

(2) Whether the suit is maintainable for ejection of the first respondent?

(3) Whether the first respondent is entitled for mesne profits under Order XX Rule 10 of the CPC?

The first two points raised for consideration turned on the question whether the first res­pondent is a tenant or not? If he is a tenant, it was stated that the matter has necessarily to go before the Rent Control Court for eviction under Section 21 of the Karnataka Rent Control Act (hereinafter referred to as “the Act”). However, if the first respondent is declared to be a trespasser, he is liable for eviction by virtue of a decree in the suit. The courts below took the view that the first res­pondent is liable to pay rents or damages from 10.12.1982 and, therefore, they had no difficulty in answering the third point raised for consideration. What is really in issue before us are the first two points.

3. The High Court held that there is no acceptable evidence to declare the first res­pondent as a tenant and thereby affirmed the conclusion reached by the trial Court. After examining the scope of Section 23 of the Karnataka Rent Control Act which forbids creation of sub-lease or assignment or transfer either whole or any part of the demised prem­ises, the learned Judge was of the view that the original tenant allowed others to carry on the business in his name as he was unable to carry on the business by himself due to old age initially by in­ducting the first respondent as a partner of the firm and then in his own capacity as a owner of the business concern which was not an unknown mode of transfer of tenancy and, therefore, the first defendant was not a trespasser. He, however, noticed that the first respondent was not inducted with the consent of the landlord and therefore his possession becomes unlawful and he is liable to be evicted under the provisions of Section 21(1)(f) of the Karnataka Rent Control Act and no other conclusion was possible in this regard. In view of that finding he held that the Civil Court has no jurisdiction to pass an order of eviction as there is a specific provision ousting the jurisdiction of the Civil Court to entertain any suit for eviction of a tenanted premises. On that basis, he allowed the appeal and set aside the decree made by the trial Court and directed the parties to work out their remedies in

















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