Back
SUPREME COURT OF INDIA
19th May 1959
S.K. DAS, A.K. SARKAR AND K. SUBBA RAO, JJ.
Associated Hotels of India Ltd., Appellant
Versus
R. N. Kapoor, Respondent.
Civil Appeal No. 38 of 1955.
Advocate Appeared
Mr. C. K. Daphtary, Solicitor General of India, and Mr. N. C. Chatterjee, Senior Advocate (M/s. S. N. Andley and J. B. Dadachanji, Advocates of M/s. Rajinder Narain and Co. with them), for Appellant.
– See decision in the case of Associated Hotels of India Ltd. v. R.N. Kapoor, AIR 1959 SC 1262; see also decision in Qudrat Ullah v. Municipal Board, AIR 1974 SC 396 = 1974(1) SCC 235.
Certainly. Based on the provided legal document, here are the key points summarized:
The agreement dated 1-5-1949 between the parties is classified as a lease, not a license, as it grants possession of the premises for a specified period and involves transfer of a leasehold interest (!) (!) .
The distinction between a lease and a license hinges on the substance and intention behind the agreement, with a lease conferring exclusive possession and an interest in the property, whereas a license merely grants permission without creating an interest (!) (!) (!) .
The agreement in question provides the respondent with exclusive possession of the rooms, with covenants typical of a lease, including payment obligations regardless of business activity, and restrictions on alterations, indicating a leasehold relationship (!) (!) .
The relevant statutory provisions distinguish between premises and rooms in a hotel, with the latter being specifically exempted from certain rent control regulations. The interpretation of what constitutes a "room in a hotel" is central to the application of rent control laws (!) (!) .
The term "hotel" is understood in its ordinary sense as a place providing lodging, food, or amenities for travelers or guests, with the scope of the exemption depending on whether the room is part of a hotel business and used for hotel purposes (!) (!) (!) .
The interpretation of "room in a hotel" involves assessing whether the room is part of a building used as a hotel and whether it is let out for purposes connected with hotel functions. A room solely used for a private business or for purposes unrelated to hotel services does not qualify as a room in a hotel (!) (!) (!) .
The purpose and context of the agreement, as well as the nature of the rights granted, are crucial in determining whether the agreement creates a lease or a license. An agreement that grants exclusive possession and includes typical lease covenants is indicative of a lease relationship (!) (!) .
The exemption clause for rooms in a hotel applies only when the room is part of a building operated as a hotel, providing amenities and services typical of such establishments. Rooms let out for non-hotel purposes, even if located within a hotel building, are not exempted (!) (!) .
The interpretation of statutory language should favor the plain and ordinary meaning unless there are compelling reasons to construe it otherwise. The phrase "a room in a hotel" is to be understood as any room within a building where the hotel business is conducted, provided it is used for hotel purposes (!) (!) .
The overall intent of the law is to regulate rents and evictions in premises intended for residential or commercial use, but it explicitly excludes rooms in hotels, lodges, and dharamshalas, unless they are used in connection with hotel activities (!) (!) .
The character and use of the premises, along with the agreement's terms and the nature of possession, are decisive factors in classifying the occupancy as either a lease or a license, which in turn affects the applicability of rent control provisions (!) (!) .
The final decision emphasizes that the rooms in question are not part of a hotel used for hotel purposes, and therefore, they are outside the scope of the rent control exemption, making the statutory provisions applicable (!) (!) .
Please let me know if you need further elaboration or assistance.
Judgement
S. K. DAS, J. : I have had the advantage and privilege of reading the judgments prepared by my learned brethren, Sarkar J. and Subba Rao J. I agree with my learned brother Subba Rao J., that the deed of 1-5-1949, is a lease and not a licence. I have nothing useful to add to what he has said on this part of the case of the appellant.
2. On the question of the true scope and effect of S. 2(b) of the Delhi and Ajmer-Merwara Rent Control Act, (19 of 1947) hereinafter called the Rent Control Act, I have reached the same conclusion as has been reached by my learned brother Sarkar, J., namely, that the rooms or spaces let out by the appellant to the respondent in the Imperial Hotel, New Delhi, were rooms in a hotel within the meaning of S. 2(b) of the Rent Control Act; therefore, that Act did not apply and the respondent was not entitled to ask for the determination of fair rent under its provisions. The reasons for which I have reached that conclusion are somewhat different from those of my learned brother, Sarkar, J., and it is, therefore, necessary that I should state the reasons in my own words.
3. I read first S. 2(b) of the Rent Control Act so far as it is relevant for our purpose :
"Section 2. In this Act, unless there is anything repugnant in the subject or context,
(a) ...... ..... ...... ...... ......
(b) premises means any building or part of a building which is, or is intended to be, let separately for use as a residence or for commercial use or for any other purpose.. . . . . . . but does not include a room in a dharamshala, hotel or lodging house."
The question before us is - what is the meaning of the expression a room in a hotel ? Does it merely mean a room which in a physical sense is within a building or part of a building used as a hotel; or does it mean something more, that is, the room itself is not only within a hotel in a physical sense but is let out to serve what are known as hotel purposes ? If a strictly literal construction is adopted, then a room in a hotel or dharamshala or lodging house means merely that the room is within, and part of, the building which is used as a hotel, dharamshala or lodging house. There may be a case where the entire building is not used as a hotel, dharamshala or lodging house, but only a part of it so used. In that event, the hotel, lodging house or dharamshala will be that part of the building only which is used as such, and any room therein will be a room in a hotel, dharamshala or lodging house. Rooms outside that part but in the same building will not be rooms in a hotel, dharamshala or lodging house. Take, however, a case where the room in question is within that part of the building which is used as a hotel, dharamshala or lodging house, but the room is let out for a purpose totally unconnected with that of the hotel, lodging house or dharamshala as the case may be. Will the room still be a room in a hotel, lodging house or dharamshala? That, I take it, is the question which we have to answer.
4. The word hotel is not defined in the Rent Control Act. It is defined in a cognate Act called the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bom. 57 of 47). The definition there says that a hotel or lodging house means a building or a part of a building where lodging with or without board or other service is provided for a monetary consideration. I do not pause here to decide whether that definition should be adopted for the purpose of interpreting S. 2(b) of the Rent Control Act. It is sufficient to state that in its ordinary connotation the word hotel means a house for entertaining strangers or travellers : a place where lodging is furnished to transient guests as well as one where both lodging and food or other amenities are furnished. It is worthy of note that in S. 2(b) of the Rent Control Act three different words are used hotel , dharamshala or lodging house . Obviously, the three words do not mean the same establishment. In the cognate Act
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
