SUPREME COURT OF INDIA
13th September, 1961.
B.P. SINHA, C.J.I., P.B. GAJENDRAGADKAR AND RAGHUBAR DAYAL, JJ.
1. Dr. H. S. Rikhy (In C. A. No. 30 of 59), 2. Manohar Lal (In C. A. No. 31 of 59) and 3. Mr. P. Goyal (In C. A. No. 32 of 59), Appellants
Versus
The New Delhi Municipal Committee (In all the Appeals), Respondent.
Civil Appeals Nos. 30 to 32 of 1959.
Advocates appeared
Mr. M. C. Setalvad, Attorney General for India, (M/s. Anoop Singh and R. Gapalakrishnan, Advocates, with him), for Appellants (In all the Appeals), Mr. C. K. Daphtary, Solicitor-General of India, (Mr. B. Ganapathi Iyer, Advocate and Mr. G. Gopalakrishnan, Advocate of M/s. Gagrat and Co., with him), for Respondent (In all the Appeals).
Key Points: - The core issue is whether Section 8 of the Delhi and Ajmer Rent Control Act applies to the transactions in question between the appellants and the New Delhi Municipal Committee (!) . - The Court must determine if a landlord-tenant relationship exists between the parties as defined by the Act (!) (!) (!) . - The High Court held that no landlord-tenant relationship existed because there was no valid lease, and the doctrine of part performance was not attracted (!) . - The High Court relied on Section 47 of the Punjab Municipal Act for its conclusion that no valid lease existed (!) . - Appellants argued that the Transfer of Property Act does not apply, and a written Kabuliyat was sufficient, and that Section 47 of the Punjab Municipal Act was subject to the overriding provisions of Section 38 of the Delhi and Ajmer Rent Control Act (!) . - The respondent contended that a valid contract creating an interest in immovable property is essential for a landlord-tenant relationship, and Section 47 of the Punjab Municipal Act was not complied with (!) . - The definitions of landlord, premises, and tenant in the Act were examined (!) (!) (!) (!) . - The Court found that the Act applies only to lettings that create an interest in immovable property, establishing a landlord-tenant relationship (!) . - Section 47 of the Punjab Municipal Act mandates that contracts and transfers of immovable property by the Committee must be in writing, signed by specific members, and attested by the secretary to be binding (!) (!) (!) . - Non-compliance with Section 47 renders the contract or transfer not binding on the Committee, and such an agreement is considered void (!) (!) . - The Court held that the provisions of Section 47 of the Punjab Municipal Act are mandatory and not merely directory (!) (!) (!) . - The Court found no inconsistency between Section 47 of the Punjab Municipal Act and the Delhi and Ajmer Rent Control Act that would attract the overriding effect of Section 38 (!) . - A corporate or statutory body cannot be estopped from denying a contract it was legally disabled from making (!) . - The Court concluded that there was no landlord-tenant relationship and the applications under Section 8 were rightly dismissed (!) .
Judgment
SINHA, C.J.I. : The question for determination in these three appeals, on certificates of fitness granted by the High Court of Punjab under Art. 133 (1) (c) of the Constitution, is whether the provisions of S. 8 of the Delhi and Ajmer Rent Control Act (XXXVIII of 1952) (which hereinafter will be referred to as the Act) apply to the transactions in question between the appellants in each case and the New Delhi Municipal Committee (which for the sake of brevity we shall call the Committee in the course of this judgment).
2. It is necessary to state the following facts in order to bring out the nature and scope of the controversy. It is not necessary to refer in detail to the facts of each case separately for the purpose of these appeals. The Committee built in 1945 what is known as the Central Municipal Market Lodi Colony. This Market has 32 shops, with residential flats on 28 of them. In April 1945, the Committee, in pursuance of a resolution passed by it, invited tenders from intending bidders for those shops and premises. On receipt of tenders, the highest bidders were allotted various shops on rents varying from Rs. 135-8-0 to Rs. 520 per mensem. The allottees occupied the shops and the premises in accordance with the allotments made by the Committee and continued to pay the respective amounts which may be characterised as rents, without prejudice to our decision on the question whether it was legally a rent because as will presently appear, one of the controversies between the parties is whether it is rent within the meaning of the Act. Towards the end of 1952, 30 of the occupants filed applications under S. 8 of the Act praying for the fixation of standard rent in respect of the premises in their respective occupation. The Committee raised a preliminary objection to the maintainability of the aforesaid applications on the ground that there was no relationship of landlord and tenant between the applicants and the Committee, within the meaning of the Act. The Trial Court accordingly framed the following issue for determination in the first instance:
"Whether the relationship of tenant and landlord exists between the parties, therefore, those applications are competent and the Court has jurisdiction to fix the standard rent?"
The learned Subordinate Judge, who dealt with these cases in the first instance came to the conclusion that the several applicants were tenants within the meaning of the Act, and that therefore, the applications were competent. The Committee moved the High Court in its revisional jurisdiction, and the learned Chief Justice, sitting singly, referred those cases to be heard by a Division Bench, as they raised questions of general importance. The matter was thus heard by a Division Bench composed of G. D. Khosla and Dulat, JJ. The High Court, by its judgment dated April 25, 1956, set aside the aforesaid finding of the Trial Court, but made no order as to costs. The High Court in an elaborate judgment, on an examination of the relevant provisions of the Act, came to the conclusion that there was no relationship of landlord and tenant between the parties, inasmuch as there was no letting . there being no properly executed lease, and the doctrine of part performance was not attracted to the acts and circumstances of the case. For coming to the conclusion that there was no valid lease between the parties, the High Court relied upon the provisions of S. 47 of the Punjab Municipal Act (Punjab Act III of 1911). The High Court also negatived the contention that the Committee was estopped from questioning the status of the applicants as tenants, having all along admittedly accepted rent from them. The appellants moved the High Court and obtained the necessary certificates of fitness for coming up in appeal to this Court. The certificates of the High Court are dated October 28, 1957. That is how the matter has come before this Court.
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