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1962 Supreme(SC) 171

SUPREME COURT OF INDIA
18th April, 1962
B.P. SINHA, C.J.I., P.B. GAJENDRAGADKAR, K.N. WANCHOO, N. RAJAGOPALA AYYANGAR AND T.L. VENKATARAMA AYYAR, JJ.
M/s. Ram Lal Kapur and Sons (P) Ltd., Appellant
Versus
Ram Nath and others, Respondents.
Civil Appeal No. 476 of 1961
Advocates appeared
Mr. N. C. Chatterjee, Senior Advocate (M/s. Hardayal Hardy and N. N. Keswani, Advocates, with him), for Appellant; Mr. R. S. Narula, Advocate, for Respondents (Nos. 1 to 3)
Civil Misc. Petn. No. 71/D of 1954 D/- 5-1-1955 - Punj at Delhi.

Advocates:
Hardayal Hardy, N.C.CHATTERJI, N.N.KESHVANI, R.S.NARULA

Section 7A of the Delhi and Ajmer Rent Control Act is constitutional. Furthermore, special leave granted ex parte despite delay should not be revoked if no facts were suppressed and no lower court was bypassed, although notice to respondents is generally recommended before condoning such delays.

Headnote:(A) Delhi and Ajmer Rent Control Act, 1947 - Section 7A - Constitution of India - Article 14 - Validity of Section 7A - Section 7A of the Act is held to be valid and not violative of the fundamental right guaranteed by Article 14 of the Constitution. (Para 5)

(B) Civil Procedure - Special Leave - Condonation of delay - Revocation of leave - Special leave granted ex parte despite significant delay may not be revoked if there was no bypassing of the High Court, no suppression of material facts, and the grant of leave served to shorten proceedings. (Para 8)

(C) Procedure for Special Leave - It is suggested that delay in making an application for special leave should generally not be condoned ex parte; notice should be served on the respondent to provide an opportunity to resist the grant of leave. (Para 9)

Facts of the case:
A tenant applied for the fixation of fair rent under Section 7A of the Rent Control Act. The Rent Controller fixed the rent, which was upheld by the District Judge. The landlord challenged this in the High Court under Article 227. The High Court set aside the order, holding Section 7A unconstitutional based on a previous decision. The tenant subsequently sought special leave to appeal to the Supreme Court.

Findings of Court:
The Supreme Court had already upheld the validity of Section 7A in a related matter. Consequently, the High Court's decision based on the unconstitutionality of the section no longer subsists. Regarding the delay in the special leave application, the court found no grounds to revoke the leave as the appellant had not bypassed the High Court and had been transparent about the facts.

Issues: Whether Section 7A of the Rent Control Act is unconstitutional under Article 14 and whether special leave granted ex parte after a long delay should be revoked.

Ratio Decidendi: Section 7A of the Rent Control Act is valid. Special leave granted ex parte despite delay should not be revoked if it does not result in an injustice, does not bypass lower court remedies, and involves no suppression of facts. However, as a general rule, notice should be given to respondents before condoning such delays ex parte.

Result: Appeal allowed and case remanded.

Legal Category Hierarchy

  • constitutional law
    • fundamental rights
      • article 14 (Para 1, 5)
  • practice and procedure
    • civil procedure
      • special leave petition
        • condonation of delay (Para 7, 8, 9)
  • administrative law
    • rent control
      • rent fixation (Para 1, 2, 5, 10)

Table of Contents

1. Application for fair rent fixation under Section 7A of the Delhi and Ajmer Rent Control Act, 1947 — Challenge to the constitutionality of the provision. (Para 1 , 2 )

2. Challenge to the constitutionality of Section 7A of the Rent Control Act — Objection to the grant of special leave due to excessive delay. (Para 1 , 7 )

3. Section 7A is valid per precedent — Special leave was not improperly obtained as no facts were suppressed and it expedited the litigation process. (Para 5 , 6 , 8 )

4. Special leave granted ex parte is not revoked if there was no suppression of facts and the grant served to shorten the proceedings. (Para 8 )

5. Appeal allowed — High Court order set aside — Case remanded for consideration on the basis that Section 7A of the Rent Control Act is valid. (Para 10 )

6. Is Section 7A of the Delhi and Ajmer Rent Control Act, 1947 constitutional?

Yes, the Supreme Court held that Section 7A of the Act is valid and not violative of Article 14 of the Constitution. (Para 5 , 10 )

7. Under what circumstances should special leave granted ex parte be revoked?

Special leave should not be revoked if there was no suppression of relevant facts, the appellant did not bypass the High Court, and the grant of leave served to shorten the proceedings. (Para 8 )

8. What is the proper procedure for condoning delay in applications for special leave?

Except in rare cases, delay in making an application for special leave should not be condoned ex parte; notice should be served on the respondent to provide an opportunity to resist the grant of leave. (Para 9 )

Judgment

AYYANGAR, J. : This is an appeal by special leave against a judgment of a learned Single Judge of the Punjab High Court holding that S.7A of the Delhi and Ajmer Rent Control Act, 1947 (hereinafter called the Act) was unconstitutional as violative of the fundamental right guaranteed by Art.14 of the Constitution.

2. The first respondent Ram Nath owns a building in Delhi of which, among others the appellant-company was a tenant. The appellant moved the Rent Controller, Delhi, under S. 7A of the Act for fixation of the fair rent of the portion in its occupation. These proceedings had chequered history which it is not material to set out, but suffice it to say that the Rent Controller, Delhi, computed the fair rent for the entire building at Rs. 565/- p.m. and the fair rent payable by the appellant at Rs. 146/- per month. It is necessary to mention that under the Act the Rent Controller would have had jurisdiction to entertain the appellant s application for the fixation of fair rent and for so fixing it only if the construction of the building in question was completed after March 24, 1947, but if the construction of the building was completed earlier the ordinary, Civil Courts and not the Rent Controller would have had jurisdiction to determine the matter. The date of the completion of the first respondent s building therefore loomed large in the enquiry before the Rent Controller and that authority recorded a finding on this matter adverse to the first respondent in his order.

3. The landlord-first respondent preferred an appeal against the order of the Rent Controller to the learned District Judge, Delhi, but the appeal was dismissed. Thereafter he moved the High Court of the Punjab under Art. 227 of the Constitution challenging the correctness and propriety of every finding by the Rent Controller and of the District Judge on appeal. This petition came on for hearing before a learned Single Judge of the High Court. A Division Bench of the High Court had sometime previously held in another batch of cases ( British Medical Stores v. Bhagirath Mal , ((S) AIR 1955 Punj 5)) arising under the Act, that S. 7A was unconstitutional and void and following this decision he allowed the petition of the first respondent and set aside the order of the Rent Controller as without jurisdiction, without considering the other matters which would arise if the section was valid and the Rent Controller had jurisdiction. From this decision of learned Single Judge, the appellant preferred an appeal under the Letters Patent to a Division Bench.

4. Meanwhile the judgment in British Medical Stores v. Bhagirath Mal , Civil Appeals Nos. 172 to 186 of 1958 was brought up by way of appeal to this Court and as the appeal was getting ready to be heard, the appellants applied for and obtained special leave to appeal to this Court even during the pendency in the High Court, of the appeal by it under the Letters Patent. The Letters Patent appeal was thereafter withdrawn by the appellant.

5. The appeal in the British Medical Stores case was heard by this Court and the same was allowed by a judgment dated August 2, 1961 and this Court held reversing the judgment of the Punjab High Court that S. 7A of the Act was valid, Civil Appeals Nos. 172 to 186 of 1953

6. It would thus be seen that the only point which the learned Judge considered and on which the revision petition of the landlord - first respondent was allowed no longer subsists and hence the appellant is entitled to have the appeal allowed. As the learned Single Judge did not consider the other objections raised by the first respondent to the order of the Controller fixing the standard fair rent payable by the appellant, the appeal has to be remanded to the High Court for being dealt with according to law.

7. Before concluding it is necessary to advert to a preliminary objection to the hearing of the appeal raised by learned Counsel for the landlord-respondent. His submission was that the special leave whi






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