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1977 Supreme(SC) 148

SUPREME COURT OF INDIA
V.R. KRISHNA IYER AND JASWANT SINGH, JJ.
Busching Schmitz Private Ltd., Appellants
Versus
P. T. Menghani and another, Respondents.
Civil Appeal No. 81 of 1977,
D/- 17-3-1977.
Advocates Appeared
Mr. F. S. Nariman, Sr. Advocate, (M/s. N. S. Sistani and K. C. Dua, Advocates with him), for Appellant; Mr. K. K. Jain, Mr. S. K. Jain and Mr. P. Dayal, Advocates, for Respondent No. 1.

Advocates:
F.S.NARIMAN, K.C.DUA, K.K.JAIN, N.S.SISTANI, P.Dayal, S.K.JAIN

Headnote:

Constitution Of India,1950 - Article 226 - Delhi Rent Control Act, 1958 - Section 25B- Public organizations and growing armies of employment - Claim for such compensation - Provisions just mentioned and construction that they bear in context necessitates stating a little more in detail social setting- seat of capital of a vast country with varied activities naturally will be honeycombed with government offices public organizations and growing armies of employees higher echelons in public service over decades have made generous use of availability of government lands at low prices and of knowhow of utilizing to their advantage immense developmental potential in years ahead if buildings were constructed with foresight- Thus many neatly organized colonies blossomed all around Delhi whose owners were in many intances officers who had telescopic faculty to see prospective spread out of Delhi of future- Taking time by forelock they wisely invested money (often on soft loans from Government in buildings which secured ambitious rents when Indias headquarters did as it was bound to explosively expand Most of such officials let their premises for high rents to big businessmen foreign establishments company executives and others of their like –Held, Case departing from ordinary meaning of words - If you examine all cases you will court think find that bottom it is because clause relieving a man from his own negligence is unreasonable or is being applied unreasonably in circumstances particular case judges have then time after time sanctioned a departure from ordinary meaning- Are courts then powerless - Are they permit party to enforce his unreasonable clause even when it unconscionable or applied so unreasonably as to be unconscionable - When it gets to this point court would say as court said many years ago - There is vigilance of common law which while allowing freedom of contract watches to see that it is not abused court agree that in words of Lord Erskine there is no branch of jurisdiction of this Court more delicate than that which goes to restrain exercise of a legal right- But principle of unconscionability clothes court with power to prevent its process being rendered a parody justice of law steps in and in area of eviction of a tenant by a landlord tribunal cannot tolerate double-dealing or thwarting real intendment statute possibility of power of government to issue orders to vacate being used discriminatorily should be carefully avoided- If exceptions are made in case of big officers naturally middling and lesser minions of government may have a grievance- It may perhaps be proper if government when allotting good premises for high officers who make from their own houses large returns by way of rentals makes them pay into government coffers some equitable part of gain so made giving consideration to circumstances like loans investments and like- This again is a matter falling within province of sense of justice of Administration- But court mention it only to save legislation from aspession of indiousness in exercise of power - Appeal dismissed

Judgment

KRISHNA IYER, J. - Delhi, the home of Power and the nidus of paradoxes, presents many pathological problems to the students of history, social science, politics and law, often interacting with each other. We are here concerned with the socio-legal malady of accommodation scarcity and the syndrome of long queues of government employees waiting, not knowing for how long, for allotment of government quarters at moderate rents and the co-existence of several well-to-do officers enjoying, by virtue of their office, State-allowed residential accommodation while owning their own but letting them out at lucrative rents, making substantial incomes in the bargain. The law awoke to end this unhappy development and to help the helpless nonallottees get government accommodation. Such is the back-drop to Section 14A which, read along with Section 25B, of the Delhi Rent Control Act, 1958 (Act LIX of 1958) (for short, the Act), falls for our consideration in the present appeal by special leave.

2. A deeper understanding of the need for the new provisions just mentioned and the construction that they bear in the context necessitates stating a little more in detail the social setting. The seat of the capital of a vast country with varied activities naturally will be honeycombed with government offices, public organisations and growing armies of employees. The higher echelons in public service, over the decades, have made generous use of the availability of government lands at low prices and of the know-how of utilising, to their advantage, the immense developmental potential in the years ahead if buildings were constructed with foresight. Thus many neatly organised colonies blossomed all around Delhi whose owners were in many instances officers who had the telescopic faculty to see the prospective spreadout of Delhi of the future. Taking time by the forelock they wisely invested money (often on soft loans from Government) in buildings which secured ambitious rents when Indias headquarters did, as it was bound to, explosively expand, Most of such officials let their premises for high rents to big businessmen, foreign establishments, company executives and others of their like.

3. Where did the officers themselves reside? The strange advantage of Delhi is that houses, with lawns, servants quarters and other amenities, built by government long years back are allotted to government servants on rents which are a fraction of what similar accommodation in the private sector may fetch. Oftentimes the bigger officials, according to the hierarchical system (almost perfected into some sort of officials castes and sub-castes based on status and position in the ministries and not on the needs of their families or office) occupied the classified quarters, the officials brahmins, of course, getting the best. The rents they paid as tenants were negligible compared to the returns they made as landlords. Indeed, a sociological research into the whole system may perhaps unravel the semi-survival of quasi-feudal life-styles and the unlovely phenomenon of public servants paying little and collecting large.

4. The socio-economic sequel was worse than this. An astronomical increase in the number of government servants led to a terrific pressure for accommodation because, most of them-particularly at the lesser levels - had no worthwhile salaries and were priced out of the private sector where rentals had unconscionably rocketed. This rack-renting abuse can be checked, in some measure, by an activist policy of relentlessly enforcing fair rents through penal tags. That, of course, depends on the will and wisdom of Parliament and Government, and the court may not, make any comment. Anyway, currently, controls in this essential area of human accommodation, in the capital city of our socialist republic, are a statute-book virtue. Similarly, the suggestion, made by counsel for the appellants, that the true solution is for the State to build more accommodation for its































































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