SUPREME COURT OF INDIA
D.A. DESAI AND A.P. SEN, JJ.
P.V. Shetty, Appellant
Versus
B.S.Giridhar, Respondent.
Civil Appeal No. 2650 of 1980
Decided on 31-10-1981.
Karnataka Rent Control Act 1961 – Tenant – Eviction – Fixation of Fair Rent - Respondent-landlord filed a suit for eviction on allegation that tenancy of appellant-tenant is determined and he is not entitled to Act 1961 - Prior to institution of this suit, appellant claiming to be a tenant on a monthly rent of Rs. 650/-, had filed an application before the Rent Controller for fixation of fair rent - Counsel on both sides agree that if fair rent is fixed in an amount exceeding Rs. 500/- per month such a tenant is not entitled to protection of Rent Act - If, on other hand, fair rent is fixed at Rs. 500/- or below per month and if other ingredients of expression tenant are satisfied, he will be entitled to protection of Rent Act - In suit filed by respondent-landlord subsequent to the filing of application for fixation of fair rent an application was moved for an interim stay of further proceedings in suit till disposal of application for fixation of fair rent, pending before learned Rent Controller - Held, On other, hand, if application for fixation of fair rent is allowed holding that appellant is a tenant as understood under Rent Act, and fair rent is Rs. 500/- or less per month he would be entitled to protection of Rent Act which determination will have impact on suit, subject, of course, to other contentions that may be raised in suit - Now it is an admitted position that application for fixation of fair rent preceded filing of this suit - Obviously, therefore just and fair approach, balancing the equities would be to stay further hearing of suit till application for fixation of fair rent is decided - But as Mr. Datar, learned counsel for respondent, voices a serious apprehension that in that event the suit may not be decided for years - That is a recurring phenomenon in our courts and we must guard against it - We accordingly direct that further proceedings in the suit filed by the respondent against the appellant be stayed - Order accordingly.
Key Points: - (!) The tenant/applicant filed an application before the Rent Controller for fixation of fair rent prior to the eviction suit. (!) - (!) There is an agreed position that if fair rent exceeds Rs. 500 per month, the tenant loses protection of the Rent Act; if Rs. 500 or below, protection may apply. (!) - (!) The court directed a stay of further proceedings in the eviction suit pending disposal of the fair rent fixation application, to balance equities. (!) - (!) The Rent Controller was directed to give top priority to the fair rent fixation application and decide it as early as possible (within four months). (!) - (!) The judgment notes concern that without stay, the eviction suit could proceed and render the fair rent fixation infructuous; with stay, delay concerns are acknowledged and addressed. (!) - (!) The appeal was disposed of with no order as to costs. (!) - (!) The decision emphasizes a "just and fair approach, balancing the equities" in handling concurrent proceedings. (!) - (!) The case reports that interim stay was warranted at interlocutory stage to prevent irreparable injustice. (!) - (!) The Rent Controller’s timely disposal of the fixation application is required "latest within four months from today." (!) - (!) The decision references that if the tenant is found to be protected, the eviction suit’s outcome may be affected accordingly. (!)
JUDGMENT :— Procedural wrangle has been brought to this Court, and that too at an interlocutory stage wherein this Court is most reluctant to interfere but this "hands off" attitude may cause irreparable injustice and that is the justification for interference. The respondent-landlord filed a suit for eviction on the allegation that tenancy of appellant-tenant is determined and he is not entitled to protection of Karnataka Rent Control Act 1961 (Rent Act for short). Prior to the institution of this suit, the appellant claiming to be a tenant on a monthly rent of Rs. 650/-, had filed an application before the Rent Controller for fixation of fair rent. Learned counsel on both sides agree that if fair rent is fixed in an amount exceeding Rs. 500/- per month such a tenant is not entitled to the protection of the Rent Act. If, on the other hand, fair rent is fixed at Rs. 500/- or below per month and if other ingredients of expression tenant are satisfied, he will be entitled to the protection of Rent Act. In the suit filed by the respondent-landlord subsequent to the filing of application for fixation of fair rent an application was moved for an interim stay of further proceedings in the suit till the disposal of the application for fixation of fair rent, pending before the learned Rent Controller. This application was rejected and a revision petition at instance of the appellant to the High Court failed and hence this appeal.
2. The very narration of facts in this case would show what should be the correct approach in this matter. If the stay of further proceedings in the suit, as prayed for by the appellant, is not granted and the suit proceeds and results in eviction, the application for fixation of fair rent becomes infructuous. On the other, hand, if the application for fixation of fair rent is allowed holding that the appellant is a tenant as understood under the Rent Act, and the fair rent is Rs. 500/- or less per month he would be entitled to the protection of the Rent Act which determination will have impact on the suit, subject, of course, to other contentions that may be raised in the suit. Now it is an admitted position that the application for fixation of fair rent preceded the filing of this suit. Obviously, therefore, the just and fair approach, balancing the equities would be to stay further hearing of the suit till the application for fixation of fair rent is decided. But as Mr. Datar, learned counsel for the respondent, voices a serious apprehension that in that event the suit may not be decided for years. That is a recurring phenomenon in our courts and we must guard against it.
3. We accordingly direct that further proceedings in the suit filed by the respondent against the appellant be stayed. The learned Rent Controller is directed to give top priority to the application for fixation of fair rent filed by the appellant against the respondent and dispose it of as early as possible, latest within four months from today. We dispose of the appeal accordingly with no order as to costs.
Order accordingly.
For Citation : AIR 1982 SC 83
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