2000 Supreme(SC) 809
SUPREME COURT OF INDIA
S.N.Phukan : V.N.Khare
Mitter Sen Jain
Versus
Shakuntala Devi
Case No. : 6676 of 1999
Date of Decision : 4/19/00
Inclusion of a rural area as an 'urban area' under the Municipal Corporation Act does not automatically trigger the applicability of the Rent Control Act; a separate, specific notification under the Rent Control Act is required to include the area in its Schedule.
Headnote:(A) Rent Control Act, 1958 - Section 1(2) - Municipal Corporation Act - Section 507 - Applicability of Rent Control Act to newly declared urban areas - Inclusion of a rural area into an urban area by notification under the Municipal Corporation Act does not automatically extend the operation of the Rent Control Act to such area - A further specific notification is required under the proviso to Section 1(2) of the Rent Control Act to specify the area within the Schedule for the provisions of the Act to be enforceable. (Para 3)
Facts of the case:
A tenant was served a notice of termination of tenancy under the Transfer of Property Act, followed by a suit for ejectment and recovery of rent and mesne profits. The tenant contended that the premises were covered under the applicable Rent Control Act, rendering the suit in civil court non-maintainable. The lower courts held that the premises were not covered by the Rent Control Act.
Findings of Court:
The court found that although the area where the property is situated was declared an urban area under the Municipal Corporation Act, no subsequent notification had been issued under the Rent Control Act to include said area in the Schedule of that Act. Therefore, the protections of the Rent Control Act cannot be enforced in that area.
Issues: Whether the inclusion of a rural area into an urban area via notification under the Municipal Corporation Act ipso facto makes the Rent Control Act applicable to that area.
Ratio Decidendi: The court ruled that for the Rent Control Act to apply to an area, it must be specified in the Schedule. Even if an area is classified as urban under the Municipal Corporation Act, a separate notification under the proviso to Section 1(2) of the Rent Control Act is mandatory to extend the Act's operation to that specific area. (Para 3)
Result: The appeal fails and is dismissed accordingly.
(1) THE appellant herein is a tenant of the premises situated at Sagarpur in Delhi, whereas the respondent is the landlord. The landlord let out the premises to the appellant on a monthly rent of Rs. 400.00 per month. Subsequently, the landlord terminated the tenancy by giving notice under Section 106 of the Transfer of Property Act. The landlord thereafter brought a suit for ejectment of the tenant as well as for recovery of arrears of rent and mesne profit. Before the trial court the tenant filed a written statement wherein one of the pleas taken was that the premises which was let out to him was covered by the Delhi Rent Control Act, 1958 and as such the suit is not maintainable. The trial court held that the premises was not covered by the Delhi Rent Control Act, 1958. Consequently, the suit was decreed. First appeal was preferred to the learned District Judge, which was dismissed. Thereafter the appellant filed a second appeal before the High Court and the same was also dismissed. It is in this way the appellant is before us in appeal.
(2) THE only argument raised on behalf of the appellant is that since the premises of which the appellant is a tenant is covered by the Delhi Rent Control Act and therefore the suit filed by the landlord in civil court was not maintainable and decree passed therein is void ab initio. In order to appreciate the argument it is worthwhile to extract the relevant provisions of the Delhi Municipal Corporation Act as well as the Delhi Rent Control Act, which are as follows:
SECTION 507 of the Delhi Municipal Corporation Act "507. (a) the Corporation with the previous approval of the Government, may, by notification in the Official Gazette, declare that any portion of the rural areas shall cease to be included therein and upon the issue of such notification that portion shall be included in and form part of the urban areas;"
Sub-section (2) of Section 1 of the Delhi Rent Control Act
"1. (2) It extends to the areas included within the limits of the New Delhi Municipal Committee and the Delhi Cantonment Board and to such urban areas within the limits of the Municipal Corporation of Delhi as are specified in the First Schedule: Provided that the Central Government may, by notification in the Official Gazette, extend this Act or any provision thereof, to any other urban area included within the limits of the Municipal Corporation of Delhi or exclude any area from the operation of this Act or any provision thereof."
(3) SUBSEQUENTLY, by a notification dated 24/10/1994 issued under Section 507 of the Delhi Municipal Corporation Act, the rural area falling under Sagarpur where the property in dispute is situate was included within the urban area of Delhi Municipal Corporation. It is on the strength of this notification, learned counsel urged that once the area has been included as urban area within the Delhi Municipal Corporation ipso facto, the Delhi Rent Control Act shall be applicable. The argument is totally misconceived. Even if any new area is included within the urban area of Municipal Corporation of Delhi, a further notification is required to be issued under the proviso to subsection (2) of Section 1 of the Delhi Rent Control Act. Unless the area is so specified in the Schedule by a notification, the provisions of the Delhi Rent Control Act cannot be made applicable to that area. It is admitted that no notification has yet been issued under the proviso to sub-section (2) of Section 1 of the Delhi Rent Control Act specifying Sagarpur area within the Schedule of the Act. In the absence of such a notification, the provisions of the Delhi Rent Control Act cannot be enforced in the area, namely, Sagarpur.
(4) NO other point was pressed. The appeal fails and is dismissed accordingly. No costs.
(5) HOWEVER, the appellant shall not be evicted from the premises in dispute till 31/12/2000 provided he files the usual undertaking within four weeks. He shall deposit the arrears of rent