2009(5) Supreme 430
SUPREME COURT OF INDIA
Tarun Chatterjee and H.L.Dattu, JJ.
Olympic Industries — Appellant
versus
Mulla Hussainy Bhai Mulla Akberally & Ors. — Respondents
Civil Appeal Nos. 4148-4149 of 2009
(Arising out of SLP) Nos.23661-23662 of 2007)
Decided on : 07-07-2009
Tamil Nadu Buildings (Lease and Rent) Control Act – Section 25 – Appeals against order of High Court rejecting application for permission to file additional counter statement – High Court rejected application on ground that a new plea was raised in the same in respect of which there was no slightest basis in the original counter statement filed by appellant – Held High Court erred in interfering with concurrent orders of Rent Control Tribunal, as no prejudice was caused to the respondents and even if some prejudice was caused that could be compensated by cost – Appellant had already stated in his application for acceptance of additional counter statement the reasons for taking such new plea, viz., he could trace out the lease deed pertaining to the lease only when he was cleaning the boxes – The respondents had also not disputed as to existence of lease deed only they were disputing filing of additional counter statement at such a belated stage – This being the position, held that even if examination of PW – 1 or his cross – examination was over, then also, it was open to court to accept additional counter statement filed by appellant by awarding some cost against the appellant – High Court was, therefore, not justified in rejecting application for permission to file additional counter statement as no prejudice could be caused to respondent which would otherwise be compensated in terms of cost. (Para 7)
Tamil Nadu Buildings (Lease and Rent) Control Act – Section 25 –Revisional Jurisdiction – It is well settled that the High Court in the exercise of its revisional jurisdiction under Section 25 of Act, could interfere with the concurrent orders of the tribunals below only if it finds that the findings of the tribunals below were either perverse or arbitrary, irregular or improper, but if the High Court finds that the findings of the tribunals below are based on correct application of the principles and in any way cannot be said to have acted illegally and with material irregularity, in that case it cannot be said that the High Court was entitled to interfere with the concurrent orders passed by the tribunals below in accepting the application for additional counter statement filed by the appellants – Held High Court was not justified to interfere with the concurrent orders of the tribunals below, as tribunals below, on consideration of counter statement as well as additional counter statement and application for fixation of rent and other materials on record, accepted the counter statement in its discretion and, therefore, it was not open to the High Court to interfere with the same in the absence of any perversity or arbitrariness in such findings of tribunals below. (Para 8)
(2007) 5 SCC 602 – Relied upon.
Facts of the Case :
Present Appeals have been filed against order of High Court rejecting application for permission to file additional counter statement. High Court rejected application on ground that appellant had filed a belated application for acceptance of an additional counter statement when examination of P.W.1 was already over.
Findings of the Court :
High Court in the exercise of its revisional jurisdiction under Section 25 of Act, could interfere with the concurrent orders of the tribunals below only if it finds that the findings of the tribunals below were either perverse or arbitrary, irregular or improper, but if the High Court finds that the findings of the tribunals below are based on correct application of the principles and in any way cannot be said to have acted illegally and with material irregularity, in that case it cannot be said that the High Court was entitled to interfere with the concurrent orders passed by the tribunals below in accepting the application for additional counter statement filed by the appellants. Held High Court was not justified to interfere with the concurrent orders of the tribunals below, as tribunals below, on consideration of counter statement as well as additional counter statement and application for fixation of rent and other materials on record, accepted the counter statement in its discretion and, therefore, it was not open to the High Court to interfere with the same in the absence of any perversity or arbitrariness in such findings of tribunals below.
Result : Appeals allowed.
JUDGMENT
Tarun Chatterjee, J.—
1. Leave granted.
2. These appeals are directed against the judgment and order dated 15th of February, 2007 passed by a learned Judge of the High Court of Judicature at Madras in CRP (NPD) No.207 of 2002 and CMP No.2249 of 2002, by which in the exercise of its revisional power, the High Court had rejected the application for permission to file additional counter statement.
3. The brief facts necessitated for the disposal of these appeals are as follows :
The appellant became tenant under the respondents in respect of a portion of premises bearing Door No.37, West Mada Church Street, Royapuram, Chennai-13 for non residential purposes at a monthly rental of Rs.750/-. Seeking fixation of fair rent at Rs.10,177/- per month, the landlord/respondents filed a petition before the XIIth Judge of the Small Causes Court at Chennai. The fair rent was sought for on the calculation of cost of construction of Madras Terraced Building (960 sq. ft) and Zinc Roofed Building (390 sq. ft) and market value of the land. In the said application for fixation of fair rent, the appellant filed his counter statement contending that the monthly rent of Rs.750/- being paid by the appellant was the fair rent and could be fixed as fair rent or alternatively to fix the fair rent according to the report of the Engineer appointed for that purpose.
4. Trial commenced and P.W.1 was examined. At this stage, the appellant filed an application seeking permission before the Rent Controller to file additional counter statement raising a plea that the appellant was the tenant of the land alone in respect of the portion of tenanted premises to the extent of about 600 sq. ft. In the additional counter statement, the appellant also raised a plea that the appellant-Olympic Industries is only a lessee of the land measuring about 5600 sq. ft. and lessee of the room measuring 400 sq. ft. in the main building.
5. This application for acceptance of additional counter statement was resisted by the respondents alleging that the additional counter statement containing new and inconsistent plea raised by the appellant at the belated stage, more particularly, after completion of examination of witnesses, could not be allowed as that it would cause serious prejudice to the respondents. The Rent Controller allowed the said application, inter alia, on a finding that opportunity must be given to the appellant to put forth his additional defence. Feeling aggrieved, the respondents preferred an appeal before the Appellate Authority which also accepted the additional counter statement, inter alia, on a finding that when the existence of the lease was admitted, the party, that is the appellant, can file such additional counter statement. The Appellate Authority also took the view while accepting the additional counter statement that the averments in the additional counter statement would not alter the position of the parties and that the respondents would have sufficient opportunity to challenge the averments in the additional counter statement. In revision, the High Court had set aside the concurrent orders of the Rent Control Authority and rejected the application for acceptance of additional counter statement filed by the appellant.
6. It is this order which is under challenge before us which, on grant of leave, was heard in the presence of the learned counsel for the parties.
7. Having heard the learned counsel for the parties and after going through the additional counter statement as well as the original counter statement and the application for fixation of fair rent and other materials on record, we are of the view that the High Court was not justified in interfering with the concurrent orders of the Rent Control Authorities in the exercise of its revisional power. A plain reading of the impugned order of the High Court would show that two grounds were given by the High Court to reject the application for acceptance of the additional counter statemen
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