High Court Of Delhi
JIWAN DAS - Appellant
Versus
LIFE INSURANCE CORPORATION OF INDIA. - Respondent
Civil 10525 of 1983
Decided On : 09/28/1993
PUBLIC PREMISES (EVICTION OF UNAUTHORISED OCCUPANTS) ACT, 1971 - SECTION 2(G), 5(1) - TENANCY - TERMINATION - REASONABLENESS - PUBLIC INTEREST - ARTICLE 14 OF THE CONSTITUTION.
Fact of the Case:
The appellant was inducted as a tenant in 1949 on the ground floor of Bharat Building at 8, Darya Ganj, Delhi, on a monthly tenancy at a rent of Rs. 15.00 excluding electricity and water charges. Notice was issued to the appellant determining the tenancy of the T.P.A., and thereafter, action was initiated under section 5(1) of the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 (the Act) for eviction of the appellant from unauthorized occupation. The appellant filed a writ petition in the Delhi High Court, which was summarily dismissed. The appellant then filed an appeal by special leave.
Finding of the Court:
The Supreme Court held that the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 is constitutionally valid and retrospective. The Court further held that the Act confers power on the Estate Officer to issue notice to persons who are in unauthorized occupation of any public premises to show cause why an order of eviction should not be made. The Court also held that the definition of "public premises" and "unauthorized occupation" under the Act is wide and does not require the public authority to assign reasons for terminating the tenancy before initiating action for eviction.
Issues: 1. Whether the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 is constitutionally valid and retrospective? 2. Whether the Act confers power on the Estate Officer to issue notice to persons who are in unauthorized occupation of any public premises to show cause why an order of eviction should not be made? 3. Whether the definition of "public premises" and "unauthorized occupation" under the Act is wide and does not require the public authority to assign reasons for terminating the tenancy before initiating action for eviction?
Ratio Decidendi: 1. The Supreme Court held that the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 is constitutionally valid and retrospective, relying on its earlier decision in Hari Singh vs. Military Estate Officer (1973 1 SCR 515). 2. The Court held that the Act confers power on the Estate Officer to issue notice to persons who are in unauthorized occupation of any public premises to show cause why an order of eviction should not be made, as per the definition of "public premises" and "unauthorized occupation" under the Act. 3. The Court held that the definition of "public premises" and "unauthorized occupation" under the Act is wide and does not require the public authority to assign reasons for terminating the tenancy before initiating action for eviction.
Final Decision: The Supreme Court dismissed the appeal, holding that the appellant's contentions were devoid of any substance.
( 1 ) THE appellant was inducted in 1949 as a tenant on the ground floor admeasuring 408 sq. ft. of the premises known as Bharat Building at 8, Darya Ganj, Delhi OP a monthly tenancy at a rent of Rs. 15. 00 excluding electricity and water charges. Notice was issued to the appellant determining the tenancy of the T. P. A. and, thereafter, action was initiated u/s. 5 (1) of the Public Premises (E of U. O.) Act, 1971 (for short the Act ) for eviction of the appellant from unauthorised occupation. The appellant filed W. P. in Delhi High Court. The D B. summarily dismissed it on 28. 10. 83. Thus this appeal, by special leave.
( 2 ) SHRI R. K. Jain, learned Senior counsel for appellant contends that the respondent- Corporation being a public authority, before initiating the action u/s. 5 of the Act is enjoined to assign reasons which must be just and germane for the purpose of its exercise and its reasonabless must be tested on the touchstone of Art. 14 of the Constitution. He further contends that unless the public authority justifies its action taken u/s. 5 (1) of the Act before determining the tenancy u/s. 106 of the T. P. Act, it is violative of Art. 14 of the Constitution. We find no force in the contention. This Court in Hari Singh vs. Military Estate Officer 1973 1 SCR 515 by a bench of seven Judges upheld its constitutional validity and retrospectyvity and held :
"the scheme of the 1971 Act is that it confers power on Estate Officer to issue notice to persons who are in unauthorised occupation of any public premises to show cause why an order of eviction should not be made. unauthorised occupation under the Act in relation to any public premises means the occupation by any person of the public premises without authority for such occupation, and includes the continuance in occupation by any person of the public premises after the authority (whether by way of grant or any other mode of transfer) under which he was allowed to occupy the premises has expired or has been determined for any reason whatsoever. "
( 3 ) SIMILAR contention on the anvil of Art. 14 was raised on the ground that when the Delhi Rent Control Act provides remedy for ejectment on specific grounds and fixity of tenancy rights, giving blanket power to authorities under the Act is violative of Art. 14. In Ashoka Marketing Ltd. vs. Punjab National Bank (1990 (4) SCC 406) this court by a Constitution bench, in a slightly different connotation, dealt with the similar contention in para 68 and 69 of its judgment and held that the scope of the Public Premises Act cannot be cut down on the basic of the apprehension that the Corporations like the nationalised banks or LIC which are trading corporations and cannot be proscribed from buying the property in possession of the tenants at a low price and then evicting the tenants after terminating the tenancy and selling the property at a much higher value because the value of property in possession of tenants is much less as compared to vacant property. The consequence of giving overriding effect to the provisions of the Public Premises Act is that premises belonging to companies and statutory bodies referred to in clauses (2) and (3) of S. 2 (e) of the Act would be exempted from the provisions of the Rent Control Act. The actions of these companies and statutory bodies while dealing with their properties under the Act will not have to be judged by the standard that they would not act as private landlords and their actions would be infomed by reason and guided by public interest. Therefore, this Court had negatived the possibility of taking action against the tenants for letting out for higher rent or selling the property at a higher value.
( 4 ) SEC. 106 of the T. P. Act does indicate that the landlord is entitled to terminate the tenancy by giving 15 days notice, if it is a premises occupied on monthly tenancy and by giving a month s notice if the premises are occupied for agricultural or manufacturing purpo
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