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2025 Supreme(HP) 1684

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
AJAY MOHAN GOEL, J.
The Chief Executive Officer, Cantonment Board Kasauli - Petitioner
Versus
Mohd Sultan Malik - Respondent 
CMPMO No. 419 of 2023
Decided On : 16-12-2025 

Advocate Appeared:
For the Petitioner:Mr. P.S. Goverdhan, Senior Advocate, with Mr. Rakesh Thakur, Advocate.
For the Respondent:M/s Mohinder Verma and Sumit Sharma, Advocates.

Judicial Magistrate under Section 324 of Cantonment Act has limited jurisdiction in lease rent arrears recovery; cannot examine validity of Board's unchallenged resolution modifying lockdown rent exemption from full to 50%, rendering contrary findings perverse.

Headnote:(A) Cantonment Act, 2006 - Section 324 - Recovery of arrears of lease rent - Judicial Magistrate's jurisdiction limited to taking action for recovery of due amount - Cannot adjudicate validity of Board's resolution modifying exemption from full to 50% rent waiver for lockdown period on humanitarian grounds - Resolution not assailed and demand per subsisting resolution - Magistrate's dismissal of application holding rollback unjustified is perverse and without jurisdiction - Application to be decided afresh considering pleadings and cited judgments. (Paras 10-14)

Facts of the case:
Petitioner filed application under Section 324 for recovery of 50% lease rent arrears for lockdown period after initial full exemption resolution was modified to 50% pursuant to direction of superior officer. Notice issued for payment but not complied with. Magistrate dismissed application observing subsequent rollback from full exemption unjustified.

Findings of Court:
Impugned order set aside; Magistrate directed to decide application afresh in light of observations.

Issues: Scope of Magistrate's jurisdiction under Section 324 in recovery proceedings; whether Magistrate could dismiss application by questioning justification of Board's exemption modification.

Ratio Decidendi: Magistrate under Section 324 exercises limited jurisdiction for recovery of arrears due per Board's subsisting unchallenged resolution; extraneous consideration of exemption policy validity beyond remit and perverse.

Result: Petition allowed.

Table of Content
1. petition challenges dismissal of s.324 rent recovery application. (Para 1 , 2)
2. board reduced full lockdown rent exemption to 50%. (Para 3 , 4 , 5 , 6)
3. arguments on s.324 applicability to lease rent arrears. (Para 7 , 8)
4. s.324 enables magistrate recovery of due rent. (Para 9 , 10)
5. magistrate lacks jurisdiction over board's exemption decisions. (Para 11 , 12 , 13)
6. order set aside; remanded for fresh adjudication. (Para 14 , 15)

JUDGMENT :

AJAY MOHAN GOEL , J.

By way of this petition, the petitioner has prayed for the following relief:-

“It is, therefore, very humbly prayed that impugned order dated 30.05.2023 (Annexure P-1), passed in case No.39/3 of 2023 titled as Chief Executive Officer Cantonment Board versus Mohd. Sultan Malik, by the learned Additional Chief Judicial Magistrate Kasauli, may please be ordered to be quashed and set aside and the Magistrate may be directed to recovery the arrear of lease rent in accordance with the mandate of Section 324 of the Cantonment Act, 2006 and Sections 421 and 422 of the Code of Criminal Procedure, in view of the submissions made hereinabove, in the interest of justice.”

2. The petitioner is aggrieved by the order passed by the Court of learned Chief Judicial Magistrate, Kasauli, in an application filed by the petitioner under Section 324 of the Cantonment Act, 2006, in terms whereof, the application of the petitioner has been dismissed.

3. Brief facts necessary for the adjudication of this petition are that the private respondent before this Court is running a shop on rent which belongs to the petitioner. Cantonment Board Kasauli vide CBR No.10 dated 11.05.2020 resolved to exempt full lease rent of stall holder for lockdown period w.e.f. 22.03.2020 to 17.05.2020. Later on, the Chief Officer, Commanding in Chief issued direction to the Cantonment Board, Kasauli on 11.05.2020 that exemption be modified to the effect that instead of full exemption, the same shall be exempted upto 50% of the rent from 22.03.220 to 17.05.2020.

4. Pursuant to the said direction of the Officer concerned, Cantonment Board Kasauli on 13.07.2021 again passed a resolution and granted exemption of 50% of rent from 22.03.2020 to 17.05.2020.

5. Thereafter, a notice was issued by the Cantonment Board to the present respondent on 12.07.2021 for the payment of arrears/rent.

6. As the needful was not done by the respondent, the Cantonment Board filed an application under Section 324 of the Cantonment Act to recover the said sum and in terms of the impugned order; said application has been dismissed by the learned Court below.

7. Learned Senior Counsel for the petitioner argued that the impugned order is per se perverse. He submitted that under Section 324 of the Cantonment Act, method of recovery of arrears of rent etc., is provided and as the petitioner had invoked this provision for the recovery of rent against the respondent and as the rent was admittedly due from the respondent to the petitioner, learned Court should have allowed the application. However, rather than doing the same, it went into the issue of the grant of exemption without having any jurisdiction to adjudicate upon the same. Learned Senior Counsel thus submitted that, as the impugned order was per se without jurisdiction, the same was liable to be set aside on this count.

8. On the other hand, learned counsel for the respondent has supported the order passed by the learned Trial Court and by referring to the judgment of the Hon’ble Supreme Court reported in AIR 1966 Supreme Court 108, titled Cantonment Board versus Pyare Lal, he argued that the arrears of rent due under a lease cannot be recovered by invoking the provisions of Section 324 of the Act. Learned counsel further submitted that the judgment of the Hon’ble Supreme Court was clear on this aspect of the matter and, in fact, Section 259 of the Old Act, (The Cantonments Act, 1924), was almost para materia with the provisions of Section 324 of the 2006 Act. Learned counsel

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