Madras High Court
M. ANANTANARAYANAN,SRINIVASAN,NATESAN
Raval and Co. - Appellant
Versus
K.G.Ramachandran - Respondent
Decided On : 01/20/1966
The Madras Buildings (Lease and Rent Control) Act 18 of 1960, which regulates the letting of residential and non-residential buildings, and the control of rents of such buildings, and the prevention of unreasonable eviction of tenants, is a self-contained Code, with a special machinery of Rent Control Tribunals for applications for eviction and orders for eviction. The Act applies to all tenancies in respect of residential and non-residential buildings, which had been let out, both contractual and statutory. The Act enables any tenant or landlord, to which the Act applies, to apply for the fixation of fair rent. The Act also provides for the eviction of a tenant on certain grounds, including "willful default" in the payment of rent. The Act is a valid exercise of the legislative power of the State, and the restrictions imposed by the Act on the fundamental rights guaranteed to the landowner by Art. 19 (1) (f) are reasonable.
Fact of the Case:
None
Finding of the Court:
None
Issues: 1. Do the Madras Acts including of the latest Amending Act XI of 1964, enact a self-contained Code governing all relationships between landlords and tenants, during their subsistence, including contractual as well as statutory tenants, within their ambit? 2. In particular, do they enable landlords and tenants to obtain the determination of fair rents for buildings, even during contractual tenancies, and notwithstanding the contract of rent, to which the tenancies relate? 3. Similarly do they enable the landlords and tenants to work out their respective rights in the matter of the liability of the tenants for eviction on the grounds specified in the Acts, even during a contractual tenancy, and with out that tenancy being first determined by the landlord in accordance with S. 111 (h) of the Transfer of Property Act? 4. Can this interpretation be sustained, as a matter of legislative competence and legislative intendment, notwithstanding the absence of a non-obstante clause in the Acts?
Ratio Decidendi: 1. The Madras Buildings (Lease and Rent Control) Act 18 of 1960 is a self-contained Code, with a special machinery of Rent Control Tribunals for applications for eviction and orders for eviction. The Act applies to all tenancies in respect of residential and non-residential buildings, which had been let out, both contractual and statutory. 2. The Act enables any tenant or landlord, to which the Act applies, to apply for the fixation of fair rent. 3. The Act also provides for the eviction of a tenant on certain grounds, including "willful default" in the payment of rent. 4. The Act is a valid exercise of the legislative power of the State, and the restrictions imposed by the Act on the fundamental rights guaranteed to the landowner by Art. 19 (1) (f) are reasonable.
Final Decision: None
M. ANANTANARAYANAN, OFFG. C.J. :- W. P. No. 1124 of 1963 comes before us on a reference made by one of us (Srinivasan, J. ). It was a proceeding in prohibition, by Messrs Raval and Co (petitioners), seeking to restrain the respondents, including the Chief Rent Controller, Madras (4th respondent), from prosecuting or proceeding with a petition for the fixation of fair rent, under the Madras Rent Control Acts. Connected with this are two other proceedings, namely, C. R. P. 1816 of 1963 and Appn. No. 2443 of 1963 in C. S. 163 of 1962, in which certain clearly inter-linked questions are involved. Our learned brother (Srinivasan, J.) fell the difficulty that the catena of decisions of this Court as far as the Madras Rent Control Acts are concerned, has been only in the consistent directions that these Acts did purport to interfere with contractual tenancies, both as regards the fixation of fair rents and as regards the respective rights of landlords and tenants, in the matter of eviction and the grounds for eviction; while certain recent decisions of the Supreme Court, no doubt not upon the Madras Acts but upon similar enactments of other States, appear to justify the interpretation that the contractual tenancies should first be terminated by a notice under S. 111 (h) of the Transfer of Property Act, after which alone the procedure under the special Acts would become applicable, their object being to give this additional protection to what are termed "statutory tenancies".
2. This explains the reference, and, as the matter has been argued before us, the following questions emerge for our consideration:-
1. Do the Madras Acts including of the latest Amending Act XI of 1964, enact a self-contained Code governing all relationships between landlords and tenants, during their subsistence, including contractual as well as statutory tenants, within their ambit?
2. In particular, do they enable landlords and tenants to obtain the determination of fair rents for buildings, even during contractual tenancies, and notwithstanding the contract of rent, to which the tenancies relate?
3. Similarly do they enable the landlords and tenants to work out their respective rights in the matter of the liability of the tenants for eviction on the grounds specified in the Acts, even during a contractual tenancy, and with out that tenancy being first determined by the landlord in accordance with S. 111 (h) of the Transfer of Property Act?
4. Can this interpretation be sustained, as a matter of legislative competence and legislative intendment, notwithstanding the absence of a non-obstante clause in the Acts?
3. Apart from these questions, which are on the interpretation of the particular statute, two questions of their constitutional validity have also been raised before us. The first is that amending Act 11 of 1964, under which a ceiling in respect of non-residential tenements, namely Rs. 400 specified in S. 30 of Madras Act 18 of 1960, was done away with, and further section in the amending Act (S. 3) was introduced for the abatement of certain pending proceedings, is ultra vires, as offending Art, 14 of the Constitution, the argument is that both as a matter of legislative history and in the substantial sense, the amending enactment embodies a hostile discrimination against the landlords of non residential premises without a reasonable basis or objective.
On this aspect, even the bona fides of the amending enactment have been assailed, and it is contended that the enactment was hostile rushed through the legislature, without the salutary procedure of a reference to a Select Committee, and in a matter of one or two days, because the concerned Minister had a personal motive to obtain the benefit of the legislation. An interpretation of S. 3 of Madras Act 11 of 1964 also arises, particularly in connection with the facts in Appn No. 2443 of 1964 in C. S. 163 of 1962. The other constitutional point raised during the arguments relates to an alleged infringe
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