1998 Supreme(P&H) 611
PUNJAB & HARYANA HIGH COURT
V.K.Bali and M.L.Singhal JJ.
Junaid Ali Khan
Versus
State Of Punjab
Civil Writ Petition No. 17069 of 1997,
Decided On : APRIL 28, 1998
The State Government has the power to exempt particular buildings or classes of buildings and rented lands from the East Punjab Urban Rent Restriction Act, 1949, under Section 3 of the Act, but this power cannot be extended to all buildings and rented lands within the entire urban area, as this would render the Act nugatory.
Headnote:
EAST PUNJAB URBAN RENT RESTRICTION ACT, 1949 - Sec. 3 - Notification exempting buildings and rented lands in Mohali from the Act's applicability - Validity - Retrospective effect - Interpretation.
Fact of the Case:
Petitioners, tenants in commercial and residential buildings in Mohali, challenged the constitutionality of a notification exempting buildings and rented lands in Mohali from the East Punjab Urban Rent Restriction Act, 1949, for a period of 5 years from 1-4-1995 to 31-3-2000. They argued that the notification was illegal, unjust, and beyond the jurisdiction of the State Government, as it negated the Act's applicability to the entire urban area.
Finding of the Court:
The Court held that the notification was valid and that the State Government had the power to exempt particular buildings or classes of buildings and rented lands from the Act's provisions. However, the Court clarified that the exemption could not be extended to all buildings and rented lands within the entire urban area, as this would render the Act nugatory.
Issues: 1. Whether the notification exempting buildings and rented lands in Mohali from the East Punjab Urban Rent Restriction Act, 1949, was valid? 2. Whether the State Government had the power to issue such a notification with retrospective effect?
Ratio Decidendi: 1. The Court held that the State Government had the power to exempt particular buildings or classes of buildings and rented lands from the Act's provisions under Section 3 of the Act. However, this power could not be extended to all buildings and rented lands within the entire urban area, as this would render the Act nugatory. 2. The Court held that the notification could apply to pending proceedings as well, as it was issued under Section 3 of the Act, which allowed for such exemptions.
Final Decision: The Court dismissed the writ petition, upholding the validity of the notification exempting buildings and rented lands in Mohali from the East Punjab Urban Rent Restriction Act, 1949.
M.L.SINGHAL, J.
1. Vide notification Annexure P-2 dated 21-2-1997, the Governor of Punjab in exercise of powers conferred by Sec. 3 of the East Punjab Urban Rent Restriction Act, 1949 (East Punjab Act No. 3 of 1949) read with Section 71 of the Punjab Municipal Act, 1911 (Act No. III of 1911) and all other powers enabling him in this behalf directed that the provisions of the said Act shall not apply to the buildings and rented lands situated in the urban area administered by the Municipal Council, Sahibzada Ajit Singh Nagar, (Mohali), for another period of 5 years with effect from 1-4-1995 to 31-3-2000. This notification was published in the Punjab Government Gazette Extraordinary on 6-3-1997. Petitioners are tenants in the commercial and residential buildings owned and possessed by respondents Nos. 2 to 6. Respondents Nos. 2 to 6 filed suits for possession against them after the termination of their tenancy in terms of Sec. 106 of the Transfer of Property Act. Said suits are pending adjudication at different stages, as for instance suit for possession filed against Paul Mohinder Singh by Taranjeet Singh is pending in the Court of Sub Judge, Kharar. Suit for possession filed against Rajinder Singh by Lt. Col. Devinder Singh is pending in the Court of Balbir Singh, Sub Judge, Kharar. In suit for possession filed against Junaid Ali Khan by Avtar Singh, RSA No. 2807 of 1997 is pending in the Court. Similarly in suit for possession filed against K. K. Nayar by Amarjeet Singh RSA No. 3243 of 1996 is pending in the High Court. In suit for possession filed against Kehar Singh by Pushpinder Singh. RSA No. 3295 of 1997 is pending in this Court. Petitioners are challenging the constitutionality of notification Annexure P-2 exempting the buildings and rented lands situated in the urban area of Municipal Council, Mohali for a period of 5 years from 1-4-1995 to 31-3-2000. It is alleged that this notification is in partial modification of the earlier notification dated 9-2-1984 exempting buildings and rented lands situated in the urban area of Mohali for the period 21-12-1983 to 31-3-1995. East Punjab Urban Rent Restriction Act, 1949 was enacted to restrain the increase of rent of certain premises situated within the limits of urban area and eviction of the tenants therefrom. This Act was enacted in view of the shortage of the houses and high rent being charged by the landlords.
2. The rent control legislation in these circumstances is a social legislation enacted for the benefit of tenants so that they are not fleeced by the landlords out of proportion. It was designed to protect the tenants from eviction by the landlords on frivolous and inadequate grounds. It was enacted with a view to remove the evil of exploitation of landlords in view of scarcity of accommodation and to curb the process of eviction of tenants with a view only to increase the rent. Keeping in view the growth of the area, Notified Area Committee was constituted at Mohali on 28-12-1983 under Sec. 241 of the Punjab Municipal Act, 1911.Notified area is the area which is a town as yet not satisfying the requirements of municipality as contemplated under Sec. 3 (9) of the Punjab Municipal Act. Consequent to 74th Constitution amendment the Punjab Municipal Act, 1911 was amended by Punjab Act No. 11 of 1994. Consequent to such amendment notified area of Mohali was classified as smaller urban area and a Class-I Municipal Council was constituted as per schedule III attached to the Punjab Municipal Act in terms of Sec. 4 (6) of the Punjab Municipal Act (as amended). Therefore the area of Mohali is administered by the Municipal Council. Mohali is well established urban area governed by the Punjab Municipal Act, 1911 as amended. The East Punjab Urban Rent Restriction Act became applicable to the urban area of Mohali upon after the Notified Area Committee was constituted in the year, 1983. In spite of the applicability of the East Punjab Urban Rent Restriction Act to urban a