Allahbad High Court
S.N.KATJU,S.D.KHARE,G.C.MATHUR,H.N.SETH,M.H.HUSSAIN
Prem Prakash Virmani - Appellant
Versus
State Government - Respondent
Decided On : 04/07/1970
ALLOTMENT OF ACCOMMODATION - STATE GOVERNMENT'S ROLE - QUASI-JUDICIAL - REASONS FOR ORDER - NECESSITY.
Fact of the Case:
The case involved two questions referred to the Full Bench for opinion: (1) whether the State Government acts as a quasi-judicial authority when deciding a case relating to the allotment of an accommodation; and (2) whether the State Government is bound to give reasons for its order in a case for the allotment of accommodation.
Finding of the Court:
The Full Bench, by majority, held that: (1) the State Government acts as a quasi-judicial authority when deciding a case under Section 7-F of the U. P. (Temporary) Control of Rent and Eviction Act relating to the allotment of an accommodation; and (2) the State Government is bound to give reasons for its order under Section 7-F of the U. P. (Temporary) Control of Rent and Eviction Act in a case for the allotment of an accommodation.
Issues: 1. Whether the State Government acts as a quasi-judicial authority when deciding a case relating to the allotment of an accommodation? 2. Whether the State Government is bound to give reasons for its order in a case for the allotment of accommodation?
Ratio Decidendi: 1. The State Government's power under Section 7-F is a supervisory or appellate power to cancel, modify, or affirm an order of allotment made in favor of a party. 2. As a result of the order of allotment, the allottee acquires a right to become a tenant of the accommodation, which right is disputed or challenged by another party before the State Government by an application under Section 7-F. 3. The dispute is a private dispute between two parties which the State Government has to adjudicate upon. 4. The matter has to be decided on merits and objectively and not on grounds of policy or expediency. 5. Therefore, the State Government has to act judicially in deciding a case under Section 7-F relating to the allotment of an accommodation.
Final Decision: The Full Bench answered both questions in the affirmative, holding that the State Government acts as a quasi-judicial authority when deciding a case relating to the allotment of an accommodation and is bound to give reasons for its order in such a case.
S. N. KATJU AND S. D. KHARE, JJ. :- The following two questions have been referred to this Bench for opinion. :
1. Whether the State Government acts as a quasi-judicial authority when deciding a case relating to the allotment of an accommodation ?
2. Whether the State Government is bound to give reasons for its order in a case for the allotment of accommodation ?
2. We have had the advantage of going through the judgment prepared by brother G. C. Mathur, J., and with great respect we agree that for reasons given by him the First question should be answered in the affirmative.
3. For reasons already given by us in Civil Misc. Writ No. 3755 of 1967*and Special Appeal No. 429 of 1967 our opinion is that the second question should be answered in the negative.
* Reported in AIR 1971 All 54
4. G. C. MATHUR, J. :- The following two questions have been referred to this Bench for opinion :-
1. Whether the State Government acts as a quasi-judicial authority when deciding a case relating to the allotment of an accommodation ?
2. Whether the State Government is bound to give reasons for its order in a case for the allotment of an accommodation ?
5. What is popularly called an "allotment order" is really an order to let an accommodation to a particular person and is made under Section 7 (2) of the U. P. (Temporary) Control of Rent and Eviction Act, 1947. Sub-sections (1) and (2) of Section 7, which are relevant to the questions referred are in these words :-
"7 (1) (a) - Every landlord shall within 7 days after an accommodation becomes vacant by his ceasing to occupy it or by the tenant vacating it or otherwise ceasing to occupy it or by termination of a tenancy or by release from requisition or in any other manner whatsoever, give notice of the vacancy in writing to the District Magistrate.
(b) - Every tenant occupying accommodation shall, within 7 days of vacation of such accommodation, or ceasing to occupy it, give notice thereof in writing to the District Magistrate.
(c) - The notice given under Cl. (a) or (b) shall contain such particulars as may be prescribed.
(2) The District Magistrate may, by general or special order, require a landlord to let or not to let to any person any accommodation which is or has fallen vacant or is about to fall vacant." The general order contemplated in subsection (2) is an order by the District Magistrate forbidding all landlords from letting out any accommodation to any person without his permission and the special order is one by which the District Magistrate directs a particular landlord to let out a particular accommodation to a particular person. An order under Section 7 (2) is not revisable by the Commissioner but only by the State Government under Sec. 7-F of the Act. Section 7-F provides :
"7-F. The State Government may call for the record of any case granting or refusing to grant permission for the filing of a suit for eviction referred to in Section 3 or requiring any accommodation to be let or not to be let to any person under Section 7 or directing a person to vacate any accommodation under Section 7-A and may make such order as appears to it necessary for the ends of justice."
6. Before considering whether the State Government is required to act quasi-judicially in deciding a case under Section 7-F arising out of an order under Section 7 (2), it is necessary to determine whether the District Magistrate is required to act quasi-judicially in making an order under Section 7 (2). The decisions of the Supreme Court have laid down the following three tests for determining whether a statutory authority is required to act in a quasi-judicial manner or not :-
(i) That if a statute empowers an authority, not being a court in the ordinary sense, to decide disputes arising out of a claim made by one party under the statute which claim is opposed by another party and to determine the respective rights of the contesting parties who are opposed to each other, there is a lis and prima facie and in the absence of
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