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1996 Supreme(All) 873

HIGH COURT OF ALLAHABAD
R.H. Zaidi, J.
Gyan Chandra - Appellants
Versus
Addl District Judge Badaun And - Respondents
Decided on : Aug 09, 1996

Advocates appeared:
G.P. Mathur, Pradeep Kumar Saxena, Radhey Shyam,

The appellate authority must record reasons for reversing the findings of the Prescribed Authority, and an order passed without recording reasons is illegal and liable to be quashed.

Headnote:

UP URBAN BUILDINGS (REGULATION OF LETTING, RENT AND EVICTION) ACT, 1972 - SEC. 21, 22, 10 - APPEAL - APPELLATE AUTHORITY - POWER TO REVERSE FINDINGS OF PRESCRIBED AUTHORITY - REASONS TO BE RECORDED - ORDER PASSED WITHOUT RECORDING REASONS - ILLEGAL AND LIABLE TO BE QUASHED.

Fact of the Case:

Petitioner filed a release application under Sec. 21 (1) (a) of the UP Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, claiming the shop in dispute for his personal use and occupation. The Prescribed Authority allowed the application, finding that the petitioner's need was genuine and bonafide. On appeal, the appellate authority reversed the findings and set aside the order of the Prescribed Authority.

Finding of the Court:

The appellate authority did not record reasons for reversing the findings of the Prescribed Authority, and its order was therefore contrary to the provisions of sub-rule (7) of Rule 34 of the Rules framed under the Act and against the principles of natural justice.

Issues: Whether the appellate authority had the jurisdiction to substitute its own findings for the findings recorded by the prescribed Authority without reversing the finding of the said authority.

Ratio Decidendi: The appellate authority has the power to confirm, vary or rescind the order under appeal, remand the case to the authority below, and grant interim orders. However, it must act judicially and in accordance with law, and record reasons for its decision, particularly when passing an order of reversal.

Final Decision: The petition was allowed, the order of the appellate authority was quashed, and the case was remanded for a fresh decision in accordance with the observations made by the court.

Judgment :

1. R. H. Zaidi, J. Instant petition arises out of the proceedings under Sec. 21 (1) (a) of U. P. Urban Buildings (Regulation of Let ting, Rent and Eviction) Act, 1972, for short 'the Act' and is directed against the order passed by the appellate authority allowing the appeal filed by respondent No. 2 in exercise of power under Sec. 22 of the Act.

2. RELEASE application was filed by the petitioner Gyan Chandra, who has died during the pendency of the present petition and after whose death his heirs and legal representatives were substituted in his place as the petitioners.

In brief, it was pleaded by Gyan Chandra that the shop in dispute was needed for his personal use and occupation as he wanted to settle his son in business. The release application was opposed and contested by respondent No. 2, who denied the allegations made in the release application and pleaded that the need of Gyan Chandra for the shop in dispute was neither genuine nor bonafide.

3. THE Prescribed Authority after hearing the parties and perusing the record of the case, recorded clear and categorical findings on the questions of need and hardship in favour of Gyan Chandra. THE Prescribed Authority has recorded cogent reasons for the findings arrived at by it. After recording the said findings, the release application was allowed by the Prescribed Authority by its judgment and order dated 5-12-81. Aggrieved by the said judgment and order passed by the Prescribed Authority, respondent No. 2 filed an appeal. THE appellate authority al lowed the said appeal and set aside the order passed by the Prescribed Authority. There after, the present petition was filed by Gyan Chandra in this court under Article 226 of the Constitution of India.

4. LEARNED counsel for the petitioner submitted that the appellate authority has acted illegally in reversing the order passed by the Prescribed Authority without reversing the findings recorded by the said Authority. It has also been urged that the appellate authority has, without critically examining the reasons recorded by the Prescribed Authority and without taking into consideration the facts, which were taken into consideration by the Prescribed Authority, substituted its own findings on the question of need and hardship. In sub stance it has been urged that reasons have not been recorded by the appellate authority to up set the findings recorded by the Prescribed Authority and arbitrarily and abruptly it has been held that the findings recorded by the Prescribed Authority could not be sustained.

On the other hand, learned counsel for the contesting respondent submitted that the findings recorded by the appellate authority are findings of fact, which cannot be interfered with in exercise of power under Article 226 of the Constitution of India, Reliance in support of the said sub mission has been placed upon the decision in Revindra Singh and others v. III Addl. Distt. Judge, Faizabad, 1992 (2) A. R. C. 308.

5. I have considered the rival submissions made by learned counsel for the par ties. An appeal against the order passed by the Prescribed Authority passed under Sec. 21 is provided under Sec. 22 of the Act, which reads as under:

"22. Appeal - Any person aggrieved by an order under Section 21 or Sec. 24 may within thirty days from the date of order prefer an appeal against it to the Distt. Judge and in other respects the provisions of (Section 10) shall nutatis mutan dis apply in relation to such appeal."

Section 10 of the said Act provides as under:

"10. Appeal against order under Sections (8, 9 and 9-A ).- (1) Any person aggrieved by an order of the Distt. Magistrate under Sec. 8 or Section 9 (or Section 9-A) may within thirty days from the date of the order, prefer an appeal against it to the Distt. Judge and the Distt. Judge may either dispose it of himself or assign it for disposal to an Additional Distt. Judge under his administrative control and may recall it from any such officer, or transfer it to any






















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