REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 2763 OF 2010

[Arising out of SLP (C) No. 15983 of 2008]

Pallawi Resources Ltd.

……. Appellant

Versus

Protos Engineering Company Pvt. Ltd.

...... Respondent

JUDGMENT

Dr. Mukundakam Sharma, J.

1.

Leave Granted.

2.

This appeal by special leave is directed against the

judgment and order dated 26.03.2008 passed by the

Calcutta High Court under its ordinary original civil

jurisdiction whereby the High Court dismissed the

application G.A. No. 800 of 2008 in C.S. No. 14 of 2008

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moved by the appellant herein under Chapter XIIIA of the

Rules on the Original Side Rules of the Calcutta High

Court for a summary judgment.

3.

The issue and the controversy that falls for consideration

in the present appeal deals with the interpretation of the

provisions of sub-section 4A of Section 17 of the West

Bengal Premises Tenancy Act, 1997. The question that

arises for our consideration is whether the fair rent in

respect of a tenancy which subsists for 20 years or more

in respect of the premises constructed in or before the

year 1984 and used for commercial purpose is required

to be determined by the Rent Controller or whether the

same would stand automatically determined under sub-

section 4A of Section 17 read with Section 20 of the West

Bengal Premises Tenancy Act, 1997.

4.

At this juncture, it will be pertinent to set out a brief

statement of facts in the backdrop of which the present

controversy has arisen before us. A lease deed dated

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15.02.1969 was executed between the appellant and the

respondent herein for grant of lease, for office purposes,

of the entire first floor of premises no. 20, Rajendra Nath

Mukherjee Road, Calcutta for a period of twenty years

from 01.02.1969 to 31.01.1989 and the rent mutually

settled and agreed upon by the parties was Rs. 2,250/-

per month as the basic component of the rent (the service

charges and other additional payments excluded).

5.

Upon the expiry of the term of twenty years, the appellant

herein instituted a suit being C.S. No. 778 of 1989 before

the Calcutta High Court. The appellant herein, however,

had withdrawn the said suit by way of an order dated

18.04.2006. In the meanwhile, the West Bengal Premises

Tenancy Act, 1997 came into force which repealed the

earlier Act of 1956. Section 17(4A) was inserted by the

West Bengal Premises Tenancy (Amendment) Act, 2002

with retrospective effect from 10.07.2001.

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6.

The appellant therefore issued to the respondent a notice

dated 12.03.2007 under Section 20 of the West Bengal

Premises Tenancy Act, 1997 intending to increase the

rent of the said premises to Rs. 13,500/- per month, it

being five times the rent earlier agreed upon by the

parties due and recoverable from the month of May 2007.

A notice under Section 106 of the Transfer of Property

Act, 1882 dated 09.06.2007 terminating the tenancy and

calling upon the respondent to hand over vacant,

peaceful and khas possession of the said premises was

served upon the respondent by the appellant.

7.

Since the respondent continued to occupy the said

premises, the appellants instituted a suit C.S. No. 14 of

2008 in the High Court of Calcutta under its ordinary

original civil jurisdiction, praying, inter alia, for a decree

of peaceful, vacant and khas possession of the said

premises. Subsequently, an application G.A. No. 800 of

2008 for a summary judgment was moved by the

appellant wherein it was contended by the appellant that

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under sub-section 4A of Section 17 there is a mandate

for increase of rent which automatically comes in

operation upon a notice in that regard being issued

under Section 20 without the landlord requiring to

perfect the demand before any other authority. It was

also urged that if there is no dispute as to the quantum,

t