Niyaz Ahmad Khan vs Mahmood Rahmat Ullah Khan & Anr on 5 May, 2008

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Supreme Court of India
Niyaz Ahmad Khan vs Mahmood Rahmat Ullah Khan & Anr on 5 May, 2008
Author: R.V.Raveendran
Bench: R.V. Raveendran, Lokeshwar Singh Panta
                             IN THE SUPREME COURT OF INDIA
                                                                 Reportable
                   CIVIL APPELLATE JURISDICTION

                    CIVIL APPEAL NO.3372 OF 2008
                  (Arising out of SLP [C] No.18453/2006)


Niyas Ahmad Khan                                          ... Appellant (s)

                                   Versus

Mahmood Rahmat Ullah Khan & Anr.                          ... Respondent (s)




                                 ORDER

R.V.RAVEENDRAN, J.

Leave granted. Heard both sides.

2. The appellant is the tenant and the respondents are the landlords. On

allotment of the premises which is the subject matter of the proceedings to

the appellant, the rent was fixed as Rs.150/- per month under section 16(9)

of the U.P.Urban Buildings (Regulation of Letting, Rent and Eviction) Act,

1972 (`Act’ for short) in the year 1985. The respondents initiated

proceedings for eviction of the appellant under section 21(1)(a) of the Act in

the year 1998, on the ground that they required the premises for their own
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use. The Prescribed Authority dismissed the petition for eviction and that

was confirmed by the Appellate Authority by dismissing the appeal by the

respondents. Feeling aggrieved, the respondents filed a writ petition before

the Allahabad High Court under Article 226/227 of the Constitution of

India.

3. While admitting the said writ petition filed by the landlords, a learned

Single Judge of the Allahabad High Court issued an interim direction dated

17.10.2006 to the tenant (appellate herein) to pay rent at the rate of

Rs.12,050/- per month with effect from October, 2006 with a further

direction that if the rent at that rate is not paid for two consecutive months,

the landlord could evict the tenant by coercive process with the aid of

police. The learned Judge has justified his interim direction on the ground

that in exercise of writ jurisdiction the High Court can reasonably increase

the rent so as to bring it on par with the prevailing market rentals. The

increased rent was assessed in the following manner :

(i) Rent for six rooms (at Rs.1500/- per room) Rs.9000/-

         (ii) Kitchen                                        Rs. 500/-
         (iii) Three verandahs (at Rs.500/- per verandah)    Rs.1500/-
         (iv) Open terrace                                   Rs. 300/-
         (v) Three latrines/bathrooms (at Rs.250 each)       Rs. 750/-
                                                             --------------
                                     3


                                         TOTAL             Rs.12,050/-
                                                           ========


The tenant has challenged the said interim order of the High Court in this

appeal by special leave.

4. The premises in question is governed by the provisions of the Act.

The said Act contains provisions relating to fixation of standard rent and for

increase in rent. Where the statute specifically provides for fixation of rent

and increase in rent, it is impermissible for the High Court to ignore those

provisions and direct the tenant to pay an arbitrarily assessed rent. Neither

the power of judicial review under Article 226 nor the power of

superintendence under Article 227, can be exercised in a manner ignoring or

violating the specific provisions of a statute. While purporting to exercise

the power under Article 227 to keep inferior courts and tribunals within the

limits of their authority, the High Court should not itself cross the limits of

its authority.

5. In this case, the landlord filed an eviction petition seeking possession

on the ground that they bona fide required the suit premises for their own

use. The said request was rejected both by the Prescribed Authority and by
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the Appellate Authority. The landlord therefore approached the High Court

challenging the said rejection by filing a writ petition. The prayer in the writ

petition was for quashing the orders of the Prescribed Authority and the

Appellate Authority and for grant of an order of eviction. There was no

prayer for a direction for payment of any rent or for payment of any

increased rent. When the grievance in the writ petition was only in regard to

refusal of an order of eviction under section 21(1)(a) of the Act, there is no

justification for directing payment of a higher rent either pending

consideration of the writ petition or otherwise.

6. Even assuming that the High Court has power to increase the rent, we

fail to understand how in the absence of any evidence — either oral or

documentary or by way of affidavit, the learned Single Judge could assess

the rent as Rs.12,050 which is more than 48 times, the rent of Rs.250 earlier

determined. The learned Single Judge did not consider any of the relevant

circumstances like the market value of the building on the date of letting,

prevailing rentals in the locality as on the date of letting, the size or

situation or amenities, age of construction, latest assessment of the building

or other circumstances. Further, when a premises consisting of several

rooms, verandahs, kitchen, terrace, bathrooms, latrines, is let out as a single
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unit, the question of assessing the rent with reference to each room or

portion of such premises separately does not arise. The learned Judge’s

observation that by taking a pragmatic approach he was assessing the rent at

Rs.12,050, to say the least, is arbitrary and contrary to law.

7. The learned counsel for respondent-landlord submitted that in several

cases, this court has rejected the challenge to similar orders by refusing to

grant special leave. Dismissal of a special leave petition, in limine does not

preclude this Court from examining the same issue in other cases. Further,

where the rent is increased reasonably, having regard to the fact that the

interim direction is purely a temporary arrangement during the pendency of

the writ petition, it is possible that this Court might have refused to interfere

under Article 136 of the Constitution of India. Every wrong or doubtful

exercise of jurisdiction does not call for grant of special leave, particularly if

the order has not resulted in any injustice. In fact, in several cases, this

Court has set aside the similar interim directions for payment of excessive

rents.

8. We should however note the distinction between cases where a writ

petition is filed by the tenant challenging the order of eviction and seeking
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stay of execution thereof, and cases where a writ petition is filed by the

landlord challenging the rejection of a petition for eviction. What we have

stated above is with reference to writ petitions filed by landlords. In writ

petitions filed by tenants, while granting stay of execution of the order of

eviction pending disposal of writ petition, the High Court has the discretion

to impose reasonable conditions to safeguard the interests of the landlord.

But even in such cases the High Court cannot obviously impose conditions

which are ex facie arbitrary and oppressive thereby making the order of stay

illusory. When a tenant files a writ petition challenging the order of

eviction, the High Court may reject the writ petition if it finds no merit in

the case of the tenant; or in some cases, the High Court may admit the writ

petition but refuse to grant stay of execution, in which event, the tenant may

be evicted, but can claim restoration of possession if he ultimately succeeds

in the writ petition; or in some cases, the High Court finding the case fit for

admission, may grant stay of eviction, with or without conditions, so that

status quo is maintained till the matter is decided. Where the High Court

chooses to impose any conditions in regard to stay, such conditions should

not be unreasonable or oppressive or in terrorem. Adopting some arbitrary

figure as prevailing market rent without any basis and directing the tenant to

pay absurdly high rent would be considered oppressive and unreasonable
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even when such direction is issued as a condition for stay of eviction. High

Court should desist from doing so.

9. To sum up, in writ petitions by landlord against rejection of eviction

petitions, there is no scope for issue of any interim direction to the tenant to

pay higher rent. But in writ petitions by tenants against grant of eviction, the

High Court may, as a condition of stay, direct the tenant to pay higher rent

during the pendency of the writ petition. This again is subject to two

limitations. First, the condition should be reasonable. Second, there should

not be any bar in the respective State rent control legislation in regard to

such increase in rent. Be that as it may.

10. The appeal is allowed and the order dated 17.10.2006 passed by the

High Court directing the tenant to pay rent at the rate of Rs.12050/- per

month from October, 2006 is set aside.

……………………………J.

                                              (R V Raveendran)



New Delhi;                                    ...............................J.
May 5, 2008.                                  (Lokeshwar Singh Panta)
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