Friday, 17 September 2021

Whether Statutory Tenant Can Seek Repossession After Demolition Of Building Under Section 108B(e) Of Transfer Of Property Act?

In view of the binding decisions of the larger bench and

keeping in view the fact that the judgment of this Court in

Shaha Ratansi Khimji was dealing with the rights of

contractual tenant, the statutory tenant cannot seek

repossession after the demolition of building under Section

108(B)(e) of the TP Act as the rights and liabilities of a

statutory tenant have to be found under the Rent Act alone.

32. The petition for eviction filed by the landlord was withdrawn.

Since the premises are situated within the urban areas

governed by the Rent Act, the tenant has a right to seek

possession only in terms of Section 27 of the Act if the decree

for eviction has been passed by a Court on the ground

specified under clause (j) of the proviso to sub-section (1) of

Section 21. Even if it is assumed that decree of eviction was

passed on the withdrawal of the eviction petition, the tenant

has to seek possession of the premises from the date on

which he delivered vacant possession of the premises to the

landlord. The plaintiff filed first suit claiming right over the

land after demolition of the building but being a statutory

tenant, he had to avail the remedy under the Rent Act as the

provisions of the TP Act are not applicable to the building and

land situated within urban area. In view of the provisions of

the Act, the terms of the TP Act cannot be applied for in

respect of statutory tenants. The High Court has returned a

finding that the plaintiff was a statutory tenant. In view of the

said fact, the remedy of the tenant, if any, has to be found

within four corners of the Rent Act and not under the TP Act.

 REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 1833 OF 2008

ABDUL KHUDDUS  Vs  H.M. CHANDIRAMANI (DEAD) THR LRS. & ORS.


Author: HEMANT GUPTA, J.

Dated: SEPTEMBER 14, 2021.

1. The present appeals are directed against an order passed by

the Division Bench of the High Court of Karnataka on

28.9.2006 in three First Appeals filed before it. The first

appeal was against the judgment and decree passed by the

Additional City Civil & Sessions Judge, Bangalore on

16.4.2005 in O.S. No. 10082 of 19951 whereby the suit of

plaintiff, now represented by his legal heirs, for permanent

and mandatory injunction was dismissed on 16.4.2005. The

other appeal arises out of another suit filed by the plaintiff for

claiming damages in O.S. No. 16643 of 19992 which was

1 Hereinafter referred to as the ‘first suit’

2 Hereinafter referred to as the ‘second suit’

1

decreed on 6.10.2003. The Plaintiff was found entitled to

recover a sum of Rs.1,25,000/- as damages towards the

loss/destruction of machineries, furniture, fittings and stockin-

trade apart from the damages @ Rs.10,000/- per month

towards the loss of business of plaintiff from 9.1.1995 till the

possession is restored, subject to final decision of first suit.

The defendants, official respondents and the owner, filed two

separate appeals against the same. The third appeal arises

out of first suit decided by the Additional City Civil Judge,

Bangalore on 16.4.2005 whereby the suit of the plaintiff for

permanent and mandatory injunction was dismissed.

2. All the three appeals were taken up and decided together by

the High Court. The High Court dismissed the appeals arising

out of the judgment and decree passed by the trial court in

favour of the plaintiff whereas, the appeal arising out of

judgment and decree in first suit filed by the plaintiff was

allowed.

3. The plaintiff was inducted as a tenant on 7.5.1974 by an

allotment order passed by the Rent Controller under Section 5

of the Karnataka Rent Control Act, 19613. The rented portion

was on the first floor of the two-floor building of Premises No.

50, Ebrahim Saheb Street, Civil Station, Bangalore.

4. One Panduranga Shetty was the owner of the building. Such

3 For short, the ‘Rent Act’

2

building was constructed in 1903 with Mangalore tiles and

wooden beams. The appellant Abdul Khuddus was arrayed as

defendant No. 7 in the first suit and defendant No. 1 in the

second suit and was the purchaser of the front portion of the

building vide sale deed dated 18.3.1994. Sheikh Hyder

purchased the rear portion of the building on the same date

whereas one Sheikh Mohd. purchased the northern side of the

building on 9.12.1994. The Bangalore City Corporation4 is the

appellant in the third appeal.

5. The appellant herein filed an ejectment petition seeking

ejectment of the plaintiff under Section 21(1)(j) of the Rent

Act on the ground that the premises were required for

bonafide use by the landlord for the immediate purpose of

demolishing them and erecting a new building in place of the

premises sought to be demolished.

6. A notice under Section 322 of the Karnataka Municipal

Corporations Act, 19765 was issued by the Corporation on the

ground that the building was in dilapidated condition, unsafe

and dangerous. The plaintiff challenged the said show cause

notice in W.P. No. 20400 of 1994 whereby an ad-interim stay

was granted by the High Court. Later, Shri B. Ravi Kumar,

Advocate was appointed as a Commissioner on 27.9.1994 to

visit the property and submit a report which was done on

4 For short, the ‘Corporation’

5 For short, the ‘Act’

3

16.11.1994. In the report, it was stated that the building was

in a bad condition and that there were also cracks in the

building, leakage of water etc.

7. The High Court dismissed the writ petition on 8.12.1994 as

the same was directed only against show cause notice.

However, the High Court directed the officials of the

Corporation not to demolish the building except pursuant to a

final order to be made within four weeks. The operative part

of the order of the High Court reads as under:

“5. Accordingly this petition is disposed of with a

direction to respondent-2 not to dismantle the building

in question without making any final order pursuant to

notice, Annexure-A and serving a copy of the final

order on the petitioner. It is made clear that none of

the respondents should take any steps to dismantle

the building except pursuant to a final order made by

respondent-2. It is further made clear that if the

petitioner sustains any injury on account of the

alleged dilapidated condition of the building,

respondents 7 to 10 shall not be held responsible.

Respondent-2 shall make the final order within four

weeks to serve a copy of the same on the petition a

week therefrom. Liberty is reserved petitioner to take

steps as are allowed against the final order.”

8. It is thereafter the Deputy Commissioner of the Corporation

passed an order on 5.1.1995 after personally inspecting the

building and returning a finding that the building was in poor

condition. It was noticed that it was the duty of the

Corporation to take action in order to prevent any imminent

danger to the public independently of the dispute, if any,

between the parties. The operative part of the order reads as

4

under:

“After careful consideration of all aspects the

objections filed by the occupier Sri. H.M.

Chandiramani are overruled and it is ordered and

directed that the building situated at No. 50, Ibrahim

Saheb Street, Bangalore, which is in a dilapidated and

dangerous condition be taken down immediately to

avoid any danger to the passers by.

If the owner or occupier fails to take down the

building within 3 days action will be taken by the

Bangalore Mahanagar Palika under Section 462(2) of

the K.M.C. Act, 1976 to take down the building at the

cost of the owner and the said cost will be recovered

as per Section 470 of K.M.C. Act, 1976.”

9. The said order was served upon the plaintiff on 6.1.1995 at

5.20 PM and the building was demolished by the Corporation

on 9.1.1995 at around 9 AM. The possession of vacant land

was given to the owners. The order of demolition was not

challenged in appeal in terms of Section 444 of the Act or

before any other authority or forum.

10. The appellant relies upon the communication dated

09.01.1995 on behalf of Bina Chandiramani, wife of the

deceased plaintiff, and Sharmila Chandiramani, daughter of

the deceased plaintiff which was made in the handwriting of

the daughter. It was averred that they have carried the goods

such as garments, machinery, fittings etc., in the absence of

the plaintiff in vehicle No. CAS 337, thus it was an implied

surrender of possession.

5

11. The first suit was filed on 27.1.1995 for permanent injunction,

though the building stood demolished on 9.1.1995.

Subsequently, the suit was amended to claim relief for

mandatory injunction and possession. The plaintiff had

pleaded that he would be taking steps for contempt of court

for disobedience of the orders of Court and for damages

incurred, actual or general. The cause of action was said to

have arisen on 25.01.1995 when the appellant attempted to

commit criminal trespass into the schedule property in

possession of the plaintiff. The relevant extract from the

plaint reads thus:

“9. …………The plaintiff will be taking steps against

the defendant and corporation officials for contempt

of court, disobedience of orders of Court and for

damages incurred actual, general by the plaintiff

separately.

10. In the meanwhile, the defendant, who, under law

cannot be in possession of schedule premises and is

attempting to take forcible possession of the same

and letting out and alienate the same to others and

also to put up construction. He cannot do so under

law, until disposal of the HRC Petition. The plaintiff has

legal right to be protected. The plaintiff is rudely

shocked at the high handedness of the defendant. In

the evening of 25.01.95, alongwith his henchmen, the

defendant tried to commit criminal trespass into the

schedule property and wanted to put up wall etc.

whereupon the plaintiff made hue and cry and by

which there was commotion and a oral complaint also

given to the police, and in writing on 25.01.95 for

which no acknowledgement was given, however the

defendant could not succeed in his attempt and the

plaintiff has sent copy of the said complaint under

certificate of posting today to the police.

11. The cause of action for the suit arises within the

jurisdiction of this Hon’ble Court at Bangalore on

6

25.01.95 and subsequently thereafter, when the

plaintiff attempted to commit criminal trespass into

the suit schedule property, within the jurisdiction of

this Hon’ble Court.”

12. The second suit was filed on 30.10.1995 claiming damages,

though such right of damages was also available when the

first suit was filed on 27.1.1995. As mentioned above, the

first suit was decided on 16.4.2005 which is later than the

decree in the second suit. In the first suit, a finding was

returned that the second suit was barred by the provisions of

Order II Rule 2 of the Code of Civil Procedure, 19086. The

second suit was filed as an indigent person wherein the

plaintiff claimed that he had 12 sewing machines, and other

materials at the shop at the time of demolition. The learned

trial court assessed the value of stock-in-trade of readymade

garments and finished goods at around Rs.50,000/- and

another Rs.25,000/- for fittings, fixtures, furniture, electrical

fittings etc. The trial court further found that he had lost his

earnings of Rs.10,000/- per month on the basis of Ex.P/40.

The decree was to grant quantified damages and to pay Rs.

10,000/- per month till such time, the possession is handed

over to the plaintiff.

13. In the first appeal, the Division Bench of the High Court interalia

held that:

(i) There is lack of bonafides in issuing notice under

6 For short, the ‘Code’

7

Section 322 of the Act, therefore, the order passed is

not legal and valid.

(ii) The notice has been issued without examining the

fact that the plaintiff has got statutory protection

under the Rent Act. The cause of action to demolish

the building would arise only after passing an order

under Section 462 of the Act and that action of the

Corporation is tainted with legal malafide.

(iii) The building was demolished in haste as the order

was served upon the plaintiff at 17:20 hours on

6.1.1995 and the building was demolished on

9.1.1995 without giving clear 3 days of notice

period.

(iv) Section 21 of the Rent Act has overriding effect

under Section 322 of the Act as statutory protection

is granted to the tenant. Therefore, the proceeding

under Section 322 of the Act was not permissible.

(v) That the suit is not barred by the principles of Order

II of Rule 2 of the CPC.

14. The High Court, thus, allowed the appeal holding that the

building in question was demolished in haste and the plaintiff

was thus entitled to possession of the building as he was

unlawfully dispossessed of the same. The Corporation and the

appellant were therefore directed to restore the possession

within two months of a shop comparable in size and form in

the built portion of the suit property.

15. Learned counsel for the appellant vehemently argued that

the High Court proceeded on the assumption that there was

an interim injunction on 15.2.1995 in the first suit, however

the building already stood demolished on 9.1.1995. The first

suit was filed on 27.1.1995 subsequent to the demolition.

Still further, an application filed by the plaintiff under Order

XXXIX Rule 2A of the CPC for violation of an interim order

dated 15.2.1995 was dismissed on 10.8.1998. Thereafter,

the first suit was decided on 16.4.2005. Thus, there is a

factual error in the order passed by the High Court.

16. The proceedings were initiated against the plaintiff under the

Act vide notice issued on 24.5.1994. The said order was

challenged by the plaintiff before the Writ Court wherein a

Court Commissioner was appointed who reported about the

dilapidated condition of the building. The High Court had

given four weeks’ time to the Corporation to pass an order on

the show cause notice issued. The order was passed on

5.1.1995 after giving an opportunity of hearing to the plaintiff

and after visiting the site by the Deputy Commissioner of the

Corporation. Thus, the plaintiff was well aware of the

proceedings initiated against him by the Corporation. The

order of dismissal of the writ petition on 8.12.1994 was not

challenged by the plaintiff. Since the Corporation was given

four weeks’ time to pass a final order, therefore, the

Corporation was bound to pass an order in terms of the

direction of the High Court, which was passed on 5.1.1995.

The said order was served on 6.1.1995. The building was

demolished on 9.1.1995, which was the third day of serving

of the said order. Therefore, there is no violation neither of

the order of the High Court nor the building was demolished

in haste.

17. It was also argued that the plaintiff was bound to include his

claim for damages in the first suit which was filed on

27.1.1995 after the demolition had taken place. Since no

grievance was raised in the first suit regarding damage to the

property or to the loss of business, the second suit would be

barred by the provision of Order II Rule 2 CPC. However, as

per the plaintiff, the cause of action arose on 09.01.1995,

when the plaintiff was dispossessed from the schedule

property. The relevant extract from the plaint of the second

suit reads as under:

“The cause of action for the suit arises within the

jurisdiction of this Hon’ble Court at Bangalore on

09.01.95 being date when plaintiff was disposed from

the schedule premises with his belongings etc. and as

stated above and subsequently on various dates when

notices have been issued and acknowledged by the

defendants-6. The value of the suit for purpose of

(illegible) and jurisdiction is as per valuation (illegible)

plaintiff is indigent person and he may be permitted to

prosecute the above case in pharma (illegible) as he is

unable to pay court fee.”


18. The finding of the High Court that notice under Section 322 of

the Act was not bonafide as tenant has the protection of the

Rent Act was assailed on the ground that the proceedings

under the Rent Act are restricted between landlord and

tenant to seek ejectment on the permissible grounds whereas

the Act is much wider to ensure public safety on account of

dilapidated building endangering the life and property of the

occupants. Both the Acts operate in their assigned separate

fields and therefore, it cannot be said that the Rent Act has

the preference over the Act. It was also argued that the order

passed by the Corporation on 5.1.1995 was keeping in view

the building which was in old dilapidated condition and could

be a cause of danger to the public. The finding of the High

Court that the proceedings under the Act was an act of

collusion between the owner and the Corporation is

misconceived only for the reason that the appellant has

withdrawn rent proceedings after the demolition of the

building on 6.2.1995. The tenanted portion had ceased to

exist after demolition; therefore, the relief of ejectment was

no longer available to the appellant.

19. On the other hand, learned counsel for the respondents

herein argued that the order of demolition was served upon

the deceased plaintiff on 6.1.1995 at 5:20 pm and the

building was demolished on 9.1.1995 at 9:00 am. Therefore,

there was no clear three days’ notice granted to the plaintiff

to vacate the premises nor to avail any legal remedy. It was

further argued that order under Section 322 of the Act could

not be executed without passing an order under Section 462

of the Act. Learned counsel supported the findings of the

High Court that it was high handedness of the officials of the

Corporation and the appellant which led not only to loss of

the premises but loss of business as well. Section 322 and

Section 462 of the Act read as under:

“322. Precautions in case of dangerous structures. –

(1) If any structure be deemed by the Commissioner

to be in a ruinous state or dangerous to passersby or

to the occupiers of neighbouring structures, the

Commissioner may, by notice require the owner or

occupier to fence off, take down, secure or repair such

structure so as to prevent any danger therefrom.

(2) If immediate action is necessary, the

Commissioner may himself, before giving such notice

or before the period of notice expires fence off, take

down, secure or repair such structure or fence off a

part of any street or take such temporary measures as

he thinks fit to prevent danger and the cost of doing

so shall be recoverable from the owner or occupier in

the manner provided in Section 470.

(3) If in the Commissioner’s opinion the said structure

is imminently dangerous to the inmates thereof, the

Commissioner shall order the immediate evacuation

thereof and any person disobeying may be removed

by any police officer.

xx xx xx

462. Time for complying with order and power to

enforce in default. – (1) Whenever by any notice,

requisition or order made under this Act or under any

rule, bye-law or regulation made under it, any person

in required to execute any work, or to take any

measures or do anything, a reasonable time shall be

12

named in such notice, requisition or order within

which the work shall be executed, the measures

taken, or the thing done.

(2) If such notice, requisition or order is not complied

with within the time so named, then whether or not a

fine is provided for such default and whether or not

the person in default is liable to punishment or has

been prosecuted or sentenced to any punishment for

such default, the Commissioner may cause such work

to be executed, or may take any measure or do

anything which may, in his opinion, be necessary for

giving due effect to the notice, requisition or order as

aforesaid.

(3) If no penalty has been specially provided in this

Act for failure to comply with such notice, the said

person shall, on conviction, be punished with fine not

exceeding fifty rupees for such offence.”

20. The plaintiff asserted that the area of the subject shop was

1000 sq. feet (approx.). Reliance was placed upon schedule

of property given in plaint of the first suit. It was submitted

that the right of a tenant survives even after demolition of

tenanted premises. Reference was made to Section 27 of the

Rent Act as well as three-judge bench judgment of this Court

reported as Shaha Ratansi Khimji and Sons v. Kumbhar

Sons Hotel Private Limited and Ors. (2014) 14 SCC 1 holding that in

terms of Section 108B(e) of the Transfer of Property Act,

1882{For short, the ‘TP Act’}, the destruction of tenanted property would not amount to determination of tenancy under Section 111

 of the TP Act. Reliance was also placed upon some judgments of

the High Courts in support of such argument.

21. In respect of area of tenanted premises, the plaintiff relied

upon the schedule of the property in the suit for injunction.

Such schedule does not show the area in possession but

shows the boundaries of the building. As per the Court

Commissioner, the entire building measured about 38 feet x

16 feet. The Commissioner had given the report that

northern side of the ground floor was damaged as in the

inside wall, there were air cracks and leakage of water. Some

of the portion of the building towards the northern side had

already fallen down. The western side, adjacent to the

northern wall was also in a very bad condition as the roof of

the room was damaged by the cracks and leakage of water

from the roof inside the northern wall. In the middle of

northern wall on the first floor, 1½” cracks appeared inside

the wall from the top of the roof. The length of the said crack

was about 6 feet from the top. The leakage of the water from

the roof of the first floor and cracks were coming in the wall

of the southern side as well. The Court Commissioner found

that there were cracks in the building and leakage of water

on the northern side wall. The area of tenanted premises was

not an issue, which would be relevant as to whether the

tenanted premises had been demolished without adequate

notice or if the tenant has right to enter into possession of

building constructed on the site in question.


22. We have heard learned counsel for the parties and found that

the judgment and decree of the High Court cannot be

sustained. The argument of the plaintiff was that in spite of

demolition of the building by the Corporation, the tenancy

rights survive as the right of tenancy is not only in building

but also in the land. Thus, the plaintiff was entitled to

equivalent size of shop in the building which has been

constructed on the land of which the Plaintiff was a tenant on

the first floor. Reliance has been placed on judgment of this

Court in Shaha Ratansi Khimji wherein the godown in

possession of the tenant was demolished. The assertion of

the tenant in the said case was that the owner started

digging of basement for construction of a hotel next to the

wall of godown. The tenant filed a suit for injunction claiming

restraint order against the owner from digging as it would

endanger the godown. The tenant claimed by way of an

amendment to reconstruct the walls of godown. The learned

trial court dismissed the suit. The appeal as well as the

second appeal against the said judgment was also dismissed.

This Court, in an appeal directed against the three orders

passed by the courts below interpreted Section 108(B)(e) of

the TP Act holding that right has not been conferred by the

statute on the lessor for determination, therefore, it will not

be permissible for the Court to add another ground of base or

fulcrum of ethicality, difficulty or assumed supposition. The

tenancy rights would continue over the land even after the

building was demolished. This Court approved the judgment

of this Court reported as T. Lakshmipathi & Ors. v. P.

Nithyananda Reddy & Ors.9 wherein the landlord initiated

eviction proceedings on the ground that he requires the

premises for his own bona fide use and that tenant was in

arrears of rent and had also sub-let the premises. This Court

overruled the judgment of this Court reported as

Vannattankandy Ibrayi v. Kunhabdulla Hajee10 and held

as under:

“23. In Vannattankandy Ibrayi the learned Judges

referred to the decision on common law, the principles

in American jurisprudence, and various decisions of

the High Courts and adverted to two categories of

tenants, namely, a tenant under the Transfer of

Property Act and the other under the State rent of

laws and proceeded to interpret Section 108(B)(e) to

hold that where a premises has fallen down under the

circumstances mentioned therein, the destruction of

the shop itself does not amount to determination of

tenancy under Section 111 of the Act and there is no

automatic determination of tenancy and it continues

to exist…….

xx xx xx

27………………………. On the touchstone of this

analysis, we respectfully opine that the decision

rendered in Vannattankandy Ibrayi (supra) does not

correctly lay down the law and it is, accordingly,

overruled.

28. In the present case, it is not in dispute that the

respondent purchased the lessor's interest. The lease

continued even thereafter and did not extinguish. The

lease was subsisting when the shares of the land were

purchased by the respondent. But the interest of the

9 (2003) 5 SCC 150

10 (2001) 1 SCC 564

lessee was not purchased by the respondent. What

has been purchased by the respondent is the right

and interest of ownership of the property. The interest

of the appellant as lessee has not been vested with

the respondent. Therefore, we are of the view that the

tenancy of the appellant cannot be said to have been

determined consequent upon demolition and

destruction of the tenanted premises.

29. In view of the facts and circumstances of the

case, we have no other option but to set aside the

impugned judgment and decree dated 18-7-2006

passed by the High Court of Judicature of Bombay

in Shaha Ratansi Khimji & Sons v. Proposed Kumbhar

Sons Hotel (P) Ltd. [Shaha Ratansi Khimji &

Sons v. Proposed Kumbhar Sons Hotel (P) Ltd. , Second

Appeal No. 109 of 2006, decided on 18-7-2006 (Bom)]

and judgment and decree dated 30-11-2005 passed

by the Additional District Judge, Karad in RCA No. 86

of 2002. However, taking into consideration the fact

that the appellant is not in possession of the suit

property since long, we are not inclined to direct

restoration of possession of suit property to the

appellant. Instead we direct the respondent to pay a

sum of Rs 20,00,000 (Rupees twenty lakhs only) in

favour of the appellant towards compensation for

depriving the appellant from enjoying the suit

property within two months, failing which it shall be

liable to pay interest @ 6% per annum from the date

of the judgment.”

23. A perusal of the above extract from the judgment shows that

this Court noticed that there are two categories of tenants

namely, a tenant under the TP Act and the other under the

State Rent Laws. There is no assertion that the property in

question in the said case was governed by State Rent Laws. It

was a case where the owner started digging a ditch towards

the northern side wall of the suit property. During the rainy

season, the water used to get accumulated in the said ditch

and that the owner closed the access road to the said

property. It was also alleged that the owner went ahead with

destruction of the godown and demolished the western wall

of the godown. The judgment does not deal with statutory

tenant protected by a particular statute but with the

principles of a contractual tenancy in terms of Section 108(B)

(e) of the TP Act. In fact, the para quoted in the three judge

bench judgment is an alternate argument raised in the

Vannattankandy Ibrayi, which is evident from the following

para:-

“20. From the aforesaid decisions there is no doubt

that if a building is governed by the State Rent Act

the tenant cannot claim benefit of the provisions of

Sections 106, 108 and 114 of the Act. Let us test the

arguments of learned counsel for the appellant that

on the destruction of the shop the tenant can resist

his dispossession on the strength of Section 108B (e).

In this case what was let out to the tenant was a shop

for occupation to carry on business. On the

destruction of the shop the tenant has ceased to

occupy the shop and he was no longer carrying on

business therein. A perusal of Section 108(B)(e)

shows that where a premises has fallen down under

the circumstances mentioned therein the destruction

of the shop itself does not amount to determination

of tenancy under Section 111 of the Act. In other

words there is no automatic determination of tenancy

and it continues to exist……………..”

(Emphasis Supplied)

24. In Shaha Ratansi Khimji, the Court has considered the

alternative argument assuming that Section 108(B)(e) of the

TP Act is applicable. However, the primary argument that

being a statutory tenant, right has to be culled out only from

the Rent Laws had not been raised or considered. It is the

alternative argument which has not found favour with the

three Judge Bench in Khimji case. In respect of the statutory

tenant, different aspects of rights of statutory tenant need to

be examined, which are not the same as rights of a lessee

under the TP Act.

25. A Seven Judge Bench in the judgment reported as V.

Dhanpal Chettiar v. Yesodai Ammal11 was examining a

question as to whether a statutory tenant is entitled to notice

of termination of tenancy contemplated by Section 106 of the

TP Act or not. It was held that since statutory tenant is

entitled to protection under the Rent Act, therefore, the

procedure prescribed under the TP Act would not be

applicable. The Court held as under:

“5. ….The subject being in the concurrent list, many

State Rent Acts have by necessary implication and

many of them by starting certain provisions with a

non-obstante clause have done away with the law

engrafted in Section 108 of the Transfer of Property

Act except in regard to any matter which is not

provided for in the State Act either expressly or by

necessary implication.

xxx xxx xxx

13. ...The notice does not bring to an end such a

relationship because of the protection given to the

tenant under the Rent Act. If that be so then it is not

necessary for the landlord to terminate the

contractual relationship to obtain possession of the

premises for evicting the tenant. If the termination of

the contractual tenancy by notice does not, because

of the Rent Act provisions, entitle the landlord to

recover possession and he becomes entitled only if he

makes out a case under the special provision of the

State Rent Act, then, in our opinion, termination of the

11 (1979) 4 SCC 214

contractual relationship by a notice is not necessary.

The termination comes into effect when a case is

successfully made out for eviction of the tenant under

the State Rent Act. We say with utmost respect that

on the point of requirement of a notice under Section

106 of the Transfer of Property Act Mangilal case [AIR

1965 SC 101: (1964) 5 SCR 239] was not correctly

decided.

xxx xxx xxx

16. …Even if the lease is determined by a forfeiture

under the Transfer of Property Act the tenant

continues to be a tenant, that is to say, there is no

forfeiture in the eye of law. The tenant becomes liable

to be evicted and forfeiture comes into play only if he

has incurred the liability to be evicted under the State

Rent Act, not otherwise. In many State statutes

different provisions have been made as to the grounds

on which a tenant can be evicted and in relation to his

incurring the liability to be so evicted. Some

provisions overlap those of the Transfer of Property

Act. Some are new which are mostly in favour of the

tenants but some are in favour of the landlord also.

That being so the dictum of this Court in Raj Brij case

[AIR 1951 SC 115: 1951 SCR 145: 1951 SCJ 238]

comes into play and one has to look to the provisions

of law contained in the four-corners of any State Rent

Act to find out whether a tenant can be evicted or not.

The theory of double protection or additional

protection, it seems to us, has been stretched too far

and without a proper and due consideration of all its

ramifications.

xxx xxx xxx

18. .…If we were to agree with the view that

determination of lease in accordance with the Transfer

of Property Act is a condition precedent to the starting

of a proceeding under the State Rent Act for eviction

of the tenant, we could have said so with respect that

the view expressed in the above passage is quite

correct because there was no question of

determination of the lease again once it was

determined by efflux of time. But on the first

assumption we have taken a different view of the

matter and have come to the conclusion that

determination of a lease in accordance with the

Transfer of Property Act is unnecessary and a mere

surplusage because the landlord cannot get eviction

of the tenant even after such determination. The

tenant continues to be so even thereafter. That being

so, making out a case under the Rent Act for eviction

of the tenant by itself is sufficient and it is not

obligatory to found the proceeding on the basis of the

determination of the lease by issue of notice in

accordance with Section 106 of the Transfer of

Property Act.”

26. In a later judgment reported as Pradesh Kumar Bajpai v.

Binod Behari Sarkar (Dead) by Lrs.12, a three Judge Bench

of this Court was examining the claim of tenant with respect

to right to pay arrears of rent in terms of Section 114 of the

TP Act. The following argument was examined:

“9. …….The only question that arises and which

was seriously contended for on behalf of the

respondent is that in addition to the safeguards

provided to the tenant under the Act, he is also

entitled to the benefits of Section 114 of the Transfer

of Property Act. Section 3 of the U.P. (Temporary)

Control of Rent and Eviction Act 3 of 1947 restricts the

rights of the landlord to have the tenant evicted. But

for the statutory provisions, the landlord would be

entitled to evict the tenant according to the terms of

the contract or the provisions of the Transfer of

Property Act. As the Rent Act has restricted the power

of the landlord to evict the tenant except in

accordance with the provisions of the Act, the terms of

the contract and the provisions of the Transfer of

Property Act to that extent are no longer applicable.”

27. The question raised on the basis of the argument of the

tenant was found to be without any substance that he was

entitled to double protection under the Rent Act and under

the TP Act. The Court held as under:

“12. …..If the relief provided for under the section is

available, as the lessee had tendered the rent in

12 (1980) 3 SCC 348

arrears along with the interest thereon and his full

costs in the suit, it was open to the court to pass an

order relieving the lessee against the forfeiture. The

plea of the learned Counsel for the tenant is that this

provision should also be read into the U.P. (Temporary)

Control of Rent and Eviction Act. In a decision of

seven-Judges, Bench of this Court in V. Dhanapal

Chettiar v. Yasodai Ammal [(1979) 4 SCC 214 : (1980)

1 SCR 334] the question as to whether in order to get

a decree for eviction, the landlord under the Rent

Control Act should give notice as required under

Section 106 of the Transfer of Property Act was

considered. This Court held that determination of the

lease in accordance with the Transfer of Property Act

is unnecessary and that if a case is made out for

eviction under the Rent Act, it is itself sufficient and it

is not obligatory to determine the lease by issue of

notice as required in accordance with Section 106 of

the Transfer of Property Act. The learned Counsel for

the tenant submitted that the decision is confined

only to the question as to whether notice under

Section 106 of the Transfer of Property Act is

necessary and did not decide as to whether the

provisions of the other sections of the Transfer of

Property Act are applicable. It is to be noted, however,

that the question of determination of a lease by

forfeiture under the Transfer of Property Act, was

specifically dealt with by the court and it was held

that the claim of the tenant that he is entitled to a

double protection (1) under the Rent Act and (2) under

the Transfer of Property Act, is without any substance.

xxx xxx xxx

In the case before us, it is not in dispute that after the

Rent Act came into force, the landlord cannot avail

himself of clause 12 which provides for forfeiture,

even if the tenant neglected to pay the rent for over

two months. The landlord cannot enter into

possession forthwith without notice. The only remedy

for him is to seek eviction under the provisions of the

Rent Act. In such circumstances the tenant cannot rely

on Section 114 of Transfer of Property Act and claim

that he should be given an opportunity to pay the

arrears of rent, even though the requirements of

Section 3(1) had been fulfilled.”

22

28. In another judgment reported as K. K. Krishnan v. M. K.

Vijaya Ragavan13 an argument was raised relying upon

Section 108(j) of the TP Act that lessee has a right to

sublease the whole or any part of his interest in the property.

Therefore, the landlord cannot seek eviction on the ground of

subletting under the Kerala Buildings (Lease and Rent

Control) Act. The Court held as under:

“8. It is clear from what has been said that not all

the rights conferred on landlord and tenant by Section

108 and other provisions of the Transfer of Property

Act have been left in tact by the various State Rent

Acts and that if a State Rent Act makes provision for

eviction on certain specified grounds, eviction cannot

be resisted on the basis of rights conferred by the

Transfer of Property Act. Section 108(j) of the Transfer

of Property Act stands displaced by Section 11(4)(i) of

the Kerala Buildings (Lease and Rent Control) Act and

is no defence to an action for eviction based on

Section 11(4)(i).”

29. In another judgment reported as R.S. Grewal & Ors. v.

Chander Prakash Soni & Anr.14, the Court was examining a

case where a legatee under a Will was given life interest. It

was argued that creation of a tenancy which will continue

beyond the life of the legatee will amount to transfer of the

interest beyond the life of the legatee. The Court held that

the protection which is conferred upon the tenant against

eviction, except on specified grounds, arises as a

consequence of statutory prescription under rent control

legislation. The Court held as under:

13 (1980) 4 SCC 88

14 (2019) 6 SCC 216

23

“28. A statutory protection granted for the benefit of

the tenants under specific tenancy laws is to be

viewed from a standpoint of protecting the interests of

a particular class. Restrictions on recovery of

possession of the premises let out to the tenants have

been imposed for the benefit of the tenants as a

matter of legislative policy.

29. There is a fallacy in the submission which was

urged on behalf of the appellant. The appellant

postulates that a life interest is personal to the person

who possesses it and the creation of a tenancy which

will enure beyond her life amounts to a transfer of the

life interest. What the submission overlooks is that the

creation of the tenancy was an act of the person

enjoying a life interest in the present case and was an

incident of the authority of that individual to generate

income from the property for her own sustenance. The

creation of a tenancy is an incident of the exercise of

such an authority. The protection which is conferred

upon the tenant against eviction, except on specified

grounds, arises as a consequence of statutory

prescription under rent control legislation. The reason

why the tenant is entitled to occupy the premises

beyond the lifetime of the landlord who created the

tenancy is simply as a result of a statutory enactment,

in this case, the East Punjab Rent Restriction Act,

1949. It is the intervention of a legislative mandate

which enures to the benefit of the tenant. Once this

has taken place, it was not open to the civil court to

entertain a suit for possession founded on the

hypothesis that the tenant is a trespasser.”

30. In another judgment reported as N. Motilal & Ors. v. Faisal

Bin Ali & Anr.15, it was held that even during the period of

contractual tenancy, if the premises are governed by the Rent

Laws, the parties have an option to seek determination of fair

rent. It was held as under:

“14. The Constitution Bench judgment in Raval & Co.

case [Raval & Co. v. K.G. Ramachandran, (1974) 1 SCC

424] as well as the seven-Judge Bench judgment in V.

15 (2020) 13 SCC 667

Dhanapal Chettiar case [V. Dhanapal

Chettiar v. Yesodai Ammal, (1979) 4 SCC 214] are

binding which categorically had laid down that the

application for determination of fair rent can be made

both by the landlord and the tenant which can be

made even during currency of contractual tenancy.

We, thus, find the submission made by the learned

counsel for the appellants in the above regard without

any substance.”

31. In view of the binding decisions of the larger bench and

keeping in view the fact that the judgment of this Court in

Shaha Ratansi Khimji was dealing with the rights of

contractual tenant, the statutory tenant cannot seek

repossession after the demolition of building under Section

108(B)(e) of the TP Act as the rights and liabilities of a

statutory tenant have to be found under the Rent Act alone.

32. The petition for eviction filed by the landlord was withdrawn.

Since the premises are situated within the urban areas

governed by the Rent Act, the tenant has a right to seek

possession only in terms of Section 27 of the Act if the decree

for eviction has been passed by a Court on the ground

specified under clause (j) of the proviso to sub-section (1) of

Section 21. Even if it is assumed that decree of eviction was

passed on the withdrawal of the eviction petition, the tenant

has to seek possession of the premises from the date on

which he delivered vacant possession of the premises to the

landlord. The plaintiff filed first suit claiming right over the

land after demolition of the building but being a statutory

tenant, he had to avail the remedy under the Rent Act as the

provisions of the TP Act are not applicable to the building and

land situated within urban area. In view of the provisions of

the Act, the terms of the TP Act cannot be applied for in

respect of statutory tenants. The High Court has returned a

finding that the plaintiff was a statutory tenant. In view of the

said fact, the remedy of the tenant, if any, has to be found

within four corners of the Rent Act and not under the TP Act.

33. Another argument raised by the tenant was that a notice

under Section 462 of the Act was not served. We do not find

any merit in the said argument. Section 322 of the Act is a

self-contained provision which empowers the Commissioner

for immediate evacuation of the property and any person

disobeying such orders was to be removed by any Police

Officer. Section 462 of the Act is in respect of execution of any

work or to take any measures or to do anything. The works

and the measures mentioned therein are in respect of other

provisions in the statute which contemplate compliance by

the citizens. Section 322 of the Act is an independent

provision. Therefore, the notice under Section 462 of the Act

was not required to be issued. The time for complying with

the order does not arise in the case of a building which was in

dilapidated condition endangering life of the citizens. Thus,

we do not find any merit in the said argument as well.


34. The plaintiff had filed the first suit on 27.1.1995 after the

tenanted premises were demolished. The right to claim

damages for loss of the property including goods and

machines was available to the plaintiff on the said date. In

fact, in the second suit, the plaintiff has pleaded that the

cause of action arose to him on 9.1.1995. The Order II Rule 2

CPC reads thus:

“2. Suit to include the whole claim. – (1) Every suit

shall include the whole of the claim which the plaintiff

is entitled to make in respect of the cause of action;

but a plaintiff may relinquish any portion of his claim

in order to bring the suit within the jurisdiction of any

Court.

(2) Relinquishment of part of claim.—Where a plaintiff

omits to sue in respect of, or intentionally

relinquishes, any portion of his claim, he shall not

afterwards sue in respect of the portion so omitted or

relinquished.

(3) Omission to sue for one of several reliefs .—A

person entitled to more than one relief in respect of

the same cause of action may sue for all or any of

such reliefs; but if he omits, except with the leave of

the Court, to sue for all such reliefs, he shall not

afterwards sue for any relief so omitted.”

35. A perusal of the above Rule would show that every suit shall

include whole of the claim which the plaintiff is entitled to

make in respect of the cause of action. The cause of action is

a bundle of facts and relief of damages is construed to be a

component of such bundle of facts. The plaintiff was conscious

of the fact that he wants to sue for damages which is

evident from his averment in para 9 of the plaint of the first

suit but the plaintiff was required to obtain leave of the Court

before filing suit for damages subsequently. The High Court

has clearly erred in law in holding that the cause of action for

both the suits is different.

36. The cause of action as held in Suraj Rattan Thirani v.

Azamabad Tea Co. Ltd.16 is a bundle of facts which included

the relief of possession as well as the loss which occurred on

account of alleged demolition. This Court held as under:

“29. We consider that the test adopted by the Judicial

Committee for determining the identity of the causes

of action in two suits in Mohammed Khalil Khan v.

Mahbub Ali Mian [75 IA 121] is sound and expresses

correctly the proper interpretation of the provision. In

that case Sir Madhavan Nair, after an exhaustive

discussion of the meaning of the expression “same

cause of action” which occurs in a similar context in

para (1) of Order 2 Rule 2 of the Civil Procedure Code

observed:

“In considering whether the cause of action in the

subsequent suit is the same or not, as the cause of

action in the previous suit, the test to be applied is/are

the causes of action in the two suits in substance —

not technically — identical?”

30. The learned Judge thereafter referred to an earlier

decision of the Privy Council in Soorijomonse Dasee v.

Suddanund [(1873) 12 Beng LR 304, 315] and

extracted the following passage as laying down the

approach to the question:

“Their Lordships are of opinion that the term ‘cause of

action’ is to be construed with reference rather to the

substance than to the form of action….”

Applying this test we consider that the essential

bundle of facts on which the plaintiffs based their title

and their right to relief were identical in the two suits.

16 AIR 1965 SC 295

28

The property sought to be recovered in the two suits

was the same. The title of the persons from whom the

plaintiffs claimed title by purchase, was based on the

same fact…….”

37. In State of Rajasthan v. Swaika Properties17, this Court

held that cause of action is a bundle of facts which taken with

the law applicable to them gives the plaintiff a right to seek

relief against the defendant. The Court held as under:-

“8. The expression “cause of action” is tersely defined

in Mulla's Code of Civil Procedure:

“The ‘cause of action’ means every fact which, if

traversed, it would be necessary for the plaintiff to

prove in order to support his right to a judgment of

the court.”

In other words, it is a bundle of facts which taken with

the law applicable to them gives the plaintiff a right to

relief against the defendant. The mere service of

notice under Section 52(2) of the Act on the

respondents at their registered office at 18-B,

Brabourne Road, Calcutta i.e. within the territorial

limits of the State of West Bengal, could not give rise

to a cause of action within that territory unless the

service of such notice was an integral part of the

cause of action. The entire cause of action culminating

in the acquisition of the land under Section 52(1) of

the Act arose within the State of Rajasthan i.e. within

the territorial jurisdiction of the Rajasthan High Court

at the Jaipur Bench. The answer to the question

whether service of notice is an integral part of the

cause of action within the meaning of Article 226(2) of

the Constitution must depend upon the nature of the

impugned order giving rise to a cause of action. The

notification dated February 8, 1984 issued by the

State Government under Section 52(1) of the Act

became effective the moment it was published in the

Official Gazette as thereupon the notified land became

vested in the State Government free from all

encumbrances. ……………………..”

17 (1985) 3 SCC 217

29

38. The High Court has returned a finding that the Rent Act will

prevail over the Act. However, we are unable to agree with

this observation. Both the statutes are enacted by the State

of Karnataka. The Act deals with the municipal functions

which are wider and welfare-oriented towards the residents of

the area of Corporation, whereas the Rent Act has a limited

application for determining the rights of land owner and tenant.

Both operate in separate spheres as both have different

objectives to be achieved.

39. In Ashoka Marketing Ltd. v. Punjab National Bank18, a

Constitution Bench held that where the literal meaning of the

general enactment covers a situation for which specific

provision is made by another enactment contained in the

earlier Act, it is presumed that the situation was intended to

continue to be dealt with by the specific provision rather than

the later general one. The Court held as under:-

“41. As a result of this comparison it can be said that

certain premises, viz. building or parts of buildings

lying within the limits of the New Delhi Municipal

Committee and the Delhi Cantonment Board and in

urban areas within the limits of the Municipal

Corporation of Delhi, which belong to or are taken on

lease by any of the companies or statutory bodies

mentioned in clauses (2) and (3) of Section 2(e) of the

Public Premises Act and which are in occupation of a

person who obtained possession of the said premises

as a tenant and whose tenancy has expired or has

been terminated but who is continuing in occupation

of the same, would ex-facie fall within the purview of

both the enactments. The question which, therefore,

arises is whether the occupant of such premises can

seek protection available under the provisions of Rent

18 (1990) 4 SCC 406

Control Act and he can be evicted from the premises

only in accordance with the said provisions and

proceedings for eviction of such a person cannot be

initiated under the provisions of the Public Premises

Act.

xx xx xx

49. This means that both the statutes, viz. the Public

Premises Act and the Rent Control Act, have been

enacted by the same legislature, Parliament, in

exercise of the legislative powers in respect of the

matters enumerated in the Concurrent List. We are,

therefore, unable to accept the contention of the

learned Additional Solicitor General that the Public

Premises Act, having been enacted by Parliament in

exercise of legislative powers in respect of matters

enumerated in the Union List would ipso facto

override the provisions of the Rent Control Act

enacted in exercise of the legislative powers in

respect of matters enumerated in the Concurrent List.

In our opinion the question as to whether the

provisions of the Public Premises Act override the

provisions of the Rent Control Act will have to be

considered in the light of the principles of statutory

interpretation applicable to laws made by the same

legislature.

50. One such principle of statutory interpretation

which is applied is contained in the latin maxim :

leges posteriores priores conterarias abrogant (later

laws abrogate earlier contrary laws). This principle is

subject to the exception embodied in the maxim :

generalia specialibus non derogant (a general

provision does not derogate from a special one.) This

means that where the literal meaning of the general

enactment covers a situation for which specific

provision is made by another enactment contained in

the earlier Act, it is presumed that the situation was

intended to continue to be dealt with by the specific

provision rather than the later general one (Bennion,

Statutory Interpretation pp. 433-34).

xx xx xx

55. The Rent Control Act makes a departure from the

general law regulating the relationship of landlord and

tenant contained in the Transfer of Property Act

inasmuch as it makes provision for determination of

standard rent, it specifies the grounds on which a

landlord can seek the eviction of a tenant, it

prescribes the forum for adjudication of disputes

between landlords and tenants and the procedure

which has to be followed in such proceedings. The

Rent Control Act can, therefore, be said to be a special

statute regulating the relationship of landlord and

tenant in the Union territory of Delhi. The Public

Premises Act makes provision for a speedy machinery

to secure eviction of unauthorised occupants from

public premises. As opposed to the general law which

provides for filing of a regular suit for recovery of

possession of property in a competent court and for

trial of such a suit in accordance with the procedure

laid down in the Code of Civil Procedure, the Public

Premises Act confers the power to pass an order of

eviction of an unauthorised occupant in a public

premises on a designated officer and prescribes the

procedure to be followed by the said officer before

passing such an order. Therefore, the Public Premises

Act is also a special statute relating to eviction of

unauthorised occupants from public premises. In other

words, both the enactments, namely, the Rent Control

Act and the Public Premises Act, are special statutes in

relation to the matters dealt with therein. Since, the

Public Premises Act is a special statute and not a

general enactment the exception contained in the

principle that a subsequent general law cannot

derogate from an earlier special law cannot be

invoked and in accordance with the principle that the

later laws abrogate earlier contrary laws, the Public

Premises Act must prevail over the Rent Control Act.

56. We arrive at the same conclusion by applying the

principle which is followed for resolving a conflict

between the provisions of two special enactments

made by the same legislature. We may in this context

refer to some of the cases which have come before

this Court where the provisions of two enactments

made by the same legislature were found to be

inconsistent and each enactment was claimed to be a

special enactment and had a non-obstante clause

giving overriding effect to its provisions.

xx xx xx

32

61. The principle which emerges from these decisions

is that in the case of inconsistency between the

provisions of two enactments, both of which can be

regarded as special in nature, the conflict has to be

resolved by reference to the purpose and policy

underlying the two enactments and the clear

intendment conveyed by the language of the relevant

provisions therein. We propose to consider this matter

in the light of this principle.

xx xx xx

64. It would thus appear that, while the Rent Control

Act is intended to deal with the general relationship of

landlords and tenants in respect of premises other

than government premises, the Public Premises Act is

intended to deal with speedy recovery of possession

of premises of public nature, i.e. property belonging to

the Central Government, or companies in which the

Central Government has substantial interest or

corporations owned or controlled by the Central

Government and certain corporations, institutions,

autonomous bodies and local authorities. The effect of

giving overriding effect to the provisions of the Public

Premises Act over the Rent Control Act, would be that

buildings belonging to companies, corporations and

autonomous bodies referred to in Section 2(e) of the

Public Premises Act would be excluded from the ambit

of the Rent Control Act in the same manner as

properties belonging to the Central Government. The

reason underlying the exclusion of property belonging

to the Government from the ambit of the Rent Control

Act, is that the Government while dealing with the

citizens in respect of property belonging to it would

not act for its own purpose as a private landlord but

would act in public interest. What can be said with

regard to government in relation to property

belonging to it can also be said with regard to

companies, corporations and other statutory bodies

mentioned in Section 2(e) of the Public Premises Act.

In our opinion, therefore, keeping in view the object

and purpose underlying both the enactments viz. the

Rent Control Act and the Public Premises Act, the

provisions of the Public Premises Act have to be

construed as overriding the provisions contained in

the Rent Control Act.”

33

40. In Allahabad Bank v. Canara Bank & Anr19, this Court held

that there can be a situation in law where the same statute is

treated as a special statute vis-à-vis one legislation and again

as a general statute vis-à-vis another legislation. Between

the Act and the Rent Act, the Act is a general statute enacted

as a third tier of local Government administration. The functions

of the Corporation, inter alia, includes the regulation

and maintenance of the land and building, hygiene and

health, public streets and other for a larger section of the inhabitants

falling in the municipal area, whereas the Rent Act

deals with the issues between the landlord and the tenant

conferring right to the landlord to seek eviction and correspondingly

provide protection to the tenant. Therefore, the

finding of the High Court that Rent Act would prevail over the

Act is clearly erroneous as both legislations operate in separate

distinct spheres having different objectives in mind.

41. The finding of the High Court that the building was

demolished without giving clear three days’ notice is partly

correct. The notice was served upon the plaintiff on

6.1.1995 and the building was demolished on 9.1.1995.

Thus, clear three days’ notice was not served upon the

plaintiff. The plaintiff was however aware of the proceedings

initiated by the Corporation on the ground that the building

in question was in dilapidated condition and unsafe for

19 (2000) 4 SCC 406

human inhabitation. The plaintiff had challenged such notice

before the High Court. The High Court had given four weeks’

time to the Corporation to pass a speaking order after giving

an opportunity of hearing to the plaintiff. The building was

inspected by the Deputy Commissioner of the Corporation

and opportunity of hearing was granted to the plaintiff as

well. Therefore, it is not a case where there was any sudden

development leading to the demolition of the building but

the order of demolition was a considerate action passed

after the report of the Court Commissioner was submitted

before the High Court and the Corporation was given time to

finally decide the show cause notice issued on 24.5.1994.

42. In fact, there is three days’ notice from the date of the order

but not from the date of receipt of the notice. This Court in

State of Punjab v. Khemi Ram20 held as under:

“17. The question then is whether communicating the

order means its actual receipt by the concerned

government servant. The order of suspension in

question was published in the Gazette though that

was after the date when the respondent was to retire.

But the point is whether it was communicated to him

before that date. The ordinary meaning of the word

“communicate” is to impart, confer or transmit

information. (Cf. Shorter Oxford English Dictionary ,

Vol. 1, p. 352). As already stated, telegrams, dated

July 31, and August 2, 1958, were dispatched to the

respondent at the address given by him where

communications by Government should be

dispatched. Both the telegrams transmitted or

imparted information to the respondent that he was

suspended from service with effect from August 2,

1958. It may be that he actually received them in or

20 (1969) 3 SCC 28

35

about the middle of August 1958, after the date of his

retirement. But how can it be said that the information

about his having been suspended was not imparted or

transmitted to him on July 31 and August 2, 1958 i.e.

before August 4, 1958, when he would have retired? It

will be seen that in all the decisions cited before us it

was the communication of the impugned order which

was held to be essential and not its actual receipt by

the officer concerned and such communication was

held to be necessary because till the order is issued

and actually sent out to the person concerned the

authority making such order would be in a position to

change its mind and modify it if it thought fit. But

once such an order is sent out, it goes out of the

control of such an authority, and therefore, there

would be no chance whatsoever of its changing its

mind or modifying it. In our view, once an order is

issued and it is sent out to the concerned government

servant, it must be held to have been communicated

to him, no matter when he actually received it. We

find it difficult to persuade ourselves to accept the

view that it is only from the date of the actual receipt

by him that the order becomes effective. If that be the

true meaning of communication, it would be possible

for a government servant to effectively thwart an

order by avoiding receipt of it by one method or the

other till after the date of his retirement even though

such an order is passed and despatched to him before

such date. An officer against whom action is sought to

be taken, thus, may go away from the address given

by him for service of such orders or may deliberately

give a wrong address and thus prevent or delay its

receipt and be able to defeat its service on him. Such

a meaning of the word “communication” ought not to

be given unless the provision in question expressly so

provides. Actual knowledge by him of an order where

it is one of dismissal, may, perhaps, become

necessary because of the consequences which the

decision in The State of Punjab v. Amar

Singh contemplates. But such consequences would

not occur in the case of an officer who has proceeded

on leave and against whom an order of suspension is

passed because in his case there is no question of his

doing any act or passing any order and such act or

order being challenged as invalid.”

36

43. Once the order was passed by the Corporation on 5.1.1995

and was put on the means of communication, the date of

actual receipt of notice is insignificant as the receipt could be

delayed by the recipient, though there is no such attempt or

finding. The wife and daughter of the plaintiff had removed

the goods including sewing machines etc., hence the

damages would include any loss of goods and the machines

which were in the tenanted premises in question. Keeping in

view the fact that the building was demolished within three

days of the receipt of notice, we deem it appropriate to order

the appellant to compensate the plaintiff with the damages of

Rs.5 lakhs. Such amount will be payable to the legal heirs of

the deceased plaintiff in accordance with law. The appellant

shall deposit a sum of Rs. 5 lakhs within a period of two

months before the trial court.

44. Consequently, the order of the High Court dated 28.09.2006

is hereby set aside and both the suits are dismissed, subject

to payment of Rs. 5 lakhs to the legal representatives of the

plaintiff within two months. The appeals are allowed.

.............................................J.

(HEMANT GUPTA)

.............................................J.

(A.S. BOPANNA)

NEW DELHI;

SEPTEMBER 14, 2021.

Print Page

No comments:

Post a Comment