Supreme Court Dismisses Appeal in Rent Control Jurisdiction Dispute - Civil Court Lacks Jurisdiction Over Eviction of Statutory Tenant Under Haryana Rent Act. The Court held that the Civil Court has no jurisdiction to entertain a suit for possession as the subject property is governed by the Haryana (Control of Rent & Eviction) Act, 1973, and the respondents are statutory tenants who can only be evicted under Section 13 of that Act.

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Case Note & Summary

The appeal arose from a dispute over jurisdiction in a possession suit concerning leased land in Kaithal, Haryana. The appellants, as owners, had leased the property to Burmah Shell Oil Storage Distributing Company Ltd. for 20 years via a 1958 lease deed, with one renewal option exercised, expiring in 1998. After expiry, they served a notice and filed a civil suit for possession in 1998, claiming the respondents were trespassers. The respondents, successors to the lessee via the Burmah Shell (Acquisition of Undertakings) Act, 1976, contended that the Haryana (Control of Rent & Eviction) Act, 1973 applied, making them statutory tenants and barring Civil Court jurisdiction, with eviction only possible under Section 13 of that Act. The trial court decreed in favor of the appellants, but the appellate court and High Court reversed, holding Civil Court jurisdiction barred. The core legal issue was whether the Civil Court could entertain the suit or if jurisdiction was ousted by the Rent Act. The appellants argued that the 1976 Act's overriding provision excluded the Rent Act, while the respondents relied on statutory tenancy under the Rent Act. The Court analyzed that the property fell within municipal limits, making the Rent Act applicable, and the respondents, as statutory tenants, could only be evicted under its provisions. It rejected the overriding effect argument, noting the Rent Act's applicability was undisputed. The Court upheld the lower courts' findings, dismissing the appeal and confirming that the Civil Court lacked jurisdiction, with the remedy lying before the Rent Controller under the Haryana Rent Act.

Headnote

A) Civil Procedure - Jurisdiction of Civil Court - Bar of Jurisdiction - Haryana (Control of Rent & Eviction) Act, 1973 - The appellants filed a civil suit for possession after expiry of lease period, claiming respondents were trespassers - The Court held that the Civil Court has no jurisdiction as the subject property is governed by the Haryana Rent Act, 1973, and the respondents are statutory tenants who can only be evicted under Section 13 of that Act - The bar under the Rent Act ousts Civil Court jurisdiction (Paras 1-13).

B) Property Law - Lease and Tenancy - Statutory Tenancy - Haryana (Control of Rent & Eviction) Act, 1973, Section 2(h) - The lease expired after renewal, and respondents continued in possession - The Court found that the respondents became statutory tenants under the Act, and their status as tenants is protected, requiring eviction proceedings under the Rent Act, not a civil suit (Paras 5-13).

C) Interpretation of Statutes - Overriding Effect of Special Legislation - Burmah Shell (Acquisition of Undertakings) Act, 1976, Section 11 - Appellants argued that Section 11 of the 1976 Act overrides the Haryana Rent Act, 1973 - The Court did not accept this, holding that the Rent Act applies to the subject property, and the 1976 Act does not exclude its provisions regarding tenancy and eviction (Paras 12-13).

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Issue of Consideration

Whether the Civil Court has jurisdiction to entertain a suit for possession of rented land or whether the jurisdiction is barred and the remedy lies only before the Rent Controller under the Haryana (Control of Rent & Eviction) Act, 1973

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Final Decision

The Supreme Court dismissed the appeal, upholding that the Civil Court has no jurisdiction to entertain the suit for possession, and the remedy lies before the Rent Controller under the Haryana (Control of Rent & Eviction) Act, 1973

Law Points

  • Jurisdiction of Civil Court barred in landlord-tenant disputes governed by rent control legislation
  • statutory tenancy under Haryana (Control of Rent & Eviction) Act
  • 1973
  • overriding effect of special central legislation not applicable to rent control matters
  • eviction only under Section 13 of Haryana Rent Act
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Case Details

2022 Lawtext (SC) (1) 97

CIVIL APPEAL NO(s). 7517 OF 2012

2022-01-28

Rastogi, J.

Shri Manoj Swarup, Senior Advocate, Shri V. Giri, Senior Advocate

SUBHASH CHANDER & ORS.

M/S BHARAT PETROLEUM CORPORATION LTD.(BPCL) & ANR.

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Nature of Litigation

Appeal against judgment holding Civil Court has no jurisdiction to entertain suit for possession of rented land

Remedy Sought

Appellants sought decree for possession and recovery of mesne profits from respondents

Filing Reason

Appellants filed civil suit for possession after lease expiry, claiming respondents were trespassers

Previous Decisions

Trial Court decreed in favor of appellants on 13 March 2002; Appellate Court set aside on 28 March 2006, holding Civil Court has no jurisdiction; High Court dismissed second appeal on 8 July 2009; Rent Controller dismissed ejectment petition on 3 May 1986, affirmed on appeal on 18 March 1987

Issues

Whether the Civil Court has jurisdiction to entertain the suit for possession or whether jurisdiction is barred under the Haryana (Control of Rent & Eviction) Act, 1973

Submissions/Arguments

Appellants argued that Burmah Shell (Acquisition of Undertakings) Act, 1976 has overriding effect excluding Haryana Rent Act, and respondents became trespassers after lease expiry Respondents argued that they are statutory tenants under Haryana Rent Act, and eviction only under Section 13, barring Civil Court jurisdiction

Ratio Decidendi

Where a property is governed by rent control legislation like the Haryana (Control of Rent & Eviction) Act, 1973, and the tenant is a statutory tenant, the Civil Court's jurisdiction is barred, and eviction can only be pursued under the specific provisions of that Act, such as Section 13, regardless of other overriding statutes.

Judgment Excerpts

The instant appeal has been preferred by the appellants/plaintiffs assailing the judgment dated 8 th July, 2009, upholding the judgment and decree of the Court of appeal dated 28 th March, 2006 holding that the Civil Court has no jurisdiction to entertain and try the suit for possession The dispute between the parties pertains to as to whether the jurisdiction of the Civil Court is barred and the petition for possession filed by the appellants/plaintiffs will lie before the Rent Controller under the Act 1973 The Court held that the Civil Court has no jurisdiction as the subject property is governed by the Haryana Rent Act, 1973, and the respondents are statutory tenants who can only be evicted under Section 13 of that Act

Procedural History

Appellants filed civil suit for possession on 7 August 1998; trial court decreed in favor on 13 March 2002; appellate court set aside on 28 March 2006; High Court dismissed second appeal on 8 July 2009; Supreme Court heard appeal and dismissed it

Acts & Sections

  • Haryana (Control of Rent & Eviction) Act, 1973: Section 2(h), Section 13
  • Burmah Shell (Acquisition of Undertakings) Act, 1976: Section 5(2), Section 7(3), Section 11
  • Transfer of Property Act, 1882: Section 106
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002:
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