Supreme Court Upholds Constitutional Validity of Haryana Rent Control Act Provision — Exemption for New Buildings Validated. Exemption for new buildings under Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973 is constitutionally valid and does not violate Article 14.

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Case Note & Summary

The Supreme Court addressed the constitutional validity of Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973, which exempted buildings completed after the Act's commencement from its provisions for ten years. The petitioners contended that this created arbitrary discrimination between landlords and tenants of buildings constructed before and after the Act's commencement, violating Article 14 of the Constitution. They argued that the retrospective application of the amendment infringed on tenants' vested rights. The Court dismissed these claims, asserting that the exemption was a legitimate legislative measure aimed at encouraging new construction to address housing shortages. The Court found that the classification based on the date of construction had a rational basis and did not constitute invidious discrimination. It emphasized that the provision was not retrospective, as it applied only to buildings completed after the amendment. The Court upheld the validity of the provision, concluding that it served the public interest by promoting new housing developments. The writ petitions were dismissed without costs.

Headnote

A) Constitutional Law - Discrimination under Article 14 - Validity of Section 1(3) - Haryana Urban (Control of Rent and Eviction) Act, 1973, Section 1(3) - The provision does not create invidious discrimination between landlords and tenants based on the date of construction of buildings. The classification has a rational basis and serves the legislative purpose of encouraging new constructions to alleviate housing shortages. Held that the provision is constitutionally valid (Paras 860-871).

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Issue of Consideration

Whether Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973 is constitutionally valid and whether it operates retrospectively.

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Final Decision

The Supreme Court upheld the constitutional validity of Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973, ruling that it does not violate Article 14 and operates prospectively. The writ petitions were dismissed without costs.

Law Points

  • Constitutional validity
  • Rent Control Legislation
  • Exemption period
  • Discrimination under Article 14
  • Retrospective operation
  • Legislative policy
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Case Details

1985 LawText (SC) (09) 13

Writ Petitions Nos. 8367 and 3939 of 1985

1985-09-18

Amarendra Nath Sen, P.N. Bhagwati, R.S. Pathak

1986 AIR 244, 1985 SCR Supl. (2) 859, 1985 SCC (4) 221, 1985 SCALE (2) 795

S.M. Ashri, Rakesh K. Khanna, Dr. Meera Aggarwal, G.K. Bansal, Prem Malhotra

Mohinder Kumar etc.

State of Haryana and Anr.

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Nature of Litigation

Challenge to the constitutional validity of a provision in the Haryana Urban (Control of Rent and Eviction) Act, 1973.

Remedy Sought

Petitioners sought to declare Section 1(3) unconstitutional.

Filing Reason

Claimed discrimination between landlords and tenants based on the date of construction of buildings.

Issues

Whether Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973 is constitutionally valid. Whether the provision operates retrospectively and affects tenants' vested rights.

Submissions/Arguments

Petitioners argued that the provision creates arbitrary discrimination and violates Article 14. Respondents contended that the classification is rational and serves the legislative purpose of encouraging new construction.

Ratio Decidendi

The Court held that the classification of buildings based on the date of construction has a rational basis and serves the legislative purpose of addressing housing shortages, thus upholding the provision's validity.

Judgment Excerpts

The exemption for a period of 10 years from the operation of the Act allowed to buildings, the construction of which commenced or was completed on or after the date of commencement of the Act, is fair and reasonable. The classification of buildings with reference to the date of commencement of the Act has a rational basis and has a clear nexus with the object to be achieved.

Procedural History

The writ petitions were filed under Article 32 of the Constitution of India challenging the validity of Section 1(3) of the Haryana Urban (Control of Rent and Eviction) Act, 1973.

Acts & Sections

  • Haryana Urban (Control of Rent and Eviction) Act: 1(3)
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