Supreme Court Quashes Requisition Order in U.P. Accommodation Requisition Act Case for Lack of Inquiry and Natural Justice Violation. Owner in Actual Occupation of Premises Could Not Be Deprived Without District Magistrate Determining Existence of Suitable Alternative Accommodation Under Second Proviso to Section 3 of U.P. (Temporary) Accommodation Requisition Act, 1947, and Without Hearing Under Audi Alteram Partem.

In Favour of Accused
  • 2
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner owned premises bearing No. 1-A Beli Road, Allahabad, which had been occupied by Justice Oak since 1950 and later as Chief Justice of Allahabad High Court until his retirement in May 1971. The petitioner lived at 101/108 Katra Bakhtiari, described as congested, unhygienic, and requiring reconstruction costing about Rs. 40,000. In November 1970, the petitioner applied under Rule 6 of the U.P. (Temporary) Control of Rent and Eviction Act, 1947 for release of the Beli Road premises after Justice Oak's retirement, undertaking to vacate the other house. The Chief Justice recommended the release, but the District Magistrate rejected the application on 3 May 1971. The State Government stayed all allotment proceedings on 6 May 1971. After Justice Oak vacated in May 1971, he delivered possession to the petitioner, who moved into the premises and informed the Rent Controller. On 8 July 1971, the District Magistrate passed an order of requisition under Section 3 of the U.P. (Temporary) Accommodation Requisition Act, 1947, requisitioning the premises for the residence of Justice D. S. Mathur for three years or earlier if the purpose was exhausted. The order recited that the owner was said to be in possession but living in his own house at Katra Bakhtiari and so no alternative accommodation needed to be provided. The petitioner challenged this order under Article 32. The core legal issues were whether the second proviso to Section 3 applied to the petitioner in actual occupation, whether the District Magistrate had to hold an inquiry and hear the petitioner before requisitioning, and whether the petitioner's occupation was unlawful under Section 7 of the Eviction Act. The petitioner argued that no notice or inquiry was held, no suitable alternative accommodation was provided, the Katra Bakhtiari house was unfit for habitation, and the deprivation of property without hearing violated fundamental rights. The State contended that the second proviso did not apply because the petitioner was not in actual occupation or his occupation was unlawful; the District Magistrate's opinion was subjective and required no inquiry. The Supreme Court, speaking through Ray J., rejected the State's contentions. Section 7 of the Eviction Act only required notices of vacancy and empowered the District Magistrate to control letting; it did not bar a landlord from taking possession after a tenant vacated. Thus the petitioner's occupation was lawful and actual. The second proviso to Section 3 of the Requisition Act prohibited requisitioning accommodation in actual occupation unless the District Magistrate formed an opinion that suitable alternative accommodation existed or had been provided. The existence of alternative accommodation is a question of fact, and the opinion cannot be formed by imagination. The District Magistrate had to hold an inquiry and give the occupant an opportunity to be heard. Relying on A. K. Kraipak v. Union of India, the Court held that the principles of natural justice apply to administrative inquiries affecting rights, and deprivation of property required compliance with audi alteram partem. The District Magistrate's recital that no alternative accommodation was needed because the petitioner lived elsewhere was factually incorrect and made without inquiry. The Supreme Court allowed the writ petition and quashed the requisition order. The Court held that the order was invalid for failure to hold an inquiry, non-application of mind, and violation of natural justice. The District Magistrate was required to determine the existence of suitable alternative accommodation after due inquiry and opportunity of hearing before any future requisition.

Headnote

A) Constitutional Law - Natural Justice - Audi Alteram Partem - Constitution of India, 1950, Article 32; U.P. (Temporary) Accommodation Requisition Act, 1947, Section 3, second proviso - Requisition of premises in actual occupation affects right to property; before depriving occupant, District Magistrate must hold inquiry and give opportunity to be heard; opinion cannot be formed without ascertaining facts - Held that District Magistrate failed to comply with principles of natural justice by not holding inquiry into alternative accommodation (Pages 408-410).

B) Property Law - Requisition of Accommodation - Actual Occupation and Alternative Accommodation - U.P. (Temporary) Accommodation Requisition Act, 1947, Section 3, second proviso - Second proviso prohibited requisitioning accommodation in actual occupation unless District Magistrate formed opinion that suitable alternative accommodation existed or had been provided; existence of alternative accommodation is a question of fact requiring inquiry; recital that owner lived elsewhere insufficient - Held that order of requisition without such inquiry was invalid (Pages 408-410).

C) Rent Control and Eviction - Landlord's Right to Possession - Section 7 of U.P. (Temporary) Control of Rent and Eviction Act, 1947 - Section 7 did not bar landlord from taking possession after tenant vacated; landlord's occupation was lawful; District Magistrate's contention of unlawful occupation rejected - Held that petitioner was in actual lawful occupation of the premises (Pages 407-408).

D) Administrative Law - Subjective Satisfaction vs. Objective Inquiry - U.P. (Temporary) Accommodation Requisition Act, 1947, Section 3 - Statutory opinion must be based on ascertainable facts; District Magistrate cannot determine alternative accommodation without investigation and hearing; principle in A. K. Kraipak v. Union of India followed - Held that District Magistrate's order suffered from non-application of mind and violation of natural justice (Pages 409-410).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the second proviso to Section 3 of the U.P. (Temporary) Accommodation Requisition Act, 1947 applied to the petitioner in actual occupation; whether the District Magistrate was required to hold an inquiry and give an opportunity of hearing before requisitioning the premises; whether the petitioner's occupation was unlawful under Section 7 of the U.P. (Temporary) Control of Rent and Eviction Act, 1947

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the writ petition and quashed the order of the District Magistrate dated 11 July 1971 requisitioning the petitioner's premises. The Court held that the petitioner was in actual lawful occupation of the premises, the second proviso to Section 3 of the U.P. (Temporary) Accommodation Requisition Act, 1947 applied, and the District Magistrate had to form an opinion regarding suitable alternative accommodation after holding an inquiry and giving an opportunity of hearing. The requisition order was invalid for failure to comply with natural justice and non-ascertainment of facts.

Law Points

  • A District Magistrate cannot requisition accommodation in actual occupation without forming opinion based on inquiry that suitable alternative accommodation exists
  • opinion must be based on facts
  • not subjective imagination
  • principles of natural justice and audi alteram partem apply to administrative inquiries affecting property rights
  • Section 7 of U.P. (Temporary) Control of Rent and Eviction Act
  • 1947 does not bar landlord from taking possession after tenant vacates
  • second proviso to Section 3 of U.P. (Temporary) Accommodation Requisition Act
  • 1947 protects actual occupant
Subscribe to unlock Law Points Subscribe Now

Case Details

1972 LawText (SC) (02) 32

Writ Petition No. 244 of 1971

1972-02-04

A.N. Ray, S.M. Sikri (CJ), A.N. Grover, D.G. Palekar, M. Hameedullah Beg

1972 AIR 896, 1972 SCR (3) 405

V. M. Tarkunde, K. L. Hathi, P. C. Kapur, G. N. Dikshit, O. P. Rana

Daud Ahmed

District Magistrate, Allahabad & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 32 challenging order of District Magistrate requisitioning petitioner's premises under Section 3 of U.P. (Temporary) Accommodation Requisition Act, 1947

Remedy Sought

Petitioner sought quashing of requisition order dated 11 July 1971 and protection from deprivation of possession without inquiry and alternative accommodation

Filing Reason

District Magistrate ordered requisition of petitioner's premises at 1-A Beli Road, Allahabad for residence of Mr. Justice D. S. Mathur, without holding inquiry or providing alternative accommodation, despite petitioner being in actual occupation

Previous Decisions

District Magistrate rejected petitioner's application for release under Rule 6 on 3 May 1971; State Government stayed all proceedings for allotment on 6 May 1971; District Magistrate passed requisition order on 8 July 1971 (impugned order dated 11 July 1971)

Issues

Whether the second proviso to Section 3 of the U.P. (Temporary) Accommodation Requisition Act, 1947 applied to the petitioner in actual occupation, requiring formation of opinion about suitable alternative accommodation Whether the District Magistrate was required to hold an inquiry and give opportunity of hearing under natural justice before requisitioning premises in actual occupation Whether the petitioner's occupation of the premises was unlawful and barred by Section 7 of the U.P. (Temporary) Control of Rent and Eviction Act, 1947

Submissions/Arguments

Petitioner argued that no notice of inquiry was given, no suitable alternative accommodation was provided, the Katra Bakhtiari house was unfit for habitation, and deprivation of property without hearing violated fundamental rights State contended that the second proviso was not applicable because the petitioner was not in actual occupation or his occupation was unlawful; the District Magistrate's opinion was subjective and did not require any inquiry

Ratio Decidendi

When a statute empowers requisition of accommodation in actual occupation, the authority must comply with the condition precedent of forming an opinion, based on inquiry and facts, that suitable alternative accommodation exists or has been provided. The principle of audi alteram partem applies to administrative decisions affecting property rights, and the existence of alternative accommodation cannot be determined by subjective satisfaction without hearing the occupant. Section 7 of the U.P. (Temporary) Control of Rent and Eviction Act, 1947 does not prohibit a landlord from taking possession after a tenant vacates.

Judgment Excerpts

Provided further that no accommodation which is in the actual occupation of any person shall be requisitioned unless the District Magistrate is further of the opinion that suitable alternative accommodation exists for his needs or has been provided to him The District Magistrate could not form an opinion by imagination. Opinion is to be formed on certain facts. Section 7 does not contain any impediment and bar to the landlord taking possession of the premises after the tenant has vacated. It will not be correct to say that without holding an enquiry and giving an opportunity to the Petitioner in that behalf the District Magistrate will be in a position to ascertain as to whether alternative accommodation for the petitioner exists.

Procedural History

Petitioner owned premises 1-A Beli Road, Allahabad; Justice Oak occupied from 1950/1955 until retirement in May 1971; petitioner applied under Rule 6 of Eviction Act in November 1970 for release; District Magistrate rejected application on 3 May 1971; State Government stayed allotment proceedings on 6 May 1971; Justice Oak vacated and delivered possession to petitioner in May 1971; petitioner informed Rent Controller; District Magistrate passed requisition order on 8 July 1971 (impugned order dated 11 July 1971) for residence of Justice D.S. Mathur; petitioner filed writ petition under Article 32 challenging the order.

Acts & Sections

  • U.P. (Temporary) Accommodation Requisition Act, 1947: Section 3, second proviso
  • U.P. (Temporary) Control of Rent and Eviction Act, 1947: Section 7, Section 7-F
  • Constitution of India, 1950: Article 32
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Recovery Suit by Cotton Corporation Against Textile Mill for Unpaid Price of Imported Cotton. Court holds that the plaintiff is entitled to recover the principal sum with interest at 6% p.a. from the date of suit till payment...
Related Judgement
High Court Bombay High Court Grants Bail to Accused in NDPS Case Due to Mixed Contraband and Sampling Violation — Ganja Definition Requires Separation of Neutral Material for Quantity Determination.