Supreme Court Upholds Tenants in Rent Control Revision, Sets Aside High Court's Reappreciation of Evidence. High Court's Revision Under Section 26(c) of Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 Cannot Reappreciate Concurrent Findings of Fact Absent Jurisdictional or Material Procedural Error.

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Case Note & Summary

This appeal arose from a landlord-tenant dispute under the Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954. The landlords, respondents herein, sought eviction of the tenants, appellants herein, from premises situated at Latur on two grounds: default in payment of rent and bona fide personal requirement to open a hardware shop at Latur. The landlords already had a hardware shop and residence at Udgir. The Rent Controller dismissed the eviction application, finding no default in rent and no bona fide requirement. The landlords' appeal before the Assistant Judge was also dismissed, with both lower authorities concurrently holding that landlords failed to establish bona fide requirement for own use and occupation. Aggrieved, the landlords filed a revision application under Section 26 of the Act before the High Court of Bombay. The High Court examined the reasons of the Rent Controller and Assistant Judge and concluded that both courts had acted illegally because there was no cogent reason to reject the testimony of the first petitioner. The High Court held that the landlords had sufficiently proved their desire to start hardware business at Latur and ordered delivery of possession. The tenants then appealed to the Supreme Court by special leave. The core legal issue was the scope of revisional power under Section 26(c) of the Act and whether the High Court could reappreciate evidence to reverse concurrent findings of fact. The appellants contended that the High Court erred in jurisdiction because revisional power is narrower than appellate power and similar to Section 115 of the Code of Civil Procedure, 1908. The respondents relied on the High Court's reasoning that the evidence supported bona fide requirement. The Supreme Court analyzed the three-tier machinery under the Act: Rent Controller conducts summary inquiry, District Judge hears first appeal with power of further inquiry, and High Court exercises revision under Section 26. The Court held that appellate power is different from revisional power, and absent clear provision, revision is narrower. Comparing Section 26 with Section 115 CPC, the Court found no substantial difference in content. Relying on Privy Council and Supreme Court precedents, it reiterated that Section 115 CPC applies to jurisdiction alone—irregular exercise, non-exercise, or illegal assumption—and is not directed against conclusions of law or fact where no jurisdictional question is involved. Under Section 26(c), the High Court must see whether there is an error of jurisdiction or manifest error of procedure causing gross injustice. The High Court in reappreciating evidence to differ from concurrent conclusions made an error of jurisdiction and exceeded its power. The Supreme Court set aside the High Court's judgment and allowed the appeal, resulting in restoration of the lower orders dismissing eviction. Parties bore their own costs.

Headnote

A) Rent Control - Revisional Power - Scope of Section 26(c) - Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954, Sections 24, 25, 26 - The High Court's revisional jurisdiction under Section 26(c) is narrower than appellate power and analogous to Section 115 CPC; it cannot reappreciate evidence to reverse concurrent findings of fact unless there is jurisdictional error or manifest procedural irregularity causing gross injustice. The Court held that the High Court exceeded its jurisdiction by re-evaluating the landlords' bona fide requirement evidence and setting aside the concurrent findings of the Rent Controller and Assistant Judge. (Paras 1-9)

B) Civil Procedure - Revisional Jurisdiction - Section 115 Code of Civil Procedure, 1908 - Section 115 applies to jurisdiction alone, irregular exercise or non-exercise of it, or illegal assumption of it; it is not directed against conclusions of law or fact where jurisdiction is not involved. The Court relied on Privy Council and Supreme Court precedents including Rajah Amir Hassen Khan, Balakrishna Udayar, Keshardeo Chamria, and D.L.F. Housing to hold that Section 26(c) must be interpreted similarly, limiting High Court's power. (Paras 1-9)

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Issue of Consideration

Scope of Section 26(c) of Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954; whether High Court in revision can reappreciate evidence and interfere with concurrent findings of fact; comparative scope with Section 115 Code of Civil Procedure, 1908.

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Final Decision

Appeal allowed; judgment of High Court set aside; parties bear their own costs.

Law Points

  • Revisional power is narrower than appellate power
  • Section 26 of Hyderabad Houses (Rent
  • Eviction and Lease) Control Act
  • 1954 is similar to Section 115 CPC
  • High Court in revision cannot reappreciate evidence to differ from concurrent findings of fact
  • Section 115 CPC applies to jurisdiction alone
  • irregular exercise or non-exercise or illegal assumption
  • not directed against conclusions of law or fact where no jurisdiction question involved
  • Under Section 26(c) High Court can only interfere for error of jurisdiction or manifest procedural error causing gross injustice
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Case Details

1974 LawText (SC) (12) 19

Civil Appeal No. 1586 of 1974

1974-12-03

P.K. Goswami, V.R. Krishna Iyer, A.C. Gupta

1975 AIR 794, 1975 SCR (2) 890, 1975 SCC (1) 25

M. N. Phadke, A. G. Ratnaparkhi, S. Balakrishnan, N. M. Ghatate

Shaik Jaffar Shaik Mahmood & Ors.

Mohd. Pasha Hakkani Sahab & Ors.

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Nature of Litigation

Landlord-tenant eviction dispute under Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954.

Remedy Sought

Landlords sought eviction of tenants on grounds of default in payment of rent and bona fide personal requirement for opening hardware shop at Latur.

Filing Reason

Landlords alleged tenants defaulted in rent and they required premises for personal occupation; after initial dismissals, landlords filed revision before High Court.

Previous Decisions

Rent Controller and Assistant Judge concurrently dismissed eviction; Bombay High Court in Revision Application No. 136 of 1968 allowed revision and ordered possession.

Issues

Scope of Section 26(c) of Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 Whether High Court in revision can reappreciate evidence and reverse concurrent findings of fact Comparative scope of revisional power under Section 26(c) and Section 115 Code of Civil Procedure, 1908

Submissions/Arguments

Appellants contended High Court acted without jurisdiction in reappreciating evidence under Section 26(c), as revisional power is narrower than appellate and similar to Section 115 CPC; concurrent findings of fact should not be disturbed. Respondents relied on High Court's reasoning that there was no cogent reason to reject the testimony of the first petitioner and that bona fide requirement was sufficiently proved.

Ratio Decidendi

Revisional power under Section 26(c) of Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 is narrower than appellate power and analogous to Section 115 CPC; High Court cannot reappreciate evidence or interfere with concurrent findings of fact unless there is jurisdictional error or manifest procedural irregularity causing gross injustice.

Judgment Excerpts

section 115, Civil Procedure Code, 'applies to jurisdiction alone, the irregular exercise or the non-exercise of it, or the illegal assumption of it'. The section is not directed against conclusions of law or fact in which the question of jurisdiction is not involved. The High Court cannot sit in appeal, as it has done in this case, over the orders of the original and the appellate authority in order to reappreciate the evidence in exercising its power of revision under section 26 of the Act.

Procedural History

Landlords filed eviction application before Rent Controller; Rent Controller dismissed it; landlords appealed to Assistant Judge, which dismissed; landlords filed Revision Application No. 136 of 1968 under Section 26 of the Act before the High Court of Bombay; High Court allowed revision and directed delivery of possession; tenants appealed by special leave to Supreme Court.

Acts & Sections

  • Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954: 21, 24, 25, 26
  • Code of Civil Procedure, 1908: 115
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