Supreme Court Allows Landlord in Rent Control Exemption Case; Civil Court Jurisdiction Upheld Over Building Constructed After August 1957. Waiver, Res Judicata, and Estoppel Cannot Confer Jurisdiction on Rent Controller Under Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960, Where Building Exempt from Act.

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Case Note & Summary

The litigation concerned a landlord's claim for possession of a building from a tenant, after the landlord had unsuccessfully pursued eviction before the Rent Controller. The Supreme Court of India decided that the building, constructed in 1958, was exempt from the Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960, because the Act did not apply to buildings constructed after 26 August 1957. The Rent Controller therefore lacked jurisdiction, and the landlord's later civil suit was not barred by waiver, res judicata or estoppel. Background: The appellant landlord owned a building constructed sometime in 1958 and let it to the respondent tenant on 1 November 1958 for a three-year monthly lease. After the lease expired on 31 October 1961, the landlord filed an eviction application before the Rent Controller, Chandragiri, under Section 10(2)(i) read with Section 3(1)(a) of the Act, alleging default in payment of rent. The Rent Controller dismissed the application on 30 September 1963. The landlord then issued a notice on 7 October 1963 determining the lease and stating that the building was constructed after 26 August 1957 and was therefore outside the Act; the tenant denied this on 21 October 1963. The landlord's appeal against the Rent Controller's order was dismissed by the Appellate Authority on 17 December 1965. On 20 November 1967, the landlord filed a civil suit for eviction in the District Munsiff's Court, Tirupathi, pleading that the tenant failed to surrender possession after lease expiry, committed defaults in rent, and that the Act did not apply due to construction after the cut-off date. The trial court decreed the suit on 26 March 1969; the first appellate court affirmed on 24 February 1972. The High Court reversed on 5 September 1972, holding that the landlord had waived his right by invoking the Rent Controller earlier and relying on Lachoo Mal v. Radhey Shyam. Legal issues: whether the High Court was correct that the landlord was precluded by waiver, res judicata or estoppel; whether the Rent Controller had jurisdiction; and whether the previous dismissal operated as a bar. Arguments: The appellant contended that the building was exempt, the Rent Controller had no jurisdiction, the earlier proceedings were coram non judice, and the civil court alone could grant relief; he relied on Section 44 of the Evidence Act and Gokul Mandar v. Pudmanund. The respondent argued that by filing before the Rent Controller and pursuing appeal, the appellant waived any exemption and could not approbate and reprobate; he relied on Lachoo Mal. Court's analysis: The Supreme Court held that the Rent Controller lacked jurisdiction because the building was constructed after August 1957. A decree by a court without jurisdiction cannot be res judicata; Section 44 of the Evidence Act supported the appellant. Waiver requires an intentional relinquishment of a known right with voluntary choice and meeting of minds; there can be no waiver of a non-existent right or of jurisdiction by consent. The court distinguished Lachoo Mal, where parties had agreed to waive exemption; here the landlord's earlier application was a mistake and not a voluntary relinquishment. Estoppel cannot confer jurisdiction or create a rent control status; Rent Control Acts operate in rem. The court also noted that want of jurisdiction is distinct from erroneous exercise; absence of a condition necessary for jurisdiction deprives the decision of conclusive effect. Decision: The Supreme Court allowed the appeal, set aside the High Court's judgment, and restored the trial court's decree for possession. The landlord was not disentitled to relief on grounds of waiver, res judicata or estoppel. The civil court had jurisdiction, and the tenant was ordered to deliver possession according to the decree.

Headnote

A) Jurisdiction - Rent Control Exemption - Civil Court Jurisdiction - Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960 (exemption provision, section not specified) - The building was constructed after 26 August 1957, so the Act did not apply and the Rent Controller had no jurisdiction; only the civil court could entertain the eviction suit. Held that the High Court erred in relying on waiver to bar the suit because the Rent Controller was coram non judice. (Paras Not mentioned)

B) Res Judicata - Want of Jurisdiction - Decree of Rent Controller Cannot Be Pleaded as Res Judicata - Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960; Indian Evidence Act, 1872, Section 44 - The Rent Controller lacked jurisdiction to try and decide the matter; its decision had no conclusive effect, and Section 44 of the Evidence Act allowed the appellant to show that the judgment was by a court not competent to deliver it. Held that the earlier dismissal did not bar the civil suit. (Paras Not mentioned)

C) Waiver - Voluntary Relinquishment of Known Right - No Waiver of Non-Existent Right or of Jurisdiction - General principles of waiver; no specific statutory provision - Waiver required an intentional relinquishment of a known right, voluntary choice, meeting of minds, and could not apply to a non-existent right. Filing an application before the Rent Controller by mistake did not constitute waiver because the Act never applied and jurisdiction could not be conferred by consent. Held that the High Court misapplied Lachoo Mal v. Radhey Shyam. (Paras Not mentioned)

D) Estoppel - Status under Rent Control Acts - Neither Estoppel Nor Res Judicata Can Confer Jurisdiction or Control Status - Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960 - Rent Control Acts operate in rem and give a status to premises which cannot be acquired by estoppel or res judicata. Held that the appellant was not estopped from pleading non-applicability of the Act and the civil suit was maintainable. (Paras Not mentioned)

E) Jurisdiction - Want of Jurisdiction vs. Erroneous Exercise - Absence of Condition Necessary to Found Jurisdiction Deprives Order of Conclusive Effect - General procedural law; Halsbury's Laws of England, 3rd Ed. Vol. 15 para 384 - Want of jurisdiction made the whole proceeding coram non judice; the absence of a condition necessary to found jurisdiction to make an order or give a decision deprived the order or decision of any conclusive effect. Held that the Rent Controller's order was without jurisdiction and could not support waiver, res judicata or estoppel. (Paras Not mentioned)

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Issue of Consideration

Whether the appellant landlord was precluded from claiming relief in civil court by principles of waiver, res judicata or estoppel after his earlier eviction application before the Rent Controller was dismissed; whether the Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960 applied to a building constructed in 1958 given the exemption for buildings constructed after August 1957; whether the Rent Controller had jurisdiction and whether its dismissal had conclusive effect.

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Final Decision

Appeal allowed; Supreme Court set aside the High Court judgment and restored the decree of the trial court and first appellate court in favour of the appellant landlord for possession. Held that the appellant was not disentitled to relief on grounds of waiver, res judicata or estoppel; Rent Controller had no jurisdiction; civil court alone had jurisdiction.

Law Points

  • Waiver is an intentional relinquishment of a known right or advantage
  • voluntary choice is the essence of waiver
  • there can be no waiver of a non-existent right
  • one cannot waive jurisdiction by consent
  • Rent Controller had no jurisdiction over building constructed after August 1957
  • civil court alone had jurisdiction
  • res judicata cannot be pleaded if court lacked jurisdiction
  • Section 44 of Evidence Act allows showing judgment by court not competent
  • estoppel cannot confer jurisdiction or create rent control status
  • Rent Control Acts operate in rem
  • want of jurisdiction makes proceeding coram non judice
  • absence of condition necessary to found jurisdiction deprives order of conclusive effect
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Case Details

1974 LawText (SC) (09) 12

Civil Appeal No. 1228 of 1973

1974-09-10

A.N. Ray, V.R. Krishna Iyer

1974 AIR 2089, 1975 SCR (2) 32

P. Ramachandra Reddy, P. P. Rao, T.V.S.N. Chari, A. K. Ganguli, K. Jayaram

P. Dasa Muni Reddy

P. Appa Rao

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Nature of Litigation

Civil suit for eviction of tenant from a building exempt from rent control legislation, after earlier Rent Controller proceedings were dismissed.

Remedy Sought

Landlord appellant sought decree for possession of the building and eviction of the tenant respondent.

Filing Reason

Tenant did not surrender possession after expiry of lease and defaulted in rent; building was constructed after 26 August 1957, so the Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960 did not apply; earlier Rent Controller proceedings were without jurisdiction.

Previous Decisions

Rent Controller dismissed eviction application on 30-09-1963; Appellate Authority dismissed appeal on 17-12-1965; civil suit decreed by District Munsiff on 26-03-1969; Subordinate Judge dismissed tenant's appeal on 24-02-1972; High Court reversed and dismissed suit on 05-09-1972.

Issues

Whether the appellant landlord was precluded by waiver from claiming eviction in civil court after his earlier application before the Rent Controller was dismissed. Whether the Rent Controller had jurisdiction over the building constructed in 1958 under the Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960. Whether the Rent Controller's dismissal operated as res judicata or estoppel against the civil suit.

Submissions/Arguments

Appellant argued that the building was constructed after 26 August 1957, so the Act did not apply; Rent Controller had no jurisdiction; earlier proceedings were coram non judice; civil court alone had jurisdiction; not barred by waiver, res judicata or estoppel; relied on Section 44 of the Evidence Act and Gokul Mandar v. Pudmanund. Respondent argued that appellant had invoked Rent Controller and pursued appeal, thereby waiving exemption; could not approbate and reprobate; relied on Lachoo Mal v. Radhey Shyam; denied that building was constructed after 26 August 1957.

Ratio Decidendi

Since the building was constructed after 26 August 1957, the Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960 did not apply; the Rent Controller lacked jurisdiction, and its order was coram non judice. Neither waiver, res judicata nor estoppel could confer jurisdiction or bar the civil suit. Filing an earlier application before a tribunal without jurisdiction by mistake did not amount to intentional relinquishment of a known right; there can be no waiver of a non-existent right.

Judgment Excerpts

Waiver is an intentional relinquishment of a known right or advantage, benefit, claim or privilege which except for such waiver the party would have enjoyed. The Rent Controller had no jurisdiction in respect of the building because of the date of its construction, and only the civil court had jurisdiction. A status of control of premises under the Rent Control Acts cannot be acquired either by estoppel or by res judicata. Just as the courts normally do not permit contracting out of the Acts so there can be no contracting in.

Procedural History

The appellant filed eviction application before Rent Controller Chandragiri under Section 10(2)(i) read with Section 3(1)(a) of the Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960; Rent Controller dismissed on 30-09-1963. Appellant issued notice on 07-10-1963 determining lease and claiming exemption; respondent replied on 21-10-1963 denying exemption. Appellant's appeal to Appellate Authority dismissed on 17-12-1965. Appellant filed civil suit on 20-11-1967 in District Munsiff Tirupathi; suit decreed 26-03-1969. Respondent's appeal dismissed by Subordinate Judge on 24-02-1972. High Court in Second Appeal No. 256 of 1972 reversed and dismissed suit on 05-09-1972. Supreme Court allowed appeal by special leave in Civil Appeal No. 1228 of 1973.

Acts & Sections

  • Andhra Pradesh Buildings (Lease, Rent and Eviction Control) Act, 1960: Section 10(2)(i), Section 3(1)(a)
  • Uttar Pradesh Rent Control and Eviction Act: Section 1-A
  • Indian Evidence Act, 1872: Section 44
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