Supreme Court Revokes Special Leave in Rent Control Case for Misleading Court. Article 136 Special Leave Petition Must Be Filed with Clean Hands; Tenant Withheld Fact of Withdrawal of Rs 400 Deposit, Affecting Ejectment Decree.

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Case Note & Summary

The Supreme Court of India considered whether special leave to appeal granted under Article 136 of the Constitution should be revoked because the appellant had procured it by misleading the Court. The dispute arose from a rent control ejectment proceeding between a tenant and a landlord under the Bombay Rents and Lodging House Rates (Control) Act, 1947. The tenant had deposited Rs 400 in court in 1954 in connection with an earlier appeal, but withdrew that amount on January 19, 1957, before the trial court decided the second ejectment suit. The trial court dismissed the landlord's second suit for ejectment, holding that the tenant had deposited sufficient rent including the Rs 400. The first appellate court reversed that decision and ordered ejectment, excluding the Rs 400 because the tenant had withdrawn it. In revision, the High Court accepted the tenant's contention that there was no evidence on record showing withdrawal, but dismissed the revision petition on the ground that the tenant had disentitled himself to discretionary relief. The tenant then filed a special leave petition before the Supreme Court, quoting a long extract from the High Court judgment regarding the deposit and arguing that the High Court had correctly found no withdrawal and that he was not in arrears. He affirmed on oath that the petition concealed nothing and that all facts stated were true. At the hearing of the appeal, it was common ground that the Rs 400 had in fact been withdrawn by the tenant, and a certified extract from the District Court supported this fact. The Supreme Court found that the special leave petition deliberately withheld this material information and attempted to create an impression that the High Court's finding about withdrawal was correct. The Court held that under Article 136, its jurisdiction is discretionary and a party invoking it must come with clean hands. If a party obtains leave by false or misleading statements or by withholding material information, the Court may revoke the leave even at the hearing of the appeal. The Court concluded that the tenant had been disingenuous with the Court by raising a point of law on a suppositious state of facts. Accordingly, the Supreme Court vacated the special leave to appeal, without entering into the merits of the rent control interpretation, and the appeal was not entertained.

Headnote

A) Constitutional Law - Special Leave to Appeal - Article 136, Constitution of India - Discretionary jurisdiction - Supreme Court may revoke special leave if obtained by suppression of material facts - Party invoking Article 136 must come with clean hands; false or misleading statements warrant revocation even at hearing - Held that special leave granted was procured by appellant without disclosing withdrawal of Rs 400, hence vacated (Paras 1-9).

B) Rent Control - Ejectment - Bombay Rents and Lodging House Rates (Control) Act, 1947, Section 12(1), Section 12(3)(b) - Tenant's deposit and withdrawal of rent - Appellate court excluded Rs 400 because already withdrawn, leading to ejectment; High Court assumed discretion to refuse relief but dismissed revision - Court did not decide merits because leave revoked; held substantial question of law cannot be raised on false factual premise (Paras 1-9).

C) Legal Ethics - Duty of Disclosure - Clean Hands Doctrine - A party must not overreach or mislead court by false statements or withholding true information - Appellant swore affidavit that petition concealed nothing though he knew of withdrawal; that constituted disingenuous conduct - Held that leave recalled due to deliberate attempt to create false impression (Paras 1-9).

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Issue of Consideration

Whether special leave to appeal granted under Article 136 of the Constitution should be vacated because it was procured by the appellant by suppressing material facts and misleading the Court.

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Final Decision

The Supreme Court vacated the special leave to appeal because it had been procured by the appellant without disclosing all material facts; the petition concealed the withdrawal of Rs 400 and attempted to create a false impression that the High Court's finding was correct. Accordingly, the appeal was not entertained on merits.

Law Points

  • Exercise of jurisdiction under Article 136 is discretionary
  • party must come with clean hands
  • leave procured by false statements or suppression of material facts can be revoked
  • substantial question of law cannot be based on false factual premise
  • court may revoke leave even at hearing.
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Case Details

1963 LawText (SC) (05) 20

Civil Appeal No. 692 of 1962

1963-05-01

J.C. Shah, A.K. Sarkar, M. Hidayatullah

1964 AIR 345, 1964 SCR (3) 480

J. P. Mehta, Aziz Mushabber Ahmadi, J. B. Dadachanji, O. C. Mathur, Ravinder Narain, Vithal B. Patel, I. N. Shroff

Rajabhai Abdul Rehman Munshi

Vasudev Dhanjibhai Mody

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Nature of Litigation

Civil appeal by special leave against a High Court order dismissing a revision petition in an ejectment suit under rent control law; the special leave was subsequently revoked for suppression of material facts.

Remedy Sought

The appellant/tenant sought special leave to appeal against the High Court order refusing to interfere with an ejectment decree; the Supreme Court considered revocation of that leave for misleading the Court.

Filing Reason

The special leave petition was filed alleging that the High Court erred in law regarding the tenant's compliance with rent deposit requirements, but it suppressed the fact that the Rs 400 deposit had already been withdrawn.

Previous Decisions

Trial Court dismissed the landlord's ejectment suit; first appellate court allowed the appeal and ordered ejectment; High Court dismissed the revision application; Supreme Court granted special leave but later vacated it.

Issues

Whether special leave granted under Article 136 of the Constitution should be revoked because it was procured by suppressing material facts and misleading the Court. Whether the tenant had complied with Section 12(3)(b) of the Bombay Rents and Lodging House Rates (Control) Act, 1947 by depositing full rent including the Rs 400 that had been withdrawn. Whether the High Court had discretion to refuse relief despite the tenant depositing arrears under Section 12(3)(b).

Submissions/Arguments

The appellant/tenant argued that the High Court correctly found no evidence of withdrawal of Rs 400 and that he had deposited full arrears under Section 12(3)(b), so the High Court erred in refusing relief. The respondent/landlord contended that the appellant had suppressed the material fact of withdrawal and obtained special leave by misleading the Court, so the leave should be revoked.

Ratio Decidendi

Article 136 power is discretionary and to be exercised sparingly; a party invoking it must come with clean hands. If leave is obtained by false or untrue statements or by withholding information material to the exercise of discretion, the court may refuse to exercise discretion or revoke the leave already granted, even at the hearing of the appeal.

Judgment Excerpts

special leave to appeal against the judgment of the High Court of Bombay granted by this Court must be vacated because it had been procured by the appellant without disclosing all the material facts. A party who approaches this court invoking the exercise of this over-riding discretion must come with clean hands. The appellant, by dissembling in this court, induced it to grant special leave in a case which did not merit it and hence the leave should be recalled.

Procedural History

In 1952, the landlord filed Suit No. 2014 of 1952 for ejectment. The trial court assessed standard rent and dismissed the suit. The landlord preferred Appeal No. 450 of 1953 to the District Court. On October 1, 1954, the tenant deposited Rs 400 in the District Court. The landlord did not prosecute the appeal, and the deposit remained in court. In 1955, the landlord commenced Suit No. 3434 of 1955 for fresh defaults. Between November 22, 1955 and January 16, 1957, the tenant deposited Rs 2,126/8. On January 19, 1957, the tenant withdrew the Rs 400. The trial court dismissed the second suit on February 26, 1957, relying on the Rs 400 deposit. The Extra Assistant Judge allowed the landlord's appeal and ordered ejectment, excluding the Rs 400 because it had been withdrawn. The High Court dismissed the tenant's revision application on January 20, 1960, in Civil Revision Application No. 139 of 1958. Special leave to appeal was granted by the Supreme Court. On May 1, 1963, the Supreme Court vacated the special leave due to suppression of material facts.

Acts & Sections

  • Constitution of India: Article 136
  • Bombay Rents and Lodging House Rates (Control) Act, 1947: Section 12(1), Section 12(3)(b), Section 28
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Supreme Court Supreme Court Revokes Special Leave in Rent Control Case for Misleading Court. Article 136 Special Leave Petition Must Be Filed with Clean Hands; Tenant Withheld Fact of Withdrawal of Rs 400 Deposit, Affecting Ejectment Decree.
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