Supreme Court Upholds High Court's Revisional Jurisdiction in Rent Control Dispute. High Court's Reversal of Trial Court's Enhancement of Rent Upheld, as Date of Construction is a Jurisdictional Fact Under Section 115 CPC and Section 3-A of U.P. Temporary Control of Rent and Eviction Act, 1947.

In Favour of Accused
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Case Note & Summary

The dispute arose under the Uttar Pradesh Temporary Control of Rent and Eviction Act, 1947, concerning enhancement of rent for accommodation occupied by a tenant since 1938 on an agreed monthly rent of Rs 21-4 as. The landlord applied to the House Allotment Officer under Section 3-A of the Act on January 28, 1950, alleging that he had made new construction in January 1949 at the tenant's request and sought fixation of reasonable annual rent. The House Allotment Officer fixed rent at Rs 35 per mensem on February 18, 1950, raised to Rs 40 on review on May 25, 1950, holding that the accommodation was not newly constructed as the tenant had occupied it since 1938, but increased rent based on the added building. The landlord then filed a suit under Section 5(4) of the Act for enhancement of reasonable annual rent, alleging new construction of a ferro-concrete roof and claiming that proper rent should not be less than Rs 115 per mensem. The tenant defended that no construction was done at his request, the new construction was for another storey, and as far as his accommodation was concerned there was no new construction after June 30, 1946, so the suit was not maintainable. The trial court, Additional Civil Judge, Mathura, found in favour of the landlord that the accommodation had increased due to new construction and enhanced the reasonable adequate rent to Rs 55-8-0. On revision under Section 115 CPC, the Allahabad High Court held that while the upper storey was new construction, the accommodation in the tenant's occupation was not new construction, so Section 3-A was not applicable and the landlord had no right to sue for enhancement; the revision was allowed and the suit dismissed. The landlord appealed to the Supreme Court contending that the trial court had jurisdiction to decide the date of construction rightly or wrongly, and the House Allotment Officer's decision in his favour established his right to sue, so the High Court could not interfere. The tenant argued that the date of construction was a jurisdictional fact and a wrong decision on it allowed revisional interference. The Supreme Court examined the scheme of the Act, including definitions of accommodation and reasonable annual rent, and held that a wrong decision by the House Allotment Officer under Section 3-A could be rectified by a suit under Section 5(4); the maintainability of such suit depended on the jurisdictional fact of accommodation being constructed after June 30, 1946; and if the trial court wrongly decided that fact and assumed jurisdiction not vested in it, the High Court could interfere under Section 115 CPC and examine the correctness of that finding. The Court relied on Joy Chand Lal Babu v. Kamalaksha Chaudhury and other precedents, and distinguished Rai Brij Raj Krishna v. S.K. Shaw and Bros. The appeal was dismissed, affirming the High Court's decision.

Headnote

A) Civil Procedure - Revisional Powers of High Court - Section 115, Code of Civil Procedure, 1908 - Jurisdictional Fact - High Court can interfere in revision when subordinate court assumes jurisdiction based on erroneous finding of a fact that goes to root of jurisdiction; here date of construction of accommodation under U.P. Rent Control Act. Held that if court wrongly decides a jurisdictional fact and thereby assumes jurisdiction not vested in it, High Court has power under Section 115 CPC to interfere and once it has power, it can determine whether the question was rightly or wrongly decided (Paras 8-10).

B) Landlord and Tenant - Rent Control - Sections 2(a), 2(f), 3-A, 5(4), Uttar Pradesh Temporary Control of Rent and Eviction Act, 1947 - Reasonable Annual Rent and Maintainability of Suit - Under Section 5(4), a suit lies to rectify wrong decision by House Allotment Officer under Section 3-A; maintainability of such suit depends on determination of jurisdictional fact i.e., whether accommodation was constructed after June 30, 1946; if not, landlord bound by agreed rent and suit not maintainable. Held that High Court was correct in allowing revision and dismissing suit as accommodation in tenant's occupation was not new construction (Paras 4-7, 10).

C) Precedent - Jurisdictional Fact Doctrine - Queen v. Commissioner for Special Purposes of the Income Tax, (1888) 21 Q.B.D. 313; Joy Chand Lal Babu v. Kamalaksha Chaudhury, (1949) L.R. 76 I.A. 131 relied on; Rai Brij Raj Krishna v. S.K. Shaw and Bros., [1951] S.C.R. 145 distinguished - The principle that existence of a fact essential to jurisdiction is a jurisdictional fact, and erroneous decision on such fact is subject to revisional correction under Section 115 CPC (Paras 9-10).

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Issue of Consideration

Whether the High Court could interfere in revision under Section 115 of the Code of Civil Procedure with the trial court's decision on the date of construction of accommodation; whether maintainability of a suit under Section 5(4) of the U.P. Temporary Control of Rent and Eviction Act, 1947 depends on the jurisdictional fact of new construction after June 30, 1946; and whether a wrong decision by the House Allotment Officer under Section 3-A can be rectified by a suit under Section 5(4).

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Final Decision

Appeal dismissed; Supreme Court upheld High Court's revisional jurisdiction under Section 115 CPC to interfere with trial court's erroneous finding on jurisdictional fact; held that suit under Section 5(4) was maintainable only if accommodation was constructed after June 30, 1946, and High Court was correct in allowing revision and dismissing suit.

Law Points

  • Legal points not extracted
  • Revisional powers of High Court under Section 115 CPC
  • jurisdictional fact doctrine
  • maintainability of suit under Section 5(4) of U.P. Temporary Control of Rent and Eviction Act
  • 1947
  • date of construction as jurisdictional fact
  • wrong decision by House Allotment Officer under Section 3-A can be rectified by suit
  • once High Court has revisional power it can examine correctness of findings on jurisdictional facts
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Case Details

1958 LawText (SC) (12) 15

Civil Appeal No. 153 of 1955

1958-12-05

Kapur, J.L., Imam, Syed Jaffer, Das, S.K.

Citation not available, 1959 AIR 492, 1959 SCR Supl. (1) 733

G. C. Mathur, C. B. Aggarwala, Ganpat Rai

Chaube Jagdish Prasad and Another

Ganga Prasad Chaturvedi

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Nature of Litigation

Civil dispute regarding enhancement of rent for accommodation under the U.P. Temporary Control of Rent and Eviction Act, 1947.

Remedy Sought

Landlord/plaintiff sought enhancement of reasonable annual rent under Section 5(4) of the Act; in Supreme Court, appellant sought to set aside High Court's order dismissing suit and restore trial court's enhancement.

Filing Reason

Landlord alleged new construction in January 1949 at tenant's request, claimed increased rent, and filed suit after House Allotment Officer fixed lower rent.

Previous Decisions

House Allotment Officer fixed rent at Rs 40 per mensem; Trial Court (Additional Civil Judge, Mathura) enhanced rent to Rs 55-8-0; High Court in revision allowed tenant's revision, held no new construction of accommodation in tenant's possession, dismissed suit.

Issues

Whether High Court could interfere in revision under Section 115 CPC with trial court's decision on date of construction of accommodation? Whether maintainability of suit under Section 5(4) of U.P. Rent Control Act depended on jurisdictional fact of accommodation being newly constructed after June 30, 1946? Whether wrong decision by House Allotment Officer under Section 3-A could be rectified by suit under Section 5(4)?

Submissions/Arguments

Appellant contended that the Additional Civil Judge had jurisdiction to decide the date of construction and could decide rightly or wrongly as it was a matter of fact within his jurisdiction; the House Allotment Officer's decision in his favour established his right to bring the suit, so the High Court could not go into correctness of that decision. Respondent submitted that the decision on date of construction was a jurisdictional fact; unless the accommodation was held to be a new construction made after June 30, 1946, the landlord was bound by the agreed rent and had no right of suit under Section 5(4), and the court had no jurisdiction to entertain the suit.

Ratio Decidendi

A wrong decision by House Allotment Officer under Section 3-A can be rectified by suit under Section 5(4). Maintainability of such suit is dependent on the jurisdictional fact of date of construction of accommodation; if court wrongly decides that fact and assumes jurisdiction, High Court can interfere under Section 115 CPC, and once it has power, can examine correctness of that finding.

Judgment Excerpts

The main controversy raised between the parties was whether the High Court could, in revision under S. 115 of the Code of Civil Procedure, interfere with this decision of the trial court. Held:(1) that a wrong decision made by the House Allotment Officer under s. 3A of the Act or an order made by him in excess of his powers under that section could be rectified by a suit under S. 5(4) of the Act; and (2)that the maintainability of the suit brought under s. 3A of the Act depended on the determination of the jurisdictional fact i.e., date of construction of the accommodation, whether it was after June 30, 1946, and if the court wrongly decided that fact and thereby assumed jurisdiction not vested in it, the High Court had the power to interfere under s. 115 of the Code of Civil Procedure, and once it had the power it could determine whether the question of the date of construction was rightly or wrongly decided. Joy Chand Lal Babu v. Kamalaksha Chaudhury, (1949) L.R. 76 I.A. 131, relied on.

Procedural History

1938: Tenant took accommodation on rent. 28-01-1950: Landlord applied to House Allotment Officer under Section 3-A. 18-02-1950: House Allotment Officer fixed rent at Rs 35. 25-05-1950: On review raised to Rs 40. Landlord filed Suit No. 19 of 1950 under Section 5(4) in court of Additional Civil Judge, Mathura. 31-03-1951: Additional Civil Judge decreed suit, enhanced rent to Rs 55-8-0. Tenant filed Civil Revision Application No. 540 of 1951 before Allahabad High Court. 30-08-1954: High Court allowed revision, dismissed suit. Appeal by special leave to Supreme Court, Civil Appeal No. 153 of 1955. 05-12-1958: Supreme Court dismissed appeal.

Acts & Sections

  • Uttar Pradesh Temporary Control of Rent and Eviction Act, 1947 (U.P. Act III of 1947): Section 2(a), Section 2(f), Section 3-A, Section 5(4), Section 6
  • Code of Civil Procedure, 1908: Section 115
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