Supreme Court Upholds Finality of Appellate Order Under Rent Act; Amended Section 29(2) Not Retrospective. High Court Revisional Power Under CPC, Not Amended Act, Applies to Pre-Amendment Decisions.

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Case Note & Summary

The dispute arose from a suit for ejectment, arrears of rent, and other dues filed in July 1958 by the respondent-landlord against the appellant-tenant in respect of premises in Ahmedabad. The trial court dismissed the ejectment claim but decreed arrears of rent and permitted increases. The appellate court, acting under Section 29 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, confirmed that decree on 25 February 1963. At the relevant time, Section 29(2) barred a further appeal; therefore, the decision attained finality subject only to the revisional jurisdiction of the High Court under Section 115 of the Code of Civil Procedure, 1908. The respondent moved the High Court by a petition under Section 115 CPC. While that petition was pending, the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 was amended by Gujarat Act 18 of 1965. The amended Section 29(2), while maintaining the bar against a second appeal, allowed the High Court to call for the case and pass such order as it thought fit for the purpose of satisfying itself that the decision was according to law. Assuming that the amendment applied to all pending petitions, the High Court, after examining the case, reversed the appellate order and decreed the respondent's suit for ejectment. The appellant obtained special leave to appeal to the Supreme Court. The sole legal issue was whether the High Court could exercise the wider power under the amended Section 29(2) in respect of an appellate decision that had already become final before the amendment came into force. The appellant contended that the amendment was not expressly retrospective, and the finality of the earlier appellate order could not be disturbed except within the limited parameters of Section 115 CPC. The Supreme Court accepted this argument. It held that a statute conferring a new power on a court does not, without express words or necessary implication, operate to take away the finality of decisions rendered under the previous law. The 1965 Gujarat Act did not contain any provision making the amendment retrospective. Consequently, the High Court erred in treating the petition as one under the amended Section 29(2) and in upsetting a decision that had attained finality. The appeal was allowed; the order of the High Court was set aside, and the petition under Section 115 CPC was restored to its original number for hearing and disposal in accordance with law.

Headnote

A) Rent Control - Finality of Appellate Orders - Amendment Not Retrospective - Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, Sections 29(1), 29(2); Gujarat Act 18 of 1965 - An appellate order confirmed under Section 29 of the rent act before the 1965 amendment attained finality and could not be reopened by the High Court under wider powers conferred by the amended Section 29(2) absent an express retrospective provision. The court held that the amending act did not provide for retrospective operation, so the High Court erred in setting aside the final order under the new provision. (Paras Not mentioned)

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Issue of Consideration

Whether the amended Section 29(2) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (as amended by Gujarat Act 18 of 1965) applied to a case where the decision of the appellate court was given before the amended section came into force, or whether the High Court could only exercise power under Section 115 of the Code of Civil Procedure, 1908 in such a case.

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Final Decision

Appeal allowed. Supreme Court set aside High Court's order decreeing ejectment. Petition under Section 115 CPC restored to its original file for hearing and disposal according to law.

Law Points

  • retrospective operation of statutes
  • finality of appellate orders
  • limited revisional jurisdiction under Section 115 CPC
  • amendment not retrospective unless expressly provided
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Case Details

1968 LawText (SC) (04) 19

1968-04-02

J.C. Shah, M. Hidayatullah (CJ), S.M. Sikri, R.S. Bachawat, G.K. Mitter, C.A. Vaidyialingam, K.S. Hegde

1968 AIR 1336, 1968 SCR (3) 623

Keshavlal Jethalal Shah

Mohanlal Bhagwandas and Anr.

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Nature of Litigation

Ejectment suit filed by landlord-respondent against tenant-appellant for recovery of premises, arrears of rent and other dues.

Remedy Sought

Respondent sought decree of ejectment and recovery of arrears and other dues.

Filing Reason

Respondent filed suit in July 1958 alleging default in payment of rent and other dues.

Previous Decisions

Trial court dismissed ejectment claim but decreed arrears and permitted increases. Appellate court confirmed the decree on February 25, 1963 under Section 29 of the Bombay Rent Act. Respondent moved High Court under Section 115 CPC. While petition pending, Gujarat Act 18 of 1965 amended Section 29(2). High Court, assuming amendment applied, reversed appellate order and decreed ejectment.

Issues

Whether the amended Section 29(2) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, as inserted by Gujarat Act 18 of 1965, applies retrospectively to a decision of the appellate court rendered before the amendment came into force, or whether the High Court's power is limited to that under Section 115 of the Code of Civil Procedure, 1908.

Submissions/Arguments

Appellant contended that the appellate court's order had attained finality under the unamended Section 29(2) and could be challenged only under the limited revisional jurisdiction of Section 115 CPC, as the Amending Act lacked express retrospective provision.

Ratio Decidendi

An amendment conferring a new power on a court does not take away the finality of a decision rendered before the amendment came into force, unless the amending Act expressly or by necessary implication provides for retrospective operation. The High Court could not exercise the wider power under the amended Section 29(2) to set aside an appellate order that had become final under the earlier law; its jurisdiction remained limited to revision under Section 115 CPC.

Judgment Excerpts

The High Court exercised the jurisdiction invested by Act 18 of 1965 in respect of a judgment which had become final before the amendment. The amended s. 29(2) did not expressly make the amendment retrospective, and the High Court could only exercise power under s. 115 CPC.

Procedural History

July 1958: Respondent filed suit for ejectment and arrears. Trial court dismissed ejectment but decreed arrears. Appeal under Section 29 of Bombay Rent Act: appellate court confirmed trial court decree on February 25, 1963. Respondent moved High Court under Section 115 CPC. During pendency, Gujarat Act 18 of 1965 amended Section 29(2). High Court, assuming amended Act applied, reversed appellate order and decreed ejectment. Appellant appealed to Supreme Court by special leave.

Acts & Sections

  • Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bombay Act 57 of 1947): 29(1), 29(2) (pre-amendment)
  • Gujarat Act 18 of 1965: 29(2) (amended)
  • Code of Civil Procedure, 1908 (CPC): 115
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Supreme Court Supreme Court Upholds Finality of Appellate Order Under Rent Act; Amended Section 29(2) Not Retrospective. High Court Revisional Power Under CPC, Not Amended Act, Applies to Pre-Amendment Decisions.
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