Supreme Court Upholds Landlord in Eviction Suit After Permission Reinstatement Under U.P. Rent Control Act. Commissioner's Revocation of Permission Under Section 3(3) Reversed by State Government Under Section 7F, Rendering Pending Suit Maintainable.

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Case Note & Summary

The dispute pertained to the maintainability of an eviction suit filed by the respondent-landlord against the appellant-tenant in respect of a house in Allahabad, governed by the U.P. (Temp.) Control of Rent and Eviction Act, 1947. The landlord had obtained the requisite permission from the Rent Control and Eviction Officer under Section 3(1) of the Act on October 11, 1961. The suit for ejectment was instituted on October 14, 1961. Subsequently, the Commissioner, Allahabad Division, acting under Section 3(3), revoked the permission on March 27, 1962. The landlord then invoked the revisional jurisdiction of the State Government under Section 7F, which, by order dated March 30, 1963, set aside the Commissioner’s revocation and directed that the landlord may file the suit after four months, effectively making the permission operative from July 30, 1963. Meanwhile, the trial court had decreed the suit on July 11, 1963, but the appellate court set aside that decree and remanded the suit for fresh trial. After remand, the trial court again decreed the suit on March 2, 1964, holding that the permission became effective from July 30, 1963, and since the suit was still pending, a decree could validly be passed. The first appellate court and the High Court affirmed this decision. The tenant appealed to the Supreme Court. The core legal question was whether there was a valid permission under Section 3(1) to sustain the suit at the time the decree was passed, given the earlier revocation and the subsequent order of the State Government. The appellant relied on Bhagwan Das v. Paras Nath, [1969] 2 SCR 297, contending that once the Commissioner revoked the permission, the suit became incompetent and the later order under Section 7F could not cure the defect. The respondent argued that the State Government’s order, by setting aside the Commissioner’s order, restored the original permission, and the direction meant the permission was effective from July 30, 1963, when the suit was pending. The Supreme Court distinguished Bhagwan Das, noting that in that case the permission had been granted by the Commissioner (not the Rent Control Officer) and the suit was validly instituted; the State Government could not subsequently revoke it. Here, the suit was initially validly instituted under Section 3(1), and the Commissioner’s revocation did render it incompetent, but Section 3(4) made the Commissioner’s order subject to an order under Section 7F. Consequently, when the State Government set aside the revocation, the original permission under Section 3(1) revived. The Court further interpreted the State Government’s direction to file suit after four months as meaning that the permission would become effective only upon expiry of that period, i.e., from July 30, 1963. Since the decree was passed on March 2, 1964, the landlord had a valid permission at that time. The appeal was dismissed, upholding the eviction decree.

Headnote

A) Tenancy Law - Ejectment Suit - Permission Requirement under Rent Control Legislation - U.P. (Temp.) Control of Rent and Eviction Act, 1947, Sections 3(1), 3(3), 7F - Landlord obtained permission under Section 3(1) to file suit for eviction; Commissioner under Section 3(3) revoked the permission; State Government under Section 7F set aside the revocation and directed that permission would apply four months later. Held that once the State Government sets aside the Commissioner's revocation order, the original permission under Section 3(1) revives, and if the suit remains pending, a decree can be passed. The condition to file suit after four months meant permission became effective after that period, and since decree was passed thereafter, the suit was maintainable. (Paras 3-7)

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Issue of Consideration

Whether there was a valid permission to institute the suit under Section 3(1) of the U.P. (Temp.) Control of Rent and Eviction Act, 1947, when the decree was passed.

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Final Decision

Appeal dismissed. The suit was maintainable as the permission under Section 3(1) revived and was effective from July 30, 1963, and the decree passed on March 2, 1964 was valid.

Law Points

  • Legal points not extracted
  • If State Government sets aside Commissioner's revocation order under Section 7F
  • the original permission under Section 3(1) revives
  • suit becomes validly instituted. Effective date of permission is as directed by State Government. Decree passed after effective date is maintainable.
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Case Details

1968 LawText (SC) (10) 25

Civil Appeal No. 1449 of 1966

1968-10-30

R.S. Bachawat, S.M. Sikri

Citation not available, 1970 AIR 763, 1969 SCR (2) 588

M.K. Ramamurthi, Shyamala Pappu, Vineet Kumar, B.C. Misra, O. Prakash, R.K. Mathur, M.V. Goswami

Purshottam Das

Smt. Raj Mani Devi

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Nature of Litigation

Civil suit for ejectment by landlord against tenant under the U.P. (Temp.) Control of Rent and Eviction Act, 1947.

Remedy Sought

The appellant-tenant sought to have the decree for ejectment set aside and the suit dismissed for want of valid permission under Section 3(1) of the Act.

Filing Reason

The tenant appealed on the ground that the statutory permission to institute the suit had not validly existed when the decree was passed, as the initial permission under Section 3(1) had been revoked by the Commissioner and later restored by the State Government with a prospective effective date.

Previous Decisions

The trial court decreed the suit on July 11, 1963; the appellate court set it aside and remanded; on remand, the trial court decreed the suit again on March 2, 1964; the first appellate court and the High Court affirmed that decree.

Issues

Whether there was a valid permission to institute the suit under Section 3(1) of the U.P. (Temp.) Control of Rent and Eviction Act, 1947, when the decree was passed on March 2, 1964.

Submissions/Arguments

Appellant contended that the Commissioner's revocation under Section 3(3) rendered the suit incompetent and the subsequent State Government order under Section 7F could not cure the defect, relying on Bhagwan Das v. Paras Nath. Respondent argued that the State Government's order set aside the revocation, restored the permission, and the direction to file suit after four months meant the permission became effective from July 30, 1963, when the suit was pending and a decree could validly be passed.

Ratio Decidendi

When the State Government under Section 7F sets aside the Commissioner's order revoking permission under Section 3(1), the original permission revives. If the suit is still pending, a decree can be passed once the permission becomes effective. The direction to file suit after a certain period means the permission becomes effective upon expiry of that period.

Judgment Excerpts

If the State Government acting under s. 7F sets aside the order of the Commissioner revoking the permission, the order under s. 3 (1) granting permission is revived. The result is that there is an effective permission to institute the suit under s. 3 (1) and the suit is validly instituted. The direction of the State Government to file the suit after four months of the order meant that the permission under s. 3(1) would become effective on the expiry of 4 months i.e. from July 30, 1963. The landlord had thus an effective permission to institute the suit under s. 3(1) from July 30, 1963. The decree in the suit was passed on March 2, 1964. On that date the landlord had a valid permission to institute the suit.

Procedural History

Landlord obtained permission under Section 3(1) on October 11, 1961; suit filed on October 14, 1961; Commissioner revoked permission on March 27, 1962; State Government under Section 7F set aside revocation on March 30, 1963, directing permission effective from July 30, 1963; trial court decreed suit on July 11, 1963; appellate court set aside and remanded on November 4, 1963; on remand, trial court decreed suit on March 2, 1964; first appellate court dismissed appeal on November 28, 1964; High Court dismissed second appeal on April 28, 1966; tenant appealed to Supreme Court.

Acts & Sections

  • U.P. (Temp.) Control of Rent and Eviction Act, 1947: 3(1), 3(3), 3(4), 7F
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