Supreme Court Dismisses Tenant’s Appeal in Rent Control Eviction Case, Upholding High Court’s Interpretation of Proviso to Section 57(2) of Delhi Rent Control Act, 1958. High Court Correctly Held That the Proviso’s Exception for Premises to Which Section 54 Does Not Apply Excludes Premises Governed by the Slum Areas (Improvement and Clearance) Act, 1956, Thus the Repealed Delhi and Ajmer Rent Control Act, 1952 Applied, and Eviction for Substantial Damage Was Proper.

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Case Note & Summary

The dispute concerned a shop in Kinari Bazar, Delhi, rented by the appellant tenant from the respondent landlord. The tenant, who sold sewing machines and fans, lowered the floor level of the shop to facilitate access for customers, thereby altering the premises. The landlord filed an eviction suit under section 13(1)(k) of the Delhi and Ajmer Rent Control Act, 1952, which permitted eviction where a tenant caused or permitted substantial damage to the premises. The trial court ordered eviction on 19 February 1959, and the appellate authority dismissed the tenant's appeal on 16 November 1959. During the pendency of these proceedings, the Delhi Rent Control Act, 1958 came into force on 9 February 1959, repealing the 1952 Act subject to a savings clause in section 57(2). In revision before the High Court, the tenant invoked the new Act and relied on section 14(1)(j) read with section 57, seeking to avoid eviction by paying compensation instead. The High Court initially allowed the tenant to pay compensation of Rs. 500 as assessed by the landlord, but on review, the landlord argued that the first proviso to section 57(2) of the 1958 Act made the new Act inapplicable because the proviso excepted premises to which section 54 does not apply, and the shop fell within an area governed by the Slum Areas (Improvement and Clearance) Act, 1956. The High Court agreed, reversed its earlier order, and directed eviction under the old Act. The tenant appealed to the Supreme Court. The core legal issue was the interpretation of the first proviso to section 57(2) of the 1958 Act: whether the phrase 'to which section 54 does not apply' governed the words 'any suit or proceeding' or the word 'premises'. The tenant contended it governed the suit or proceeding, so the proviso applied to all pending suits except those already covered by section 54, and the High Court was bound to have regard to the new Act’s provisions. The landlord argued it governed 'premises', and since the premises were in a slum area subject to the Slum Areas Act, the proviso did not apply, leaving the old Act to govern. The Supreme Court carefully analyzed the language and structure of the proviso. It noted that ‘from any premises’ clearly related to the eviction of a tenant and not to any suit or proceeding, and that the phrase ‘to which section 54 does not apply’ grammatically modified ‘premises’ rather than ‘any suit or proceeding’. The Court observed that the three enactments listed in section 54 – the Administration of Evacuee Property Act, 1950, the Slum Areas (Improvement and Clearance) Act, 1956, and the Delhi Tenants (Temporary Protection) Act, 1956 – all dealt with premises and property, not with the fixation of standard rent, making it pointless to read the proviso as applying to suits not covered by those Acts. Therefore, the proviso was limited to premises not governed by those statutes. Since the shop was located in an area subjected to the Slum Areas Act, the proviso had no application. Consequently, the savings clause in section 57(2) of the 1958 Act operated without the proviso, and the repealed 1952 Act continued to govern the pending proceedings. As the tenant had caused substantial damage, eviction under section 13(1)(k) of the 1952 Act was the correct order. The Supreme Court dismissed the appeal with costs, upholding the High Court’s review decision.

Headnote

A) Rent Control and Eviction - Interpretation of Statutes - First Proviso to Section 57(2), Delhi Rent Control Act, 1958 - Scope and Applicability of Proviso in Repeal and Savings Clause - Delhi Rent Control Act, 1958, Sections 57(2) first proviso, 54; Delhi and Ajmer Rent Control Act, 1952, Section 13(1)(k) - The tenant altered the premises causing substantial damage; landlord filed eviction suit under the 1952 Act. During pendency, the 1958 Act came into force with a savings clause containing a proviso. The High Court initially granted the tenant an opportunity to pay compensation under the new Act but on review held the new Act inapplicable because the premises were in a slum area to which Section 54 refers. The Supreme Court held that the phrase 'to which section 54 does not apply' modifies 'premises' and not 'any suit or proceeding', thus the proviso only applies where the premises are not governed by the Slum Areas Act or other named Acts; consequently, the old Act governed and eviction for substantial damage was proper.

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Issue of Consideration

Whether the first proviso to section 57(2) of the Delhi Rent Control Act, 1958 applies to eviction proceedings pending when the Act came into force, requiring the court to have regard to its provisions, given that the premises are in a slum area governed by the Slum Areas (Improvement and Clearance) Act, 1956

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Final Decision

Appeal dismissed with costs; eviction of tenant upheld under Delhi and Ajmer Rent Control Act, 1952

Law Points

  • Legal points not extracted
  • Interpretation of first proviso to section 57(2) of Delhi Rent Control Act
  • 1958
  • the phrase 'to which section 54 does not apply' governs 'premises' and not 'any suit or proceeding'
  • where premises are subject to Slum Areas (Improvement and Clearance) Act
  • 1956
  • the proviso does not apply
  • pending proceedings continue under repealed Delhi and Ajmer Rent Control Act
  • 1952
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Case Details

1969 LawText (SC) (02) 21

Civil Appeal No. 389 of 1966

1969-02-27

Hidayatullah, M. (CJ), Ramaswami, V., Mitter, G.K.

Citation not available, 1969 AIR 1165, 1969 SCR (3) 855, 1969 SCC (1) 724

C.B. Agarwala, Uma Mehta, M. L. Kapur, K. K. Sinha, B.C. Misra, Bishambee Lal, R. K. Puri

Jai Narain

Kishen Chand

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Nature of Litigation

Eviction suit under rent control legislation

Remedy Sought

Tenant sought to set aside eviction order and rely on provisions of Delhi Rent Control Act, 1958 to avoid eviction by paying compensation

Filing Reason

Landlord filed suit for eviction on ground that tenant caused substantial damage to the premises by lowering the floor level

Previous Decisions

Trial court ordered eviction on 1959-02-19; appellate authority dismissed appeal on 1959-11-16; High Court initially allowed compensation under the new Act but on review reversed and ordered eviction under the 1952 Act

Issues

Whether the first proviso to section 57(2) of the Delhi Rent Control Act, 1958 applies to pending eviction proceedings such that the court must have regard to the provisions of the new Act, or whether the proviso is limited to premises not governed by the enactments listed in section 54

Submissions/Arguments

Appellant/tenant contended that the proviso applies to any suit or proceeding, so the High Court was bound to consider the new Act and could have allowed compensation instead of eviction. Respondent/landlord argued that the phrase 'to which section 54 does not apply' modifies 'premises', and since the shop is in a slum area governed by the Slum Areas Act, the proviso does not apply; the old Act's absolute right to evict for substantial damage remains.

Ratio Decidendi

The first proviso to section 57(2) of the Delhi Rent Control Act, 1958 applies only to premises to which section 54 does not apply. The phrase 'to which section 54 does not apply' governs the word 'premises' and not 'any suit or proceeding'. Therefore, where the premises are subject to any of the enactments mentioned in section 54, such as the Slum Areas (Improvement and Clearance) Act, 1956, the proviso has no operation and the pending proceedings continue to be governed by the repealed Delhi and Ajmer Rent Control Act, 1952.

Judgment Excerpts

Provided that in any such suit or proceeding for the fixation of standard rent or for the eviction of a tenant from any premises to which section 54 does not apply, the court or other authority shall have regard to the provisions of this Act : The phrase 'to which section 54 does not apply' really governs 'premises'. It is admitted fore us that this area is subjected to the- Slum Areas (Improvement and Clearance) Act, 1956. If that is so, then, on the terms of the proviso on which much reliance is placed by Mr. Agarwala, the provisions of the Delhi Rent Control Act, 1958 cannot be taken into consideration.

Procedural History

Suit filed on 1957-11-13; trial court ordered ejectment on 1959-02-19; appeal dismissed on 1959-11-16; revision application filed on 1960-03-25; High Court initially granted compensation under Delhi Rent Control Act, 1958, but on review reversed and ordered eviction under 1952 Act; Supreme Court heard appeal by special leave and dismissed it on 1969-02-27

Acts & Sections

  • Delhi and Ajmer Rent Control Act, 1952: 13(1)(k)
  • Delhi Rent Control Act, 1958: 14(1)(j), 14(10), 54, 57(1), 57(2) first proviso
  • Slum Areas (Improvement and Clearance) Act, 1956:
  • Administration of Evacuee Property Act, 1950:
  • Delhi Tenants (Temporary Protection) Act, 1956:
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