High Court of Bombay at Goa Allows Tenants in Rent Control Matter Due to Erroneous Denial of Opportunity to File Reply; Revisional Authority Misconstrued Scope of Rent Controller's Powers Under Goa Buildings (Lease, Rent and Eviction) Control Act, 1968.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The dispute arose from eviction proceedings initiated by landlords against tenants under Section 22(2)(g) of the Goa Buildings (Lease, Rent and Eviction) Control Act, 1968 before the Rent Controller. The tenants were initially granted multiple adjournments due to Covid-19 disruptions and other reasons. On 20.11.2021, the Rent Controller closed the opportunity for tenants to file their reply to the eviction application because neither tenants nor their advocates were present. The tenants then filed an application Exhibit D-6 on 15.12.2021 seeking recall of that order and grant of opportunity to file reply. The Rent Controller allowed this application on 08.06.2022, granting additional opportunity subject to payment of costs of ₹2000. Aggrieved, the landlords filed Rent Revision No. 05/2022 before the Revisional Authority, which stayed the Rent Controller's order and ultimately allowed the revision on 26.08.2022, holding that the Rent Controller had no power to recall its own order because proceedings before the Rent Controller are regulated by the Mamlatdar's Court Act, which does not provide for recall, and the Civil Procedure Code applies only to recording of evidence. The Revisional Authority reasoned that the only remedy for the tenants was to file a revision before the higher court, and that the Rent Controller's order closing the right to file reply was itself a revisional order under Section 46 of the Rent Control Act. The tenants then filed a writ petition before the High Court of Bombay at Goa challenging the revisional order. The High Court held that the Revisional Authority erred in law by failing to consider Rule 11 of the Goa Buildings (Lease, Rent and Eviction) Control Rules, which provides for setting aside ex-parte orders on showing unavoidable circumstances. The High Court observed that even if Rule 11 were strictly construed to apply only to ex-parte eviction orders, the Rent Controller possessed ancillary and incidental powers to entertain an application for recall of an order closing the opportunity to file a reply, provided sufficient cause was shown. The High Court relied on decisions in Major (retd.) Kehar Singh v. Velen tino Xavier Pereira and M/s Panduronga Timblo Industries v. M/s Cosme Matias Menezes Ltd. regarding the scope of Rent Controller's procedural powers. Accordingly, the High Court concluded that the Revisional Authority's order was unsustainable and that the Rent Controller had power to recall the order dated 20.11.2021 and grant additional opportunity to file reply. The final operative order is not fully extracted in the provided text, but the High Court's reasoning favoured the tenants.

Headnote

A) Rent Control Law - Ancillary and Incidental Powers - Power to Recall Procedural Order - Goa Buildings (Lease, Rent and Eviction) Control Act, 1968 and Rules - Revisional Authority held Rent Controller lacked power to recall order dated 20.11.2021 closing opportunity to file reply and grant additional opportunity; High Court held that under ancillary and incidental powers, Rent Controller could entertain application for recall if sufficient cause shown. Held that Revisional Authority erred in holding otherwise (Paras 15-16).

B) Rent Control Law - Procedure for Setting Aside Ex-parte Orders - Rule 11 - Goa Buildings (Lease, Rent and Eviction) Control Rules - Revisional Authority did not consider Rule 11 which provides for setting aside ex-parte orders within 30 days on showing unavoidable circumstances; High Court observed that strict construction of Rule 11 to only ex-parte eviction orders may not be warranted (Paras 14-15).

C) Rent Control Law - Application of Civil Procedure Code - Mamlatdar's Court Act and CPC - Revisional Authority held CPC permits setting aside only under Mamlatdar's Court Act and has no provision for recall; High Court noted that CPC applies only to recording of evidence but Rent Controller's ancillary powers may include recall of procedural orders (Paras 13-16).

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Issue of Consideration

Whether the Rent Controller has power to recall an order closing the opportunity to file a reply and grant additional opportunity to tenants to file reply in eviction proceedings under the Goa Buildings (Lease, Rent and Eviction) Control Act, 1968.

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Final Decision

The High Court held that the Revisional Authority erred in law by holding that Rent Controller lacked power to recall its order; it found that under ancillary and incidental powers, Rent Controller could entertain recall application if sufficient cause shown. The final operative order is not extracted in the provided text.

Law Points

  • Rent Controller has ancillary and incidental powers to recall procedural orders if sufficient cause shown
  • Rule 11 of Goa Buildings (Lease
  • Rent and Eviction) Control Rules may not be strictly confined to ex-parte eviction orders
  • Proceedings before Rent Controller are regulated by Mamlatdar's Court Act with CPC applying only to recording of evidence
  • Application for recall of order closing opportunity to file reply is entertainable provided sufficient cause shown
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Case Details

2023 LawText (BOM) (07) 136

Writ Petition No. 597 of 2022

2023-07-27

M.S. Sonak, J.

2023:BHC-GOA:1285

Deepak Gaonkar for Petitioners; Mangirish Angle and Chirag Angle for Respondents

Mohan Damodar Raikar and Shubhangi Mohan Raikar

Stanley Anthony D'Souza, Olivia Fernandes, Maria Sindara D'Souza

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Nature of Litigation

Writ petition under Article 226/227 challenging order of Revisional Authority in rent control proceedings.

Remedy Sought

Petitioners (tenants) sought quashing of revisional order dated 26.08.2022 and restoration of Rent Controller's order dated 08.06.2022 granting them opportunity to file reply to eviction application.

Filing Reason

Revisional Authority held Rent Controller had no power to recall order dated 20.11.2021 closing opportunity to file reply, thereby denying tenants a chance to file reply.

Previous Decisions

Rent Controller allowed tenants' application Exhibit D-6 on 08.06.2022 and granted additional opportunity to file reply subject to costs of ₹2000; Revisional Authority allowed landlords' revision No. 05/2022 on 26.08.2022 and set aside Rent Controller's order, holding lack of power to recall.

Issues

Whether the Rent Controller has power to recall an order closing the opportunity to file a reply and grant additional opportunity to the tenants. Whether Rule 11 of Goa Buildings (Lease, Rent and Eviction) Control Rules applies to procedural orders beyond ex-parte eviction orders. Whether proceedings before Rent Controller are governed by Mamlatdar's Court Act and CPC such that Rent Controller cannot recall its own order.

Submissions/Arguments

Landlords contended that Rent Controller had no power to recall its own order as Mamlatdar's Court Act does not provide for recall and CPC only applies to recording of evidence. They argued the only remedy was revision under Section 46. Tenants sought recall of order closing reply, showing sufficient cause due to Covid-19 disruptions and non-appearance due to unavoidable circumstances.

Ratio Decidendi

Rent Controller, while conducting proceedings under Goa Buildings (Lease, Rent and Eviction) Control Act, 1968, has ancillary and incidental powers to recall procedural orders, including an order closing opportunity to file reply, provided sufficient cause is shown. Rule 11, though framed for ex-parte orders, reflects the power to set aside for unavoidable circumstances; strict construction limiting it to eviction orders may not be justified. Revisional Authority erred in holding that Rent Controller lacked power to recall and that only remedy was revision.

Judgment Excerpts

The Revisional Authority has not adverted to Rule 11 of the said Rules which reads as follows... I am satisfied that under the ancillary and incidental powers vested in the Rent Controller, an application for recall of order by which an opportunity to file a reply was closed, could be entertained by the Rent Controller provided sufficient cause was shown. In this regard, the decision in the case of Major (retd.) Kehar Singh Vs Velen tino Xavier Pereira 1 is relevant.

Procedural History

Landlords instituted Rent Case No. 20/2019/G before Rent Controller seeking eviction of tenants under Section 22(2)(g) of Goa Buildings (Lease, Rent and Eviction) Control Act, 1968. Rent Controller issued notice on 27.01.2020 returnable 27.02.2020; matter adjourned due to leave, lockdown, and Covid-19 disruptions. On 20.11.2021, Rent Controller closed opportunity for tenants to file reply due to non-appearance. Tenants filed application Exhibit D-6 on 15.12.2021 seeking recall and opportunity to file reply. Rent Controller allowed application on 08.06.2022 granting additional opportunity subject to costs of ₹2000. Landlords filed Rent Revision No. 05/2022; Revisional Authority stayed order and on 26.08.2022 allowed revision, holding Rent Controller lacked power to recall. Tenants filed Writ Petition No. 597 of 2022 before High Court challenging revisional order.

Acts & Sections

  • Goa Buildings (Lease, Rent and Eviction) Control Act, 1968: Section 22(2)(g), Section 46
  • Goa Buildings (Lease, Rent and Eviction) Control Rules: Rule 11
  • Mamlatdar's Court Act:
  • Code of Civil Procedure, 1908:
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