# FAQIR CHAND v. SHRI RAM RATI'AN BHANOT

- **Citation:** [1973] 3 S.C.R. 454
- **Court:** Supreme Court of India
- **Decided:** 1973-01-30
- **Case number:** Civil Appeal No. 846 and 1343 of 1972
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/faqir-chand-v-shri-ram-rati-an-bhanot-5829
- **Pages:** 9

## Headnote

-
FAQIR CHAND
v.
SHRI RAM RATI'AN BHANOT
January 30, 1973
(With connected appeal)
'[A. ALAGIRISWAMI, I. D. DUA AND C. A. VAIDIALINGAM, JI.]
The Delhi Rent Control :A.ct, 1952, s, 14-Lease of land by Improvr.
ment Trust to landlord
prohibiting
use
of
land
/or
comm<rclal
purposes-Landlord neverthelers leasing out part of building on land for
commercial purpose-Le..se is not void-Landlord is not estopped from
suing tenant for evictl'on-No estoppel agai'nst statutt-<;:ontroller
muJt
exercise one or the other of the two alternatires g,iven to
hint,
under
s.14(1)-Clause (c) and (k) of the proviso to s. 14(1), applicability of,
The respo;ndents were Jandldrds of two houses in the Karol Bagh
area of Delhi. The bOuses were built !1tl lands given on
Jong
lease
by the Delhi Improvement Trust to the rights, liabilities and a15ets of
which the Delhi Development Authority subsequently succeeded.
Under
the terms of the leases the buildings erected on the lands were to be
used for residential purposes only. If they were used for
any
other
purpose without the approval of the lessor the leases
would
become
void.
Portiotns of the buildings in question were however let out for
commercial purposes-viz. a barber shop and a scooter
repair
shop.
The Delhi Development Authority gave notice to the
landlords
that
since the buildings had been permitted to be used for commercial purposes the leases were liable to be determined.
They were called upon
to discontinue the use of the land for
commercial . purposes
failing
which they were asked to show cause why their leases should not be
determined and the laind together with the buildings thereon be not reentered upon without compensation. Thereupon the
landlords
issued
notice to the tenants asking them to stop the commercial use of the
buildings.
The landlords later on instituted proceedings
against
the
tenants under the Delhi Rent Control Act, 1958 but
the
Controller
dismissed the petitions. Their appeals were
dismissed. The
Division
Bench of the High Court decided in favour of the landlords.
In appeal
to this Court by special leave the question for c'onsideration was whether
the landlords were estopped or
otherwise
prohibited
from
getting
possession of the property from the tenants because
they
themselves
had let it out for commercial purposes.
The Court had to consid~r the
question in the light of the provisions of s. 14 of the Act.
HELD : (i) If it is a case \Vhere the. tenant has contrary to
the
terms of his tenoocy used the buildings for a commercial purpose the
landlord could take actio,n under clause (c) of the proviso to s. 14(1).
He need not depend upon clause (k) at all.
The only
situation
in
which clause (k) can take effect is when the lease is fdr a commercial
purpose agreed upon both by the landlord and the tenant but that is
<:ontrary to the terms of the lease of the land in favour of the landlord.
[459E-G]
(ii) The policy of the legislatures seems to be to put an end to
unauthorised use of the leased lands rather than merely to enable the
authorities .to get back possession of the leased lands. This concluai<*I
is further fortified by a reference to sub-section 11 of section 14. The
lease is not forfeited merely because the building put upon the leased
land is put to unauthori90d use.
The tenant is given an opportunity
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PAQIR CHAND v. R. R. BRANOT (Alagiriswami, /.)
455
to oom~ly with the condition imposed on the landlord by any of the·
authorities referred to in clause (k) of the proviso to sub-s,ection (I).
As !()Ill& as the condition imposed i1 complied with there is no forfeiture.
It even enables the controller to di'rect compensation to be paid to
the authority for a breach of the conditions, which must be done in the
presence of the authority. [459H; 460A-D]
(iii) The anxiety of the U.jislatul'e is to prevent unauthorised user
rather than protection of the tenaint or strenathening the hands of the
Development Authority in effectina forfeiture. The Developm

## Text

-
FAQIR CHAND
v.
SHRI RAM RATI'AN BHANOT
January 30, 1973
(With connected appeal)
'[A. ALAGIRISWAMI, I. D. DUA AND C. A. VAIDIALINGAM, JI.]
The Delhi Rent Control :A.ct, 1952, s, 14-Lease of land by Improvr.
ment Trust to landlord
prohibiting
use
of
land
/or
comm<rclal
purposes-Landlord neverthelers leasing out part of building on land for
commercial purpose-Le..se is not void-Landlord is not estopped from
suing tenant for evictl'on-No estoppel agai'nst statutt-<;:ontroller
muJt
exercise one or the other of the two alternatires g,iven to
hint,
under
s.14(1)-Clause (c) and (k) of the proviso to s. 14(1), applicability of,
The respo;ndents were Jandldrds of two houses in the Karol Bagh
area of Delhi. The bOuses were built !1tl lands given on
Jong
lease
by the Delhi Improvement Trust to the rights, liabilities and a15ets of
which the Delhi Development Authority subsequently succeeded.
Under
the terms of the leases the buildings erected on the lands were to be
used for residential purposes only. If they were used for
any
other
purpose without the approval of the lessor the leases
would
become
void.
Portiotns of the buildings in question were however let out for
commercial purposes-viz. a barber shop and a scooter
repair
shop.
The Delhi Development Authority gave notice to the
landlords
that
since the buildings had been permitted to be used for commercial purposes the leases were liable to be determined.
They were called upon
to discontinue the use of the land for
commercial . purposes
failing
which they were asked to show cause why their leases should not be
determined and the laind together with the buildings thereon be not reentered upon without compensation. Thereupon the
landlords
issued
notice to the tenants asking them to stop the commercial use of the
buildings.
The landlords later on instituted proceedings
against
the
tenants under the Delhi Rent Control Act, 1958 but
the
Controller
dismissed the petitions. Their appeals were
dismissed. The
Division
Bench of the High Court decided in favour of the landlords.
In appeal
to this Court by special leave the question for c'onsideration was whether
the landlords were estopped or
otherwise
prohibited
from
getting
possession of the property from the tenants because
they
themselves
had let it out for commercial purposes.
The Court had to consid~r the
question in the light of the provisions of s. 14 of the Act.
HELD : (i) If it is a case \Vhere the. tenant has contrary to
the
terms of his tenoocy used the buildings for a commercial purpose the
landlord could take actio,n under clause (c) of the proviso to s. 14(1).
He need not depend upon clause (k) at all.
The only
situation
in
which clause (k) can take effect is when the lease is fdr a commercial
purpose agreed upon both by the landlord and the tenant but that is
<:ontrary to the terms of the lease of the land in favour of the landlord.
[459E-G]
(ii) The policy of the legislatures seems to be to put an end to
unauthorised use of the leased lands rather than merely to enable the
authorities .to get back possession of the leased lands. This concluai<*I
is further fortified by a reference to sub-section 11 of section 14. The
lease is not forfeited merely because the building put upon the leased
land is put to unauthori90d use.
The tenant is given an opportunity
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PAQIR CHAND v. R. R. BRANOT (Alagiriswami, /.)
455
to oom~ly with the condition imposed on the landlord by any of the·
authorities referred to in clause (k) of the proviso to sub-s,ection (I).
As !()Ill& as the condition imposed i1 complied with there is no forfeiture.
It even enables the controller to di'rect compensation to be paid to
the authority for a breach of the conditions, which must be done in the
presence of the authority. [459H; 460A-D]
(iii) The anxiety of the U.jislatul'e is to prevent unauthorised user
rather than protection of the tenaint or strenathening the hands of the
Development Authority in effectina forfeiture. The Development authority can always resort to the terms of the least, [460F-0]
There is no estoppel here because both the landlord and the tenant
knew that the tenancy was not Q\llO permitted unde'r the terms of the
lease cf the land.
In any case there can be no estoppel against
the
statute. It would not benefit the tenant even if it is held
that
the
landlord can:not, under the circumstances evict him.
The landlord will
lose bis property and the tenant will also lose.
He cannct after the
Development Authority takes over the building use it for a commercial
purpose. [4600-H]
Therefore the conclusion must be that the lease in its inception was
not void ncir is the landlord estopped from claimi:i>g possession because
he himself was a party to the breach of the conditions under which
the land was leased to him. Neither the clear weirds of the section
nor a consideration of the policy of the Act lead us to th,e conclusi<ln
that the lease was void in its inception if it was for an u.rnauthorised
user. [461A]
Smt. Uma Kumari v. Jc.swant Rai Chopra, P .L.R.
(1960)
460
and S. P. Arora v. Ajit Singh, l,L.R. (1970) II
Delhi
120,
disapproved.
Wan1an Shriniwas Kini ·v. Rati Lal Bhagwandas, A.1.R. 1959 S.C.
689, referred to.
[The Court found that s. 14 of the Delhi Develapment
Act
was
inapplicable to the case. The matter was sent back to the Controller
for deciding the questio,1> under sub-section (11) of Section 14 whether
he should exercise the one or the other of two alternatives
mentioned
therein.]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 846 and
1343 of 1972.
Appeal by special leave from the judgment and order dated
November 22, 1971 of the Delhi High Court in S.A.0. No. 83-D
of 1965
And Civil Appeal No. 1343 of 1973 [Appeal by
Special leave from the judgmenl and. order dated November 22,
1971 of the Delhi High Court in SAO No. 239-D of 1965.
V. M. Tarkunde, S. S. Shukla and A. P. Gupta, for the appellant (in C. A. No. 846).
S. P. Pandey, Shiv Prakash Pandey and S. S. Shukla, for the
appellant (in C. A. No. 1343).
D. N. Mukherjee, for respondent (in C. A. No. 846) .
. Bakshi Man Singh and Harbans Singh, for the respondell't (in
C.A. No. 1343).
456
SUPREME COURT REPORTS
(1973) 3 S,C.R.
Sardar Bahadur Saharya, Vishnu Bahadur Saharaya and Y.
Khushalani, for the Intervener (in C.A. No. 846).
A
The Judgment of the Court was delivered by
ALAGIRISWAMI, J.-These two appeals by special leave arc
against the judgmem of the High Court of Delhi allowing
the
appeals filed by 'the two respondents.
B
The respondents are landlords of two houses in the Karol Bagh
area of Delhi. The houses are built on lands given on long lease
by the Delhi Improvement Trust to the rights, liabilities and assets
of which the Delhi Development Authority has since suc~ecdcd.
Under the terms of the lease, subject to revision of recrt, the
lessees were to put up residential buildings on the leased lands
and the lessees undertook :
"(vi) not to use the said land and buildings that may
be erected thereon during the said term for any other
purpose than for the purpose of residential house without
the consell'! in writing of the said lessor; provided that
the lease shall become void if the land is used for any
purpose than that for which 1the lease is granted not being
a purpose subsequently approved by the lessor."
The present landlords ·are not the original lessees but their successors in interest.
Portions of buildings have been leased for
commercial purposes, a barber shop in C.A. 846 and a scooter
repair shop in C.A. 1343. The Delhi Development Authority
appears
to
have given
notice to them
drawing
their
attention to the provision of the lease extracted
above
and that as they had permitted the buildings to he used
for commercial purposes contrary to the terms of the lease deed,
the lease was liable to be determined and called upon them to discontinue the use of 'the land for commercial purposes, failing which
they were asked to show cause why their lease should not bie
determined and the land, together with the buildings ther~on. reen1ered upon without any compensation to tnem.
Thereupon the
landlords issued notice to the tenants asking them to stop the commercial use of the buildings and later instituled the proceedings
out of which these appeals arise. In both these cases the buildings
had been put to commercial use even before 1957 when th! Delhi
Development Authority Act of 1957 came into force.
The Con1roller dismissed thr petitions filed by the landlords
and the appeals filed by them were dismissed.
They thereupon
filed appeals to the High Court. A learned single Judge of the
High Court taking a view contrary to two earlier decisbns in
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FAQIR CHAND v. R. R. BHANOT (Alagiriswami, /.)
457
Smt. Uma Kumari v. Jaswant Rai Chopra(') and S. P. Arora v.
Ajit Singh(') referred 'the question that arise in these appeals to
a Division Bench which took a view contrary to that taken in the
two earlier decisions above referred to, and decidd in favour ol
the landlords.
The question that arises for decision in these cases is this : Are
the landlords esitopped or otherwise prohibited from getting posse~
ssion of the property from the tenants because they themselves had
let it out for commercialpurposes. We shall set out the relevant
portion of the statutory provisions regarding this question. Section
14 of the Delhi Rent Control Act 1958, which deals with the
question of protection to tenants agail\st eviction, in so far as it
is relevant, .is as follows :
"14. ( 1) Notwithstanding anything to the c0ntrary contained in any other law or contract, no order
or decree for the recovery of possession of any premises
shall be made by any court or Controller in favour of
the landlord against a tenant :
Provided that the Controller may, on an application
made to him in the prescribied manner, make an order
for the recovery of possession of the premises on one or
more of the following grounds only, namely-
( c) that the tenaRt has used the premises for a purpose other than that for which they were let-
(i) if the premises have been let on or after
the 9th day of June, 1952, wMhout obtaining the consent in writing of the landlord;
or
(ii) if the premises have been let before the s1id
date without obtaining his consent.
J_k) that the tenant has,
notwithstanding previ0us
notice, used or dealt with the premises in a manner contrary to any condition imposed on the
landlord by the Government or the Delhi Devel!Jpment Authority or the Municipal Corporation
of Delhi while giving him a lease of the land ,m
which the premises are situate.·•
Sub-section 11 of the same seotion, which is also relevan:., reads :
" ( 11) No order for the recovery of possession of
any premises shall be made on the ground specified in
clause (k) of the proviso to sub-section
(I). if the
tenant, within such time as may be specified in this
(I) P.L.R. (1960\ 460.
(2) l.L.R. (1970) !I Delhi 130.
458
SUPREME COURT REPORTS
[1973] 3 s.c.R.
behalf by the Controller, complies with the condition
imposed on the landlord by any of the authorities referred to in that clause or pays to that authority such
amount by way of compensation as the Controller may
direct."
Section 14 of the Delhi Development Act 1957 is as follows :
8
"14. After the coming into operation ol any of the
plans in a zone no person shall use or permit to be used
any land·or l:Juilding in that zone otherwise than in conformity with such plan :
Provided that it shall be lawful to continue to use
upon such terms and condition as may be prescribed
C
by regulations made ·in this behalf any land or building
for the purpose and to the extent for and to which it is
being used upon the date on which such plan comes iiito
force."
Before this Act was passed the United Provinces Town ImproveD
ment Act 1919 was in force in Delhi and the Delhi Improvement
Trust was constituted thereunder.
It was this Trust which had
leased the lands to the predecessors of the two landlords in the
present appeals.
The Delhi Development Authority established
under the Delhi Development Act 1957 succeeded to the asets,
rights and liabilities of the Delhi Improvement Trust. We shall
deal first with the question that arises under the Delhi Rent Control E
Act.
.
Clause (k) ol the proviso to sub-section (I) of Section 14
provides that the Controller may, on an application made to nim
in the prescribed manner, make an order for the recovery of
possession of the premises on the ground that the tenant has, notwithstanding previous notice, used or dealt with the premises in a F
manner contrary to any condition imposed on 'the landlord by the
Government or the Delhi Development Authority or the Municiphl Corporation of Delhi while giving him a lease of the land on
which the premises are situate. In this case the lease granted by
the Delhi Improvement Trust, the predecessors in interest of the
Delhi Development Authority, to the predecessors in interest of G
the landlords contains 'l condition that any building to be erected
on the land shall not be used for any purpose other ithan residential
purpose. There is no dispute that part of each of the buildings is
being used in a manner contrary to that condition. The landlord
has also given notice asking the tenant to cease JJSing the building
for that purpose. The two earlier decisions rclerred to held that
H
notwithstandihg this provision the landlord was not entitled to get
possessi.on of the land because he himself had leased the building
for a commercial purpose and was, therefore, estopped from
,
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FAQIR CHAND v. It .R. l!HANOT (Alagiriswami, !.)
459
claiming possession. The result will ~~ this : The Delhi Develo~
ment Authority can enforce the conditions of the lease and forfeit
the leased land with the buildings thereon. In that case both 1!1e
landlord as well as the tenant stand to lose. The landlords pomt
out 'this. situation and say that they are not interested in evicting
the tenants but are interested only in seeing that the tenants do
not use the buildings for commercial purposo with the consequences
that they may have to lose the land and the buildings and the
tenants also cannot any longer use it for a commercial purpose.
It has been argued on behalf of the tenants that this clause
will apply only where the tenant has used the land after previous
notice from the landlord, i.e., if the landlord had told him at the
beginning of the tenancy that the building was not to be used for
commercial purpose and notwithstanding that the tenant used it
for a commercial purpose. They, therefore, contend that as in
this case both the landlord and the tenant were aware of the use
to which the building was to be put there is no question of any
notice from the landlord asking the tenant not to use the building
for commercial purpose and by merely issuing such notice the
landlord cannot take advantage of clause (k) . This is really
another way of putting the argument that the landlord having
granted the lease for a commercial purpose is estopped from
comending that the tenant should not use it for commercial purpose. While the argument appears to be plausible we are of opinion
that there is no substance in this argument. If it is a case where
the otenant has contrary to the terms of his tenancy used the build·
ing for a commercial purpose the landlord could take action under
clause (c).
He need not depend upon clause (k) at all. These
two clauses are intended to meet different situations. 'there was no
need for an additional provision in clause (k) to ena~e a landlord
to get possession where the tenant has used the building for a
commercial purpose contrary to the terms of the tenancy. An intention to put in an useless provision in a statute cannot be imputed
to the Legislature.
Some meaning would have to be given to that
provision. The only situation in which it can take effect is where
the lease is for a commercial purpose agreed ·upon by both the
landlord and the tenant but th~t is contrary to the terms of the
lease of the land in favour of the landlord. That clause does not
come into operation where there is no provision in the lease of the
land in favour of the landlord, prohibiting its use for a commercial
purpose.
The legislature has clearly taken note of the fact that enormous
extents of land have been leased by the three authorities mentioned
in that clause, and has expressed by means of this clause its anxiety
to see that these lands are used for the purpose for which they
were leased. Tho policy of the legislature seems to be to put an
14-1<796Sup.C.T./73
460
SUPREME COURT REPORTS
[1973] 3 S.C.R.
end to unauthorised use of the leased lands rather than merely to
enable t!ie authorities to get back possession of the leased lands.
This conclusion is further fortified ~ a reference to sub-section l l
of section 14. The lease is not forfeited merely because the building
put upon the leased land is put to an· unauthorised use. The tenam
is given an opportunity to comply with the conditions imposed on
the landlord by any of the authorities referred to in clause (k) of
the proviso to sub-section ( 1). AB long as the condition imposed
is complied with there is no forfeiture. It even enables the Controller to direct compensation to be paid to the authority for a
breach of the conditions. Of course, the Controller cannot award
the payment of compensation to the authority except in the presence of the authority.
The authority may not be prepared to
accept compenswtion but might insist upon cessation of the unauthorized use. The sub-section does not also say who is to pay
the compensation, whether it is the landlord or the tenant. Apparently in awarding c-ompensation the Controller will have to
apportion the responsibility for the breach between the lessor and
the tenant.
The provision of clause (k) of the proviso to sub-section ( 1)
of section 14 is someil:hing which has' to be given effect to whatever
the original contract between the landlord and the tenant. The
leases were granted in 1940, and the buildings might have been
put up even before the Delhi and Ajmer Rent Control Act 1952
came into force. It was that Act that for the first time provided
the kind of remedy which is. found in clause (k). The relevant
provision in that Act enabled the landlord to get 110ssession where
the tenant whether before or after the commencement of the Act
used or dealt with the premises in a manner contrary to any condition imposed on the landlord by the Government or the Delhi
Improvement Trust while giving him. a lease of the land on which
the premises are situate notwithstanding previous notice. The
anxiety of !he legislature is to prevent unauthoriz.ed user rather
than protection of the tenant or strengthening the hands of Development Authority in effecting forfeiture.
The Development
Authority can always resort to the tenns of the lease. There is no
estoppel here because both the landlord and the tenant knew that
the tenancy was not one permitted under the terms of the lease of
the land. Iri any case there can be no estoopel against the statute.
It would not benefit the tenant even ii it is held that the landlord
cannot, under the circumstances, evict him.
The landlord will
li:>se his property and the tenant also will lose. He cannot, after
the Development Authority takes over the ~ilding use it for a
commercial purpose. We thus reach the conclusion that the lease
in its inceotion. was not void nor is the landlord estooped
from claiming possession because he himself was a party to the
breach of the conditions under which the land was leased to him.
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FAQIR CHAND V, R. R. BHANOT (Alagiriswami, J.)
.j Ii I
Neither the clear words of the section, as in Waman Shriniwas
Kini v. Rati Lal Bhagwandas('), nor a consideration of the policy
of the Act lead us to the conclusion that the lease was void in its
inception if it was for an unauthorised user.
We are also of the opinion that the High Court was not justified
in leaving to the Controller no option but to pass an order for
eviction.
'fhat would make rthe alternative provided in subsection ( 11) of section 14 useless. The High Court is not correct
in saying that since the Authority has no power to legalize the
misuser of land contrary to ithe plans by acceptance of compensation under the Development Act, the Controller cannot order the
payment of compensation by the tenant to 'the Delhi Development
Authority. This is in effect nullifying part of the provisions contained in sub-section ( 11) of section 14.
The High Court has
arrived at i'ts conclusion on the basis that section 14 of the Delhi
Development Act applies to this Case. We shall presently show
that that section has no relevance to the decision of this case.
It is under !he terms of the lease granted by the Delhi Improvement Trust that the use of this building for commercial purpose
is prohibited and not under the Delhi Development Act.
"Furthermore, section 14 applies not only to lands leased by
au1horities like the Delhi Development Authority containing conditions against unauthorised user as well as to lands which do not
belong to rthat category. Its provisions are not intended to enforce
the conditions in those leases. The proviso to that section deals
with the use to which a land or b1uilding may continue to be put
after rthe coming into force of any plan subject to such terms and
conditions as may be prescribed by regulations, provided that
building or land had been used for that purpose prior to the coming
into force of the plan. The section does not therefore contemplate
complete prohibition of the use of a land or building for purposes
other than that permitted in the plan. Such uses can be continued
subject to the terms and conditions prescribed by the regulations
provided it had been so used even 1*fore the plan. It is admitted
that no such regulations have been framed.
Therefore, if a plan
had come into operation in this area, the previous use can be continued till the regulations are framed and after t!:te regulations are
framed, they will be subject to the terms and conditions of those
regulations. We are of opinion, there.fore, rthat s. 14 of the Development Act has no relevance in deciding the question at issue in
this case."
The appeals are alloy;ed and the judgment of the High Court is
set aside. The matter will have to go back to the Controller for
(I) A.l.R. 1959 S.C. 6R9.
462
SUPREME COURT REPORTS
[1973] 3 S.C.R.
deciding the question under sub-section ( 11) of section 14 whether
he · should exercise the one or the other of the two alternatives
mentioned therein. As already mentioned, no order awarding
compensation under the second alternative given in that sub-section
can be made except in the presence of the Delhi Development
Authority. In the circwnstances of rthis case we direct the parties
to bear their own costs.
G.C.
Appeals allowed.
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