# NJllAL CHAND v. KALYAN CHAND JAIN

- **Citation:** [1978] 2 S.C.R. 183
- **Court:** Supreme Court of India
- **Decided:** 1977-11-15
- **Case number:** Civil Appeal No. 743 of 1977
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/njllal-chand-v-kalyan-chand-jain-7340
- **Pages:** 10

## Headnote

NJllAL CHAND
v.
KALYAN CHAND JAIN
November 15, 1977
LN. L. lJNTWALIA AND V. D. TULZAPURKAR, JJ.]
183
A
Delhi Rent Control Act, 1958, S. 144(1) rec¢/ with s. 25 [BJ-Construction
B
of S. 14A(l)-Cause of action to sue u/s 14A(l) when 'accrues'.
Pursuant to the decision of the Government dated September 9, 1975 that
Government servants who owned houses in their own names or in the name of
their fan1ilie:; and \Vere occupying Government accommodation should be required to vacate Government accommodation allotted to them within :hree
months from 1st October 1975 and that in default of their vacating Government accon1modation by December 31, 1975, they should be charged enhanced
licence fee at the market rates, the appellant, landlord a GovernIDent servant
C
who was in occupation of a government accommodation bearing No. ll·ll/
791 situated at Lodhi Colony, New Delhi was also served with a general
Order dated Sept. 30, 1975 to that effect.
The appellant,
who in
his
own name owned a two and half storied residential house bearing No. W·43,
Green Park, New Delhi filed an application u/s 14A(l) read with S. 25B
of the Delhi Rent Control (Amendment) Ordinance 1975 (No. 24 of 1975)
for eviction of the respondent-tenant from the first floor of his house, on
the ground that he had been asked to vacate the Government accommodation
D
on account of his owning a house in the Uniol\ Territory of Delhi and
had incurred an obligation to pay penal licence fee in default.
Jn response
to the Sl!!llmons served upon him, the respondent·tenant filed, on January
16, 1976, an application supported by a detailed affidavit seeking leave to
contest and defend the case on various grounds .viz.: (1) The summary
procedure provided u/s 25B
\Vas available not for an application filed
u/s 14A(l) but only for an application seeking eviction u/s 14(1)(e) uf
the Delhi Rent Control Act, (ii) Even othenvise since according to the
landlord's own showing he had retired from Government service on November
E
30, 197 5 and v.·as therefore, liable to vacate the Government accommodation,
the application u/s 14A(1) was not maintainable, in other words S. 14A(l)
\Vas not meant for a retired Government servant or a Government servant
who was· transferred outside Delhi; (iii) The application seeking his eviction
was not filed bona fide inasmuch as the appellant·landlord had earlier filed
an application No. 497 /1975 seeking respondent's eviction from the premises
on the ground of bona fide personal requirement u /s 14 ( 1) ( c) which had
been di~mi&sed by the Additional Rent Controller on December 17, 1975;
(iv) The application for eviction was wholly mala fide because the premises
F
were let out initially at a rent of Rs. 300 /- per month which was increased
lo Rs. 350,'. per month w.e.f. October 1, 1971 and thereafter it was further
increased to Rs. 400 /· per month and further because when the ground floor
μremises of the house in question had fallen vacant on two occasions
prior t0 the filing of the application the landlord instead of himself occupying
the said premises had let out the same at higher rents. _The appellant land·
lord ref 1_1tei.I these contentions and explained the
circumstances why lie bad
let out rorti0ns of his house after these had fallen vacant during the pendency of his earlier eviction application and prior to his filing the instant
G
application.
By his crder dated August 11, 1976, the Rent Controller Delhi, negatived
all the contentions urged by the Respondent·tenant,
rejected his
prayer for
granting leave to contest and defend the proceedings and passed an order of
eviction against him u/s 14A(l) directing the respondent to deliver vacant
possession of the premises in his occupation to the appellant-landlord within
t\vO months from the date of the order. The Revision applications file.cl by
the mpondent was allowed by the Delhi High
Court which
held:
(I)
H
S. 14A' 1) would not be available to a landlord who was an allottee of !he
Governn1ent accommoda

## Text

NJllAL CHAND
v.
KALYAN CHAND JAIN
November 15, 1977
LN. L. lJNTWALIA AND V. D. TULZAPURKAR, JJ.]
183
A
Delhi Rent Control Act, 1958, S. 144(1) rec¢/ with s. 25 [BJ-Construction
B
of S. 14A(l)-Cause of action to sue u/s 14A(l) when 'accrues'.
Pursuant to the decision of the Government dated September 9, 1975 that
Government servants who owned houses in their own names or in the name of
their fan1ilie:; and \Vere occupying Government accommodation should be required to vacate Government accommodation allotted to them within :hree
months from 1st October 1975 and that in default of their vacating Government accon1modation by December 31, 1975, they should be charged enhanced
licence fee at the market rates, the appellant, landlord a GovernIDent servant
C
who was in occupation of a government accommodation bearing No. ll·ll/
791 situated at Lodhi Colony, New Delhi was also served with a general
Order dated Sept. 30, 1975 to that effect.
The appellant,
who in
his
own name owned a two and half storied residential house bearing No. W·43,
Green Park, New Delhi filed an application u/s 14A(l) read with S. 25B
of the Delhi Rent Control (Amendment) Ordinance 1975 (No. 24 of 1975)
for eviction of the respondent-tenant from the first floor of his house, on
the ground that he had been asked to vacate the Government accommodation
D
on account of his owning a house in the Uniol\ Territory of Delhi and
had incurred an obligation to pay penal licence fee in default.
Jn response
to the Sl!!llmons served upon him, the respondent·tenant filed, on January
16, 1976, an application supported by a detailed affidavit seeking leave to
contest and defend the case on various grounds .viz.: (1) The summary
procedure provided u/s 25B
\Vas available not for an application filed
u/s 14A(l) but only for an application seeking eviction u/s 14(1)(e) uf
the Delhi Rent Control Act, (ii) Even othenvise since according to the
landlord's own showing he had retired from Government service on November
E
30, 197 5 and v.·as therefore, liable to vacate the Government accommodation,
the application u/s 14A(1) was not maintainable, in other words S. 14A(l)
\Vas not meant for a retired Government servant or a Government servant
who was· transferred outside Delhi; (iii) The application seeking his eviction
was not filed bona fide inasmuch as the appellant·landlord had earlier filed
an application No. 497 /1975 seeking respondent's eviction from the premises
on the ground of bona fide personal requirement u /s 14 ( 1) ( c) which had
been di~mi&sed by the Additional Rent Controller on December 17, 1975;
(iv) The application for eviction was wholly mala fide because the premises
F
were let out initially at a rent of Rs. 300 /- per month which was increased
lo Rs. 350,'. per month w.e.f. October 1, 1971 and thereafter it was further
increased to Rs. 400 /· per month and further because when the ground floor
μremises of the house in question had fallen vacant on two occasions
prior t0 the filing of the application the landlord instead of himself occupying
the said premises had let out the same at higher rents. _The appellant land·
lord ref 1_1tei.I these contentions and explained the
circumstances why lie bad
let out rorti0ns of his house after these had fallen vacant during the pendency of his earlier eviction application and prior to his filing the instant
G
application.
By his crder dated August 11, 1976, the Rent Controller Delhi, negatived
all the contentions urged by the Respondent·tenant,
rejected his
prayer for
granting leave to contest and defend the proceedings and passed an order of
eviction against him u/s 14A(l) directing the respondent to deliver vacant
possession of the premises in his occupation to the appellant-landlord within
t\vO months from the date of the order. The Revision applications file.cl by
the mpondent was allowed by the Delhi High
Court which
held:
(I)
H
S. 14A' 1) would not be available to a landlord who was an allottee of !he
Governn1ent accommodation of whose allotment was liable to be cancelled
by virtue of his retirement from service or transfer outside Delhi.
(ii) Tue
.A
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1 g.j
~l:fRL\1E COURT REPORTS
[1978] 2 S.C.R.
pro\ 1s1on ( .i S. 14.\ ( 1) :is also the su1nmary procedure provided u/s 25B of
the Act \Vere extraordinary provisions intended to ensure expeditious eviction
of tenant: who v.rcre in occupation of residential accommodation owned· by
such allo!tees of Govt. accommodation who were required to
vacate
by
virtue of their O\vnership of such accommodation, that these provisions were
intended to deal with hard cases and that no landlord should be
permitted
to take undue advantage thereof. if he was required to vacate Govt. accommodation by Yirtue of his retirement or transfer and (iii) on the facts of
the
case the <1,ppellant V.'as not entitled to invoke the provisions of S. 14A( 1) of
the Act inasmuch as even before the application \Vas filed he had aheady
retired from service and \Vas on that account liable to vacate the Government
accon1n1odntion
Allowing the ap-peal by special leave the Court,
HELD: (I) The object of S. 14A is to confer a right on certain landlords
to recover "immediate possession of the premises" belonging to them
and
\vhich are in possession of their tenants provided they are required to vacate
Govt. acc:on1modation in their occupation by a general or specific order. Such
a right is "to accrue" to a landlord on his satisfying the following conditions :
(a) Such landlord must be in occupation of a
residential
accommodat1011
allotted to him by the Central Government or any local authority; and
(b)
such a landlord must have been required to vacate such residential accommodation or in default to incur certain obligations by any general or special
order 1nade by that Government or authority on the ground that he owns in
the Union Territory of Delhi a residential accommodatio1i either in his own
name or in the name of his \Vife or dependant child.
To such a landlord
who satisfif~s the aforesaid conditions the right to evict his tenant accrues "on
or from the date of such order" (meaning the general or special order by
which he
i~s required to vacale or in default he incurs certain obligatjons).
The crucial \Vords are 'on or from the date of such order." with the result
that the cause of action accrues to the landlord on the date when he is
served with the general or special order requiring him to vacate
or inCur
obligations, though the speedy remedy to secure possession of that cause of
action could be said to have been made available to him onlv with the
coming into force of the Ordinance No. 24 of 1975. [189 D·G] ·
(2) In the instant case, the appellant landlord is entitled to invoke the
provisions of S. 14A ( 1) notwithstanding the fact that he
had
retired frorr1
service w.e.f. November 30, 1975.
Pursuant to Central Government's dcci:-:ion
taken in 1h:1t behalf on September 9, 1975, a general order, requiring him to
vacate the cJovt. accommodation or in default to incur obligation of payment
of penal licence fee on the ground that he owns a residential accommodation
in his own name in the Union Territory of Delhi
was
served
upon
the
appellant-landlord on Sept. 30, 1975, which was much before his retirement,
which took place on November 30, 1975.
In other words when the cause
of action arose or the right to evict his tenant accrued to him, the appellantlandlord was very much in service. This is not a case where the
right
to
evict has accrued to a government servant landlord simultaneously with or
after his rctiremenL fron1 service. [190 G, 191 C-D]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 743 of 1977
Appeal by Special Leave from tbe Judgment and Order
dated
6-12-76 of the Delhi High Court in Civil Revision No. 562/76.
Sardar Bahadur Saharya
and Vishn1t Bahadur Sahnrya for the
Appellant.
Radha Krishna Makhija, S. K. Mehta and P. N. Puri for the
~.~
Respondent.
("'
H
The Judgment of tbe Court was delivered by
TuLzAPURKAR, J.- This appeal by special leave is directed against
the judgment and order dated December 6, 1976 of the Delhi High
r'-
NIHAL CHAND v. K. c. JAIN (Tulzapurkar, J.)
185
•Court dismissing the appellant-landlord's application for eviction under
A
:s. 14A (1) read with s. 25B of the Delhi Rent Control Act 1958,
which provisions were inserted therein: by Delhi Rent Control (Amend·
ment) Ordinance, 1975 (No. 24 of 1975) subsequently replaced by
.the Delhi Rent Control (Amendment) Act No. 18 of 1976.
The appellant-landlord being a Government servant was at !lie
material time in occupation of a residential accommodation bearmg
B
No. B-11/791, situated at Lodhi Colony, New Delhi, the same having
been allotted to him by the Central Government.
It appears that he
()Wns a two and a half storied residential house bearing No. F-43, Green
Park, New Delhi, in his own name.
In 1968 \he appeliant-landlord
let out the first floor of his said house to the respondent for residential
purposes on a monthly rent of Rs. 300/- which was later on increased
to Rs. 400/- per month, exclusive of electricity and water charges. By c
a general order dated September 9, 1975, the Government of India,
Ministry of Works & Housing, Directorate of Est~t~s, took a decision
in supersession of all pervions orders on the subject, that Government
servants who have or own houses at the place of their posting, within
the limits of any local or adjoining municipality, should be required to
vacate Government accommodation allotted to them witilin' three montils
from the Ist of October, 1975 and that in default of their vacating GoD
vernment accommodation by December 31, 1975, they should
be
charged enhanced licence fee at the market rates.
Pursuant to this
decision, by a general order dated September 30, 1975, issued by the
Cabinet Secretariat, Government of India all officers and members of
the staff who owned houses in their own names or in tile names
of
their families and were occupying Government accommodation were
called upon· to vacate tile Government accommodation within
tliree
E
months with effect from October 1, 1975, failing which they were informed that tiley would be charged market rent after snch date. Copies
•of this order were circulated to all offices and branches at headquarters and all outstation offices for information and in particular a copy
was also forwarded to the appellant"landlord who happened to be the
Accounts Officer, Pay and Accounts Office, Dept. of Supply. Government of India.
In view of this order dated September 30, 1975, the
F
appellant-landlord on December 19, 1975 filed an application under s.
14A(l) read with s. 25B of the Delhi Rent Control (Amendment)
'Ordinance, 1975 (No. 24 of 1975) for eviction of the
respondenttenant from tile first floor of house No. F-43, Green Park, New Delhi,
on the ground that he had been asked to vacate the Government accommodation on account of his owning a house in the Union Territory
of Delhi and had incntred an obligation to pay penal licence fee
in
G
default.
In response to the summons served npon him in accordance
with the Third Schedule under s. 25D(2) of the said Ordinance the
responde~t-tenant fil~d on Ianuary 16. 1976 an application supported
by a detailed affidavit, seeking leave to contest and defend the case on
several grounds.
First, it was contended that the summary procedure
provided nnder s. 25B was available not for an application filed under
s. l 4A( 1) but only for an application seekin~ eviction on ground of perH
son:;! bona fide requirement nnder s. 14(1) ( c) of the Delhi Rent Control Act. Secondly, it was contended that even otherwise since according
to the landlord's own showing he had retired from Government service
186
SUPREME COURT REPORTS
[1978] 2 S.C.R.
A
on November 30, 1975 and was, therefore, liable. to vacate the Government accommodation, the application under s. 14A(l) was not maintainable in other words, s. 14A(l) was not meant for a retired Government servant or a Government servant who was transferred outside Delhi.
Thirdly, it was contended that the application seaking his
eviction was not filed bona fide inasmuch as the appellant-landlord had
earlier filed an application No. 497 of 1975 seeking respondent's eviction from the premises on the ground of bona fide personal requirement
under s. 14(1 )( e) which had been dismissed by the Additional Rent
Controller on December 17, 1975 inasmuch as his requirement could
not be considered to be bona fide.
Fourthly, it was contended that
the application for eviction was wholly mak1 fide because the premises
were let out initially at a rent of Rs. 300/- per month which was increased to Rs. 350/- per month with effect from October 1, 1971 and
thereafter it was further increased to Rs. 400 /- per month and further
because when the ground floor premises of the house in question had
fallen vacant on two occasions prior to the filing of the opplication, the
landlord instead of himself occupying the said premises, had let out the
same at higher rents.
The appellant-landlord refuted these contentions and explained the circumstances why he had let out portions of his
house after these had fallen vacant during the pendency of his earlier
eviction-application and prior to his filing the instant application.
B
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By his order dated August 11, J 97 6, Shri R. K. Sain, Rent Controller, Delhi, negatived all the contentions that were urged by the respondent-tenant, rejected his prayer for granting leave to contest and
defend the proceedings and passed an order for eviction against him,.
under s. 14A of the Act directing the respondent to deliver vacant
possession of the premises in his occupation to the appdlant-landlord
within two months from the date of the order. The Rent Controller
took the view that the summary procedure under s. 25B had been made
applicable to applications under s. 14A when Ordinance No. 24 of
1975 was replaced by Amending Act 18 of 1975 with retrospective
effect, that s. 14A(l) was available to the appellant-landlord notwithstanding his retirement from service on November 30, 1975 inasmuch
as the documents on record clearly showed that he had been called·
upon to vacate the Government accommodation not because of
his
retirement but on the ground of his owning a house in the Union Territory of Delhi and that the cause of action accrned to him on September 30, 1975 when he was served with the general order of that date ...
. . . . . . . . . . He also took the view that the dismissaJ of the
earlier
petition under s. 14(1) (e) had no bearing on the instant application
for eviction because the instant application was based on a different
cause of action requiring different set of facts to be proved which the
appellant-landlord had proved in the case and according lo him ftlrthcr
the circumstances put forward by appellant-landlord explainin7 why
he had let out portions of the house in question prior to the coming
into force of the Ordinance and prior to his filing the instant application
had no bearing on the issue involved in the case.
Since according to
him the appellant-lancUord had satisfied or fulfilled all the c0rditions
of s. 14A and since the respondent-tenant had not made out any ca.sec
for the grant of leave to contest the proceedings, the Rent Controller
•
-)
NIHAL CilAND v. K. c. JAIN (Tulzapurkar, l.)
I ~7
Jcfused leave to contest the case to the respondent and passed the cvict.
tion order in favour of the appellant-landlord.
Feeling aggrieved by the Rent Controller's order the respondenttenant preferred a R-evisional Application (C.R.A 562 of 1976) to the
Delhi High Court.
This revisional application was heard along with
a group of other similar revisional applications and all these were disposed of by a common judgment by the High Court on December
6,
B
1976 since they raised certain common questions, particularly the question as to the circumstances in which leave should be granted to
a
tenant under sub-s. (5) of s. 25B of the Delhi Rent Control Act 1958
as amended by Act 18 of J 976.
So far as the respondent's revisional
application was concerned, the only contention urged on his behalf
and which found favour with the High Court was thats. ! 4A( l) would
not be available to a landlord who was an allottee of !he Government
C
accommodation and whose allotment was liable to be cancelkcl by
virtue u[ his retire1nent from service or transfer outside Delhi.
Th{!
High Court pointed out that the provision of s. J 4A (I) as a'lso the
summary procedure provided under s. 25B of the Act were extraordinary provisions intended to ensure expeditious eviction cf tenants
who were in occupation of residential accommodation owned by such
allottees of Government accommodation who were required to ..acatc
D
by virtue of their ownership of such accommodation, that these provisions were intended to deal wi,:h had cases and that no landlord
should be permitted to take undue advantage thereof if he was required
to vacate Government accommodation by virtue of his retirement or
transfer. On the facts of the case, the High Court took the view that
the appellant was not entitled to invoke the provision of s. 14A( 1) of
the Act inasmuch as even before the application for eviction was filed
E
he had already retired from servire and was on that account liable
to vacate the Government accommodation. In this view of the matter,
the High Court allowed the revisional application, set aside the Rent
Controller's order and dismissed the application for eviction filed by
the appellant-landlord, leaving the parties to bear the respective costs
throughout. It is this order passed by the High Court on December 6,
1976 that has been challenged by the appellant-landlord before us.
F
Mr. Saharya, Counsel for the appellant-landlord, raised two or
three contentions before us in support of the appeal.
In the first place
he contended thats. 14A(l) merely speaks of "a landlord, who being
a person in occupation of any residential premises allotted to him by
Central Government or any local authority" and does not refer to
a
G
Government servant as such who is in occupation of ;1 residential accommodation allotted to him by Central Government or
any loca\
authority and as such it covers the case of a Non-Govt. cervant, as for
instance a Law-Officer, being in occupation of Government accommodation and in whose case the concept of retirement fmm service of
transfer outside Delhi would be inappropriate and irrelevant and, therefore it cannot be said that eases of Government servants required to
H
vac~te Govermnent accommodation on account of retirement or transfer would be outside the purview of the section.
Secondly,
he
mged that the view taken by the High Court that Government servants
13-1042 SCI/77
A
B
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F
G
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188
SUPREME comn &EPORT9'
[1978] 2 s;c.R.
•
who are required to vacate the Gove=ent accommodation on account
of retirement or transfer wonk! be outside the purview of the section is
unwarranted and unsustainable on a proper construction of the section.
Thirdly, he contended that on the facts in the present case, the appellant-landlord though he retired from service on November 30, 1975
was in terms called upon to vacate the Govermnent acco=odation not
on account of his retirement but on the ground that owned in his own
name a residential accommodation in the Union Territory ot Delhi and
that he was called upon to pay, and he did pay for some time,
the
penal licence fee for retaining the Government accommodation beyond
December 21, 1975 and as such it should have been held that s. 14A
(1) was available to him and had been properly availed of by him.
He urged that the Rent Controller was right in his view that the appellant-landlord had satisfied all the requirements and conditions o[ s.
14A(l) and was entitled to an eviction order in his favour.
On the other hand, Mr. Makhija, counsel for the respondent-tenam.
supported the view taken by the High Court for the reasons indicated
by it in its judgment. Relying upon a letter dated September 9, 1976,
addressed by the Assistant Director of Estates to the Assistant Director, Cabinet Secretariat, copy of which was forwarded to the appellantJandlord (being Annexure 'D' to appellant's affidavit fikd in support
of the special leave petition appearing at page 94 of Vol. l of the
record) he contended that the allotment of Governmem accommodation
in favour of the appellant-landlord had been cancelled with effecl from
January 31. 1976 after the expiry of the concessional period cf
two
months admissible to him under the rules on his n:tirement from service on November 30, 1975 and, therefore, it could not be said that
th.e appellant was required to vacate Government accommodation on
the ground of his owning residential accommodation in the Union Territory of Delhi pursuant to the order dated September 30, 1975 under
which his allotment would have been cancelled with effect from December 31, 1975.
He, therefore, urged that the Rent Controller\ \iew
ha<l been rightly reversed by the High Court.
Since the question raised before us primarily pertains to proper
construction of the provision contained ins. 14A(1), it would be
desirable to set ont the said provision which runs thus .
"I 4A Right to recover immediate possession of premises
to accrue to certain persons.-(1) Where a landlord who,.
being a person in occupation of any residential premises allotted to him by the Central Government or any focal ·authority
is required, by, or in pursuance of, any general or special
order made by that Government or authority. to vacate such
residential accommodation, or in dafault, to incur certain
obligations. on the ground that he owns, in the Union Terri-·
tory of Delhi, a residential accommodation either in his own
name or in the name of his wife or dependent child, there
shall accrue. on and from the date of such order. to such
landlord, notwithstanding anything contained elsewhere in thi•
Act or in any other law for the time being in force or in any
contract (whether express or implied), cnstom or usa2e to
f
I
l
..
.~
NIHAL CHAND v. K. c. JAIN (Tulzapurkar, J.)
189
the contrary, a right to recover immediate possession of any_
premises let out by him : "
At the ouset it may be stated that initially the aforesa_id provisiou
as also. Chapter III A, comprising ss. 25A to 25C dealing with summary
trial of certain applications were introduced in the Delhi Rent Control
Act, 19 5 8 by means of Delhi Rent Control (Amendment) Ordinance
No. 24 of 1975, which came into force on December 1, 1975. Subsequently, the said Ordinance was rep.laced by the Delhi Rent Control
(Amendment) Act 18 of 1976. This Amendment Act was put on the
Statute Book on February 9, 1976, but by virtue of sub-s. 1 it
"shall be deemed to have come into force on December 1, 1975" 1.e. the
date of the enforcement of the Ordinance.
The Statement of Objects
and Reasons accompanying the Amending Bill (No. XII of
1.976)
clearly brings out the fact that the said amendment was necessitated
because of the Central Government's decision on September 9,
1975
that a person who owns a house in his place of work should vacate the
Government accommodation allotted to him on or before December 31,
1975; in other words, a speedy and eitpeditious remedy was provided
to such a person to evict a tenant from bis own house if he was required
to vacate Government accommodation by or pursuant to a general ~f
special order of the Government on the ground of his owning a residential accommodation in the Union Territory of Delhi.
The object
of s. 14A is thus to confer a right on certain landlords to reco,·er
"immediate possession of the premises" belonging to them and which
are in possession of their tenants provided they are required to vacate
Government acoommodation in their occupation by a general or special
order. On a plain reading of the section it will appear clear that such
a right is "to accrue" to a laμdlord on his satisfying the followi11g conditions : (a) such a landlord must be in occupation of a residential
accommodation allotted to him by the Central Government ·or any
local authority; and (b) such a landlord must have been required to
vacate rnch residential accommodation or in default to incur certain
obligations by any general or special order made by that Government
or authority on the gronnd that he owns in the Union Territory of Delhi
a residential accommodation either in bis own name or in the name
of his wife or dependant child. It is also clear that, to such a landlord,
who satisfies the aforesaid conditions, the right to evict his tenant
accrues "on or from the date of snch order" (meaning the general of
special order by which he is required to vacate or in de.fault he incurs
certain obligations) .
The crucial words are "'on or from the date of
such order" with the result that the cause of action accrues to the landlord on the date when he is served with the general or special order requiring him to vacate or incur obligations, though the speedy remedy
to secure possession on that canse ·of action could be said to have been
made available to him only with the coming into force of the Ordinance
No. 24 of 1975.
It is in the light of these provisions that we will have
to consider whether on the facts of the instant c"ase the
appellantlandlord was entitled to invoke s. l 4A of the Act or not.
Mr. Makhija appearing for the respondent-tenant,
urged that
on a plain reading of s. 14A(l) it wonld be clear that only.if
the
landlord was reqnfred to vacate Government accommodation "on tl1>'
A
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--;--,.·,,-- · ....
- I
-:- .'\'
- '
190
SUPREME COURT, REPORTS
, [1978] 2 s.c.R.
-- ground that he owns in the Union Territory of Delhi a r&.;idential ac-
:A
commodation", he would be entitled to eject a tenant and recover immediate possession of the premises belonging to him which are in tllc
occupation of the tenant but if such a landlord who is in occupation 01
Government accommodation is liable to vacate Government accommodation either on account of his retirement or transfer, both of whicll
might have taken place before. he has sought eviction of the tenani,
B
such a case would be beyond the purview of s. 14A(l) cf the Act, tor,
according to him, reading s. -14A(l) and ss. 25A to 25C alongwitll
Government's decision dated September 9, 1975, which necessitatEd
the insertion of the provisions in the enactment, it would be
cleat
that these provisions were not intended to be used by a landlord who
has either retired from service or is transferred outside Delhi beforeDecember 1, 1975 and must vacate the Goverment accommodation -
C
on that account. He pointed out that in the instant case the appellant-landlord had retired on November 30,-1975-long prior to
the
coming into force of the Ordinance No. 24 of 1975 and as such he
had to vacate the Government accommodation on account of his retirement.
He further pointed out that even the application for eviction
had been filed by the appellant against the respondent on· December
19, 1975 long after he had retired from Government service and had
D
incurred the obligation to vacate the Government accommodafion on
account of such retirement.
He also pointed out that if the letter
dated September 9, 1976, being Annexure 'D' to appellant's affidavit
filed in support of the special leave petition (appearing at page
94
of Vol. I), is seen, it will appear clear that the allotment of Government premises to the appellant had been, cancelled with effect from
January 31, 1976 after allowing concessional period of two months
E
admissible to him under' the rules on his retirement from Government
service on November 30, 1975. -He, therefore, urged that s. 14A(l)
would not be available. to such a landlord.
-
,There appears to be some force in the view taken by the
_ Higil
Court that the provision of s. 14A( 1) was not intended for Government servants who have retired from Government servic~ or who have
F · been transferred outside Delhi and the provision substantially
was
intended for the benefit of such landlords who continue in Government
service in the Union Territory of Delhi and who are required to vacate
Government accommodation in their occupation er in default to incur
certain obligations on account of their owning residential accoinmodations in their own names or in the names of their wives or dependent
children, but having regard to the peculiar facts which obtain in the __
instant case it is unnecessary for us to go into such larger.question. On
the facts- obtaining here we are clearly of the view that the appellantG
II
•
landlord is entitled to invoke the provisions of s. 14A(l) notwithstandini: the fact that he had retired from service with effect from November
30, 1975 .. In the first place, it cannot be disputed that he satisfies all
the requirements of s. 14A(l) in the ~ense that he is a landlord who
is in occupation of a residential accommodation allotted to him by the _
Central Government and that Ion~ before his retirement on November
30, 1975, he was, by general order dated September 30,, 1975, issued _ -
by the Government, required to vacate that accommodation on or
before December 31; 1975 or in default to incur an obligation by way
'
t
\
NIHAL CHAND v. K. c. JAIN (Tulzapurkar, !.)
191
payment of penacl licence fee on the ground t.hat he i.s ownin!\ a rnsi~
dential accommodation in his own name m the U mon Terntory of
Delhi.
It is true that the provisions of s. 14A(l) and the speedy
remedy available under s. 25B came to be inserted in the Ddhi Rent
Control Act 1958 with effect from December 1, 1975 and naturally.
therefore he made an application for eviction on December 19, 1975,
but as p~inted out earlier, to a landlord who satisfies the requirements
of ~. 14A(l} the cause of action arises or the right to evict h;s
tenant accrues 'on or from the date of the order' that ;nay be served
upon him whereby he is required to vacate the Government acco.mmudation or in default to incur the liability to pay higher penal licence
fee on the ground that he owns a residential accommodation in
)11s
own name in the Union Territory of Delhi.
In the instant case, adm1tted·ly, pursuant to Central Government's decision taken in that behalf
on September 9, 1975, a general order, requiring him to vacate
the
Government accommodation or in default to incur obligation of payment of penal licence fee on the ground that he owns residential
accommodation in his own name in the Union Territory of Delhi, was
served upon the appellant-landlord on September 30, 1975, which was
much before his retirement, which took place on November 30, 1975.
In other words when the cause of action arose _or the right to evict h1'
tenant accrued to him the appellant-landlord was very much in service.
This is not a case where the right to evict has accrued to a Government
servant landlord simultaneously with or after his retirement.
It
is
thus clear that upon service of such general order dated September 30,
1975, upon the appellant-landlord, a right accrued to him under s. 14A
of the Act, though, as said earlier, the speedy remedy contemplated
under s. 25B became available to him after the Ordinance Np. 24 of
1975 came into force.
Apart from service of this general order, it
was not disputed before us that by letter dated January 14, 1976 en·
hanced licence fee at the market rate, namely, at the rate of Rs. 520/-
per month in place of Rs. 64/- per month, which was payable by the
appellant-landlord to the Government. upto December 3 J, 1975. was
actually demanded by the Government from the appellant-landlord and
the appellant-landlord has not only incurred this obligation but h.as
fulfilled this obligation for a few months by paying the licence fee at
the enhanced market rate.
The letter dated September 9, 1976, on
which strong reliance was placed bv Mr. Makhija, contains rather contradictory averments.
It is true that in this letter it has been stated
that the allotment of the Go,vernment a'ccommodation in favour of the
appellant-landlord shall be deemed to have been cancelled with effect
from January 31, 1976, that is to say, after allowing the concessional
period of two months admissible to him under the rules after his retirement from Government service on November 30. 1975, but bv the
·same letter the appellant-landlord has been informed that he is liable
to pay enhanced market liceuce fee "with effect from Januarv 1, 1976
being a house-owner." in other words, even by this letter dated September 9, 1976 enhanced market licence fee is claimed from the appe!lantlandlon! with effect from January 1, 1976, which could only be
on
the basis that he was called upon to vacate the premises on or before
December 31, 1975 pursuant to the general order dated September 30,
1975 which was served upon him.
-It was faintly argued by
Mr.
A
B
c
D
E
F
G
H
A
B
c
D
192
SUPREME COURT REPORTS
[1978] 2 S.C.R.
Makhija that the demand for enhanced licence fee with effect
from
January 1, 1976 made by the Government by this •letter must be by
mistake because in the main body of the letter it has been recited that
the allotment of the Government premises in favour of the appeUant is
deemed to have been cancelled with effect from January 31, 1976. It
ts not possible to accept this contention of Mr. Makhija nnd it appears
to us that the reference to deemed cancellation of the allotment of the
appellant with effect from January 31, ·1976 is a mistake in ·view
ot
the Government's decision of September 9, 1975 and the contents of
the general order dated September 30, 1975.
In any case the letter
da.ted September 9, 1976 on which reliance has been pbced by
Mt.
Makhija is self-contradictory and can be of no avail to show that C•··
appellant was required to vacate the premises on account of retirement
and not on ground of his owning residential accommodation in
th~
Union Territory of Delhi, especially, in view of the general order dated
September 30, 1975 that was served upon the appellant--landlord.
Having regard to the above discussion we are clearly of the view that
the appellant-landlord was entitled to invoke the provision of s. 14A
of the Act and, therefore, the decision of the Rent Controller
was
right.
We accordingly allow the appeal and set aside the order
of
the High Court and restore that of the Rent Controller.
In the
circumstances of the case there will be no order as to the costs.
S.R.
Appeal allowed.
(