# PRECISION STEEL AND El~GINEERING WORKS AND ANOTEER v. PREM DEVA NIRANJAN DEVA TAYAL

- **Citation:** [1983] 1 S.C.R. 498
- **Court:** Supreme Court of India
- **Decided:** 1982-10-07
- **Case number:** Civil Appeal No. 209 . of 1981
- **Bench:** D.A. Dbsai, A.P. Sen, Baharul Islam
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/precision-steel-and-el-gineering-works-and-anoteer-v-prem-deva-niranjan-deva-8579
- **Pages:** 42

## Headnote

Delhi Rent Conlfol :Act, 1958-Sub-s. (5) of S. 258 read with Clouse ( e) of
. . f' -
proviso to S. 14( !)-Jurisdiction of Controller-Grant of leave to tenant to contest
.
landlord's application for eviction-Nature and scope of.
Delhi Rent Control Act, 1958-Sub-S. (I) of S. 31-Not attracted at the
stage of considering affidavit of tenant seeking leave to contest under sub-s. (5) of
s.2so:
'
Code of CM/ Procedure, 1908-0. XXXV!l, rule 3(5) and De/ht Rent Control Act, 1958-S. 25B(5J~Jurisdiction to grant /eaVe-Comparison of.,
Re1tt restriction legislation-Approach to interpretation of.
Laws of procedure-Approach to interprela!ion of.
A landlord cab make an application for recovery of possession under
Clause (e) of the proviso to s. 14(1) of the Delhi Rent Control Act, 1958, on the
ground that the premises let for residential purposes· are required by him bona
fide for occupation as-a residence for himself or for any me(I!.ber of bis family
dependent upon him, provided be has no other reasonably suitable residential
accommodation. Sub·s. (5) of s. 25B lays down that the Controller shall give to
the tenant leave to contest the application, if the affidavit filed by the tenant
"discloses such facts as would disentitle the landlord from obtaining on order for
recOvery of posstssion" of the premises on the ground specified in Cl. (e) of the
proviso to s. 14(1).
The respondent, a Hindu Undivided Family (HUF), filed a petition under
Cl. (e) of proviso to s. 14(1) through the constituted attorney of its karta for an
order for recovery of possession of the premises in question alleging that the
premises had initially been given to the .appellant on leave and licence, that the
landlord (the karta of the HUF) who had gone out of the country had since
settled down in Delhi, that the landlord bad called upon the appellant 'in May,
1974 to vacate the l'remises as be had no otbcr suitable accommodation and that
, .
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•
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PRECISION STEEL, V. PREM DEVA
499,
the landlord bona fide required the same for hiS personal'occ~pation. The appellant SOU;ght leave 'tO cont~~t the petitioll and filed an affidavit denying the allegatioi;i that it bad entered the premises initially as a licensee and.contending that
accbrding to cl. 6. of the lease agreement the premises Were let for residential as
well as comme'rcial pufpose, that the landlord ·had been 'residing in a house as
¥'
spa~ious as the demised premises and equa.lly spacious accommodation 1in an
idehtical unit located at the back side of the demised premises was available to
. hirh which had beeri let successively to three tenants during tho period 1970 to '
197,6, each· time ~:Hsing the rent, and further-that .the landlOrd owned spacious
acCommodation at. another place in Delhi. An affidavit in reply was filed on
be'half of the landlord slating that the landlord had no interest in the building in
·
vAiich he was residing, that the identical· unit located on the back side of the
~cm.ised premises had been let to a tenant upto 19_81 and that the accommodation
/
~ocated at anot~er place in Delhi and referred to by the appellant was only a
t'
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garage block.
·
The Controller decided all questions of fact t'aking the affidavits as unquestioned evidenc~ and· refu'sed to grant · teave to the appellant to contest thC
petition and passed an order of ev'iction in favour of the landlord. The revision
, .
petition filed by the appellant against· the order was rejected by the High
Court.
·
·
' The question before the court was : What is the jurisdiction of the Controller un~er Sub-s. (5) of.s.25B while dealing with. an affidavit of the tenant seeICing leave to contest an application fof eviction filed by a landlord under ·cl. (e) of
the proviso to s. 14(1) · 1
·
Allowing the appeal,
HELD : (By the Full Court)
Leave to contest the petition for evictiOn under ct: (e) of proviso to S.14(1)
must be granted to the appellant under sub s. (5)'of sub-s. 25B 1 of the Delhi Rent
. '
I
Control Act, J958.
~ ( pttr Desa

## Text

_Characters 0–39,949 of 110,999. This is a partial read: ask again with offset=39949 for what follows._

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498
PRECISION STEEL AND El~GINEERING
WORKS AND ANOTEER
v.
.PREM DEVA NIRANJAN DEVA TAYAL
October 7, 1982
[D.A. DBSAI, A.P. SEN AND BAHARUL ISLAM, JJ.]
Delhi Rent Conlfol :Act, 1958-Sub-s. (5) of S. 258 read with Clouse ( e) of
. . f' -
proviso to S. 14( !)-Jurisdiction of Controller-Grant of leave to tenant to contest
.
landlord's application for eviction-Nature and scope of.
Delhi Rent Control Act, 1958-Sub-S. (I) of S. 31-Not attracted at the
stage of considering affidavit of tenant seeking leave to contest under sub-s. (5) of
s.2so:
'
Code of CM/ Procedure, 1908-0. XXXV!l, rule 3(5) and De/ht Rent Control Act, 1958-S. 25B(5J~Jurisdiction to grant /eaVe-Comparison of.,
Re1tt restriction legislation-Approach to interpretation of.
Laws of procedure-Approach to interprela!ion of.
A landlord cab make an application for recovery of possession under
Clause (e) of the proviso to s. 14(1) of the Delhi Rent Control Act, 1958, on the
ground that the premises let for residential purposes· are required by him bona
fide for occupation as-a residence for himself or for any me(I!.ber of bis family
dependent upon him, provided be has no other reasonably suitable residential
accommodation. Sub·s. (5) of s. 25B lays down that the Controller shall give to
the tenant leave to contest the application, if the affidavit filed by the tenant
"discloses such facts as would disentitle the landlord from obtaining on order for
recOvery of posstssion" of the premises on the ground specified in Cl. (e) of the
proviso to s. 14(1).
The respondent, a Hindu Undivided Family (HUF), filed a petition under
Cl. (e) of proviso to s. 14(1) through the constituted attorney of its karta for an
order for recovery of possession of the premises in question alleging that the
premises had initially been given to the .appellant on leave and licence, that the
landlord (the karta of the HUF) who had gone out of the country had since
settled down in Delhi, that the landlord bad called upon the appellant 'in May,
1974 to vacate the l'remises as be had no otbcr suitable accommodation and that
, .
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•
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PRECISION STEEL, V. PREM DEVA
499,
the landlord bona fide required the same for hiS personal'occ~pation. The appellant SOU;ght leave 'tO cont~~t the petitioll and filed an affidavit denying the allegatioi;i that it bad entered the premises initially as a licensee and.contending that
accbrding to cl. 6. of the lease agreement the premises Were let for residential as
well as comme'rcial pufpose, that the landlord ·had been 'residing in a house as
¥'
spa~ious as the demised premises and equa.lly spacious accommodation 1in an
idehtical unit located at the back side of the demised premises was available to
. hirh which had beeri let successively to three tenants during tho period 1970 to '
197,6, each· time ~:Hsing the rent, and further-that .the landlOrd owned spacious
acCommodation at. another place in Delhi. An affidavit in reply was filed on
be'half of the landlord slating that the landlord had no interest in the building in
·
vAiich he was residing, that the identical· unit located on the back side of the
~cm.ised premises had been let to a tenant upto 19_81 and that the accommodation
/
~ocated at anot~er place in Delhi and referred to by the appellant was only a
t'
. ;
garage block.
·
The Controller decided all questions of fact t'aking the affidavits as unquestioned evidenc~ and· refu'sed to grant · teave to the appellant to contest thC
petition and passed an order of ev'iction in favour of the landlord. The revision
, .
petition filed by the appellant against· the order was rejected by the High
Court.
·
·
' The question before the court was : What is the jurisdiction of the Controller un~er Sub-s. (5) of.s.25B while dealing with. an affidavit of the tenant seeICing leave to contest an application fof eviction filed by a landlord under ·cl. (e) of
the proviso to s. 14(1) · 1
·
Allowing the appeal,
HELD : (By the Full Court)
Leave to contest the petition for evictiOn under ct: (e) of proviso to S.14(1)
must be granted to the appellant under sub s. (5)'of sub-s. 25B 1 of the Delhi Rent
. '
I
Control Act, J958.
~ ( pttr Desai a_nd Baharul Islam, JJ.) .
~.
1. (a) While examining the question whether leave to defend ought or ough
not to be granted, the limited jurisdiction which the Controller enjoys is prescribed,
within well defined limits. ·The langtiage of sub·s·. (5) of s. 2.SB casts a statutory
duty on the Controller to give to the tenant leave to contest the application, the -
only pre-cc;>ndition for exercise of jurisdiction b~ing that the affi.davi~ ff!Cd by the
tenant discloses such facts as wOuld: diseiltitle the . landlord froni. obtaining an
·order (or the recovery of possession of the premises on the ground mentioned in
s. 14(1)(e). The legislature has used. the expression ''t.he Controller shall give
leave to the tenant to cqntest ·the applicaf.ion." When the 13.nguage of a statute
is plain the principle that legislature speaks ''its mind in the plainest' language has
to be given full effect. The legfslature bas used the plainest language na,mely
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•'facts,disclosttd in the affidavit of the tenant,. and av~ided th~ v,hraseolo~y of th,e
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SUPREME COURT REPORTS
( 1983] 1 S.C,ll.
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analogous provision in Order XXXVll, C.P.C., namely "substantial defence" and
"vexatious and frivolous defence". [513 F; 514 E; 513 G,· 514 B-D]
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(b) Undoubtedly, the rules of natural justice, apart ·from the adversary
system.we foUow Must permit the la~dlord to contest the affidavit file~ by the
tenant and he can do so by filing an' affidavit in reply. If the averments mad.e in
the affidavit of the tenant are controverted by the landlord, that fact may be
bom.e in mind but if the facts disclosed in 1the affidavit of the tenant are contested
by way of proof or disproof or producing evide~ in the form of oth~r affidayits
or documents that would not be permissible. The Controller has to confine him·
self to the affidavit filed by. the tenant under sub-s. (4) of s. 2;B and the reply', if
any and on perusing these, he has to pose to himself the only question : D6es
the affidavit disclose, not prove, facts a_s would disentit1e the landlord froin
obtaining an order for the recovery of possession on the grpund specified in
El: 14(l)(e) 1 On browsing through the affidavit of the tenant~ if there emerges
averment of facts wh~ch, on a trial, if belie~ed would non-suit the landlord, leave
ought to be granted. The Controller is not to record a fitlding on disputed
questions Of facts or his preference of onl! set of affidavits against other set of
affidavits as it is clear from the language of sub-s. (5) of s. 25B that be has to
confine himself to the affidavit filed by the tenant disclosing such facts as Would
prima facie and not on contest disentitle the landlord-from obtaining an order for
recovery of possession. It is wholly impermissible for the Controller to proceed
to examine the rival contentions on the basis of affidavits untested by cross-
, examinat4on and unproved documents. The regular trial required to be hC:ld by a
Court of Stnall Causes as contemplated by sub-s. (6) read with srib-s. (7) of s.25B
is not to be substituted by affidavits and counter.affidavits. The scheme of s. 258 ~
'does· not introduce· a· trial for arriving at the truth at the stage of proceeding contemplated by sub-s. (4) of s. 25B. It is immaterial that facts alleged and disclosed
are contr'6verted by the landlord because the stage of proof is yet to come. Plausibility of the defence raised and proof of the same are materially
di!fere~t from
each other and ·one cannot bring in the concept of proof at the stage when plausibility has to be shown. [524 B; 523 H; 524 A; 515 G-H; 514 A; 516 A-C;
517 E-G; 518 B; 516-E]
Santosh Kumar v. flhai Moo! Singh, [1958] S.C.R. 1211, rel!ed on.
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S. Kanjibhai & Ors. v. Mohanraj Rajendra Kumar. A.LR. 1970,_Gujarat 32
,.):
and Kishan Singh v. Mo~d. Shafi & Ors., A.LR. 1964 J & K 39; approved.
/
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(c) 'Section 14(1) starts with a non obstante clause whi~h would necessarily
imply that the Controller is precluded from passing an order for recovery of
possession in favour of the landlord unless the case is covered by any of the
clauses of the proviso. Upon a true construction of cl. (e) of the proviso t~
s. 14(1) it would appear that the burden is on th.e landlord to satisfy tbe Controller that the pren1ises are let for residential
purpos~. that possession is required by
him bona fide for occupation as residence for himself or for any member of his
family and that he has no other reasOnably soi.table residential accommodation. ·
This burden, the-landlord is required to discharge before the Controller gets
jurisdiction to make an order for eviction. On a combined reading of s. l4(1)(e)
and sub~ss. (1) and (4) of s. 25B, the legal positiOn that emerges is that on a proper application being made iq the prescrib~d manner which i.s requir~d to be
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PRECISION STEEL v. PREM DEVA
501
supported by an affidavit, unless the tenant obtains leave to defend as c~ntempla.'
ted by s"ub-ss. (4) and (5) of s. 25B, the tenant is deemyd to have adfnitted all tJ:ie
averrnents made in the petition filed by the landlord and the Controller "'oul.d act
on the admission of the tenant presuming every averment in the petition of the
landlord as uncha1lengable and truthful. This consequence itself is sufficient to
liberally approach the prayer for leave to' contest the petition.
[514 E-H; 515 D-E; 513 E]
(d) The underlying thrust of all rent restriction legislation is to chCck
profiteering by owners of property and to protect weaker sections. Their provisions are not to be so construed or interpreted as would make the protection conferred on the tenant illusory. [512 E'F; 510 E-F]
Bahadur Singh & Anr. v. Muni Sabrat Das & Anr., [1969]' 2 S.C.R. 432,
Kaushalya Devi & Ors. v. Shri K.L. Bansal, [1969] 2 S.C.R. 1048, Bega Begum &
Ors. v. Abdul Ahad Khan & Ors., [1979] 2 S.C.R. I and Kewal Singh v. Lajwanli,
[1980] !"S.C.R. 854 referred to.
(e) A code of procedure is something designed to facilitate justice and
further its ends. Our lawS of procedure are grounded on a principle of .natural
justice which requires that men should not be condemned unheard. Too technical
a construction that leaves no room for reasonable elasticity of interpretation
should be guarded against lest the very means deSigned .for the rurtheranCe or
justice be used ·to frustrate it. The procedure prescribed in Chap. IIIA is harsh
~ and weighted
agai~st the tenint. The Contro Iler is the final arbiter of facts.
Once leave is refused no appeal is provided against the order refusing leave. No
one should be in doubt about the narrow \.onstricted jurisdiction of the High
Court While interfering with 'findings of facts in exercise of ieVisional jurisdiction.
Wisdom, sagacity and the consequence of refUsal to grant leave coupled With
limited scope of i_nquiry being confirled to facts disclosed in the affidavit of the
tenant should guide the approach of the Controller.
[527 B-C; 513 D; S27 _F-G-H; 528 A]
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Sangram Singh v. Election Tribunal, Kotah & Anr., [1955] 2 S.C.R. I and
Maneka Gandhi v. Union of India, [1978} 2 S.C.R. 621\ referred to.
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In the instaOt case, the Controller had overJooked disclosure of important
\. facts which put the bonafides of the landlord in issue and necessitated gra'.nJ of
leave to the appellant: The leave and ~licence ag-reement had been renewed in
1972'and 1973 though the landlord had been in Delhi since 1972; the landlord
had admitted that the identical unit at the back of the demisod Premises which
.bad fallen vacant in 1973 had been Jet out to another tenant.; no actiOn had been
taken till 1979 on the notice seeking- eviction served in 1974; every tirne a·fresh
letting had been indulged into, it had been done after raising the rent; and the
landlord who had sought possession 'for himself and was admittedly in Delhi had
not stated a single word on oatQ. about his requirements and as to in what right
be was occupying the premises ·in which he was staying. [529 B-H; 530 A·E]
The High Court had adopted an incorrect approach as to how the matter ·
had to be ex:imine~ at the stage of $,rantipg or refusing to grant leave under s~~~
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SUPREME COURT REPORTS
(1983) 1 S.C.R.
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s. (5) of s. 25B. It had failed to ascertain as to when the licence bad been terminated and a contract Or lease entered into and what were the terms of the lease as
alleged by the landlord and whether the rules of the local authority pern1ttted use
of the premises for non~residential purposes. The High Court had dismissed the
'Contention that the landlord had othet suitable accommodation by an observation
that the Controller had rightly come to the con:Iusion that the premises in which
the landlord was residing belonged not to' the landlord but to his brother. This
B
approach was unjustified because the question was not whether the landlord was
the owner of the premises occupied by him but the substantial question was
in what right he was occupying it for a period extending. over 7 years and bow
it had beeomo imperative for him to"vacate the same. [5.30 F-H; 531 A·H)
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2. The contention that the non obstante clause in sub-s. (7) of s. 25B excludes the application of sub-s. (2) of s. 37 but not. of s\Jb·s.(1) of s. 37 and therefore it was obligatory for fbe Controller to .not only hear the landlord but examine evidence at the stage of granting or refusing to grant leave to contest' cannot
'be accepted. Sub-s. (2) of s. 37 provides· that subject to any rules that may be made
under the-Act, the Controller shalJ, while holding an inquiry in any proceedings
before him, follow as fai' as may be, the practice and procedure of a "Court of
Small Causes. including the recording of eVidence. The very fact that sub-s. (7) ·
of s. 25B provides that while holdins an inquiry in a proceeding to· which Chap.
IIIA appiies, the Cbniroller has to ,follow the practice and procedure of a- Court
of Small Causes including the recording of evidence i~di~ates the legislative
intention of treating Chap. IIIA and especially s. 25B as a self-contained code
and this conclusion·. is buttressed by· the provision in sub-s. (1) of s. 25B which ·
provictes that every application by· landlord for recovery of possession of any
premises on the ground speci{ied in cl. ,(e) of the proviso to. s. 14(]) shaU be
dealt with in accordance with the procedure specified in s. 25B. That is why
sub-s. (7) of s. 25B .opens with a non obstante clause. Any other section, including
sub-s. (l) .of s. 37 p.rescribing procedure for disposal of an application covered
by sub·s. (I) of s. 25B is therefore excluded . .The exclusion of s. 37(1) also
necessarily follows. from the provision contained in sub-s. (10) of s. 25B which
makes it .clear' that the procedure prescribed for hoiding a~ inquiry consequent
upon the granting of -leave to contest shal-1 by the same as required to be followed ·
by the Controller for disposal of applications.
Sub~s. (10) of s. 25B operates to
· 'bring ins. 37(1) after leave tO contest is granted. If sub-s. (1) of s. 37 were to
govern all proceedings including the application for leave to contest the proceedings, both sub-s. (7) and sub-s. (IO) of s. 25B w6uld be rendered redundant.
[525 C;
0
524 E-F; 526 A·B; 525 A-B; 525 E-F-H)
3. Neither the argumer\t that the Scope arid ambit of sub~s. (5). of s. 25B
of the Act in it~ comparison with 0. XXXVII, r. 3 sub-r. (5) C.P.C. is no more
res integra in view of the decision in Busching Schmitz ( P) Ltd. v. P.T. Mengha'ni
& Anr. nor the interpretation of t~e C1bservations therein to the effect that the
scope for granting leave undef sub-s. (5) of s. 25B is narrower than the one
under 0. XXXVII, r. 3-Can be accepted. It is not clear from the decision whether
the Court took Dote of the whole of the re-structured r. 3 or it was keeping in
veiw the unamended .r. 3 of 0. XXXVII. The provisoes to O. XXXVII, r. 3 make
it clear that leave to defend shall not be refused unless· the Court is satisfied that
the facts disclosed by the defendant do not indicate thai he has ·a substantial
(l~fen~ t<.> rajse qr t~~t che defence intended tp be put up by the defendant is
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PRECISION STEEL v. PREM DEVA
503
frivolous or vexatious.
On the other hand. sub·s. (5) of s. 25B makes it
obligatory upcn 1hc Controller, by u~e of mandatory Ja~guage, to give leave
· if the affidavit filed by the tenant discloses such facts as would· diSentitle the
·landlord from Qbtaining an order for recOvery of posseision. Under 0. XXXVII,
r. 3,.defenCe has to be sllbstantial before leave can be obtained. fyferC disclosure
of facts is the ,sine qua non under sub s. (5) of s. 25B. Further, the Court can
grant
1conditional leave or leave limited to the issue under 0. XXXVII, r. 3; no·
such power is conferred on the Controller under sub·s. (5) of s. 25B. Assuming
that O. XXXVIJ, r. 3 (5) confers wider discretion on the Court, that, by mere
comparison, cannot cut down 9r narrow or limit the power coupled with the
duty conferred On the Contro'Uer under sub s. (5) of s. 2SB.
, [519 D-H; 520 A·G; 519 A-B; 521 Fl
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...
.
Busching Schmitz (P) Ltd. v. P.T. Menghani & Anr., [1977] 3 S.C.R.
312;. B.N .. Mutta & Anr: y. T.K. Nandi, [1979] i S.C.R. 409; Charan Dass
DUffgal v. Brahma Nand (C.A. No. 179/82 decided
OD 11-1-1982) and Om
Prakash S~lu}" v. Smt. Saraswati Devi (C.A. No. 527/82.~ecided OD 8-2-1982),
referred to. ·
Sa~~a.n. Singh & Anr; v. Kasturilal, [1971] 2 S.C.R. 421, distinguished.
Mohan/al v Tirath Ram Chopra. & Anr. 22 (1982) Delhi Law Times !,
disapproved.
(per Sen, J., disSenting)
1. (a) ·There is a definite public purpose behind ·enactment of Chap.
IIIA and sub-s. (5) of s. 25B musl be construed in a Sense whiCh. would carry
out that purpose. I s.' 1"4A was eii~Cted to ensure that all government servants
to whom residen.tial accommodation had been a Hotted by . the Government
vacated such accommodation if they had any, house of their oWn in the Union
Territory or· Delhi 1 and the section conferred upon them the right" to recover
immediate possession of their own houses. Further, experience in the past had
shown. thit landlords who were in bpnafide requirement of thCir accommodation( ·
for residential purpose under cl. (e) of the proviso to sub-s. (1) of s. 14 were
being pUt tO great hardship due to the dilatory procedure of the suit. The
object behind enactment of Chai). IllA was that these two classes of landlords
should not be at the mercy of law's delays but there s,hould be a quick and
~>-...i._~, expeditious re_medy ava.ilable1to them agai!lst their" own tenants. The provisions
'fri Chap. IIJA confer a real, effective and immediate right to obtain possession
by confining the trial only to such 'cases where the tenant bas such a defence ·as
1 would disentitle the landlord from obtaining an order fof eviction under s:t4(l)(e)
or under. s. 14A. Chap. Ill A seeks _to stiike a balance ·betwee,n the competing
needs of a . 1andlord and a tenant and has therefore provided that the tenant·
shall have a right to apply" for leave to contest. The words ''if the affidavit
filed by the tenant discloses such f<icts" usCd in· sub-s.· (5) of s. 25B must therefore
take their colou·r from the context 'in which they appear .
. [533 A-D-E-F-H; 534 A; 536 D; 535 C-D;. 535 A-BJ
Sarwan Sinch'. v. Kasturi Lal, [197'1] 2 s'.c.R. 421, referred to.
(b) The Controller obviously ."cannot cbme 'to a deci~ion as to whether
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1or not loavo to contest should be granted under sub•s. (S) of s. 25B without
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SUPll.BME cOURT ll.EPOP.Ts
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[1983) l S.C.ll.,
affording the parties an opportunity of hearing. The Controller must conform
to the rules of natural justice. Once it is conceded that the landlord has a right
to be heard, the . Controller is bound to give him. an opportunity to refute the•
facts alleged by the tenant in ·his affidavit filed under sub-s. (4) of sc25B. The
Controller nlust app(y his mind not only to the averments made by the landlord
in his applicaiion for evicfion, but also to the facts alleged by the tenant in bis
affidavit for leave to contest as well as the facts disclosed by the landlord in his
affidavit in rejoinder, besides the othei- maleriat on record i.e., the documents
Hied by the parties in support of their-respective claims, in order to come to a
conclusion whether the requirements of sub-s. (l) Ors. _25B are fulfilled. To ask
Controller to confine himself only to the affidavit filed by the tenant is to ask.
him not to apply bis mind in a ·judicial manner even if be feelS that the
justice of the case so demands. The Controller must endeavour to resolve.the'
· competing claims of landlord and tenant to the grant or refusal of !Cave-by
finding a solution which is just and fair to both the parties. It is not that the
proceedings initiated QD an application by the landlord~under s. 14(1) (e), or
under s. 14A must undergo trial at two stages. Under sub-s. (5) of s. 25B. the
Controller ·must prima facie be satisfied that· the facts a1leged by the tenant are
such as would disentitle the landlord from obtaining an order for recovery of
possession. The word 'disentitle' is a strong word, and the Controller must be
satisfied that the tenant has such a defence as wOuld defeat the claim of the
t'andlord under s. 14 (1) (e) or under s. 14A. It cannot be that the Controller
would set down the application for trial merely on perusal of the affidavit filed
by the tenant without applying bis mind to the pleadings of the parties and the
material on record.
If he finds that the pleadings are such as would entail a
trial, then the Controller must grant the tenant leave to contest as the words.
''shall grant to the tenant leave to contest" in sub-s. (5) of s. 25B make the
grant of leave obligatory. [536 G; 537 ll-H; 538 A-Bl
2. The scope of sub-s. (5) of s. 25B is restricted and the test of "triable
issues" under 0. XXXVII. r. 3 (5), C.P.C. is not applicable, as the language of
the two provisions ~s different. The use of the word 'such' in sub~s. (S), of
s. 25B implies that the Controller has the power to limit the grant of leave to a
· particular ground.
A tenant may take all kinds of pleas in defence. The
· whole object of sub-s. (5) of s: 25B was to prevent the taking of frivolous plev
by tenants to protract the trial. Where the tenant seeks leave 'to contest th~
applicaiion for eviction ·under s. 14(1) (e), or "Qnder s. 14A, be must file an affi~
davit under :ub-s. (4) of s. 25B raising his defence which must l;>e clear, specific
and~positive. The defence must also be ·bona fide and if true, must result iii the
dismissal of landlord's. application. Defences of negative char_acter which are
intended to put the landlord to proof or are vague, or are raised ma/a.fide only
to gain time and protract the proceedings, are not of the kind which will
entitle the tenant to the grant of leave. The Controller cannot set down the
ff .
application for bearing without n1aking an order in terms of sub-s. (5) of s. 25B •.
·The tdal must be confined only to such grounds as would disentitle the land·.
lord to any relief. [538 C-F]
'
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Pil.ECISION STE~L v. PREM DEVA (Desai, 1.)
505
CIVIL APPELLATE
JURISDICTION : Civil
Appeal No. 209
. of 1981.
Appeal by special leave from the judgment and order dated the
8th December, 1980 of the Delhi High Court in Civil Revision
No. 317 of 1980.
'
. Dr. Y.S. Chitale, K:K. Mancha.nda and C.N. Murty for the
,
Appellant.
\
D.V. Patel U.R. La/it, Pramod D"yal; Rajesh Mitra and
S.K. Gupta for the Respondent.·
·The following Judgments were delivered
'
DESAI, J. A provision conferring power enacted to mollify
slogans chanting public opinion of speedy justice, if not wisely·
interpreted. may not only prove counter-productive but disastrous.·
And that is the only raison d'etre for this judgment because in the
course of hearing at the stage of granting special leave Mr. D.V.
Patel, leamed counsel for the respondent straightway conceded that
.
'
this is such a case in whic1l-1eave to defend could ·never have been
refused. Unfortunately, however, not a 'day passes without the
routine refusal of leave, tackled as a run of mill case by the High
Court in revision with one won! judgment 'rejected', has much
to our discomfiture impelled u; write to this short judgment.
'First the brief narration of facts .. Respondent M/s. Piem Deva
Niranjan Dava Tayal (Hindu Undivided Family) through Prem
Deva Tayal, constituteil attorney of Niranjan Deva Tayal (landlord)
moved the C,ontroller having jurisdiction by a petition under section 14 (1) proviso (e) [for short 's. 14 (e)'] read with section 25B of
the Delhi. Rerlt Control Act, 19 58 ('Act' for short), for an order
for recovery of possession of the premises being, front portion of
premises bearing No. B,44, Greater Kailash Part I, New Delhi, 'on
the ground that the premises were let out for residential purpose
and are now required bona fide by the landlord for occupation as
residence for himself and the members of his family dependent on
him and that
the landlord has no
other reasonably suitable
accommodation. To this petition he impleaded M/s. Precision Steel
& Engineering Works (tenant), a firm and Shri B.K. Beriwala cons-
. titutcd attorney of the firm.
Landlord alleged in his petition th;it
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SiJl>iUJM~ COURT REPORTS
[ 1983 I 1 S.C,R.
the premises in question were first given on leave and license and
subsequently relationship of lessor and lessee was established and
that the tenant is in possession since Octpher I, 1971. Landlord
further alleged that he now requires the premises for himself and the
members of his family consisting of himself, his wife and two school
going children. He admitted that he has been; employed in India
~ince 1965 .but was posted at Bombay in 1970 arid returned to Delhi
in 1972. He went to Saudi Arabia and has now returned to India.
It was alleged that on May I, 1974, he called upon the tenant to
vacate the premises but the ro;quest has fallen on deaf ears. It was
specifically alleged that as tl:ie landlord has now taken up a job and
has settled down'in Delhi and that he has no other suitable accommodation, and accordingly he bonafide requires possession of the
demised premises for his personal' occupation. It. was allege(! that
M/s. Prem Deva Niranjan Deva Tayal (HUF) is the owner of the
1
suit premises and Shri Niranjan Deva Tayal is the Karla of the ·
HUF and second notice dated June 22, 1979 was given under
instructions by the constituted attorney Prem Deva Tayal.
Even
though the landlord who sought possession of tire premises for his
personal requirment was in Delhi at the relevant time, i.e. in 1979,
the petitioh' was also filed through the constituted attorney and
Niranjan Deva Tayal who seeks p°Ossession for his use being in
Delhi and available is conspicuous by his absence throughout the
pNceedings.
On the petition being lodged the Controller directed summons·
to be ser.ved in the prescribed form. On service of the summons the
tenant being a firm M/s. Precision Steel & Engineering Works, and
its constituted attorney Shri B.K. Beriwala appeared and filed an
affidavii seeking leave to contest eviction petition. Io the affidavit
teriant contended that respondent I, i.e. M/s Precision Steer &
Engineering Works is the tenant and respondent 2 does not claim
any interest in the premises in question in his personal capacity and
ought not to have been impleade\! as ·a respondent. While denying
that there is any undivided family styled as Prem Deva· Niranjao
Deva Tay al it was contended that. the petitioner is not entitled to
file a petition ,under section 14 (1) (e) because the purpose'o( letting
· was not residential alone but combined purpose of residence-cumbusiness. It was denied that the tenant entered the premises as a
licensee and subsequently the conrract of lease was entered into and
it was submitted that the tenant entered the premises as tenant
•
. PRECISION STEEL· v. PREM DEVA (Desai, J.)
507
effective from September 13, 1971, and .the lease was for residentialcum-commercial purpose. A specific agreement was pleaded that
the tenant which is a partnership was entitled to use the premises
for the residence of the director and/or partner as also for. the office
purpose. Reliance was placed on clause 6 of the License agreement,
which was really and substantially according to the tenant a contract
of lease. Jt was also alleged that since the inception of the tenancy
the preJ!lises have been used both. for residence and business purposes
· to the knowledge of liindlo,rd and local authorities and no objection ·
has been raised in this behalf. It was emphatically denied that
the premises were required by the landlord for his .personal use as '
well as for .the use of the members of his family and it was also
denied· that the landlord has not in hi.s possession reasonably suitable
aecommodation in Delhi. It was positively averred that Niranjan
Deva Tay al who claims to be the owner of the premises· and for~
·whose pers~nal requirement the eviction petition, has been filed
· has
been residing at · 32, Anand Lok,
New Delhi and that
· is the address of the landlord set out in cause title or' the petition
filed by the attorney.
Dimension of the premises in possession of
the landlord was gi~en out as.2-1/2 storey building built on a plot
of 1000 sq. yards. It was averred that the building now in possession of the lail~lord is divided into four blocks or units, each block
consisting of four bed rooms, three bath rooms, one kitch~n, one
·living room and one ctrawing-cuoi-dinfog room. It was in terms
stated that the whole of the house is in occupation and possession of
petitioner landlord and he has been residing all along in the house
much.prior to the beginning of tenancy and.·he is in possession' of'
the· same. It was further averred that the petitioner has concealed
the fact that petitioner is the owner of another building at ·52 Anand
Lok, New Delhi, ~hich building is equally big. One other a~erment
of which notice may be taken is that the petitioner has been
managing both the buildings and whenever blocks fair vacant he lets
· ·~. them out at higher rent. It was· specifically stated· that front portion
of the building at B-44, Greater Kailash Part I has the same accom-
) modation as the building which the landlord has in his possession
'at present. In order to point out' that the petitioner landlord when
he comes inio possessio11 of premises vacated by tenants lets out the
:same at higher rent thereby .contravening law and obtains unlawful
enrichment, It was averred that the premises of identical size and
nature situated at the back of the demised' pr~mises were taken on
rent ,bY M/s. Kirloskar Company during the period .1970-73 and when
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• StJPkEME COURT REPORTS
[ 1983 I t s,c.k.
vacated by the tenant the same was let out to Food Corporation of
India from 1974·1975 and after getting the same. vacated the same
was let'oqt in 1976 to Yash Mahajan and on each such opportunity
rent was enhanced. It was accordingly_ alleged that the petition is
malafide and the claim of bona fide requirement ii' utterly un·
tenable.
.
A counter-affidavit was filed on behalf of the landlord to the ·
affidavit seeking leave to defend reiterating what was averred in \he
main petition, namely, that Prem Deva Niranjan De~a Tay al (HUF)
is the owner of the property and · that Niranjan Deva Tayal
is the Karla of the same. It was stated that the landlord bona fide
required the . premises for his own 11se. With reference to 'the
building situated at 32, Anand Lok, New Delhi, it was stated that
Niranjan peva Tayal has no interest in the property and that the
petitioner Niranjan Deva Tayal has no other suitable residential
accommodation in Delhi. It was claimed that the property d{ 32,
Anand Lok, New Delhi, belongs to one K.D. Tayal. .The dimension
of the house was also disputed. With reference to the premises at
52, Anand Lok, . it
was
stated that
the building is
not
being used as residential premises but is only a garage block. It
was further averred that Niranjan Deva Tayal was serving in Saudi
Arabia and, therefore, the premises were given on leave and license
but now that the petitioner has returned to India and has perma·
nently settled down he requires the premises for his own use. A
further averment was made to the effect that the block at the back
of the demised premises is at present in occupation of M/s. Coronation Spinning· Co., Dadra, and the ·occupant is entitled to occupy the
premises till 1981.
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Frankly, in appeal by special leave under Article 136 it was not
necessary to set out the pleadings in detail.. However, as the question before this Court is whether leave to contest the petition ought
not to be granted and that is clearly relatable and wholly dependent
upon the averments in the pleadings and the disputed questions· of
facts arising therefrom and that is the apology for detailed narration of rival contentions.
And now to law. Section 14 (I) (e) of the Act reads as
under:
'
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PRBCISIO~ STEEL' v. PREM i>BV~ (Desai, J.).
509
"14 (1) )'lotwithstanding anything to •the contrary 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 land'
lord against a tenant ;
Provided that the Controller may, on an application
made to him in the prescribed· manner, make an order
for the recovery of possession of the premises on one
or ;,ore ·of the following grounds only, namely :-..
(e) that the . premises let for residential · purposes are
required bona' fide by the landlord for occupation .as
· .a residence for himself or for any member of his family
dependent on him, if·he is the owner therecf, or for
any person for whose benefit the premises are held
and that the landlord or such person. llas no other
reasonably suitable residential accommodation;
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Explanation : For the purposes of this Clause, "premises let for residential purposes" include any premises
which having been let for use as a residence are, without
the consent of the landlord, used incidentally for commero
cial or other purposes;"
E'
Section 25B which forms part of Chapter IIIA was introduced in the
Act by Amending Act 18 of 1976 with effect from December 1, 1975.
'
The fasciculus of sections is headed 'Summary Trial of Certain
Applications'. 'Section 25B (!), (ii) and (5) are, material for the
present purpose. They read as under :
"25B (I)
'
Every application by a l~ndlord for the' recovery of .
possesion of any premises on the ground specified in.
clause (e) of the proviso to sub-sec. (I) of section 14
or under section l 4A, shall be dealt with in accordance with the procedure specified in this section.
(4) The tenant on whom the summons is duly served
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(whether in the ordinary way or by registered' post) in
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the form specified in the Third Schedule shall not
contest the prayer for evictiO!l from the premises unless
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SUPREME COURT REPORTS
[1983) l s.C.R.
he files an affidavit stati0g the ·grounds on which he
seeks to
contest the application for eviction. and
obtains leave from controller as hereinafter provided;
and in defa~lt of his appearance in pursuance of the
summons or his obtaining such leave, the statement .
made by the landlord· in the application for eviction
shall be deemed to be admitted by the tenant and the
applicant shall be entitled to an otder for eviction on
the ground aforesaid.
(5) The Controller shall give to· the tenant leave to contest
the application if the affidavit filed by the tenant discloses such facts as would disentitle the landlord from
obtaining an order for the recovery of possession of
the premises on the ground specified in clause (e) of
the proviso to sub-section (1) of section 14, or under
sec. 14A."
• The increased tempo of industrialisation since the independence
resulted in mass migration of .population from rural to urban areas.
This urbanisation process resulted in phenomenal demand for housilig accommo~ation. Harsh economic law of demand and supply
'operated with full vigour to the disadvantage of the under privileged.
To checkmate the profiteering by the owners of property and to
protect the weaker sections,' most of the States in our country enacted legislation for the protection of tenants of premises situated in
urban and semi-urban areas.· These legislations have been enacted
with the avowed object of putting a fetter on the unrestricted right
of re-entry enjoyed by the ,landlords with a view to protecting the
tenants assuring security of tenure. This avowed object and purpose
for enacting legislation must always inform and guide the interpre-
'·
'
tative process 'Of such socially oriented beneficial legislation. But
the language of the statute·. bas to be kept in view to determine the
width and ambit· of protection. Normally in all such statutes a
provision is inserted· pre.scribing 'enabling provision under which
landlord can recover possession and thereby restricted the unfettered
right of re-entry. One such provision normally to be found in all
such statutes is the one which enables a landlord to recover possession if he bona fide requires the same. for occupation by himself or
for the use of the members of the family dependent .on him. If the
landlord seeks possession bona fide for his personal requirement, Ii~
' '
._/
PREOISION STEEL v. PREM DEVA (Desai, J.)
Sil
must co1i1mence.the action by filirg a petition and the tenant' would.
be entitled to appear and defend the action. While defending the
action in an adversary system the tenant would file his written statement raising contentions which ·in terms would focus the attention
of the court on questions of facts in dispute on .the basis of which
issues on which parties are at variance would be framed.
Both the
'parties would lead evidence· and ultimately on evaluation of evi4ence
the court/Controller would determine the issues on the principle of
preponderance of probability and answer the issues one way ·or the
'other determining the fate of the petition.
That was the position under the Act. On the introduction of
Chapter IHA a notable departure has been made in the Act with
regard to the procedure for trial of actions brought · under section
· 14A and 14(l)(e). ·When a petition is brought before the Controller
under section l 4(l)(e) a summorts Ms tO be issued to tlie tenant
and when the sum.mans is served the tenant cannot straightway
proceed to contest the petition for evi«ti\lll from the premises but
either he must surrender possession or seek leave tQ contest the peti"
tion. While seeking leave be must file an affidavit setting out the
grounds on which he se~ks to contest the application for eviction.
'
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This is the Scheme of s~ction 25B(l) and ( 4). Then comes section
25B(5) which provides that the Controller is under a statutory dutynote the expression "shall give leave to the tenant to contest the
application"-'-to grant leave if the ''\ffidavit filed by the tenant dis; ·
closes such facts as would disentitle the landlord from obtaining an
order for the recovery of possession' of the premises on the ground
mentioned in section 14(l)(e), i.e. bona fide requ'irement for his personal use or the use of the members of his family.
Let us recall the procedure for obtaining a ·decree'or order for·
eviction agai.nst. a tenant entitled to protection of Rent Act other
. than Delhi .Rent Act. What would the court expect the lalidford to
prove before he seeks to recover possession from the tenant on the '
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ground that he bo.na fide requires possession· for his.