CENTRAL BANK OF INDIAversusN.R.C. LIMITED

                       [2014] 3 S.C.R. 604


A                   CENTRAL BANK OF INDIA
                                 V.
                        N.R.C. LIMITED
               (Contempt Petition No. 147 of 2014)
                                IN
B                    SLP(C) 24874 of 2013
                         MARCH 05, 2014
         [H.L. GOKHALE AND KURIAN JOSEPH, JJ.]

C       Contempt jurisdiction: Eviction order - Time granted to
  tenant to vacate the premises subject to filing of usual
  undertaking of not transferring interest to third party and
  payment of mesne profit and vacation of property peacefully
  on the stipulated date - Undertaking not filed - Contempt
o petition - Held: A tenant or an occupant cannot be permitted
  to remain in tenanted premises of the landlord without paying
  the rent, or the occupation charges, which is what the
  respondent attempted to do - The petitioner-landlord would be
  entitled to take back the possession of the premises with
E respect to which the order of eviction has been passed, and
  same is permitted by taking the help of police if required -
  Contempt petition allowed.

       Public Premises (Eviction of Unauthorized Occupants)
  Act, 1971: Eviction proceedings under the Public Premises
F Act against Public Limited Company having paid up share
  capital of Rs. One crore - Maharashtra Rent Control Act, 1999
  - Applicability of - Held: In the instant case, notice to evict
  issued on 26. 6. 2007 i.e. much after the Act of 1999 came into
  force on 31.3.2000 - The 1999 Act clearly lays down that it
G shall not apply to Public Ltd. Companies having a paid up
  share capital of Rs. One crores or more - No fault with the
  action of the landlord taken under the Public Premises Act -
  Maharashtra Rent Control Act, 1999.

H                               604
    CENTRAL BANK OF IN.DIA v. N.R.C. LIMITED             605


     Aggrieved with the eviction order, the respondent          A
filed special leave petition before the Supreme Court
which was dismissed on 19th August, 2013. However,
considering the number of employees who were
engaged in their registered office situated at that place,
they were granted time till the end of December, 2014 to        B
vacate the premises, subject to filing of the usual
undertaking stating that it would not create any third
party rights and would pay all the mesne profits in the
meanwhile, and would peacefully vacate the premises
concerned at the end of December, 2014. However, the            C
undertaking was not filed, and the mesne profits as
required was also not paid. Subsequently one more I.A.
was filed by the respondent to be relieved of this
undertaking. The said I.A. was not pressed, and the same
came to be dismissed. In the instant contempt petition,
the grievance of the petitioner was that the respondent
                                                                0
has not complied with the order dated 19th August, 2013
and, therefore, an action be taken against the.m for
committing contempt of the said order.

    Allowing the contempt petition, the Court                   E
     HELD: 1. The notice to evict was issued on 26th
June 2007 much after the Maharashtra Rent Control Act
came into force on 31.3.2000. This Act clearly lays down
that it shall not apply to Public Ltd. Companies having a
                                                                F
paid up share capital of Rs. One crores or more. There is
no dispute that the respondent is a company having a
paid up share capital of more than rupees one crore. That
being so, the protective umbrella of the State Rent Control
~ct which was available to the respondent would not be          G
available to it beyond 31.3.2000. That being so, the
provisions of Public Premises Act would clearly apply to
these premise on or after 31.3.2000 for the purposes of
eviction of unauthorised occupants and therefore, the
action initiated by the petitioner could not be faulted with.
                                                                H
    606      SUPREME COURT REPORTS             [2014] 3 S.C.R.


A [para 7] [611-B-C, F-H]

       2. The company's affairs were before the BIFR, and
  it also had correspondence with the trade union
  representing the employees, but the employees union
  was not ready to help in any manner. These were different
8
  aspects, the financial difficulties of the respondent were
  brought to the notice of this Court by filing the I.A. which
  was not pressed, and that being so, the Issue cannot be
  allowed to be re-agitated. A tenant or an occupant cannot
  be permitted to be on the premises of the landlord
C without paying the rent, or the occupation charges,
  which is what the respondent is attempting to do. The
  petitioner will be entitled to take back the possession of
  the concerned premises with respect to which the order
  of eviction has been passed, and same Is permitted by
D taking the help of police If required. [paras 8, 9) (612-A-E]

       Ram Pyari (Smt.) & Ors. vs. Jagdish Lal 1992 (1) SCC
  157: 1991 (3) Suppl. SCR 117; Sanfanu Chaudhuri vs. Subir
  Ghosh 2007 (10) SCC 253: 2007 (8) SCR 482 ; Sushi/
E Kumar vs. Gobind Ram 1990 (1) SCC 193: 1989 (2) Suppl.
  SCR 149; Jagmiftar Sain Bhagat vs. Director, Health
  Services, Haryana 2013 (10) SCC 136; Ashoka Marketing
  Ltd. & Anr. vs. Punjab National Bank & Ors. 1990 (4) SCC
  406. : 1990 (3) SCR 649; Banatwala and Company vs. Life
F Insurance Corporation of India & Anr. 2011 (13) SCC 446:
  2011 (14) SCR 533; Rashtriya Mill Mazdoor Sangh, Nagpur
  vs. The Model Mills, Nagpur and Anr. AIR 1984 S.C. 1813:
  1985 SCR 751; Mis Jain Ink Manufacturing Company vs. Life
  Insurance Corporation of India & Anr. 1980 (4) SCC 435:
G 1981 (1) SCR 498 - referred to.
                        Case Law Reference:
          1991 (3) Suppl. SCR 117    referred to   Para 3
          2007 (8) SCR 482           referred to Para 3
H
    CENTRAL BANK OF INDIA v. N.R.C. LIMITED                    607

     1989 (2) Suppl. SCR 149            referred to   Para 4              A
     2013 (10) sec 136                  referred to   Para 4
     1990 (3) SCR 649               · referred to     Para 5
     2011 (14) SCR 533                  referred to   Para 5
                                                                          B
     1985 SCR 751                       referred to   Para 6
     1981 (1) SCR 498                   referred to   Para 6
    CIVIL ORIGINAL JURISDICTION : Contempt Petition (C)
No. 147 of 2014.
                                                                          c
                                   IN
     Special Leave Petition (C) No. 24874 of 2013.

     Raju Ramachandran, 0.P. Gaggar, Alok Kumar Jain for_
the Appellant.                                          , cP         i;
     T.R. Andhyarujina, U.A. Rana, Levi A. Rubins, Mrinal Elket
(for Gagrat & Co.) for the Respondent.                  ·
     The Judgment of the Court was delivered by
                                                                          E
      H.L. GOKHALE, J. 1. This contempt petition makes a
grievance that the respondent-N.R.C. Ltd. has not complied with
the order dated 19th August, 2013 passed by this Court while
dismissing their SLP (C) No.24874 of 2013, and an action be
taken against them for committing contempt of the above order F
passed by this Court. The said order dismissed the SLP filed
by the respondent, challenging their eviction from the premises
occupied by them. However, considering the num.ber of
employees who were engaged in their registered office situated
at that place, they were granted time till the end of December, G
2014 to vacate the premises, subject to filing the usual
undertaking in the Registry of this Court within four weeks from
that date, stating that the petitioner will not create any third party
rights, all the mesne profits will be paid in the meanwhile, and
will peacefully vacate the premises concerned at the end of
December, 2014.                                                        H
    608      SUPREME COURT REPORTS                   [2014] 3 S.C.R.


A       2. That special leave petition was filed to challenge the
  judgment dated 10th May, 2013 of the High Court of Bombay
  in Writ Petition No.2898/2011 and LP.A. No.174 of 2012
  under which the order passed by the Estate Officer of the
  appellant, and confirmed by the City Civil Court was left
B undisturbed. The order dated 19th August, 2013 required the
  respondent to file the necessary undertaking, but it was not
  filed, and the mesne profits as required have also not been
  paid. It is also pointed out that subsequently one more I.A., being
  I.A. No.2 of 2014, was taken out by the respondent-N.R.C. ltd.
c to be relieved of this undertaking, and that I.A. was not pressed,
  and the same came to be dismissed by this Court by its order
  dated 7th October, 2013.

           3. Mr. Raju Ramachandran, learned senior counsel,
    appearing for the petitioner Central Bank of India points out that
D   the financial difficulties of the respondent were plac;ed on record
    in that I.A. and subsequently the same has been withdrawn.
    That being so, there was no reason for the respondent not to
    file the undertaking and not to pay the mesne profits as required.
    He has drawn our attention to two judgments of this Court in
E   almost similar circumstances. One was the case of Ram Pyari
    (Smt.) & Ors. vs. Jagdish Lal reported in 1992 (1) SCC 157,
    and the other was that of Santanu Chaudhuri vs. Subir Ghosh
    reported in 2007 (10) SCC 253. In both these matters
    undertakings to vacate were given 11ut they were not complied
F   with, and therefore the contempt pettition was filed. This Court
    in both these matters noted that ~ince undertaking was not
    given, there could not be any cont~mpt as such, but the order
    passed by this Court had to be cl:>mplied with, and therefore
    permitted the petitioners to take the help of police to take back
G   the possession of the concerned premises.

      4. Mr. T.R. Andhiyarujina, learned senior counsel,
  appeared for the respondent-N.R.C. ltd. He relied upon the
  judgment of this Court in Sushi/ Kumar vs. Gobind Ram
H reported in 1990 (1) SCC 193 to submit that the Estate Officer
    CENTRAL BANK OF INDIA v. N.R.C. LIMITED               609
              [H.L. GOKHALE, J.]

was coram non judice, since according to him he did not have A
jurisdiction to pass the order of eviction. He referred to the
judgment of this Court in the case of Jagmittar Sain Bhagat
vs. Director, Health Services, Haryana reported in 2013 (10)
sec 136 to submit that the question of jurisdiction can be
raised at any stage. He has drawn our attention to the judgment B
rendered by this Court in C.A.No.1970 of 2014 on 11th
February, 2014 in the case of Dr. Suhas H. Pophale vs.
Oriental Insurance Co. Ltd. and Its Estate Officer to which one
of us (H.L. Gokhale,J.) was a party. Mr. Andhiyarujina has
submitted that this judgment clearly lays down that the Public c
Premises (Eviction of Unauthorized Occupants) Act, 1971 will
not apply prior to the Act coming into force, that is prior to 16th
September, 1958. He has drawn our attention to various
paragraphs of this judgment and submitted that though this
judgment has been rendered subsequent to the dismissal of D
the present special leave petition, inasmuch as the law is now
clarified, the respondent-N.R.C. ltd. cannot be said to be an
unauthorized occupant, nor can the action under the Public
Premises Act be said to be valid. He pointed out thatthe N.R.C.
Ltd. has been a tenant of this property since about 1946.
Subsequently, the building wherein its premises are situated, E
was taken over by the Life Insurance Corporation, and thereafter
by the Central Bank of India. In view of this judgment, the
relationship between the Central Bank of India and the N.R.C.
ltd. as landlord and tenant will continue to be governed under
the Bombay Rent Act and now under The Maharashtra Rent F
Control Act, 1999.

     5. Inasmuch as this submission has been raised by Mr.
Andhiyarujina, learned senior counsel, we would like to point
out that this judgment in Dr. Pophale's case clarifies the legal G
position as laid down by this Court earlier in the case of Ashoka
Marketing Ltd. & Anr. vs. Punjab National Bank & Ors.
reported in 1990 (4) SCC 406. That judgment has held that the
Public Premises Act and the State Rent Control Acts were both
referable to the concurrent list, and would be valid in their H
    610      SUPREME COURT REPORTS                   [2014] 3 S.C.R.


A spheres, but Public Premises Act will prevail to the extent of
  any repugnancy. Therefore, this Court held earlier in the case
  of Banatwala and Company vs. Life Insurance Corporation of
  India & Anr. reported in 2011 (13) SCC 446 that to the extent
  the Public Premises Act covers the relationship between the
B landlord and the tenant, namely, for eviction of unauthorized
  occupants and for recovery of arrears of rent, the Public
  Premises Act will apply and not in other aspects of their
  relationship. This is why in Banatwala's case (supra) it was held
  that the application for the maintenance of the premises would
c lie to the Court of Small Causes in Mumbai, and it will not be
  hit by the provisions of the Public Premises Act. The issue in
  Dr. Suhas H. Pophale's case was as to when the Public
  Premises Act will apply, and it was laid down that the Act will
  not apply prior to the Act coming into force, and until the
D premises concerned belonged to the concerned public
  corporation, whichever is the later date. This was on the footing
  that if there are any welfare provisio~s in the statutes, the
  legislature cannot be intended to have taken them away if there
  is no repugnancy.

E      6. In Dr. Suhas H. Pophale's case the judgment of this
  Court in the case of Rashtriya Mill Mazdoor Sangh, Nagpur
  vs. The Model Mills, Nagpur and Anr. reported in AIR 1984
  S.C. 1813 was specifically referred in paragraph No.29 to point
  out that if there is any welfare provision in a statute it cannot
F be taken away. This was in the context of the Payment of Bonus
  Act. It was also held that the judgment in Mis Jain Ink
  Manufacturing Company vs. Life Insurance Corporation of
  India & Anr. reported in 1980 (4)      sec   435 did not consider
  the issue of protection in a welfare legislation to the tenant, prior
G to the premises becoming public premises, and the issue of
  retrospectivity. So also these issues were not in consideration
  in the case of Ashoka Marketing Ltd. (supra). In paragraph 49
  of Dr. Pophale's case, this Court discussed the inter relation
  between Article 254(1) and 254 (2) of the Constitution, and
H specifically pointed out that the Government and the statutory
       CENTRAL BANK OF INDIA v. N.R C. LIMITED                     611
                 [H L. GOKHALE. J.]
 corporations were taken out of the protective umbrella when the           A
 Maharashtra Rent Control Act was passed and so they would
 be covered under the Public Premises Act. but of course from
 the date when the Act comes into force or from the date when
 the premises belong to the concerned Government corporation.
 What applies to the landlord, equally applies to the tenants.             B

           7. As far as the present action initiated by the Central Bank
   of India is concerned. the notice to evict was rssued on 26th
, )une, 2007, much after the Maharashtra Rent Control Act came
 -:-'into force on 31.3 2000. This Act clearly lays down that it shall
    not apply to Public Ltd. Companies having a paid up share              C
    capital of Rs. One Crore or more. Section 3 (1) (b) of the Act
    reads as follows:-

       3 Exemption
                                                                           D
       (1) This act shall not apply

       (a) ........

       (b) To any premises let or sub-let to banks, or any Public
       Sector Undertakings or any <;:orporation established by or          E
       under any Central or State Act, or foreign missions,
       international agencies multinational companies, and
       private limited companies and public limited companies
       having a paid up share capital of rupees one crore or
       more."                                                              F
       There is no dispute that the respondent N.R.C. Ltd. is a
  company having a paid up share capital of more than rupees
  one crore. That being so, the protective umbrella of the State
  Rent Control Act which was available to the N.R.C. Ltd. would
  not be available to it beyond 31.3.2000. That being so, the              G
  provisions of Public Premises Act would clearly apply to these
  premise on or after 31.3.2000 for the purposes of eviction of
  unauthorised occupants and therefore, the action initiated by
  the Central Bank of India could not be faulted with.
                                                                           H
    612       SUPREME COURT REPORTS                 [20141 3 S.C.R.

A       8. Mr. Andhiyarujina, learned senior counsel, appearing for
   the N.R.C. Ltd. has drawn our attention to the fact that the
   company's affairs are before the BIFR, and it also had
   correspondence with the trade union representing the
   employees, but the employees union was not ready to help in
B any manner. Those are different aspects, and as pointed out
   by Mr. Raju Ramachandran, learned senior counsel, the
   financial difficulties of N.R.C. Ltd. were brought to the notice of
   this Court by filing the l.A.No.2 of 2014 which was not pressed,
   and that being so, the issue cannot be allowed to be re-agitated.
c A tenant or an occupant cannot be permitted to be on the
  ·premises of the landlord without paying the rent, or the
   occupation charges, which is what N.R.C. Ltd. is attempting to
   do.

        9. This being the position, in our view, the Central Bank
D will be entitled to take back the possession of.the -eo-neeme"tl
  premises with respect to which the order of eviction has been
  passed, and we permit it to resume the same oy taking the help
  of police if required.

E          The contempt petition is allowed in the above terms.

    D.G.                                Contempt petition allowed.