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Supreme Court of India

JOGINDER KUMAR BUTANversusR.P. OBEROI

Citation
1987 INSC 208
Decided
12 August 1987
Disposal
Dismissed

Holding

The Supreme Court held that the permission under Section 21 was valid, not obtained by fraud, and the absence of a separate written lease does not invalidate the order.

Summary

The respondent, a government official residing in government quarters, obtained permission under Section 21 of the Delhi Rent Control Act, 1958 to let a portion of his house to the appellant for 18 months. After the lease term expired, the appellant refused to vacate and the respondent filed an execution application, which was upheld by the Rent Controller, the Rent Control Tribunal, and the Delhi High Court. The appellant appealed to the Supreme Court, alleging that the permission was obtained by fraud because the respondent had repeatedly used Section 21 for short‑term leases and that the lack of a separate written lease rendered the permission invalid. The Court held that the appellant failed to produce any factual evidence of fraud or abuse of the statute, and that a statement before the Rent Controller suffices under settled Delhi High Court law. It further observed that Section 21 is a complete code and does not require a subsequent written lease or registration. The Court also noted that the appellant’s delay in raising the fraud claim weakened his case. Consequently, the appeal was dismissed and the execution order upheld.

Issues considered

  • Whether the permission granted under Section 21 of the Delhi Rent Control Act was obtained by fraud or wilful contravention of the statute.
  • Whether a separate written lease agreement is a mandatory condition for the validity of a permission under Section 21.
  • Whether the appellant's delay in challenging the permission defeats his claim of fraud.
  • Whether the settled jurisprudence of the Delhi High Court that Section 21 is a complete code should be followed.

Legislation cited

Subjects

Delhi Rent Control ActSection 21limited tenancyfraudlease agreementstatutory interpretationexecution proceedingsgovernment servantrent control

Judgment

                           JOGINDER KUMAR BUTAN                                    A
                                           v.
                                     R.P. OBEROJ

                                  AUGUST 12, 1987

            [SABYASACHI MUKHARJI AND S:-NATARAJAN, JJ.]                            B

              Delhi Rent Control Act, 1958: s. 21-Limited tenancy-Permis-
        sion obtained from Rent Controller for short periods-·Whether fraud/
        wilful contravention/abuse of statute-Objections not raised during the

-
•y
        term of the lease-Permissibility of-Lease agreement not reduced to
        writing-Validity of.                                                       c
              Statutory Interpretation-Local statutes-Law settled by High
         Court over a continuous period of time-Normally to be adhered to-
         Should not be disturbed.

               The respondent, a government official, while residing in Govern- D
         ment quarters sought permission of the Rent Controller under s. 21 of
         the Delhi Rent Control Act, 1958 for leasing out a portion of his house
         to the appellant for residential purposes for 18 months as he did not
         require it for his own use for that period. The appellant declared before
         the Rent Controller that he accepted the statement of the respondent
         and that he shall vacate the premises on the expiry of the period of 18 E
         months. The Rent Controller, thereupon, passed an order granting
         permission in terms of the declaration. When after expiry of the
         stipulated period the appellant failed to vacate the leased portion, the
         respondent tiled an execution application for recovering possession.
         The Rent Controller as well as the Appellate Authority rendered con-
         current finding to the effect that the tenancy came into effect only by F
         reason of the permission granted hy the Rent Controller under s. 21 and
         directed the appellant to deliver possession to the respondent.

                   In second appeal before the High Court it was contended by the
& -         appellant t'iat since the lease agreement was not reduced to writing, as
~'required under s. 21 of the Act, the permission granted by the Rent G
~· ,... /   Controller was not valid. Dismissing the appeal the High Court held
        1
     /    !{that in as much as the parties had made statements before the Rent
 /        .. Controller and duly signed them, there was sufficient compliance with
             the terms of s. 2 I and it was not necessary that there should be a
             separate agreement in writing over and above the draft agreement and
             the statements rendered before the Rent Controller.                     H

                                            937
     938                    SUPREME COURT REPORTS            (1987] 3 S.C.R.

A
          In the appeal by special leave, the contention taken before the        +
     High Court was reiterated, and in addition it was contended for the first
     time that the permission obtained by the respondent from the Rent
     Controller under s. 21 was in fraud of the statute inasmuch as he had
     been obtaining such permission on several occasions for short periods In
     order to deprive the tenants of their rights under the Act,
 B
           Dismissing the appeal,

         HELD: I. I A plea pertaining to fraudulent practice is a mixed
   question of fact and law. Without the requisite foundation on facts to
   prove a wilful contravention or abuse of a provision of law a finding
 C cannot be rendered as to whether a party has committed a fraud by                 -
   abusing any legal provision, [943FG]

         1.2 In the instant case, the appellant had not cross-examined the
  respondent with reference to the lease granted earlier by the respondent
  to other tenants nor had he adduced independent evidence to prove the
D factum of those leases and snch leases being granted by abuse of the
  provisions of s. 21 of the Delhi Rent Control Act, 1958. In the absence of }-
  factual material to show the abuse or misuse of the provisions of s. 21, it
  cannot be said that the respondent had practised fraud on the Rent
  Controller in obtaining permission. Besides, even if the respondent had
  let out different portions of the building to other tenants on earlier
E occasions by having recourse to s. 21 he may have done so on the basis . j
  of bona fide grounds and genuine calculations and his calculations may ~ ..
  have gone wrong due to factots or events beyond his control. The mere
  fact of letting out of the premises once again by resort to s. 21 for
  a limited period should not necessarily lead to the inference that from y
  the very beginning the premises .were available for letting out indefini-
F tely. [943EF, G-944A, 946A]

           Dhanwanti v. D.D. Gupta, (AIR 1986 SC ll84) referred to.

        1.3 The respondent was a government servant and was li'ving in
  Government quarters. He had an apprehension that the said allotment.
G may be cancelled because of his owning a house and so he had to prov,ide Y     ~
  for any contingency resulting from such cancellation and hence he felt
  he would be able to spare the leased premises only for a limited period.
  There was no material before the Rent Controller to establish or even to
  arouse suspicion that the respondent was playing a fraud on the statute.
  In such circumstances the order passed by the Rent Controller cannot
H be said to be vitiated in any ma*ner. [945AB]
                                   J.K. BUTAN v. R.P. OBEROI                      939
     +              S.B. Noronah v. Prem Kumari Khanna, [1980] 1 SCR 281,                A
              applied.

                   V.S. Rahi v. Ram Chambeli, [1984] 2 SCR 290, distinguished.

                 2. The appellant has waited for the full term of the lease to raise
        }- objections about the respondent playing a fraud on the statute. He has B
              failed to put forth these objections within a reasonable time, after the
    )         permission was granted by the Rent Controller, to impugn the order on
              the ground of the alleged fraud perpetrated by the respondent.. This
              factor weakens the objections raised by the appellant and denudes them
~             of force and content. [946CD]
~


·y                  J.R. Vohra v. India Export House, [1985] 2 SCR 899 at 911-912,
                                                                                         c
              referred to.

               3. In the matter ofinterpretation of a local statute the law settled
         by the High Court over a continuous period of time should normally be
         adhered to and should not be disturbed. The Delhi High Court has D
     ~ consistently held that s. 21 of the Delhi Rent Control Act, 1958 is a
         complete Code by itself, and a permission granted thereunder would
         not become invalid either on account of the landlord failing to disclose
         the reasons for non-requirement of the leased premises for a particular
         period or because of the landlord and the tenant not entering into an
         agreement in writing subsequent to the grant of permission under s. 21 E
      ~- or on account of the agreement of tenancy in writing not being subse-
--   .   quently registered. A different view would not only introduce an ele-
         ment of uncertainty and confusion but it would also have the effect of
     "(  unsettling transactions which might have been entered into on the faith
         of those decisions. [947B, 94611-947A, FG]
                                                                                    F
               Inder Mohan Lal v. Ramesh Khanna (C.A. No. 468 of 1977)
         decided on 4.8.1987; Raj Narain Pandey & Ors. v. Sant Prasad Tewari
         & Ors., [1973] 2 SCR 835 and Kasturi Lal v. Shiv Charan Das Mathur,
          [1976] Rent Control Reporter, Vol. 8 p. 703, referred to.

    ~
        "'(          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1148 G
               of 1979.

                   From the Judgment and Order dated 4.4. 1979 of the Delhi High
               CourtinS.A.0.No.103of1979.

                     P.H. Parekh and A.K. Gupta for the Appellant.                       H
     940                     SUPREME COURT REPORTS           [ 1987] 3 S.C.R.
                                                                                 +
             Dr. U.R. Lalit. C.M. Oberai and D.N. Misra for the Respon-
A
     dent.

             The Judgment of the Court was delivered by

          NATARAJAN, J. This appeal by special leave is directed against ~
B   a judgment of the Delhi High Court dismissing the second appeal
    preferred by the appellant herein to impugn the order passed against .       -i
    him in execution proceedings taken under Section 21 of the Delhi Rent
    Control Act 1958 by the Rent Controller and confirmed by the Rent
    Control Tribunal.

c from The  respondent, a Government official who has since retired
       service is the owner of a house bearing number Al 15, N araina            y·
                                                                                      ,

     Vihar, New Delhi. During the year 1976, the respondent was residing
     in Government Quarters situated in Kidwai Nagar, New Delhi. On
     June 1, 1976 the respondent and the appellant appeared before the
     Rent Controller and sought for permission of the Rent Controller for
D    the rear portion of the ground floor being leased out for a period of 18
     months to the appellant under Section 21 of the Delhi Rent Control
     Act (hereinafter referred to as the Act). Besides filing the application,
     the parties gave their declarations before the Rent Controller. The
     respondent declared that he was the owner of the premises No. A-15,
     Naraina Residential Scheme, Delhi, that he did not require the rear
E    portion of the ground floor as shown in the plan Exhibit A-1 for his
    own use, that as such he wanted to let out the same to the appellant for
    residential purpose at a monthly rent of Rs.500 exclusive of water and
    electricity charges for a period of 18 months with effect from June l,
     1976 as per proposed lease deed Exhibit A-2. The appellant for his
    part declared that he had heard the statement of the respondent and he
F   accepted the same as correct, that he wanted to take on lease the rear
    portion of the ground floor of the respondent's house as marked in
    plan Exhibit A-1 for his residence 0n a monthly rent of Rs.500 exclu-
    sive of water and electricity charges for a period of 18 months with
    effect from June l, 1976 as per the terms contained in the draft lease
    deed Exhibit A-2 and further declared that he "shall vacate the pre-
G   mis~ on the expiry of the aforesaid period of 18 months." Thereupon
    the Kent Controller passed an order as under:-

                 "Having regard to the averments made in the petition and
                 the statements of the parties recorded above. permission
                 under Section 21 of the Delhi Rent Control Act, 1958 is
H                granted to the petiiioner for letting out the aforesaid por-
                          l.K. BUTAN v. R.P. OBEROI [NATARAJAN, I.]             941
  +                      tion of the aforesaid house as detailed in the statement of
                                                                                      A
                         the petitioner to the respondent for residential purpose for
                         a period of 18 months with effect from today, the 1st of
                         June, 1976. File be consigned to the record room."

       ,>--          It' was the case of the respondent in the execution application
              filed by him that pursuant to the above said permission granted by the B
  t           Rent Controller, the appellant was inducted into possession of the
              leased portion on June 2, 1976, that the period of lease came to an end
              on November 30, 1976 and that as the appellant failed to deliver pos-

-• y          session on December 1, 1977 as undertaken by him, he had to file the
              application under Section 21 for recovering possession of the leased
              portion. The said execution application was filed on December 12, C
               1977.

                   The appellant contested the application and raised a three-fold
              deJence as under:-

'.' ,(              ( 1) He had been inducted into possession as a tenant on May 28, D
              1976 itself, i.e. before the Rent Controller gave permission to the lease
              trans~ction by his order dated June 1, 1976 and that as such the
              tenancy was not governed by the order passed under section 21 of the
              Act by the Rent Controller.

                    (2) Though the leased portion was taken on rent for being used E
              as a residence, the parties by mutual arrangement had agreed soon
              after the lease to make the proprietary concern of the appellant viz.
              M Is. Refaire Projects Corporation the tenant of the premises and as
              such the firm was the tenant and not the appellant and hence the
              execution application against the appellant was not maintainable.
                                                                                        F
                   3. After the period of tenancy was over, a fresh tenancy was
             entered into governing not only the leased portion of the ground floor
             on a higher rent of Rs.550 P.M. but also covering a garage and
             servants quarters on a monthly rent of Rs.150 and by reason of the new
  ~     -..1 ten_ancy the respondent was disentitled to file an execution appli-
          1 catton.                                                                 G

                     The Rent Controller and the Rent Control Tribunal, after a due
               consideration of the materials placed before the court by the parties,
               rendered concurrent findings to the effect that the tenancy came into
               effect only by reason of the permission granted by the Rent Controller
               under Section 21, that the several pleas of the tenant viz. a tenancy    H
     942                    SUPREME COURT REPORTS            [1987] 3 S.C.R.

 A   coming into existence even prior to the order of the Rent Controller, a
                                                                               +
     subsequent modification of the tenancy so as to make the firm the
     tenant and a fresh tenancy being created so as to cover an additional
     area and on revised rental terms were all untenable and baseless con-
     tentions. Both the authorities therefore allowed the execution applica-
     tion and directed the appellant to deliver possession of the leased
 a   premises.

         Before the Bigh Court, in the second appeal preferred by the
   appellant, the question of a fresh tenancy on revised terms of lease was
   again sought to be canvassed but the High Court very rightly declined
   to examine the matter as the exercise would call for appraisal of evi-
C dence on factual matters which is in the domain of the Trial Court and
                                                                                   -
   the first Appellate Court and would also necessitate sitting in judg-       y•
   ment over concurrent findings of facts rendered by the courts below. It
   was then urged before the High Court that there was no agreement in
   writing as required under Section 21 of the Act and hence the permis-
D sion granted by the Rent Controller was not a valid one on the strength
  of which an execution application can be filed. The High Court re-
   jected this contention stating that inasmuch as the parties had made
  statements before the Rent Controller and duly signed them, there was
  sufficient compliance with the terms of Section 21 and it was not neces-
  sary that there should be a separate agreement in writing over and
  above the draft agreement and the statements rendered before the
E Rent Controller. The High Court also briefly went into the question
  whether the proprietary concern of the appellant had become the tenant
  and whether thereby the use of the premises had been changed from
  residential to non-residential purpose and found the contentions of the
  appellant to be wholly devoid of merit. The High Court therefore
  dismissed the second appeal and hence the present appeal by special
F leave by the tenant.


         Mr. Parekh, learned counsel for the appellant, realising the futil-
  ity of canvassing once over again the unsuccessful defences raised
  before the courts below and th.e High Court, sought to assail the judg-
G ment of the High Court and the order in the Execution Application on
  two grounds alone viz. (1) the permission obtained by the respondent
  from the Rent Controller under Section 21 was in fraud of the statute
  and (2) an important condition prescribed by Section 21 was not fulfil-
  led. It has to be mentioned even here that these contentions had not
  been raised before the Rent Controller and the Appellate Tribunal or
H even before the High Court.
                    J.K. BUTAN v. R.P. OBEROI (NATARAJAN, J.]             943

               In so far as the first contention is concerned, the appellant has A
       alleged in the special leave petition that tile respondent had been
       obtaining permission from the Rent Controller under Section 21 on
       several occasions for leasing out different portions in the ground floor
       as well as the first floor of the house to different tenants for short
     ~eriods in order to dep~ve the tenants of their rights i:onferred by the
    · Act and also to get higher rent from each successive tenant. The B
     , respondent has con tr.overted these averments in his counter-affidavit.
        Mr. Parekh submitted that the appellant was not setting up a new case
        because he had given the details of the names of the previous tenants
,       and the portions occupied by them and the periods for which short
        term leases were granted to them after obtaining permission from the
        Rent Controller under Section 21 of the Act and as such there were
   Y enough materials before the Court to show that the respondent had c
        been abusing the provisions of Section 21 and playing a fraud upon the
        statute and obtaining permission for leasing out portions of the house
        to several tenants for limited durations and as such the permission
        granted by the Rent Controller in this case is vitiated by the fraud
   ~ committed by the respondent and hence the execution application D
        filed by the respondent was not at all maintainable. It is true we find
        that in the objections filed by the appellant to the execution applica-
        tion, he has given some particulars regarding the names of some
        tenants to whom the other portions of the building had been let out by
        the respondent after obtaining permission from the Rent Controller
    }'- under Section 21. But significantly enough, the appellant had not E
  • pursued the matter and substantiated the charge of fraud levelled by
        him. He has not cross-examined the respondent with reference to the
        leases granted earlier by him to other tenants nor has he adduced
         independent evidence to prove the factum of those leases and such
         leases being granted by abuse of the provisions of Section 21. In the
         absence of factual materials to show the abuse or misuse of the provi- F
         sions of Section 21, it is not possible for us to sustain the contention of
         the appellant's counsel that the respondent had practised fraud on the
         Rent Controller and obtained permission under Section 21 to lease out
         a portion of the house to the appellant because a plea pertaining to
      Y,raudulent practice is a mixed question of fact and law. Without the
         requisite foundation on facts to prove a wilful contravention or abuse G
         of a provision of law a finding cannot be rendered as to whether a party
         has committed a fraud by abusing any legal provision. Besides, it has
         to be borne in mind that even if the respondent had let out the ground
         floor portions and the first floor of the building to other tenants on
          earlier occasions by having recourse to Section 21 of the Act, the
          respondent may have done so on the basis of bona fide grounds and H
    944                    SUPREME COURT REPORTS           [1987) 3 S.C.R.

A   genuine calculations and his calculations may have gone wrong due to
                                                                               +·
    factors or events beyond his control.

          Learned counsel invited our attention to the decisions rendered
    inS.P. Noronah v. Prem Kumari Khanna, [1980) l SCR 281 and V.S.
B    Rahi v. Ram Chambeli, [ 1984) 2 SCR 290 and argued that the respon· -(
    dent had suppressed material facts from the Rent Controller when he
    asked for permission under Section 21 of the Act to lease out the
     premises in question to the appellant for eighteen months, and further·
                                                                              '·1
                                                                                ,


    more the Rent Controller had passed his order granting permission.
    under Section 21 without the application of mind. Similar contentions
    were raised before us in the case of Inder Mohan Lal v. Ramesh
C   Khanna (C.A. No. 468 of 1977) in which judgment has been rendered
    by us on 4.8.1987. The whole gamut of Section 21, the object underly·       Y
    ing the provision, the field of its operation and the correct ratio to be
    applied in dealing with cases pertaining to Section 21 have been elabo-
    rately considered by us in the light of the earlier decisions of this Court
    and some of the decisions rendered by the Delhi High Court. We have
D   pointed out therein that in order to attract Section 21 four conditions )--
    have to be satisfied viz. (1) the landlord does not require the whole or
    part of any premises for a particular period, (2) the landlord must
    obtain the permission of the Controller in the prescribed manner, (3)
    the letting of the whole or part of the premises must be for residential
    purposes only; and (4) such letting out must be for such period as may
E   be agreed to in writing. After analysing the decision in Noronah's case ""
    the resultant position emerging under law has been summarised as
    follows:·


               "An analysis of this judgment which has been applied in
F              the various cases would indicate that Section 21 only gives
               sanction if the landlord makes a statement to the satisfac-
               tion of the court and the tenant accepts that the landlord
               does not require the premises for a limited period, this
               statement of a landlord must be bona fide. The purpose
               must be for residence. There must not be any fraud or,
G              collusion. There is a presumption of regularity. But it is Y
               open in particular facts and circumstances of the case to
               prove to the satisfaction of the executing court that there
               was collusion or conspiracy between the landlord and the
               tenant and the landlord did not mean what he said or that it
               was a fraud or that the tenant agreed because the tenant
H              was wholly unequal to the landlord."
                     J.K. BUTAN v. R.P. OBEROI [NATARAJAN, J.]                945

               Viewed in this light it may be seen that the respondent herein has
                                                                                      A
        satisfied all the tests prescribed in Noronah' s case. The respondent was
        a Government servant and was living in Government quarters allotted
        to him. He had an apprehension that the allotment of the Government
        quarters may be cancelled because of his owning a house and so he had
        to provide for any contingency resulting from the cancellation of the
        allotment of Government quarters to him, and hence he felt he would           B
        be able to spare the leased premises only for a limited period. There
        was no material before the Rent Controller to establish or even to
        arouse suspicion that the respondent was playing a fraud on the sta-
        tute. In such circumstances the order passed by the Rent Controller
-       cannot be said to be vitiated in any manner. It would also be pertinent
        to point out in this context that if the Rent Controller had reason to
        suspect the bona fides of the respondent's application under Section          c
        21, the Rent Controller could only have declined to grant his permis-
        sion for the lease transaction and, if he had done so, the lease transac-
        tion would not at all have come to pass through. The Rent Controller
        could not have compelled or directed the respondent to give the pre-
        mises on lease to the appellant for an indefinite period of time so as to     D
        enable the appellant to have the benefit of the statutory protection
        afforded by the Act against eviction except on one or more of the
        grounds set out in Section 14. In so far as Rahi's case (supra) is con-
        cerned, the facts therein were totally different and they were instru-
         mental for the court declining to sustain the landlady's application


-       under Section 21 for eviction of the tenant. The evidence in the case
         established that the landlady had previously let out the identical por-
         tion of the house to other tenants but still she had made a false declara-
         tion before the Rent Controller that she had never let out the portion
                                                                                      E



    r    to any one earlier. Furthermore her statement that after the lease
         period was over her mother would be joining her and the leased por-
         tion would be required for her was found to be false because the lady        F
         in question was not her mother but an aunt whom the landlady
         claimed to be her foster mother. It was therefore a case where the
         permission under Section 21 had been obtained on the basis of false
         declarations and statements. In the present case no such false declara-
         ticm had been made by the respondent when he sought the permission
         of the Rent Controller under Section 21. On the other hand we are            G
          inclined to agree with the argument of the respondent's counsel that
          the facts of the case call for the court taking the view which it had
         taken in the case of Dhanwanti v. D.D. Gupta, (AIR 1986 SC 1184).
          In that case it was observed that there may be certain cases where the
          owner, afte{ obtaining permission under Section 21 of the Act had let
          out the premises for a limited period and after the expiry of the said      H
     946                   SUPREME COURT REPORTS            [1987] 3 S.C.R.

A period he may have again found it necessary to obtain permission to let
                                                                               +
  out the premises for another limited period due to genuine causes and
  therefore, the mere fact of letting out of the premises once again by
  having resort to Section 21 of the A~t for a limited period should not
  necessarily lead to the inference that from the very beginning the pre-
B mises were available for letting out indefinitely. In the instant case
  there is no evidence except the averment of the appellant that the
  respondent had let out the leased portion on earlier occasions also for
  limited periods by having resort to Section 21. However even if that
  statement is true there cannot be an automatic inference that the
  permission granted by the Rent Controller pertaining to the lease of
  the premises to the appellant had been obtained by fraudulent means
C by the respondent.                        ,
                                                                                       -
         Apart from these things there is also another factor which
  weakens the objections raised by the appellant and denudes them of
  force and content. He has waited for the full term of the lease to raise
  objections about the respondent playing a fraud on the statute. He has
D failed to put-forth these objections within a reasonable time after the
  permission was granted by the Rent Controller to impugn the order on
  the ground of the alleged fraud perpetrated by the respondent. It was
  observed by this Court in J.R. Vohra v. India Export House, [1985] 2
  SCR 899 at 911-912 that the remedy available to a tenant in a case



                                                                                       -
  where there was only a ritualistic observance of the procedure while
E granting permission for the creation of a limited tenancy or where such      _.,,.
  permission was procured by fraud practised by the landlord or was a
  result of collusion between the strong and the weak, would be for the
  tenant approaching the Rent Controller during the currency of the
  limited tenancy itself for adjudication of his pleas as soon as he dis-
  covers facts and circumstances that tend to vitiate ab initio the initial
F grant of permission and not to wait till the landlord makes his applica-
  tion for recovery of the premises after the expiry of the period fixed
  under Section 21.

          We are, therefore, unable to Sustain the first ground of attack of
    the appellant's counsel to assail the judgment of the High Court.
G
        In so far as the second ground is concerned, this aspect of the
  matter also has been considered by us and dealt with in a detailed
  manner in lnder Mohan Lal's case; After noticing the decisions of the
  Delhi High Court which have held the field all along declaring that
H Section 21 is a complete Code by itself and that a permission granted
  under Section 21 would not become invalid either on account of the
                       J.K. BUTAN v. R.P. OBEROI [NATARAJAN, J.]               947

         landlord failing to disclose the reasons for non-requirement of the A
         leased premises for a particular period or because of the landlord and
         the tenant not entering into an agreement in writing subsequent to the
         grant of permission under Section 21 or on account of the agreement oi
         tenancy in writing not being subsequently registered, this Court
       ~ affirmed the decisions of the Delhi High Court laying down the above
         ratio in observance of the settled judicial policy that in the matter of B
    \.   interpretation of a local statute the law settled by the High Court over
     )   a continuous period of time should be normally adhered to and should
         not be disturbed. The relevant passage in the judgment reads as
         follows:-
-                     "Learned counsel for the appellant also stressed before us C
·y                    that Section 21 of the Rent Act was a complete Code by
                      itself. The order was under section 21 of the Rent Act. No
                      further question of lease or registered lease arose there-
                      after.

                            This question has been settled by series of decisions      D
                      of the Delhi High Court upon which people have acted for
                      long. See the decision in Kasturi Lal v. Shiv Charan Das
                      Mathur, [1976] Rent Control Reporter Vol. 8-703 where ~t
                      pages 708-709 Misra J. of the Delhi High Court had clearly
                      indicated numerous cases where it was held that Section 21
                      was a Code by itself. The order of the permission is itself an   E
                      authority; no lease was necessary and if that is the state of
                      law in Delhi, it is too late in the day to hold otherwise. See
                      the observations of this Court in Raj Narain Pandey and
                      others v. Sant Prasad Tewari & others, [1973] 2 SCR 835
                      where this Court observed that in the matter of the interpre-
                      tation of a local statute, the view taken by the High Court      F
                      over a number of years should normally be adhered to and
                      not to be disturbed. A different view would not only intro"
                      duce an element of uncertainty and confusion but it would
                      also have the effect of unsettling transactions which might
                       have been entered into on the faith of those decisions. In
                       Delhi, transactions have been completed on the basis of         G
                       permission and it was never doubted that there was any
                       requirement of any lease or any agreement subsequent to
                       the order and the same required registration.

                 There is therefore, no merit in th~ second contention of the
           appellant'~ counsel that since the lease transaction was not reduced to     H
    948                   SUPREME COURT REPORTS           [1987] 3 S.C.R.

A   writing in terms of Exhibit A-2 subsequent to the grant of permission
    by the Rent Controller, the terms of Section 21 are not fulfilled and
    hence the execution application under Section 21 would not lie.

         In the light of our conclusions the appeal has to fail and it will
    accordingly stand dismissed with costs to the respondent.
B
    P.S.S                                               Appeal dismissed.




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                                                                              yl


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