Holding

Article 136 does not convert the Supreme Court into an appellate court and dismissal of a special leave petition does not amount to passing a decree for eviction; consequently, Clause 13‑A does not apply to such petitions.

Summary

The appellant, a monthly tenant of an automobile garage, was served a notice under Section 106 of the Transfer of Property Act and faced an eviction suit. The trial court dismissed the suit on the ground of insufficient notice, but the appellate court reversed the decision and granted possession to the landlord. While the appeal was pending before the Supreme Court under a special leave petition (Article 136), the 1989 amendment to the Central Provinces and Berar Letting of Houses and Rent Control Order introduced Clause 13‑A, barring any decree for eviction unless the landlord obtained written permission from the Controller. The appellant contended that this clause should apply to the pending SLP and that the Supreme Court’s dismissal of the appeal would amount to passing a decree for eviction, which is prohibited. The Court held that Article 136 confers only discretionary power to entertain a petition and does not transform the Court into an appellate court; consequently, dismissal of the SLP does not constitute a decree for eviction. Moreover, Clause 13‑A applies only to suits or appeals under ordinary civil procedure, not to special leave petitions under Article 136. The appeal was therefore dismissed.

Issues considered

Whether a special leave petition under Article 136, when entertained, converts the Supreme Court into a court of appeal such that dismissal merges the lower court decree and amounts to passing a decree for eviction.
Whether Clause 13‑A of the Central Provinces and Berar Letting of Houses and Rent Control (Second Amendment) Order, 1989, applies to proceedings pending before the Supreme Court under a special leave petition.
Whether the bar on passing a decree for eviction under Clause 13‑A is triggered by the Supreme Court’s dismissal of the appeal.

Legislation cited

Subjects

Article 136special leave petitioneviction decreeClause 13‑ATransfer of Property Actrent controlappellate jurisdictionSupreme Court

Judgment

LAXMAN MAROTRAO NAVAKHARE A
v.
KESHAVRAO S/0 EKNATHSA TAPAR

MARCH 2, 1993

[DR. T.K. THOMMEN AND N.P. SINGH, JJ.] B

Constitution of India, j950: Article 136-S.L.P. under-Whether enter-
tainment of petition amounts to the Court converting itself into a c6Jurt of
appeal.

Central Provinces and Berar Letting of Houses and Rent Control Order, c
1949• : Clause 13-A-£ffect of-Whether benefit can be claimed if S.L.P.
under Article 136 of the Constitution of India is pending at relevant time.

The suit plot was let out to the appellant as a monthly tenant for an
automobile garage. The respondent-plaintiff issued a notice on 10th July, D
1975 determining the lease in favonr of the appellant with effect from 31st
July, 1975, and filed a suit for eviction.

The trial Court dismissed the said suit on the finding that as the
appellant was using the suit premises for manufacturing purposes, a six
months' notice was required before the lease could be determined, and as E
the notice issued to the defendant-appellant under section 106 of the
Transfer of Property Act had purported to determine the tenancy with 15
days' notice, the suit in question could uot have been filed.

On appeal by the respondent, the Assistant Judge came to the
conclusion that the premises in question had not been let out for any F
manufacturing purpose but for a motor workshop and as such the notice
under section 106 of the Act was valid, and the respondent was entitled to
the possession of the plot in dispute, and passed an order for possession.

The second appeal filed on behalf of the appellant was dismissed in G
limine by the High Court saying that no substantial question of law was
involved.

.In the appeal to this Court, the finding recorded by the Court of
Jc Appeal below and affirmed by the High Court that the respondent was
entitled to a decree for possession, and that the appellant was liable to be H
167
168 SUPREME COURT REPORTS j 1993] 2 S.C.R.

A evicted was not questioned. However, a new stand was taken on behalf of ~
the appellant that in view of the subsequent events the decree of eviction
passed against the appellant could not be given effect to. It was submitted
that by C.P. and Berar Letting of Houses and Rent Control (Second
Amendment) Order, 1989 a new clause 13A bas been introduced and that
was during the pendency of the present appeal, and that though clause
B
13-A .had been introduced not with retrospective effect still it shall be ~
applicable to proceedings pending before any Court including this court
and in view of the bar imposed by. the said clause 13-A no decree for
eviction could be passed by this court in the present appeal against the
appellant unless the respondent-landlord produces a written permission ----..
c of the Controller as required by sub..:lause (1) of Clause 13 of the Order.

[)ismissing the appeal, this Court,

HELD: 1. Article 136(1) of the Constitution confers on this Court
overriding and extensive powers of granting special leave to appeal. Article
D 136 does not confer a right to appeal which is in the discretion of this
Court. The discretionary power under Article 136 cannot be construed as
to confer a right of appeal where none exist. Although the power under
Article 136(1) is unfettered, it cannot be held that after having entertained
a special leave petition against any final or interlocutory order, this court
E converts itself into a court of appeal for the hearing of the dispute involved
and as such when the appeal is dismissed the decree passed by the High Y
Court merges into the decree of this court, and in that situation amounts
to passing a decree for eviction. [175G-H,176A]

Gyan Chand v. Kunjbehari/a/, [1977] 3 SCC 317, referred to. [176B]
F
2. The bar placed by clause 13-A of the Order shall be applicable
only to a suit or proceeding which was pending in any court under ..'"(
provisions of any special Act or under the provision of the Code of Civil
Procedure, as the case may be. It shall not become applicable to a special
G leav., petition pending or an appeal registered before this court on the
basis of leave granted under Article 136 of the Constitution. This Court
while exercising its discretionary power under Article 136 of the Constitu-
tion even while dismissing the appeal shall not be deemed to have passed -~
any decree for eviction. [177C-D]

H 3. The matter would have been different if clause 13-A instead of only
LAXMAN MAROTRAO v. KESHAVRAO [N.P. SINGH, J.] 169

imposing a bar on passing a decree for eviction had also prescribed a bar A
on passing any order for recovery of possession of any premises or on
initiation of execution proceedings on basis of any decree passed earlier.
In that event, this Court could have taken note of subsequent change in
the law and in exercise of its discretionary power could have passed an
order directing the respondent not to recover possession of the premises B
on the basis of the decree for eviction passed in bis favour or to pursue
the execution proceedings without complying with the requirement of
clause 13-A. [177E-F]

H. Shiva Rao v. Cecilia Pereira, [1987] 1 SCC 258; Mis East India
Corporan'on Lid. v. Shree Meenakshi Mills Ltd., JT 1991 (2) SC 397; Amarjit C
Kaur v. Pritam Singh, AIR 1974 SC 2068 and Sadhu Singh v. Dharam Dev
AIR 1980 SC 1654, referred to. [172F, 173G]

(During the hearing it was brought to the notice of the Court, that
the amended definition of 'Premises' and clause 13-A which had been
inserted by C.P. and Berar Letting of Houses and Rent Control (Second D
Amendment) Order, 1989, have been struck down by a Division Bench of
the Bombay High Court on 23.6.1992. But the Counsel neither produced a
copy of the said judgment, nor could inform whether any special leave to
appeal against the said judgment was pending before this Court. As such,
the effect of clause 13-A of the Order, bas been considered, so far as the E
'(.· present appeal was concerned.) [17711, 178A]

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5899 of
1983.

From the Judgment and Order dated 13.4.83 of the Bombay High F
Court in S.A. No. 46 of 1983.

""'- U.R. Lalit, Uday U. Lalit and A.G. Ratnaparkhi for the Appellant.

V.A. Bobde and A.K Sanghi for the Respondent.
G
The Judgment of the Court was delivered by

N.P. SINGH, J. The defendant in a suit for eviction is the appellant
before this court. The suit plot was let out to the appellant as a monthly
tenant for an automobile garage. The plaintiff-respondent (hereinafter
referred to as "the respondent") issued a notice on 10.7.1975 determining H
170 SUPREME COURT REPORTS [1993] 2 S.C.R.

A the lease in favour of the appellant with effect from 31.7.1975. Later the
suit in question was filed. As the suit premises had not been let out for
residential purposes, it was an admitted position that the Central Provinces
and Berar Letting of Houses and Rent Control Order, 1949 was not
applicable.

, B The Trial Court dismissed the said suit on a finding that as the
appellant was using the suit premises for manufacturing purposes, a six
months' notice was required before the lease could be determined and as
the notice issued to the appellant under section 106 of the Transfer of
Property Act (hereinafter referred as "the Act") had purported to deter-
c mine the tenancy with 15 days' notice, the suit in question could not have
been filed'. On appeal being filed on behalf of the respondent,.the Assistant
Judge came to the conclusion that the premises in question had not been
let out for any manufacturing purpose but for a motor workshop and as
such the notice under section 106 of the Act was valid and the respondent
was entitled to the possession of the plot in dispute. The second appeal
D filed on behalf of the appellant was dismissed in limine by the High Court
saying that no substantial question of law was involved.

Before this Court the finding recorded by the court of appeal below
and affirmed by the High Court that the respondent was entitled to a
E decree for possession and the appellant was liable to be evicted was not
questioned. A new stand was taken on behalf of the appellant, that in view · y·
of the subsequent events the aforesaid decree of eviction passed lgainst
the appellant cannot be given effect to. It was pointed out that by C.P. and
Berar Letting of Houses and Rent Control (Second Amendment) Order,
1989 a new clause 13A has been introduced in the said Order. The new
F clause 13A is as follows :-

"13-A. No decree for eviction shall be passed in a suit or
proceeding filed and pending against the tenant in any
court or before any Authority unless the landlord
produces a written permission of the Controller as re-
G
quired by sub-clause ( 1) of clause 13."

Leave to appeal was granted by this Court on 1st August, 1983 and ~
clause 13A has been introduced in the year 1989 during the pendency of
the present appeal. By that very amending Order the definition of
H "premises" given in the original Order has also been amended and the said
LAXMAN MAROTRAO v. KESHAVRAO [N.P. SINGH, J.] 171

definition after amendment includes not only building but even "land not A
being used for agricultural purposes". If the definition of the "premises",
which has been amended, had been in force on the date of the filing of the
suit, then the respondent had to pursue the procedure prescribed for
eviction in accordance with the provisions of the Order aforesaid instead
of filing a suit after service of notice under section 106 of the Act. There
B
is no dispute that the amendment has not been introduced with retrospec-
tive effect and it is only prospective in nature. As the suit premises is only
land and not a building when the suit was filed steps for eviction of the
appellant could not have been taken in accordance with the provisions of
the Order aforesaid because then those provisions were not applicable.
c
But the stand of the appellant is that although clause 13A has been
introduced not with retrospective effect still it shall be applicable to
Y- · proceedings pending before any Court including this Court and in view of
the bar imposed by said clause 13A, no decree for eviction can be passed
by this Court in the present appeal against the appellant unless the respon- D
dent-landlord produces a written permission of the Controller as required
by sub-clause (1) of clause 13 of the Order. Reliance was placed on the
case of H. Shil'a Rao v. Cecilia Pereira, [1987] 1 SCC 258, wherein it was
pointed out by this court :-

"It is well settled legal principle that Rent Control legis- E
lations being beneficial to the tenant have to be given a
liberal interpretation. While ordinarily substantive rights
should not be held to be taken away except by express
pro>ision or clear implication, in the case of Rent Control
Act, it being a beneficial legislation the provision which F
confers immunity to the tenant against eviction by the
landlord though prospective in form operates to take away
the right vested in the landlord by a decree of a court
which has become final, unless there is express provision
or clear implication to the contrary."
G

-
ff ar .1ears that in the aforesaid case the judgment was passed for posses-
sion of the premises in question on August 27, 1970. Thereafter execution
)....
proceedings were initiated. During rhe pendency of the execution proceed-
ings, the village in which the suit premises was situated was included within
the Mangalore Municipality by amendment of rhe Karnataka Rent Control H
172 SUPREME COURT REPORTS (1993] 2 S.C.R.

A Act, 1961. After issuance of the notification the provisions of the aforesaid
Rent Control Act became applicable even to the suit premises during the ~
pendency of the execution. An objection was taken on behalf of the tenant
that in view of sub-section (1) of section 21 of the Act aforesaid, the decree
passed in the connected suit was not executable. Sub-section (1) of section
21 provided :-
B
"Notwithstanding anything to the contrary contained in -4
any other law or contract, no order or decree for the
recovery of possession of any premises shall be made by
any court or other authority in favour of the landlord
c against the tenant."

So far the aforesaid case is concerned, once the provisions of the
Karnataka Rent Control Act became applicable during the pendency of "'(

the execution proceedings, the bar imposed on the Court from passing an
D order for recovery of possession of any premises in favour of the landlord
became applicable. But clause 13A, with which we are concerned, is only
in respect of passing a decree for eviction and "not an order for recovery
of the possession of any premises". If even in clause 13A a bar had been
placed in respect of recovery of possession of any premises, then there was
no difficulty in accepting the contention raised on behalf of the appellant
E
and holding that although there is a decree for eviction in favour of the -y
respondent, but as in the meantime a bar has been placed on recovery of
the possession of the premises the decree became unexecutable.

Reference was also made to the case of M/s. East India Cotporation
F Ltd. v. Shree Meenakshi Mills Ltd., JT 1991 (2) SC 397. It will appear that
when the suit in question had been filed or even when the leave had been
granted by this Court, the building in question did not come within the .-i

purview of the Tamil Nadu Building.' (Lease and Rent Control) Ac~ 1960,
in view of an exclusionary provision contained in clause (ii) of section 30.
G During the pendency of appeal before this Court clause (ii) of section 30
was struck down by this Court in another appeal pending as being violative
of Article 14 of the Constitution. The result whereof was that provisions of
~ ~
the aforesaid Act became applicable. In view of the subsequent events, it
was urged in the aforesaid case that section 10 of that Act became
H applicable as well. Section 10 provided :-
LAXMAN MAROTRAO v. KESHAVRAO [N.P. SINGH, J.] 173

"S.10.- Eviction of tenants.- {1) A tenant shall not be A
evicted whether in execution of a decree or otherwise
except in accordance with the provisions of this section or
sectfons 14 to 16:

B
In view of the bar placed by section 10 aforesaid on the eviction ·of
a tenant whether in execution of a decree or otherwise except in accord-
ance with the provisions of section 10 or sections 14 to 16 which had
become applicable in view of striking down of clause (ii) of section 30, the
decrees for eviction passed by courts below were set aside. This case is C
clearly distinguishable because the bar had been placed in respect of
eviction of the tenant whether in execution of a decree or otherwise and
this Court while exercising jurisdiction under Article 136 of the Constitu-
tion could have taken note of that bar for purpose of setting aside the
decree because in view of the subsequent events the decree passed in the D
suit became unexecutable in absence of compliance of section 10 or sec-
tions 14 to 16 of the Act.

Here as the bar is on the part of the Court from passing a decree
for eviction, it has to be examined as to whether while affirming the decree E
for eviction passed by the High Court, it shall be deemed that a fresh
decree for eviction shall be deemed to have been passed by this Court. It
was submitted that even if it is held that bar under clause 13A is only on
respect of passing of the decree as appeal before this Court on basis of the
leave granted under Article 136 of the Constitution is a continuation of the
suit/proceeding, while dismissing the said appeal, it shall be deemed that
F
this Court has passed a decree for eviction which in view of clause 13A is
barred and the said·bar is applicable even on this Court. In this connection
reference was made to the judgments of this Court in the cases of Amaljit
Kaur v. Pritam Singh, AIR 1974 SC 2068, and Sadhu Singh v. Sharam Dev,
AIR 1980 SC 1654. G

;.. In the case of Amaljit Kaur v. Pritam Singh (supra) the suit for
pre-emption in question had been decreed by the Trial Court. The appeal
preferred by the vendee was dismissed. While the second appeal was
pending before the High Court, the Punjab Pre-emption {Repeal) Act, H
174 SUPREME COURT REPORTS [1993] 2 S.C.R.

A 1973 came into force. In view of section 3 of the said Act, the High Court
allowed the appeal and dismissed the suit. Section 3 of that Act provided:- *
"Bar to pass decree in suit for pre-emption.- On and from
the date of commencement of the Punjab Pre-emption
(Repeal) Act, 1973, no court shall pass a decree in any
B suit for pre-emption."
~
In view of the fact that aforesaid section 3 said in clear and unambiguous
term that no court shall pass a decree in any suit for pre-emption after
coming into force of the Act, the High Court was of the view that said bar
c applied even to the High Court, while confirming the decree for pre-emp-
tion as passed by the Trial Court because it amounted to passing a decree
in a suit for pre-emption. This Court said :-

"As an appeal is a re-hearing, it would follow that if the
High Court were to dismiss the appeal, it would be passing
D a decree in a suit for pre-emption. Therefore, the only
course open to the High Court was to allow the appeal
and that is what the High Court has done. In other words,
if the High Court were to confirm the decree allowing the
suit for pre-emption, it would be passing a decree in a suit
for pre-emption, for, when t~e appellate court confirms a
E y'
decree, it passes a decree of its own, and therefore, the
High Court was right in allowing the appeal."

F
Again in the case of Sadhu Singh v. Dharam Dev, (supra) the same
section 3 of the Punjab Pre-emption (Repeal) Act, 1973, came up for
consideration and this Court held :-
-
"The section is plain and its meaning unambiguous that
there is a statutory mandate against passing a decree for
enforcement of a right of pre-emption in the State of
Punjab. The only point here is as to whether a decree
G already passed by the trial court, challenged in appeal
after the Act was passed and affirmed on appeal would
fall \vithin the mischief of S. 3 while the case pends in the
High Court. We think that S.3 interdicts the passing of a
decree even in appeal. For one thing a decree challenged
H in appeal is reopended and the appellants' hearing is a
LAXMAN MAROTRAO i·. K.ESHAVRAO fN.P. SINGH, J.J 175

-1' rehearing ot the whole subject matter and when a decree A
'--J
is passed in appeal the first decree merges in the appellate
decree and it comes within the scope of S. 3."

From the facts of the aforesaid case it shall appear that even in this case
section 3 of the Punjab Pre-emption (Repeal) Act had come into force
while appeal was pending in the High Court and the High Court had B
>--
affirmed the decree of the Trial Court without taking note of the bar
imposed by section 3 aforesaid. This Court said that section 3 interdicted
the passing of a decree even in appeal because the decree which had been
challenged in appeal had reopened the hearing of the whole subject matter
> and even while affirming the said decree it shall be deemed that appellate c
court had passed a decree for pre-emption which was not permissible in
view of the bar placed by section 3 of the Act in question.
y-
Jn the aforesaid cases section 3 of the Punjab Pre-emption (Repeal)
Act had come into force while the appeals were pending in the High Court D
and effect of section 3 of that Act was considered in connection with the
pendency of the appeals before the High Court and. not before this Court.
Can it be said that when a special leave is granted under Article 136 of the
Constitution by this court, against the judgment of the High Court it is to

.., be treated at par with an appeal entertained by the High Court against the
judgment of a court subordinate to the High Court ? Whether by granting
E
leave to appeal, the decree of the High Court is reopened "for rehearing"
of the whole subject matter ? Whether on the same analogy when an appeal
is dismissed by this Court, the decree of the High Court merges in the
decree of this Court and amounts to pass)ng a decree in the connected suit
for eviction by this Court ? F

r-
Article 136(1) of the Constitution confers on this court overriding
and extensive powers of granting special leave to appeal. Article 136 does
not confer a right to appeal, it confers a right to apply for special leave to
appeal which is in the discretion of this Court. The discretionary power G
under Article 136 cannot be construed as to confer a right of appeal where
.... none exist. According to us, although the power under Article 136(1) is
unfettered but it cannot be held that after having entertained a special
leave petition against any final or interlocutory order, this Court converts
itself into a court of appeal for the hearing of the dispute involved and as H
...
176 SUPREME COURT REPORTS \1993] 2 S.C.R.

A such when the appeal is dismissed the decree passed by the High Court
merges into the decree of this Court and in that situation amounts to
passing a decree for eviction.

This aspect has been considered by this Court in the case of Gyan
Chand v. Kunjbehari/al, [1977) 3 SCC 317, in connection with Rajasthan
B Premises (Control of· Rent and Eviction) Act, 1950. Section 13A as
amended by Rajasthan Ordinance 26 of 1975 extended the opportunity of
paying arrears of rent by the tenant facing eviction. Benefit was made
available in pending suits, appeals therefrom and applications for revision
pending on the date of commencement of the Ordinance. This Court
c examined whether that benefit of section 13A can be availed by the tenant
while the appeal was pending before this Court. The Ordinance aforesaid
had come into force after the special leave petition had been filed before
this Court. The appellant submitted that on basis of the leave granted a
proceeding was pending before this Court within the meaning of clauses ·
D (a) and (b) of section 13A aforesaid an~ as such he was entitled to the
benefit of section 13A which had come into force during the pendency of
the proceeding/appeal before this Court. Chandrachud, J. (as he then was)
speaking on behalf of the Court said :-

"With regard to the first submission it may be pointed out
E that an application for special leave under Article 136 of y
the Constitution against a judgment or an order cannot
be equated \vith the ordinary remedy of appeal, as of right,
under any provisions of law. It. is an extraordinary right
conferred under the Constitution, within the discretion of
F this Court, and such an ~pplication for special leave does
not come within the contemplation of appeal pending
before the Court under Section 13A(a). It is true that the
word "proceeding" which appears in Section 13A(a) and
(b) means suit, appeal or application for revision accord-
ing to the Explanation appended to Section 13A. There-
G fore, in order to attract Section 13A(a), a suit, appeal or
application for revision must be pending on the date of
commencement of the Ordinance 26 of 1975.

In view of the connotation of the word "proceeding'' as
H given under the Explanation to Section 13A it is imper-
LAXMAN MAROTRAO 1•. KESHAVRAO [N.P. SINGH, J.) 177

missible to extend the meaning of the word "proceeding" A
to include an application for special leave under Article
136 of the Constitution. The collocation of the words, "suit,
appeal or application for revision" in the Explanation to
denote "proceeding" would go to show that suits, regular
appeals therefrom, as provided under the ordinary law
and applications for revision alone are intended. It is
B
inconceivable that if the legislature had intended to in-
clude within the ambit of "proceeding" an application for
special leave under Article 136 of the Constitution it
would have omitted to mention it in express terms."
c
The bar placed by clause 13A of the Order in question shall be applicable
only to suit or proceeding which was pending in any court under provisions
of any special Act or under the provision of Code of Civil Procedure, as
the case may be. It shall not become applicable to a spe,cial;lcave petition
pending or an appeal registered before this Court on basis·~Jeave granted D
under Article 136 of the Constitution. This Court while exercising its
discretionary power under Article 136 of the . Constitution even while
dismissing the appeal shall not be deemed to have passed any decree for
eviction. The matter would have been different if clause 13A instead of
only imposing a bar on passing a decree for eviction had also prescribed a
bar on passing any order for recovery of possession of any premises or on E
initiation of execution proceedings on basis of any decree passed earlier.
In that event, this Court could have taken not of subsequent change in the
law and in exercise of its discretionary power could have passed an order
directing the respondent not to recover possession of the premises on basis
of the decree for eviction passed in his favour or to pursue the execution
F
proceedings without complying with the requirement of clause 13A.

We accordingly dismiss the appeal. But, in the circumstances of the
case, there shall be no orders as to costs.

Before_ we part with this appeal, we amy mention that during the G
pendency of the present appeal it was brought to our notice that amended
;... definition of "premises" and clause 13A which had been inserted by C.P.
and Berar Letting of Houses and Rent Control (Second Amendment)
Order, 1989, have been struck down by a Division Bench of Bombay High
Court on 23.6.1992. But the counsel neither produced a copy of the said H
178 SUPREME COURT REPORTS [1993] 2 S.C.R.

A judgment nor could inform this Court whether any special leave to appeal ·'l'"
against the said judgment is pending before this Court. As such, we have
considered the effect of clause 13A of the Order, so far the present appeal
is concerned.

N.V.K. Appeal dismissed.

--~