Supreme Court of India
M/S ALAGU PHARMACY & ORS.versusN. MAGUDESWARI
- Citation
- 2018 INSC 709
- Decided
- 14 August 2018
- Disposal
- Appeal(s) allowed
- Bench
- UDAY UMESH LALIT
Holding
Eviction of a tenant cannot be ordered unless the statutory ground for eviction under the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 is made out, even if the parties have entered into a compromise.
Summary
The appellants, operating as M/s Alagu Pharmacy, claimed tenancy of a premises based on a lease dated 22‑02‑2012, which the respondent landlord alleged was forged and lodged a police complaint. A compromise was entered on 29‑01‑2014, before the landlord filed an eviction petition under the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. The Rent Controller, relying on the compromise, ordered the appellants to vacate by 31‑10‑2015. The appellants appealed the decree after a 604‑day delay; the appellate court condoned the delay, but the High Court reversed that order. The Supreme Court held that eviction cannot be ordered unless a statutory ground under the Rent Act is established, even if a compromise exists, and that the appellate court’s decision was correct. Consequently, the appeals were allowed and the appellate order restored, with costs imposed on the appellants.
Issues considered
- Whether an eviction order can be validly passed on the basis of a compromise when no statutory ground for eviction under the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 is established.
- Whether the 604‑day delay in filing the appeal can be condoned, especially where the compromise may have been obtained under police pressure.
Legislation cited
- Tamil Nadu Buildings (Lease and Rent Control) Act, 1960s. 10(2)(ii)(a), s. 10(3)(c)
Subjects
evictionrent controllease agreementcompromisepolice pressurestatutory groundTamil Nadu Buildings (Lease and Rent Control) Actcondonation of delaylandlord-tenant relationship
Judgment
[2018] 9 S.C.R. 1069 1069
M/S ALAGU PHARMACY & ORS. A
v.
N. MAGUDESWARI
(Civil Appeal Nos. 8256-8257 of 2018)
AUGUST 14, 2018 B
[ABHAY MANOHAR SAPRE AND
UDAY UMESH LALIT, JJ.]
Rent Control and Eviction:
Eviction petition – Appellant claiming to be tenant of C
respondent on the strength of a Lease Agreement – Respondent-
landlord lodged complaint with police against appellant alleging
that the Lease Agreement was forged – Pursuant to suit by appellant
for permanent injunction against respondent, compromise entered
into between parties, before the police – Thereafter eviction petition
D
by respondent – Rent Controller decreed the eviction petition relying
on compromise decree between the parties – Compromise decree
challenged by the tenant,, in appeal – There was 604 days delay in
filing the appeal – Appellate Court condoned the delay – Revision
petition of respondent allowed by High Court disallowing
condonation of delay – Review petition dismissed – On appeal, held: E
Eviction of a tenant cannot be ordered, unless and until ground
seeking eviction in terms of the concerned Rent Act is made out,
even if parties entered into compromise – Validity on that count can
even be raised in execution – In the present case, the complaint
proceeded on the premise that the lease deed was forged and there
F
was no relationship of landlord-tenant between the parties – Thus,
ground under the provision of the Rent Act was not made out – The
assertion of appellants that pressure was exerted through the police
to enter the compromise is prima facie acceptable – Tamil Nadu
Buildings (Lease and Rent Control) Act, 1960 – s. 10(2)(ii)(a) and
10(3)(c) – Compromise. G
Allowing the appeals, the Court
HELD: 1. The order passed by the appellate court shows
that compromise Exh.P-11 was brought about on 29.01.2014 that
is even before the eviction petition was filed by the respondent.
H
1069
1070 SUPREME COURT REPORTS [2018] 9 S.C.R.
A Further, said compromise Exh.P-11 was addressed to the
Inspector of Police, City Crime Branch. The appellate court had
further observed that complaint Exh.P-10 and compromise Exh.P-
11 were not disputed by the respondent and no document in
rebuttal was filed. The complaint (Exh.P-10) proceeds on a
premise that the lease deed dated 22.02.2012 was a forged
B
document and there was no relationship of landlord-tenant
between the parties. Yet an eviction petition was filed, seeking
eviction of the appellants under the concerned Rent Act. There
is an inherent contradiction in the stand adopted by the
Respondent. In the circumstances, the assertion made by the
C appellants that pressure was exerted through the police and they
were compelled to enter into compromise is prima facie
acceptable. [Para 10] [1076-A-C]
Ajad Singh v. Chatra and Others (2005) 2 SCC 567 –
relied on.
D 2. It is true that there was a delay of 604 days in filing the
appeal, but in cases where there is reasonable doubt that police
may have forced a party to enter into compromise, the process of
Court ought to weigh in favour of a party who alleges to be victim
of such pressure. The order passed by the High Court does not
E even deal with this aspect nor was any submission made that the
assessment made by the appellate court was in any way incorrect
or imperfect. [Para 10] [1076-D-E]
3. The eviction in terms of s. 10(2)(ii)(a) of Tamil Nadu
Buildings (Lease and Rent Control) Act, 1960 can be ordered
F only if the concerned Rent Controller or Court is satisfied that
the ground seeking eviction is made out. Unless and until ground
seeking eviction in terms of the concerned Rent Act is not made
out, no eviction of a tenant can be ordered, even if the parties
had entered into a compromise. Thus in cases where protection
under a Rent Act is available, no eviction can be ordered unless
G ground seeking eviction is made out, even if parties had entered
into a compromise. Moreover, the invalidity on that count can
even be raised in execution. In the present case, the order dated
28.03.2014 did not remotely note that any particular ground under
the Rent Act was made out. [Paras 12 and 14] [1082-C-D; 1077-
H D]
M/S ALAGU PHARMACY & ORS. v. N. MAGUDESWARI 1071
K. K. Chari v. R.M. Seshadri (1973) 1 SCC 761 : [1973] A
3 SCR 691; Nagindas Ramdas v. Dalpatram Ichharam
alias Brijram and Others (1974) 1 SCC 242 : [1974] 2
SCR 544 – relied on.
Case Law Reference
(2005) 2 SCC 567 relied on Para 10 B
[1973] 3 SCR 691 relied on Para 12
[1974] 2 SCR 544 relied on Para 13
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 8256-
8257 of 2018. C
From the Judgment and Order dated 29.03.2016 and 02.12.2016
of the High Court of Judicature at Madras, Bench at Madurai in C.R.P.
(NPD) No. 586 of 2016 and Review Petition No. 89 of 2016 in C.R.P.
(NPD) No. 586 of 2016 respectively.
D
Ratnakar Dash, Sr. Adv., G. Sivabalamurugan, Karuppiah, Vasantha
Kumar, Ms. Vandana, Advs. for the appellants.
S. Thananjayan, Adv. for the respondent.
The Judgment of the Court was delivered by
UDAY UMESH LALIT, J. 1. Leave granted. E
2. This appeal is directed against the final judgment and order
dated 29.03.2016 in Civil Revision Petition (NPD) No.586 of 2016 as
well as against the order dated 02.12.2016 in Review Petition No.89 of
2016 in said Civil Revision Petition (NPD) No.586 of 2016 passed by
the High Court of Judicature at Madras, Bench at Madurai. F
3. The appellants 2 to 4 are doing business in the name and style
of M/s Alagu Pharmacy i.e. the appellant No.1. The appellants claim to
be tenants in the suit property owned by the respondent herein since
1998. On or about 22.02.2012 a lease agreement was entered into,
which according to the appellants was signed by the respondent, G
extending/renewing the period of lease. On 13.11.2013 and 07.12.2013
the respondent had issued legal notices calling upon the appellants to
vacate the suit property alleging inter alia that the lease agreement dated
22.02.2012 was not signed by the respondent and was a forged document,
to which reply was given by the appellants on 17.01.2014. On 17.01.2014
H
1072 SUPREME COURT REPORTS [2018] 9 S.C.R.
A itself a complaint (Exh.P-10) was lodged by the respondent alleging
commission of forgery. According to the appellants, on 20.01.2014 the
respondent alongwith her husband and some henchmen tried to evict the
appellants which attempt was successfully resisted by the appellants.
In the circumstances, O.S. No.135 of 2014 was filed by the appellants
on 21.01.2014 seeking relief of permanent injunction against the
B
respondent from interfering with their peaceful possession and enjoyment
of the suit property save and except by due process of law. After hearing
the appellants, an ad interim injunction was granted by the District Munsif,
Coimbatore.
4. It appears that on 29.01.2014 a compromise (Exh.P-11) was
C entered into between the appellants and the respondent. It is the case of
the appellants that they were summoned to the police station in connection
with the complaint lodged by the respondent (Exh.P-10) and under the
pressure employed by the police, said Exh. P-11 was entered into. Soon
thereafter an Eviction Petition i.e. R.C.O.P. No.29 of 2014 was filed by
D the respondent before the Principal Rent Controller-cum-District Munsif,
Coimbatore for eviction of the appellants. It is the case of the appellant
that they were again asked to appear before the police on 27.03.2014
and under the pressure exerted by the police a compromise deed was
entered into under which the appellants agreed to vacate the suit property.
Said compromise deed was presented before the Court on 28.03.2014
E and following order was passed by the Rent Controller and Principal
District Munsif, Coimbatore:
“Petition dated 08.02.2014 filed under Section 10(2)(ii)(a),
10(3)(c) of Tamil Nadu Buildings (Lease and Rent Control) Act,
1960 and the petitioner filed this petition against the respondents
F to vacate the premises and to deliver the vacant possession of
the petition mentioned property more fully described hereunder
in the schedule and cost of this petition.
This petition coming on this day for hearing before me in the
presence of Thiru. M. Sanjaiyan, Advocate for petitioner and of Thiru.
G Somasundaram, Advocate for respondent. Both parties filed compromise
memo and both parties present and this day this Court doth order direct
as follows:
1. That the respondents be and are hereby granted time upto
31.10.2015 to vacate the petition mentioned property and to
H
M/S ALAGU PHARMACY & ORS. v. N. MAGUDESWARI 1073
[UDAY UMESH LALIT, J.]
handover the vacant possession of the same to the petitioner/ A
landlord and
2. That the respondents are hereby directed to pay the present
monthly rent of Rs.19080/- pm to the petitioner/landlord till the
date of delivery of possession of the property (i.e. upto
31.10.2015) by way of cheque; and B
3. That in case of default to do so by the respondents, the petitioners
are entitled to take appropriate action through court of law against
the respondents.
4. The compromise petition do form part of this final order, and
C
5. That there be no order as to cost.”
5. On 07.10.2015, a letter was sent by the respondent calling
upon the appellants to vacate the premises by 31.10.2015 in terms of the
aforesaid compromise decree. On 07.12.2015, an appeal being R.C.A.
(CFR) No.31591 of 2015 was filed by the appellants before the Principal D
Subordinate Judge, Coimbatore against the aforesaid compromise decree
dated 28.03.2014. Along with said appeal IA No.465 of 2015 was also
preferred seeking condonation of delay of 604 days in filing said appeal.
6. The respondent having contested the matter, said IA No.465
of 2015 was taken up for consideration by the appellate court. It was
E
submitted on behalf of the appellants that they were pressurized into
signing the compromise deed and said compromise was brought about
because of pressure exerted by the police. Reliance was placed on
complaint Exh.P-10 by the respondent and compromise letter Exh.P-11
dated 29.01.2014. On the other hand, it was submitted on behalf of the
respondent that there were numerous occasions for the appellants to F
raise a grievance that the compromise in question was brought about by
coercion and yet no such objection was ever raised. It was, therefore,
submitted that the delay of 604 days in preferring the appeal ought not to
be condoned.
7. The appellate court by its Order dated 19.01.2016 accepted G
said IA No.465 of 2015 and condoned the delay subject to payment of
Rs.2000/- by the appellants to the respondent. It was observed by the
appellate court as under:
“8. The main contention of the respondent is compromise made
before the trial court with free will and now the respondent is H
1074 SUPREME COURT REPORTS [2018] 9 S.C.R.
A tried to drag on the matter and preventing the respondent from
enjoying the fruit source of the compromise decree. On the side
of respondent Ex.R1 and R4 marked. Ex.R1 compromise memo;
R2 document for already received the certified copy of fair and
final order; R3 letter from the respondent to the petitioner; R4
postal acknowledgement. On perusal of respondent side
B
documents to disprove the facts of Ex.P-10 and Ex.P-11 no
documents have been filed. The landlord-tenant relationship is
admitted. The allegations made by the respondent against the
petitioners is lease deed dated 22.02.2012 is forged one and
complaint has been given to the police regarding the forged
C documents and the petitioners themselves come to the agreement
they are undertake to vacate the petition mentioned property,
there is no police threat or complaint or coercion by the police or
by the respondent. In order to consider the documents filed by
the petitioners Ex.P-10 is the police complaint, prepared by the
respondent Magudeswari against the 2 nd petitioner/appellant. In
D
the complaint the allegations made against the 2nd petitioner is
that there is life threat to the respondents and the lease deed has
been created by the 2nd petitioner by forging the signature of the
respondent and requesting the police to take proper legal action
against the 2nd petitioner. Once the written complaint filed before
E the police mentioning the name of the accused, if the police
finds it is true for that police have to register FIR against the
accused and proceed with the investigation as per law. But on
perusing of Exh.P-11 compromise letter dated 29.01.2014
between the respondent and the 2nd petitioner addressing to the
inspector of police, City Crime Branch. In continuation the RCOP
F
has been filed and memo of compromise filed, compromise decree
has been passed. As stated above the duty of the police is only
to register the case against the accused and proceed against the
accused for the offence committed for the crime, they are not
entitled to make any compromise against the crime unless and
G until it is provided by law and further before when compromise
arrived at court, the previous compromise has been arrived at
police station. From Ex.P-11 itself there arises suspicion whether
the petitioner has put into any force or any threat to make the
compromise before the court. Hence from the above discussions
H
M/S ALAGU PHARMACY & ORS. v. N. MAGUDESWARI 1075
[UDAY UMESH LALIT, J.]
there is a police force with regard to file the compromise regarding A
RCOP 29/14 and previously compromise letter has been arrived
before the police. Hence there is a suspicion arises petitioner
must be put into any threat or coercion at the time of filing the
compromise memo in RCOP and now the petitioner filed the
petition to condone the delay of 604 days. Hence from the above
B
discussions it is clear the petitioners have explained the delay of
604 days in filing the appeal and the explanation submitted by
the petitioners is acceptable one.”
8. The aforesaid order was challenged by the respondent by
preferring Civil Revision Petition before the High Court of Judicature at
Madras which Revision Petition was allowed by the High Court vide its C
orders dated 29.03.2016. It was observed by the High Court as under:
“5. There are two courses open to the tenants. One is that
the tenants would have stated before the Court which recorded
the compromise that the compromise was out of compulsion or
coercion on the part of the police during enquiry of the complaint D
preferred by the landlady. In that case, the Court which recorded
the compromise would have dealt with that issue. That is not
the case here. When that is not the case, it is far fetched for the
appellate court to come to a conclusion that the tenants might
have been put into coercion or force before entering into the E
compromise. It is equally probable that in order to get the closure
of complaint, the tenants would have opted to enter into a
compromise and thereafter, the tenants are put forth an allegation
of invalidity of compromise. Even if the tenants had some
difficulty in expressing themselves before the trial court, the
appeal would have been filed immediately after the compromise F
decree, if there had been any vitiating factors while entering into
the compromise. But, the appeal had not been filed in time.
Therefore, the conduct of the tenants would only indicate the
procrastinating approach in dealing with their case.”
9. The appellants preferred a review petition which was rejected G
by the High Court on 02.12.2016. This appeal challenges the correctness
of both the orders passed by the High Court. We heard Mr. Ratnakar
Dash, learned Senior Advocate for the appellants and Mr. S. Thananjayan,
learned Advocate appearing for the respondent.
H
1076 SUPREME COURT REPORTS [2018] 9 S.C.R.
A 10. The order passed by the appellate court shows that compromise
Exh.P-11 was brought about on 29.01.2014 that is even before the eviction
petition was filed by the respondent. Further, said compromise Exh.P-
11 was addressed to the Inspector of Police, City Crime Branch. The
appellate court had further observed that complaint Exh.P-10 and
compromise Exh.P-11 were not disputed by the respondent and no
B
document in rebuttal was filed. The complaint (Exh.P-10) proceeds on
a premise that the lease deed dated 22.02.2012 was a forged document
and there was no relationship of landlord-tenant between the parties.
Yet an eviction petition was filed, seeking eviction of the appellants under
the concerned Rent Act. There is an inherent contradiction in the stand
C adopted by the Respondent. In the circumstances, the assertion made
by the appellants that pressure was exerted through the police and they
were compelled to enter into compromise is prima facie acceptable. In
Ajad Singh v. Chatra and Others1, compromise recorded in Police
Station inter alia was not found to be acceptable by this Court and the
matter was remanded. It was observed, “…..the appellate court ought
D
to have taken note of the fact that the said compromise was recorded in
the Police Station and during the pendency of the suit.” It is true that
there was a delay of 604 days in filing the appeal, but in cases where
there is reasonable doubt that police may have forced a party to enter
into compromise, the process of Court ought to weigh in favour of a
E party who alleges to be victim of such pressure. It may be pertinent to
note that the order passed by the High Court does not even deal with
this aspect nor was any submission made that the assessment made by
the appellate court was in any way incorrect or imperfect.
11. Further, eviction petition was filed seeking eviction of the
F appellants under Section 10(2)(ii)(a), 10(3)(c) of Tamil Nadu Buildings
(Lease and Rent Control) Act, 1960. Said Sections are as under:
“10(2) A landlord who seeks to evict his tenant shall apply to the
Controller for a direction in that behalf. If the Controller, after
giving the tenant a reasonable opportunity of showing cause
G against the application, is satisfied-
…….
(ii) that the tenant has after the 23rd October 1945 without the
written consent of the landlord-
1
H (2005) 2 SCC 567 (para 8)
M/S ALAGU PHARMACY & ORS. v. N. MAGUDESWARI 1077
[UDAY UMESH LALIT, J.]
(a) transferred his right under the lease or sublet the entire A
building or any portion thereof, if the lease does not confer on
him any right to do so, or
…..
.….
B
(3) …….
(c) A landlord who is occupying only a part of a building, whether
residential or non-residential, may, notwithstanding anything
contained in clause (a), apply to the Controller for an order
directing any tenant occupying the whole or any portion of the C
remaining part of the building to put the landlord in possession
thereof, if he requires additional accommodation for residential
purposes or for purposes of a business which he is carrying
on, as the case may be.”
12. The eviction in terms of the aforesaid provisions can be ordered D
only if the concerned Rent Controller or Court is satisfied that the ground
seeking eviction is made out. It has been held by this Court that unless
and until ground seeking eviction in terms of the concerned Rent Act is
not made out, no eviction of a tenant can be ordered, even if the parties
had entered into a compromise. For example, in K.K. Chari v. R.M.
Seshadri2 this Court considered its earlier decisions in three cases as E
under:-
“20. There are three decisions of this Court which require to be
considered. In Bahadur Singh v. Muni Subrat Dass3 a decree
for eviction passed on the basis of a compromise between the
parties, was held, by this Court, to be a nullity as contravening F
Section 13(1) of the Delhi and Ajmer Rent Control Act, 1952.
The facts therein were as follows:
“The tenant and the son of the landlord referred the disputes
between them to arbitration. The landlord was not a party to
this agreement. The arbitrators passed an award whereunder G
the tenant was to give vacant possession of the premises in
favour of the landlord within a particular time. This award was
made a decree of court. The landlord, who was neither a party
2
(1973) 1 SCC 761
3
(1969) 2 SCR 432 H
1078 SUPREME COURT REPORTS [2018] 9 S.C.R.
A to the award nor to the proceedings, which resulted in the award
being made a decree of court, applied for eviction of the tenant
on the basis of the award. The tenant resisted execution by
raising various objections under Section 47 of the Code of Civil
Procedure. One of the objections was that the decree for
eviction based upon the award was a nullity as being opposed
B
to the Delhi and Ajmer Rent Control Act, 1952. This Court
held that the decree directing the tenant to deliver possession
of the premises to the landlord was a nullity, as it was passed
in contravention of Section 13(1) of the relevant statute. After
quoting the sub-section, this Court further held that the decree
C for eviction passed according to an award, in a proceeding to
which the landlord was not a party and without the court
satisfying itself that a statutory ground of eviction existed, was
a nullity and cannot be enforced in execution. It will be seen
from this decision that the decree was held to be a nullity
because the landlord was not a party thereto, and also because
D
the court had not satisfied itself that a ground for eviction, as
required by the statute, existed. This decision is certainly an
authority for the proposition that a court ordering eviction has
to satisfy itself that a statutory ground of eviction has been
made out by a landlord. How exactly that satisfaction is to be
E expressed by the court or gathered from the materials, has not
been laid down in this decision, as this court was not faced
with such a problem.”
21. In Kaushalya Devi v. Shri K.L. Bansal4 the question again
rose under the same Delhi statute regarding the validity of a
F decree passed for eviction on compromise. The plaintiff therein
filed a suit for eviction of the tenant on two grounds—
(a) the premises were required for their own use; and
(b)the tenant had committed default in payment of rent.
G 22. The tenant filed a written statement denying both these
allegations. He disputed the claim of the landlord regarding his
requiring the premises for his own use bona fide and also the
fact of his being in arrears. When the pleadings of the landlord
and the tenant were in this state, both parties filed a compromise
4
H (1969) 1 SCC 59
M/S ALAGU PHARMACY & ORS. v. N. MAGUDESWARI 1079
[UDAY UMESH LALIT, J.]
memo in and by which they agreed to the passing of a decree of A
eviction against the tenant. Representations to the same effect
were also made by the counsel for both parties. The court passed
the following order:
“In view of the statement of the parties’ counsel and the written
compromise, a decree is passed in favour of the plaintiff against B
the defendant.”
The tenant did not vacate the premises within the time
mentioned as per the compromise memo. On the other hand,
he filed an application under Section 47 of the Civil Procedure
Code pleading that the decree is void as being in contravention C
of Section 13 of the Delhi statute. The High Court held that
the decree was a nullity, as the order was passed solely on the
basis of the compromise without indicating that any of the
statutory grounds mentioned in Section 13 existed. Following
the decision in Bahadur Singh this Court upheld the order of
the High Court. Here again, it will be seen that the manner in D
which the court’s satisfaction is to be expressed or gathered
has not been dealt with.
23. A similar question came up again before this Court in Ferozi
Lal Jain v. Man Mal5. The landlord filed an application for
eviction of the tenant on the ground that he had sublet the premises E
without obtaining his consent in writing. Subletting, without the
consent of the landlord in writing, was one of the grounds, under
Section 13(1) of the Delhi statute entitling a landlord to ask for
eviction. The tenant denied the allegation that he had sublet the
premises. Both the landlord and the tenant entered into a F
compromise and the court, after recording the same, passed the
following order:
“As per compromise, decree for ejectment and for Rs 165
with proportionate costs is passed in favour of the plaintiff and
against the defendant. The parties shall be bound by the terms G
of the compromise. The terms of the compromise be
incorporated in the decree-sheet....”
24. As the tenant did not surrender possession of the properties
within the time mentioned in the compromise memo, the landlord
5
(1970) 3 SCC 181 H
1080 SUPREME COURT REPORTS [2018] 9 S.C.R.
A levied execution. It was resisted by the tenant on various grounds
one of which was that the decree for eviction was a nullity, being
in contravention of Section 13 of the Delhi Statute. This
contention was accepted by the execution court, as well as by
the High Court. This Court, after a reference to the provisions
of Section 13, held that a decree for recovery of possession can
B
be passed only if the court concerned is satisfied that one or
other of the grounds mentioned in the section is established. This
Court, further observed:
“From the facts mentioned earlier, it is seen that at no stage,
the Court was called upon to apply its mind to the question
C whether the alleged subletting is true or not. Order made by it
does not show that it was satisfied that the subletting complained
of has taken place, nor is there any other material on record to
show that it was so satisfied. It is clear from the record that
the court had proceeded solely on the basis of the compromise
D arrived at between the parties. That being so there can be
hardly any doubt that the court was not competent to pass the
impugned decree. Hence the decree under execution must be
held to be a nullity.”
13. In Nagindas Ramdas v. Dalpatram Ichharam alias
E Brijram and Others6 it was stated:-
“17. It will thus be seen that the Delhi Rent Act and the
Madras Rent Act expressly forbid the Rent Court or the Tribunal
from passing a decree or order of eviction on a ground which is
not any of the grounds mentioned in the relevant Sections of
F those statutes. Nevertheless, such a prohibitory mandate to the
Rent Court that it shall not travel beyond the statutory grounds
mentioned in Sections 12 and 13, and to the parties that they
shall not contract out of those statutory grounds, is inherent in
the public policy built into the statute (Bombay Rent Act).
G 18. In Rasiklal Chunilal case, a Division Bench of the Gujarat
High Court has taken the view that in spite of the fact that there
is no express provision in the Bombay Rent Act prohibiting
contracting out, such a prohibition would have to be read by
implication consistently with the public policy underlying this
6
H (1974) 1 SCC 242
M/S ALAGU PHARMACY & ORS. v. N. MAGUDESWARI 1081
[UDAY UMESH LALIT, J.]
welfare measure. If we may say so with respect, this is a correct A
approach to the problem.
19. Construing the provisions of Sections 12, 13 and 28 of the
Bombay Rent Act in the light of the public policy which permeates
the entire scheme and structure of the Act, there is no escape
from the conclusion that the Rent Court under this Act is not B
competent to pass a decree for possession either in invitum or
with the consent of the parties on a ground which is de hors the
Act or ultra vires the Act. The existence of one of the statutory
grounds mentioned in Sections 12 and 13 is a sine qua non to
the exercise of jurisdiction by the Rent Court under these
provisions. Even parties cannot by their consent confer such C
jurisdiction on the Rent Court to do something which, according
to the legislative mandate, it could not do.
….
22. The mere fact that Order 23 Rule 3, of the Code of Civil D
Procedure is applicable to the proceedings in a suit under the
Bombay Rent Act, does not remove that fetter on the Rent Court
or empower it to make a decree for eviction de hors the statute.
Even under that provision of the Code, the Court, before ordering
that the compromise be recorded, is required to satisfy itself
about the lawfulness of the agreement. Such lawfulness or E
otherwise of the agreement is to be judged, also on the ground
whether the terms of the compromise are consistent with the
provisions of the Rent Act.
….
F
27. From a conspectus of the cases cited at the bar, the principle
that emerges is, that if at the time of the passing of the decree,
there was some material before the Court, on the basis of which,
the Court could be prima facie satisfied, about the existence of
a statutory ground for eviction, it will be presumed that the Court
was so satisfied and the decree for eviction though apparently G
passed on the basis of a compromise, would be valid. Such
material may take the shape either of evidence recorded or
produced in the case, or, it may partly or wholly be in the shape
of an express or implied admission made in the compromise
agreement, itself. Admissions, if true and clear, are by far the
H
1082 SUPREME COURT REPORTS [2018] 9 S.C.R.
A best proof of the facts admitted. Admissions in pleadings or judicial
admissions, admissible under Section 58 of the Evidence Act,
made by the parties or their agents at or before the hearing of
the case, stand on a higher footing than evidentiary admissions.
The former class of admissions are fully binding on the party
that makes them and constitute a waiver of proof. They by
B
themselves can be made the foundation of the rights of the
parties. On the other hand, evidentiary admissions which are
receivable at the trial as evidence, are by themselves, not
conclusive. They can be shown to be wrong.”
14. The common thread that runs through the aforesaid
C pronouncements of this Court is – in cases where protection under a
Rent Act is available, no eviction can be ordered unless ground seeking
eviction is made out, even if parties had entered into a compromise.
Moreover, the invalidity on that count can even be raised in execution.
In the present case, the order dated 28.03.2014 did not remotely note
D that any particular ground under the Rent Act was made out.
15. In the circumstances, in our considered view, the order passed
by the appellate court was absolutely correct and did not call for any
interference on part of the High Court. We, therefore, allow the present
appeals and restore the order dated 19.01.2016 passed by the appellate
E court in IA No.465 of 2015. The appeal shall now be heard on merits
and disposed of in accordance with law. Since there was delay of more
than 600 days on part of the appellants, we direct that the appellants
shall pay costs of Rs.50,000/- to the respondent which shall be over and
above that already imposed by the appellant court and shall be made
over within six weeks from this Judgment. The appeals stand allowed in
F the aforesaid terms.
Kalpana K. Tripathy Appeals allowed.
G
H
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