SHRI SURENDRA KUMAR JAINversusSHRI SHANTI SWAROOP JAIN AND ORS.
- Citation
- 1995 INSC 409
- Decided
- 24 July 1995
- Disposal
- Disposed off
- Bench
- G N RAYS B MAJMUDAR
Holding
The deemed date of construction is the earliest of the dates specified in Explanation (a); thus the notice for assessment dated 15‑11‑1977 is the deemed construction date.
Summary
The appeal concerned the determination of the earliest deemed date of construction under Explanation (a) of Section 2(2) of the U.P. Urban Building (Regulation of Letting Rent and Eviction) Act, 1972. The Supreme Court held that the deemed construction date is the earliest of (i) the date the local authority records the completion, (ii) the date the first assessment comes into effect, and (iii) the date of actual occupation. In the present case, the Municipal Authority gave notice for assessment on 15‑11‑1977, which is earlier than the assessment made in 1981, and therefore that notice date is the deemed construction date. The High Court had erred by relying only on the 1981 assessment date. Consequently, the Supreme Court set aside the High Court’s decision, stayed eviction, and remitted the matter back to the High Court for fresh determination within four months.
Issues considered
- Which date constitutes the earliest deemed date of construction under Explanation (a) of Section 2(2) of the U.P. Urban Building (Regulation of Letting Rent and Eviction) Act, 1972?
- Can the date of notice for assessment be treated as the deemed construction date when it precedes the assessment date?
Legislation cited
Subjects
Judgment
A SHRI SURENDRA KUMAR JAIN
v
SHRI SHANTI SWAROOP JAIN AND ORS.
JULY 24, 1995
B [G.N. RAY AND S.B. MAJMUDAR, JJ.]
U.P. Urban Building (Regulation of Letting Rent and Eviction) Act,
1972: Section 2(2)-Explanation l(a)-E,arliest dated of deemed constrnc-
tion-Detennination of
c
In this appeal the question that arose for consideration was as to
which would be the earliest date of deemed construction in terms of
Explanation l(e) of Sub-section (2) of 5.2 of the U.P. Urban Building
(Regulation of Letting Rent and Eviction) Act, 1972.
D Disposing of the appeal, this Court
HELD : 1. In terms of Explanation l(a) S.2(2) of the U.P. Urban
Building (Regulation of Letting Rent and Eviction) Act, 1972, the construc-
tion is deemed to have been completed on the date on which the completion
E thereof is reported to or otherwise recorded by the local authority having
jurisdiction if· such reporting or recording happens to be on the earliest
point of time vis-a-vis various dates referred to therein. Since that date is
the earliest of the dates as referred to in the Explanation l(a), the date of
giving notice for assessment becomes relevant for the purpose of consider-
ing deemed date of construction. It does not appear that such considera-
F tion has been made by the High Court in deciding the case. The High Court
has proceeded on the footing only on the basis of the assessment effected
• in 1981. (305-F, H, 306-A-B]
Om Prakash Gupta Etc. Etc. v. DIG Vijendrapal Gupta Etc. Etc.,
G (19821 2 sec 61, distinguished.
2. The impugned decision of the High Court is set aside and remitted
back to the High Court for disposal on merits in the light of the present
discussion, preferably within a period of four months. The High Court will
de~ide as to which is the earliest date of deemed construction in terms of
H Explanation l(a) sub-section (2) of Section 2 of the said Act for the
304
S.K. JAIN v. S.S. JAIN 305
purpose of deciding the dispute involved in the case. Until the matter is A
disposed of by the High Court, there will be stay of eviction from the
disputed premises. (306-D-E]
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6546 of
1995.
B
From the Judgment and Order dated 23.1.95 of the Allahabad High
Court in C.M.W.P. No. 1558 of 1995.
Dr. AM Singhvi and Rakesh K. Sharma for the Appellants.
Kapil Sibbal, K.B. Rohtagi, Ms. Aparna Rohtagi, Praveen Jain and C
P.K. Jain, for the Respondents.
The following Order of the Court was delivered : '
Leave granted.
D
Resi'ondent No. 1 has already entered appearance. Notice of the
appeal need not be served on respondent Nos. 2 and 3 who are formal
parties and such notice on them is dispensed with.
Heard learned counsel for the parties. It appears to us that for the
E
purpose of deciding the date of construction it is necessary to refer to
Explanation 1 (a) of Section 2(2) of the U.P. Urban Building (Regulation
of Letting Rent and Eviction) Act 1972. In the Explanation to the said
Section it has been indicated that the construction of a building shall be
deemed to have been completed on the date on which completion thereof
is reported to or otherwise recorded by local authority having jurisdiction F
and in the case of building subject to a'ssessment, the date on which the
first assessment thereof comes into effect and where the said dates are
different, the earliest of the said dates and in the absence of any such
report record or assessment, the date on which it is actually occupied not
merely for the purpose of supervising the construction or granting the G
building under constitution) for the first time.
It, therefore, appears that in terms of Explanation 1 (a) the construc-
tion is deemed to have been completed on the date on which the comple-
tion thereof is reported to or otherwise recorded by the local authority
having jurisdiction if such reporting or recording happens to be on the H
306 SUPREME COURT REPORTS [1995) SUPP. 2 S.C.R.
A earliest point of time vis-a-vis various dates referred to hereinbefore. It is
contended that in the instant case, the Municipal Authority having given
notice for assessment on 15.11.77, such date should be held to be the date
when the Municipal Authority had already taken note of the construction
of the building. Since that date is the earliest of the dates as referred to in
the Explanation l(a), that date becomes relevant for the purpose of con-
B sidering deemed date of construction. It does not appear that such con-
sideration has been made by the High Court in deciding the case. The High
Court has proceeded on the footing only on the basis of the assessment
effected in 1981. The learned counsel for the respondent has relied on a
decision of this Court in Om Prakash Gupta Etc. Etc. v. DIG Vijenerpal
c Gupta Etc. Etc., [1982) 2 SCC 61. But it appears to us that in that case,
was no question of Municipal Authority having taken note of construction
on an earlier date for the purpose of giving notice for assessment. Hence,
that decision is not applicable for the purpose of deciding the issue raised
in the case. We, therefore, set aside the impugned decision of the High
D Court and remit the case back to the High Court for disposal on merits in
the light of above discussion preferably within a period of four months from
the date of receipt of the order of this Court. The High Court will decide
as to which is the earliest date of deemed construction in terms of date
Explanation 1 (a) of sub-section 2 of section 2 of the said Act for the
purpose of deciding the dispute involved in the case, Until the matter is
E disposed of by the High Court, there will be stay of eviction from the
disputed premises.
The appeal is accordingly disposed or without any order as to costs.
G.N. Appeal disposed of.
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