Supreme Court Allows Landlord's Eviction Suit in Rajasthan Rent Act Case — Limitation Bar Under Section 14(3) Does Not Apply Where Tenancy Predates Purchase by Landlord. The Court held that the bar under Section 14(3) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950 is not absolute and can be waived, and the relevant date for computing the five-year period is the date of original letting, not the date of purchase by the landlord.

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Case Note & Summary

The case involves a landlord-tenant dispute over a shop in Jaipur. The appellant, Ravi Khandelwal, purchased the property on 30.01.1985 from its erstwhile owner, M/s Jaipur Metal Electric Co. At the time of purchase, the respondent, M/s Taluka Stores, was already a tenant. The appellant filed a suit for eviction on grounds of bona fide necessity on 21.05.1985 before the Additional Civil Judge-I, Jaipur. The trial court dismissed the suit on 30.10.2002, holding that the plaint was not laid in accordance with Section 14(3) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950, which bars the filing of a suit for eviction within five years from the date of letting. The trial court found that the premises were leased only on 08.06.1982 by the predecessor-in-interest. The appellant succeeded in the first appeal before the Additional District Judge, Jaipur, on 18.03.2004, based on the respondent's admission that he had initially leased the shop from one Udai Lal in 1958, thus the suit was not barred. The respondent then filed a second appeal before the Rajasthan High Court. A learned Single Judge framed a preliminary question of maintainability due to conflicting views on the interpretation of Section 14(3) and referred the matter to a Larger Bench. The Division Bench, by judgment dated 20.04.2020, held that Section 14(3) creates a complete bar to the filing of the suit within five years of the tenancy, agreeing with the view in Ashok Kumar v. Suresh Chand and Kahtoon Begum v. Bhagwan Das, and disagreeing with the view in Late Mahadev v. Babu Lal and M/s Vadhumal Kanhaiyalal v. Hemchand. The appellant appealed to the Supreme Court. The Supreme Court allowed the appeal, holding that the bar under Section 14(3) is not absolute and can be waived by the tenant. The Court noted that the respondent had admitted to being a tenant since 1958, and thus the suit filed in 1985 was not within five years of the original letting. The Court set aside the High Court's judgment and restored the first appellate court's decree of eviction.

Headnote

A) Rent Control - Eviction Suit - Limitation under Section 14(3) - Rajasthan Premises (Control of Rent and Eviction) Act, 1950, Section 14(3) - The provision creates a complete bar to the institution of a suit for eviction within five years from the date of letting, but the bar is not absolute and can be waived by the tenant. The relevant date for computing the five-year period is the date of original letting, not the date of purchase by the landlord. (Paras 6-10)

B) Rent Control - Eviction Suit - Admission of Tenant - Rajasthan Premises (Control of Rent and Eviction) Act, 1950, Section 14(3) - The tenant's admission that he had initially leased the shop in 1958 can be used to rebut the claim that the premises were let on 08.06.1982, and thus the suit filed in 1985 is not barred by limitation. (Paras 3-4)

C) Rent Control - Eviction Suit - Second Appeal - Maintainability - Rajasthan Premises (Control of Rent and Eviction) Act, 1950, Section 22 - Section 22 proscribes filing of second appeal from a decree under the Act, but does not prohibit second appeals from suits for eviction filed before an ordinary court of competent jurisdiction. (Para 5)

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Issue of Consideration

Whether the limitation of five years specified in Section 14(3) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950 bars the institution of the suit itself or only the consideration of the suit and passing of a decree therein.

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Final Decision

The Supreme Court allowed the appeal, set aside the judgment of the Rajasthan High Court dated 20.04.2020, and restored the judgment of the first appellate court dated 18.03.2004 decreeing eviction. The Court held that the bar under Section 14(3) is not absolute and can be waived, and that the suit was not barred as the tenancy commenced in 1958.

Law Points

  • Section 14(3) of Rajasthan Premises (Control of Rent and Eviction) Act
  • 1950 bars institution of suit for eviction within five years of letting
  • but the bar is not absolute and can be waived
  • the relevant date for computing five-year period is the date of original letting
  • not subsequent purchase by landlord
  • admission of tenant regarding earlier tenancy can be used to rebut claim of fresh letting.
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Case Details

2023 INSC 615

Civil Appeal No. 4364 of 2023 (Arising out of SLP(C) No.9434/2020)

2023-05-05

Sanjay Kishan Kaul

2023 INSC 615

Ravi Khandelwal

M/s. Taluka Stores

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Nature of Litigation

Civil appeal against the judgment of the Rajasthan High Court in a second appeal arising from a suit for eviction on grounds of bona fide necessity.

Remedy Sought

The appellant (landlord) sought eviction of the respondent (tenant) from a shop in Jaipur.

Filing Reason

The appellant purchased the property on 30.01.1985 and filed a suit for eviction on 21.05.1985 on grounds of bona fide necessity.

Previous Decisions

The trial court dismissed the suit on 30.10.2002 holding it barred by Section 14(3) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950. The first appellate court allowed the appeal on 18.03.2004. The High Court in second appeal held that Section 14(3) creates a complete bar to the filing of the suit.

Issues

Whether the limitation of five years specified in Section 14(3) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950 bars the institution of the suit itself or only the consideration of the suit and passing of a decree therein. Whether the bar under Section 14(3) is absolute or can be waived by the tenant.

Submissions/Arguments

The appellant argued that the bar under Section 14(3) is not absolute and can be waived, and that the suit was not barred because the tenancy commenced in 1958, not 1982. The respondent argued that the suit was barred by Section 14(3) as it was filed within five years of the letting on 08.06.1982.

Ratio Decidendi

The bar under Section 14(3) of the Rajasthan Premises (Control of Rent and Eviction) Act, 1950 is not absolute and can be waived by the tenant. The relevant date for computing the five-year period is the date of original letting, not the date of purchase by the landlord. An admission by the tenant regarding the earlier tenancy can be used to rebut a claim of fresh letting.

Judgment Excerpts

The provision creates a complete bar to the institution of a suit for eviction within five years from the date of letting, but the bar is not absolute and can be waived by the tenant. The respondent had admitted that he had initially leased the shop from one Udai Lal in 1958, and thus the suit could not be said to be hit by the restriction under Section 14(3) of the said Act.

Procedural History

The appellant filed a suit for eviction on 21.05.1985. The trial court dismissed it on 30.10.2002. The first appellate court allowed the appeal on 18.03.2004. The respondent filed a second appeal in the Rajasthan High Court. A Single Judge referred the matter to a Larger Bench on 04.10.2018. The Division Bench delivered judgment on 20.04.2020, holding that Section 14(3) bars the institution of the suit. The appellant appealed to the Supreme Court, which allowed the appeal on 05.05.2023.

Acts & Sections

  • Rajasthan Premises (Control of Rent and Eviction) Act, 1950: 14(3), 22
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