Harbhajan Singh Etc v. State of Punjab and Others
SANJIV KHANNA, J.
1. The afore-captioned Civil Appeal impugns the judgment dated
6th July 2006 passed by the High Court of Punjab and Haryana which
dismissed five writ petitions challenging the vires of the Punjab Religious
Premises and Land (Eviction and Rent Recovery) Act, 1997 (‘Religious
Premises Act’, for short).
2. The appellants before us are tenants in occupation of s hops
located in Gurudwara Singh Sabha, a gurudwara at Kukar Majra, G.T.
Road, Mandi Gobindgarh, District Fatehgarh Sahib, Punja b. The
appellants claim that they were inducted as tenants during t he period
1965-69 by Gurudwara Singh Sabha. However, no formal lease or
agreements were executed and albeit, over a period of time, rents were
progressively increased. The appellants further claim that they are small
businessmen carrying on trade primarily connected with steel industry,
while one of the appellants runs a dhaba . By the letter dated 2 nd
March 1978, the appellants were informed that the aff airs of the
gurudwara had come under the control of Shiromani G urdwara
Parbandhak Committee (‘SGPC’ for short) and they should, therefore,
pay the rent to SGPC. It is alleged that the appellants have been paying
rent to SGPC or the manager of the gurudwara but receipts ha ve not
been regularly issued.
3. In the year 1997, SGPC had filed an eviction petition agai nst
one of the appellants, Harbhajan Singh, under Section 13 of th e East
Punjab Urban Rent Restriction Act, 1949 (‘East Punjab Rent Act ’, for
short) on two grounds, viz., (i) failure to pay rent, and (ii) SGPC needed
the property for construction of shops. Harbhajan Singh had, thereafter,
deposited arrears of rent on the first date of hearing. The eviction
proceedings, however, had remained pending and were not decide d.
4. On 29 th January 1998, the Religious Premises Act was
enforced, and thereby introduced a summary procedure for evic ting
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
unauthorised occupants from the premises/property belongin g to the
religious institutions. Thereafter, SGPC had filed ejectm ent petitions
under the Religious Premises Act before the Collector f or eviction of
the appellants stating that the appellants were in unauthorised
occupation. The appellants, on receipt of notices from the C ollector
under Section 4 of the Religious Premises Act, had filed the writ petitions
challenging the vires of the enactment before the High Co urt, which
by the impugned judgment have been dismissed. The primary challenge
before the High Court was to the explanation to clause (a) to Section
3 of the Religious Premises Act on the ground that the provision creates
an unintelligible classification to the disadvantage of th e tenants who
are otherwise entitled to equal protection as other tenants und er the
East Punjab Rent Act.
5. The pleas raised by the appellants were rejected by the
Division Bench of the High Court after referring to th e object and
purpose behind the impugned enactment, that is, to preserve the property
of religious institutions, by observing that public at large has an inherent
interest in the “religious institutions” which were prone to
maladministration and mismanagement. Referring to the definition of
“unauthorised occupants”, it was observed that a person wh o is in
occupation of the premises belonging to a “religious in stitution” on a
valid allotment, lease or grant is not to be treated as an “ unauthorised
occupant” for the period of allotment, lease or grant. The expl anation
states that mere payment of rent by the tenant who is in unauthorised
occupation shall not raise any presumption that such person had entered
into possession as an allottee, lessee or under a grant. Refe rring to
the detailed and comprehensive procedure for eviction under Section s
4 and 5 of the Religious Premises Act, it was held that the Collector
has to be satisfied that the opposite party was in “unauthorised
occupation” and only thereupon an eviction order can be passed a fter
following the due procedure. A person aggrieved against the order
passed by the Collector can file an appeal before the Com missioner
under Section 8 of the Act. Referring to the factual matri x, the High
Court has observed that all contentions on merits should be raised before
the authorities under the Religious Premises Act, in accordance with
law.
6. The primary contention raised by the appellants before us is
that as tenants they are entitled to protection against eviction under the
East Punjab Rent Act, which protection it is submit ted cannot be
839
withdrawn and taken away under the Religious Premises Act. Further,
the definition of “unauthorised occupants”, as a result of ex planation
to clause (a) of Section 3, is highly unjust and unfair as a tenant who
has been paying rent over a long period is deemed to be in “unauthorised
occupation” because of the termination of the lease, lice nce or grant,
or the time stipulated in the lease, license or grant has come to an e nd.
This it is submitted is unjust and unfair. The Religious P remises Act
creates an artificial classification as tenants of land and buildings
belonging to or owned by “religious institutions” are no longer entitled
to protection under the East Punjab Rent Act though such prote ction
continues to be available to other tenants. Expansion or construction
of a new building by a religious institution as was pleaded by SGPC in
their eviction petition under the East Punjab Rent Act would not justify
eviction. There is no public purpose or objective in enac ting the law,
that is, the Religious Premises Act, which has become a ca lculable
device and means to increase income of the religious institutions. This
Court in Ashoka Marketing Ltd. and Another v. Punjab National
Bank and Others 1 had examined and rejected the challenge to the vires
of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971
(‘Public Premises Act’, for short) after recording tha t the property
belonging to the government would fall under a separate class and that
the government, while dealing with the citizens in respect of the property
belonging to it, would not act for its own purpose as a private landlord
but would act in public interest. This is a crucial distinction between
the government and private landlords and, therefore, f or the same
reasoning in inverse, the present appeal should be all owed as the
Religious Premises Act creates an artificial distinction and discriminates
against the tenants of “religious institutions”, th ough “religious
institutions” as landlords are not a separate class. Thus , the Religious
Premises Act should be declared unconstitutional and illegal as it violates
Article 14 of the Constitution.
7. The respondents, namely, the State of Punjab and also SGPC,
have contested the said submissions and contentions. Their submissions
and contentions would be noticed in the subsequent portion and in our
reasoning below.
8. The East Punjab Rent Act was enacted in the year 1949, soon
after the Partition, with a view to protect tenants and to curtail the right
1 (1990) 4 SCC 406
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
of the landlords to seek eviction notwithstanding the contract under the
provisions of the Transfer of Property Act, 1882, (“Transfer of Property
Act”, for short) which is a general enactment regulating landl ord and
tenant relationships. There cannot be any doubt that the State legislature,
that is, the Legislative Assembly of the State of Punja b is entitled to
enact the Religious Premises Act, despite the fact that they had enacted
the East Punjab Rent Act. We must accept and take judicial notic e by
acknowledging that the State legislature while enacting the Religious
Premises Act was aware that it has enacted East Punjab Rent Act, an
existing statute governing landlord and tenant relationship. However, the
State legislature in its wisdom has deemed it appropriate to enact a law
in respect of land and buildings belonging to “religious institutions”. The
vires of the Religious Premises Act, a special enactment concerning
landlord and tenant relationships, cannot be challenged on the ground
that there are already two other enactments governing general landlord
and tenant relationships (Transfer of Property Act and East Punjab Rent
Act). The Constitution confers the power and authority on the State to
enact two separate enactments on a similar subject i f they seek to
achieve different objectives and protect and preserve differ ent sets of
rights and make necessary classification to serve such varied ends. The
Religious Premises Act, unlike the East Punjab Rent Act and the Public
Premises Act, concerns itself with the administrati on of premises
belonging to religious institutions and seeks to regulate the ir rights as
landlords vis-à-vis the tenants in occupation. In this regar d, reference
can be made to the object and purpose behind enacting the Re ligious
Premises Act, which is as follows:
“Since long various religious institutions have been representing
to the Government for vacation of their premises un der
unauthorised occupation. On careful thought being given by the
Government, the State Government is of the opinion that the
religious institutions are facing a lot of difficulties in this behalf.
It is, therefore, expedient for the State Government to hel p the
religious institutions in getting their premises which a re under
unauthorised occupation vacated through summary proceedings.
Hence, the Punjab Religious Premises and Land (Eviction and
Rent Recovery) Bill, 1996.”
9. Section 2(d) of the Religious Premises Act defines “reli gious
institution”. Section 2(e) defines ‘religious premises’ and Section 3
841
defines “unauthorised occupation of religious premises by a person”.
These provisions read as under:
“(d) “Religious Institution’ means any gurudwara, temple, church,
mosque, temple of Jains or Budhas - which is registered under
the provisions of the Societies Registration Act, 1860 (Centr al
Act No. XXI of 1860) or is established under any statute and
includes any other place of worship by whatever name, it m ay
be called, which is registered as aforesaid or is established under
any statute;
(e) “religious premises”, means any land whether us ed for
agricultural or non-agricultural purposes, or any building or part
of a building belonging to a Religious Institution and includes, -
(i) the garden, grounds and out-houses, if any, appertaining
to such building or part of a building; and
(ii) any fittings affixed to such building or part of a building
for the more beneficial enjoyment thereof;”
xxx
3. Unauthorised occupation of religious premises. - For the
purposes of this Act, a person shall be deemed to b e in
unauthorised occupation of any religious premises-
(a) where he has, whether before or after the
commencement of this Act, entered into possession
thereof otherwise than under and in pursuance of any
allotment, lease or grant; or
(b) where he, being an allottee, lessee or grantee has, by
reason of the determination or cancellation of his
allotment, lease or grant in accordance with the terms
in that behalf therein contained, ceased, whether before
or after the commencement of this Act, to be entitled
to occupy or hold such religious premises; or
(c) where any person authorised to occupy any religious
premises has, whether before or after the
commencement of this Act, -
(i) sub-let, in contravention of the terms of allotment,
lease or grant, without the permission of the Religious
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
Institution, the whole or any part of such religious
premises; or
(ii) otherwise acted in contravention of any of the terms,
express or implied, under which he is authorised to
occupy such religious premises.
Explanation. - For the purpose of clause (a), a person s hall not
merely by reason of the fact that he has paid any rent be deemed
to have entered into possession as allottee, lessee or gra ntee.”
“Religious institution” means any gurudwara, temple, church,
mosque or temple of Jains or Buddhists which is registered under
the provisions of the Societies Registration Act or establi shed
under any statute. It also includes any place of wors hip by
whatever name called which is registered as aforesa id or
established under any statute. The definition is clear and no
contention or issue is raised that the definition o f the term
“religious institution” is vague or incomprehensible. Similarly, the
expression “religious premises” has been defined in clear term s
to mean land used for agricultural or non-agricultural purposes
or any building or part of the building belonging to a religious
institution. The definition clarifies that the expression “religious
premises” would include garden, ground and out-house or any
fittings in the building or part of the building for more beneficial
enjoyment. The expression “unauthorised occupation” is of some
importance in view of the challenge and the contentions ra ised.
A person is deemed to be in unauthorised occupation of any
religious premises if he has, before or after commencem ent of
the Religious Premises Act, entered into possession of a land or
building belonging to a religious institution otherwise than under
or pursuant to any allotment, lease or grant. A person who enters
into possession of the land or building belonging to or owned by
a religious institution and has valid and subsisting allotment, lease
or grant is clearly not an unauthorised occupant. Such allottees,
lessees or persons in whose favour there is a grant, allotment or
lease that entitles the person to retain possession are fully
protected and cannot be evicted. In other words, primacy to the
terms of allotment, lease or grant is not interfered, a nd is duly
accorded. The terms of the allotment, lease or grant would be
binding. Clause (b) states that if the allotment, lease or grant has
843
been determined or cancelled whether before or afte r the
commencement of the Religious Premises Act, occupation of the
person would be treated as unauthorised occupation. Clause (c)
states that where a person is authorised to occupy any reli gious
premises, before or after commencement of the Relig ious
Premises Act, has sublet the religious premises in contravention
of the terms of allotment, lease or grant, or otherwise acte d in
contravention of the terms, express or implied, he shall be treated
as an “unauthorised occupant”. No contention, issue or objection
has been raised viz. clause (c) to Section 3. Explanat ion to
Section 3 states that for the purpose of clause (a), which makes
the term of allotment, lease or grant as a basis for det ermining
whether a person is in authorised or unauthorised occupation,
shall not be affected by the mere reason or the fact that such
person has paid rent and, therefore, is deemed to have entered
into possession as an allottee, lessee or guarantee. In other words,
payment of rent would not be a determinative and relevant factor
in deciding the issue and question of “unauthorised occupation”.
The tenure of allotment, lease or the grant and ter ms and
conditions as agreed or stated, and not mere payment of rent
would be the crucial and determinative criterion.
10. Under Section 4 of the Religious Premises Act, a religi ous
institution can make an application before the Collector if it is of the
opinion that any person is in unauthorised occupation of any religio us
premises, situated within the Collector’s jurisdiction. The C ollector
thereupon is required to issue notice in writing calling upon the person
to show-cause why the eviction order should not be made. Sub-section
(2) prescribes the requirement of a notice and sub-section (3) to Section
4 prescribes the manner in which the notice is to be ser ved. Under
Section 5, the Collector is authorised and is competent to pass an order
of eviction after considering the cause, if any, shown by the person to
whom notice under Section 4 has been issued and after examining the
evidence that may be produced by such person. The person in
occupation has to be given reasonable opportunity of being heard. The
statutory requirement is that the Collector should be sati sfied that the
religious premises are in unauthorised occupation before he can make
the order of eviction. The Collector must also record re asons. The
Collector is required to pass an order within a period of 45 days from
the date of receipt of the application under Section 4 and the order
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
passed has to be affixed on the outer door or on some other conspicuous
part of the religious premises. If a person fails to comply with the order
of eviction within 30 days from the date of the order, the Collector, or
any other officer duly authorised by him, can evict the person and deliver
possession of the religious premises to the religious insti tution. He is
entitled to use force as may be necessary. The tenant , if aggrieved,
can file an appeal against the Collector’s order before the Commissioner.
Thereafter, the tenant is entitled to also invoke the writ ju risdiction of
the High Court under Articles 227 and 226 of the Constitution of India
if the grievance still persists.
11. The issue of whether the properties of the religious institutions
for the purpose of rent control legislations can be treated as a separ ate
category is no longer res integra as this aspect was examined in several
decisions where this Court has held that separate clas sification of
properties of religious institutions for rent legislations will pass a challenge
under Article 14 of the Constitution. In State of Andhra Pradesh and
Others v. Nallamilli Rami Reddi and Others 2, this Court was faced
with a challenge to the validity of Section 82 of the Andhra Pra desh
Charitable and Hindu Religious Institutions and Endowments Act, 1987
which had cancelled the leases of tenants of properties belonging to or
given or endowed for the purpose of any charitable or any religious
institution or endowment falling under the enactment, notwithstanding
the prevailing tenancy laws in the State of Andhra Pradesh, in order to
augment the rents payable for such properties which st ood frozen on
account of the tenancy laws and since sale of such l ands was not
feasible. While examining the question of religious institut ions as a
separate and distinguishable class, this Court had expounde d on the
scope of Article 14 of the Constitution and the kind of classifi cation
that would stand the test of Article 14 of the Constitution, as under:
“8. What Article 14 of the Constitution prohibits i s “class
legislation” and not “classification for purpose of legislation”. If
the legislature reasonably classifies persons for l egislative
purposes so as to bring them under a well-defined class, it is not
open to challenge on the ground of denial of equal treatment that
the law does not apply to other persons. The test of permiss ible
classification is twofold: (i) that the classification must be founded
on intelligible differentia which distinguishes persons grouped
2 AIR 2001 SC 3616
845
together from others who are left out of the group, and (ii) that
differentia must have a rational connection to the object sought
to be achieved. Article 14 does not insist upon classificati on,
which is scientifically perfect or logically complete. A classification
would be justified unless it is patently arbitrary. If there is equality
and uniformity in each group, the law will not beco me
discriminatory, though due to some fortuitous circumstance arising
out of peculiar situation some included in a class get an advantage
over others so long as they are not singled out for special
treatment. In substance, the differentia required is that i t must
be real and substantial, bearing some just and reasonable relation
to the object of the legislation.”
Holding the above, this Court in Nallamilli Rami Reddi (supra)
had reversed the decision of the Division Bench of the Andhra Pradesh
High Court observing that religious institutions fall i nto a separate
category and land or property held by them have a special c haracter.
Clearly, the tenants under a religious institution would form a separate
class by themselves and such classification, if made, would achieve the
object of promoting the interests of the religious institutions. Therefore,
classification of properties of “religious institutions” as a separate and
distinctive class of properties would not fall foul or be violative of Article
14 of the Constitution. It was elucidated that whether a tenancy act
should be applicable to religious institutions or should be kept out is not
an aspect which the Court would decide. It is instead for the legislature
to determine the extent of applicability of such tenancy laws to religious
institutions and the extent of protection that should be made available.
This Court has, therefore, rejected the argument that religious institutions
as landlords or tenants of religious institutions cannot be tre ated and
regarded as a separate category in respect of whom p rotection as
available to other tenants under the rent law would not be a vailable.
Such classification cannot be a ground or the basis to interfere with
the validity of an act or provision. However, the Courts can interfere
when the policy is irrational. Summing up the ratio, this court in
Nallamilli Rami Reddi (supra) had held:
“15. We may sum up the upshot of our discussion:
1. That charitable or religious institutions or endowments
fall into a separate category and form a class by
themselves. If that is so, tenants coming under them
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
also form a separate class. Therefore, they can be
treated differently from others.
2. In operation of the Act it is possible that it may re sult
in hardship to some of the tenants but that by itself will
not be a consideration to condemn the Act.
3. The manner in which the charitable or religious institution
or endowment would deal with the properties that are
resumed after the provisions of Section 82 of the Act
come into force by cancelling the existing leases, is in
the region of speculation.
4. Fresh tenancy can be entered into and there is no
material before the court as to what was the rent paid
by tenants at the time when the Act came into force, in
terms of Section 18(2) of the Act or as provided under
the Andhra Act or under the Telangana Act. In the
absence of such a material, it would be hazardous for
the court to reach any conclusion, one way or the other,
to state that the tenants would be frozen and, therefore,
there is no likelihood of charitable or religious institution
or endowment getting higher rents. If there is no
material one way or the other, the presumption that the
Act is good should prevail.
5. It is a matter of policy with the legislature as to whether
all provisions of the Tenancy Acts should be exempt in
its application to the charitable or religious institution or
endowment in their entirety.
6. The identification of “landless poor persons” and
protection given to them is justified as enunciated earlier.
7. It will be very difficult to predict at this stage t hat the
result of Section 82 of the Act would be so hazardous
as not to achieve the object for which it was enacted.
It would not only result in displacing the old tenants by
new tenants, it may also achieve other social objectives
in another manner. If appropriate provisions are made
under the Rules and if the leases are given to small
holders of land, another social objective could be
achieved.
847
8. In what manner charitable or religious institution or
endowment would deal with matters of this nature is
mere guesswork at this stage. On some hypothetical
approach the High Court could not have declared a law
to be invalid.”
Therefore, it was clearly held that tenants of religious institutions
fall in a separate class which is identifiable. Further , on the question,
whether cancellation of a “lease” in their favour would achiev e the
objectives of the act in question, it was observed, that t here was no
material before the Court to show that such cancellation would not carry
out the purposes of the “religious institutions”.
12. There have been number of central and state legislations
wherein religious institutions with or without othe r charitable
organisations have been treated as a separate and disti nct class and
accorded legal treatment concomitant to such distinctiveness within the
scope of the same enactment or other enactments. {See – Se ctions 11
and 115BBC, the Income Tax Act, 1961; Karnataka Rent Act, 1999
and Karnataka Hindu Religious Institutions and Charitable Endowments
Act, 1997; Orissa Hindu Religious Endowments Act, 1951; Himachal
Pradesh Hindu Public Religious Institutions and Charitable Endowments
Act, 1984 as amended in 2018; Uttar Pradesh Urban B uildings
(Regulation of Letting, Rent and Eviction) Act, 1972 and Goa, Daman
and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968, among
others}.
13. We would like to refer to a decision of this Court i n S.
Kandaswamy Chettiar v. State of Tamil Nadu and Another 3 wherein
challenge was made to the exemption granted to buildings owned by
Hindu, Christian and Muslim religious public trusts and public charitable
trusts from the provisions of the Tamil Nadu Buildings (Lease and Rent
Control) Act, 1960, by delegated legislation, in the form of an exemption
notification issued under Section 29 of the above Act. A three Judge
Bench of this Court in S. Kandaswamy Chettiar (supra) referred to
the judgment of a five Judge Bench of this Court in P .J. Irani v. State
of Madras 4 wherein identical provisions contained in earlier enactment,
namely, the Madras Buildings (Lease and Rent Control) Act, 1959 were
upheld in the context of Article 14 of the Constitution of India on the
3 AIR 1985 SC 257
4 AIR 1961 SC 1731
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
basis that the Preamble and operative provisions of t hat Act gave
sufficient guidance for exercise of discretionary power vested with the
State Government. Whether a notification granting e xemption to
buildings belonging to charities, religious or secular institutions would
violate the equal protection mandate of Article 14, it was observed, that
Article 14 requires that the classification must be base d on rational
grounds, that is, grounds germane to carrying out the policy or the
purpose of the Act and by way of illustration it was sta ted that if such
exemptions were granted in favour of all the buildings belongi ng to
charities, religious or secular institutions, such classification would be
reasonable and proper being based on intelligible differentia having nexus
to the object sought to be achieved. Rent Act, it was observed, woul d
unquestionably be a piece of beneficial legislation intended to r emedy
the two evils, that is, rack-renting extraction of exorbitant rents and
unreasonable eviction orders generated by a largesc ale influx of
population to big cities and urban areas post the Second Wor ld War
creating acute shortage of accommodation in such ar eas. Rent
enactments overtly protect the rights of the tenants in occupa tion of
buildings in such areas from being charged unreasonable rents and from
being unreasonably evicted. Therefore, such enactments even prot ect
tenancy after determination or end of their contract ual periods by
enlarging the definition of the term ‘tenant’. At the same time, the rent
enactments often contain other significant provisions which indicate that
the legislature itself felt that there may be areas and cases w here these
two evils were neither prevalent nor apprehended, and as such landlords’
freedom need not be curtailed at all. It is in this context that several
enactments give wider latitude to the landlords of religious, charitable,
educational and other public institutions if the possession is required for
purposes of such institutions. In other words, the legislature is entitled
and can make rational classification of buildings belonging to government
and those belonging to religious, charitable, educational and other public
institutions which are accorded different treatment on the well-founded
assumption that such landlords are not expected to and would not indulge
in rack-renting or unreasonable eviction. Relying upon the observations
in P .J. Irani (supra), it was held that constitutional validity of granting
exemption to buildings belonging to charities, religio us or secular
institutions, from rent control legislation, would not offend the equal
protection clause of Article 14 of the Constitution as it is a reasonab le
classification based on intelligible differentia and also satisfies the test
849
of nexus as such institutions not only serve public purpose but
disbursement of their income is governed by the objects for which they
are created. The income and activities are not for pri vate benefit.
Reference in this regard was made to the counter affidavi t wherein
the government had explained that they were satisfied that the rents
received by exempted religious institutions were very low, meagre and
that the provisions of fixation of fair rent under the rent act w ould not
meet the ends of justice and would in fact result in the tenant exploiting
the situation. Consequently, withdrawal of protection to the tenants of
such buildings was justified. It was observed in S. Kandaswamy
Chettiar (supra) as under:
“11... In our view, the aforesaid material clearly show s that
buildings belonging to such public religious and ch aritable
endowments or trusts clearly fell into a class wher e undue
hardship and injustice resulting to them from the u niform
application of the beneficial provisions of the Act needed to be
relieved and the exemption granted will have to be regarded as
being germane to the policy and purposes of the Act. In other
words the classification made has a clear nexus with the o bject
with which the power to grant exemption has been confer red
upon the State Government under S.29 of the Act.
xx xx xx
14... It is obvious that if the trustees of the public religious trusts
and public charities are to be given freedom to charge the normal
market rent then to make that freedom effective it will be
necessary to arm the trustees with the right to evict th e tenants
for non-payment of such market rent. The State Government
on materials before it came to the conclusion that the ‘f air rent’
fixed under the Act was unjust in case of such buildings and it
was necessary to permit the trustees of such buildings to recover
from their tenants reasonable market rent and if that be so non-
eviction when reasonable market rent is not paid woul d be
unreasonable and if the market rent is paid by the tenants no
trustee is going to evict them. It is, therefore, clear that granting
total exemption cannot be regarded as excessive or unwarranted.
15. Apart from this aspect of the matter it is conceivab le that
trustees of buildings belonging to such public religious institutions
or public charities may desire eviction of their tenan ts for the
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
purpose of carrying out major or substantial repairs or for the
purpose of demolition and reconstruction and the St ate
Government may have felt that the trustees of such buildin gs
should be able to effect evictions without being required to fulfil
other onerous conditions which must be complied with by private
landlords when they seek evictions for such purposes. In our
view, therefore, the total exemption granted to such buildings
under the impugned notification is perfectly justified.”
14. These two judgments were followed by the two Judge Bench
decision of this Court in Christ the King Cathedral v. John Ancheril
and Another 5 wherein similar exemption notification under the Kerala
Buildings (Lease and Rent Control) Act, 1965 granting exempt ion in
public interest to the buildings of all churches/mosques of all minority
religions and of all Dioceses, Archdioceses, Monasterie s, etc. was
challenged. One of the contentions raised was that no data or material
was produced by the State and hence the decision and ratio in S.
Kandaswamy Chettiar (supra) would not be applicable. Rejecting the
said contention, it was observed:
“6.The law had been stated by this Court to the effect that public
religious or charitable endowments or trusts constitute a wel l-
recognised group which serves not only public purposes, b ut
disbursement of their income is governed by the objects with
which they are created and buildings belonging to s uch
endowments or trusts clearly fall into a class distinct f rom the
buildings owned by private landlords. It is in respect of three areas
a regulation would be made under the Act, as has been done i n
other similar enactments and these areas are: (i) with r espect to
regulation of lease of buildings (residential or non-residential); (ii)
control of rent of such buildings; and (iii) control of eviction of
tenants from such buildings. A public trust, as has been he ld in
S. Kandaswamy Chettiar case is not likely to act unreasonably
either in the matter of enhancement of rent or eviction of tenants
being institutions of religion or charity. On that basis, this Court
upheld the validity of the exemption granted under the Tamil Nadu
Act in favour of such trust or endowment. In the present case ,
the contention has been specifically put forth that the appellants
fall into that very category which came up for considerat ion
5 (2001) 6 SCC 170
851
before this Court in S. Kandaswamy Chettiar case . Therefore,
no distinction can be made between that class of owners of the
buildings in that case and in the present case. We do not
understand as to what other material was required by the Cou rt
in a matter of this nature if the contention put forth befor e this
Court is not that churches or mosques, dioceses, archdioceses ,
monasteries, convents, wakfs and madarsas are not religious and
charitable in nature.
7. Shri Nageswara Rao, the learned counsel appearing for the
contesting respondents submitted that there is tota l non-
application of mind by the Government in the matter of grant of
exemption and the guidelines indicated in S. Kandaswamy
Chettiar case have not been followed in the present case and,
therefore, the exemption should not have been granted in the
present case. In S. Kandaswamy Chettiar case an affidavit had
been filed as to the lower rents that were being paid and th at
the tenants were exploiting the situation and had brought the
charitable institutions to a situation of helplessness and that position
not having been challenged the Court made those orders. If we
bear in mind the fact that the purpose of the Act is appa rently
to prevent unreasonable eviction and also to control rent a nd if
the trustees of religious and public charities are given fr eedom
to charge normal market rent with the further freedom to evi ct
the tenants for not paying such market rent, the result would be
unjust and cause hardship to them. But apprehension, by itself ,
is not sufficient. There is no material on record to show tha t in
any of these cases the landlords would resort to such a cours e
of action. On the other hand, if the building belonging to suc h
public trust or religious institution is exempt from the A ct, the
purpose of the trust could be carried out much better, is quite
clear. If that is the object with which the Government has granted
exemption, we do not think there is any reason to quash the
notifications impugned before the High Court.
xx xx xx
9. An argument is sought to be raised on the basis of owners hip
of property that there should not have been a distinction as is
being made in the present case. That was the very basi s of
distinction made in case of statutory bodies like the Housi ng
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
Board, local authorities which was noticed in Jayakaran v.
Kerala Health R & W Society case or registered wakfs which
was considered in Lakshmanan v. Mohamood . When such
bodies or institutions fall into a distinct class by themselves and
exemption granted to them would serve a public purpose, namely,
to carry out the objects of the trust or the endowment or religious
activity in a broad sense, we do not think that the fine distinction
sought to be made by the High Court in this regard is justified.
15. Appropriate at this stage would also be reference to two
earlier decisions of this Court which had examined the provisio ns of
the rent control legislations, namely, Kewal Singh v. Smt. Lajwanti6
and Ravi Dutt Sharma v. Ratan Lal Bhargava 7.
16. In Kewal Singh (supra), the challenge made was to the
provisions of summary eviction in case of bona fide requirement under
the Delhi Rent Control Act, 1958. It was observed that the rent control
legislations are a piece of social legislations and are meant mainly to
protect tenants from frivolous evictions but, at the same time, they must
do justice to the landlord and to this extent the enactment should avoid
placing such restrictions on their right to evict the tena nts so as to
destroy the legal right to property. Therefore, the landlords have been
given certain statutory rights under the rent enactments to seek eviction
and these provisions provide relief. In the absence of such rent control
legislations, a landlord has the right in law to evict the tenant either on
the termination of tenancy by efflux of time or other grounds after giving
notice under the Transfer of Property Act. Such right s have been
curtailed by the rent control legislations to give prote ction to tenants
having regard to the genuine and dire needs but these should not be
construed to destroy the rights which have been given to the landlords.
It was observed:
“21. There is yet another important aspect of the matter wh ich
may be mentioned here. Prior to the enactment of the rent control
legislation in our country, the relationship of landlord and tenant
was governed by our common law viz. the Transfer of Proper ty
Act (Sections 107 to 111). The tenant was inducted with his tacit
agreement to be regulated by the conditions embodied in the
contract and could not be allowed to repudiate the agreement
6 AIR 1980 SC 161
7 AIR 1984 SC 967
853
reached between him and the landlord during that period. The
tenant was, therefore, bound in law to vacate the premises either
voluntarily or through a suit after he was given a notic e as
required by the Transfer of Property Act under the terms and
conditions of the lease. However, as a piece of social reform in
order to protect the tenants from capricious and frivolous eviction,
the legislature stepped in and afforded special protection t o the
tenant by conferring on him the status of a statutory tenant w ho
could not be evicted except under the conditions specified and
the procedure prescribed by the Rent Control Acts. Thus to t his
extent, the agreement of lease and the provisions of the Transfer
of Property Act stood superseded. At the same time, the Rent
Control Acts provided the facilities of eviction to the landlord on
certain specified grounds like bona fide personal necessity or
default in payment of rent, etc. Thus any right that the te nant
possessed after the expiry of the lease was conferred on him
only by virtue of the Rent Control Act. It is, therefore, ma nifest
that if the legislature considered in its wisdom to confer cert ain
rights or facilities on the tenants, it could due t o changed
circumstances curtail, modify, alter or even take away such rights
or the procedure enacted for the purpose of eviction and leave
the tenants to seek their remedy under the common law.
22. Thus, we do not see how can the tenant challenge the validity
of such a provision enacted by the legislature from which t he
tenant itself derived such rights.”
17. Similar are the observations of this Court in Ravi Dutt
Sharma (supra) which had quoted several passages from Kewal Singh
(supra) to observe that it is open to the legislature to pick out one class
of landlords out of several covered under a specific provision of a rent
enactment so long as they form a class by themselve s and the
legislature was free to provide benefit of a special proc edure to them
in the matter of eviction against the tenants as long as the legislation
had the object to achieve and a special procedure has reasonable nexus
to the object to be achieved.
18. In Ashoka Marketing Ltd. (supra), the five Judge
Constitution Bench of this Court had upheld applicability of the Public
Premises Act to a corporation established by a Central Act that is owned
and controlled by the Central Government, therein a nationalised bank.
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]
After referring to several judgments, this Court had explained the effect
of Article 14 of the Constitution observing that the two statutes, namely,
the Rent Control Act and the Public Premises Act were e nacted by
the same legislature, that is, the Parliament, in exercis e of powers for
matters enumerated in the Concurrent List. The Public P remises Act
being a later enactment would prevail over the provisions of the Rent
Control Act in respect of public premises. Referring to the provisions
of the Rent Control Act, it was observed:
“55. The Rent Control Act makes a departure from the general
law regulating the relationship of landlord and tenant contained
in the Transfer of Property Act inasmuch as it makes p rovision
for determination of standard rent, it specifies the grounds on
which a landlord can seek the eviction of a tenant, it prescr ibes
the forum for adjudication of disputes between landlords and
tenants and the procedure which has to be followed in su ch
proceedings. The Rent Control Act can, therefore, be said to b e
a special statute regulating the relationship of landlord and tenant
in the Union territory of Delhi. The Public Premises Ac t makes
provision for a speedy machinery to secure eviction of
unauthorised occupants from public premises. As opposed to the
general law which provides for filing of a regular s uit for
recovery of possession of property in a competent court and for
trial of such a suit in accordance with the procedure lai d down
in the Code of Civil Procedure, the Public Premises Act confers
the power to pass an order of eviction of an unauth orised
occupant in a public premises on a designated offic er and
prescribes the procedure to be followed by the said officer before
passing such an order. Therefore, the Public Premises Act is also
a special statute relating to eviction of unauthorised occupan ts
from public premises. In other words, both the enact ments,
namely, the Rent Control Act and the Public Premises Act, are
special statutes in relation to the matters dealt with therein. Since,
the Public Premises Act is a special statute and not a general
enactment the exception contained in the principle that a
subsequent general law cannot derogate from an earlier spec ial
law cannot be invoked and in accordance with the principle that
the later laws abrogate earlier contrary laws, the Public Premises
Act must prevail over the Rent Control Act.”
855
19. What has been said about the Public Premises Act wo uld
be equally applicable to the legislations made by the State legislature
of the State of Punjab in respect of the two enactm ents under
consideration, that is, the East Punjab Rent Act and the Religious
Premises Act. No doubt, in this decision it has been observed that t he
underlying reason for exclusion of property belonging to the government
from the ambit of the Rent Control Act is that the governme nt while
dealing with the citizens in respect of property belong ing to it would
not act as a private landlord but would act in public interest, albeit this
reasoning would equally apply to “religious institutions” as defined. The
religious institutions as held are meant to carry out public purpose and
the legislature can proceed accordingly that the religious institutions
would act in public interest for which they were established. { See above
S. Kandaswamy Chettiar (supra) and Christ the King Cathedral
(supra)}
20. As noticed above, valid grants, leases and allotments are not
construed and treated as unauthorised occupation. It is only whe n the
terms of the grant, lease or allotment are not adhered to or have been
determined or the period of allotment, lease or grant as fixed has come
to an end, that the person in occupation is treated to be in unauthorised
occupation. This is a pre-condition which confers the right on the
religious institution to seek eviction of a person in unauthorised
occupation of the religious premises. Further, an order passed by the
Collector is appealable before the Commissioner and if still aggrieved,
a tenant can invoke the writ jurisdiction of the High Court, as mentioned
above. Therefore, power of judicial review is always available and can
be exercised by the High Court when required and necessary .
21. Accordingly, we do not find any merit in the present appeal
and the same is dismissed. However, in the facts of this case, there
would be no order as to costs.
Ankit Gyan Appeal dismissed.
HARBHAJAN SINGH ETC. v. STATE OF PUNJAB AND ORS.
[SANJIV KHANNA, J.]