JUNAID ALI KHAN Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Vide notification Annexure P-2 dated 21-2-1997, the Governor of Punjab in exercise of powers conferred by Section 3 of the East Punjab Urban Rent Restriction Act, 1949 (East Punjab Act No. 3 of 1949) read with Section 71 of the Punjab Municipal Act, 1911 (Act No. III of 1911) and all other powers enabling him in this behalf directed that the provisions of the said Act shall not apply to the buildings and rented lands situated in the urban area administered by the Municipal Council, Sahibzada Ajit Singh Nagar, (Mohali), for another period of 5 years with effect from 1-4-1995 to 31-3-2000. This notification was published in the Punjab Government Gazette Extraordinary on 6-3-1997. Petitioners are tenants in the commercial and residential buildings owned and possessed by respondents Nos. 2 to 6. Respondents Nos. 2 to 6 filed suits for possession against them after the termination of their tenancy in terms of Section 106 of the Transfer of Property Act. Said suits are pending adjudication at different stages, as for instance suit for possession filed against Paul Mohinder Singh by Taranjeet Singh is pending in the Court of Sub Judge, Kharar. Suit for possession filed against Rajinder Singh by Lt. Col. Devinder Singh is pending in the Court of Balbir Singh, Sub Judge, Kharar. In suit for possession filed against Junaid Ali Khan by Avtar Singh, RSA No. 2807 of 1997 is pending in the Court. Similarly in suit for possession filed against K. K. Nayar by Amarjeet Singh RSA No. 3243 of 1996 is pending in the High Court. In suit for possession filed against Kehar Singh by Pushpinder Singh. RSA No. 3295 of 1997 is pending in this Court. Petitioners are challenging the constitutionality of notification Annexure P-2 exempting the buildings and rented lands situated in the urban area of Municipal Council, Mohali for a period of 5 years from 1-4-1995 to 31-3-2000. It is alleged that this notification is in partial modification of the earlier notification dated 9-2-1984 exempting buildings and rented lands situated in the urban area of Mohali for the period 21-12-1983 to 31-3-1995. East Punjab Urban Rent Restriction Act, 1949 was enacted to restrain the increase of rent of certain premises situated within the limits of urban area and eviction of the tenants therefrom. This Act was enacted in view of the shortage of the houses and high rent being charged by the landlords.

(2.) The rent control legislation in these circumstances is a social legislation enacted for the benefit of tenants so that they are not fleeced by the landlords out of proportion. It was designed to protect the tenants from eviction by the landlords on frivolous and inadequate grounds. It was enacted with a view to remove the evil of exploitation of landlords in view of scarcity of accommodation and to curb the process of eviction of tenants with a view only to increase the rent. Keeping in view the growth of the area, Notified Area Committee was constituted at Mohali on 28-12-1983 under Section 241 of the Punjab Municipal Act, 1911.Notified area is the area which is a town as yet not satisfying the requirements of municipality as contemplated under Section 3 (9) of the Punjab Municipal Act. Consequent to 74th Constitution amendment the Punjab Municipal Act, 1911 was amended by Punjab Act No. 11 of 1994. Consequent to such amendment notified area of Mohali was classified as smaller urban area and a Class-I Municipal Council was constituted as per schedule III attached to the Punjab Municipal Act in terms of Section 4 (6) of the Punjab Municipal Act (as amended). Therefore the area of Mohali is administered by the Municipal Council. Mohali is well established urban area governed by the Punjab Municipal Act, 1911 as amended. The East Punjab Urban Rent Restriction Act became applicable to the urban area of Mohali upon after the Notified Area Committee was constituted in the year, 1983. In spite of the applicability of the East Punjab Urban Rent Restriction Act to urban area of Mohali, the State Government issued notification purportedly in exercise of the powers under Section 3 of the Act whereby it exempted applicability of the Act and the rented land in the entire urban area for a period till 31-3-1995 but subsequently modified such notification on 6-3-1997 applying such notification with retrospective effect i.e. 1-4-1995 till 31-3-2000. Once the Act has been made applicable to all the urban areas, the State Government by a piece of delegated legislation cannot annul Section 1 (2) of the Act. The power granted to the State Government under Section 3 of the Act is in respect of particular building or rented land or any class of building or rented land within urban area but cannot be extended in respect of all the buildings and all the rented lands within the entire urban area. Such notification is thus against the legislative mandate of applicability of the Rent Act to all the urban areas. The State Government has no power to issue notification with retrospective effect. The notification dated 9-2-1984 exempted the buildings and the rented lands till 31-3-1995. The provisions of the Act became applicable with effect from 1-4-1995 to the urban areas of Mohali and all the buildings and rented lands became entitled to the protection of the Rent Act. Once the protection was given to the tenants, the rights of the tenants could not be taken away by the State Government by way of notification exempting the applicability of the Act with retrospective effect. Notification is wholly illegal, unjust and beyond the jurisdiction of the State Government. By exempting the buildings and rented lands from the urban area of Mohali, the State Government negated the provisions of Section 1 of the Act which lays down that the Rent Act is applicable to all the urban areas. Once the substantive provisions of the Act had been made applicable to all the urban areas, the State Government could not by executive authority say that it shall not apply to a particular area. The State Government could only exempt building or class of buildings without such urban area but could not exempt all the buildings within said urban area. Section 3 of the Rent Act empowers to exempt the buildings or rented lands as defined respectively under Sections 2 (a) and 2 (f) of the Act. Exemption can be granted only to buildings and rented lands and not to the entire urban area so as to make the Act inapplicable to the entire town. Notification Annexure P-2 is contrary to the objects and purposes of the Act. No guidelines have been given for the exercise of the power conferred by Section 3 of the Act by the State Government to exempt the building or class of buildings and rented lands. In the absence of any guidelines, power to exempt can be misused. In this case this power has been misused with a view to give handle to the senior bureaucrats and politicians who have property in Mohali to eject their tenants with the object to earn more rent. Notification exempting every building and rented land situated in the urban area of Mohali from the operation of the Act is not based on any intelligible differentia. Tenants in Mohali require to be protected against the onslaught of the landlords managing ejectment proceedings against them for no good cause. The Act has not laid down any guidelines as to when building or class of buildings can be exempted from the provisions of the Act. In the absence of any guidelines, the executive cannot issue notification under Section 3 of the Act any time and thus rendering the provisions of the Act nugatory. In other notified area committees, there is no such notification making the protection granted to the tenants against eviction nugatory.

(3.) Respondent contested this writ petition, urging that exemption granted is valid and was mandated by the fact that a large number of buildings at Mohali are still lying vacant and with a view to encourage building activities, notification was issued. Purpose of the Rent Act was not to make the tenants owners of the premises and the exemptions granted for specific period are valid. It was urged that none of the petitioners can have any grievance inasmuch as when the premises were let out to them, the Rent Act was not applicable.