1969 (3) TMI 89 - SC - Indian Laws

Summary

Issues:
1. Validity of distress warrant issued for recovery of municipal taxes.
2. Jurisdiction of the Court of Small Causes, Ahmedabad.
3. Ultra vires nature of Rule 5 under the Bombay Rents, Hotel and Lodging House Rates Control Act.
4. Applicability of the Ahmedabad City Courts Act, 1961 on the proceedings.

Detailed Analysis:
1. The main issue in this case was the validity of the distress warrant issued for the recovery of municipal taxes. The appellants argued that the municipal taxes and electricity charges did not constitute rent and could not be recovered through a distress warrant. However, the Court held that since the appellants had agreed to pay municipal taxes and electricity charges as part of the rent, they were indeed recoverable through a distress warrant. The Court found no merit in this argument and upheld the validity of the distress warrant for the recovery of municipal taxes.

2. Another issue raised was regarding the jurisdiction of the Court of Small Causes, Ahmedabad, to issue a distress warrant in a suit under the Bombay Rents, Hotel and Lodging House Rates Control Act. The appellants contended that the Court of Small Causes had no jurisdiction to issue a distress warrant while a standard rent determination application was pending. However, the Court ruled that the Court of Small Causes had the power to issue a distress warrant even when an application for standard rent determination was pending. The Court clarified that until standard rent is determined, rent at the contractual rate is payable, and the process for recovery by distress warrant may be adopted.

3. The appellants also challenged the vires of Rule 5 under the Bombay Rents, Hotel and Lodging House Rates Control Act, arguing that it was ultra vires the State Government. The Court examined the relevant provisions of the Act and concluded that Rule 5 was validly framed under the authority conferred by Section 49 of the Act. The Court found no basis to support the argument that Rule 5 was ultra vires, both before and after the enactment of the Ahmedabad City Courts Act, 1961.

4. Lastly, the issue of the applicability of the Ahmedabad City Courts Act, 1961 on the proceedings was discussed. The Court explained that the Court of Small Causes at Ahmedabad became a Court of exclusive jurisdiction to try suits, proceedings, claims, and questions arising under the Bombay Act 57 of 1947 by virtue of the amendments made in Section 28 of the Act. The Court clarified that the Court of Small Causes, Ahmedabad, had the power to issue a distress warrant under Section 53 of the Presidency Small Cause Courts Act, and this power could be exercised even in suits exclusively triable by it under the Bombay Act 57 of 1947.

In conclusion, the Supreme Court dismissed the appeal, upholding the validity of the distress warrant for the recovery of municipal taxes, affirming the jurisdiction of the Court of Small Causes, Ahmedabad, and ruling that Rule 5 was not ultra vires. The Court also clarified the applicability of the Ahmedabad City Courts Act, 1961 on the proceedings, emphasizing the Court's power to issue a distress warrant even during pending standard rent determination applications.