1987 (9) TMI 421 - SC - Indian Laws

Summary

Issues Involved:
1. Challenge to the vires of Section 14(1)(b) and Section 16(2) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.
2. Allegation of arbitrariness, discrimination, and unreasonableness of the Act.
3. Comparison with other Rent Acts and their provisions for re-induction of tenants.
4. Examination of legislative intent and public policy behind the Act.

Summary of Judgment:

1. Challenge to the vires of Section 14(1)(b) and Section 16(2):
The petitions challenge the constitutionality of Section 14(1)(b) and Section 16(2) of the Tamil Nadu Rent Act on the grounds of being arbitrary, discriminatory, and unreasonable. The primary contention is that while other Rent Acts provide for re-induction of tenants post-reconstruction, the Tamil Nadu Rent Act does not, making it discriminatory against tenants.

2. Allegation of Arbitrariness, Discrimination, and Unreasonableness:
The petitioners argue that the lack of provision for re-induction of tenants post-reconstruction is violative of Article 14 of the Constitution. They assert that this omission is unreasonable, especially since tenants have the right to re-occupy premises after repairs under the same Act. The court, however, finds that the differentiation between repairs and reconstruction is rational and based on practical considerations, such as the time required for reconstruction and the likelihood that tenants would find alternative accommodations during this period.

3. Comparison with Other Rent Acts:
Petitioners highlight that other Indian statutes, such as those in Maharashtra, Karnataka, Kerala, and West Bengal, include provisions for re-induction of tenants after reconstruction. The court, referencing The State of Madhya Pradesh v. G.C. Mandawar, [1955] 1 S.C.R. 599, states that Article 14 does not authorize striking down a law of one State based on a comparative study with another State's law. The court emphasizes that legislative policies can vary based on local conditions and needs.

4. Examination of Legislative Intent and Public Policy:
The court examines the legislative intent behind the Tamil Nadu Rent Act, noting that it aims to balance the interests of landlords and tenants. The Act provides for eviction for demolition and reconstruction to encourage landlords to invest in new construction, which is essential for addressing the housing shortage. The court references historical judgments, such as P.J. Irani v. The State of Madras, [1962] 2 S.C.R. 169, to support the constitutionality of the Act's provisions.

The court concludes that the absence of a provision for re-induction of tenants in reconstructed buildings is neither arbitrary nor unreasonable. It serves as an incentive for landlords to undertake demolition and reconstruction, ultimately benefiting the housing market. The court dismisses the writ petitions, upholding the challenged sections of the Tamil Nadu Rent Act as constitutional. The judgment emphasizes the need for a balanced approach to landlord-tenant laws and suggests the formulation of a National Housing Policy to address the broader issues of housing shortages and rent control.