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Issues Involved:
1. Jurisdiction of High Court under Article 227 of the Constitution of India. 2. Delay and laches in filing the petition. 3. Sub-letting and parting with possession under Section 14(1)(b) of the Delhi Rent Control Act, 1958. 4. Relationship of landlord and tenant. 5. Ownership of the premises. Detailed Analysis: 1. Jurisdiction of High Court under Article 227 of the Constitution of India: The High Court has the power to ensure that subordinate courts and tribunals act within their authority and follow established principles of law. However, this power must be exercised with care, caution, and circumspection. The High Court should not act as an appellate court to re-appreciate evidence or substitute its conclusions for those of the lower courts unless there is a grave injustice or a blatant violation of fundamental principles of law or justice. In this case, the Supreme Court found that the High Court exceeded its jurisdiction under Article 227 by re-evaluating the evidence and substituting its conclusions for those of the Additional Rent Controller (ARC) and the Additional Rent Control Tribunal (ARCT). The High Court's intervention was deemed unjustified as both the ARC and ARCT had acted within their jurisdiction and had considered all relevant material. 2. Delay and Laches in Filing the Petition: The High Court dismissed the objection of delay and laches raised by the appellants, stating that the petition under Article 227 was to correct a patent illegality and that the MCD had been bona fide pursuing the wrong legal remedy. However, the Supreme Court disagreed, noting that the High Court committed a patent error of jurisdiction in entertaining the writ petition, which was unconscionably belated. The MCD had consciously withdrawn its appeal under Section 39(1) of the Delhi Rent Control Act and filed a petition under Article 227 of the Constitution of India, which was inappropriate given the circumstances. 3. Sub-letting and Parting with Possession under Section 14(1)(b) of the Delhi Rent Control Act, 1958: The ARC and ARCT had found that the DTC had sublet the premises to the MCD without the written consent of the landlord, thereby making both DTC and MCD liable for eviction. The ARC concluded that the DTC had parted with possession of the premises to the MCD, which was paying rent to the DTC. The ARCT upheld this finding, noting that the DTC had sublet, assigned, or otherwise parted with possession of the premises to the MCD. The High Court, however, set aside these findings, stating that there was no sub-letting as the DTC, MCD, and other entities were creations of statute and the premises had come to them through nationalization. The Supreme Court rejected this reasoning, stating that the High Court had no justification to re-evaluate the findings of the ARC and ARCT, which were based on evidence and material on record. 4. Relationship of Landlord and Tenant: The ARC and ARCT had found that there was a landlord-tenant relationship between the appellants and the DTC. The High Court, however, questioned this relationship, stating that the premises had been acquired by the Union of India and that the payment of Rs. 3500 per month was a misnomer. The Supreme Court found that the High Court's intervention on this issue was unnecessary and that the findings of the ARC and ARCT on the landlord-tenant relationship were based on adequate evidence. 5. Ownership of the Premises: The High Court erroneously decided the question of ownership of the premises, which was not an issue in the proceedings under Article 227. The Supreme Court noted that the issue of ownership was the subject matter of a separate civil suit and that the High Court should not have given any opinion on this matter. Conclusion: The Supreme Court allowed the appeal and set aside the impugned judgment and order of the High Court. The High Court had overstepped its jurisdiction under Article 227 of the Constitution of India by re-evaluating the evidence and substituting its conclusions for those of the ARC and ARCT. The High Court's dismissal of the objection on the grounds of delay and laches was also found to be inappropriate. The findings of the ARC and ARCT on sub-letting, the landlord-tenant relationship, and other issues were upheld.
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