1971 (2) TMI 132 - SC - Indian Laws

Summary

Issues:
- Interpretation of U.P. (Temporary) Control of Rent and Eviction Act, 1947
- Validity of agreement between tenant and landlord
- Applicability of Section 1-A of the Act
- Consideration of public policy in contractual agreements

Analysis:

The case involved an appeal regarding the entitlement of a tenant to the benefit of Section 3 of the U.P. (Temporary) Control of Rent and Eviction Act, 1947. The tenant had occupied a shop belonging to the landlord and an agreement was made for the tenant to vacate temporarily for construction purposes. The key issue was whether the landlord could waive the benefit of Section 1-A of the Act through this agreement.

The Act aimed to protect tenants from arbitrary eviction and regulate rent control. Section 1-A exempted buildings constructed after January 1, 1951, from the Act's provisions. The central question was whether the landlord could waive this exemption through a contractual agreement, considering the legality and public policy implications of such a waiver.

The court analyzed the Indian Contract Act's Section 23, which deems agreements void if they defeat any law's provisions. The court examined whether the agreement between the tenant and landlord, waiving the benefit of Section 1-A, was contrary to public policy or unlawful. The court emphasized that agreements contrary to public policy or involving illegal acts are void.

The court referred to legal principles stating that parties can waive statutory benefits unless expressly prohibited by law or against public policy. The court held that the landlord could waive the benefit of Section 1-A, as it was intended for the landlord's advantage, and the agreement did not involve any illegal act or public policy violation. Therefore, the court allowed the appeal, setting aside the High Court's judgment and restoring the trial court's decision in favor of the tenant.

In conclusion, the judgment clarified the legality of agreements waiving statutory benefits under the U.P. Rent Control Act and emphasized the importance of analyzing agreements in light of public policy considerations.