2008 (5) TMI 750 - SC - Indian Laws

Summary

Issues involved: Interpretation of rent provisions u/s 16(9) and eviction grounds u/s 21(1)(a) of the U.P. Urban Buildings Act, 1972; Validity of High Court's interim rent direction u/s Article 226/227.

Interpretation of rent provisions u/s 16(9): The appellant, a tenant, and the respondents, landlords, were involved in a dispute regarding rent fixation under Section 16(9) of the U.P. Urban Buildings Act, 1972. The landlords sought eviction of the tenant under Section 21(1)(a) of the Act, claiming own use of the premises. The High Court, in a writ petition, issued an interim direction for the tenant to pay increased rent, justifying it as aligning with market rates. However, the Supreme Court held that the High Court cannot arbitrarily assess rent, disregarding statutory provisions for rent fixation and increase. Judicial review powers cannot override specific statutory provisions.

Interpretation of eviction grounds u/s 21(1)(a): The landlords' eviction petition based on bona fide own use was rejected by lower authorities. The High Court, in a writ petition, was approached by the landlords seeking eviction order. The Supreme Court emphasized that when a writ petition challenges eviction refusal, there is no justification for directing payment of higher rent. The Court highlighted the need for evidence and relevant circumstances to assess rent reasonably, emphasizing that arbitrary rent assessments are contrary to law.

Validity of High Court's interim rent direction u/s Article 226/227: The Supreme Court scrutinized the High Court's power to increase rent in writ petitions. It noted that in cases where tenants challenge eviction orders, the High Court may impose reasonable conditions, but these must not be arbitrary or oppressive. The Court differentiated between writ petitions by landlords and tenants, stating that while landlords' petitions do not warrant interim rent directions, tenants' petitions may allow for such directions as a condition of stay, subject to reasonableness and compliance with rent control legislation.