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2005 (10) TMI 613 - SC - Indian Laws

Issues Involved:

1. Legality of the landlord's actions in seeking eviction and cancellation of permissions.
2. Interpretation of the term "right" under Rule 153(1) of the Petroleum Rules, 1976.
3. Status of the appellant as a tenant holding over or a tenant at sufferance.
4. Applicability of statutory tenancy protections under the Rent Control Act.
5. Whether the landlord's acceptance of rent post-lease expiry constitutes a new tenancy.
6. Jurisdiction of the High Court under Article 226 of the Constitution of India.
7. Right to the site for storing petroleum under Rule 153(1) of the Petroleum Rules, 1976.

Detailed Analysis:

1. Legality of the Landlord's Actions:

The landlord issued a notice to the appellant seeking vacant possession and subsequently filed a suit for eviction and possession, which was dismissed for non-prosecution. The landlord then sought cancellation of the appellant's petroleum storage permission and approached the authorities to revoke the No Objection Certificate (NOC). The High Court allowed the landlord's writ petition, holding that the appellant could be dispossessed only under due process of law.

2. Interpretation of "Right" under Rule 153(1) of the Petroleum Rules, 1976:

The appellant argued that the "right" under Rule 153(1) should be interpreted broadly to include mere possession. The Supreme Court, however, held that the term "right" means a legal right to continue on the land. Mere possession without legal right does not fulfill the requirement of Rule 153(1). The Court emphasized that lawful possession must have a legal foundation.

3. Status of the Appellant as a Tenant Holding Over or a Tenant at Sufferance:

The appellant claimed to be a tenant holding over, asserting that the landlord's acceptance of rent implied acquiescence. The Supreme Court, referencing multiple precedents, held that mere acceptance of rent post-lease expiry does not create a new tenancy. The appellant was deemed a tenant at sufferance, akin to a trespasser, with no independent right to continue in possession.

4. Applicability of Statutory Tenancy Protections:

The appellant argued for statutory protection under the Rent Control Act, claiming the presence of superstructures on the leased land. The Supreme Court found that the lease was for vacant land, and the appellant's constructions did not convert the lease into one of a building. Consequently, the Rent Control Act protections were not applicable.

5. Acceptance of Rent Post-Lease Expiry:

The Court examined whether the landlord's acceptance of rent post-lease expiry constituted a new tenancy. It concluded that acceptance of rent under protest or for damages does not amount to assent for a new tenancy. The landlord's clear communication that rent was accepted as compensation for illegal occupation negated any implication of a new tenancy.

6. Jurisdiction of the High Court under Article 226:

The appellant contended that the High Court should not have issued a mandamus not to renew the licence before the concerned authority's decision. The Supreme Court upheld the High Court's jurisdiction, stating that the landlord's writ petition was maintainable and the High Court was correct in its intervention.

7. Right to the Site for Storing Petroleum:

The Supreme Court interpreted the "right to the site" under Rule 153(1) as a legal right to the land. The appellant's continued occupation post-lease expiry did not constitute a legal right. The Court affirmed that lawful possession requires a legal relationship between the landlord and tenant, which was absent in this case.

Conclusion:

The Supreme Court dismissed the appeal, affirming the High Court's judgment. It held that the appellant had no legal right to the site post-lease expiry, was not entitled to statutory tenancy protections, and the landlord's acceptance of rent did not create a new tenancy. The Court clarified the interpretation of "right" under Rule 153(1) of the Petroleum Rules, emphasizing the necessity of a legal foundation for lawful possession.

 

 

 

 

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