SUBHASH CHANDER & Ors. v. M/S BHARAT PETROLEUM CORPORATION LTD.(BPCL) & Anr.

Haryana (Control of Rent & Eviction) Act, 1973 – Burmah Shell (Acquisition of Undertakings) Act, 1976 – ss. 3, 5, 7 and 11 – Transfer of Property Act, 1882 – Suit for possession by the appellant – Maintainability of, before the Rent Controller under the 1973 Act or the jurisdiction of the civil court – Property owned by the predecessor in interest of the appellant, leased out to M/s Burmah Shell Company for 20 years – Renewal option for another 20 years was availed – However, before the expiry of the initial lease period, the Central Government enacted Burmah Shell (Acquisition of Undertakings) Act, 1976 and took over the rights of the lessee and transferred the same to the respondent-government company in exercise of its power under the Act 1976 – After expiry of lease period, notice served on the respondents for terminating the tenancy and thereafter, suit for possession filed by the appellant against the respondent for vacating the suit property – Trial court held that the appellants were entitled for the restoration of possession of the suit land – In appeal thereagainst, it was held that the civil court has no jurisdiction to try the suit and respondents are in possession of the suit property as statutory tenant and can be evicted from the suit property only under the provisions of the Act 1973 – High Court upheld the same – On appeal, held: By virtue of the statutory enactment of Burmah Shell Act, 1976, the pre-existing tenancy rights held by Burmah Shell with the appellants vested with the Central Government and by virtue of s. 7, the said rights in turn stood vested in the respondents-government company and they statutorily became the tenant of the appellants – Jurisdiction of a civil court is impliedly barred from the field covered specifically by the provisions of the Act 1973 and that being the complete code determining the rights of a tenant/landlord to the exclusion of the other laws – Therefore, no error committed by the High Court in holding that even after the 108 SUBHASH CHANDER & ORS. v. M/S BHARAT PETROLEUM CORPORATION LTD.(BPCL) & ANR. 109 expiry of the lease term of the lease deed, the respondents became a statutory tenant and jurisdiction of the civil court is impliedly barred and could be evicted only under the provisions of the Act 1973. Dismissing the appeal, the Court HELD:1. By virtue of the statutory enactment of Burmah Shell (Acquisition of Undertakings) Act, 1976, the pre-existing tenancy rights held by Burmah Shell with the appellants stood transferred and vested with the Central Government and thereafter by operation of Section 7, the said rights in turn stood transposed and vested in the Government Company (Bharat Petroleum Corporation Ltd.) as the Government Company statutorily became the tenant of the appellants/plaintiffs. [Para 19][117-F-G]

2. Even if the lease period is determined by forfeiture under the Transfer of Property Act, 1882, still the tenant continues to be a tenant that is to say that there is no forfeiture in the eyes of law and the tenant becomes liable to be evicted and the forfeiture comes into play only if he has incurred a liability to be evicted under the State Rent Act and not otherwise and further held that even after the expiry of the period of contractual tenancy, the tenant can be evicted only in terms of provisions of the State Rent Act which is applicable in reference the subject property in question. [Para 20][119-C-E]

3. A perusal of the scheme of the Act 1976 would show that from the appointed day, right, title and interest of Burmah Shell with effect to Section 5(1) stood transferred and vested with the Central Government and by virtue of Section 7(2), the vesting of tenancy rights with the Central Government stood further transposed and vested in Bharat Petroleum Corporation Ltd. And that became a statutory tenant by virtue of Section 7(3) of the Act. To that extent, Section 11 of the Act has an overriding effect to the provisions of other laws. That being so, the jurisdiction indeed of a civil Court is impliedly barred from the field covered specifically by the provisions of the Haryana (Control of Rent & Eviction) Act, 1973 and that being the complete code determining the rights of a tenant/landlord to the exclusion of the other laws, A B C D E F G H 110 SUPREME COURT REPORTS [2022] 8 S.C.R. there is no error in the view expressed by the High Court in the impugned judgment holding that the jurisdiction of the Civil Court is held to be barred and remedial mechanism for ejectment could be possible only under the provisions of the Act 1973. [Para 21][119-E-H]

4. In the given circumstances, no error was committed by the High Court in arriving to a conclusion that even after the expiry of the lease term of the lease deed, the respondents became a statutory tenant and jurisdiction of the Civil Court is impliedly barred and could be evicted only under the provisions of the Act 1973. [Para 25][120-F] Depot Superintendent, H.P. Corpn. Ltd. and Another v. Kolhapur Agricultural Market Committee, Kolhapur (2007) 6 SCC 159 : [2007] 7 SCR 1061; Ram Bharosey Lal Gupta (Dead) by LRs and Others v. Hindustan Petroleum Corporation Limited and Another (2013) 9 SCC 714 : [2013] 6 SCR 323; Bharat Petroleum Corporation Limited v. Rama Chandrashekhar Vaidya and Another (2014) 1 SCC 657 : [2013] 5 SCR 674; V. Dhanapal Chettiar v. Yesodai Ammal (1979) 4 SCC 214 : [1980] 1 SCR 334; Shyam Lal v. Deepa Dass Chela Ram Chela Garib Dass (2016) 7 SCC 572 : [ 2016] 5 SCR 893 - referred to. Case Law Reference [2007] 7 SCR 1061 [2013] 6 SCR 323 [2013] 5 SCR 674 [1980] 1 SCR 334 [2016] 5 SCR 893 referred to referred to referred to referred to referred to Para 12 Para 12 Para 12 Para 13 Para 13 CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7517 of 2012. From the Judgment and Order dated 08.07.2009 of the High Court of Punjab & Haryana at Chandigarh in R.S.A. No.3061 of 2006. A B C D E F G H SUBHASH CHANDER & ORS. v. M/S BHARAT PETROLEUM CORPORATION LTD.(BPCL) & ANR. 111 Manoj Swarup, Sr. Adv., Ankit Swarup, Neelmani Pant, Ms. A Vidisha Swarup, Rohit Kumar Singh, Advs. for the Appellants. V. Giri, Sr. Adv., Parijat Sinha, Ms. Pallak Bhagat, Rudra Dutta, Ms. Sanyukta Gupta, Devesh Mishra, Ms. Reshmi Rea Sinha, Ms. Akriti Jain, B. S. Bedi, Dinesh Verma, Krishna Kumar, Ms. Nandani Gupta, Dr. (Mrs.) Vipin Gupta, Advs. for the Respondents. The Judgment of the Court was delivered by RASTOGI, J.

1. The instant appeal has been preferred by the appellants/plaintiffs assailing the judgment dated 8th July, 2009, upholding the judgment and decree of the Court of appeal dated 28th March, 2006 holding that the Civil Court has no jurisdiction to entertain and try the suit for possession in reference to the subject property and the appropriate remedy available with the appellants is to initiate proceedings for eviction of the suit property under the provisions of the Haryana (Control of Rent & Eviction) Act, 1973 (hereinafter called as “Act 1973”).

2. The brief facts of the case manifest from the record are that the appellants filed a suit on the averment that their predecessor in interest Sh. Vinod Kumar was owner of the subject plot of land admeasuring 10,000 sq. feet in municipal limits, Kaithal bearing Municipal No.657/10. Undisputedly, the Act 1973 applies to the suit property in question.

3. The subject property was given on lease by late Vinod Kumar to M/s Burmah Shell Oil Storage Distributing Company Ltd. for a fixed period of 20 years at the rate of Rs.35/- per month vide lease dated 4th June, 1958 with effect from 1st April, 1958. The lease period initially was for 20 years and clause 10 of the lease contemplated renewal of the lease once for another 20 years. The lease period commenced from 1st April, 1958 for a period of 20 years expired on 1st April, 1978 and in terms of clause 10 of the lease deed, one extension was permissible and that renewal option for another period of 20 years was availed and that lease period also expired on 1st April, 1998.

4. At this stage, the appellants served a legal notice on the respondents dated 30th January, 1998 in which although Section 106 of the Transfer of Property Act, 1882 has not been specifically mentioned, but in pith and substance the notice was served for terminating tenancy of the respondents and later filed a civil suit for possession of the subject land on 7th August, 1998. B C D E F G H 112 SUPREME COURT REPORTS [2022] 8 S.C.R. A B C D E F G H

5. The preliminary objection was raised by the respondents regarding jurisdiction of the Civil Court in entertaining the suit and the defence throughout was that the Act 1973 is applicable on the subject property and they can be evicted only under the provisions of the Act 1973. It is not disputed that the subject land admittedly falls within the area administered by Municipal Committee, Kaithal and the rented land is situated within the urban area and covered under the provisions of the Act 1973.

6. That before expiry of the period of lease of 20 years, the Central Government enacted Burmah Shell (Acquisition of Undertakings) Act, 1976 (hereinafter called as “Act 1976”), pursuant to which the leasehold rights were taken over by the respondents/defendants. The option of renewal of lease for another period of 20 years was availed by the respondents in terms of clause 10 of the lease deed dated 4th June, 1958. The case of the appellants was that after lease expired on 1st April, 1998, the possession of the respondents on the suit property became unauthorised and without consent of the appellants and since the respondents failed to vacate the suit property despite a legal notice dated 30th January, 1998 being served, the appellants since required the suit property for their personal bonafide necessity for expanding their business, although had earlier filed an application under the Act 1973, as alleged on the wrong premise. It was pleaded that at least the provisions of the Act 1973 do not apply to the suit property as it is governed by the special Act enacted by the Central Government being Act 1976. In the alternative, it was pleaded by the appellants that respondent no.1 had sub-let the suit property to respondent no.2 without consent of the appellants and hence the appellants are entitled to possession of the suit property and also claimed mesne profits during pendency of the suit at the market rate, in addition to three years rent prior to lapse of the renewal period and prayed for a decree for possession and recovery of mesne profits.

7. The respondents filed written statement and it was admitted that the suit property had been leased out by late Vinod Kumar to M/s Burmah Shell Oil Storage Distributing Company Ltd. and later by the Act 1976, the leasehold rights were transferred to respondent no.1. It was also admitted that they exercised their renewal option in terms of clause 10 of the lease for a period of 20 years. At the same time, it was also averred that on expiry of the lease period, the respondents became the statutory tenant of the suit property and the appellants had been receiving rent from the respondents without any demur and further SUBHASH CHANDER & ORS. v. M/S BHARAT PETROLEUM CORPORATION LTD.(BPCL) & ANR. [AJAY RASTOGI, J.] 113 averred that the Civil Court has no jurisdiction to entertain and try the suit as the same is specifically barred by the provisions of the Act 1973. A

8. It was further stated that there was a relationship of landlord and tenant between the parties and the suit land is a rented land as defined under Section 2(h) of the Act 1973 and the disputes between landlord and tenant are to be adjudicated in accordance with the provisions of the Act 1973 and the respondents being in possession as a statutory tenant of the suit property, cannot be evicted except in accordance with the provisions of Section 13 of the Act 1973 and that apart the appellants had earlier filed a petition for ejectment against the respondents before the Rent Controller on the ground of subletting and personal necessity and that has been dismissed by the Rent Controller by order dated 3rd May, 1986. An appeal against the same also came to be dismissed by the appellate authority by order dated 18th March, 1987.

9. On the basis of the pleadings of the parties, the learned trial Court by a judgment and decree dated 13th March, 2002 held that the respondents are in unauthorised possession over the suit property w.e.f. 1st April, 1998 after notice dated 30th January, 1998 under Section 106 of the Transfer of Property Act, 1882 has been served for vacating the suit property holding the appellants entitled for restoration of possession of the suit land in question.

10. On appeal being preferred by the respondents, the Court of Appeal set aside the judgment and decree of the trial Court dated 13th March, 2002 by the judgment dated 28th March, 2006 and held that the Civil Court has no jurisdiction to entertain and try the suit and the respondents are in possession of the suit property as statutory tenant and can be evicted from the suit property only under the provisions of the Act 1973. The said order came to be challenged by the appellants/ plaintiffs in second appeal before the High Court and that came to be dismissed by the impugned judgment dated 8th July, 2009, being the subject matter of challenge in appeal before us.

11. The dispute between the parties pertains to as to whether the jurisdiction of the Civil Court is barred and the petition for possession filed by the appellants/plaintiffs will lie before the Rent Controller under the Act 1973.

12. Counsel for the appellants, Shri Manoj Swarup, Senior Advocate, submits that before the term of initial lease period of 20 years came to be expired on 1st April, 1978, the Central Government came B C D E F G H 114 SUPREME COURT REPORTS [2022] 8 S.C.R. A B C D E F G H with a special legislation, namely, the Burmah Shell (Acquisition of Undertakings) Act, 1976 and the High Court has failed to consider the effect of Section 11 of the Act 1976 which has an overriding effect and that excludes all other laws inconsistent with the provisions of the Act 1976, including the Act 1973 and further submits that the finding which has been recorded of the respondents being a statutory tenant under the Act 1973 is in contravention of Section 5(2) of the Act 1976 and in the absence of any fresh lease being executed by the parties only one renewal as per the lease deed originally executed dated 4th June, 1958, was permissible in law and that being availed and the term had expired on 1st April, 1998, no further extension was permissible in law and the respondents became trespassers after expiry of the lease period and the only remedy available with the appellants was to file a suit for possession of the suit property and in support of his submissions placed reliance on the judgments of this Court in Depot Superintendent, H.P. Corpn. Ltd. and Another v. Kolhapur Agricultural Market Committee, Kolhapur1, Ram Bharosey Lal Gupta(Dead) by LRs and Others v. Hindustan Petroleum Corporation Limited and Another2, Bharat Petroleum Corporation Limited v. Rama Chandrashekhar Vaidya and Another3.

13. Per contra, counsel for the respondents, Shri V. Giri, Senior Advocate, while supporting the findings recorded under the impugned judgment conceded that only one term of extension of lease of 20 years was permissible and that indeed was availed and stood expired on 1st April, 1998, but further submits that the respondents became statutory tenant thereafter under the Act 1973 and they could be evicted only by invoking Section 13 of the Act 1973 which undisputedly is applicable to the subject property and thus in the given circumstances the Civil Court at least has no jurisdiction to try the suit. That being the finding recorded by the first appellate Court and confirmed by the High Court on dismissal of second appeal preferred at the instance of the appellants under the impugned judgment being supported by the judgment of the Constitution Bench of this Court in V. Dhanapal Chettiar v. Yesodai Ammal4 followed in Shyam Lal v. Deepa Dass Chela Ram Chela Garib Dass5, what is being urged by learned counsel for the appellants is without substance