The Supreme Court on Wednesday set aside order of eviction of government officers from Sujan Singh Park flats near New Delhi's Khan Market [Union of India v. Sri Sobha Singh and Sons].
A Bench of Justice Sanjoy Karol and Justice PK Mishra allowed an appeal moved by the Central government in 2022 challenging a Delhi High Court verdict allowing eviction.
The Delhi High Court in January 2020 had affirmed the decision of the Additional Rent Control Tribunal directing the Centre to make good the unpaid arrears of rent owed to respondents, Sir Sobha Singh and Sons Private Limited.
Today, the top court ruled that Delhi Rent Control Act has no application in the present case and thus the rent controller could not have entertained the matter related to the payment of arrears.
The Court also said that the Government Grants Act, which is applicable to the case, does not provide for eviction on account of non-payment of rent.
"Equally, in the absence of any express stipulation in the lease deed providing for eviction on account of non-payment of rent, no such right can be inferred. The grant must operate according to its tenor and its silence cannot be converted into a ground ... The Respondent's right, therefore, is confined to recovery of rent in accordance with law. The appeal is allowed," the Court ruled.
When the matter was listed for the first time in 2022, the Central government had told the Court that bouncers were used to evict government officers from the properties.
The High Court order was stayed by the top court in April 2022.
The residential flats in North and South of Sujan Singh Park were rented out to the government at concessional rates as far back as in 1944 under a perpetual lease.
Out the 84 flats constructed by the company, the Central government was in possession of 13 flats, 41 servant quarters and 26 garages.
The government had paid rents up until 1989, but thereafter, due to many breaches by the respondent, a slew of litigation ensued, as per the Central government.
In 1998, the respondent filed an eviction petition before the Additional Rent Controller who ruled in favour of the respondent. The appeals right up to the Delhi High Court were also decided against the government, leading to the present appeal before the apex court.
The Central government submitted before the top court that as per Section 3 of the Grants Act, any government property demised in favour of a person in the form of a ‘Grant’ as per provisions of the Grants Act, stands excluded from the scope of application of the provisions of any other law.
"Therefore, any legislation which is contrary to the notions in the Government Grant, will not apply to a government property granted in favour of a specific person. It is therefore submitted that the provisions of the Grant Act will have an overriding effect over any other law, in force, which is contrary thereto," the plea said.
Hence, provisions Delhi Rent Control Act and Transfer of Property Act will not apply in the instant case, it was submitted.
"The Tribunal vide order dated 01.09.2007 erroneously held that the contested property was covered under the provisions of the Delhi Rent Control Act (DRCA). Moreover, the Hon’ble High Court affirmed the said finding vide order dated January 8, 2020. It is most reverentially submitted that the Grants Act is a special statute and so, it would prevail over other statutes and so, the provisions contained in the Grants Act will have an overriding effect on the provisions contained in the DRCA. Furthermore, it is submitted that the Transfer of Property Act, 1882 has expressly been excluded from the arena of Government Grants," the petition stated.