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Order XII Rule 6 of CPC

 10-Oct-2024

Source: Supreme Court   

Why in News? 

The Supreme Court has recently stated that under Order XII Rule 6 of the Civil Procedure Code, 1908 (CPC), judgments based on admissions must be clear and unambiguous. The court cautioned against using this rule for judgment if admissions contain mixed questions of fact and law, as it could prevent a party from challenging the matter on merits in appeal.  

  • Justices Sudhanshu Dhulia and Prasanna B. Varale held this in the matter of Rajesh Mitra @Rajesh Kumar Mitra & Anr. v. Karnani Properties Ltd . 

What was the Background of Rajesh Mitra @Rajesh Kumar Mitra & Anr. Versus Karnani Properties Ltd. Case? 

  • The premises in question are located at Room No. 208, 2nd Floor, 25A Park Street, Kolkata.  
  • The original tenant of the premises was S.K. Mitra who passed away in 1970. 
  • At the time of S.K. Mitra's death, the West Bengal Premises Tenancy Act, 1956 ("1956 Act") was in force. 
  • S.K. Mitra was survived by his wife, Usha Mitra, and two children (the present appellants) who were aged 2 and 5 years at the time of his death. 
  • Usha Mitra continued to pay rent for the premises after S.K. Mitra's death. 
  • The West Bengal Tenancy Premises Act, 1997 ("1997 Act") came into force on 10th July 2001, repealing the 1956 Act. 
  • Usha Mitra passed away on 03rd  November 2009. 
  • The respondent-landlord filed an eviction suit against the appellants (children of S.K. Mitra) before the Calcutta High Court. 
  • The landlord contended that the appellants' tenancy had expired in 2014, five years after Usha Mitra's death, as per Section 2(g) of the 1997 Act. 
  • The appellants claimed that they had inherited tenancy rights along with their mother in 1970 under the 1956 Act, which was then in force. 
  • The case centers on the interpretation of Section 2(g) of the 1997 Act and its applicability to tenancies that devolved under the 1956 Act. 

What were the Court’s Observations? 

  • The court noted that Order XII Rule 6 of the Civil Procedure Code, 1908 is meant for speedy disposal of suits in certain cases but should be exercised with caution. 
  • The court observed that a judgment cannot be delivered based on an unclear and ambiguous admission. 
  • The court held that when testimony supplied in an admission contains mixed questions of fact and law, such an admission against the law cannot be considered an "admission" as envisioned under Order XII Rule 6. 
  • The court emphasized that unless there is a clear, unambiguous, unequivocal, and unconditional admission, courts should not exercise their discretion under Order XII Rule 6. 
  • The court observed that judgment on admissions is without a trial, which may preclude a party from challenging the matter on merits in the court of appeal. 
  • The court noted that the phrase "or from the date of coming into force of this Act, whichever is later" in Section 2(g) of the 1997 Act was a matter of contention and interpretation. 
  • The court observed that a new statute which touches upon existing rights cannot be retrospective without an express provision or necessary implication expressing the clear intent of the Legislature. 
  • The court held that the enforcement of a new statute ipso facto will not take away rights already accrued under a repealed statute, unless this intention is reflected in the new statute. 
  • The court emphasized that courts can, and must, differ from the literal meaning of words if the reading of any provision provides absurd results. 
  • The court observed that ambiguous drafting leads to manifold problems and generates lengthy litigation. 
  • The court noted that there is no clarity in the 1997 Act to suggest that it extinguishes the rights of all tenants who inherited tenancy rights under the Old Act retrospectively. 
  •  The court held that statutory laws operate from the date of their enforcement, i.e., prospectively, unless the legislature's intention to make a law retrospective is shown clearly and unambiguously in the statute itself. 

What is Order XII of CPC? 

About: 

  • Order XII of CPC lays down the process of admission.  
  • Admissions have become an important part for both the civil and criminal cases in India.  
  • Admissions have helped to minimize the litigation process and speedy disposal of cases.  
  • The courts have the discretionary power to pass the decree based on admission.  

Admission: 

  • Admission is not defined under CPC.  
  • Admission is defined under section 15 of Bharatiya Sakshya Adhiniyam, 2023 as a statement made by witnesses which shows inference to any fact in issue or relevant fact in a case.    
  • According to this Section, Admission can be in the form of a document, oral statement or may be contained in an electronic form. 

Rule 6 of Order XII of CPC: 

  • It deals with judgment on admissions. 
  • The court has the power to make an order or give judgment based on admissions of fact at any stage of a suit. 
  • Admissions of fact can be made either in the pleadings or otherwise. 
    • Such admissions may be made orally or in writing. 
  • The court can act on these admissions either on the application of any party or of its own motion. 
  • The court is not required to wait for the determination of any other question between the parties before acting on admissions. 
  • The court may make such order or give such judgment as it thinks fit, having regard to the admissions made. 
  • When a judgment is pronounced under this rule, a decree shall be drawn up in accordance with the judgment. 
  • The decree drawn up under this rule shall bear the date on which the judgment was pronounced. 
  • The court's power to act on admissions is discretionary, as indicated by the use of the word "may" in the rule. 
  • This rule allows for expedited resolution of issues where facts are not in dispute, potentially shortening the litigation process. 

The West Bengal Premises Tenancy Act, 1997 

  • Definition Clause (Section 2): 
    • Section 2(g) deals with Tenant 
      • A tenant is defined as any person who pays rent for premises, or would be liable to pay rent but for a special contract. This includes individuals who continue occupying the premises after their tenancy has ended. 
      • In the event of a tenant's death, certain family members may be considered tenants for up to five years if they meet specific criteria: 
      • They must have been ordinarily living with the tenant as family members and dependent on them until the tenant's death. 
        • They must not own or occupy any other residential premises. 
        • Eligible family members include the tenant's spouse, children, parents, and widows of predeceased sons. 
      • The five-year limit does not apply to the tenant's spouse if they meet the criteria of ordinarily living with and being dependent on the tenant, and not owning or occupying other residential premises. 
      • Eligible family members have a right of preference for tenancy in a new agreement for the same premises, applicable to both residential and non-residential properties, provided they meet the specified conditions. 
  • Tenant Protection Against Eviction (Section 6): 
    The Controller can order eviction only on specific grounds: 
    • Subletting without landlord's written consent 
    • Default in rent payment for 3 months within 12 months 
    • Premises required for landlord's building/rebuilding 
    • Landlord needs premises for own occupation 
    • Tenant fails to vacate after giving notice 
    • Tenant violates Transfer of Property Act provisions 
    • Illegal use of premises 
    • Tenant causes material deterioration 
    • Nuisance to neighbors 
    • Tenant acquires another house/flat 
    • Landlord is in Armed Forces and needs premises 
    • Tenant doesn't reside for most of the year 
  • Rent Provisions: 
    • Fair Rent (Section 17) 
      • For premises built after 1984: 10% of construction cost plus land value. 
      • For 20+ year tenancies pre-1984: Up to 3x the rent as of 1.7.1976. 
      • For 10-20 year tenancies pre-1984: Up to 2x the rent as of 1.7.1986. 
      • Automatic 5% increase every 3 years (Section 18). 
    • Rent Payment (Section 21) 
      • Tenant can deposit rent with Controller if:  
        • Landlord refuses to accept 
        • Uncertainty about rightful recipient 
      • Must be deposited within prescribed timeframes 
  • Essential Services (Section 27): 
    • Landlord cannot cut off essential services without Controller's permission 
    • Penalty up to ₹5,000 for violation 
    • Essential services include water, electricity, sanitation 
  • Repairs (Section 35): 
    • Landlord must make tenantable repairs 
    • If landlord fails, tenant can:  
      • Serve notice 
      • Get Controller's permission to make repairs 
      • Deduct repair costs from rent (max 50% of annual rent) 
  • Subletting (Section 26): 
    • Requires landlord's written consent 
    • Must notify landlord within one month of subletting 
    • Pre-existing subtenancies must be notified within 6 months 
  • Controller's Powers (Section 39): 
    • Can summon witnesses and documents 
    • Inspect premises 
    • Appoint assessors/valuers 
    • Grant temporary injunctions 
    • Execute orders like civil court decrees 
  • Appeals (Section 43): 
    • 30-day window to appeal Controller's orders 
    • Appeals lie to Tribunal or High Court 
    • Civil courts' jurisdiction barred on matters under Controller 
  • Important Timelines: 
    • Eviction notice: One month (Section 6(4)) 
    • Rent deposit: Within 15 days of refusal (Section 21) 
    • Appeal filing: Within 30 days of Controller's order 
    • Application hearing: To be completed within 6 months (Section 42) 

Constitutional Law

Central Administrative Tribunal

 10-Oct-2024

Source: Allahabad High Court 

Why in News? 

Recently, the Allahabad High Court in the matter of Arun Kumar Gupta v. Union of India Thru.Secy.Ministry of Chemical and Fertilizer Deptt. Chemical Petro Chemical and Ors., has held that the Administrative Tribunals are the substitutes for the Civil Court and has the same powers as of the Civil Courts under the Code of Civil Procedure, 1908 (CPC). 

What was the Background of the Arun Kumar Gupta v. Union of India Thru.Secy.Ministry of Chemical and Fertilizer Deptt. Chemical Petro Chemical and Ors Case? 

  • In the present case, the petitioner filed a writ petition before the Allahabad High Court against the order passed by the Central Administrative Tribunal (CAT) in the Transfer Application. 
  • Certain queries were raised by the petitioner to the respondent part. 
  • The issues raised in the writ were: 
    • Whether its powers are Akeen to the powers of judicial review, available to the High Court under Article 226 in the Constitution of India,1950 (COI) or they are Akeen to a Court or a Tribunal of first instance, such as, the Civil Court. 
    • Whether the Tribunal has misdirected itself by proceeding to decide the Original Application as if it was exercising the powers of judicial review? 

What were the Court’s Observations? 

  • The Allahabad High Court observed that that: 
    • The purpose of the Administrative Tribunals Act, 1985 (AT Act) is to provide speedy trials to the State and Central Government employees whenever there is any dispute regarding service. 
    • The powers given to tribunals under the AT Act are similar to the Civil Court and the act does not provide the power of judicial review to the tribunals as provided to the High Court under Article 226 of the Constitution of India (COI). 
    • The High Court under Article 226 of the COI only deals with summary proceedings and not with the other aspects such as evidence and facts finding. 
    • The present order passed is a summary proceeding and the High Court has the power to exercise its power under Article 226 in regard to the present application. 
  • Therefore, the Allahabad High Court directed the Tribunal to rehear the Transfer Application.

What is the Landmark Judgement Referred to in the Present Case?

  • L. Chandra Kumar v. Union of India, (1997): 
    • In this case the court held that the Tribunal would act as the only court of first instance in respect of the areas of law for which they have been constituted.

What is Central Administrative Tribunal (CAT)?

About: 

  • CAT is a specialized judicial body established under Article 323-A of COI and AT Act to adjudicate disputes related to recruitment and service conditions of public servants.  
  • It has jurisdiction over service matters of employees of the Union government and other authorities under central government control.  
  • The tribunal comprises a chairman (a sitting or retired High Court Judge) and both Administrative and Judicial Members, chosen for their expertise in relevant areas.  
  • CAT operates through 17 regular benches and 21 circuit benches across India, aiming to provide speedy and cost-effective justice to aggrieved public servants.  
  • While not bound by CPC, CAT adheres to principles of natural justice in its proceedings and possesses contempt powers equivalent to a High Court.  
  • The tribunal's independence is safeguarded by providing its Chairman and Members with service conditions comparable to High Court Judges.  
  • Appeals against CAT orders can be made to the respective High Court via writ petitions under Articles 226/227 of COI.

Jurisdiction and Powers of CAT:

  • Chapter III of AT Act states the provisions regarding jurisdiction and powers of the CAT as: 
    • The CAT has jurisdiction over: (Section 14)  
      • Recruitment and service matters concerning civil services/posts under the Union  
      • Service matters of All India Service officers  
      • Service matters of civilian defense employees  
    • State Administrative Tribunals have jurisdiction over: (Section 15)  
      • Recruitment and service matters concerning civil services/posts under the State  
      • Service matters of employees of State-controlled local authorities and corporations  
    • Tribunals have the powers of a civil court under the Code of Civil Procedure, 1908 for: (Section 22)  
      • Summoning and enforcing attendance of persons  
      • Requiring discovery and production of documents  
      • Receiving evidence on affidavits  
      • Issuing commissions for examination of witnesses or documents  
      • Reviewing decisions  
      • Any other matter prescribed

What is a Civil Court?

    • The Court which deals with the matters having civil dispute is known as civil court. 
    • The highest civil court is the Court of the District Judge. 
    • The other subordinate civil courts under the Court of District Judge (District Court) are: 
      • Court of Sub Judge 
      • Courts of Additional Sub Judge 
      • Courts of Munsif 
      • Small Cause Courts 
    • Most of the cases are filed before the Courts of Munsif and the District Court has the authority to transfer such cases. 
    • The District court takes the appeals as well as the cases that are filed directly before the District Court. 
    • The disputes that fall within the purview of civil courts are generally property, divorce, contract, breach of agreement or landlord tenant disputes.