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)