Civil Appeal Nos
708 to 710 Of 1978
Appeals by Special Leave from the Judgment and order dated 18 2 1978 of the Bombay High Court in Special Civil Application Nos
256474 599778 and 599978
VM Tarkunde CK Ratnaparkhi VN Ganpule Mrs Veena Devi Khanna and Miss Manik Tarkunde for the Appellants in all the appeals
Soli J Sorabjee SK Mehta PN Puri and EMS Anam for the Respondents 1 to 6 in CAs 708 to 7101978
PH Parekh CB Singh BL Verma Miss V Caprihan Hemant Sharma and Raian Karanjawala for the Respondent No 5 in CA 71078
The Judgment of the Court was delivered by CHINNAPPA REDDY J
The respondents in Civil Appeal No 708 of 1978 Mamanchand Ratilal Agarwal and others who are the landlords of premises bearing door No 16 in Nawa Bazar Area Kirkee Cantonment filed civil suit No 1730 of 1964 against the appellant tenant for recovery of possession and arrears of rent under the provisions of the Bombay Rents Hotel and Lodging House Rate Control Act 1947
The suit was decreed
There was an appeal by the tenant
It resulted in a compromise decree dated July 12 1967 by which some time was given to the tenant to vacate the premises
As the tenant failed to vacate the premises within the time given to him the landlords were compelled to take out execution
On April 29 1969 in the case of Indu Bhusan Bose vs Rama Sundari Devi  Anr this Court held that Parliament alone had and the State Legislature did not have the necessary competence to make a law in any regard to the regulation of house accommodation in Cantonment  areas
The expression regulation of house accommodation was interpreted as not to be confined to allotment only but as extending to other incidents such as termination of existing tenancies and eviction of persons in possession of house accommodation etc
To get over the situation created by Indu Bhusan Bose vs Rama Sundari Devi  Anr
on December 29 1969 the Central Government issued a notification under Section 3 of the  extending the provisions of the Bombay Rents Hotel and Lodging House Rates Control Act 1947 to the Kirkee and other Cantonment areas
On June 2 1972 the Parliament also 228 enacted Act 22 of 1972 amending the Cantonments Extension of Rent Control Law Act 1957 purporting to enable the Central Government to make the rent control laws in the several States applicable to Cantonment areas from dates anterior to the dates of notification and further purporting to validate certain pre existing decrees
In the meanwhile taking advantage of the decision in the case of Indu Bhusan vs Rama Sundari Devi  Anr
supra the appellant tenant filed Miscellaneous Application No 597 of 1970 for a declaration that the decree obtained against him was a nullity and incapable of being executed
This application was allowed by the Court on November 15 1971
But after the enactment of Act 22 of 1972 on January 11 1973 the landlords filed Darkhast No 104 of 1973 to execute the decree in their favour
The tenant raised various objections
One of the objections was that subsequent to the compromise decree there was a fresh agreement of lease between the landlords and himself
This was denied by the landlords
Another objection was that the provisions of the Amending Act 22 of 1972 were not extensive enough to save the decree dated July 12 1967
The third objection was that in any case the decision in miscellaneous application No 597 of 1970 holding the decree to be a nullity operated as res judicata between the parties
The first of the objections was left open by all the Courts for future adjudication
The second and third objections alone were considered for the time being
In the judgment under appeal the High Court over ruled the second and third objections of the tenant and hence this appeal by special leave
The first question for our consideration is whether the compromise decree dated July 12 1967 is saved by Amending Act 22 of 1972 Before the decision of this Court in Indu Bhusan Bose vs Rama Sundari Devi  Anr supra there was a conflict of views on the question whether Entry 3 of List I of Schedule VII to the Constitution which enabled Parliament to legislate in regard to the regulation of housing accommodation including the control of rents in Cantonment areas was wide enough to include the subject of relationship of landlord and tenant of buildings situated in Cantonment areas
The High Courts of Bombay Nagpur and Patna had taken the view that regulation of the relationship of landlord and tenant did not fall within Entry 2 of List I of the Seventh Schedule to the Govt
Of India Act 1935 which corresponded to Entry 3 of List I of Seventh Schedule to the Constitution and that the Provincial Legislature was competent to legislate even in regard to the regulation of the relationship between landlord and tenant in Cantonment areas by virtue of Entry 21 of List II of the 229 Seventh Schedule to the Govt
Of India Act 1935which corresponded to Entry 18 of the List II of the Seventh Schedule to the Constitution
On the other hand the High Courts of Calcutta and Rajasthan held that the power of the State Legislature to legislate in respect of landlord and tenant of buildings was to be found not in Entry 18 of List II but in Entries 6 7 and 13 of List III of the Seventh Schedule to the Constitution and that such power was circumscribed by the exclusive power of Parliament to legislate on the same subject under Entry 3 of List I The view expressed by the Calcutta and Rajasthan High Courts was accepted as correct by this Court in Indu Bhusan Bose vs Rama Sundari Devi  Anr
supra But even before the decision of this Court in Indu Bhusan Bose vs Rama Sundari Devi  Anr
supra Parliament appeared to take view of the Calcutta and Rajasthan High Courts as the correct view and proceeded to enact the  by Section 3 of which the Central Government was enabled by notification in the official Gazette to extend to any Cantonment with such restrictions and modifications as it thought fit
Any enactment relating to the control of rent and regulation of house accommodation which was in force on the date of the notification in the State in which the Cantonment was situated
Though this Act came into force on December 18 1957 no notification was issued extending the provisions of the Bombay Rents Hotel and Lodging House Rates Control Act 1947 to Kirkee and other Cantonment areas within the State of Bombay until 1969
Apparently such a notification was thought unnecessary in view of the fact that the Bombay Act was supposed to operate within the said Cantonment areas because of the consistent view taken by the Bombay High Court regarding the applicability of the Bombay Act to such areas
But the position was upset as a result of the decision of this Court in Indu Bhusan Bose vs Rama Sundari Devi  Anr
supra
Thereafter it became necessary that a notification under section 3 of the Cantonment Extension of Rent Control Laws Act 1957 should be issued
It was accordingly done on December 29 1969
But it was soon realised that the entire problem was not thereby solved since all such notification as the one issued on December 29 1969 could only be prospective and could not save decree which had already been passed
Amending Act 22 of 1972 was therefore enacted for the express purpose of saving decrees which had already been passed
The statement of objects and reasons of the amending act stated  
But these notifications could be issued only prospectively and could not save the decrees already passed
A number of representations had been received 230 from and on behalf of tenants and tenants  associations ventilating their grievances in this regard
It was accordingly proposed to amend section 3 to empower the Government to extend to any Cantonment any enactment relating to the control of rent and regulation of house accommodation in force in the State in which the Cantonment was situated either from the commencement of such enactment or from 26 1 1950 the date when the Constitution came into force whichever was later and to save decrees already passed under the enactment deemed to have been in force in the Cantonment before such extension
 By section 2 of the Amending Act of 1972 the Principal Act of 1957 was itself deemed to have come into force on January 26 1950
Original section 3 was renumbered as sub section 1 and the words on the date of the notification were omitted and were deemed always to have been omitted
New sub sections 2 3 and 4 were introduced and they are as follows 2 The extension of and enactment under sub section 1 may be made from such earlier or future date as the Central Government may think fit Provided that no such extension shall be made from a date earlier than a the commencement of such enactment or b the establishment of the cantonment or c the commencement of this Act whichever is later
3 Where any enactment in force in any State relating to the control of rent and regulation of house accommodation is extended to a cantonment from a date earlier than the date on which such extension is made hereafter referred to as the earlier date such enactment as in force on such earlier date shall apply to such cantonment and where any such enactment has been amended at any time after the earlier date but before the commencement of the Cantonments Extension of Rent Control Laws Amendment Act 1971 such enactment as amended shall apply to the cantonment on and from the date on which the enactment by which such amendment was made came into force
4 Where before the extension to a cantonment of any enactments relating to the control of rent and regula 231 tion of house accommodation therein hereafter referred to as the Rent Control Act i any decree or order for the regulation of or for eviction from any house accommodation in that cantonment or ii any order in the proceedings for the execution of such decree or order or iii any order relating to the control of rent or other incident of such house accommodation was made by any court tribunal or other authority in accordance with any law for the control of rent and regulation of house accommodation for the time being in force in the State in which such cantonment is situated such decree or order shall on and from the date on which the Rent Control Act is extended to that cantonment be deemed to have been made under the corresponding provisions of the Rent Control Act as extended to that cantonment as if the said Rent Control Act as so extended were in force in that Cantonment on the date on which such decree or order was made
The effect of the provisions of the Amending Act appear to us lo be very clear
Under section 3 of the unamended Act a notification could be issued extending a State Legislation to a Cantonment area with effect from the date of the notification
As a result of the introduction of sub section 2 of section 3 the notification can be given effect from an anterior date or a future date but it cannot be made effective from a date earlier than the commencement of the State Legislation or the establishment of the Cantonment or the commencement of the Cantonment Extension of Rent Control Laws Act 1957
section
3 is merely consequential to sub
section
2 in that it provides that a State Legislation when extended to a Cantonment area from an anterior date such legislation is to stand extended with all the amendments to such State Legislation made after such anterior date but before the commencement of the 1972 Amending Act the amendments being applicable as and when they come into force
Sub s 4 makes provision for the saving of decrees or orders for the regulation of or for eviction from any house accommodation in a Cantonment made before the extension of the State Legislation to the Cantonment provided certain conditions are fulfilled
One condition is that the decree or order must have been made by any Court Tribunal or other authority in accordance with a law for the control of rent and regula 232 tion of house accommodation for the time being in force in the State in which such Cantonment is situated
In other words the decree or order must have been made by the wrong application of the State legislation to the Cantonment area
If a decree or order has been made by such wrong application of the State Legislation to the Cantonment area it shall be deemed with effect from the date of the notification to have been properly made under the relevant provisions of the State Legislation
Shri VM Tarkunde learned Counsel for the appellant urged that sub section
4 had to be read in the context of sub section 2 and 3 and that it was to be applied only to cases where a notification issued under sub section 1 was given retrospective effect under the provisions of sub section 2
We see no justification for confining the applicability of sub section 4 to cases where notifications are issued with retrospective effect under sub
section
Sub section 4 in terms is not as confined
It applies to all cases of decrees or orders made before the extension of a State Legislation to a Cantonment area irrespective of the question whether such extension is retrospective or not
The essential condition to be fulfilled is that the decree or order must have been made as if the State Legislation was already in force although strictly speaking it was not so in force
In our view sub
section
4 is wide enough to save all decrees and orders made by the wrong application of a State rent control and house accommodation legislation to a Cantonment area though such State Legislation could not in law have been applied to Cantonment areas at the time of the passing of the decrees or order
We therefore hold that the decree obtained by the respondents is saved by the provisions of section 3 4 sub section 4 of the Cantonment Extension of Rent Control Laws Act of 1957
as amended by Act 22 of 1972
The second submission of the learned counsel for the appellant was that the decision of the executing Court in Miscellaneous Application No 597 of 1970 declaring the decree to be a nullity separated as res judicata between the parties
The learned counsel relied upon the following observations of this Court in Mathura Prasad Bajoo Jaiswal  ors
vs Dessibai NB Jeejeebhoy1 The matter in issue if it is one purely of act decided in the earlier proceeding by a competent court must in a subsequent litigation between the same parties be regarded as finally decided and cannot be reopened
A mixed question of law and fact determined in the earlier proceeding between the same parties may not for the reason be questioned in a subsequent proceeding between 233 the same parties
But where the decision is on a question of law ie the interpretation of a statute it will be res judicata in a subsequent proceeding between the same parties where the cause of action is the same for the expression the matter in issue  in section 11 Code of Civil Procedure means the right litigated between the parties ie the facts on which the right is claimed or denied and the law applicable to the determination of that issue
Where however the question is one purely of law and it relates to the jurisdiction of the Court or a decision of the Court sanctioning something which is illegal by resort to the rule of res judicata a party affected by the decision will not be precluded from challenging the validity of that order under the rule of   res judicata for a rule of procedure cannot supersede the law of the land
In the very observations relied upon by the learned counsel for the appellant the last sentence is clearly against the appellant
The matter becomes clear if certain observations made earlier in the very judgment are considered
They are A question relating to the Jurisdiction of a Court cannot be deemed to have been finally determined by an erroneous decision of the Court
If by an erroneous interpretation of the statute the Court holds that it has no jurisdiction the question would not lin our judgment operate as res judicata
Similarly by an erroneous decision if the Court assumes jurisdiction which it does not possess under the statute the question cannot operate as res judicata between the same parties whether the cause of action in the subsequent litigation is the same or otherwise
In that case the appellant who had a lease of an open land for construction of buildings had applied for determination of standard rent under the Bombay Rents Hotel and Lodging House Rates Control Act 1947
The application was rejected on the ground that the Act did not apply to open land let for construction
The view was confirmed by the High Court
Later in another case the view taken by the High Court was over ruled by the Supreme Court and it was held that the Act applied to open land let out for construction The appellant once again filed an application for determination of standard rent
The lower Courts and the High Court held that the previous decision operated as res judicata between the parties
The Supreme Court reversed the view of the lower courts and the High Court
It 16 189SCI80 234 was held that the earlier decision that the Civil Judge had no jurisdiction to entertain the application for determination of standard rent  was wrong in view of the judgment of the Supreme Court
If the decision in the previous proceeding was to be regarded as res judicata it would assume the status of a special rule of law applicable to the parties relating to the jurisdiction of the Court in derogation of the rule declared by the legislature
The situation in the present case is analogous
The executing Court had refused to exercise jurisdiction and to execute the decree on the ground that the decree was a nullity as the Bombay Rents Hotel and Lodging House Rates Control Act 1947 had no application to buildings in Cantonment areas
That defect having been removed and all decrees obtained on the basis that the Bombay rent law applied to the Kirkee Cantonment area having been validated by Act 22 of 1972 it cannot be said that the earlier decision holding that the decree was a nullity operated as res judicata
As pointed out by this Court in Mathura Prasad Bajoo Jaiswal  Ors
I vs Dassibai NB Jeejeebhoy supra if the earlier decision in the Miscellaneous Application is to be regarded as res judicata it would assume the status of a special rule of jurisdiction applicable to the parties in derogation of the law declared by the legislature
We therefore see no substance in the second submission
Civil Appeal No 708 of 1978 is accordingly dismissed with costs
In Civil Appeal No 709 of 1978 the only question is about the validity of a decree obtained before the date of the notification issued under section 3 of the 
In view of what we have said above this question has to be decided against the appellant
This appeal is also dismissed with costs
In Civil Appeal No 718 of 1978 special leave was granted under a misapprehension that the appeal raised the same questions as were raised in Civil Appeal No 708 of 1978
It is now stated that it is not so
This appeal is also dismissed with costs
SR Appeals dismissed


Summary:
The respondents in Civil Appeal No 70878 Mamanchand Ratilal Agarwal and others who are the landlords of premises bearing door No 16 in Nawa Bazar Area Kirkee Cantonment filed a civil suit No 170 of 1964 against the Appellant tenant for recovery of possession and arrears of rent under the provisions of Bombay Rents Hotel and Lodging House Rates Control Act 1947
The suit was decreed
There was an appeal by the tenant
It resulted in a com promise decree dated July 12 1967 by which some time was given to the tenant to vacate the premises
On April 29 1969 in the case of Indu Bhushan Bose vs Rama Sundari Devi and Anr
  this Court held that Parliament alone had and the State Legislature did not have the necessary competence to make a law in regard to the regulation of house accommodation in Cantonment Areas
 The expression regulation of house accommodation was interpreted as not to be confined to allotment only but as extending to other incidents such as termination of existing tenancies and eviction of persons in possession of house accommodation etc
To get over the situation created by the said decision on December 29 1969 the Central Government issued a notification under section 3 of the Cantonment Extension of Rent Control Laws Act 1957 extending the pro visions of the Bombay Rents Hotel and Lodging House Rates Control Act 1947 to the Kirkee and other cantonment areas
In June 2 1972 the Parliament also enacted Act 22 of 1972 amending the Cantonment Extension of Rent Control laws Act 1957 purporting to enable the Central Government to make the Rent Control Laws in the several States applicable to Cantonment areas from dates anterior to the dates of notification and further purporting to validate certain pre existing decrees
In the meanwhile taking advantage of the decision in the case of Indu Bhushan Bose vs Rama Sundari Devi and Anr the appellant tenant filed Miscellaneous Application No 59770 for a declaration that the decree obtained against him was a nullity and incapable of being executed
This application was allowed by the Court on November 19 1971
But after the enactment of Act 22 of 1972 on January 11 1973 the landlords filed Darkhast No 104 of 1973 to execute the decree in their favour
The appellant tenant raised three objections namely i subsequent to the compromise decree there was a 225 fresh agreement of lease between the landlords and himself ii the provisions of the amending Act 22 of 1972 were not extensive enough to save the decree dated July 12 1967 iii in any case the decision in Miscellaneous Application No 59770 holding the decree to be a nullity operated as res judicata between the parties
The first objection was left open by all the Courts for future adjudication as the landlord denied the existence of any fresh agreement
The second and third objections alone were considered
In the judgment under appeal the High Court overruled them and hence this appeal by special leave and two other similar appeals
Dismissing the appeals the Court  HELD 1
In Indu Bhushan Bose vs Rama Sundari and Anr 1970  1 SCR 443 the Supreme Court agreed with the view of the Calcutta and Rajasthan High Courts and held that the power of the State Legislature to legislate in respect of landlord and tenant of buildings was to be found not in Entry 18 of the List II but in Entries 6 7 and 13 of List III of the Seventh Schedule to the Constitution and that such power was circumscribed by the exclusive power of Parliament to legislate on the same subject under Entry 3 of List I
But even before this decision Parliament took the view of the Calcutta Rajasthan High Courts as the correct view and proceeded to enact the Cantonment Extension of Rent control Laws Act 1957 by section 3 of which the Central Government was enabled by notification in the official Gazette to extend to any cantonment with such restrictions and modifications as it thought fit any enactment relating to the control of rent and regulation of house accommodation which was in force on the date of the notification in the State in which the Cantonment was situated
Though this Act came into force on December 18 1957 no notification was issued extending the provisions of the Bombay Rents Hotel and Lodging House Rates Control Act 1947 to Kirkee and other Cantonment areas within the State of Bombay until 1969
Apparently such a notification was thought unnecessary in view of the fact that the Bombay Act was supposed to operate within the said Cantonment areas because of the consistent view taken by the Bombay High Court regarding the applicability of the Bombay Act to such areas
In view of the Supreme Court decision in Indu Bhushan s case it became necessary that a notification under section 3 of the Cantonment Extension of Rent Control Laws Act 1957 should be issued
It was accordingly done on December 29 1969
But it was realised that the entire problem was not thereby solved since all such notifications as the one issued on December 29 1969 could only be prospective and could not save decrees which had already been passed
Therefore Amending Act 22 of 1972 was enacted for the express purpose of saving decree which had already been passed
By section 2 of the Amending Act of 1972 the Principal Act of 1957 was itself deemed to have come into force on January 26 1950
Original Section 3 was renumbered as subsection 1 and the words on the date of the notification were omitted and were deemed always to have been omitted 229 B G  230 C D 2
Under section 3 of the unamended Act 1957 a notification could be issued extending a State Legislation to a Cantonment area with effect from the date of notification
As a result of the introduction of sub section 2 of section 3 the notification can be given effect from an anterior date or a future late but it cannot be made effective from a date earlier than the commencement 226 of the State Legislation or the establishment of the Cantonment or the commencement of the Cantonment Extension of Rent Control Laws Act 1957
Sub section 3 is merely consequential to sub section 2 in that it provides that a State Legislation when extended to a Cantonment area with effect from the date of the notification from an anterior date such legislation is to stand extended with all the amendments to such State Legislation made after such anterior date but before the commencement of the 1972 Amending Act the amendments being applicable as and when they come into force
Sub section
4 makes provision for the saving of decrees or orders for the regulation of or for eviction from any house accommodation in a Cantonment made before the extension of the State Legislation to the Cantonment provided certain conditions are fulfilled
One condition is that the decree or order must have been made by any Court Tribunal or other authority in accordance with a law for the control of rent and regulation of house accommodation for the time being in force in the State in which such Cantonment is situated
In other words the decree or order must have been made by the wrong application of the State Legislation to the Cantonment area
If a decree or order has been made by such wrong application of the State Legislation to the Cantonment area it shall be deemed with enact from the date of the notification to have been properly made under the relevant provisions of the State Legislation
1231 A H 232 A BI 3
The applicability of sub section 4 cannot be confined to cases where notifications are issued with retrospective effect under sub section 2
Sub section 4 is not so confined
It applies to all cases of decrees or orders made before the extension of a State Legislation to a Cantonment area irrespective of the question whether such extension is retrospective or not
The essential condition to be fulfilled is that the decree or order must have been made as if the State Legislation was already in force although
strictly speaking it was not so in force
Subsection 4 is wide enough to save all decrees and orders made by the wrong application of State rent control and house accommodation legislation to a Cantonment area though such State Legislation could not in law have been applied to cantonment areas at the time of the passing of the decrees or order
The decree obtained by the respondent is saved by the pro visions of section 3 sub section 4 of the Cantonment Extension of Rent Control Laws Act 22 of 1957 as amended by Act 22 of 1972
232 E F 4
If the decision in the previous proceeding was to be regarded as res judicata it would assume the status of a special rule of law applicable to the parties relating to the jurisdiction of the Court in derogation of the rule declared by the legislature
234 A In the present case the executing Court had refused to exercise jurisdiction and to execute the decree on the ground that the decree was a nullity as the Bombay Rents Hotel and Lodging House Rates Control Act 1947 had no application to buildings in Cantonment areas
That defect having been re moved and all decrees obtained on the basis that the Bombay rent law applied to the Kirkee Cantonment area having been validated by Act 22 of 1972 it cannot be said that the earlier decision holding that the decree was a nullity operated as res judicata
234 B D Mathura Prasad Bajoo Jaiswal and ors
vs Dessibai N B Jeejeebhoy  836 followed