Vasu Dev Singh & Ors vs Union Of India & Ors

The High Court, after hearing the matter on 11th March, 2004 at some length and upon taking notice of the submissions made on behalf of the parties considered it expedient to give opportunity to the Chandigarh Administration 'to have a rethinking in the light of the observations made therein so that a balance could be maintained between the rights of the tenants as well as those of the landlords'. Pursuant thereto an additional affidavit was filed on 29th July, 2004 wherein, inter ala, reference was made to the National Housing Policy adopted by the Central Government as also various correspondences entered into by and between it and Administration of Union Territory of Chandigarh to which we would advert to later. The High Court dismissed the said writ petitions holding that the said notification dated 7.11.2002 was not ultra vires the provisions of the 1949 Act.

The said national policy was made on or about 17.7.2002. Therein, it was, inter alia, recommended that appropriate amendments be made in the existing laws and regulations so as to achieve a balance of interests of both the landlords and tenants, which would stimulate further constructions. On the basis of series of consultations with the State Governments and various experts, the Ministry of Urban Development suggested various features of a model rent control law which was considered in the Chief Ministers' Conference held on 7.3.1992 laying down a broad frame-work therefor. The features as regards exemption laid down therein are as under: (1) No rent control law should apply to an urban area, population whereof as per the 1991 census exceeds 3 million; (2) Exemption to residential and non- residential premises carrying more than a rental value ranging from Rs.1500/- to Rs.3500/- per month as may be specified on city-wise basis. The ceiling for rent will be automatically revised upwards as per escalation formula of standard rent. Exemption would extend to existing as well as new tenancies and covering new and existing constructions. (3) There should be a provision for fixation of standard rent by a certain specified percentage. (4) Rent Control Act should be made a permanent one.

4. You will agree that the reforms which have been mentioned in the Budget Speech and in this letter are long overdue in the urban sector. The incentive Fund only highlights them and encourages their adoption. The over-all intention is to encourage construction of housing including rental housing, to reduce transaction costs and delays in property transactions, to provide for easier availability of land for construction, and improve municipal finances with a view to developing infrastructure and civic services in our cities."

damages were claimed @ Rs.90,000/-. Yet again, in terms of a letter of an advocate dated 27.01.2003, issued on behalf of one S. Harcharan Singh Brar to M/s. Sodhi Boot House, wherein monthly rent was Rs.2,100/-, but damages were claimed @ Rs.2,00,000/- per month from the date of expiry of the notice period upto the date of handing over the possession.

In other words, the Administrator will have no jurisdiction to issue a notification which would have a permanent impact. The Administrator cannot change the basic features of the law or act contrary to the legislative policy.

Validity of the impugned notification :