Case ID: 1253

Judgment:
Appeal No. 49 of 1961. Appeal by special leave from the judgment and order dated August 11	 1960	 of the Bombay High Court in Civil Revision Application No. 320 of 1959. M.C. Setalvad	 Attorney General for India	 Ramesh. war Nath	 section N. Andley and P. L. Vohra	 for the appellants. C.K. Daphtary	 Solicitor General of India	 Naushir Barucha and K. R. Choudhuri	 for the respondent. April 21. The Judgment of the Court was delivered by HIDAYATULLAH	 J. This is a tenant 's appeal	 with the special leave of this Court	 against an order of Naik	 J.	 of the High Court of Bombay in Civil Revision Application No. 320 of 1959	 by which he 161 disallowed certain pleas raised by the appellants. The respondent is the landlord. On September 11	 1942	 the appellants had executed a rent note	 under which they were in occupation of the premises in dispute. The period of the tenancy was 15 years	 and it expired by efflux of time on	 March 14	 1957. The landlord thereupon filed a suit on April 25	 1957	 for possession of the premises	 in the Court of the Joint Civil Judge (Junior Division)	 Erandol. Meanwhile	 under section 6 of the Bombay Rents	 Hotel and Lodging House Rates Control Act	 1947	 (to be called the Act	 in this judgment)	 a notification was issued	 applying Part II of the Act to the area where the property is situated. The appellants claimed protection of section 12 in Part 11 of the Act	 which deprived the landlord of the right of possession under certain circumstances. The Civil Judge framed three preliminary Issues	 which were as follows: "1. Whether this Court has jurisdiction to try the suit? 2.Whether the plaintiff 's suit for possession of the suit property is maintainable in view of the Notification issued by the Government of Bombay on 16th August	 1958	 applying Part II of the Bombay Rents	 Hotel and Lodging House Rates Control Act? If not	 what order should be passed? 3.What order?". These Issues were decided against the appellants. They filed a revision petition before the High Court of Bombay	 which was dismissed by the order under appeal. Naik	 J.	 who heard the revision	 followed a previous Full Bench ruling of the Bombay High Court reported in Nilkanth Ramachandra vs Rasiktal (1). In that case	 Chagla	 C. J. (Gajendragadkar and Tendolkar	 JJ.	 concurring) had held that section 12 of the Act was prospective and did not apply to pending cases. Reliance was also placed by Naik	 J.	 on the decision of this Court in Chandrasingh Manibhai vs Surjit Lal Sadhamal Chhabda (2)	 where the opinion of the Full Bench of the Bombay High Court was approved. (1) (2) ; 21 162 Two Questions have been raised in this appeal	 and they are (1) whether by virtue of the first proviso to section 50 of the Act	 all the provisions of Part 11 including section 12 were not expressly made applicable to all suits; and (2) whether by virtue of section 12(1) of the Act	 which applied independently by the extension of the Act to the area where the property is situate	 the suit was not rendered incompetent and the landlord deprived of his remedy of possession. Before we deal with these contentions	 it is necessary to see some of the relevant provisions of this Act. The Act was not the first to be passed on the subject of control of houses	 etc. Previously	 there were two other Acts in force in the State of Bombay	 viz.	 the Bombay Rent Restriction Act	 1939 and the Bombay Rents	 Hotel Rates and Lodging House Rates (Control) Act	 1944. By section 50 of the Act	 these Acts were repealed. The first proviso	 however	 enacted (omitting unnecessary parts): "Provided that all suits and proceedings between a landlord and a tenant relating to the recovery or fixing of rent or possession of any premises to which the provisions of Part 11 apply. . which are pending in any Court	 shall be transferred to and continued before the Courts which would have jurisdiction to try such suits or proceedings under this Act or shall be continued in such Courts	 as the case may be	 and all the provisions of this Act and the rules made thereunder shall apply to all such suits and proceedings. " It is this proviso which	 it is claimed	 has retrospective effect and section 12 of the Act which is in Part II is said to apply to all pending cases	 whenever the Act is extended to fresh areas. Section 12 of the Act reads as follows: "12.(1) A landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays	 or is ready and willing to pay	 the amount of the standard rent and permitted increases	 if any	 and observes and performs the other conditions of the tenancy	 in so far as they are consistent with the provisions of this Act. 163 (2)No suit for recovery of possession shall be instituted by a landlord against a tenant on the ground of non payment of the standard rent or permitted increases due	 until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant in the manner provided in section 106 of the . (3)(a) Where the rent is payable by the month and there is no dispute regarding the amount of standard rent or permitted increases	 if such rent or increases are in arrears for a period of six months or more and the tenant neglects to make payment thereof until the expiration of the period of one month after notice referred to in sub section (2)	 the Court may pass a decree for eviction in any such suit for recovery of possession. (b)In any other case	 no decree for eviction shall be passed in any such suit if	 on the first day of hearing of the suit or on or before such other date as the Court may fix	 the tenant pays or tenders in Court the standard rent and permitted increases then due and thereafter continues to pay or tender in Court regularly such rent and permitted increases till the suit is finally decided and also pays costs of the suit as directed by the Court. (4)Pending disposal of any such suit	 the Court may out of any amount paid or tendered by the tenant pay to the landlord such amount towards payment of rent or permitted increases due to him as the Court thinks fit. Explanation. In any case where there is a dis pute as to the amount of standard rent or permitted increases recoverable under this Act the tenant shall be deemed to be ready and willing to pay such amount if	 before the expiry of the period of one month after notice referred to in sub section (2)	 he makes an application to the Court under sub section (3) of section II and thereafter pays or tenders the amount of rent or permitted increases specified in the order made by the Court. " 164 By sub sections (1) and (2) of the second section	 which dealt with the extent of the application of the Act	 it was provided that Parts I and IV of the Act shall extend to the pre Reorganisation State of Bombay	 excluding transferred territories	 and Parts II and III shall extend respectively to the areas specified in Schs. I and II to the Act	 and shall continue to extend to any such area	 notwithstanding that the area ceased to be of the description therein specified. By sub section (3)	 the State Government was authorised	 by notification in the Official Gazette	 to extend to any other area	 any or all the provisions of Part II or Part III or of both. It would appear from this that Parts I and IV came into operation throughout the territories of the pre Reorganisation State of Bombay. Part II came to be extended to this area by the notification	 and after that extension	 Parts 1	 11 and IV of the Act began to apply	 while the suit was pending. We are not concerned in this appeal with Part 111. The contention on behalf of the appellants is that by the latter part of the proviso to section 50	 relevant portions of which have been quoted earlier	 all the provisions of Part II were extended to this area	 and that all pending suits and proceedings were governed	 no matter when filed. The notification extending Part II of the Act to this area had	 it is contended	 also the same effect independently of the first proviso to section 50. It is contended	 therefore	 that sub section (1) of section 12	 which prohibits a landlord from recovering possession of any premises so long as the tenant pays or is ready and willing to pay the amount of the standard rent and permitted increases	 if any	 and is also observing the other conditions of the tenancy in so far as they are not inconsistent with the provisions of the Act	 applies to the present case and the tenants are protected. It is also contended that if the first proviso to section 50 was limited to such suits only as were pending on the date of the passing of the Act	 section 12(1)	 on its own terms	 is applicable to the present case	 and being retrospective in character	 leads to the same result. These two contentions were apparently raised in the Court of the Civil Judge and before the High 165 Court. The High Court	 however	 ruled that section 12 was prospective in character and did not apply to pending suits or proceedings. It is contended by the learned Attorney General what the construction placed by the High Court upon the first proviso to section 50 is erroneous. Though he section concedes that the proviso must be read as qualifying what the substantive part of section 50 enacts	 he urges that the proviso goes beyond that purpose and enacts a substantive law of its own. He relies upon the following observations of Lord Loreburn	 L. C.	 in Rhondda Urban Council vs Taff Vale Railway (1)	 where a pro viso to section 51 of the Railway Clauses Consolidation Act	 1845	 was under consideration: "It is true that section 51 is framed as a proviso upon preceding sections. But it is also true that the latter half of it	 though in form a proviso	 is in substance a fresh enactment	 adding to and not merely qualifying that which goes before."	 and contends that the latter portion of the proviso	 in question	 being a substantive enactment	 comprehends not only those suits which were pending on the date of repeal but also those cases	 which came within the language of the latter part of the proviso	 whenever the Act was extended to new areas. On behalf of the landlord	 the learned Solicitor General argues that the proviso should be read as a proviso only to the substantive enactment	 and must be taken to qualify the substantive portion of section 50 only to the extent to which it makes an exception to the repeal and but for the proviso would be governed by the repealed Acts. He relies upon Craies on Statute Law	 5th Edn.	 pp.201 202	 where the following passage occurs: "The effect of an excepting or qualifying proviso	 according to the ordinary rules of construction	 is to except out of the preceding portion of the enactment	 or to qualify something enacted therein	 which but for the proviso would be within it and such a proviso cannot be construed as enlarging the scope of an enactment when it can be fairly and (1) 	 258.166 properly construed without attributing to it that effect. " He also relies upon the following observations of Lush	 J.	 in Mullins vs Treasurer of Surrey (1): "When one finds a proviso to a section	 the natural presumption is that	 but for the proviso	 the enacting part of the section would have included the subject matter of the proviso." The law with regard to provisos is well settled and well understood. As a general rule	 a proviso is added to an enactment to qualify or create an exception to what is in the enactment	 and ordinarily	 'a proviso is not interpreted as stating a general rule. But	 provisos are often added not as exceptions or qualifications to the main enactment but as savings clauses	 in which cases they will not be construed as controlled by the section. The proviso which has been added to section 50 of the Act deals with the effect of repeal. The substantive part of the section repealed two Acts which were in force in the State of Bombay. If nothing more had been said	 section 7 of the Bombay General Clauses Act would have applied	 and all pending suits and proceedings would have continued under the old law	 as if the repealing Act had not been passed. The effect of the proviso was to take the matter out of section 7 of the Bombay General Clauses Act and to provide for a special saving. It cannot be used to decide whether section 12 of the Act is retrospective. It was observed by Wood	 V. C.	 in Fitzgerald vs Champneys(2) that saving clauses are seldom used to construe Acts. These clauses are introduced into Acts which repeal others	 to safeguard rights which	 but for the savings	 would be lost. The proviso here saves pending suits and proceedings	 and further enacts that suits and proceedings then pending are to be transferred to the Courts designated in the Act and are to continue under the Act and any or all the provisions of the Act are to apply to them. The learned Solicitor General contends that the savings clause enacted by the proviso	 even if treated as substantive law	 must be taken to (1) 	 173.(2) ; E.R. 958.167 apply only to suits and proceedings pending at the time of the repeal which	 but for the proviso	 would be governed by the Act repealed. According to the learned Attorney General	 the effect of the savings is much wider	 and it applies to such cases as come within the words of the proviso	 whenever the Act is extended to new areas. These arguments are interesting	 and much can be said on both Bides	 particularly as the Legislature has by a subsequent amendment changed the proviso. But	 in our opinion	 they need not be considered in this case	 in view of what we have decided on the second point. The second contention urged by the learned Attorney General that section 12(1) applied from the date on which the Act was extended to the area in question is	 in our opinion	 sound. Section 12(1) enacts a rule of decision	 and it says that a landlord is not entitled to possession if the tenant pays or shows his readiness and willingness to pay the standard rent and to observe the other conditions of the tenancy. The word "tenant" is defined in the Act to include not only a tenant	 whose tenancy subsists but also any person remaining	 after the determination of the lease	 in possession with or without the assent of the landlord. The present appellants	 as statutory tenants	 were within the rule enacted by section 12(1) and entitled to its protection	 if the sub section could be held applicable to this suit. Both the Bombay High Court and this Court had	 on the previous occasions	 observed that section 12 of the Act was prospective. In those cases	 the learned Judges were concerned with the interpretation of sub sections (2) and (3) only	 which	 as the words of those subsections then existing show	 were clearly prospective	 and were applicable to suits to be instituted after the coming into force of the Act. But a section may be prospective in some parts and retrospective in other parts. While it is the ordinary rule that substantive rights should not be held to be taken away except by express provision or clear implication	 many Acts	 though prospective in form	 168 have been given retrospective operation	 if the intention of the legislature is apparent. This is more so	 when Acts are passed to protect the public against some evil or abuse. (See Craies on Statute Law	 5th Edn.	 p. 365). The sub section says that a landlord Shall not be entitled to the recovery of possession of any premises so long as the tenant pays or is ready and willing to pay the standard rent etc.	 and observes and performs the other conditions of the tenancy. In other words	 no decree can be passed granting possession to the landlord	 if the tenant fulfils the conditions above mentioned. The Explanation to section 12 makes it clear that the tenant in case of a dispute may make an application to the Court under sub section(3) of section 11 for fixation of a standard rent and may thereafter pay or tender the amount of rent or permitted increases specified in the order to be made by the Court. The tenants	 in the present case	 have expressed their readiness and willingness to pay	 and it is clear that they fulfil the requirements of sub section(1) of section 12	 and the landlord is	 therefore	 not entitled to the relief of possession. Both the High Court as well as this Court in their previous decisions	 referred to above	 were not called upon to interpret sub section (1) of the Act. They were dealing with appeals arising out of decrees already passed. The observations that section 12 was prospective were made with reference to sub sections (2) and (3) and not with respect to sub section(1)	 which did not even find a mention in those judgments. The question then was whether section 12 by itself or read with the proviso to section 50 was applicable retrospectively to appeals. That is not the question which has arisen here. Then again	 section 12(1) enacts that the landlord shall not be entitled to recover possession	 not "no suit shall be instituted by the landlord to recover possession". The point of time when the sub section will operate is when the decree for recovery of possession would have to be passed. Thus	 the language of the sub section applies equally to suits pending when Part 11 comes into force and those to be filed subsequently. The contention of the respondent that the operation of section 12(1) 169 is limited to suits filed after the Act comes into force in a particular area cannot be accepted. The conclusion must follow that the present suit cannot be decreed in favour of the respondent. The decisions of the High Court and the Court of First Instance are thus erroneous	 and must be set aside. In the result	 the appeal is allowed	 and the two preliminary Issues are answered in favour of the appellants. Under the orders of this Court	 the judgment of the Civil Judge was stayed. The suit will now be decided in conformity with our judgment. The respondent shall pay the costs of this Court and of the High Court. Appeal allowed.

Summary:
On the expiry of the appellant 's tenancy for the occupation of the premises indispute	 the respondent who was the landlord filed a suit for possession of the premises. Meanwhile under section 6 of the Bombay Rents	 Hotel and Lodging House Rates Control 	 a notification was issued applying Part 11 of the Act to the area where the property was situated. The appellants claimed protection of section 12	 Part 11 of the Act	 which deprived the landlord of the right of possession under certain circum stances. The Court of first instance decided the suit against the appellant and the High Court ruled that section 12 was prospective in character and did not apply to pending suits or proceedings. On appeal by special leave Held	 that the point of time when sub section (1) of section 12 operates is when the decree for recovery of possession has to be passed. The language of the sub section which provides that the landlord is not entitled to recover possession if the tenant pays or shows his willingness to pay the standard rent and to observe the other conditions of the tenancy is such that it applies equally to suits pending when Part It comes into force and those to be filed subsequently and is not limited only to suits filed after the Act comes into force in a particular area. A section may be prospective in one part and retrospective in another part. Sub sections (2) and (3) of section 12 were clearly prospective but the words of the first sub section showed retrospective operation. Nilkanth Ram Chandra vs Rasiklal	 and Chandra Singh Manibhai vs Surjitlal Sudhamal Chhabda	 ; 	 distinguished. Rhonda Urban Council vs Taff Vale Railway	 	 Mullins vs Treasury of Surrey	 and Fitzgerald vs Champneys	 ; 	 referred to.