PROPERTY AGENTS Vs. SHAINSHER BAHADUR AND OTHERS

JUDGEMENT

(1.) This is a special appeal against the judgment of a learned single Judge allowing a writ petition filed by Shamsher Bahadur, respondent No. 1, and quashing the order of the State Government passed under S. 7-A of the U. P. Control of Rent and Eviction Act, 1947 (hereinafter referred to as the Act) and granting certain consequential reliefs.

(2.) FIRM Ganesh Das Ram Gopal, respondent No. 3, is the proprietor of a building known as Halwasiya Court situate at Hazratganj Lucknow. The ground floor of this building consisted of a big hall and two small shops. The big hall was in the occupation of respondent No. 3 but the two shops had been rented out. After the tenants of the two shops vacated them the respondent No. 3 demolished the partition walls and included the shops also in the hall. The original building had admittedly been constructed long before the Act came into force. It appears that the respondent No. 3, after the modification of the accommodation, did not desire to occupy it itself and wanted to let it out. The respondent No. 3 did not, as required by S. 7(1) of the Act, give intimation of the vacancy or intended vacancy to the Rent Control and Eviction Officer and thereby rendered itself liable to prosecution under S. 8 of the Act. Without giving such information and without any allotment order having been passed in respect of this accommodation, the respondent No. 3, on July 31, 1958, executed a lease for three years in respect of this accommodation in favour of the appellant. Firm Property Agents. This lease provided for payment of a rent of Rs. 500 per month by the lessee and it also contained a clause for renewal of the lease for a further period of three years. It may be mentioned here that this lease deed was executed by respondent No. 3 but it was not signed by or on behalf of the appellant.

(3.) IN response to the notice under S. 7-A(1) received by him, Shamsher Bahadur, on December 20, 1958, wrote to the Rent Control and Eviction Officer stating that the landlord had assured him that the accommodation was a new construction which was exempted from the operation of the Act and that on that representation he had accepted a lease of the same without an allotment order and prayed that the notice be withdrawn and an allotment order made in his favour. Neither the respondent No. 3 nor Shamsher Bahadur gave any information to the Rent Control and Eviction Officer about the lease executed on July 31, 1958, or about the sub-lease executed on October 12, 1958. After considering the replies of respondent No. 3 and of Shamsher Bahadur in response to the notices issued to them and after considering the question whether the accommodation was governed by the Act, the Rent Control and Eviction Officer, on January 17, 1959, passed an order under S. 7(2) of the Act directing respondent No. 3 to let out the accommodation to Shamsher Bahadur. Though the allotment had been made tit the request both of respondent No. 3 and of Shamsher Bahadur, the respondent No. 3, on February 17, 1959, wrote to the Rent Control and Eviction Officer bringing to his notice the fact that it had leased out the accommodation on July 31, 1958, to the appellant and that the appellant had sublet the accommodation to Shamsher Bahadur and prayed that the allotment order be amended by ordering the appellant to sublet the accommodation to Shamsher Bahadur.