Skip to main content

State act primacy in tenant eviction: SC

Landlords can evict tenants under a Bengal act even if there is an agreement under the central arbitration legislation, the Supreme Court has ruled.

A bench of Justices A.K. Patnaik and Y. Gopala Gowda recently passed the judgment while allowing the appeal filed by a landlord in Salt Lake challenging a Calcutta High Court ruling that had taken the view that the arbitration agreement in the rent deed would prevail over the West Bengal Premises Tenancy Act, 1997.

Ranjit Kumar Bose had filed an eviction suit in a Barasat court in 2008 against his tenant, Ananya Chowdhury, who had a 600sqft shop at Salt Lake’s HA block.

The tenant had filed a counter-plea in the court of the civil judge (senior division), at Barasat, North 24-Parganas, requesting that the matter be referred to an arbitrator under the central Arbitration and Conciliation Act, 1996, as the tenancy agreement contained an arbitration agreement.

The civil judge dismissed the plea, following which Chowdhury appealed in Calcutta High Court.

On April 16, 2010, the high court directed that the dispute be referred to arbitrators to be appointed by the landlord and the tenant according to the arbitration agreement.

Landlord Bose then appealed in the Supreme Court.

Interpreting the state legislation, Justice Patnaik said in his order: “It is, thus, clear that Section 6 of the Tenancy Act overrides a contract between the landlord and the tenant and provides that only the civil judge having jurisdiction can order or decree for recovery of possession only in a suit to be filed by the landlord.”

Section 6 of the West Bengal Premises Tenancy Act, which deals with protection of tenants from eviction, mentions that “notwithstanding anything to the contrary contained in any other law for the time being in force or in any contract”, no order or decree for the recovery of the possession of any premises shall be made by the civil judge “having jurisdiction in favour of the landlord against the tenant….”

In this case, the apex court bench said it was true that there was an arbitration agreement under Clause 15 of the tenancy agreement, which provides that any dispute regarding the contents or construction of the tenancy agreement or dispute arising out of it shall be settled by arbitration in accordance with the provisions of the 1996 act.

“But the words ‘notwithstanding anything in any contract’ in Section 6 of the Tenancy Act will override the arbitration agreement in Clause 15 of the tenancy agreement, where a suit for recovery of possession of any premises has been filed by a landlord against the tenant,” the apex court order said.

The apex court allowed the appeal and set aside the judgments of the high court and the civil judge. It directed the civil judge to hear the matter on the merits of the case.

Article referred: http://www.telegraphindia.com/1140312/jsp/bengal/story_18071805.jsp#.UyAj3_mSzl8

Comments

Most viewed this month

Right of pre-emption under West Bengal Land Reform Act

In Rabindra Nath Kundu & Anr vs Sudhir Hira, Bijoy Krishna Hira being the owner in the suit plot, gifted to Santosh Kumar Hira demarcated 11 decimals of land vide deed of gift dated 27.4.2004 and the latter sold 9 decimals out of 11 decimals of land to Sudhir Hira the preemptor/opposite party no. 1 and well demarcated 1.65 decimals of land in the said plot along with several other plots were sold, transferred and conveyed to the preemptees/petitioners herein by a registered deed of sale dated 10.8.2010, the subject matter of preemption. It is argued on behalf of the preemptees that  the present opposite party no. 1/preemptor Sudhir Hira has no relationship of co-sharership with Santosh Kumar Hira opposite party no. 2 as the demarcated portion of land has been purchased. It is settled principle of law that partial preemption is not permissible and this was what the view adopted by this Hon'ble High Court is Surendra Vs. Abhimannu reported in (1980) 1 Cal LJ 135 whe...

Merits and the terms of contract are irrelevant for invoking of the bank guarantees

In Sabarkantha Annuity Pvt. Ltd. Vs. NHAI and Ors, the Petitioner filed before the Delhi High Court  petition under Section 9 of the Arbitration and Conciliation (Amendment) Act, 2015 with a prayer that, Respondents be restrained from acting upon the letter dated 15th September, 2017 or from invoking the Bid securities of the Petitioner to the tune of Rs. 10.93 Crores and also restraining the banks from honouring the invocation of said bank guarantees on behalf of Respondent No. 1 acting in terms of letter dated 3rd November, 2007. Petitioner has relied upon Clauses Nos. 9.1.1, 9.1.2 and 4.3 of the agreement dated 28th April, 2017 entered into between the parties to say the claim for damages since is not a claim for a sum presently due and payable and the respondent would be entitled to damages only on proof of loss, per Clause 4.3 of the agreement and hence is not entitle to the entire sum of bid security.  The Court found that Clause No. 9.1.2 speaks of an exclusiv...

Supreme Court clarified on how to determine if an allegation of fraud falls under “Fraud Exception” to Arbitrability

In AVITEL POST STUDIOZ LIMITED & ORS. vs HSBC PI HOLDINGS (MAURITIUS) LIMITED, the Supreme Court was hearing an appeal from the interlocutory judgment and order passed in the appeal under section 9 of the Arbitration and Conciliation Act, 1996 by the Bombay High Court in a dispute between HSBC and Avitel India. HSBC had alleged that the Appellants had committed fraud by siphoning off the funds provided by them. As the agreement entered into by HSBC and the Appellants contained arbitration clause, HSBC approached the Singapore Arbitration Centre and the arbitration committee so formed executed award in favour of HSBC who filed application before the Bombay High Court for execution of the award. The Appellants contended objected to the award on various grounds and further argued that as fraud has been alleged, the dispute cannot be arbitrated.  The Supreme Court has held that “serious allegations of fraud” as a ground for exemption from arbitral proceedings arise only if either o...