Local authority premises exemption under rent control law preserves civil court jurisdiction despite lessee-made improvements.

Premises legally belonging to a local authority fall within the section 4(1) exemption of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, and that exemption attaches to the premises itself rather than only to the immediate landlord-tenant relationship. Although the lessee had constructed the building at his own cost, the lessor retained dominant ownership and control under the lease covenants, so the premises continued to belong to the local authority for exemption purposes. As the Act did not apply, the jurisdictional bar in section 28 was inapplicable and the City Civil Court retained jurisdiction.

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Issues: Whether premises leased from a local authority and improved by the lessee fall outside the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, so that the City Civil Court retains jurisdiction despite section 28.

Analysis: Section 4(1) of the Act exempts premises belonging to the Government or a local authority. The exemption is attached to the premises itself and is not confined only to the immediate landlord-tenant relationship with the authority. The lease covenants showed that the lessor retained the dominant ownership and control over the land and building, while the lessee had only a right of enjoyment under the lease. The fact that the lessee had constructed the building at his own cost did not displace the legal ownership of the lessor, and the premises continued to belong to the local authority for purposes of the exemption. Once the Act did not apply, the jurisdictional bar in section 28 was inapplicable.

Conclusion: The Act did not apply to the demised premises, the City Civil Court had jurisdiction, and the appellant was entitled to succeed.

Ratio Decidendi: Where premises legally belong to a local authority, the exemption in section 4(1) of the rent control statute attaches to the premises and excludes the Act's application, thereby leaving ordinary civil court jurisdiction intact.

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