Binding effect of an unoverruled ultra vires ruling barred fair rent determination under the rent control statute.

A prior declaration that Section 4 of the A.P. Buildings (Lease, Rent and Eviction) Control Act, 1960 was ultra vires continued to operate until set aside by a larger Bench; a later decision upholding a similar provision in another statute did not revive it. The proper course was to seek consideration by a Division Bench, and the High Court could not direct the Rent Controller to determine fair rent under Section 4 while the earlier invalidity ruling remained unoverruled. The direction for fair rent determination was therefore unsustainable and was deleted.

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Issues: Whether the High Court could direct determination of fair rent under Section 4 of the A.P. Buildings (Lease, Rent and Eviction) Control Act, 1960 after an earlier decision had declared that provision unconstitutional, without that decision being overruled by a larger Bench.

Analysis: An earlier Single Judge had held Section 4 of the Act to be ultra vires. That declaration could not be treated as wiped out merely because another decision of this Court had upheld a similar provision in a different enactment. Unless the earlier ruling was set aside by a larger Bench, the declaration of invalidity continued to hold the field. The proper course for the High Court was to refer the matter to a Division Bench, and in the absence of such overruling the provision could not be treated as revived.

Conclusion: The direction requiring the Rent Controller to proceed with determination of fair rent under Section 4 was unsustainable and was deleted, in favour of the appellant.

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