1963 (4) TMI 86 - SC - Indian Laws

Jurisdiction based on plaintiff's claims, not defendant's plea: A landlord-tenant dispute clarification

The Supreme Court affirmed the High Court's decision that the City Civil Court had jurisdiction over a suit involving a landlord-tenant dispute. The Court ... - Issues Involved1. Jurisdiction of the City Civil Court versus the Court of Small Causes, Bombay under Section 28 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947.2. Interpretation of Section 28 and Section 29-A of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947.3. Determination of the relationship between the parties as landlord-tenant or licensor-licensee.4. Applicability of general principles of jurisdiction at the inception of suits.Issue-wise Detailed Analysis1. Jurisdiction of the City Civil Court versus the Court of Small Causes, Bombay under Section 28 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947The central issue in this appeal was whether the City Civil Court had jurisdiction to entertain the suit filed by the respondent or whether the Court of Small Causes, Bombay had exclusive jurisdiction under Section 28 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. The respondent, a partnership firm, filed a suit in the City Civil Court for a declaration of lawful possession and an injunction against the appellants, claiming they were mere licensees whose rights had expired. The appellants contended they were sub-tenants, invoking Section 28 to argue that only the Court of Small Causes had jurisdiction.The Supreme Court affirmed the High Court's decision that the City Civil Court had jurisdiction. It held that jurisdiction at the inception of the suit depends on the averments made in the plaint, not on the defendant's claims. The Court emphasized that Section 28 does not oust the jurisdiction of the City Civil Court based on the defendant's plea alone.2. Interpretation of Section 28 and Section 29-A of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947Section 28(1) states that the Court of Small Causes, Bombay has exclusive jurisdiction to entertain and try any suit or proceeding between a landlord and a tenant relating to the recovery of rent or possession of any premises, and to decide any application made under the Act. Section 29-A saves suits involving title, allowing parties to sue in a competent court to establish title to premises.The Supreme Court clarified that Section 28 confers exclusive jurisdiction on the Court of Small Causes only for claims arising under the Act between parties with an existing or previous landlord-tenant relationship. It does not extend to questions of title or to cases where the plaintiff does not admit a landlord-tenant relationship.3. Determination of the Relationship between the Parties as Landlord-Tenant or Licensor-LicenseeThe respondent's plaint asserted that the appellants were licensees, not tenants, and that their right to enter the shop had expired. The appellants countered that they were sub-tenants, alleging the agreement was a sham to avoid the penal provisions of the Act.The Supreme Court held that the determination of whether the appellants were licensees or tenants was crucial. If the appellants were found to be licensees, the City Civil Court had jurisdiction. If they were tenants, the Court of Small Causes would have jurisdiction. The Court emphasized that the jurisdiction should be determined based on the plaint's averments, not the defendant's claims.4. Applicability of General Principles of Jurisdiction at the Inception of SuitsThe Court reiterated the general principle that jurisdiction at the inception of a suit depends on the plaint's averments. It cited the Full Bench decision of the Allahabad High Court in Ananti v. Chhannu, which stated that the plaintiff chooses the forum and files the suit based on the facts alleged. If the plaintiff's facts are correct, the chosen forum grants relief; if not, the suit is dismissed.The Supreme Court agreed with the High Court that the City Civil Court's jurisdiction was not ousted by the appellants' plea. The Court held that Section 28 does not intend to change the forum based on the defendant's plea, and exclusive jurisdiction depends on an existing or previous landlord-tenant relationship.ConclusionThe Supreme Court dismissed the appeal, affirming that the City Civil Court had jurisdiction to entertain the suit. The Court emphasized that jurisdiction depends on the plaint's averments and that Section 28 does not oust the City Civil Court's jurisdiction based on the defendant's claims. The decision clarified the interpretation of Sections 28 and 29-A, reinforcing the general principle of jurisdiction at the inception of suits.