TaxTMI 
TaxTMI 
1994 (3) TMI 392
X X X X Extracts X X X X
X X X X Extracts X X X X
....ithin a period of two years. The appellant made an application for renewal of licence. On objection by the respondents, the renewal was not granted. As a result, the construction of cinema theatre was not completed. The appellant defaulted in payment of arrears of rent. Therefore, the respondents filed an application under Section 21(1)(a)(a) of the Karnataka Rent Control Act, 1961 (hereinafter referred to as 'the Act') and for bona fide requirement under Section 21 (1)(a)(b) of the Act. Pending the eviction proceedings, respondents filed an application under Section 29(1) and (4) of the Act because the appellant had not paid the rent in spite of notice. 3. On 18.8.1990, the trial court passed an order on LA. VI directing the app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion in view of the non-obstante clause contained under Section 21. 6. This Court in v. Dhanapal Chettiar v. Yesodai Ammal [1980]1SCR334 categorically laid down that contractual tenancy will lose its significance in view of the Rent Control Act. In that case, even the notice under Section 106 of the Transfer of Property Act was held to be a surplus age. It is, therefore, urged that if a landlord could found an action on any one of the enumerated grounds under Section 21 of the Act, the action would be maintainable notwithstanding the existence of a contractual lease. 7. Having regard to the above arguments, the only question that arises for our consideration is, whether during the subsistence of a contractual tenancy, it is open to th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....are capable of only one interpretation on a plain and grammatical construction of the words thereof a non-obstante clause cannot cut down the construction and restrict the scope of its operation. In such cases the non-obtain clause has to be read as clarifying the whole position and must be understood to have been incorporated in the enactment by the Legislature by way of abundant caution and not by way of limiting the ambit and scope of the operative part of the enactment. 10. In Municipal Corporation, Indore and Ors. v. Smt. Ratnaprabha and Ors. AIR 1977 SC 308, scope of Section 138(b) of the Madhya Pradesh Municipal Corporation Act was dealt with. That Section reads as under: The annual value of any building shall notwithstan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....his be so why unnecessarily, illogically and unjustifiably a formality of terminating the contractual lease should be insisted upon? Again at page 227, it is held: Quoting from Manujendra case, it was said at page 911: We are inclined to hold that the landlord in the present case cannot secure an order for eviction without first establishing that he has validly determined the lease under the T.P. Act. Why this dual requirement? Even if the lease is determined by a forfeiture under the Transfer of Property Act the tenant continues to be a tenant, that is to say, there is no forfeiture in the eye of law. The tenant becomes liable to be evicted and forfeiture comes into play only if he has incurred the liability to be evicted under....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e term 'lease' was excluded from the ambit of the said Act. 13. We are of the view that the statement of full bench will have no application to this case. The appellant filed O.S. No. 1690/90 on the file of City Civil Court, Bangalore in which he challenged the decree for eviction and for declaration. He also prayed for injunction. The suit was contested by the respondents. In that case, the plea of jurisdiction was also raised. The trial court dismissed the suit observing that it had no jurisdiction. For reasons best known, the appellant did not prefer any appeal or revision against that dismissal. Therefore, that judgment has become conclusive and binding between the parties. Hence, the effect of Section 21 of the Act on the co....