RAJENDRA DIWAN VS. PRADEEP KUMAR RANIBAL

BY: RITIK RANJAN[1]

In the Supreme Court of India

NAME OF THE CASERAJENDRA DIWAN VS. PRADEEP KUMAR RANIBALA
CITATION3613 OF 2016, 10214 OF 2016, 3015 OF 2019
DATE OF JUDGEMENT10 DECEMBER, 2019
APPEALANTRAJENDRA DIWAN
RESPONDENTPRADEEP KUMAR RANIBALA & ANR.
BENCH/ JUDGEJ. ARUN MISHRA, J. INDIRA BANARJEE, J. VINEET SARAN, J. M.R. SHAH, J. S. RAVINDRA BHAT.
STATUTES/ CONSTITUTION INVOLVEDCHHATTISGARH RENT CONTROL ACT, 2011, CONSTITUTION OF INDIA.
IMPORTANT SECTIONS/ ARTICLESRENT CONTROL ACT- SECTION 12, SECTION- 13; CONSTITUTION OF INDIA– ART- 136, 138, 146, 200, 245, 246; ENTRY 77 of list 1, ENTRY 18, 64 & 65 OF list 2, ENTRY 46 of list 3 OF SCHEDULE 7

ABSTRACT

An application was filed by the respondent landlord for eviction of the appellant tenant under Section 12[2] of the Rent Control Act. The application was allowed by the Rent Control Tribunal at Raipur. The appellant-tenant went to the Supreme Court against the order passed by the Rent Control Tribunal under Section 13(2)[3]  of the Rent Control Act.

INTRODUCTION

Parliament and the State Legislature derive their power to make laws from Article 245(1)[4] of the Indian Constitution and such power is subject to and/or limited by the provisions of the Constitution. While Parliament can make law for the whole or any part of the territory of India, the State Legislature can only make laws for the State or any part thereof, subject to the restrictions in the Constitution of India.

Article 246[5], distributes legislative powers between the Union Legislature and the State Legislature. Parliament has exclusive power to make laws with respect of the matters entitled in the Union List, and the State Legislature can make laws on the matters which are there in the State List[6]. Union Legislature and State Legislature also has power to enact laws in respect of the matters enumerated in the Concurrent list.

The Parliament is sworn with power to legislate with respect to the Constitution, organization, jurisdiction or power of the Supreme Court. Entry 64[7] of the State List and Entry 46[8] of the Concurrent list enables the State Legislature to enact laws with respect to the jurisdiction and powers of courts except the Supreme Court.

These entries debar the State Legislature from legislating with respect to the jurisdiction of the Supreme Court. There is no provision in the Constitution which provides for direct appeal to the Supreme Court, from an order of a tribunal constituted by any law enacted by the State Legislature. This case of Rajendra Diwan vs. Pradeep Kumar Ranibala focuses on the competency of the State Legislature to enact any law which is contrary to the provisions of the Indian Constitution.

FACTS OF THE CASE

In 2011, the State Legislature of Chhattisgarh passed an act named Rent Control Act, 2011. The act provided for adjudication of matters relating to rent by a Tribunal and to promote leasing of accommodation by balancing the interests of landlords and tenants[9]. In 2015, Pradeep Kumar Ranibal-the respondent, filed an application for the eviction of tenant Rajendra Diwan-appellant and same was allowed. An appeal for this was filed in the Supreme Court as per the Section 13(2) of the Rent Control Act.

A Bench of this court expressed serious doubts about the maintainability of the appeal, stating that the State of Chhattisgarh prima facie lacked competence to enact law providing for statutory appeals directly to the Supreme Court. Notice was issued to the Attorney General of India and the Advocate General of the State of Chhattisgarh.

The Bench was of the view that the appeal involved a substantial question of law as to the interpretation of the Constitution, and accordingly referred the appeal to the Chief Justice of India for assignment to a Constitution Bench of the Court. Three main issues were raised before the Apex court with regard to this specific case. 

ISSUES RAISED BEFORE THE COURT

  1. Whether Section 13(2) of the Rent Control Act is ‘ultra vires[10]’ the Constitution of India?
  2. Whether a State Legislature has competency to define/alter the power of Supreme Court?
  3. Whether an order of tribunal can be directly appealed in the Supreme Court of India?

ARGUMENTS FROM THE APPEALANT SIDE

  • The learned counsel, argued that the Rent Control Act received the assent of the President of India and, therefore, it was valid and enforceable.
  • Learned counsel, submitted that the said act has been enacted by the Chhattisgarh State Legislature in exercise of legislative power conferred by Entry 18 of List 2[11].
  • Further, the learned counsel argued that Section 13(2) confers appellate jurisdiction on the Supreme Court of India, which the Supreme Court, in any case, always had and still has under Article 136[12] of the Constitution.
  • The learned counsel next argued that Section 13(2) is in consonance with Article 138 read with Article 200[13] which enables the State Legislature to enact a law curtailing the jurisdiction of the High Court subject to assent of the President of India.
  • Learned Counsel argued that Article 138(2) and Article 200 show that a state can make law related to the appellate jurisdiction of the Supreme Court in two conditions:
    • When the Government of India and the Government of State agree to confer jurisdiction and power of the Supreme Court[14].
    • When President assents, the Bill forwarded by the Governor[15].
  • Learned counsel submitted that in the aforementioned case, the President has assented to the Bill on the reference of the Governor, which has resulted in a new enactment.
  • The learned counsel finally submitted that the Rent Control Act has not conferred jurisdiction on the Supreme Court. Article 136 provides for an appeal to the Supreme Court against any order of any court or tribunal. The Rent Control Act is only in consonance with or may be an extension of the powers of the Supreme Court under Article 136 of the Indian Constitution.

ARGUMENTS FROM THE RESPONDENT SIDE

  • The learned Attorney General of India submitted that Section 13(2) is unconstitutional and same is beyond the legislative competence of the State Legislature of Chhattisgarh.
  • Learned Attorney General submitted that Entry 77 of List 1[16], read with Article 146(1)[17] confers on Parliament the exclusive jurisdiction to legislate with powers and jurisdiction of the Supreme Court. Furthermore, Entry 65 of List 2 and Entry 46 of List 3[18] prohibits State Legislature from legislating in regards to jurisdiction of the Supreme Court.
  • The learned Attorney General referred to a judgement of a division bench of the Apex Court, H.S. Yadav vs. Shakuntala Devi Parak[19] striking down Section 13(2) of the Rent Control Act as ultra vires the Constitution and beyond the scope of the powers of the State Legislature.

RELATED PROVISIONS

  • Rent Control Act:

Section 12: Rights and Obligations of Landlords and Tenants.

 (1) Every tenantshall have rights according to Schedule 1. The Tribunal and Rent Controller(s) shall act at all times to secure to the tenant these rights.

(2) Every landlord shall have rights according to Schedule 2. The Tribunal and Rent Controller shall act at all times to secure to the landlord these rights:

Provided that-

(a) In case of any clash of interests of the landlord and the tenant, and/or any point of doubt in respect of matters relating to rent, the benefit thereof shall be granted to the tenant.

(b) In case of any clash of interests of the landlord and the tenant, and/or any point of doubt in respect of matters relating to returning possession of the accommodation to the tenant, benefit thereof shall be granted to the landlord.

(3) Every landlord shall have obligations according to Schedule 3. The Tribunal and Rent Controller(s) shall act at all times to enforce upon the landlord these obligations.

(4) Every tenant shall have obligations according to Schedule 4. The Tribunal and Rent Controller(s) shall act at all times to enforce upon the tenant these obligations.

(5) Any willful attempt or act by the landlord to undermine or deny to the tenant the rights available to him in terms of Schedule 1 shall constitute an offence under this Act, punishable with fine not exceeding Rs. 5,000 or simple imprisonment for a period not exceeding three months or both.

(6) Any willful attempt or act by the tenant to undermine or deny to the landlord the rights available to him in terms of Schedule 2 shall constitute an offence under this Act, punishable with fine not exceeding Rs. 5,000 or simple imprisonment for a period not exceeding three months or both.

(7) Any attempt by the landlord to neglect for unsubstantial and/or insufficient reasons the obligations enjoined upon him in terms of Schedule 3 shall constitute an offence under this Act, punishable with fine not exceeding Rs. 5,000 or simple imprisonment for a period not exceeding three months or both.

(8) Any attempt by the tenant to neglect for unsubstantial and/or insufficient reasons the obligations enjoined upon him in terms of Schedule 4 shall constituted an offence under this Act, punishable with fine not exceeding Rs. 5,000 or simple imprisonment for a period not exceeding three months or both.

Section 13 Appeal:

  • Notwithstanding anything to the contrary contained in this Act, a landlord and/or tenant aggrieved by any order of the Rent Controller shall have the right to appeal in the prescribed manner within the prescribed time to the Rent Control Tribunal.
  • Appeal against an order of the Rent Control Tribunal shall lie with the Supreme Court.
  • Constitution of India:

Section 136. Special leave to appeal by the Supreme Court.:

  • Notwithstanding anything in this Chapter, the Supreme Court may, in its discretion, grant special leave to appeal from any judgement, decree, determination, sentence or order in any cause or matter passed or made by any court or tribunal in the territory of India.
  • Nothing in clause (1) shall apply to any judgement, determination, sentence or order passed or made by any court or tribunal constituted by or under any law relating to the Armed Forces.

Section 138. Enlargement of the jurisdiction of the Supreme Court.:

  • The Supreme Court shall have such further jurisdiction and powers with respect to any of the matters in the Union List as Parliament may by law confer.
  • The Supreme Court shall have such further jurisdiction and powers with respect to any matter as the Government of India and the Government of any State may by special agreement confer, if Parliament by law provides for the exercise of such jurisdiction and powers by the Supreme Court.

Section 146. Officers and servants and the expenses of the Supreme Court.:

  • Appointments of officers and servants of the Supreme Court shall be made by the Chief Justice of India or such other Judge or officer of the Court as he may direct:   

               Provided that the President may by rule require that in such cases as may be specified in the rule, no person not already attached to the Court shall be appointed to any office connected with the Court, save after consultation with the Union Public Service Commission

  • ) Subject to the provisions of any law made by Parliament, the conditions of service of officers and servants of the Supreme Court shall be such as may be prescribed by rules made by the Chief Justice of India or by some other Judge or officer of the Court authorised by the Chief Justice of India to make rules for the purpose: Provided that the rules made under this clause shall, so far as they relate to salaries, allowances, leave or pensions, require the approval of the President.
  • The administrative expenses of the Supreme Court, including all salaries, allowances and pensions payable to or in respect of the officers and servants of the Court, shall be charged upon the Consolidated Fund of India, and any fees or other moneys taken by the Court shall form part of that Fund.

Section 200. Assent to Bills.:

  • When a Bill has been passed by the Legislative Assembly of a State or, in the case of a State having a Legislative Council, has been passed by both Houses of the Legislature of the State, it shall be presented to the Governor and the Governor shall declare either that he assents to the Bill or that he withholds assent therefrom or that he reserves the Bill for the consideration of the President:

            Provided that the Governor may, as soon as possible after the presentation to him of the Bill for assent, return the Bill if it is not a Money Bill together with a message requesting that the House or Houses will reconsider the Bill or any specified provisions thereof and, in particular, will consider the desirability of introducing any such amendments as he may recommend in his message and, when a Bill is so returned, the House or Houses shall reconsider the Bill accordingly, and if the Bill is passed again by the House or Houses with or without amendment and presented to the Governor for assent, the Governor shall not withhold assent therefrom:

          Provided further that the Governor shall not assent to, but shall reserve for the consideration of the President, any Bill which in the opinion of the Governor would, if it became law, so derogate from the powers of the High Court as to endanger the position which that Court is by this Constitution designed to fill.

Section 245. Extent of laws made by Parliament and by the Legislatures of States.:

  • Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole any part of the State.
  • No law made by Parliament shall be deemed to be invalid on the ground that it would have extra-territorial operation.

Section 246. Subject-matter of laws made by Parliament and by the Legislatures of States.:

  • Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the “Union List”).
  • Notwithstanding anything in clause (3), Parliament, and, subject to clause (1), the Legislature of any State 1*** also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the “Concurrent List”).
  • Subject to clauses (1) and (2), the Legislature of any State has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in this Constitution referred to as the “State List”).
  • Parliament has power to make laws with respect to any matter for any part of the territory of India not included 2 [in a State] notwithstanding that such matter is a matter enumerated in the State List.

Schedule 7

  • List 1-Union List:
  • Entry 77: Constitution, organisation, jurisdiction and powers of the Supreme Court (including contempt of such Court), and the fees taken therein; persons entitled to practise before the Supreme Court.
  • List 2-State List:
  • Entry 18:  Land, that is to say, rights in or over land, land tenures including the relation of landlord and tenant, and the collection of rents; transfer and alienation of agricultural land; land improvement and agricultural loans; colonization
  • Entry 64: Offences against laws with respect to any of the matters in this List.
  • Entry 65: Jurisdiction and powers of all courts, except the Supreme Court, with respect to any of the matters in this List.
  • List 3-Concurrent List:
  • Entry 46: Jurisdiction and powers of all courts, except the Supreme Court, with respect to any of the matters in this List.

JUDGEMENT

  • The Bench of Apex Court while giving its final judgement said that “the argument of learned counsel that Article 138(1) and/or Entry 77 of the Union list only takes within its ambit, the original jurisdiction of the Supreme Court, and not its appellate jurisdiction is fallacious and without basis.
  • Further, the bench stated that the proposition urged by the learned counsel that when a state law gets the assent of the President then that law prevails in the state, notwithstanding repugnancy with an earlier union law, is unexceptionable.
  • President assent makes no difference in case of Legislative competence. Presidential assent cannot and does not validate an enactment in excess of legislative powers of the State Legislature, nor validate a statutory provision, which would render express provisions of the Constitution indolent.
  • Article 323B(2)(d)[20] or any other provision of the Constitution does not enable the State legislature to enact law which provides for statutory appeals directly to the Supreme Court.
  • Section 13(2) of the Rent Control Act purports to confer a right of statutory second appeal to the Supreme Court. Even in vase of concurrent findings of the Rent Controller and Rent Control Tribunal, where no serious question of law was involved, an appeal would have to be entertained and decided.
  • Such a provision which mandates the Supreme Court to consider an appeal is clearly beyond the legislative competence of the State legislature.
  • For the reason discussed above, the apex court held that the State Legislature lacked legislative competence to enact Section 13(2) of the Rent Control Act.
  • The Bench, finally declared Section 13(2) of the Rent Control Act ultra vires the Constitution of India, null and void and of no effect.  

CONCLUSION

From this landmark case it can be seen that for a law to be enacted, the Presidential assent is not only the mandate but the same must be checked by the courts for its legality. Since President acts on the aid and advice of the Council of Ministers, so sometimes the act which has been given assent may not be under the competence of that legislative authority.

According to Constitution, appeals must follow a hierarchy i.e., from lower court to the higher court. Direct appeal by citizens, to the Supreme Court can only be made in violation of their Fundamental Rights. The above discussed act made a provision of direct appeal to the Supreme Court so it was ultra vires the Constitution and is null and void.


[1] Author is 3rd semester student of The ICFAI University, Dehradun.

[2] Chhattisgarh Rent Control Act, 2011.

[3] Chhattisgarh Rent Control Act, 2011.

[4] See Constitution of India, Art 245.

[5] See Constitution of India, Art 246

[6] See Schedule 7 of Constitution of India.

[7] See Schedule 7 of Constitution of India.

[8] See Schedule 7 of Constitution of India.

[9] www.indianemployees.com.

[10] Beyond one’s legal power or authority.

[11] See Schedule 7 of Constitution of India.

[12] See Constitution of India, Art 136.

[13] See Constitution of India, Art 200.

[14] See Constitution of India, Art 138(2).

[15] See Constitution of India, 2nd proviso Art 200.

[16] See Schedule 7 of Constitution of India.

[17] See Constitution of India, Art 146.

[18] See Schedule 7 of Constitution of India.

[19] Civil appeal No. 5153 of 2019.

[20] See Constitution of India, Art 323(2)(d).

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