TMI Blog1974 (7) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... f time on June 30, 1952. Gupta, thereafter, leased the premises by a deed dated October 13, 1952 for a period of 10 years to Ram Agyan Singh, respondent No. 2. But there was no order allotting the accommodation to him under Section 7(2) of the Act. Respondent No. 2 also used the premises for exhibiting cinematograph films. Disputes having arisen between the parties, Gupta filed suits for recovery of rent as well as for ejectment against respondent No. 2. The appellants purchased the premises in question from Ram Swaroop Gupta by a sale deed dated March, 26, 1962. Thereafter they filed an application under Section 7 of the Act read with rule 6 made under the Act for release of the accommodation in their favour. On December 3, 1965, the Additional District Magistrate allowed the application and permitted the appellants to take possession of the premises. That was on the basis that the premises were in illegal occupation of respondent No. 2. The representation against this order filed by respondent No. 2 to the State Government was rejected on January 10, 1966 on the ground that there was no provision for any interference by Government with the order. On December 4, 1965, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is required to be reported and is not reported, or where an order requiring any accommodation to be let or not to be let has been duly passed under Sub-section (2) of Section 7 and the District Magistrate believes or has reason to believe that any person has in contravention of the said order, occupied the accommodation or any part thereof, he may call upon the person in occupation to show cause, within a time to be fixed by him, why he should not be evicted therefrom; Provided that no order under this section shall be passed if the District Magistrate is satisfied that there has been undue delay or it is otherwise inexpedient to do so The proviso to Sub-section (1) of Section 7-A is couched in wide language. The dictionary meaning of the Word 'inexpedient' is: The circumstances that could be taken into consideration to decide whether it is expedient or inexpedient to order an eviction under the section are not mentioned in the proviso. A great deal of discretion must, therefore, be vested in the District Magistrate and in the State Government when disposing a revision from an order passed by the District Magistrate as several factors would enter the making of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of eviction inexpedient under Section 7-A could not have been urged at that time by respondent No. 2. So, the inference that the State Government was not aware of the order for release on the ground that the appellants required the premises for their personal occupation could not be made from the fact that the State Government found that it was inexpedient to order the eviction of the second respondent in the exercise of its discretion under the proviso to Section 7-A when disposing of a revision. 9. We are not satisfied that the order of the State Government was vitiated by any error of law apparent on the face of the record. As already stated, the considerations which weighed with the State Government in rejecting the application, namely, the hardship to respondent No. 2 who was conducting a cinema in the premises from 1953 cannot be said to be irrelevant. As the order of the State Government did not suffer from any error of law apparent on the face of the record, the learned Single Judge was, not justified in quashing the order and the Division Bench rightly set aside the order of the learned Single Judge and allowed the appeal. 10. We dismiss the appeal but, in the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 406 a Full Bench of the Allahabad High Court took the view that a lease made in violation of the provisions of Section 7(2) would be valid between the parties and would create the relationship of landlord and tenant between them although it might not bind the authorities concerned. In the light of this the correctness of which we see no reason to doubt--we think that the respondent was a tenant. The respondent had been paying the rent to Ram Swaroop Gupta and to the appellants after the sale by him to the appellants. Tenant is defined under Section 2(g) of the Act as follows: 2(g) 'Tenant' means the person by whom rent is, or but for a contract express or implied, would be payable for any accommodation. 17. Now, the landlord and the tenant cannot, by their agreement bind the District Magistrate. In spite of the lease, the District Magistrate may treat the accommodation as vacant and evict therefrom the tenant who is in occupation of the accommodation without an allotment order. This is his statutory obligation But the appellants would be estopped from denying that the respondent is a tenant. The Act makes a distinction between a tenant by virtue of an allotment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... policy of the Act seems to be that a responsible authority like the District Magistrate should consider the claim of the landlord and the needs of the tenant before granting permission. There was alarming scarcity of accommodation. The object of legislature in enacting the law was to protect tenants from greedy and grasping landlords, and from their resorting to court for eviction of tenants without reasonable grounds. 21. Under Section 23 of the Indian Contract Act, 1872, an agreement is void if it defeats any provision of law: Section 23. The consideration or object of an agreement is lawful, unless-- it is forbidden by law; or is of such a nature, that, if permitted, it would defeat the provisions of any law, or is fraudulent; or involves or implies injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy. In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void. 22. Mr. Gupte, appearing for the appellants, referred to the decision of this Court in Lachoo Mal v. Radhey Shyam [1971]3SCR693 and said that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic policy underlying it which precludes a tenant from waiving its benefit. There can be no doubt that the provision has been enacted for protecting one set of men from another set of men, the one from their situation and condition are liable to be oppressed and imposed upon. Necessitous men are not free men. 26. In the Nineteenth-Century the doctrines of lasses faire capitalism were accepted as part of the natural order of things and the doctrine was reinforced by the idea of the early utilitarians that to achieve social justice, it would suffice to produce formal equality before the law. These views were reflected in contemporary legal thought by the idea that freedom of contract was the supreme article of public policy, a notion which ignored utterly those cases where there was no genuine equality of bargaining power as for example between master and servant or between landlord and tenant. See Dennts Lloyd, Public Policy (1953), pp. 136-137 27. There can be no doubt about the policy of the law, namely, the protection of a weaker class in the community from harassment of frivolous suits. But the question is, is there a public policy behind it which precludes a tenant fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ole community always a mere tacit consideration. The courts may have to strike a balance in express terms between community interests and sectional interests. So, here we are concerned with the general freedom of contract which everyone possesses as against the principle that this freedom shall not be used to subject a class, to the harassment of suits without valid or reasonable grounds. Though there is considerable support in judicial dicta for the view that courts cannot create new heads of public policy, See Gherulal Parakh v. Mahadcodas Maiya and Ors. [1959] Su. 2, SCR. 406 there is also no lack of judicial authority for the view that the categories of heads of public policy are not closed and that there remains a broad field within which courts can apply a variable notion of policy as a principle of judicial legislation or interpretation founded on the current needs of the community. See Dennis Lloyd, Public Policy (1953), pp. 112-113. 31. Public policy does not remain static in any given community. It may vary from generation to generation and even in the same generation. Public policy would be almost useless if it were to remain in fixed moulds for all time. 32. If ..... X X X X Extracts X X X X X X X X Extracts X X X X
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