TMI Blog1971 (2) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... Mathura belonging to the respondent from a very long time at a monthly rental of ₹ 18.37. In 1962 the respondent wanted to construct rooms on the upper storey of the shop for his own residence. This construction could possibly be made only if the appellant vacated the shop for some period. On June 4, 1962, the appellant and the respondent entered into an agreement. After reciting the above facts it was agreed that the shop would be vacated by the appellant on the condition that as soon as the required construction had been completed he would resume possession of the shop. At this stage the following clauses of the agreement may be set out. 1. On this day the second party has withdrawn his possession from the shop bearing No. 1/2C, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. The High Court affirmed the judgment of the District Judge. It was held, inter-alia, that the respondent was entitled to rely on Section 1-A of the Act and the appellant could not be given the benefit of Section 3. 4. Now there can be no manner of doubt that the tenancy between the appellant and the respondent was governed by the provisions of the Act prior to the reconstruction of the premises. It appears to have been accepted that when the respondent made the reconstruction after the agreement mentioned above in 1962 the buildings came to be constructed within the terms of Section 1-A of the Act. That section says that nothing in the Act shall apply to any building or part of a building which was under, erection or was constructed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and capricious demands of the landlords. At the same time it appears that the legislature was conscious of the fact that the Act might retard and slacken the pace of construction of new buildings because the landlords would naturally be reluctant to invest money in properties the letting of which would be governed by the stringent provisions of the Act. It was for that purpose that the saving provision in Section 1-A seems to have been inserted. The essential question that has to be resolved is whether Section 1-A was merely in the nature of an exemption in favour of the landlords, with regard to the buildings constructed after January 1, 1951 and conferred a benefit on them which they could give up or waive by agreement or contractual arra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances, the legislature has expressly provided that any such agreement shall be void. In the footnote it is pointed out that there are many statutory provisions expressed to apply notwithstanding any agreement to the contrary , and also a stipulation by which a lessee is deprived of his right to apply for relief against forfeiture for breach of covenant (Law of Property Act, 1925). Section 23 of the Indian Contract Act provides: 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, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eworthy in this connection : Nor must it be forgotten that the rule by which contracts not expressly forbidden by statute or declared to be void are in proper cases nullified for disobedience to a statute is a rule of public policy only, and public policy understood in a wider sense may at times be better served by refusing to nullify a bargain save on Serious and sufficient grounds. 8. We are unable to hold that the performance of the agreement which was entered into between the parties in the present case would involve an illegal or unlawful act. In our judgment Section 1-A. was meant for the benefit of owners of buildings which were under erection or were constructed after January 1, 1951. If a particular owner did not wish to avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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