Created byFuzzy Cloud

Supreme Court of India

M/S UNICHEM LABORATORIES LTD.versusRANI DEVI & ANR.

Citation
2017 INSC 361
Decided
18 April 2017
Disposal
Appeal(s) allowed

Holding

Section 13 does not oust the jurisdiction of civil courts to try eviction suits, and after the deletion of Section 21 the jurisdiction rests with civil courts under Section 9 of the CPC, allowing the employer to evict former employees who no longer have a tenancy right.

Summary

Mis Unichem Laboratories Ltd., a company that provided housing to its industrial workers under the Uttar Pradesh Industrial Housing Act, 1955, sought eviction of Rani Devi and others who continued to occupy a quarter after the original allottee, Dharam Dev Yadav, retired and later died. The company filed a civil suit for eviction and damages, which the trial court upheld. The High Court set aside the decree, holding that the company lacked locus and that the suit was barred by Section 13 of the Act. The Supreme Court examined whether Section 13 ousted civil courts' jurisdiction, the effect of the deletion of Section 21, and whether a tenancy existed between employer and employee. It held that Section 13 merely restricts aggrieved workers from challenging orders, does not bar civil courts from hearing eviction suits, and that after the deletion of Section 21 the jurisdiction reverted to civil courts under Section 9 of the CPC. The Court also affirmed that tenancy created by an employer for accommodation ends on termination of employment, making the respondents unlawful occupants. Consequently, the appeal was allowed, the High Court order set aside, and the trial court decree restored.

Issues considered

  • The scope and effect of Section 13 of the Uttar Pradesh Industrial Housing Act, 1955 on civil court jurisdiction in eviction suits
  • Whether the deletion of Section 21 of the Act restored jurisdiction to civil courts under Section 9 of the CPC
  • Whether the employer (company) had locus and a contractual tenancy relationship to sue for eviction of the former employee's family
  • Whether the tenancy between employer and employee terminates upon retirement, rendering continued occupation illegal

Legislation cited

Subjects

evictiontenancyemployer-employee relationshipindustrial housingcivil court jurisdictionSection 13Section 21Section 630 Companies Actcontract of tenancylandlord-tenant

Judgment

                        [2017] 6 S.C.R. 673


             MIS UNICHEM LABORATORIES LTD.                               A
                                 v.
                       RANI DEVI & ANR.
                   (Civil Appeal No. 5335 of2017)
                          APRIL 18, 2017                                 B
  [R. K. AGRAWAL AND ABBAY MANOHAR SAPRE, JJ.)
      Uttar Pradesh Industrial Housing Act, 1955:
       s.13 - Housing for industrial workers in the State of U.P -
Tenancy between employer and employee - Jurisdiction of Civil            C
Courts to try eviction suit flied by employer under the Act, if barred
- Held: s.13 only restricts the rights of the worker/person in
approaching the Courts to question the legality of the action taken
under the Act - It cannot be construed as ousting the jurisdiction
of Civil Courts to try eviction suit flied by employer under the Act ~
A suit flied to claim eviction from any accommodation is a suit of       D
 "civil nature" and, therefore, a Civil Court is competent to take
cognizance of such suit as provided uls. 9, CPC, 1908 unless its
jurisdiction is expressly or impliedly barred - Thus, in the instant
 case, Civil Court was justified in trying the eviction suit flied by
 employer against the worker (husband of the respondent) who failed      E
 to vacate the quarter after his retirement from employment - Order
of Trial Court directing eviction of respondents, restored -
Respondents granted 3 months' time to vacate the suit quarter on
depositing entire decreeta/ amount awarded by Trial Court and also
 to deposit three months' rent by way of damages for use and
 occupation at the rate determined by the Trial Court - Code of          F
 Civil Procedure, 1908 - s.9.
       s.21 - Deletion of. by 1972 amendment - Effect of - Held:
 The power to decide eviction cases under the Act was earlier vested
 with Labour Commissioner uls.21 - However. the deletion of said
 section resulted in restoring the power to try eviction suit by Civil   G
 Courts in terms of s.9, CPC, 1908 - Code of Civil Procedure, 1908
 -s.9.
        Code of Civil Procedure, 1908 - s. 9 - Jurisdiction of Civil
 Courts - Exclusion of - Inference of - Held: Provisions excluding
jurisdiction of Civil Courts are required to be construed strictly -     H
                                673
·.
     674            SUPREME COURT REPORTS                       [2017] 6 S.C.R.


     A     Thus, exclusion ofjurisdiction of the Civil Court is not to be readily
           inferred and such exclusion is either to be "explicitly expressed or
           clearly implied" - Interpretation of Statutes - Strict rule of
           interpretation - Jurisdiction.
                  Jurisdiction - Ouster of Civil Courts jurisdiction - Burden
     B     of proof - Held: Existence of jurisdiction in Civil Courts to decide
           questions of civil nature is a general rule whereas exclusion is an
           exception - Therefore, the burden to prove such exclusion is on the
           party who raises such a contention.
                  Rent Control and Eviction - Contract of tenancy blw employer
           and employee - Respondents husband-worker allotted quarter
     C     during his employment, failed to vacate it on his retirement and
           after his death respondents continued to occupy the same - Held: A·
           contract of tenancy created between the employer and employee in
           relation to any accommodation terminates on the cessation of the
           employment of the employee - Such employee then has no right to
     D     remain in occupation of the accommodation - He has to then
           surrender the accommodation to his employer.
                  Companies Act, 1956 - s. 630 - Effect of - Held: S.630
           enables the Company to file a complaint against the employee, if.
           on termination of his employment, he fails to vacate· the
      E
           accommodation allotted to him by the Company by virtue of his
           employment.
                  Allowing the appeals, the Court
                  HELD: 1.1 The rigour of Section 13 of the Uttar Pradesh
           Industrial Housing Act, 1955 does not put any fetter on the powers
           of the Civil Court to try and decide the eviction cases filed by the
      F
           State or any authority or allotee of the houses against the person
           in possession of the quarter on and after 28.04.1972. [Para 21)
           [681-D)
                  1.2 Section 13 only provides that if any order is passed by
           the State Government or Labour Commissioner under the Act, it
     ·G    shall not be called in question in any Court and no Court shall
           grant any injunction in respect of any action taken or to be taken
            under the Act. This only means that no industrial worker or any
           person alike. him, aggrieved of any order passed under the Act
           will have a right to file any case in the Civil· Court to challenge
      H     the legality of any such order or/and action taken under the Act.
 MIS UNICHEM LABORATORIES LTD. v. RANI DEVI & ANR.                       675


In other words, it only restricts the rights of the worker/person        A
in approaching the Courts to question the legality of the action
taken under the Act. This. Section cannot be construed as ousting
the jurisdiction of the Civil Court to try the eviction suit filed by
the employer under the Act. (Paras 22, 23) · (681-D-G)
       1.3 It is a settled principle of law that exclusion of            B
jurisdiction of the Civil Court is not to be readily inferred and
such exclusion is either to be "explicitly expressed or clearly
implied". It is a principle by no means to be whittled down and
has been referred to as a "fundamental .rule". As a necessary
corollary of this rule, provisions excluding jurisdiction of Civil
Courts are required to be construed strictly. It is trite rule of        C
interpretation that existence of jurisdiction in Civil Courts to
decide questions of civil nature is a general rule whereas the
exclusion is an exception. The burden is, therefore, on the party
who raises such a contention to prove such exclusion. It is not so
in this case. (Para 24] (681-G-H; 682-A-B)
                                                                         D
      Interpretation of Statutes by GP. Singh, 12•h Edition,
       pages 747-748 - referred to.
       2.1 The power to decide the eviction cases under the Act
was earlier vested with the Labour Commissioner under Section
21 of the Act. However, by U.P. Act No. 22/1972, Section 21 was
deleted with effect from 28.04.1972. This necessarily resulted in        E
restoring the power to try the eviction suit by the Civil Court
under general law in terms of Section 9 of the Code of Civil
Procedure 1908. (Para 18] (680-F)
       2.2 Section 9 of the Code provides that the Courts shall
have jurisdiction to try all suits of a "civil nature" excepting suits   F
of which their cognizance is either expressly or impliedly barred.
A suit filed to claim eviction from any accommodation is a suit of
"civil nature" and, therefore, the Civil Court is competent to
take cognizance of such suit unless its jurisdiction is expressly
or impliedly barred by virtue of any special Enactment. It is not
so in the present case. (Para 19) (680-G-H)                              0
       3. A contract of tenancy created between the .employer and
employee in r~liltion to any accommodation terminates on the
cessation of the employment of an employee. In other words,
such tenancy is only for the period of employment and comes to
an end on termination of the contract of employment. Such                H
676           SUPREME COURT REPORTS                       [2017] 6 S.C.R.


A employee then has no right to remain in occupation of the
  accommodation once he ceases to be in the employment of his
  employer. He has to then surrender the accommodation to his
  employer. [Para 30) [683-E-F)
         4. Section 630 of the Companies Act, 1956 also deals with
B such type of cases arising between the Company and its employees
  to whom the Company has provided the accommodation as part
  of his service conditions. The Section enables the Company to
  file a complaint against their employee, if he fails to vacate the
  accommodation allotted to him by the Company by virtue of his
  employment on termination of his employment. Such complaint
C can be filed by the Company in the competent Court wherein the
  Company can seek employee's prosecution, eviction from the
  accommodation and also for imposition of the fine as specified in
  the Section. [Paras 33, 34) (684-B-C)
         CNIL APPELLATE JURISDICTION: Civil Appeal No. 5335
D of2017.
         From the Judgment and Order dated 15 .10.2012 ofthe High Court
  of Judicature at Allahabad in allowing the Civil Revision No. 441 of2012
                                    WITH
         C. A. Nos. 5336 and 5337 of2017.
E        Sudhir Chandra, Sr. Adv., Bhagabati Prasad Padhy, Sachin Gupta,
  Divyesh Shrivastava, Advs. for the Appellant
         Jay Savla, Ms. Renuka Sahu, Ms. Amrita Mishra, Sudhir
  Kulshreshtha, Sameer Kulshreshtha, Advs. for the Respondents.
         The Judgment of the Court was delivered by
F        ABBAY MANOHAR SAPRE, J.
         S.L.P.<cl No. 11472 of 2013
         1. Leave granted.
         2. This appeal is filed against the final judgment and order dated
   15.10.2012 passed by the High Court of Judicature at Allahabad in Civil
G Revision No. 441 of2012 whereby the High <;ourt allowed the revision
  and set aside the judgment/decree dated 30.07.2012 passed by the
  Additional District and Sessions Judge, Small Causes Court, Ghaziabad,
  U.P. in SCC No. 39 of2001.
         3. The appellant is the plaintiff whereas the respondents are the
 H defendants in the civil suit out of which this appeal arises.
  MIS UNICHEM·LAJ;JORATORIES LTD. v. RANI DEVI & ANR. · 677
             [ABBAY MANOHAR SAPRE, J.]

      · 4. The appellant is a Public Limited Company registered under A
 the Companies Act. Its registered office is at Mumbai. The appellant
 has one industrial unit at Industrial Area, Meerut Road in Ghaziabad
 (UP).
         5. The State ofU .P. has enacted an Act called "The Uttar Pradesh
  Industrial Housing Act, 1955" (hereinafter referred to as "the Act").         B
  The object ofthis Act is to provide housing to industrial workers by the
  State or local authorities working in the industries in the State of UP..
         6. Some Sections of the Act, which are relevant for this case,
  need mention. Section 3 provides that the Act shall apply to those houses
. which are constructed by the State or the authorities specified in the
  Section for the occupation of the Industrial workers under the Industrial     C
  Housing Scheme subsidized by the Central Government or any Scheme
  notified in the Official Gazette. Section 4 empowers the State Government
  to appoint Labour Commissioner to exercise the powers under the Act
  in relation to the houses and other matters specified therein. Section 7
  specifies the duties of the Labour Commissioner. Sections 10 and 11           D
  deal with allotment ofhouses and the manner in which the allotment is to
  be made. Section 12 specifies the conditions of occupation of the houses
  by the allottees. Section 13 deals with the bar ofjurisdiction of the Court
  and provides that no order made by the State or Labour Commissioner
  under the Act would be called in question in any Court and no injunction
  shall be granted by any Court or any authority in respect of any action       E
  taken in pursuance of any power conferred by or under the Act. Sections
  15 and 16 empower the Labour Commissioner to fix the rates of re~t
  and the manner of its payment. Section 18 empowers the Labour
  Commissioner to enter into any house for the purpose of administering
  or carrying out the provisions of the Act. Section 20 enables the employer    F
  of the allottee to enter into an agreement with the Labour Commissioner
  for recovery of rent every month from the salary of their
  employee(allottee). Section 21 so long as it was a part of the A-ct (since
  deleted w.e.f28.4. 72) had empowered the Labour Commissioner to evict
  any allottee from the allotted house on the grounds specified therein.
  Section 22 provides a right of appeal to the State against the order of       G
  Labour Commissioner. Section 28 provides rule-making power to carry
  out the provisions of the Act. This, in substance, is the Scheme of the
  Act.
         7. The State Government constructed several houses in accordance
  with the provisions of the Act and allotted, quarter Nos. 5,6,7,8,11 and 12   H
678.            SUPREME COURT REPORTS                          [2017] 6 S.C.R.


A      in Block No. 59 at Industrial Labour Colony, Ghaziabad to the appellant
       vide order dated 29.04.1971 so as to enable the appellant to allot these
       houses/quarters to the workers for their use and occupation while they
       were in the appellant's employment. The allotment order issued by the
       State, inter alia, provided that, (l) monthly rent of each quarter would
       be Rs. 23/-; (2) The quarters would be used only for residence by the
B      eligible worker; (3) The allottee of the quarter shall deposit security
       money of Rs. 46/- per quarter and will also execute agreement as
       prescribed before occupying the quarter; and (4) In the event, it is found
       that the allotment is made to ineligible worker, his tenancy shall cease
       attracting penal action as provided under the Act/Rules etc.
c        8. Respondent No. I's husband-Dharam Dev Yadav was in the
  employment of the appellant as industrial worker. He was working in
  the appellant's industrial unit. On 11.05.1971, he applied to the appellant
  for allotment of one quarter for his use and occupation. The appellant,
  vide order dated 12.05.71, allotted quarter No.5 in Block No. 59 in the
D industrial colony at Ghaziabad to Dharam Dev Yadav. On allotment,
  Dharam Dev Yadav executed a declaration as required under the Act/
  Rule.
          9. Dharam Dev Yadav retired from the appellant's service on
   12.01.1992. He, however, made request to the appellant vide his letter
 E dated 11.01.92 to allow him to remain in occupation of the quarter for a
   period of six months. The appellant acceded to his request and accordingly
   granted him time to vacate the quarter on or before 30.06.1992 on
   humanitarian ground. Dharam Dev Yadav did not vacate the quarter.
   after expiry of six months and continued to remain in its occupation. In
   the meantime, he died leaving behind his wife (respondent No. l herein)
 F who also continued to remain in the occupation of the quarter along with
   her family members.
             l 0. The appellant, therefore, filed a civil suit in the year 200 l
     being S.C.C. No 39/2001 before the Additional District & Sessions Judge,
     Ghaziabad against the respondents. The suit was for respondent's eviction
 G from the quarter in question and also for claiming damages for its use
     and occupation payable from 30.06.1992. It was alleged that the allotment
     period having come to an end on the date of retirement of Dharam Dev·
   . Yadavon 12.01.1992 and the same having been extended for six months
     till 30.06.1992, he was under legal as well as contractual obligation to
 H vacate the quarter on and after 30.06.1992. It was alleged that the
 MIS UNICHEM LABORATORIES LTD. v. RANI DEVI & ANR:                                679
            [ABHAY MANOHAR SAPRE, J.]

respondents, who claim through Dharam Dev Yadav had no independent                A
right to remain in occupation of the quarter because they were neither in
the appellant's employment and nor any allotment order had been issued
by the appellant or/and the State in their favour in relation to quarter No.
5. It was alleged that the respondents are, therefore, in illegal occupation
of the quarter in question as trespasser and hence were liable to be              B
evicted from the said quarter.
       11. The respondents filed their written statement and denied the
claim made by the appellant. It was alleged that the appellant being a
Company had no right to file a suit unless resolution had been passed
authorizing the plaintiff-Company to file the suit against the respondents.       C
It was alleged that the appellant not being the owner of the quarter in
question had no right to file a civil suit seeking respondent's eviction
from the quarter. The respondents then alleged that they were, in
occupation of the suit house as tenant. The respondents also alleged
that the suit was barred by virtue of Section 13 of the Act read with
Section 23 of the Small Cause Courts Act and hence it was liable to be            D
dismissed as being barred.
         12. The Trial Court framed 9 issues. Parties adduced evidence.
The Trial Court, vide judgment/decree dated 30.07.2012 decreed the
appellant's suit and passed eviction decree against the respondents. It
was held that, (i) the suit is maintainable; (ii) there existed a relationship    E
of landlord and tenant between the plaintiff and Dharam Dev Yadav;
(iii) the monthly rent of suit house is Rs 34/-; (iv) the suit is not barred by
Section 13 of the Act read with Section 23 of the Provincial Small Cause
Courts Act; (v) the District Judge has jurisdiction to try the suit; (vi) the
plaintiff is authorized and hence competent to file the civil suit; (vii)
Dharam Dev Yadav was under contractual and legal obligation to vacate             F
the suit house no sooner he retired from service; (viii) the tenancy in
respect of the quarter came to end on termination of the employment of
Dharam Dev; (ix) defendant No. 1 being wife of the original allottee
had no right to occupy the quarter in question because she was neither a
workman and nor the allottee; and (x) the plaintiff was entitled to claim         G
Rs. 1000/-per month from the defendants from 25.9.1998 till the date of
filing the suit and Rs. 1000/- per month during the pendency of suit till
possession is taken of the suit house from the defendants.
      13. Felt aggrieved, the defendants filed revision before the High
Court under Section 25 of the Small Cause Courts Act. By.impugned. H
680             SUPREME COURT REPORTS                             [2017] 6 S.C.R.


A     order, the High Court allowed the revision, set aside the judgment/decree
      of the Trial Court and dismissed the appellant's suit. The High Court
      held that, (i)the civil suit at the instance of the plaintiff(appellant) is not
      maintainable for want of plaintiff's (appellant's) locus; (ii) the suit,
      however, is not barred by Section 13 of the Act; (iii) such suit, however,
B     could be filed by the State Government or/and Labour Commissioner;.
      and (iv) there was no relationship of landlord and tenant between the
      appellant and the original allottee. The High Court then proceeded to
      give directions to the Principal Secretary, Labour to take action against
      the erring officials who failed to take any action to obtain possession of
      the quarters from illegal occupants.
 c          14. Felt aggrieved, the plaintiff filed present appeal by way of
      special leave before this Court.
            15. Heard Mr. Sudhir Chandra, learned senior counsel fo~ the
      appellant and Mr. Jay Savla, learned counsel for respondent No.2.
 D           16. Having heard learned counsel for the parties and on perusal
      of the record of the case, we are inclined to allow the appeal and while
      setting aside the impugned order and restore the judgment/decree of
      the Trial Court, which rightly decreed appellant's suit against the
      respondents.
 E           17. In our considered opinion, both the Courts rightly held that the
      Civil Suit is not barred under Section 13 ofthe Act. The reasons are not
      far to seek.
             18. As would be clear from the provisions of the Act, the power
      to decide the eviction cases under the Act was earlier vested with the
      Labour Commissioner under Section 21 of the Act. However, by U.P.
 F
      Act No. 22/1972, Section 21 was deleted with effect from 28.04.1972.
      This necessarily resulted in restoring the power to try the eviction suit by
      the Civil Court under general law in terms of Section 9 of the Code of
      Civil Procedure 1908 (hereinafter referred to as "the Code").          ·
 G           19. Section 9 of the Code provides that the Courts shall have
      jurisdiction to try all suits of a "civil nature" excepting suits of which
      their cognizance is either expressly or impliedly barred. A suit filed to
      claim eviction from any accommodation is a suit of"civil nature" and,
      therefore, the Civil Court is competent to take cognizance of such suit
      unless its jurisdiction is expressly or impliedly barred by virtue of any
 H    special Enactment. It is not so here.
                                                    I




 MIS UNICHEM LABORATORIES LTD. v. RANI DEVI & ANR.                             681
            [ABHAY MANOHAR SAPRE, J.]

      20. As mentioned above, the jurisdiction of the Civil Court to try       A
the eviction cases arising under the Act was barred by virtue of Section
21 till 28.04.1972 because the power to try such cases was vested in
Labour Commissioner. It was permissible for the Legislature to do so.
However, on and after 28.04.1972, Labour Commissioner was divested
with the power to try the eviction cases by reason of deletion of Section      B
21 from the Act. The jurisdiction to try the suits arising under the Act,
therefore, stood restored to the Civil Court by virtue of Section 9 of the
Code because the Legislature then did not confer such powers to try the
matters arising under the Act on other specified authority on and after
28.04.1972. It is for these reasons, we are of the considered opinion that
the Civil Court was justified in trying and deciding the suit out of which     C
this appeal arises.
       21. So far as rigour of Section 13 of the Act is concerned, in our
opinion, it does not put any fetter on the powers of the Civil Court to try
and decide the eviction cases filed by the State or any authority or allotee
of the houses against the person in possession of the quarter on and D
after 28.04.1972.
      22. Section 13 only provides that if any order is passed by the
State Government or Labour Commissioner under the Act, it shall not
be called in question in any Court and no Court shall grant any injunction
in respect of any action taken or to be taken under the Act.                   E
        23. This, in our opinion, only means that no industrial worker or
any person alike him, if feels aggrieved of any order passed under the
Act by the specified authority, will have a right to file any case in the
Civil Court to challenge the legality of any such order or/and action
taken under the Act. In other words, it only restricts the rights of the       F
worker/person in approaching the Courts to question the legality of the
action taken under the Act. This Section unlike Section 21 cannot be
construed as ousting the jurisdiction of the Civil Court to try the eviction
suit filed by the employer under the Act.
       24~ It is a settled principle oflaw that exclusion ofjurisdiction of G
the Civil Court is not to be readily inferred and such exclusion is either
be "explicitly expressed or clearly implied'. It is a principle by no
means to be whittled down and has been referred to as a "fundamental
rule". As a necessary corollary of this rule, provisions excluding
jurisdiction of Civil Courts are required to be construed strictly. In other
                                                                             H
682            SUPREME COURT REPORTS                            [2017] 6 S.C.R.


A     words, it is trite rule of interpretation that existence of jurisdiction in
      Civil Courts to decide questions of civil nature is a general rule whereas
      the exclusion is an exception. The burden is, therefore, on the party
      who raises such a contention to prove such exclusion. (See
      Interpretation of Statutes by GP. Singh, 12'h Edition, pages 747-
      748). It is not so in this case.
B
             25. It is for these reasons, we are of the view that both the Courts
      below were right in holding that the suit is not hit by rigors of Section 13
      of the Act.
             26. This takes us to examine the next question, namely, whether
 c    the High Court was justified in holding that the appellant (company) had.
      no right to file the suit for want of any locus qua the defendants in
      relation to the quarter or in other words, whether the High Court was
      justified in holding that there was no privity of contract of any nature
      between the appellant and Dharam Das Yadav in relation to the quarter
      and, therefore, they were not competent to file a suit under the Act to
 D    seek respondents eviction from the quarter and such suit could be filed
      either by the State or/and Labour Commissioner? Yet another question
      as to whether the High Gourt was justified in holding that there did not
      exist any tenancy between the appellant and the worker in respect of
      the quarter? We do not agree with the view taken by the High Court as,
 E    in our view, the questions posed deserve to be answered in appellant's
      favour and against the respondents for the reasons mentioned infra.
          27. It is not in dispute that the State had allotted the quarters to
   the appellant under the Act by issuing an allotment order. It is also not in
   dispute that the allotment of quarters was made by the appellant to their
 F workers for their use and occupation, who were in their employment.
   That apart and as would be clear, the Act enabled the appellant to deduct
   the rent every month from the monthly salary of the workers under the
   Act and lastly, there existed a relationship of the employer and the
   employee between the appellant and the allottee-worker due to which
   only, the workers were eligible to secure the quarter under the Act as a
 G part of their service conditions.
             28. In our considered opinion, the aforesaid undisputed facts were
      sufficient to hold that contractual relationship between the appellant and
      the allottee-worker in relation to the quarter for deciding their inter se
      rights had come into existence. It could be, therefore, construed as
 H
 MIS UNICHEM LABORATORIES LTD. v. RANI DEVI & ANR.                             683
                  [ABHAY MANOHAR SAPRE, J.]

tenancy agreement between the parties. The appellant was, therefore,           A
competent to file the civil suit against the worker for his eviction from
the quarter allotted to him on the strength of such agreement by taking
recourse to the provisions of the Act. The breaches alleged by the
appellant against the respondents in the suit rendered the worker and all
those claiming through him liable to suffer the eviction order because         B
such breaches were rightly held prov!!d by the Trial Court.
       29. This takes us to examine one more question, which arises for
consideration, namely, status of the allottee-worker qua the appellant on
his ceasing to be in the appellant's employment in relation to the quarter.
It is not in dispute that the quarter in question was allotted to Dharam
Dev Yadav by virtue of he being in the appellant's employment. It is also C
not in dispute that he retired from the service on 12.01.1992. He was,
therefore, under contractual obligation to vacate the quarter on his
retirement. He did not do so and instead sought extension to vacate the
quarter after six months. The appellant granted it. Despite grant of
extension, he did not vacate after expiry of six months. In the meantime, D
he died and his family members (respondents) continued to remain in its
occupation.
       30. The law on this question is well settled. A contract of tenancy
created between the employer and employee in relation to any
accommodation terminates on the cessation of the employment of an              E
employee. In other words, such tenancy is only for the period of
employment and comes to an end on termination of the contract of
employment. Such employee then has no right to remain in occupation
of the accommodation once he ceases to be in the employment of his
employer. He has to then surrender the accommodation to his employer.
                                                                               F
       31. In this case, the possession of the original allottee Dharam
Dev Yadav became illegal on and after 12.01.1992 when he retired. from
service because on this date, tenancy in relation to suit quarter also
came to an end. In any event, it became unauthorized on and after
30.06.1992. The respondents too had no independent right to remain in
occupation of the quarter in question because they were neither in the         G
employment of the appellant and nor were the allottees under the Act so
as to entitle them to remain in possession on their own rights.
      32. The Trial Court was, therefore, justified in recording the
aforesaid findings against the respondents and was also justified in passing
                                                                               H
684            SUPREME COURT REPORTS                          [2017] 6 S.C.R.


A decree for eviction and recovery of rent by way of damages against the
  respondents. We find no good ground to interfere in any of these findings.
  They are accordingly upheld.
             33. We may mention here that Section 630 of the Companies Act
      also deals with such type of cases arising between the Company and its
B     employees to whom the Company has provided the accommodation as
      part of his service conditions.
             34. The Section enables the Company to file a complaint against
      their employee, ifhe fails to vacate the accommodation allotted to him
      by the Company by virtue of his employment on termination of his
 c    employment. Such complaint can be filed by the Company in the
      competent Court wherein the Company can seek employee's prosecution,
      eviction from the accommodation and also for imposition of the fine as
      specified in the Section.
          35. The appellant-Company, in this case could, therefore, also
 D take recourse to invoke. the remedy available against the respondents
   under the Companies Act. It was legally permissible for them to do so
   because the Act did not bar the applicability of Companies Act for
   resorting to such remedy against the respondents. Be that as it may.
            36. Learned counsel for the respondents lastly submitted that the
 E    State/Central Government has issued some G.Os. which, according to
      him, enable the workers occupying the quarters after ceasing to be in
      the employment to purchase the quarters as per the .Procedure prescribed
      intheGOs.
             37. It is not for this Court to examine this question in these
 F
      proceedings for the simple reason that this appeal is confined only to
      examine the legality of an order passed by the .tfigh Court in the eviction
      suit. We, therefore, express no opinion on this question.
         38. In the light bf foregoing discussion, we cannot concur with the
   reasoning and the conclusion of the High Court. The appeal thus succeeds
 G and is allowed. The impugned order is set aside and that of the Trial
   Court is restored.
             39. The respondents are granted 3 months' time to vacate the suit
      quarter provided they deposit the entire decreetal amount awarded by
      the Trial Court and also deposit the three months' rent by way ofdamages
      for use and occupation at the same rate determined by the Trial Court.
 H
 WS UNICHEM LABORATORIES LTD. v. RANI DEVI & ANR.                            685
                 [ABHAY MANOHAR SAPRE, J.)

       40. Let the decretal amount be deposited in the concerned Trial A
Court within one month. Failure to deposit the amount within one month
will entitle the appellant to execute the decree forthwith.
      In S.L.P.(c) Nos. 13070 of 2013 and 27328 of 2014
      Leave granted.
                                                                             B
       In view of the aforesaid judgment passed in appeal arising out of
S.L.P.(c) No. 11472 of2013, these appeals are also allowed on the same
terms and conditions.
Divya Pandey                                              Appeals allowed.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "eviction"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.