Holding

The Act does not apply because the premises are deemed newly constructed under Section 2(2) Explanation I, and the High Court was correct in refusing to disturb the trial court’s factual finding and in rejecting the application for additional evidence.

Summary

The tenant, Shri Mundri Lal, challenged an eviction suit filed by his landlord, Smt. Sushila Rani, under the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, contending that the premises were a "new construction" and therefore exempt under Section 2(2) of the Act. The trial court held the premises were newly constructed and the Act did not apply; the High Court, on revision, reversed this finding, holding the Act applicable because the ten‑year exemption period had elapsed during the pendency of the suit. The Supreme Court set aside the High Court’s order, remitted the matter, and the High Court again refused to admit additional evidence and declined to interfere with the trial court’s factual finding, citing the limited scope of revisional jurisdiction. The Supreme Court affirmed that the premises are deemed newly constructed under Section 2(2) Explanation I, that the High Court correctly exercised its discretion in rejecting the additional‑evidence application, and that revisional jurisdiction may intervene only on questions of law or mixed law‑fact where irrelevant factors are considered. Consequently, the appeal was dismissed.

Issues considered

Whether the premises fall within the exemption of Section 2(2) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 as a ‘new construction’.
Whether the High Court could interfere with the trial court’s factual finding under its revisional jurisdiction under Section 25 of the Provincial Small Causes Courts Act.
Whether the application for adduction of additional evidence under Order 41 Rule 27 CPC was rightly rejected.
Scope of revisional jurisdiction: whether it is limited to questions of law or can extend to mixed questions of law and fact.

Legislation cited

Code of Civil Procedure, 1908s. 115
Constitution of Indias. Article 136
Transfer of Property Acts. 106
Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972s. 2(2)

Subjects

evictionrentexemptionnew constructionUttar Pradesh Urban Buildings Actrevisional jurisdictionProvincial Small Causes Courts Actadditional evidencelegal fictionmixed question of law and fact

Judgment

SHRI MUNDRI LAL A
) v.
SMT. SUSHILA RANI AND ANR.

SEPTEMBER 18, 2007

[S.B. SINHA AND H.S. BEDI, JJ.] B

Uttar Pradesh Urban Buildings (Regulation ofLetting, Rent and
~ Eviction) Act, 1972-s. 2(2)-Suitfor eviction oftenanted premises-
Seeking exemption ofapplicability ofthe Act-Claiming the premises c
to be new construction falling within exemption provision-Trial
Court holding that the Act was not applicable as the premises would
be deemed to be newly constructed-Revision application in terms of
Provincial Small Cause Courts Act-High Court holding that the Act
was applicable-Supreme Court setting aside the judgment of High D
Court and remitting for fresh consideration-High Court denied
... adduction of additional evidence and refused to interfere with the
question regarding applicability of the Act in exercise ofrevisional
jurisdiction-On appeal, held: The Act was not applicable as in the
facts of the case, the construction would be deemed to be new- E
Adduction of additional evidence rejected on valid grounds-High
Court rightly refused to interfere with the finding offact in exercise
ofrevisionaljurisdiction-Provincial Small Causes Courts Act-s. 25.

Provincial Small Causes Courts Act-s. 25-Revisional
jurisdiction under-Scope of-Held: Such jurisdiction can be exercised F
only when a question of law arises-A pure finding offact based on
apprecimion of evidence may not be interfered with-But, if such
finding is based on irrelevant factors, it can be interfered with-
Revisional jurisdiction under the Act is wider than the jurisdiction
u/s 115 CPC-Code ofCivil Procedure, 1908-s. 115. G
Pleadings-Inadequate pleadings-Effect of-Held: When
parties go into trial knowing fully well about the issues involved, the
judgment based on inadequate pleadings would not have effect.

99 H
100 SUPREME COURT REPORTS [2007] 10 S.C.R.

A Appellant was the tenant and respondent was the landlord of
the premises in question. Respondent filed a suit for eviction, rather (
than filing an application under Uttar Pradesh Urban Buildings
(Regulation of Letting, Rent and Eviction) Act, 1972, on the ground
that the premises being a new construction, the Act was not
B applicable to the same under exemption provision i.e. Section 2(2)
of the Act. One of the issues was with regard to applicability of the
Act to the premises. Trial Court held that the property in question
would be deemed to be newly constructed and hence the Act was
not applicable on the same. Appellant filed Revision Application ~
thereagainst in terms of S~ction 25 of Provincial Small Causes
c Courts Act High Court though approved finding offact by trial Court,
but relying on a judgment, held that the Act would be applicable as
period of 10 years [the exempted period by Section 2 (2)) have
lapsed during the pendency of the suit. In appeal Supreme Court set
aside the order holding that the judgment relied on by the High Court,
D
had been overruled by another decision. The matter was remitted
to High Court for disposal in accordance with law. .,_
Before High Court, appellant filed an application for adduction
ofadditional evidence in terms of Order 41Rule27 CPC. High Court
E refused to exercise its discretionary jurisdiction stating that the
requirements of the said provision had not been fulfilled and
regarding applicability of the Act, it held that the finding of fact arrived
at by the Court below, cannot be interfered with in exercise of
revisionaljurisdiction. Hence the present appeal.
F Dismissing the appeal, the Court
HELD: 1.1. Appellant's application for adduction of additional
evidence has been rejected on valid grounds by the High Court. It,
for cogent and sufficient reasons, refused to exercise its
G discretionary jurisdiction. There is no reason to interfere therewith.
Even if the purported admission made by the respondent, a ·.-4
subsequent pleading was to be taken into consideration, still then
the respondent was required to be cross-examined. Another round
oflitigation would have started. [Para 19] [109-D-E]
H
SHRI MUND RI LAL v. SMT. SUSHILA RANI 101

1.2. The revisional jurisdiction of the High Court under Section A
_). 25 of the Provincial Small Causes Courts Act is wider than Section
115 CPC. But the fact that a revision is provided for by the statute,
and not an appeal, itself is suggestive of the fact that ordinarily
revisional jurisdiction can be exercised only when a question oflaw
arises. However, that does not mean that under no circumstances B
finding of fact cannot be interfered therewith. A pure finding of fact
based on appreciation of evidence although may not be interfered
with but if such finding has been arrived at upon taking into
consideration irrelevant factors or therefor relevant fact has been
ignored, the revisional court will have the requisite jurisdiction to c
•
interfere with a finding of fact. Applicability of the provisions of
Section 2(2) of the Act may in that sense involve determination of
mixed question oflaw and fact. [Paras 20 and 21] [109-E-H]
Suresh Kumar Jain v. Shanti Swarup Jain and Ors., [1997] 9 SCC
298, Sudha Rani Garg (Smt.) v.Jagdish Kumar (Dead) and Ors., [2004.) D
8 SCC 329 and Sanjay Kumar Gulati v. NP. Singh and Anr., [2005)
12 sec 396, relied on
'"
2.1. What would amount to a new construction, being essentially
a question of fact, would depend upon the nature and extent of the
additions and alterations made in the whole building. It does not E
confine to a floor where the tenanted premises is situate. Where
several tenants are inducted in different parts of the same building,
it would be difficult to hold that one part of the building shall be
., governed by the Act and the other part would not be. Clause ( c) of
f the Explanation I makes the legal position absolutely clear. F
[Para 18] [109-A-C]
2.2. The allegation contained in the plaint that the constructions
were made in the year 1975 and tax was assessed with effect from
1.4.1978, being the issue involved in the suit, have been gone into
G
by the trial court at great details. A finding of fact has been arrived
-,- at with reference to clause (c) of explanation 1 of Section 2(2) of the
Act. Such a finding was based on the appreciation of evidence.
[Para26) {112-E-Gl
2.3. The provisions of Section 2(2) contain a deeming provision. H
102 SUPREME COURT REPORTS [2007] 10 S.C.R.

A By reason thereof, a legal fiction has been created. It therefore, must
be given its full effect. [Para 28) ~-,.

S.MS.Pharmaceuticals Ltd v. Neeta Bhalla and Anr., [2007) 4
SCC 70, Ramesh Chandra Sharma v. Punjab National Bank and Anr.,
(2007) 8 SCALE 240, referred to.
B
2.4. It is true that respondent could have made more elaborate
pleadings; but no grievance was made in regard thereto. The parties
knew the stand taken by the other. The issue involved in the suit
was a simple one namely whether the construction was an old one
C or a new one. Even in the rexision application, no such question was
raised. Such a ground was taken before this Court for the first time.
There is also nothing to show that the appellant has been prejudiced
in any manner whatsoever. It is a well settled principle oflaw that
when parties have gone into trial knowing ful'y well the issue
D involved, inadequate pleading, if any, may not be sufficient to set
aside the judgment. [Para 29] [113-C-E]
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4348 of
2007. !. -

From the Judgment and Order dated 19.10.2006 of the High Court
E of Judicature at Allahabad in C.R. No. 850of1987.
Raju Ramachandran, Mohit Choudhary and Dr. Kailash Chand for
the Appellant.
Jaideep Gupta, Pramod Dayal and Nikunj Dayal for the ·.,-
F Respondents.
The Judgment of the Court was delivered by
S.B. SINHA, J. 1. Leave granted.
2. Relationship between the parties is landlord and tenant. Appellant
G herein was inducted as a tenant in a shop premises which is a part of
House No. 177-E, Abu Lane, Meerut Cantt., Meerut (U.P.). Respondent ~
purchased the said house in the year 1969. The shop, in question, was
newly constructed.
3. Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and
H
SHRIMUNDRILALv. SMT. SUSHILARANI[SINHA,J.] 103

Eviction) Act, 1972 (hereinafter called and referred to as the "said Act") A
·): contains an exemption provision in Section 2(2) in regard to applicability
thereof which reads as under:-
"Sec. 2(2) Except as provided in sub-section (5) of Section 12,
sub-seciion (1-A) of Section 21, sub-section (2) of Section 24,
Sections 24-A, 24-B, 24-C or sub-section (3) of Section 29, B
nothing in this Act shall apply to a building during a period of ten
years from the date on which its construction is completed.''
Explanation I appended to the said provision defines as to what is
meant by the term "construction" in the following terms:- c
"Explanation 1.-For the purposes ofthis section, -
(a) the construction of a building shall be deemed to have been
completed on the date on which the completion thereof is
reported to or otherwise recorded by the local authority having D
jurisdiction, and in the case of a building subject to assessment,
the date on which the first assessment thereof comes into
effect, and where the said dates are different, the earliest of
the said dates, and in the absence of any such report, record
or assessment, the date on which it is actually occupied (not E
including occupation merely for the purposes of supervising
the construction or guarding the building under construction)
for the first time :
Provided that there may be different dates of completion of
r construction in respect of different parts of a building which are F
either designed as separate units or are occupied separately by
the landlord and one or more tenants or by different tenants ;
(a) "construction" includes any new construction in place of an
existing building which has been wholly or substantially
demolished. G
-,.:
(b) where such substantial addition is made to an existing building
that the existing building becomes only a minor part thereof
the whole of the building including the existing building shall
be deemed to be constructed on the date of completion of H
104 SUPREME COURT REPORTS [2007] 10 S.C.R.

A the said addition."
4. A notice under Section 106 of the Transfer of Property Act was
served on the appellant asking him to quit and vacate the said tenanted
premises. As he did not comply with the said demand, respondent filed a
suit for eviction of the appellant on the premise that Section 2(2) of the
B Act was applicable stating:-
"3. That the said accommodation was constructed in the year 1975,
but after construction the building was first assessed on new
constn1ctions since 1-4-1978 only and the U.P. Act 13 of 1972 'i
c is made applicable to Meerut Cantonment area, is not applicable
to the said construction and according to law it is a new
construction.''
5. Appellant traversed the said allegation in his written statement in
the following terms :
D
"That contents of para 3 of the plaint are denied. The allegation
that the shop in dispute was constructed in the year 1975 is false.
Similarly it is denied that the said shop was for the first time
assessed to house tax on 1-4-78. It is further de11ied.thatU.P. Act
E XIII of 1972 is not applicable to the shop in dispute or that the
said shop is a new construction within the meaning ofU.P. Act
XIII of 1972 as applicable to the Cantonment.''
6. No objection was raised that the said pleading was insufficient
for attracting the exemption provisions contained in the said Act. Parties
F went to trial, knowing the issues arising in the suit.
One of the issues which was framed in the said suit was as under:-
"[1] Whether the property in question is a newly constructed and
the U.P. Act No. 13 of 1972 is not applicable? If yes then effect?"
G
7. The learned Trial Judge having regard to the evidences adduced
by the parties opined that· requirements of both clauses (b) and (c)
contained in the explanation I appended to Section 2(2) were satisfied·
stating:-
H "In this respect clause 1(c) of explanation of section 2 is important,
,;

41-
SHRI MUNDRILAL v. SMT. SUSHILARANI [SINHA,J.] 105

';} in which it has been stated that where such substantial addition is A
made to an existing building that the existing building become only
a minor part thereof the whole of the building including the existing
building shall be deemed to be constructed on the date of
completion of the said addition. In the light of the clarification,
which is fully applicable in the circumstances of the present suit, B
that earlier the house, which was being used for residential purpose
and was on rent of Rs. 100/- per annum with the two tenants has
·r- been let out on Rs. 1600/- per month to a tenant for commercial
use and substantial constructions have been made in this property,
which were detailed by P.W. 1, there is no question of disbelieving c
the version of P.W. 1-that they demolished the earlier existing store
room, bath room and passage and constructed pillars and beams,
by removing other passage and store they constructed an attached
bathroom and latrine, a new room was constructed by removing
the earlier existing store and kitchen and pillars and beams were D
constructed by removing 5 arches in earlier existing veranda, pillars
and beams were constructed and a window was made by
constructing a linter of 26 by 35 feet in between earlier existing
room and verandah. The defendant has not rebutted this statement
of P.W. I by any material evidence nor he has denied specifically
E
this statement of P.W. 1 in his statement that substantial alterations
were made as such the earlier building has become a small part of
present building as such the building is deemed to be a new
""'i construction and the enhanced house tax was imposed first time
·- on 1-7-1978 on this property, therefore the property in question
F
will be deemed as newly constructed on 1-4-1978.
8. A Revision Application was filed thereagainst by the appellant in
terms of Section 25 of the Provincial Small Cause Courts Act. It does
not appear from the Order passed by the High Court in exercise of its
revisional jurisdiction that any contention that the pleadings in regard to G
~
the jurisdictional fact namely applicability of the provisions of the said Act
was raised. The High Court, however, without going into the contentions
raised before it, relying on or on the basis of the decision of this Court in
Vineet Kumar v. Mangal Sain Wadhera, [1984] 3 SCC 352 opined
that as the period of ten years have elapsed during the pendency of the H
106 SUPREME COURT REPORTS (2007] 10 S.C.R.

A suit and the revision application, the Act would be applicable.
9. Respondent approached this Court thereagainst. By a judgment
and order dated 28.2.2005, the said decision was set aside, on the
premise that Vineet Kumar (supra) had been overruled by a larger Bench
-0f this Court in Suresh Chand v. Ghulam Chisti, AIR (1990) SC 897.
B The matter was remitted to the High Court directing:-.
" .......In the facts and circumstances of the case, we remit the matter
to the High Court for disposal in accordance with law. If the High ~·
Court finds that there are other questions which arise for '
c consideration in the Civil Revision before the High Court, it will
hear the parties and pass appropriate orders. If the High Court
finds that the matter requires to be remitted to the Trial Court for
any reason, it may do so. We express no opinion in the matter."
10. The impugned judgment had been passed by the High Court on
D hearing the parties afresh.
11. Concededly, the appellant filed an application for adduction of
additional evidence in terms of Order XU Rule 27 of the Code of Civil
Procedure. The High Court refused to exercise its discretionary jurisdiction
E in the matter stating that the requirements of the said provision had not
been fulfilled.
12. In regard to the submission that the said Act was applicable since
the High Court was of the view that the findings of the learned Trial Judge
cannot be said to be wholly unsustainable attracting the revisional
F jurisdiction of the Court holding :
"Besides, I cannot loose sight of the fact that it is a findings of fact
arrived at by the Court below which cannot be interfered in
exercise of revisionist jurisdiction. I am conscious of the fact that
G
this is a revision under Section 25 of the Provisional Small Causes
Court Act but this alone would not entitle this Court to reassess
the evidence and upset a finding of fact. It is also to be noted that
while recording the findings on the question as to whether the
building was new building or an old building, it was taken into
consideration that previously the building was assessed at the rental
H
-1-
SHRIMUNDRILALv. SMT.SUSHILARANI[SINHA,J.] 107

J value of Rs. 330/- per annum, subsequently after the new A
construction, the value was enhanced to Rs. 22,800/- w.e.f.
1.4.1978. This was done taking into substantial additions made to
the existing building. This was earlier let out to one Satish Chander
Jain for residential purposes and after he vacated, major additions
and alterations have been made and it was converted into B
commercial building and was let out to the tenant for commercial
purpose. The trial Court took into consideration the oral evidence
.,~
as well as documentary evidence that was placed before the Judge
Small Causes Court. I do not find any illegality what so ever in
the impugned judgment which calls for interference. This Court c
interfere under section 25 Judge Small Causes Court only, in the
event learned counsel could establish that the findings of the trial
Court was perverse and not sustainable in law. Admittedly the
building in question is subject to assessment of municipal taxes and
date of construction will be assessed on the basis of assessment D
as well as other factor and evidence to be taken into consideration,
which was admittedly been done by the trial Court and this Court
at the time when this civil revision was decided on 24.8.2004,
since, the findings of the trial Court regarding the date of
construction of the building was confirmed in civil revision and
E
upheld by the Apex Court, I am of the view that it cannot be
reopened in this second innings. The Apex Court has only remitted
the case to consider the other points which were not canvassed
when the revision was decided previously. In the fact and
.-
'(

circumstances, what has been discussed above, I do not find it a
fit case for interference. The judgment dated 20th October, 1987 F
is absolutely a legal. The decree for eviction and arrears of rent
are confirmed. The civil revision is accordingly dismissed.''

13. Mr. Raju Ramachandran, learned senior counsel appearing on
...,., behalf of the appellant would submit that the High Court committed a G
serious error insofar as it failed to take into consideration that ¢e learned
Judge, Small Causes Court had committed an error oflaw in recording a
finding of fact on issue No. I upon taking into consideration irrelevant facts
and ignoring material evidence. Had such facts which had been brought
on record, Mr. Ramachandran would submit, been taken into H
108 SUPREME COURT REPORTS (2007] 10 S.C.R.

A consideration, it could have been shown that most of the constructions
were raised on the first floor and not on the ground floor. It was urged
that the finding recorded by the learned Trial Judge that the existing building
had undergone substantial addition is vitiated in law, as the same was
arrived at without any basis, particularly when in tenns of clause (c) of
B Explanation I appended to Section 2(2) of the Act, it was necessary to
record a finding as regards total existing construction vis-a-vis total new
addition which would lead to the conclusion that new constructions within
the meaning thereof have been made.
14. The High Court, it was contended, having regard to the fact that
C an admission had been made in a rejoinder filed by the respondent in a
pleading made in another litigation in the year 1996 ought to have allowed
the application for adduction of additional evidence.
15. Mr. Jaideep Gupta, learned senior counsel appearing on behalf
D of the respondent, on the other hand, would submit that the explanation
raises a legal fiction and in that view of the matter, the judgment of the
High Court is unassailable. The learned counsel contended that in the
plaint, evidence need not be pleaded and in any event as the parties had
understood the merit and purport of the issue between them, the
E respondent cannot be said to have been taken by surprise, it was
contended that even no ground had been taken before the High Court.
16. By reason of sub-section (2) of Section 2 of the Act, an
exemption has been created from operation of the Act. What would
constitute "Construction" is explained by Explanation I appended thereto.
F For the said purpose, a legal fiction has been created. The criteria laid
down therefor, inter alia, is that the completion of a building should be
reported to or otherwise recorded by the local authority having jurisdiction,
and in a case of building subject to assessment, the date on which the
first assessment thereof comes into effect. Clauses (b) and (c) of
G Explanation I provides for an expansive definition so as not only to include
a construction ui)on demolition of the existing structure but also substantial
addition to an) existing building to the effect that the existing building
becomes only a minor part thereof.

H
SHRIMUNDRILAL v. SMT. SUSHILARANI [SINHA,J.] 109

..,l 17. Indisputably, new assessment was made in the year 1978 . A
Respondent had brought on record, the vast difference in the amount of
tax payable before and after reconstruction.
18. What would amount to a new construction, being essentially a
question of fact, would depend upon the nature and extent of the additions
and alterations made in the whole building. It does not confine to a floor B
where the tenanted premises is situate. Where several tenants are inducted
in different parts of the same building, it would be difficult, in the event,
y--
the submission of Mr. Raju Ramachandran is accepted to hold that one
part of the building shall be governed by the Act and the other part would
not be. Clause (c) of the Explanation I in our considered op~·fifQn makes c
the legal position absolutely clear.
19. Appellant's application for adoudion of additional evidence has
been rejected on valid grounds by the High Court. It, for cogent and
sufficient reasons, refused to exercise its discretionary jurisdiction. We do
D
not see any reason to interfere therewith. Even ifthe purported admission
--4 -
made by the respondent, a subsequent pleading was to be taken into
consideration, still then the respondent was required to be cross-examined.
Another round of litigation would have started. We do not think that the
appellant has made out a case for grant of such indulgence.
E
20. There cannot be any doubt whatsoever that the revisional
juri~diction of the High Court under Section 25 of the Provincial Small
Causes Courts Act is wider than Section 115 of the Code of Civil
i
~ - Procedure. But the fact that a revision is provided for by the statute, and
not an appeal, itself is suggestive of the fact that ordinarily revisional F
jurisdiction can- be exercised only when a question of law arises.
21. We, however, do not mean to say that under no circumstances
finding of fact cannot be interfered therewith. A pure finding of fact based
on appreciation of evidence although may not be interfered with but if
such finding has been arrived at upon taking into consideration irrelevant G
factors or ther~ relevant fact has been ignored, the revisional court will
have the requisite jurisdiction to interfere with a finding of fact Applicability
of the provisions of Section 2(2) of the Act may in that sense involve
determination of mixed question of law and fact.
H
110 SUPREME COURT REPORTS [2007] 10 S.C.R.

A 22. Strong reliance has been placed by Mr. Raju Ramachandran on ->.r
a decision of this Court in Suresh Kumar Jain v. Shanti Swarup Jain
And Ors., [1997] 9 SCC 298 wherein having regard to the facts involved
therein and particularly the avennents made in regard to completion of
entire construction and assessment notice issued by the municipality, the
B question which arose for consideration was in regard to the date for
completion of the building. It was in the aforementioned premise this Court
opined:-
"32. The contention of the respondent landlord that the tenant ~
'
appellant having wrongly contended that he had been continuing
c in the old premises even prior to 1973, is not pennitted to rely on
the subsequent construction of the tenanted premises, cannot be
accepted for the simple reason that the landlord having instituted
the eviction suit in the Small Causes Court, instead of filing such
eviction suit before the appropriate forum under the Rent Act, on
D the plea that the building in which the tenant was inducted in 1973
was a newly constructed building for which he was entitled to _L
exemption under Section 2(2) of the Rent Act, was under an
obligation to strictly prove that such building, in fact, had been
constructed within ten years from the date of the institution of the ·
E suit."

23. This Court exercised its discretionary jurisdiction under Article
136 of the Constitution of India in the fact situation obtaining therein
stating:- 'y

~-!f:

F "33 .... The deemed date of construction as found earlier by the
courts below was not approved by this Court in allowing the
appeal arising out of the earlier special leave petition preferred by
the tenant appellant and the High Court was specifically directed
to decide the deemed date of construction under Section 2(2) of
G the Rent Act in the light of the observation made by this Court. In
the facts of the case, such detennination of deemed date of
,_
construction by appreciating and interpreting municipal records and
assessment proceedings was not detennination of a fact simpliciter
but such detennination involved a detennination of mixed question
H oflaw and fact..."
'4·
SHRIMUNDRILAL v. SMT. SUSHILARANI [SINHA,J.] 111

I- 24. It, however, appears that another Bench of this Court in Sudha A
Rani Garg (Smt.) v. Jagdish Kumar (Dead) And Ors., [2004] 8 SCC
329 held as under:-
"12. "When a statute gives a definition and then adds that certain
things shall be 'deemed' to be covered by the definition, it matters
B
not whether without that addition the definition would have covered
them or not." (Per Lord President Cooper in Ferguson v.
A1cMillan)
)>-
13. Whether the word ''deemed' ' when used in a statute
established a conclusive or a rebuttable presumption depended c
upon the context. (See St. Leon Village Consolidated School
Distt. v. Ronceray.)

14. "I..... regard its primaiy function as to bring in something which
would otherwise be excluded." (Per Viscount Simonds in Barclays D
Bankv. /RC.)

15. "Deems" means "is of opinion" or "considers" or "decides:'
''and there is no implication of steps to be taken before the opinion
is fom1ed or the decision is taken". [See R. v. Brixton Prison
(Governor), exp Sob/en, All ER p. 669 C.] (See Ali MK v. E
State of Kera/a.)

16. It is not in dispute that the first assessment came into effect
;'
~ - from 1-4-1983 and in the relevant colunm relating to enhancement
or reduction of the tax "Q September 1982" is recorded. F
According to learned counsel for the appellant it means that the
completion of the shop has been recorded by the local authority
on 1-7-1982. The plea is clearly untenable. A quarter is a period
of time, covering in the instant case from 1-7-1982 to 30-9-1982.
It only shows that when assessment was made, construction was G
...,.. completed earlier sometime in the third quarter of September 1982.
The quarter started from 1-7-1982. It cannot mean that the
construction of the building was completed by the date. The date
of completion of construction can be any date falling between two
H
·f-
112 SUPREME COURT REPORTS [2007] 10 S.C.R.

A terminals i.e. 1-7-1982 to 30-9-1982. The hypothetical ~
presumption that the first date of the quarter being 1-7-1982, it
shall be deemed to be the date of completion of construction, has
no basis. In case the first three dates are available then the·
modality for working out the date of completion is provided in
B the Explanation. As the records go to show, the first assessment
came into effect on 1-4-1983. That is the third date provided in
the Explanation."

25. We may, however, notice that another Division Bench of this
Court in Sanjay Kumar Gulati v. N.P. Singh and Anr., [2005] 12 SCC
c
396, by a short Order opined as under:-
"3. We see no ground to interfere with the order of eviction passed
by the trial court as affirmed by the High Court in revision. The
trial court after referring to the evidence has given a clear finding
D that the building was constructed only in or after the year 1988.
Therefore, by the time the suit was filed, the building was less than .l
ten years old Hence, it was rightly held that the landlord can invoke
the benefit of Explanation 1 to Section 2(2) of the Uttar Pradesh
Urban Buildings (Regulation of Letting, Rent and Eviction) Act,
E 1972."
26. Each case, therefore, depends on its own facts. In this case,
we are not concerned with different dates of construction. The allegation
..,.
contained in the plaint that the constru".tions were made in the year 1975
-~

F and tax was assessed with effect from 1.4.1978, being the issue involved
in the suit, have been gone into by the trial court at great details. We
have noticed hereinbefore that a finding of fact has been arrived at with
reference to clause (c) of explanation 1 of Section 2(2) of the Act. Such
a finding was based on the appreciation of evidence. Before the High
G Court, it had not been pointed out, as to what relevant facts have not
been considered and what irrelevant fact had been considered in arriving ;;,,,,

at the said decision.

27. The High Court may not be entirely correct in its approach so
far as construction of Section 25 of the Provincial Small Cause Courts
H
SHRIMUNDRILALv. SMT.SUSHILARANI[SINHA,J.] 113

Act is concerned, but as noticed hereinbefore, a finding of fact has been A
~J- arrived at keeping in view the pleadings of the parties and the issue framed
on the basis thereof, viz., as to whether the construction was an old
construction or a new one. The High Court in the revision application also ,
noticed that the finding of fact arrived at by the trial court had been
approved in the earlier round oflitigation before the High Court. B
28. The provisions of Section 2(2) contain a deeming provision. By
reason thereof, a legal fiction has been created. It therefore, must be given
its full effect. [See S.MS.Pharmaceuticals Ltd. v. Neeta Bhalla and
Anr., [2007] 4 SCC 70 and Ramesh Chandra Sharma v. Punjab
National Bank and Anr., (2007) 8 SCALE 240, Para 13]. C
29. It is true that respondent could have made more elaborate
pleadings; but we have notice.cl hereinbefore that no grievance was made
in regard thereto. The parties knew the stand taken by the other. The issue
involved in the suit was a simple one namely whether the construction was D
an old one or a new one. Even in the revision application, no such question
was raised as it appears from the impugned judgment of the High Court.
Such a ground was taken before us for the first time. There is also nothing
to show that the appellant has been prejudice.cl in any manner whatsoever.
It is a well settled principle oflaw that when parties have gone into trial E
knowing fully well the issue involved, inadequate pleading, if any, may not 1

be sufficient to set aside the judgment.
30. For the reasons aforementioned, we do not find any merit in
this appeal which is dismissed accordingly with costs. Counsel's fee
'}' - assessed at Rs.10,000/- (Rupees ten thousand only). F
K.K.T. Appeal dismissed.