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Supreme Court of India

SHRI SURENDRA KUMAR JAINversusSHRI SHANTI SWAROOP JAIN AND ORS.

Citation
1995 INSC 409
Decided
24 July 1995
Disposal
Disposed off

Holding

The deemed date of construction is the earliest of the dates specified in Explanation (a); thus the notice for assessment dated 15‑11‑1977 is the deemed construction date.

Summary

The appeal concerned the determination of the earliest deemed date of construction under Explanation (a) of Section 2(2) of the U.P. Urban Building (Regulation of Letting Rent and Eviction) Act, 1972. The Supreme Court held that the deemed construction date is the earliest of (i) the date the local authority records the completion, (ii) the date the first assessment comes into effect, and (iii) the date of actual occupation. In the present case, the Municipal Authority gave notice for assessment on 15‑11‑1977, which is earlier than the assessment made in 1981, and therefore that notice date is the deemed construction date. The High Court had erred by relying only on the 1981 assessment date. Consequently, the Supreme Court set aside the High Court’s decision, stayed eviction, and remitted the matter back to the High Court for fresh determination within four months.

Issues considered

  • Which date constitutes the earliest deemed date of construction under Explanation (a) of Section 2(2) of the U.P. Urban Building (Regulation of Letting Rent and Eviction) Act, 1972?
  • Can the date of notice for assessment be treated as the deemed construction date when it precedes the assessment date?

Legislation cited

Subjects

deemed construction dateU.P. Urban Building Actassessment noticeevictionstatutory interpretationstay of eviction

Judgment

    A                      SHRI SURENDRA KUMAR JAIN
                                              v
                      SHRI SHANTI SWAROOP JAIN AND ORS.

                                      JULY 24, 1995

    B                   [G.N. RAY AND S.B. MAJMUDAR, JJ.]

              U.P. Urban Building (Regulation of Letting Rent and Eviction) Act,
        1972: Section 2(2)-Explanation l(a)-E,arliest dated of deemed constrnc-
        tion-Detennination of
    c
             In this appeal the question that arose for consideration was as to
        which would be the earliest date of deemed construction in terms of
        Explanation l(e) of Sub-section (2) of 5.2 of the U.P. Urban Building
        (Regulation of Letting Rent and Eviction) Act, 1972.

D             Disposing of the appeal, this Court

               HELD : 1. In terms of Explanation l(a) S.2(2) of the U.P. Urban
        Building (Regulation of Letting Rent and Eviction) Act, 1972, the construc-
        tion is deemed to have been completed on the date on which the completion
E       thereof is reported to or otherwise recorded by the local authority having
        jurisdiction if· such reporting or recording happens to be on the earliest
        point of time vis-a-vis various dates referred to therein. Since that date is
        the earliest of the dates as referred to in the Explanation l(a), the date of
        giving notice for assessment becomes relevant for the purpose of consider-
        ing deemed date of construction. It does not appear that such considera-
    F   tion has been made by the High Court in deciding the case. The High Court
        has proceeded on the footing only on the basis of the assessment effected
•       in 1981. (305-F, H, 306-A-B]

              Om Prakash Gupta Etc. Etc. v. DIG Vijendrapal Gupta Etc. Etc.,
    G (19821 2 sec 61, distinguished.
              2. The impugned decision of the High Court is set aside and remitted
        back to the High Court for disposal on merits in the light of the present
        discussion, preferably within a period of four months. The High Court will
        de~ide as to which is the earliest date of deemed construction in terms of
    H   Explanation l(a) sub-section (2) of Section 2 of the said Act for the
                                            304
                           S.K. JAIN v. S.S. JAIN                         305

purpose of deciding the dispute involved in the case. Until the matter is        A
disposed of by the High Court, there will be stay of eviction from the
disputed premises. (306-D-E]

        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6546 of
1995.
                                                                                 B
     From the Judgment and Order dated 23.1.95 of the Allahabad High
Court in C.M.W.P. No. 1558 of 1995.

        Dr. AM Singhvi and Rakesh K. Sharma for the Appellants.

      Kapil Sibbal, K.B. Rohtagi, Ms. Aparna Rohtagi, Praveen Jain and           C
P.K. Jain, for the Respondents.

        The following Order of the Court was delivered : '

        Leave granted.
                                                                                 D
      Resi'ondent No. 1 has already entered appearance. Notice of the
appeal need not be served on respondent Nos. 2 and 3 who are formal
parties and such notice on them is dispensed with.

       Heard learned counsel for the parties. It appears to us that for the
                                                                                 E
purpose of deciding the date of construction it is necessary to refer to
Explanation 1 (a) of Section 2(2) of the U.P. Urban Building (Regulation
of Letting Rent and Eviction) Act 1972. In the Explanation to the said
Section it has been indicated that the construction of a building shall be
deemed to have been completed on the date on which completion thereof
is reported to or otherwise recorded by local authority having jurisdiction      F
and in the case of building subject to a'ssessment, 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
merely for the purpose of supervising the construction or granting the           G
building under constitution) for the first time.

       It, therefore, appears that in terms of Explanation 1 (a) the construc-
tion is deemed to have been completed on the date on which the comple-
tion thereof is reported to or otherwise recorded by the local authority
having jurisdiction if such reporting or recording happens to be on the H
    306                   SUPREME COURT REPORTS [1995) SUPP. 2 S.C.R.

A earliest point of time vis-a-vis various dates referred to hereinbefore. It is
  contended that in the instant case, the Municipal Authority having given
  notice for assessment on 15.11.77, such date should be held to be the date
  when the Municipal Authority had already taken note of the construction
  of the building. Since that date is the earliest of the dates as referred to in
  the Explanation l(a), that date becomes relevant for the purpose of con-
B sidering deemed date of construction. It does not appear that such con-
  sideration has been made by the High Court in deciding the case. The High
  Court has proceeded on the footing only on the basis of the assessment
  effected in 1981. The learned counsel for the respondent has relied on a
  decision of this Court in Om Prakash Gupta Etc. Etc. v. DIG Vijenerpal
c Gupta Etc. Etc., [1982) 2 SCC 61. But it appears to us that in that case,
  was no question of Municipal Authority having taken note of construction
  on an earlier date for the purpose of giving notice for assessment. Hence,
  that decision is not applicable for the purpose of deciding the issue raised
  in the case. We, therefore, set aside the impugned decision of the High
D Court and remit the case back to the High Court for disposal on merits in
  the light of above discussion preferably within a period of four months from
  the date of receipt of the order of this Court. The High Court will decide
  as to which is the earliest date of deemed construction in terms of date
  Explanation 1 (a) of sub-section 2 of section 2 of the said Act for the
  purpose of deciding the dispute involved in the case, Until the matter is
E disposed of by the High Court, there will be stay of eviction from the
  disputed premises.

            The appeal is accordingly disposed or without any order as to costs.

     G.N.                                                   Appeal disposed of.


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