The Central government has moved the Court against a Delhi High Court verdict of January 2020 by which the High Court had affirmed the decision of the Additional Rent Control Tribunal directing the Central government to make the payment of unpaid arrears of rent owed to the respondent, Sobha Singh and Sons.
The property in question are residential flats in North and South of Sujan Singh Park which were rented out to the government at concessional rates as far back as in 1944.
The government had paid rents up until 1989 but thereafter due to many breaches by the respondent, a slew of litigation ensued.
In 1998, the respondent had filed an eviction petition before the Additional Rent Controller who ruled in favour of the respondent. The appeals right up to the Delhi High Court were also decided against the government leading to the present appeal before the apex court.
The government submitted before the top court that as per Section 3 of the Grants Act, any government property demised in favour of a person in the form of a ‘Grant’ as per provisions of the Grants Act, will be excluded from the scope of application of the provisions of any other law/statute.
“Therefore, any legislation which is contrary to the notions in the Government Grant, will not apply to a government property granted in favour of a specific person. It is therefore submitted that the provisions of the Grant Act will have an overriding effect over any other law, in force, which is contrary thereto,” the plea said.
Hence, provisions Delhi Rent Control Act and Transfer of Property Act will not apply in the instant case, it was submitted.
“The Tribunal vide order dated 01.09.2007 erroneously held that the contested property was covered under the provisions of the Delhi Rent Control Act (DRCA). Moreover, the Hon’ble High Court affirmed the said finding vide order dated January 8, 2020. It is most reverentially submitted that the Grants Act is a special statute and so, it would prevail over other statutes and so, the provisions contained in the Grants Act will have an overriding effect on the provisions contained in the DRCA. Furthermore, it is submitted that the Transfer of Property Act, 1882 has expressly been excluded from the arena of Government Grants,” the petition stated.
Source: Barandbench
