Whether exemption from rent law is in respect of premises or with respect to parties?

From the aforesaid it is graphically clear that an Insurance Company is not protected under the 1999 Act. Once it is held that Defendant No. 1, the New India Assurance Company, the original tenant, is not protected, the question would be whether a subtenant can be protected under the Act. In the case of Bhatia Co-operative Housing Society Ltd. (supra), it has been clearly laid down that Section 4(1) of the 1947 Act applies to premises and not to parties or their relationship. Section 3 uses the term 'premises'. The provision commences with the non-obstante clause that the Act does not apply to any premises belonging to the Government or a local authority. Sub-Section 3(1)(b) makes it clear that the Act does not apply to any bank, public sector undertaking or certain other categories of tenants. The Insurance Company is covered under Section 3(1)(b). Thus, as a logical corollary, the Act does not apply to the premises held by the Insurance Company who is a tenant.

23. The learned Single Judge has allowed protection to the Government Department on the foundation that it has become a tenant. We are disposed to think that the analysis is fundamentally erroneous. When the Act does not cover the tenant, namely, the Insurance Company as basically the exemption applies only to premises and not to any relationship, the subtenant who becomes a deemed tenant cannot enjoy a better protection or privilege by ostracizing the concept of premises which is the spine of the provision.
IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 3356-3357/2012 (Arising out of SLP (C) Nos. 3273-327 of 2011)

Decided On: 03.04.2012

 Kesri Commissariat and Ors. Vs. Ministry of Food and Civil Supplies, Govt. of Maharashtra, Mumbai and Anr.

Hon'ble Judges/Coram:

Dalveer Bhandari and Dipak Misra, JJ.
Citation: AIR 2012 SC 1271: 2012(5) MHLJ 212(SC)

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Whether bombay rent Act is applicable to land belonging to government or local authority?

In Kanji Manji v. The Trustees of the Port of Bombay [1962] Su. 3 S.C.R. 461 this Court took the view that if the Government or a local authority wants to evict a person from land belonging to the Government or a local authority, the provisions of the Bombay Rent Act do not come in the way. For the same reason, the suit for ejectment does not have to be filed in the Court of Small Causes as required by the Rent Control Act but in the City Civil Court. If the original lessees took on lease not only the land but also the building, it is not open to their assignees to claim that the ownership of the Government extended only to the land and not to the buildings. 

We can only observe that if the intention of the Legislature is that the protection should be given to the sub-lessee against the lessee in a building taken on lease by the lessee from the Government or a local authority, it is for the Legislature concerned to make appropriate amendments in the Bombay Rent Act and it is not open for us to rewrite the provisions of Sub-section (4)(a) of Section 4 of the Bombay Rent Act on the ground of any such intention as suggested by Dr. Chitale.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 4248 of 1986

Decided On: 04.05.1988

Nagji Vallabhji and Company Vs. Meghji Vijpar and Company and Anr.

Hon'ble Judges/Coram:

R.S. Pathak, C.J. and M.H. Kania, J.

Citations: 1988 AIR 1313, 1988 SCR (3) 906

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