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Thursday, December 12, 2019

whether providing for domicile/residence-based reservation, particularly in admission to PG Medical Courses, is constitutionally permissible as also its corollaries, including the mode and modalities of its implementation (if permissible), more particularly in relation to the State/UT having only one Medical College, need to be examined by a Larger Bench of this Court for authoritative pronouncement. Accordingly we would propose the following questions to be examined by a Larger Bench of this Court : 1. As to whether providing for domicile/residence-based reservation in admission to “PG Medical Courses” within the State Quota is constitutionally invalid and is impermissible? 2. (a) If answer to the first question is in the negative and if domicile/residence-based reservation in admission to “PG Medical Courses” is permissible, what should be the extent and manner of providing such domicile/residence-based reservation for admission to “PG Medical Courses” within the State Quota seats? (b) Again, if domicile/residence-based reservation in admission to “PG Medical Courses” is permissible, considering that all the admissions are to be based on the merit and rank obtained in NEET, what should be the modality of providing such domicile/residencebased reservation in relation to the State/UT having only one Medical College? 3. If answer to the first question is in the affirmative and if domicile/residence-based reservation in admission to “PG Medical Courses” is impermissible, as to how the State Quota seats, other than the permissible institutional preference seats, are to be filled up? The matters be placed before Hon’ble the Chief Justice of India for constitution of appropriate Larger Bench. The interim orders passed in these matters shall continue until further orders.

 whether providing for domicile/residence-based reservation, particularly in admission to PG Medical Courses, is constitutionally permissible as also its corollaries, including the mode and modalities of its implementation (if permissible), more particularly in relation to the State/UT having only one Medical College, need to be examined by a Larger Bench of this Court for authoritative pronouncement.

Accordingly we would propose the following questions to be examined by a Larger Bench of this Court :
1. As to whether providing for domicile/residence-based reservation in admission to “PG Medical Courses” within the State Quota is constitutionally invalid and is impermissible?
2. (a) If answer to the first question is in the negative and if domicile/residence-based reservation in admission to “PG Medical Courses” is permissible, what should be the extent and manner of
providing such domicile/residence-based reservation for admission to “PG Medical Courses” within the State Quota seats?
(b) Again, if domicile/residence-based reservation in admission to “PG Medical Courses” is permissible, considering that all the admissions are to be based on the merit and rank obtained in NEET, what should be the modality of providing such domicile/residencebased reservation in relation to the State/UT having only one Medical College?
3. If answer to the first question is in the affirmative and if domicile/residence-based reservation in admission to “PG Medical Courses” is impermissible, as to how the State Quota seats, other than
the permissible institutional preference seats, are to be filled up?
The matters be placed before Hon’ble the Chief Justice of India for constitution of appropriate Larger Bench. The interim orders passed in these matters shall continue until further orders.


REPORTABLE
 IN THE SUPREME COURT OF INDIA
 CIVIL APPELLATE JURISDICTION
 CIVIL APPEAL NO. 9289 OF 2019
 (Arising out of SLP (Civil) No. 12918 of 2019)
DR. TANVI BEHL ….APPELLANT(S)
VS
SHREY GOEL & ORS. ….RESPONDENT(S)
WITH
(Civil Appeal No.9290 of 2019 @ SLP(C) No. 11441 of 2019, Civil Appeal
No.9291 of 2019 @ SLP(C) No. 11477 of 2019 and Civil Appeal Nos.9292-
9293 of 2019 @ SLP(C) Nos. 12919-20 of 2019
ORDER
Dinesh Maheshwari, J.
Preliminary
1. Leave granted.
2. These four appeals by special leave, directed against the common
judgment and order dated 23.04.2019, as passed by the High Court of Punjab
and Haryana at Chandigarh in CWP No. 8234 of 2019 (O&M) and CWP No.
9565 of 2019 (O&M) and involving essentially the same questions relating to
the legality and validity of domicile/residence-based reservation for admission
1
to the Post Graduate Medical Courses (MD/MS Courses 2019)1
 in
Government Medical College and Hospital, Chandigarh2
, have been
considered together and shall be governed by this common order.3
3. By the impugned judgment and order dated 23.04.2019, the High Court
of Punjab and Haryana at Chandigarh has held invalid the provisions made by
the said Medical College in its prospectus, so far relating to the
domicile/residence-based reservation as provided in UT4
 Chandigarh Pool;
and has struck down the same while directing that all the admissions made on
the basis of such invalid reservation in the said Medical College be cancelled
and fresh admission process for admission to the PG Medical Courses for the
academic year 2019-20 be carried out on the basis of merit obtained by the
candidates in National Eligibility-Cum-Entrance Test.5
 Aggrieved, the
candidates whose admission to the PG Medical Courses were to be cancelled
as also the UT of Chandigarh and the said Medical College have preferred
these appeals.
1 Hereinafter also referred to as “the PG Medical Courses”
2 Hereinafter also referred to as “the Medical College”/ “the said Medical College”.
3
It may be noticed at the outset that the questioned reservation has been provided for the
‘candidates with background of Chandigarh’. The candidates eligible under this category are those
(i) who have studied for 5 years in Chandigarh; or (ii) whose parents have resided in Chandigarh for a
period of 5 years; or (iii) who are children of the persons who have held or are holding immovable
property in Chandigarh or who themselves have held or are holding such immovable property for a
period of 5 years. Having regard to the submissions made and the questions involved,
notwithstanding the subtle distinction in the two concepts of domicile and residence [as noted by this
Court in the case of Yogesh Bhardwaj v. State of U.P. and Ors.: (1990) 3 SCC 355], the
reservation/preference in question is referred herein as ‘domicile/residence-based reservation’.
4
 ‘Union Territory’ is abbreviated as ‘UT’
5 Hereinafter also referred to as ”NEET” / ”NEET- PG 2019”
2
The basic facts concerning the parties
4. Before dilating on the rival contentions and the issue involved,
appropriate it would be to make a brief reference to the factual aspects
concerning the parties before us.
4.1. The appellant in the appeal arising out of SLP(C) No. 12918 of 2019,
completed her graduation in the year 2014; got herself registered as a doctor
with the Punjab Medical Council on 04.08.2016; appeared for the NEET-PG
2019 for securing admission to a PG Medical Course; scored 410 marks and
was placed at 51533 in All India Rank. The appellant thereafter applied for
admission under UT Pool Quota as she was domiciled in Chandigarh since
2006. Pending adjudication of CWP No. 8234 of 2019 (O&M) before the High
Court, the appellant was selected for admission to MD in Microbiology in the
first round of counselling held on 05.04.2019; paid the course fees amounting
to Rs. 33,420/-; and was waiting for her classes to begin from 01.05.2019.
With the impugned order dated 23.04.2019 her admission being in jeopardy,
she has preferred this appeal though she was not a party to the said writ
petition/s.
4.2. The appellants of SLP(C) No. 11441 of 2019, upon completing their
graduation, had appeared in the same NEET-PG 2019 conducted on
06.01.2019 and had secured 639 and 454 marks, thereby standing at 10910
and 40780 ranks respectively. The appellant No. 1 herein belongs to General
Category while the appellant No. 2 belongs to Schedule Caste Category.
These appellants had applied for admission in the said Medical College;
3
participated in the counselling sessions; were offered seats under the UT
Chandigarh Pool being higher in merit; were allotted their respective subjects;
and had paid the requisite fees. These appellants were respondent Nos. 11
and 5 respectively in CWP No. 8234 of 2019 (O&M) before the High Court and
have preferred the appeal for their admission being in jeopardy in view of the
impugned order dated 23.04.2019.
4.3. The appellant of SLP(C) No. 12919-20 of 2019 completed her MBBS in
2016 and had been registered as a doctor with the Punjab Medical Board. She
too appeared in NEET-PG 2019 conducted on 06.01.2019 and stood at rank
2164 with a score of 770 marks. She participated in the counselling sessions
conducted thereafter; and was selected for the course of M.S. in General
Surgery under the All India Quota. Though the appellant had taken admission
in the said course but was listed at serial No. 8 in the UT Chandigarh Pool
Quota list and as such, was hopeful of getting allotted another course in that
Quota.
4.3.1. It is the case of the appellant that despite being selected in the first
round wherein she was allotted M.S. in General Surgery and while waiting for
the second round of counselling, the Medical College mandated that she
ought to surrender her seat of M.S. in General Surgery before appearing in
the second round of counselling under the UT Chandigarh Pool Quota though
such surrendering of the seat was not mandated in relation to the other
candidates. Nevertheless, the appellant secured a seat in M.S. in Obstetrics
and Gynaecology in UT Chandigarh Pool Quota and duly paid her fees on
4
05.04.2019. Subsequently, with passing of the order impugned, the admission
of this appellant was also in jeopardy and hence she, though not a party to the
said writ petition/s, has preferred this appeal.
4.4. The appellants of the appeal arising out of SLP(C) No. 11477 of 2019
are the Union Territory of Chandigarh and the said Government Medical
College and Hospital, Chandigarh, whose proposition for domicile/residencebased reservation in UT Chandigarh Pool has been pronounced against by
the High Court.
4.5. Therefore, all the appellants herein are aggrieved of the impugned order
dated 23.04.2019 and have questioned the same on more or less similar
grounds.
5. On the other hand, the contesting respondents of these appeals had
been the writ petitioners before the High Court questioning the
domicile/residence-based reservation. They have supported the impugned
order on identical submissions.
6. It may be noticed that the Medical Council of India was not a party to
this litigation before the High Court but was ordered to be impleaded in these
proceedings by the order dated 06.05.2019. Further, on 09.05.2019, this Court
allowed the appellants to implead the already admitted students (academic
session 2019-20) as parties; and granted ad-interim stay over the impugned
order of the High Court while making it clear that the admission process which
was completed on the basis of the stated provisions governing
5
domicile/residence-based reservation shall be subject to the outcome of these
matters.
 The question involved and the background aspects
7. The principal question calling for determination in these matters is as to
whether providing for domicile/residence-based reservation in admission to
PG Medical Courses is constitutionally invalid and is impermissible? If answer
to this question is in the negative and it is held that such reservation is not
impermissible, the corollary questions would be as to the mode and modalities
for providing such reservation in the respective States/ Union Territories; and
more particularly, in relation to the State or Union Territory having only one
medical college. The background in which these questions have arisen could
be noticed as infra.
 Academic year 2018-19 – decision in Dr. Chahat Bhatia’s case
8. For the academic year 2018-19, the Government Medical College and
Hospital, Chandigarh had issued a prospectus for its PG Medical Courses
while stating that 125 seats were available with the institution in the said PG
Medical Courses of which, 50% i.e., 63 seats were allocated to All India Quota
whereas the remaining 62 seats were meant for the students who had passed
MBBS examination from the medical institutions of UT Chandigarh.6
 This
prescription of ‘institutional preference’ was challenged by way of a writ
petition before the High Court of Punjab and Haryana, being CWP No. 8962
6 Out of these, 15% seats remain reserved for the Scheduled Caste candidates. The seats remaining
after such reservation are referred as open seats and the discussion herein essentially relates to such
open seats.
6
of 2018: Dr. Chahat Bhatia v. Government Medical College and Hospital,
Sector 32, Chandigarh and Ors. The High Court, by way of its interim order
dated 07.05.2018, stayed the application of the Clause relating to ‘institutional
preference’. Assailing the said stay order, SLP (C) No. 12593 of 2018 was
filed by the Medical College wherein this Court, by the order dated
10.05.2018, directed the High Court to dispose of the matter on priority and
also directed that the candidates who had secured admissions shall not be
displaced, subject to the final decision in the matter. Subsequently, the High
Court, by its order dated 15.05.2018, held that while calculating institutional
preference, the seats reserved under All India Quota ought to be excluded.
The question of reservation on the basis of ‘domicile’ was never challenged
and, therefore, the High Court did not deal with the said issue.
8.1. The High Court, in its order dated 15.05.2018 noted that there was only
one medical institution located within the territory of Chandigarh leading to the
position that all the seats, after deducting the reserved ones, would be filled
up from the candidates passing their MBBS examination from the said Medical
College, thereby depriving all other candidates from the region of an
opportunity of admission to the PG Medical Courses at Chandigarh. It was
contended that the proposition of the Medical College amounted to 100%
reservation on institutional preference which was impermissible in terms of the
settled decisions of this Court. In view of the contentions urged, the Court
noted the two issues calling for determination as under:-
“i) Whether in the wake of the condition imposed in the
prospectus coupled with the fact of a singular institute in the
7
territorial boundary of UT Chandigarh preference contemplated
in the prospectus would tantamount to 100% reservation in
favour of the incumbents having completed their MBBS course
from Government Medical College and Hospital, Sector 32,
Chandigarh or not.
ii) Whether the candidates who have done their schooling in
Chandigarh or are connected to the City of Chandigarh would
need to be treated preferentially or not.”
8.2. After having thus noted the issues involved, the High Court put aside
the second issue with the following observations:-
“In so far as the second issue is concerned, it need not
engage our attention for a longer period considering it has been
settled by the various pronouncements of the Hon’ble Supreme
Court deprecating preference or weightage on the basis of
residence alone. So, the surviving issue is the one that we have
set out at (i) above.”
8.3. After the aforesaid observations, the High Court noted that the concept
of institutional preference was standing on firm pedestal with various
pronouncements of this Court; and, particularly with reference to the
Constitution Bench decision in Saurabh Chaudri and Ors. v. Union of India
and Ors.: 2013 (11) SCC 146, observed that it was not difficult to conclude
that the institutional preference would be a valid criterion but then, its extent
could be irksome and bad in law. The High Court also referred to the
provisions made in regulation 9(IV) and 9A of the Post-Graduate Medical
Education Regulations, 2000 prescribed by the Medical Council of India as
also the institutional preference provided by different States like the State of
Punjab and the State of Haryana. Thereafter, the High Court expressed its
disapproval of the allocation of seats as provided by the UT Chandigarh and
the Medical College while observing as under:-
8
“To our mind, if we see the break-up of seats, 63 out of 125
seats, being 50% would be consumed in the All India Quota
leaving the residue of 62, which, if the prescribed criteria of the
prospectus is applied, would leave no seat for any other
aspirant.
The learned Senior Standing Counsel for UT, Chandigarh
would be quick to respond to refer to clauses PG-8 and PG-8.1
to contend that there is a procedure prescribed to fill the left over
seats where the candidates who have studied in Chandigarh for
a period of 5 years or the children of persons who have resided
in Union Territory of Chandigarh for a period of at least 5 years
or the children of persons who have held immovable property in
UT Chandigarh for a period of 5 years at any time prior to the
last date of the submission of the application, would be
considered.
This in itself would make no significant impact to the primary
question that we are dealing with i.e. there being 100%
institutional preference. In fact, the mischief seems to have been
done not in prescribing the conditions of preference but by
placing an interpretation on the calculation for institutional
preference by taking into account the seats. The prospectus
states that 50% of total number of seats have been reserved for
institutional preference for students of medical institution of UT
Chandigarh. “Total number of seats” taken for this determination
of institutional preference seats is 125, which according to us,
would be erroneous for the simple reason that out of 125 seats
allocated to the UT pool 50% i.e. 63 seats would be propelled
out of orbit of the UT Chandigarh pool the moment they are
consumed in the All India Quota leaving only 62 seats for the
College to be filled up. Therefore, total number of seats for the
institutional preference are the residual ones that fall to the
institution after All India Quota is consumed. Thus the
interpretation placed by the Chandigarh Administration would
virtually discard from the process of consideration other
aspirants who may, being from the region be higher up in merit
but would stand excluded.
To avoid merit being a casuality it would be in the fairness of
things that 50% institutional preference be restricted to 62 seats
falling to the share of the institution after the remaining 50%
have been consumed in the All India quota.”
8.4. Interestingly, the High Court, even though made a cursory observation in
the earlier part of the order that the second issue as regards preferential
treatment to the candidate having connectivity with the city of Chandigarh
9
need not be dilated, for this Court having not approved the preference or
weightage on the basis of residence alone but then, proceeded to observe in
the later part of the order that the linkage of the candidate to Chandigarh was
not questioned and hence, would not invite any comment from the Court. With
these observations, the High Court concluded and held as follows:-
“Nobody has raised any question to Clauses PG-8 or PG-8.1
where the candidates having linkage to Chandigarh either
through education or placement of their parents or property, and
therefore, it need not invite any comment from us. Suffice it to
say that the interpretation of institutional preference with its
applicability of total number of seats which are 125 has resulted
in a situation that reeks of arbitrariness and a resultant violation
of Article 14 of the Constitution of India. We would thus hold the
stand of the UT Chandigarh erroneous in this regard. While
upholding the principal of institutional preference we would direct
that it would relate to 50% of the seats available to the institution
after 50% of All India Quota has been consumed and upon such
calculation throw open the seats to other deserving aspirants.
Issues have been raised about individual candidates and
their eligibility, but we are of the opinion that these are matters to
be left to the Committee in-charge of Counselling to examine.
In view of the above, we direct the Government Medical
College and Hospital, Sector 32, Chandigarh to conduct the
counselling afresh by keeping in view the above.”
8.5. Aggrieved by the order aforesaid, a petition for Special Leave to Appeal,
being SLP (C) No. 13562 of 2018, was filed in this Court but the same was
dismissed in limine on 24.05.2018.
Academic year 2019-20
9. The Medical College, following the aforesaid decision in the case of Dr.
Chahat Bhatia (supra), issued the prospectus on 16.03.2019 for admissions to
the PG Medical Courses for the academic year 2019-20 stating that the total
number of seats were 128, which were equally divided into All India Quota and
10
State Quota, as set out in Clause 1 and Clause 2 of the prospectus. More
specific to the case at hand, Clause 2 explained that the State Quota was
further divided in Clause 2A (Institutional Preference Pool) and Clause 2B (UT
Chandigarh Pool). This Clause 2B is the bone of contention herein. For ready
reference, the entire Clause 2 pertaining to the State Quota seats may be
reproduced as under:-
“ 2. State Quota: 64 seats. In compliance of the decision of
Hon’ble Punjab and Haryana High Court, distribution of 50%
State Quota seats are as below:-
Category Total No.
of seats
Reserved
(SC) 15%
General
1. Institutional
Preference
Pool (IP)
32 5 27
2. UT,
Chandigarh
Pool
32 5 27
Total 64 10 54
A. Institutional Preference Pool (IP): Candidates who have
passed their MBBS examination from Govt. Medical
College & Hospital Chandigarh
B. UT Chandigarh Pool: Candidate who fulfil eligibility criteria
as below: This category will include candidates with
background of Chandigarh. To be eligible for this category
candidate should fulfil any of the following criteria:-
i. Studied for a period of 5 years in the Union
Territory of Chandigarh at any time prior to the
last date of the submission of the application.
ii. Candidates whose parents have resided in
Union Territory of Chandigarh for a period of at
least 5 years at any time prior to the last date
of the submission of the application either in
pursuit of a profession or holding a job.
iii. Children of persons who have held/hold
immovable property in Union Territory of
Chandigarh for a period of five years at any
time prior to the last date of the submission of
11
the application. The property should be in the
name of the parents or the candidate
himself/herself.
Important Note:
a) To be eligible for UT Chandigarh Pool under B(i), the
candidate must submit a certificate to the effect from
Principal of School/College located within the territory of
UT Chandigarh.
b) To be eligible under B (ii), the candidate should submit a
certificate issued by the D.C of UT Chandigarh to the
effect that the candidate or his parents have been
residing/have resided in Chandigarh at least for 5 years.
c) To be eligible under B (iii), the candidate must submit a
certificate issued by D.C-cum-Estate Officer/Tehsildar
stating that the candidate/parents of the candidate have
held/are holding immovable property in UT Chandigarh for
at least for 5 years prior to the submission of application.”
Challenge before the High Court–the impugned order dated 23.04.2019
10. The private respondents (writ petitioners) challenged the legality and
validity of the aforesaid Clause 2B of the prospectus in CWP No. 8234 of
2019 (O & M): Shrey Goel and Ors v. Union Territory of Chandigarh and
Anr. before the High Court of Punjab and Haryana. Pending disposal of this
petition, another writ petition, being CWP No. 9565 of 2019 (O & M): Shweta
Sandhu and Ors v. Union Territory of Chandigarh and Anr. was filed on
05.04.2019 by other candidates with similar challenge to the said Clause 2B of
the prospectus. Besides this, similarly aggrieved candidates filed various
impleading applications in the said petitions. By way of its order dated
12.04.2019, the High Court allowed such applications and the applicants were
impleaded as respondent Nos. 13 to 22 to the said petitions.
12
10.1. The said writ petitions were tagged together and the High Court, by its
common order dated 23.04.2019, struck down the impugned Clauses of the
prospectus issued by the Medical College. The High Court took note of the
issue involved in the matter as follows:-
“The short question that has been posed before us is whether
the above extracted clause of the prospectus inasmuch as it
gives primacy and emphasis to a person’s residence and
association with a city to grant a concession in merit, is in direct
conflict with the various decisions of the Hon’ble Supreme
Court such as Dr. Pradeep Jain etc. etc. vs. Union of India
and others reported as 1984 AIR (SC) 1420 and Saurabh
Chaudri and others v. Union of India and others reported as
(2003) 11 SCC 146 , or not?”
10.2. The High Court reproduced some of the observations made by this
Court in the referred decisions including those in Dr. Pradeep Jain and Ors.
v. Union of India and Ors.: (1984) 3 SCC 654 and those occurring in
paragraphs 29 to 32 of the Constitution Bench decision in Saurabh Chaudri
(supra) as also the fact that only the question of institutional preference was
decided in Dr. Chahat Bhatia (supra) and the question of domicile/residencebased reservation was not gone into. The High Court, thereafter, proceeded to
consider the three stipulations occurring in the impugned Clause 2B of the
prospectus (as noticed above) and disapproved the same while observing as
under:-
“To test the rationale, we would pick up all the three
stipulations one by one.
If we look at stipulation (a) that a person ought to have
studied for 5 years in UT, Chandigarh at any point of time prior
to the last date of submission of the application then it is
capable of following two interpretations:
13
(i) That if a preference in this category is given it will
increase the reservation for institutional preference. One has to
be mindful of the fact that we are dealing with admission to Post
Graduate courses and if there is a student who has studied 5
years in UT, Chandigarh at any time prior to the last date of
submission of the application, it will certainly lean in favour of
those who have studied for their MBBS degree in UT,
Chandigarh. Since there is only one college in Chandigarh, the
benefit flowing from such a clause would merge with that of the
institutional preference, thereby upsetting the balance provided
by a 50% cap intended for Institutional Preference. This clause
is, therefore, fraught with inherent dangers.
Second situation would be that a candidate might have
studied for 5 years in UT, Chandigarh at any time prior to the
last date of the submission of the application which would also
mean studying from Kindergarden to Class V or for any other
period for that purpose. This would hardly provide any rationale
to the logic of claiming a seat for a post graduate course under
the UT, Chandigarh pool.
Similarly, clause (b) reads an entitlement for those whose
parents have resided in UT, Chandigarh for a period of 5 years
at any point of time prior to the last date of submission of the
application either in pursuit of a profession or in holding a job.
This too does not offer any rationale to convert it into a
preference for the simple reason that a person may have
settled down in Chandigarh briefly for a period of 5 years and
then departed. The absurdity of this stands out if we visualize a
situation, of a person having come to Chandigarh possibly at
the time when it was coming up in the 1950s and departed after
spending 5 years only to return after a lapse of more than 60
years and claim a preference since he had spent 5 years in
Chandigarh at some time and fulfills the condition of being a
resident of this town “at any time prior to the last date of
submission of the application.”
Likewise, clause (c ) also offers a similarly absurd situation
of there being a case where a person has invested in property,
may be at any point of time but choosing to give it up, and yet
fulfilling the clause of owning a property for a period of 5 years
at any time prior to the last of submission of the application.”
10.3. Thereafter, the High Court, with reference to the aforesaid
decisions in Saurabh Chaudri’s case and Dr. Pradeep Jain’s case, observed
that there existed no nexus of the impugned stipulations with the object
14
sought to be achieved i.e., making reservations on the basis of residence;
and such a reservation has to be objected to, for admission to the PG
Medical Courses should be only on the basis of merit. The High Court held
and concluded as under:-
“We would, therefore, conclude that in the matters of
admission to Post Graduate courses such a
reservation/preference which has its foundations in a long
discarded principle i.e. domicile would be unsustainable.
Besides, all the clauses that have been introduced in the
brochure and discussed to describe a candidate with
background of Chandigarh would be unsustainable in law as
they have no rationale to the objects sought to be achieved
even if we have to assume that such a preference was
permissible in law.
We, therefore, strike down clause 2 (a), (b) and (c) of UT,
Chandigarh Pool as being invalid and unsustainable in law. All
admissions made by placing reliance on the above would as a
logical corollary be also unsustainable. The only course
available to the college is to fill up the seats through merit
position obtained by candidates in NEET examinations.”
The submissions:
11. The learned counsel appearing for the appellants have made more or
less similar nature submissions in support of their challenge to the order
impugned that have been countered by the learned counsel appearing for the
contesting respondents. The learned counsel appearing for the Medical
Council of India has also made elaborate submissions as regards the scheme
of examination and the admissions in question as also in response to various
queries of this Court. We may briefly take note of the varying submissions and
contentions so urged.
15
11.1. The substance of submissions on behalf of the private appellants, the
candidates who had secured admission in the respective branches of PG
Medical Courses in the said Medical College, has been that the High Court
has erroneously held the domicile/residence-based reservation to be
impermissible for admission to the PG Medical Courses. The learned counsel
appearing for the respective appellants have argued that even when a threeJudge Bench of this Court in the case of Dr. Pradeep Jain (supra) expressed
its disapproval of domicile/residence-based reservation for admission to PG
Medical Courses, the Constitution Bench of this Court in Saurabh Chaudri
(supra) has not disapproved such domicile/residence-based reservation. The
learned counsel have particularly referred to paragraphs 29 to 32 of the
decision in Saurabh Chaudri (supra) in support of their contentions and have
also urged that in paragraphs 38 to 70 in Saurabh Chaudri’s case, the
Constitution Bench has only considered the constitutional validity of
institutional preference and in that context, the law laid down in Dr. Pradeep
Jain was upheld but the said decision in Saurabh Chaudri cannot be relied
upon for disapproval of domicile/residence-based preference for admission to
the PG Medical Courses; and there is no constitutional bar over providing
such a preference. It has further been contended that the criteria as laid down
by UT Chandigarh and its Medical College cannot be said to be offending the
principle of equality; and the High Court has seriously erred in treating the
same to be arbitrary and unlawful. It has also been contended on behalf of
these appellants that in any case, the High Court could not have set aside the
16
admissions that had been made for the academic year 2019-20, particularly
when counselling of the candidates had been completed and in fact, there was
no specific prayer for setting aside the admissions already given. In the
alternative part of submissions, it has also been contended in the appeal
arising out of SLP(C) No. 1141 of 2019 that this aspect of reservation on
the basis of domicile/residence for admission to PG Medical Courses is
required to be reconsidered and decided by a Larger Bench of this Court.
11.2. On behalf of the other appellants-UT Chandigarh and the Medical
College, the learned senior counsel has also extensively referred to various
decisions of this Court as also the decision of the High Court in Dr. Chahat
Bhatia (supra) and has submitted that until the academic year 2018-2019,
these appellants were filling up the total number of Post-graduate seats
available in the UT by dividing them in two parts: 50% of the total number of
seats for All India Quota and remaining 50% by way of institutional preference
from amongst the students who had passed out from the appellant-Medical
College. However, this process was challenged and the High Court, in its
decision in Dr. Chahat Bhatia (supra) ruled that institutional preference would
remain restricted to 50% of the State Quota seats7
. According to the learned
counsel, in the wake of the decision in Dr. Chahat Bhatia and the fact that UT
Chandigarh has only one medical college, the position obtainable had been
that the UT Administration could have kept only 32 seats (50% of 64 number
of State Quota seats) reserved to be filled up by way of institutional
7 This would effectively mean 25% of total open seats being allowed for institution preference – being
50% of the 50% State Quota seats.
17
preference. In this scenario, according to the learned counsel, provision was
required to be made for the remaining 50% of State Quota seats allotted to UT
Chandigarh and for this purpose, the UT had to identify such students by
providing some criteria. Thus, according to the learned counsel, such criteria
for filling up the remaining State Quota seats came to be reflected in Clause
2B of the prospectus; and the criteria so provided by the appellants are neither
invalid nor suffer from any illegality, so as to be struck down.
11.2.1. The learned senior counsel has further referred to the fact that in the
scheme of examination and admission to the PG Medical Courses, the State
Quota seats are to be filled up by the respective States by following their
respective qualifying criteria and guidelines; and has referred to Clauses 13.2
and 14.9 of the Information Bulletin issued by the National Board of
Examination that conducts the National Eligibility-Cum-Entrance Test.
8
 Thus,
according to the learned counsel, domicile/residence-based preference for
State Quota seats is recognised by the National Board of Examination too.
The learned counsel has reiterated the submission that in Saurabh Chaudri’s
8 The said clauses read as under:-
13.2 For States/Union Territories – 50% State Quota Seats and Private Medical
Colleges/Institutes/Universities/Deemed Universities:
a) Reservation policy and guidelines applicable in different States/Union Territories of
India will be followed for the respective State/Union territory quota seats.
b) NBE shall be providing only the data of candidates and the marks scored by them
in NEET-PG to the State Governments/Counselling Authority without applying the reservation
prevalent in the concerned States/Private Medical Colleges/Institutes/Universities. The merit
list and category wise merit list for the concerned State shall be generated by the State
themselves as per the applicable Regulations, qualifying criteria, applicable guidelines and
reservation policies.
 Clause 14.9: RESULT FOR STATE QUOTA SEAT:
e) Candidates must verify from the respective State Government/UTs if at all they will
be considered for admission to State Quota Post Graduate seats/Institute Pool based on
applicable Regulation and/or domicile criteria, State/Institute of Graduation, reservation
policy etc. Merely appearing/passing in NEET-PG 2019 does not make a candidate qualified
and/or eligible for State Quota Seats/admission to Private Universities & Institutes.
(emphasis supplied)
18
case, the Constitution Bench has not ruled against the domicile/residencebased reservation for admission to the PG Medical Courses.
11.2.2. The learned counsel has also referred to the provisions made by
various other States and Union Territories for the purpose of filling up the
State Quota seats; and has pointed out that not only the UT Chandigarh but
several other States and Union Territories have made similar provisions on
domicile/residence-based preference for filling up such 50% State Quota
seats in PG Medical Courses.9

9
The summary of procedure followed for PG Admissions in different States/UTs, as placed
before us by the counsel for the appellants makes out that in all such admissions, 50% seats are
provided for All India Quota but as regards 50% of State Quota seats, different provisions have been
made by different States/Union Territories. These aspects are duly corroborated in the summary of
such admission processes in different States/UTs, as placed before us by the learned counsel for the
Medical Council of India. The provisions in relation to some of the States/UTs are stated as under:-
StateReservationsHARYANA
2019-STATE 50% Quota
 20% -Institutional preference.
 5% of annual sanctioned intake CAPACITY –Persons with Disabilities.
 Open Merit* (left over seats)
Eligibility Criteria:
-Passed MBBS/BDS from any recognised Medical Institution in Haryana as a resident of Haryana.
- Passed MBBS/BDS from any recognised Medical Institution in India who’s Parents produce a Haryana
Resident Certificate.PUNJAB
2018STATE 50% Quota through Baba Farid University Of Health Science (BFUHS)
50% -Institutional PreferenceANDHRA PRADESH
2019-2020-STATE 50% Quota
 85% seats in favour of Local Candidates in relation to local areas.
 15% seats for residents of 10 yrs/parents employed in Govt. jobs in State/ if spouses of
candidates are in Govt. jobs in the state/employed in quasi-public institutions.
-50% of seats in Private Institutions are under competent authority.MAHARASHTRA
2019-STATE 50% QUOTA
- Domicile candidates of State who have got admission to MBBS through 15% AIQ can apply for
admission state quota seats.
-50% of seats in Private Institutions are under State CET cell quota/rest 50% are through institutional
preference.BIHAR 2018-STATE 50% Quota
- Domicile candidates of State who have got admission to MBBS through exam conducted by AIQ/ Govt.
of Bihar before bifurcation of state can apply for admission in state quota seats.
- Candidate who is not a permanent resident of Bihar but has passed MBBS from any Medical college in
Bihar.
- Reservation of 50% of total seats for SC/ST/EBC/BC/RCG/DQ permanent residents of
BiharKARNATAKA 2019-STATE 50% Quota
Eligibility Criteria:
-Cleared MBBS/BDS from an Institution in State of Karnataka
-Cleared MBBS/BDS from an Institution in India and studied for minimum 10 academic years in
Karnataka and must have completed his/her Higher Secondary from Karnataka. RAJASTHAN 2019-STATE 50%
Quota
-25% Reserved for Institutional Preference
-25% Reserved for candidates who have cleared MBBS from medical institutes of RajasthanUTTAR
PRADESH, 2019-STATE 50% Quota
-Seats Reserved for candidates who have cleared MBBS from medical institutes of UP.
19
12. Per contra, learned senior counsel for private respondents (the writ
petitioners) has extensively referred to the aforesaid decision of this Court in
Dr. Pradeep Jain and Saurabh Chaudri and has further relied upon the
decisions in Jagdish Saran v. Union of India: (1980) 2 SCC 768; Magan
Mehrotra v. UOI :(2003) 11 SCC 186; Nikhil Himthani & Ors. v. State of
Uttarakhand & Ors.: (2013) 10 SCC 237; Vishal Goyal & Ors. v. State of
Karnataka & Ors.: (2014) 11 SCC 456; Dr. Kriti Lakhina v. State of
Karnataka: 2018 SCC online SC 324; and Satyabrata Sahoo & Ors. v.
State of Orissa :(2012) 8 SCC 203. The learned counsel would submit that
in accord with the said decisions, these respondents, having passed their
M.B.B.S. course and having applied under ‘institutional quota’, are entitled for
admission to the PG Medical Courses under the said quota of institutional
-Domicile candidates of State who have got admission to MBBS colleges outside UP through AIQ can
apply for admission in state quota seats.
. PUDUCHERRY, 2019-2020-STATE 50% Quota
-All Govt. Quota Seats reserved for residents of Puducherry.DELHI, 2019-STATE 50% Quota
 50% seats allotted to Faculty of Medical Science, Delhi University.
 50% seats allotted to Guru Gobind Singh Indraprastha University.
GOA, 2019-STATE 50% Quota (only one university)(Press Note)KERALA, 2019-STATE 50% Quota
 383 seats in P.G. Degree courses
 79 seats in PG Diploma Courses in the Government Medical Colleges
 8 Seats for PG Degree at RCC, Trivandrum
-Eligibility:
 Academic : Applicants must have MBBS degree recognized by MCI
 Nativity: Applicants should have satisfied any of the following conditions:
- Indian Citizens of Kerala origin.
- Candidates who are sons/daughters of Non-Keralite parents, who have obtained MBBS Degree from
any of the Medical Colleges in the State of Kerala.TELENGANA, 2019-STATE 50% Quota
 85% seats in favour of Local Candidates in relation to local areas. (as provided in the Andhra
Pradesh Educational Institution Order, 1974 as amended from time to time)
The Non local candidates do not have any reservations. The Nonlocal candidates are eligible for 15%
unreserved seats only. The local candidates are also eligible for 15% unreserved seats.WEST BENGAL, 2019-
STATE 50% Quota or Open Category candidates
 Passed MBBS/BDS from WB.
Permanent Resident of WBJHARKHAND 2019-STATE 50% Quota
- Domicile candidates of State who have got admission to MBBS through exam conducted by AIQ/ Govt.
of Bihar before bifurcation of state in 2000 can apply for admission in state quota seats.
- Candidate who have passed MBBS from any Medical college/University in Jharkhand.
20
preference but are deprived of the same because of the impugned
domicile/residence-based reservation provided by the Medical College. He
has also contended that the issue involved in the present matters is no more
res integra as the reservation in PG Medical Courses on the basis of place of
birth and/or residence/domicile has been disapproved, being violative of
Article 14 of the Constitution of India; and that admission to specialised
courses should be on the basis of merit alone. The learned senior counsel has
further submitted that in the order impugned, the High Court has rightly
observed that there is no nexus of the classification prescribed with the
objective sought to be achieved i.e., allotting 50% of State Quota seats. The
learned counsel would submit that in relation to the issue concerning
‘admission on the basis of domicile’, the High Court has observed in Dr.
Chahat Bhatia that the practice has been repeatedly disapproved; and the
said decision has attained finality. Thus, according to the learned counsel,
domicile/residence-based reservation has rightly been disapproved in the
order impugned.
13. The learned counsel for the Medical Council of India has also made
extensive reference to the aforesaid decisions, including those in Dr. Pradeep
Jain and Saurabh Chaudri and has submitted that, for the law settled by this
Court in Saurabh Chaudri, 50% seats of the total seats in the PG Medical
Courses are All India Quota Seats and are to be filled up from the All India
Merit List. For these All India Seats, counselling is carried out by Directorate
General of Health Services and the balance 50% goes to the respective
21
States for which, counselling is carried out by the concerned State. According
to the learned counsel, these 50% State Quota seats cannot be filled up by
the State by imposing domicile/residential requirement, though the State may
prescribe institutional preference as the criteria for filling up these 50% State
Quota seats. Learned counsel has submitted that the impugned Clause 2B of
the prospectus is violative of the principle of equality enshrined under Article
14 of the Constitution and is also contrary to the various judicial
pronouncements of this Court and is, therefore, liable to be quashed.
13.1. The learned counsel has also placed on record a chart showing the
policy of 21 States in applying institutional preference/reservation along with
relevant portion of brochures/Information Bulletin published by the respective
States. The learned counsel has also submitted that as per the time schedule
framed by the Council with the prior approval of the Central Government as
well as approved by this Court in Ashish Ranjan v. UOI & Ors.: (2016) 11
SCC 225, the date for commencement of academic year had been 01.05.2019
and the last date for completion of admission process for PG Medical Courses
had been 31.05.2019; and all admissions to PG Medical Courses had already
been completed for the current academic year 2019-20, which may not be
disturbed at this belated stage.
13.2. The learned counsel for Medical Council in the last submitted that if at
all the admissions are to be cancelled, manual counselling may be ordered
only in relation to those students who have not joined and taken admission in
22
any other college because any other proposition may upset the entire process
of studies in the respective PG Medical Courses.
14. At this juncture, relevant it would also be to notice that during the course
of hearing of these matters, it was pointed out by the learned counsel for
parties that the question as regards institutional preference had been referred
to a Larger Bench of this Court in the case of Yatinkumar Jasubhai Patel
and others v. State of Gujarat and others: SLP(C) No. 7003 of 2017. It
has, however, been brought to our notice that while decision remained
pending in these matters, the said referred case and connected matters were
decided by a three-Judge Bench of this Court on 04.10.2019 upholding the
institutional preference for admission to the PG Medical Courses. Having
regard to the question involved we would refer to the said decision at the
appropriate stage hereafter later.
Whether domicile/residence-based reservation is entirely impermissible?
15. As noticed, the core question calling for determination herein is as to
whether providing for domicile/residence-based reservation for admission to
PG Medical Courses is constitutionally invalid and is impermissible. Several
decisions of this Court have been referred by the learned counsel for the
respondents in support of the impugned order of the High Court and in support
of the contention that such a prescription is constitutionally invalid. In our
view, the submissions on invalidity of the domicile/residence based
reservation in relation to the State Quota seats and the assumption that such
a proposition is long back discarded (as per the expression employed by the
23
High Court) needs to be examined by a Larger Bench of this Court in view of
the significance of the issue, which is of recurrence in every academic year for
one reason or another; and particularly when varying views have been
expressed by different Benches, which need to be reconciled with the
observations made by the Constitution Bench of this Court in Saurabh
Chaudri’s case. We may, therefore, refer to the decision in Saurabh Chaudri in
requisite details.
16. It could be profitably noticed that before the pronouncement in Saurabh
Chaudri by the Constitution Bench, this Court had expressed desirability of
merit-based admissions to the Medical Courses; and multiple vistas of such
admission process were dealt with by this Court in several decisions like those
in Jagdish Saran, Dr. Pradeep Jain as also in Magan Mehrotra (supra). In fact,
reference to the Constitution Bench in Saurabh Chaudri’s case had been in
sequel to Magan Mehrotra’s case inasmuch as a three-Judge Bench of this
Court in Magan Mehrotra had held that apart from institutional preference, no
other preference including reservation on the basis of residence was
envisaged in view of the decision in Dr. Pradeep Jain. However, the
notification consequently issued by Delhi University for institutional preference
for admission to PG Medical Courses was questioned by the appellants
claiming themselves to be the residents of Delhi. In this challenge; a Division
Bench of this Court referred the matter to a three-Judge Bench having regard
to the decision in Magan Mehrotra; and the three-Judge Bench directed the
matter to be placed before a Bench of five Judges considering its importance.
24
In this backdrop, the Constitution Bench, dealing with the reference in
Saurabh Chaudri, indicated the two questions being determined by it in the
following:-
“2. The core question involved in these writ petitions and
appeal centres around the constitutional validity of reservation
whether based on domicile or institution in the matter of
admission into postgraduate courses in government-run
medical colleges.
*** *** ***
10. The question which was initially raised in the writ petition
was as to whether reservation made by way of institutional
preference is ultra vires Articles 14 and 15 of the Constitution of
India; but during hearing a larger issue viz. as to whether any
reservation, be it on residence or institutional preference, is
constitutionally permissible, was raised at the Bar.”
16.1. The first question, as to whether reservation on the basis of domicile is
impermissible, was answered and disposed of by the Constitution Bench in
the following passages:-
“29. The first question that arises for consideration is, whether
the reservation on the basis of domicile is impermissible in
 terms of clause (1) of Article 15 of the Constitution of India.
The term “place of birth” occurs in clause (1) of Article 15 but
not “domicile”. If a comparison is made between Article 15(1)
and Article 16(2) of the Constitution of India, it would appear
that whereas the former refers to “place of birth” alone, the
latter refers to both “domicile” and “residence” apart from place
of birth. A distinction, therefore, has been made by the makers
of the Constitution themselves to the effect that the expression
“place of birth” is not synonymous to the expression “domicile”
and they reflect two different concepts. It may be true, as has
been pointed out by Shri Salve and pursued by Mr Nariman,
that both the expressions appeared to be synonymous to some
of the members of the Constituent Assembly but the same, in
our opinion, cannot be a guiding factor. In D.P. Joshi case a
Constitution Bench held so in no uncertain terms.
30. This Bench is bound by the said decision.
25
31. In State of U.P. v. Pradip Tandon this Court observed: (SCC
p. 277, para 29)
“29. The reservation for rural areas cannot be sustained
on the ground that the rural areas represent socially and
educationally backward classes of citizens. This
reservation appears to be made for the majority
population of the State. Eighty per cent of the population
of the State cannot be a homogeneous class. Poverty in
rural areas cannot be the basis of classification to
support reservation for rural areas. Poverty is found in
all parts of India. In the instructions for reservation of
seats it is provided that in the application form a
candidate for reserved seats from rural areas must
submit a certificate of the District Magistrate of the
district to which he belonged that he was born in rural
area and had a permanent home there, and is residing
there or that he was born in India and his parents and
guardians are still living there and earn their livelihood
there. The incident of birth in rural areas is made the
basic qualification. No reservation can be made on the
basis of place of birth, as this would offend Article 15.”
32. Answer to the said question must, therefore, be
rendered in the negative.”
(underlining supplied)
16.2. Thus, the answer by Constitution Bench to the question as to whether
domicile/residence-based reservation is impermissible had been in a crisp and
terse negative. In other words, the answer was in the affirmative on
permissibility. For comprehension of the basis of such answer by the
Constitution Bench, appropriate it would be to closely look at the two decisions
referred to in the aforesaid paragraphs 29 and 31 in Saurabh Chaudri.
16.3. In the case of State of U.P. v. Pradip Tandon10 (referred to in the
above-quoted paragraph 31 of Saurabh Chaudri), the question that arose for
consideration before the three-Judge Bench of this Court had been as to
10 (1975) 1 SCC 267
26
whether the instructions framed by the State of Uttar Pradesh in making
reservation in favour of the candidates from rural areas, hill areas and
Uttarakhand for admission to Medical Colleges were constitutionally valid.
This Court did not approve of the reservation for rural areas for the same had
been made only on the basis of the place of birth and hence, was offending
Article 15 of the Constitution. However, in the said decision, the reservation
made in favour of the people in hill areas and Uttarakhand area was upheld,
for the same having been made for the benefit of socially and educationally
backward classes of citizens, particularly when this Court found that the State
had established that the people in those areas were of socially and
educationally backward classes.
16.4. As noticed, in Saurabh Chaudri, after a short reference to the decision
in D.P.Joshi v. State of M.P.11 this Court reiterated that the concept of
“domicile” was not equivalent to the concept of “place of birth”; and the
prohibition contained in Article 15(1) of the Constitution of India relates to any
discrimination only on the basis of the “place of birth”. The said decision in
D.P.Joshi was rendered by a Constitution Bench of this Court in a writ petition
under Article 32 of the Constitution of India that was filed while questioning the
stipulation regarding capitation fees, as made by Mahatma Gandhi Medical
College at Indore, run by the State of Madhya Bharat. The petitioner, who was
a resident of Delhi and had been admitted as a student in the said Medical
College at Indore, was called upon to pay a sum of Rs. 1500/- per annum as
capitation fee in addition to the tuition fee and other charges payable by the
11 AIR 1955 SC 334
27
students of said college in general. The petitioner’s grievance had been that
such rules relating to the matter of fees, as in force in the college concerned,
were of discrimination between the students who were residents of Madhya
Bharat and those who were not, inasmuch as the residents of other States
were required to pay such capitation fee in addition to the tuition fee and
charges payable by all the students; and such a stipulation was offending
Articles 14 and 15 of the Constitution of India. The Constitution Bench, by 4:1
majority, rejected such contentions while pointing out the significant distinction
in the concepts of “domicile/residence” and “place of birth” and after finding
nothing of discrimination in providing capitation fees on a particular class of
students and not others. The rule in question was taken note of as under:
“4. …."For all students who are 'bona fide residents' of
Madhya Bharat no capitation fee should be charged. But for
other non- Madhya Bharat students the capitation fee should be
retained as at present at Rs. 1,300 for nominees and at Rs.
1,500 for others".
…..
'Bona fide resident' for the purpose of this rule was defined as :
"one who is -
(a) a citizen of Indian whose original domicile is in Madhya
Bharat, provided he has not acquired a domicile elsewhere, or
(b) a citizen of India, whose original domicile is not in Madhya
Bharat but who has acquired a domicile in Madhya Bharat and
has resided there for not less than 5 years at the date, on which
he applies for admission, or
(c) a person who migrated from Pakistan before September 30,
1948 and intends to reside in Madhya Bharat permanently, or
(d) a person or class of persons or citizens of an area or
territory adjacent to Madhya Bharat or to India in respect of
whom or which a Declaration of Eligibility has been made by
the Madhya Bharat Government".
28
16.4.1. After extracting Article 15(1) of the Constitution of India12, the
Constitution Bench expounded on the difference in the concepts of
“domicile/residence” and “place of birth” in the following:-
“5….Residence and place of birth are two distinct conceptions
with different connotations both in law and in fact, and when
article 15(1) prohibits discrimination based on the place of birth,
it cannot be read as prohibiting discrimination based on
residence.”
The Court again said:
“6… whether the expression used is "domicile of origin" or
"domicile of birth", the concept involved in it is something
different from what the words "place of birth" signify. And if
"domicile of birth" and "place of birth" cannot be taken as
synonymous, then the prohibition enacted in article 15(1)
against discrimination based on place of birth cannot apply to a
discrimination based on domicile.”
(underlining supplied)
16.4.2. The Court further rejected the contention that there could not be a
domicile of Madhya Bharat and also found force in the contention that the
expression “domicile” in the concerned clauses was essentially referable to
“residence”. The Court said:
“10. Under the Constitution, the power to legislate on
succession, marriage and minority has been conferred under
Entry 5 in the Concurrent List on both the Union and the State
Legislatures, and it is therefore quite conceivable that until the
center intervenes and enacts a uniform code for the whole of
India, each state might have its own laws on those subjects,
and thus there could be different domiciles for different States.
We do not, therefore, see any force in the contention that there
cannot be a domicile of Madhya Bharat under the Constitution.
12 Article 15 (1) of the Constitution of India reads under:-
"The State shall not discriminate against any citizen on grounds only of religion, race, caste,
sex, place of birth or any of them".
29
11. It was also urged on behalf of the respondent that the word
"domicile" in the rule might be construed not in its technical
legal sense, but in a popular sense as meaning "residence",
and the following passage in Wharton's Law Lexicon, 14th
Edition, page 344 was quoted supporting such a construction :
"By the term 'domicile', in its ordinary acceptation, is mean the
place where a person lives or has his home. In this sense the
place where a person has his actual residence, inhabitancy, or
commorancy, is sometimes called his domicile".
In Mcmullen v. Wadsworth: [1889] 14 A.C. 631, it was observed
by the Judicial Committee that "the word domicile in Article 63
(of the Civil Code of Lower Canada) was used in the sense of
residence, and did not refer to international domicile". What has
to be considered is whether in the present context "domicile"
was used in the sense of residence. The rule requiring the
payment of a capitation fee and providing for exemption there
from refers only to bona fide residents within the State. There is
no reference to domicile in the rule itself, but in the Explanation
which follows, clauses (a) and (b) refer to domicile, and they
occur as part of the definition of "bona fide resident".
In Corpus Juris Secundum, Volume 28, page 5, it is stated :
"The term 'bona fide residence' means the residence with
domiciliary intent".
There is therefore considerable force in the contention of the
respondent that when the rule-making authorities referred to
domicile in clauses (a) and (b) they were thinking really of
residence. In this view also, the contention that the rule is
repugnant to article 15(1) must fail.”
16.4.3. The Court also rejected the contention that the Rule imposing
capitation fee was in contravention of Article 14 in the following:
“14. It is next contended for the petitioner that the imposition of
capitation fee on some of the students and not on others is
discriminatory, and is in contravention of Article 14 of the
Constitution, and therefore void. The impugned rule divides, as
already stated, self-nominees into two groups, those who are
bona fide residents of Madhya Bharat and those who are not,
and while it imposes a capitation fee on the latter, it exempts
the former from the payment thereof. It thus proceeds on a
classification based on residence within the State, and the only
point for decision is whether the ground of classification has a
30
fair and substantial relation to the purpose of the law, or
whether it is purely arbitrary and fanciful.
15. The object of the classification underlying the impugned rule
was clearly to help to some extent students who are residents
of Madhya Bharat in the prosecution of their studies, and it
cannot be disputed that it is quite a legitimate and laudable
objective for a State to encourage education within its borders.
Education is a State subject, and one of the directive principles
declared in Part IV of the Constitution is that the State should
make effective provisions for education within the limits of its
economy. (Vide article 41). The State has to contribute for the
upkeep and the running of its educational institutions. We are in
this petition concerned with a Medical College, and it is wellknown that it requires considerable finance to maintain such an
institution. If the State has to spend money on it, is it
unreasonable that it should so order the educational system
that the advantage of it would to some extent at least enure for
the benefit of the State? A concession given to the residents of
the State in the matter of fees is obviously calculated to serve
that end, as presumably some of them might, after passing out
of the College, settle down as doctors and serve the needs of
the locality. The classification is thus based on a ground which
has a reasonable relation to the subject-matter of the
legislation, and is in consequence not open to attack. It has
been held in The State of Punjab v. Ajaib Singh and another:
1953 S.C.R. 254 that a classification might validly be made on
a geographical basis. Such a classification would be eminently
just and reasonable, where it relates to education which is the
concern primarily of the State. The contention, therefore, that
the rule imposing capitation fee is in contravention of article 14
must be rejected.”
17. From the aforesaid, it is but clear that in Saurabh Chaudri, the
Constitution Bench found that the other Constitution Bench in D.P.Joshi had
rejected the contention that no provision could be made on the basis of
domicile/residence in relation to students taken in the medical colleges. In
other words, in Saurabh Chaudri, this Court relied upon the decision in
D.P.Joshi while holding that domicile/residence-based reservation was not
impermissible. Standing this exposition by the Constitution Bench of this
31
Court, it is difficult to conclude that domicile/residence-based
reservation/preference is a concept totally overthrown and jettisoned.
18. In the impugned order, it was noticed by the High Court that the
aforementioned paragraphs 29 to 32 in Saurabh Chaudri (supra) were sought
to be relied upon by the contesting respondents (some of them being the
appellants herein) to contend that preference on the basis of domicile is
permissible and does not offend the constitutional scheme of things. However,
after noticing such contention, the High Court switched over to the proposition
of institutional preference and extensively reproduced the passages from its
decision in Dr. Chahat Bhatia (supra). The High Court thereafter referred to
the stipulations in the questioned Clause 2B of the prospectus and found
basic flaws and shortcomings in the same. Having said so, the High Court
proceeded to observe that even if such a reservation (i.e., domicile/residencebased reservation) was possible, it would have no hesitation in saying that the
questioned Clause in the prospectus was unsustainable. Thereafter, the High
Court observed that this Court in Saurabh Chaudri and Dr. Pradeep Jain has
clearly laid down that preference on the basis of residence is to be deprecated
in the matters of admission in PG Medical Courses; and reproduced
paragraph 46 as also paragraph 1 in Saurabh Chaudri while observing that
the conclusion in Saurabh Chaudri was the same as the one accorded in Dr.
Pradeep Jain13. In the process of such discussion and reasoning, the High
13 The other referred passages in the decision of the High Court relate to the issue concerning
institutional preference; and the conclusion of the Constitution Bench indicative of its accord with the
law laid down in Dr. Pradeep Jain had only been in regard to the institutional preference where the
Constitution Bench finally noticed and observed as under:
“67. This Court may therefore notice the following:
32
Court has not even touched the contention that in view of the aforesaid
answer by the Constitution Bench, preference on the basis of domicile was not
entirely impermissible; and seems to have clearly missed out the import of the
other answer by the Constitution Bench in Saurabh Chaudri, as occurring in
the above-quoted paragraphs 29 to 32.
19. It appears that for the Constitution Bench in Saurabh Chaudri having
largely approved the observation in Dr. Pradeep Jain’s case in relation to the
question of institutional preference, the High Court has assumed that all the
observations in Dr. Pradeep Jain stood ipso facto approved. True it is that in
Dr. Pradeep Jain, a three-Judge Bench of this Court stated its total
disapproval of domicile/residence-based reservation in PG Medical Courses14
(i) The State runs the universities.
(ii) It has to spend a lot of money in imparting medical education to the
students of the State.
(iii) Those who get admission in postgraduate courses are also required to
be paid stipends. Reservation of some seats to a reasonable extent, thus,
would not violate the equality clause.
(iv) The criterion for institutional preference has now come to stay. It has
worked out satisfactorily in most of the States for the last about two
decades.
(v) Even those States which defied the decision of this Court in Dr Pradeep
Jain case had realized the need for institutional preference.
(vi) No sufficient material has been brought on record for departing from this
well-established admission criterion.
(vii) It goes beyond any cavil of doubt that institutional preference is based
on a reasonable and identifiable classification. It may be that while working
out the percentage of reservation invariably some local students will have
preference having regard to the fact that domicile/residence was one of the
criteria for admission in MBBS course. But together with the local students,
15% students who had competed in all-India entrance examination would
also be getting the same benefit. The percentage of students who were to
get the benefit of reservation by way of institutional preference would further
go down if the decision of this Court in Dr Pradeep Jain case is scrupulously
followed.
(viii) Giving of such a preference is a matter of State policy which can be
invalidated only in the event of being violative of Article 14 of the Constitution
of India.
(ix) The students who would get the benefit of institutional preference being
on identifiable ground, there is hardly any scope for manipulation.”
14 In Dr. Pradeep Jain, total disapproval of domicile/residence-based reservation in PG Medical
Courses was stated in the following:-
33
but such observations in Dr. Pradeep Jain, when read with reference to
aforesaid paragraphs 29 to 32 of the decision in Saurabh Chaudri, the
inevitable result is that domicile/residence-based reservation has not been
taken as an anathema altogether to these admission processes.
20. At this juncture, we may also briefly take note of the other decisions
cited and relied upon in these matters.
20.1. The other decisions relied upon by the respondents proceeded on their
own facts and the particular prescription of reservation was found invalid for its
own shortcomings. So far the decisions in Jagdish Saran, Dr. Pradeep Jain
and Magan Mehrotra are concerned, as noticed, they were rendered before
the decision by the Constitution Bench in Saurabh Chaudri.
20.2. In Nikhil Himthani (supra) the State of Uttarakhand had provided that
only such MBBS pass-outs from Government Colleges of Uttarakhand who
“22…..We are therefore of the view that so far as admissions to postgraduate courses, such as MS, MD and the like are concerned, it would be
eminently desirable not to provide for any reservation based on residence
requirement within the State or on institutional preference. But, having regard to
broader considerations of equality of opportunity and institutional continuity in
education which has its own importance and value, we would direct that though
residence requirement within the State shall not be a ground for reservation in
admissions to post-graduate courses, a certain percentage of seats may in the
present circumstances, be reserved on the basis of institutional preference in the
sense that a student who has passed MBBS course from a medical college or
university, may be given preference for admission to the post-graduate course in
the same medical college or university but such reservation on the basis of
institutional preference should not in any event exceed 50 per cent of the total
number of open seats available for admission to the post-graduate course. This
outer limit which we are fixing will also be subject to revision on the lower side by
the Indian Medical Council in the same manner as directed by us in the case of
admissions to the MBBS course. But, even in regard to admissions to the postgraduate course, we would direct that so far as super specialities such as neurosurgery and cardiology are concerned, there should be no reservation at all even
on the basis of institutional preference and admissions should be granted purely on
merit on all-India basis.”
(underlining supplied)
34
were admitted to the MBBS Course through Uttarakhand State PMT would be
eligible, implying that the candidates applying through All India PMT would not
be eligible. Further, it was also provided that MBBS pass-outs from the
colleges outside State would be eligible only if they were domicile of State of
Uttarakhand and selected through MBBS in other States through All India
PMT or through Uttarakhand State PMT. In that context, this Court said that no
preference could be given to the candidates on the basis of domicile to
compete for institutional quota of the State.
20.3. In Vishal Goyal as also in Dr. Kriti Lakhina (supra) only ‘a candidate of
Karnataka origin’ was provided to be eligible to appear for entrance test; and
the expression had been defined in such a manner so as to exclude a
candidate who had otherwise completed MBBS or BDS in an institution in the
State of Karnataka. Such a stipulation was not approved for being in conflict
with the decision in Pradeep Jain’s case. In Vishal Goyal’s case, this Court
observed as under:
“11. Mr Mariarputham is right that in Saurabh Chaudri v. Union
of India this Court has held that institutional preference can be
given by a State, but in the aforesaid decision of Saurabh
Chaudri, it has also been held that decision of the State to give
institutional preference can be invalidated by the court in the
event it is shown that the decision of the State is ultra vires the
right to equality under Article 14 of the Constitution. When we
examine sub-clause (a) of Clause 2.1 of the two Information
Bulletins, we find that the expression “A candidate of Karnataka
origin” who only is eligible to appear for entrance test has been
so defined as to exclude a candidate who has studied MBBS or
BDS in an institution in the State of Karnataka but who does not
satisfy the other requirements of sub-clause (a) of Clause 2.1 of
the Information Bulletin for PGET-2014. Thus, the institutional
preference sought to be given by sub-clause (a) of Clause 2.1
35
of the Information Bulletin for PGET-2014 is clearly contrary to
the judgment of this Court in Pradeep Jain case.”
20.4. In Satyabrata Sahoo (supra), there were two categories of candidatesdirect and in-service. In direct category, students were to be selected strictly
on the basis of inter-se academic merit, as determined by a competitive test
whereas in-service was a restricted category of candidates who had put in at
least three years’ service in remote and difficult areas. 87 seats were available
for in-service candidates and 86 for direct category. The seats in direct
category were also reserved for members of SC/ST communities and also for
those SC/ST candidates who had migrated from their State of origin subject to
certain conditions. Under the category of direct candidates, there was an
additional weightage for candidates who were in employment of Government
of Odisha/Government of Odisha undertaking/Government of India/Public
Undertaking located in Odisha and had worked in rural/tribal/backward areas.
Additional weightage of 10% of the marks, up to maximum of 30% of the
marks obtained, for each year of service rendered in remote or difficult areas
was provided to the candidates applying in direct category. While dealing with
such stipulations, it was pointed out that weightage was available only for inservice category, to which 50% seats for PG admission had already been
earmarked. The Court was of the view that on the strength of that weightage,
the encroachment or inroad or appropriation of seats earmarked for open
category candidates (direct admission category) would affect the candidates
who compete strictly on the basis of the merit; and there could be no
36
encroachment from one category to another. Hence, the candidates of inservice category could not encroach upon the open category and vice-versa.
20.5. The aforesaid decisions proceed on their own facts but it is difficult to
cull out that domicile/residence-based reservation is altogether disapproved.
However, the manner of providing such domicile/residence-based reservation
would always remain subject to the requirements of rationality and
reasonableness; and cannot be approved if found irrational or arbitrary, as had
been the matters in Vishal Goyal and Dr. Kriti Lakhina (supra).
21. As regards the decision in Yatinkumar’s case (supra), suffice it to notice
that therein, a three-Judge Bench of this Court referred to several decisions
including that in Saurabh Chaudri and reiterated that institutional preference
has been consistently approved and permitted in the PG Medical Courses.
However, one of the contentions urged before the Court had been that with
introduction of NEET, the purpose for which institution preference was held
permissible by this Court was no longer existing. This Court took note of the
scheme of these admissions and found that admissions to the PG Medical
Courses, even in case of institutional preference/reservation, were to be given
only on the basis of merit and the marks obtained in NEET. This decision in
Yatinkumar’s case does not relate to the core issue involved in the present
matters pertaining to domicile/residence-based reservation but the significant
aspect noticeable from this decision is that this Court has indubitably
reiterated the position that the admissions to the PG Medical Courses on any
37
quota or preference are to be made only on the basis of merits and marks
obtained in NEET.
22. At this juncture and for the observations occurring in Yatinkumar’s case
(supra) as regards NEET, we may also take note of the fact that the provisions
for uniform entrance examination to all Medical Educational Institutions at the
undergraduate level and post-graduate level came to be inserted in the Indian
Medical Council Act, 1956 (‘the Act of 1956’) in the form of Section 10D15
therein by way of Ordinance No. 4 of 2016 dated 24.05.2016 which was later
on replaced by the Indian Medical Council (Amendment) Act, 2016. The
background in which the said provision came to be inserted had been that the
Medical Council of India and the Dental Council of India issued notification
dated 21.12.2010 amending the existing statutory regulations to provide for a
single National Eligibility-cum-Entrance Test (NEET) for admission to the
MBBS/BDS courses. The said notifications were struck down in the case of
Christian Medical College, Vellore v. Union of India: (2014) 2 SCC 305.
However, the said decision was recalled by the order dated 11.04.2016 in
Review Petition (C) Nos. 2159-2268 of 2013. Several features related to the
professional unaided minority and non-minority educational institutions as also
15 Section 10D as inserted to the Indian Medical Council Act, 1956 reads as under:
“10D. There shall be conducted a uniform entrance examination to all medical
educational institutions at the undergraduate level and post-graduate level through such
designated authority in Hindi, English and such other languages and in such manner as
may be prescribed and the designated authority shall ensure the conduct of uniform
entrance examination in the aforesaid manner:
Provided that notwithstanding any judgment or order of any court, the provisions of
this section shall not apply, in relation to the uniform entrance examination at the
undergraduate level for the academic year 2016-17 conducted in accordance with any
regulations made under this Act, in respect of the State Government seats (whether in
Government Medical College or in a private Medical College) where such State has not
opted for such examination.”
38
the medical and dental education and healthcare systems came to be
examined and pronounced upon by a Constitution Bench of this Court on
02.05.2016 in the case of Modern Dental College and Research Centre
and Ors. v. State of Madhya Pradesh and Ors.: (2016) 7 SCC 353. That
had been the background in which Section 10D came to be introduced to the
Act of 1956 w.e.f. 24.05.2016. The observations in the said decision in
Modern Dental College as also the effect of the fact that the admissions to PG
Medical Courses are only based on the merit obtained in NEET also require
consideration vis-a-vis domicile/residence-based reservation.
23. On the other side of spectrum, we may also observe that the
generalised and blanket prohibition on domicile/residence-based reservation
may not be workable in relation to the State Quota seats of PG Medical
Courses. As noticed, the fundamental fact remains that all the admissions to
the Medical Courses, be it All India Quota or be it the State Quota, are made
on the basis of ranks obtained in NEET and not otherwise16. 50% of the seats
are assigned to the States/Union Territories as being the State Quota seats.
As noticed, different States and Union Territories have made different
provisions for filling up these State Quota seats. The institutional preference,
that has also been held permissible in the decisions of this Court, obviously
comes into play in relation to such State Quota seats. However, even when
institutional preference carries a major or prominent role in relation to such
State Quota seats, varying provisions have also been made by different
States/UTs with reference to domicile/residence, seemingly for the purpose of
16 Subject to the provisions for reservations in relation to specified class of persons.
39
ensuring that the candidates belonging to a particular State/UT would be
available for rendering service in that State/UT after post-graduation.
23.1. The peculiar feature in relation to the State Quota seats is that if some
provision as regards domicile/residence-based reservation is not made, the
only other method of filling up these State Quota seats would be by way of
institutional preference. This would effectively result in entire of the State
Quota seats going to institutional preference alone. Now, if the entire State
Quota seats are provided for institutional preference alone, the consequence
would be that only the candidates of the medical institutions in the State/UT
would be filling up the State Quota seats; and such a consequence may not
be permissible at all.
23.2. Moreover, the unique situation in relation to UT Chandigarh is that it has
only one Medical College. Thus, the dispensation in question, as provided by
UT Chandigarh and its Medical College and as construed by High Court, if
given effect to, would inevitably result in cornering all the State Quota PG
seats by the students of that solitary Medical College alone. In the alternative,
if only 50% of State Quota seats are to be given to that Medical College, the
remaining 50% of State Quota seats would again fall in the pool of All India
Quota because there is no other mode of filling up these seats. We find it
difficult if either of such consequences could be countenanced.
23.3. It is also noteworthy that even as per the instructions issued by the
examining body, the State Quota seats could be filled up by the States, inter
alia, with reference to the domicile. In the given scenario, it is again difficult to
40
accept that domicile/residence-based reservation, as provided for filling up of
the State Quota open seats, be held invalid altogether.
24. Before summing up and making reference, we may observe in the passing
that in regard to the case at hand, the High Court has indicated several
reasons for its disapproval of the stipulations made in impugned Clause 2B of
the prospectus in question. Prima facie, it appears that even if
domicile/residence-based reservation in admission to PG Medical Courses is
held permissible, the mode and modalities for its application would still require
further examination because it remains questionable if such reservation could
be applied by way of such stipulations, as made in the impugned Clause 2B of
the prospectus in question. Having said so and for the order proposed to be
passed in these matters, we do not find it necessary to enter into microscopic
analysis of the sub-clauses pertaining to domicile/residence-based reservation
as occurring in the impugned Clause 2B of the prospectus in question and
would leave such questions open to be determined on the basis of answers to
the root questions by the Larger Bench.
Summation and Reference
25. For what has been discussed hereinabove, in our view, the question as
to whether providing for domicile/residence-based reservation, particularly in
admission to PG Medical Courses, is constitutionally permissible as also its
corollaries, including the mode and modalities of its implementation (if
permissible), more particularly in relation to the State/UT having only one
41
Medical College, need to be examined by a Larger Bench of this Court for
authoritative pronouncement.
26. Accordingly we would propose the following questions to be examined
by a Larger Bench of this Court :
1. As to whether providing for domicile/residence-based reservation
in admission to “PG Medical Courses” within the State Quota is
constitutionally invalid and is impermissible?
2. (a) If answer to the first question is in the negative and if
domicile/residence-based reservation in admission to “PG Medical
Courses” is permissible, what should be the extent and manner of
providing such domicile/residence-based reservation for admission to
“PG Medical Courses” within the State Quota seats?
(b) Again, if domicile/residence-based reservation in admission to
“PG Medical Courses” is permissible, considering that all the
admissions are to be based on the merit and rank obtained in NEET,
what should be the modality of providing such domicile/residencebased reservation in relation to the State/UT having only one Medical
College?
3. If answer to the first question is in the affirmative and if
domicile/residence-based reservation in admission to “PG Medical
Courses” is impermissible, as to how the State Quota seats, other than
the permissible institutional preference seats, are to be filled up?
42
27. The matters be placed before Hon’ble the Chief Justice of India for
constitution of appropriate Larger Bench. The interim orders passed in these
matters shall continue until further orders.
……………………………J.
(A.M. KHANWILKAR) 1
………………………………J.
(DINESH MAHESHWARI) 1
New Delhi
Dated: 09th December, 2019
43

It is well settled that no right accrues to an applicant until the application for approval is considered and sanctioned. The first respondent has given the proposal for revised building plan under Regulation 36 with a view to avail the benefit of Premium FSI. As pointed out earlier, the process of grant of Premium FSI is completed only after the grant of approval by the Government. Regulation 36 clearly provides that the Premium FSI shall be allowed in specific areas with the approval of the Government and the approval of the Government therefore is mandatory. Only when the Government grants approval, the right would accrue to the builder and not before that. Therefore, the date of approval is the crucial date.


It is well settled that no right accrues to an applicant until the application for approval is considered and sanctioned. The first respondent has given the proposal for revised building plan under Regulation 36 with a view to avail the benefit of Premium FSI. 
As pointed out earlier, the process of grant of Premium FSI is completed only after the grant of approval by the Government.
Regulation 36 clearly provides that the Premium FSI shall be allowed in specific areas with the approval of the Government and the approval of the Government therefore is mandatory. Only when the Government grants approval, the right would accrue to the builder and not before that. Therefore, the date of approval is the crucial date.



REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 9336 OF 2019
(Arising out of SLP(C) No.35685 of 2016)
CHENNAI METROPOLITAN DEVELOPMENT
AUTHORITY REPRESENTED BY ITS
MEMBER SECRETARY ...Appellant
VERSUS
D. RAJAN DEV AND OTHERS …Respondents
J U D G M E N T
R. BANUMATHI, J.
Leave granted.
2. This appeal arises out of the impugned judgment dated
03.08.2016 passed by the Division Bench of the High Court of
Madras in W.A. No. 2376 of 2013 filed by the first respondent in and
by which the Division Bench set aside the order of Single Judge and
allowed the writ appeal thereby directing the appellant Chennai
Metropolitan Development Authority (CMDA) to calculate the
Premium FSI charges at the rate prevalent as on the date of filing of
application by the first respondent Rajan Dev.
1
3. Respondent No.1 is a developer carrying on construction
activities under the name and style of M/s. Ben Foundation. He
submitted an application dated 07.05.2009 for planning permission
to construct a residential-cum-shopping building at Survey Nos.
223, 224 and 225, Padi Village, Padi Kuppam Road, Chennai for
196 dwelling units. He proposed construction of Block A – Stilt
floor(part) + GF(part) + 6 floors + 7th floor part; Block B and C – Stilt
+ 6 floors and Block D – Stilt + 7 floors with floor area of 14082.26
sq.mt. and height of 22.80 mt. The planning permission was granted
by the appellant CMDA on 01.07.2009. Initially, the sanction was
mistakenly accorded for 14889 sq.mts. (1.84 FSI) instead of 14164
sq.mts. (1.75 FSI). The excess area for which sanction was wrongly
granted is 725 sq.mts. While the construction was in progress, on
09.09.2009 vide G.O.Ms.No.163-Housing and Urban Development,
respondent No.2-Government of Tamil Nadu introduced a scheme
called “Premium FSI Scheme”, wherein the Government permitted
any builder willing to pay FSI charges to increase FSI above the
normally permitted FSI. Additional benefit by way of Premium FSI
accrued to the developer is related to the proportionate land extent.
As per the guidelines for Premium FSI, the amount payable by the
applicant towards the Premium FSI charge shall be equivalent to
the cost of the proportionate land as per the Guideline value of the
2
Registration Department. On 04.05.2011, the first respondent made
an application along with revised proposal for permission to have
additional FSI area of 11,860 sq.ft. (= 1102 sq. mt.) under the
“Premium FSI Scheme” for extra fourteen dwelling units i.e. one
floor each in two blocks. The said application was returned by the
appellant on 10.02.2012 with the direction to furnish revised plan for
rectifying sixteen defects as pointed out by the appellant. The first
respondent submitted revised plans on 24.02.2012. The appellantCMDA vide its letter dated 30.03.2012 forwarded the revised plan to
the Government seeking to accord approval to the recommendation
of the Multi-storeyed building panel and for issue of planning
permission. In the meantime, the State Government revised the
guideline value of the land w.e.f. 01.04.2012.
4. While the application of the first respondent for revised
proposal was pending, the guideline value of the land was revised
w.e.f. 01.04.2012 from Rs.1,650/- per sq.ft. to Rs.5,000/- per sq.ft.
for the area which the first respondent has put up construction.
After inspection of the site and recommendation of the multistoreyed building panel, on 29.05.2012, the Government granted
approval for the Premium FSI. Pursuant to the sanction granted by
the Government, the appellant-CMDA vide letter dated 02.07.2012
3
called upon the first respondent to remit “Premium FSI Charges”
quantified at Rs.7,96,50,000/- for 1479.81 sq.mts. of the land area
based on the revised guideline value of the property as revised
w.e.f. 01.04.2012 by the Government and as provided at the time of
the approval for the proposed construction.
5. Vide letter dated 19.07.2012, the first respondent raised
objections to the aforesaid calculation and also as regards the area.
The first respondent submitted that the first respondent originally
proposed to construct 14,889 sq.mts. of built up area of an extent of
land of 8093.64 sq.mts. It was stated that the projected FSI at 1.74
by adopting the total built up area was calculated as 14089 sq.mts.
as against 14,889 sq.mts. and the same was a human error and the
same led to all the confusion. The first respondent has also raised
objection stating that he made the application during May, 2011
itself and that he may be allowed to make payment of “Premium FSI
Charges” by adopting the guideline value existed on both the dates
of their application (04.05.2011) and the approval by the CMDA
panel (30.03.2012). In the representation, the first respondent
stated that they are ready to pay the “Premium FSI Charges” for
both the projected built up area of 800 sq.mt. in the already
approved plan and for the proposed built up area of 1102 sq.mts.
4
(proposed extra FSI of 0.24) by adopting the guideline value existed
on the date of their application i.e. 04.05.2011. The said
representation was rejected by the CMDA vide letter dated
31.08.2012. The appellant by its letter dated 19.07.2012 modified
the revised “Premium FSI Charges” for 1479.81 sq.mts. of the land
area from Rs.7,96,50,000/- to Rs.7,61,40,000/-. By the time the
plan was sanctioned, the guideline value had increased from
Rs.1,650/- per sq.ft. to Rs.5,000/- per sq.ft. As per the revised
guideline, the Premium FSI charges were calculated at the rate of
Rs.5,000/- per sq.ft. and the same was quantified at
Rs.7,61,05,480/-.
6. The first respondent made further representation dated
14.12.2012 requesting the appellant-CMDA to calculate the
“Premium FSI Charges” taking into account the guideline value
prevailing as on the date on which the application was submitted
and not to levy “Premium FSI Charges” as per the revised guideline
value. The first respondent also requested to deduct all balcony
and duct wall area which is within the limit of 10% allowance. The
representation made by the first respondent requesting for reduction
of “Premium FSI Charges” was rejected by the appellant-CMDA by
order dated 19.04.2013, affirming its earlier order dated 31.08.2012.
5
By its letters dated 23.05.2013 and 14.06.2013, first respondent
sought for further thirty days’ time for remitting the Premium FSI
charges as demanded by the appellant. By communication dated
19.06.2013, the appellant-CMDA granted time till 15.07.2013 to pay
Premium FSI charges.
7. After so taking time, the first respondent filed the writ petition
in WP No.18238 of 2013 before the Madras High Court. During the
pendency of the writ petition, construction of 196 dwelling units was
completed and a partial completion certificate dated 17.06.2013
was granted. The learned Single Judge dismissed the writ petition
by holding that the first respondent is liable to pay the “Premium FSI
Charges” as per the guideline value prevailing on the date of
approval of the plan. The learned Single Judge held that the builder
would not acquire any right by merely submitting application for
building plan and the right to the builder would accrue only after the
approval of the plan. The learned Single Judge also held that there
was no undue delay on the part of CMDA or the second
respondent-Government in disposing of the application of the first
respondent.
8. Being aggrieved by the dismissal of the writ petition, the first
respondent preferred the writ appeal before the Division Bench
6
which came to be allowed by the impugned judgment. Relying upon
Union of India and another v. Mahajan Industries Ltd. and another
(2005) 10 SCC 203, the Division Bench held that the appellantCMDA is entitled to calculate levy of “Premium FSI Charges” taking
into account the guideline value prevalent as on the date of the
application for approval of the additional construction and not from
the date on which the approval is being granted. During the
pendency of the writ appeal, an amount of Rs.3,80,00,000/- was
deposited by the first respondent pursuant to the order dated
17.02.2014 passed by the Division Bench. A provisional completion
certificate dated 16.10.2014 was granted for a total of 210 dwelling
units. Being aggrieved, the appellant-CMDA has preferred this
appeal.
9. Mr. Jayanth Muthuraj, learned Senior counsel appearing for
the appellant-CMDA submitted that under the “Premium FSI
Scheme”, the application was returned for rectification of defects on
10.02.2012 and the first respondent resubmitted the application on
25.02.2012. Placing reliance upon Chennai Metropolitan
Development Authority represented by its Member-Secretary and
another v. Prestige Estates Project Ltd. 2019 (10) SCALE 78, it was
submitted that the crucial date for determining the applicable rate for
7
Premium FSI Charges is the date on which the authority grants
planning permission. It was submitted that mere pendency of the
application or any payment made does not create any right under
law in favour of the applicant till his application is considered and
sanction is granted as laid down by the Supreme Court in Usman
Gani J. Khatri of Bombay v. Cantonment Board and others (1992) 3
SCC 455. The learned Senior counsel submitted that the
judgments relied upon by the Division Bench viz. Union of India and
others v. Dev Raj Gupta and others (1991) 1 SCC 63 and Union of
India and another v. Mahajan Industries Ltd. and another (2005) 10
SCC 203 are not applicable to the case in hand as both the
judgments deal with the application for conversion and not
application for building permission. The learned Senior counsel
further submitted that the first respondent being an experienced
builder with for more than three decades experience, is well aware
of the procedure to be followed in making an application seeking
planning permission, but had deliberately filed a defective
application and therefore, the first respondent is not right in
contending that there was delay on the part of the appellant-CMDA
in processing the application.
8
10. Per contra, reiterating the findings of the Division Bench, Mr.
K.V. Vishwanathan, learned Senior counsel appearing for the first
respondent submitted that as rightly held by the Division Bench that
the crucial date for determining Premium FSI has to be the date of
receipt of the application by the first respondent. It was submitted
that the first respondent has submitted the application for
permission to have additional FSI under the “Premium FSI Scheme”
way back on 04.05.2011 and the same was returned on 10.02.2012
by the appellant for rectifying the defects nearly after a delay of nine
months. It was further submitted that the application of the first
respondent was pending consideration for quite some time with the
appellant-CMDA and the Multi-Storeyed Building Panel discussed
the application of the first respondent and forwarded the proposal to
the Government with recommendation for approval even on
30.03.2012. The learned Senior counsel further submitted that the
Division Bench of the High Court rightly held that the FSI charges is
payable on the date of filing of the application for conversion and
not on the date of the approval and the impugned judgment
warrants no interference.
11. We have considered the submissions and carefully perused
the impugned judgment and other materials on record. The point
9
falling for consideration is whether the High Court was right in
holding that the Premium FSI charges are payable only as per the
pre-revised guideline value as on 04.05.2011 i.e. the date of filing of
application with revised plan, by the first respondent?
12. On 07.05.2009, the first respondent submitted an application
for construction of residential-cum-shopping complex at Padi
Village, Padi Kuppam Road, Chennai. The planning permission was
granted for the original plan by the appellant-CMDA on 01.07.2009.
When the construction was in progress, the Government of Tamil
Nadu introduced the “Premium FSI (Floor space Index) Scheme”
vide G.O.Ms.No.163, Housing and Urban Development (UD-I) dated
09.09.2009 as per which the Government permitted willing builders
to increase FSI above the normally permitted FSI subject to a
maximum of one relating the same to the road width parameters by
paying premium FSI charges.
13. Regulation 36 deals with “Premium FSI”, which reads as
under:-
“36. Premium FSI:- The Authority may allow Premium FSI over and
above the normally allowable FSI subject to a maximum of 1 (one)
relating the same to the road width parameters as follows:-
Serial
Number
Road width Premium FSI
(% of normally
allowable FSI)
(i) 18 meters and above
(60’ and above)
40%
10
(ii) 12 meters – below 18 meters
(40’ – below 60’)
30%
(iii) 9 meters – below 12 meters
(30’ – below 40’)
20%
The premium FSI shall be allowed in specific areas as may be notified,
subject to Guidelines and on collection of charge at the rates as may be
prescribed by the Authority with the approval of the Government. The
amount so collected towards the award of Premium FSI shall be remitted
into the Government account to be allotted separately for the purpose for
utilizing it for infrastructure development in that area as may be directed
by the Government.”
14. The first respondent sought to avail the benefits of Premium
FSI and submitted an application on 04.05.2011 seeking approval
of additional FSI under the Premium FSI Scheme. The said
application was returned by the appellant-CMDA on 10.02.2012 for
rectification of defects. Thereafter, on 24.02.2012, first respondent
submitted the revised plan after rectification of the defects.
15. The Multi-Storeyed Building Panel considered the revised
plan of the first respondent and the appellant-CMDA by its letter
dated 30.03.2012 forwarded the proposal to the Government with
recommendation for approval subject to the conditions indicated
thereon. In the meanwhile, the Registration Department revised and
notified the revised guideline value w.e.f. 01.04.2012 as per which
the guideline value of Padi Kuppam Road was increased from
Rs.1,650/- per sq.ft. to Rs.5,000/- per sq.ft. On 29.05.2012, the
11
Government granted approval to the revised plan of the first
respondent. Based upon the revised guideline value, the appellantCMDA by its letter dated 02.07.2012 informed the first respondent
that the Premium FSI has been levied at Rs.7,96,50,000/-. The
same was later modified as Rs.7,61,40,000/-.
16. Learned Senior counsel for the respondent contended that
only the date of application for revised building plan has to be taken
into consideration and the first respondent cannot be levied with the
revised FSI Premium charges because of the time taken by CMDA
in processing the application. The learned Senior counsel mainly
relied upon the recommendation made by the appellant-CMDA to
content that pre-revised guideline would only be applicable for
calculation of the Premium FSI charges. The forwarding of the
revised proposal by the appellant-CMDA to the Government reads
as under:-
“AGENDA ITEM NO:2/203 FILE NO: C3(N)/6476/2011
Sub: CMDA – APU – MSB (North) Division – Planning
Permission Application for the revised approval for the
construction of Block A: Stilt/GF (Shop cum Parking) + 7
Floors; Block-B, C and D: Stilt + 7 Floors Commercial cum
Residential building with 210 dwelling units at T.S.No.113/2,
Block No.65, Ward I, Old S.No.224/1 (part) of Padi Village,
Padikuppam Road, Mogappair, Chennai – Applied by Thiru.
D. Rajan Dev – Recommended for Approval – Reg
12
The MSB Panel discussed the subject in detail and
recommended to forward the proposal to the Government
recommending for approval subject to the following conditions:
i) undertaking accepting conditions of NOCs to be obtained
before issue of Planning Permission; and
ii) undertaking to furnish IAF NOC before issue of completion
certificate to be obtained before issue of Planning
Permission.
 Sd./XXXX
 30.3.2012
MEMBER SECRETARY”
By reading of the above, it is seen that it is only forwarding of the
proposal to the Government with recommendation for approval of
the revised plan which is as per the procedure involved. Such
forwarding of the proposal to the Government with recommendation
for approval, does not create any right in favour of the respondent.
In terms of Regulation 36, Premium FSI shall be allowed in specific
areas as notified subject to guidelines with the approval of the
Government and on collection of charges at the rates as may be
prescribed by the authority. Thus, for the award of Premium FSI,
inter-alia the conditions “collection of charges at the rates as may be
prescribed by the authority” and “approval of the Government”, are
mandatory. The collection of FSI Premium charges is subject to the
guidelines. The revised guideline came into force w.e.f. 01.04.2012.
Be it noted that the first respondent’s application was considered
and finally approval was granted by the Government on 29.05.2012
13
only after revised guideline came into force. At the time of granting
approval by the Government on 29.05.2012, when the revised
guideline was in force, the High Court ought not to have held that
the guideline value as on 04.05.2011, that is, the date of application
of the first respondent, should be considered for the purpose of
calculating Premium FSI charges. The right would accrue to the first
respondent only after the Government grants approval to the
revised plan sanctioning the Premium FSI. Thus, the date on which
the approval was granted by the Government i.e. 29.05.2012 ought
to have been taken into consideration for calculating the Premium
FSI charges.
17. It is well settled that no right accrues to an applicant until the
application for approval is considered and sanctioned. The first
respondent has given the proposal for revised building plan under
Regulation 36 with a view to avail the benefit of Premium FSI. As
pointed out earlier, the process of grant of Premium FSI is
completed only after the grant of approval by the Government.
Regulation 36 clearly provides that the Premium FSI shall be
allowed in specific areas with the approval of the Government and
the approval of the Government therefore is mandatory. Only when
the Government grants approval, the right would accrue to the
14
builder and not before that. Therefore, the date of approval is the
crucial date.
18. Learned Senior counsel for the appellant has submitted that
the builder would not acquire any legal right by merely submitting an
application for approval of the building plan and the right would
accrue only after sanction of the revised plan by the Government. In
this regard, we may usefully refer to Usman Gani J. Khatri of
Bombay v. Cantonment Board and Others (1992) 3 SCC 455 which
has been referred to by the learned Single Judge in the order
passed in the writ petition wherein, the Supreme Court held as
under:-
“24. …….The petitioners did not acquire any legal right in respect of
building plans until the same were sanctioned in their favour after having
paid the total amount of conversion charges in lump sum or in terms of
sanctioned instalments and getting conversion of their land in freehold
tenure…….”.
19. As pointed out by the learned Single Judge, in Usman Gani,
the Supreme Court in order to explain the unsustainability of the
claim made by the builders has also explained a reverse case as
under:-
“24. ……..If we consider a reverse case where building regulations are
amended more favourably to the builders before sanctioning of building
plans already submitted, the builders would certainly claim and get the
advantage of the regulations amended to their benefit.”
15
Learned Single Judge has also referred to State of W.B. v. Terra
Firma Investments & Trading Pvt. Ltd. (1995) 1 SCC 125 and other
judgments wherein, the Supreme Court held that no right accrues to
the builder by mere submission of a plan for construction of a
building which has not been sanctioned by the competent authority.
20. In the impugned judgment, the High Court relied upon the
decision in Union of India and Another v. Mahajan Industries Ltd.
And Another (2005) 10 SCC 203 wherein, the Supreme Court had
followed the decision of the Delhi High Court in the case of Ansal &
Saigal Properties (P) Lts. bs. L & DO, holding that the crucial date
for calculating the conversion charges has to be the date of receipt
of application for conversion of land use. It is the submission of the
appellant that the decision in the said case is not applicable to the
case in hand as the said judgment deals with application for
conversion of land and not the application for building permission.
Apart from that, there was delay of more than three years in
deciding the said application. We find merit in the submission of the
appellant that the decision in Mahajan Industries is not applicable to
the facts of the present case. Though the application was filed on
04.05.2011 and resubmitted after rectification of defects on
24.02.2012, the Government approved the revised proposal only on
16
29.05.2012. In the meanwhile, the revised guideline value was
introduced for implementation w.e.f. 01.04.2012. As rightly held by
the learned Single Judge that the first respondent/builder does not
acquire any legal right until the plan is sanctioned.
21. Mere pendency of the application for planning permission
does not create a vested right in an applicant. Right accrues only
when the permission/sanction is granted by the
Government/concerned authorities. This is because planning
permission is accorded on the basis of scrutiny of application form
and the concerned documents. There is always possibility of an
application not meeting the requisite criteria for carrying out the
proposed development and being rejected. Until and unless an
application complete in all respect is approved, it remains a mere
application and no right can be claimed on the basis of such an
application. A proposal cannot be equated with an approval,
otherwise the later will lose all significance. The obvious logical
conclusion is that the right to an applicant accrues when the
permission has been granted. Further, as a corollary, it can be said
that the rates prevailing at the time of granting of permission are the
rates which an applicant has to pay. The respondent/applicant
cannot claim the benefit of the earlier guideline value existing prior
17
to the date when approval was granted by the government. In our
considered view, the respondent will have to pay FSI Premium
charges based on the guideline value as existing on the date of
grant of approval.
22. Learned Senior counsel for the appellant has placed reliance
upon Chennai Municipal Development Authority v. Prestige Estates
Projects Limited 2019 (10) Scale 78. In Prestige Estates, despite
the payment having been made by the builder on 28.03.2012, the
Supreme Court held that the developer is liable to pay Premium FSI
charges based on the revised guideline value which are applicable
post 01.04.2012. In Prestige Estates, after referring to Usman Gani
and other judgments, the Supreme Court held that the demand on
account of Premium FSI charges arises only upon the grant of
approval by the Government to avail Premium FSI. The ratio of the
decision in Prestige Estates is squarely applicable to the present
case. In the present case, since the sanction for revised plan was
granted by the Government on 29.05.2012, the first respondent in
the present case is liable to pay the Premium FSI charges based on
the revised guideline value which came into force w.e.f. 01.04.2012.
23. Learned Senior counsel for the first respondent inter-alia
contended that there was inordinate delay on the part of appellant18
CMDA in processing the application and the first respondent cannot
be burdened with extra charges on account of delay caused by the
appellant. Learned Senior counsel further submitted that the
application of the first respondent dated 04.05.2011 for revised
proposal was returned after nine months on 10.02.2012 and the
respondent cannot be blamed for the delay caused by the appellant
in processing the application of the first respondent. This contention
does not merit acceptance. The appellant-CMDA is a body
entrusted with the task of examination and approval of multitude of
building applications throughout the planning area. That apart, the
appellant-CMDA is a single window system and it has to verify
various documents with the connected Departments at various
levels. The application was processed at various levels and it was
sent to the departments like police, Fire, etc. for clearance.
Considering the fact that different departments and agencies are
involved with the process of approval, we feel that, there was no
undue delay on the part of the appellant-CMDA or the State
Government. As rightly pointed out by the learned Single Judge, the
first respondent submitted the application after rectification of
defects only on 24.02.2012 and within a period of one month, the
application was placed before the meeting. Therefore, it cannot be
said that there was undue delay on the part of the appellant-CMDA
19
or Government to consider the first respondent’s application for
approval of the revised plan.
24. In the impugned judgment, the Division Bench has relied upon
Union of India and Others v. Dev Raj Gupta and Others (1991) 1
SCC 63 and Mahajan Industries Limited. The ratio of those
decisions is not applicable to the case in hand as those decisions
relate to application for conversion of the land and not building
permission application. That apart, in those cases, there was a
delay of more than three years in deciding the application. In the
present case, as discussed above, there was no delay on the part of
the appellant-CMDA or the Government to consider the first
respondent’s application for approval.
25. As submitted by the learned Senior counsel for the appellantCMDA, the conduct of the first respondent is also to be taken note
of. After the levy of Premium FSI charges calling upon the first
respondent to pay a sum of Rs.7,61,40,000/-, the first respondent
submitted a representation on 19.07.2012 requesting to revise the
Premium FSI charges by considering the guideline value prevailing
as on the date of the application i.e. 04.05.2011. The said
representation was rejected by the appellant-CMDA by its letter
dated 31.08.2012 and the first respondent was directed to make
20
payment of Premium FSI Charges. The first respondent was also
informed that if the payment was not made within sixty days, the
application will be returned. The first respondent’s further
representation dated 14.12.2012 also came to be rejected.
Thereafter, by letters dated 23.05.2013 and 14.06.2013, the first
respondent had prayed for thirty days’ time for remitting the
Premium FSI charges as demanded by the appellant-CMDA. By
communication dated 19.06.2013, the first respondent was granted
time upto 15.07.2013 to pay Premium FSI charges. After so getting
extension of time, the first respondent filed writ petition before the
High Court challenging the order of CMDA dated 31.08.2012 and
prayed for quashing the demand. It is to be pointed out that the
learned Single Judge also commented on the conduct of first
respondent in obtaining extension of time to remit the Premium FSI
charges and thereafter, filing the writ petition before the High Court
challenging the demand.
26. The Division Bench did not keep in view the well settled
principle that no right accrued to the applicant-builder by mere filing
of application for approval and the right accrues only after approval
is granted by the Government/concerned authorities. The impugned
judgment is contrary to the well settled principle that the applicant
21
does not acquire any right under law till his application is considered
and sanctioned. Regulation 36 clearly provides that the Premium
FSI shall be allowed in specific areas only with the approval of the
Government. Unless and until the Government grants approval, no
right accrued to the first respondent. When the Government
sanctioned the approval on 29.05.2012, the Division Bench erred in
directing the appellant to calculate the FSI charges as per the
guideline value as on 04.05.2011. The impugned judgment is
therefore liable to be set aside.
27. In the result, the impugned judgment dated 03.08.2016
passed by the High Court of Madras in W.A. No.2376 of 2013 is set
aside and this appeal is allowed. The appellant-CMDA is at liberty to
recover the balance Premium FSI charges from the first respondent
in accordance with its regulations and rules. No costs.
………………………..J.
 [R. BANUMATHI]
………………………..J.
 [A.S. BOPANNA]
.………………………..J.
 [HRISHIKESH ROY]
New Delhi;
December 11, 2019.
22

Wednesday, December 11, 2019

Public Premises Act would be equally applicable to the legislations made by the State legislature of the State of Punjab in respect of the two enactments under consideration, that is, the East Punjab Rent Act and the Religious Premises Act doubt, in this decision it has been observed that the underlying reason for exclusion of property belonging to the from the ambit of the Rent Control Act is that the government while dealing with the citizens in respect of property belonging to it would not act as a private landlord but would act in public interest, albeit this reasoning would equally apply to “religious institutions” as defined. The religious institutions as held are meant to carry out public purpose and the legislature can proceed accordingly that the religious institutions would act in public interest for which they were established. valid grants, leases and allotments are not construed and treated as unauthorised occupation. It is only when the terms of the grant, lease or allotment are not adhered to or have been determined or the period of allotment, lease or grant as fixed has come to an end, that the person in occupation is treated to be in unauthorised occupation. This is a pre-condition which confers the right on the religious institution to seek eviction of a person in unauthorised occupation of the religious premises. Further, an order passed by the Collector is appealable before the Commissioner and if still aggrieved, a tenant can invoke the writ jurisdiction of the High Court, as mentioned above.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 3674 OF 2009
HARBHAJAN SINGH ETC. ..... APPELLANT(S)
VERSUS
STATE OF PUNJAB AND OTHERS ..... RESPONDENT(S)
J U D G M E N T
SANJIV KHANNA, J.
The afore-captioned Civil Appeal impugns the judgment
dated 6th July 2006 passed by the High Court of Punjab and
Haryana which dismissed five writ petitions challenging the vires
of the Punjab Religious Premises and Land (Eviction and Rent
Recovery) Act, 1997 (‘Religious Premises Act’, for short).
2. The appellants before us are tenants in occupation of shops
located in Gurudwara Singh Sabha, a gurudwara at Kukar Majra,
G.T. Road, Mandi Gobindgarh, District Fatehgarh Sahib, Punjab.
The appellants claim that they were inducted as tenants during the
period 1965-69 by Gurudwara Singh Sabha. However, no formal
lease or agreements were executed and albeit, over a period of
Civil Appeal No. 3674 of 2009 Page 1 of 29
time, rents were progressively increased. The appellants further
claim that they are small businessmen carrying on trade primarily
connected with steel industry, while one of the appellants runs a
dhaba. By the letter dated 2nd March 1978, the appellants were
informed that the affairs of the gurudwara had come under the
control of Shiromani Gurdwara Parbandhak Committee (‘SGPC’
for short) and they should, therefore, pay the rent to SGPC. It is
alleged that the appellants have been paying rent to SGPC or the
manager of the gurudwara but receipts have not been regularly
issued.
3. In the year 1997, SGPC had filed an eviction petition against one
of the appellants, Harbhajan Singh, under Section 13 of the East
Punjab Urban Rent Restriction Act, 1949 (‘East Punjab Rent Act’,
for short) on two grounds, viz., (i) failure to pay rent, and (ii) SGPC
needed the property for construction of shops. Harbhajan Singh
had, thereafter, deposited arrears of rent on the first date of
hearing. The eviction proceedings, however, had remained
pending and were not decided.
4. On 29th January 1998, the Religious Premises Act was enforced,
and thereby introduced a summary procedure for evicting
unauthorised occupants from the premises/property belonging to
the religious institutions. Thereafter, SGPC had filed ejectment
Civil Appeal No. 3674 of 2009 Page 2 of 29
petitions under the Religious Premises Act before the Collector for
eviction of the appellants stating that the appellants were in
unauthorised occupation. The appellants, on receipt of notices
from the Collector under Section 4 of the Religious Premises Act,
had filed the writ petitions challenging the vires of the enactment
before the High Court, which by the impugned judgment have
been dismissed. The primary challenge before the High Court
was to the explanation to clause (a) to Section 3 of the Religious
Premises Act on the ground that the provision creates an
unintelligible classification to the disadvantage of the tenants who
are otherwise entitled to equal protection as other tenants under
the East Punjab Rent Act.
5. The pleas raised by the appellants were rejected by the Division
Bench of the High Court after referring to the object and purpose
behind the impugned enactment, that is, to preserve the property
of religious institutions, by observing that public at large has an
inherent interest in the “religious institutions” which were prone to
maladministration and mismanagement. Referring to the definition
of “unauthorised occupants”, it was observed that a person who is
in occupation of the premises belonging to a “religious institution”
on a valid allotment, lease or grant is not to be treated as an
“unauthorised occupant” for the period of allotment, lease or grant.
Civil Appeal No. 3674 of 2009 Page 3 of 29
The explanation states that mere payment of rent by the tenant
who is in unauthorised occupation shall not raise any presumption
that such person had entered into possession as an allottee,
lessee or under a grant. Referring to the detailed and
comprehensive procedure for eviction under Sections 4 and 5 of
the Religious Premises Act, it was held that the Collector has to be
satisfied that the opposite party was in “unauthorised occupation”
and only thereupon an eviction order can be passed after
following the due procedure. A person aggrieved against the
order passed by the Collector can file an appeal before the
Commissioner under Section 8 of the Act. Referring to the factual
matrix, the High Court has observed that all contentions on merits
should be raised before the authorities under the Religious
Premises Act, in accordance with law.
6. The primary contention raised by the appellants before us is that
as tenants they are entitled to protection against eviction under
the East Punjab Rent Act, which protection it is submitted cannot
be withdrawn and taken away under the Religious Premises Act.
Further, the definition of “unauthorised occupants”, as a result of
explanation to clause (a) of Section 3, is highly unjust and unfair
as a tenant who has been paying rent over a long period is
deemed to be in “unauthorised occupation” because of the
Civil Appeal No. 3674 of 2009 Page 4 of 29
termination of the lease, licence or grant, or the time stipulated in
the lease, license or grant has come to an end. This it is
submitted is unjust and unfair. The Religious Premises Act creates
an artificial classification as tenants of land and buildings
belonging to or owned by “religious institutions” are no longer
entitled to protection under the East Punjab Rent Act though such
protection continues to be available to other tenants. Expansion
or construction of a new building by a religious institution as was
pleaded by SGPC in their eviction petition under the East Punjab
Rent Act would not justify eviction. There is no public purpose or
objective in enacting the law, that is, the Religious Premises Act,
which has become a calculable device and means to increase
income of the religious institutions. This Court in Ashoka
Marketing Ltd. and Another v. Punjab National Bank and
Others1
 had examined and rejected the challenge to the vires of
the Public Premises (Eviction of Unauthorised Occupants) Act,
1971 (‘Public Premises Act’, for short) after recording that the
property belonging to the government would fall under a separate
class and that the government, while dealing with the citizens in
respect of the property belonging to it, would not act for its own
purpose as a private landlord but would act in public interest. This
is a crucial distinction between the government and private
1
(1990) 4 SCC 406
Civil Appeal No. 3674 of 2009 Page 5 of 29
landlords and, therefore, for the same reasoning in inverse, the
present appeal should be allowed as the Religious Premises Act
creates an artificial distinction and discriminates against the
tenants of “religious institutions”, though “religious institutions” as
landlords are not a separate class. Thus, the Religious Premises
Act should be declared unconstitutional and illegal as it violates
Article 14 of the Constitution.
7. The respondents, namely, the State of Punjab and also SGPC,
have contested the said submissions and contentions. Their
submissions and contentions would be noticed in the subsequent
portion and in our reasoning below.
8. The East Punjab Rent Act was enacted in the year 1949, soon
after the Partition, with a view to protect tenants and to curtail the
right of the landlords to seek eviction notwithstanding the contract
under the provisions of the Transfer of Property Act, 1882,
(“Transfer of Property Act”, for short) which is a general enactment
regulating landlord and tenant relationships. There cannot be any
doubt that the State legislature, that is, the Legislative Assembly of
the State of Punjab is entitled to enact the Religious Premises Act,
despite the fact that they had enacted the East Punjab Rent Act.
We must accept and take judicial notice by acknowledging that the
State legislature while enacting the Religious Premises Act was
Civil Appeal No. 3674 of 2009 Page 6 of 29
aware that it has enacted East Punjab Rent Act, an existing
statute governing landlord and tenant relationship. However, the
State legislature in its wisdom has deemed it appropriate to enact
a law in respect of land and buildings belonging to “religious
institutions”. The vires of the Religious Premises Act, a special
enactment concerning landlord and tenant relationships, cannot
be challenged on the ground that there are already two other
enactments governing general landlord and tenant relationships
(Transfer of Property Act and East Punjab Rent Act). The
Constitution confers the power and authority on the State to enact
two separate enactments on a similar subject if they seek to
achieve different objectives and protect and preserve different
sets of rights and make necessary classification to serve such
varied ends. The Religious Premises Act, unlike the East Punjab
Rent Act and the Public Premises Act, concerns itself with the
administration of premises belonging to religious institutions and
seeks to regulate their rights as landlords vis-à-vis the tenants in
occupation. In this regard, reference can be made to the object
and purpose behind enacting the Religious Premises Act, which is
as follows:
“Since long various religious institutions have been
representing to the Government for vacation of their
premises under unauthorised occupation. On careful
thought being given by the Government, the State
Government is of the opinion that the religious
Civil Appeal No. 3674 of 2009 Page 7 of 29
institutions are facing a lot of difficulties in this behalf. It
is, therefore, expedient for the State Government to help
the religious institutions in getting their premises which
are under unauthorised occupation vacated through
summary proceedings. Hence, the Punjab Religious
Premises and Land (Eviction and Rent Recovery) Bill,
1996.”
9. Section 2(d) of the Religious Premises Act defines “religious
institution”. Section 2(e) defines ‘religious premises’ and Section 3
defines “unauthorised occupation of religious premises by a
person”. These provisions read as under:
“(d) "Religious Institution' means any gurudwara,
temple, church, mosque, temple of Jains or Budhas -
which is registered under the provisions of the
Societies Registration Act, 1860 (Central Act No. XXI of
1860) or is established under any statute and includes
any other place of worship by whatever name, it may
be called, which is registered as aforesaid or is
established under any statute;
(e) "religious premises", means any land whether used
for agricultural or non-agricultural purposes, or any
building or part of a building belonging to a Religious
Institution and includes, -
(i) the garden, grounds and out-houses, if any,
appertaining to such building or part of a building;
and
(ii) any fittings affixed to such building or part of a
building for the more beneficial enjoyment thereof;”
xxx
3. Unauthorised occupation of religious premises. - For
the purposes of this Act, a person shall be deemed to
be in unauthorised occupation of any religious
premises-
(a) where he has, whether before or after the
commencement of this Act, entered into possession
thereof otherwise than under and in pursuance of any
allotment, lease or grant; or
Civil Appeal No. 3674 of 2009 Page 8 of 29
(b) where he, being an allottee, lessee or grantee has,
by reason of the determination or cancellation of his
allotment, lease or grant in accordance with the terms
in that behalf therein contained, ceased, whether
before or after the commencement of this Act, to be
entitled to occupy or hold such religious premises; or
(c) where any person authorised to occupy any
religious premises has, whether before or after the
commencement of this Act, -
(i) sub-let, in contravention of the terms of allotment,
lease or grant, without the permission of the Religious
Institution, the whole or any part of such religious
premises; or
(ii) otherwise acted in contravention of any of the
terms, express or implied, under which he is authorised
to occupy such religious premises.
Explanation. - For the purpose of clause (a), a person
shall not merely by reason of the fact that he has paid
any rent be deemed to have entered into possession
as allottee, lessee or grantee.”
“Religious institution” means any gurudwara, temple, church,
mosque or temple of Jains or Buddhists which is registered under
the provisions of the Societies Registration Act or established
under any statute. It also includes any place of worship by
whatever name called which is registered as aforesaid or
established under any statute. The definition is clear and no
contention or issue is raised that the definition of the term
“religious institution” is vague or incomprehensible. Similarly, the
expression “religious premises” has been defined in clear terms to
mean land used for agricultural or non-agricultural purposes or
any building or part of the building belonging to a religious
institution. The definition clarifies that the expression “religious
premises” would include garden, ground and out-house or any
Civil Appeal No. 3674 of 2009 Page 9 of 29
fittings in the building or part of the building for more beneficial
enjoyment. The expression “unauthorised occupation” is of some
importance in view of the challenge and the contentions raised. A
person is deemed to be in unauthorised occupation of any
religious premises if he has, before or after commencement of the
Religious Premises Act, entered into possession of a land or
building belonging to a religious institution otherwise than under or
pursuant to any allotment, lease or grant. A person who enters
into possession of the land or building belonging to or owned by a
religious institution and has valid and subsisting allotment, lease
or grant is clearly not an unauthorised occupant. Such allottees,
lessees or persons in whose favour there is a grant, allotment or
lease that entitles the person to retain possession are fully
protected and cannot be evicted. In other words, primacy to the
terms of allotment, lease or grant is not interfered, and is duly
accorded. The terms of the allotment, lease or grant would be
binding. Clause (b) states that if the allotment, lease or grant has
been determined or cancelled whether before or after the
commencement of the Religious Premises Act, occupation of the
person would be treated as unauthorised occupation. Clause (c)
states that where a person is authorised to occupy any religious
premises, before or after commencement of the Religious
Premises Act, has sublet the religious premises in contravention of
Civil Appeal No. 3674 of 2009 Page 10 of 29
the terms of allotment, lease or grant, or otherwise acted in
contravention of the terms, express or implied, he shall be treated
as an “unauthorised occupant”. No contention, issue or objection
has been raised viz. clause (c) to Section 3. Explanation to
Section 3 states that for the purpose of clause (a), which makes
the term of allotment, lease or grant as a basis for determining
whether a person is in authorised or unauthorised occupation,
shall not be affected by the mere reason or the fact that such
person has paid rent and, therefore, is deemed to have entered
into possession as an allottee, lessee or guarantee. In other
words, payment of rent would not be a determinative and relevant
factor in deciding the issue and question of “unauthorised
occupation”. The tenure of allotment, lease or the grant and terms
and conditions as agreed or stated, and not mere payment of rent
would be the crucial and determinative criterion.
10. Under Section 4 of the Religious Premises Act, a religious
institution can make an application before the Collector if it is of
the opinion that any person is in unauthorised occupation of any
religious premises, situated within the Collector’s jurisdiction. The
Collector thereupon is required to issue notice in writing calling
upon the person to show-cause why the eviction order should not
be made. Sub-section (2) prescribes the requirement of a notice
Civil Appeal No. 3674 of 2009 Page 11 of 29
and sub-section (3) to Section 4 prescribes the manner in which
the notice is to be served. Under Section 5, the Collector is
authorised and is competent to pass an order of eviction after
considering the cause, if any, shown by the person to whom notice
under Section 4 has been issued and after examining the
evidence that may be produced by such person. The person in
occupation has to be given reasonable opportunity of being heard.
The statutory requirement is that the Collector should be satisfied
that the religious premises are in unauthorised occupation before
he can make the order of eviction. The Collector must also record
reasons. The Collector is required to pass an order within a
period of 45 days from the date of receipt of the application under
Section 4 and the order passed has to be affixed on the outer door
or on some other conspicuous part of the religious premises. If a
person fails to comply with the order of eviction within 30 days
from the date of the order, the Collector, or any other officer duly
authorised by him, can evict the person and deliver possession of
the religious premises to the religious institution. He is entitled to
use force as may be necessary. The tenant, if aggrieved, can file
an appeal against the Collector’s order before the Commissioner.
Thereafter, the tenant is entitled to also invoke the writ jurisdiction
of the High Court under Articles 227 and 226 of the Constitution of
India if the grievance still persists.
Civil Appeal No. 3674 of 2009 Page 12 of 29
11. The issue of whether the properties of the religious institutions for
the purpose of rent control legislations can be treated as a
separate category is no longer res integra as this aspect was
examined in several decisions where this Court has held that
separate classification of properties of religious institutions for rent
legislations will pass a challenge under Article 14 of the
Constitution. In State of Andhra Pradesh and Others v.
Nallamilli Rami Reddi and Others2
, this Court was faced with a
challenge to the validity of Section 82 of the Andhra Pradesh
Charitable and Hindu Religious Institutions and Endowments Act,
1987 which had cancelled the leases of tenants of properties
belonging to or given or endowed for the purpose of any charitable
or any religious institution or endowment falling under the
enactment, notwithstanding the prevailing tenancy laws in the
State of Andhra Pradesh, in order to augment the rents payable
for such properties which stood frozen on account of the tenancy
laws and since sale of such lands was not feasible. While
examining the question of religious institutions as a separate and
distinguishable class, this Court had expounded on the scope of
Article 14 of the Constitution and the kind of classification that
would stand the test of Article 14 of the Constitution, as under:
2 AIR 2001 SC 3616
Civil Appeal No. 3674 of 2009 Page 13 of 29
“8. What Article 14 of the Constitution prohibits is
“class legislation” and not “classification for purpose of
legislation”. If the legislature reasonably classifies
persons for legislative purposes so as to bring them
under a well-defined class, it is not open to challenge
on the ground of denial of equal treatment that the law
does not apply to other persons. The test of
permissible classification is twofold: (i) that the
classification must be founded on intelligible differentia
which distinguishes persons grouped together from
others who are left out of the group, and (ii) that
differentia must have a rational connection to the object
sought to be achieved. Article 14 does not insist upon
classification, which is scientifically perfect or logically
complete. A classification would be justified unless it is
patently arbitrary. If there is equality and uniformity in
each group, the law will not become discriminatory,
though due to some fortuitous circumstance arising out
of peculiar situation some included in a class get an
advantage over others so long as they are not singled
out for special treatment. In substance, the differentia
required is that it must be real and substantial, bearing
some just and reasonable relation to the object of the
legislation.”
Holding the above, this Court in Nallamilli Rami Reddi (supra)
had reversed the decision of the Division Bench of the Andhra
Pradesh High Court observing that religious institutions fall into a
separate category and land or property held by them have a
special character. Clearly, the tenants under a religious institution
would form a separate class by themselves and such
classification, if made, would achieve the object of promoting the
interests of the religious institutions. Therefore, classification of
properties of “religious institutions” as a separate and distinctive
class of properties would not fall foul or be violative of Article 14 of
Civil Appeal No. 3674 of 2009 Page 14 of 29
the Constitution. It was elucidated that whether a tenancy act
should be applicable to religious institutions or should be kept out
is not an aspect which the Court would decide. It is instead for the
legislature to determine the extent of applicability of such tenancy
laws to religious institutions and the extent of protection that
should be made available. This Court has, therefore, rejected the
argument that religious institutions as landlords or tenants of
religious institutions cannot be treated and regarded as a separate
category in respect of whom protection as available to other
tenants under the rent law would not be available. Such
classification cannot be a ground or the basis to interfere with the
validity of an act or provision. However, the Courts can interfere
when the policy is irrational. Summing up the ratio, this court in
Nallamilli Rami Reddi (supra) had held:
“15. We may sum up the upshot of our discussion:
1. That charitable or religious institutions or
endowments fall into a separate category and form
a class by themselves. If that is so, tenants coming
under them also form a separate class. Therefore,
they can be treated differently from others.
2. In operation of the Act it is possible that it may
result in hardship to some of the tenants but that by
itself will not be a consideration to condemn the
Act.
3. The manner in which the charitable or religious
institution or endowment would deal with the
properties that are resumed after the provisions of
Section 82 of the Act come into force by cancelling
the existing leases, is in the region of speculation.
Civil Appeal No. 3674 of 2009 Page 15 of 29
4. Fresh tenancy can be entered into and there is no
material before the court as to what was the rent
paid by tenants at the time when the Act came into
force, in terms of Section 18(2) of the Act or as
provided under the Andhra Act or under the
Telangana Act. In the absence of such a material, it
would be hazardous for the court to reach any
conclusion, one way or the other, to state that the
tenants would be frozen and, therefore, there is no
likelihood of charitable or religious institution or
endowment getting higher rents. If there is no
material one way or the other, the presumption that
the Act is good should prevail.
5. It is a matter of policy with the legislature as to
whether all provisions of the Tenancy Acts should
be exempt in its application to the charitable or
religious institution or endowment in their entirety.
6. The identification of “landless poor persons” and
protection given to them is justified as enunciated
earlier.
7. It will be very difficult to predict at this stage that the
result of Section 82 of the Act would be so
hazardous as not to achieve the object for which it
was enacted. It would not only result in displacing
the old tenants by new tenants, it may also achieve
other social objectives in another manner. If
appropriate provisions are made under the Rules
and if the leases are given to small holders of land,
another social objective could be achieved.
8. In what manner charitable or religious institution or
endowment would deal with matters of this nature
is mere guesswork at this stage. On some
hypothetical approach the High Court could not
have declared a law to be invalid.”
Therefore, it was clearly held that tenants of religious
institutions fall in a separate class which is identifiable. Further,
on the question, whether cancellation of a “lease” in their favour
would achieve the objectives of the act in question, it was
Civil Appeal No. 3674 of 2009 Page 16 of 29
observed, that there was no material before the Court to show that
such cancellation would not carry out the purposes of the
“religious institutions”.
12. There have been number of central and state legislations wherein
religious institutions with or without other charitable organisations
have been treated as a separate and distinct class and accorded
legal treatment concomitant to such distinctiveness within the
scope of the same enactment or other enactments. {See –
Sections 11 and 115BBC, the Income Tax Act, 1961; Karnataka
Rent Act, 1999 and Karnataka Hindu Religious Institutions and
Charitable Endowments Act, 1997; Orissa Hindu Religious
Endowments Act, 1951; Himachal Pradesh Hindu Public Religious
Institutions and Charitable Endowments Act, 1984 as amended in
2018; Uttar Pradesh Urban Buildings (Regulation of Letting, Rent
and Eviction) Act, 1972 and Goa, Daman and Diu Buildings
(Lease, Rent and Eviction) Control Act, 1968, among others}.
13. We would like to refer to a decision of this Court in S.
Kandaswamy Chettiar v. State of Tamil Nadu and Another3
wherein challenge was made to the exemption granted to
buildings owned by Hindu, Christian and Muslim religious public
trusts and public charitable trusts from the provisions of the Tamil
3 AIR 1985 SC 257
Civil Appeal No. 3674 of 2009 Page 17 of 29
Nadu Buildings (Lease and Rent Control) Act, 1960, by delegated
legislation, in the form of an exemption notification issued under
Section 29 of the above Act. A three Judge Bench of this Court in
S. Kandaswamy Chettiar (supra) referred to the judgment of a
five Judge Bench of this Court in P.J. Irani v. State of Madras4
wherein identical provisions contained in earlier enactment,
namely, the Madras Buildings (Lease and Rent Control) Act, 1959
were upheld in the context of Article 14 of the Constitution of India
on the basis that the Preamble and operative provisions of that Act
gave sufficient guidance for exercise of discretionary power
vested with the State Government. Whether a notification
granting exemption to buildings belonging to charities, religious or
secular institutions would violate the equal protection mandate of
Article 14, it was observed, that Article 14 requires that the
classification must be based on rational grounds, that is, grounds
germane to carrying out the policy or the purpose of the Act and
by way of illustration it was stated that if such exemptions were
granted in favour of all the buildings belonging to charities,
religious or secular institutions, such classification would be
reasonable and proper being based on intelligible differentia
having nexus to the object sought to be achieved. Rent Act, it was
observed, would unquestionably be a piece of beneficial
4 AIR 1961 SC 1731
Civil Appeal No. 3674 of 2009 Page 18 of 29
legislation intended to remedy the two evils, that is, rack-rentingꟷ
extraction of exorbitant rents and unreasonable eviction orders
generated by a largescale influx of population to big cities and
urban areas post the Second World War creating acute shortage
of accommodation in such areas. Rent enactments overtly protect
the rights of the tenants in occupation of buildings in such areas
from being charged unreasonable rents and from being
unreasonably evicted. Therefore, such enactments even protect
tenancy after determination or end of their contractual periods by
enlarging the definition of the term ‘tenant’. At the same time, the
rent enactments often contain other significant provisions which
indicate that the legislature itself felt that there may be areas and
cases where these two evils were neither prevalent nor
apprehended, and as such landlords’ freedom need not be
curtailed at all. It is in this context that several enactments give
wider latitude to the landlords of religious, charitable, educational
and other public institutions if the possession is required for
purposes of such institutions. In other words, the legislature is
entitled and can make rational classification of buildings belonging
to government and those belonging to religious, charitable,
educational and other public institutions which are accorded
different treatment on the well-founded assumption that such
landlords are not expected to and would not indulge in rackCivil Appeal No. 3674 of 2009 Page 19 of 29
renting or unreasonable eviction. Relying upon the observations
in P.J. Irani (supra), it was held that constitutional validity of
granting exemption to buildings belonging to charities, religious or
secular institutions, from rent control legislation, would not offend
the equal protection clause of Article 14 of the Constitution as it is
a reasonable classification based on intelligible differentia and
also satisfies the test of nexus as such institutions not only serve
public purpose but disbursement of their income is governed by
the objects for which they are created. The income and activities
are not for private benefit. Reference in this regard was made to
the counter affidavit wherein the government had explained that
they were satisfied that the rents received by exempted religious
institutions were very low, meagre and that the provisions of
fixation of fair rent under the rent act would not meet the ends of
justice and would in fact result in the tenant exploiting the
situation. Consequently, withdrawal of protection to the tenants of
such buildings was justified. It was observed in S. Kandaswamy
Chettiar (supra) as under:
“11... In our view, the aforesaid material clearly shows
that buildings belonging to such public religious and
charitable endowments or trusts clearly fell into a class
where undue hardship and injustice resulting to them
from the uniform application of the beneficial provisions
of the Act needed to be relieved and the exemption
granted will have to be regarded as being germane to
the policy and purposes of the Act. In other words the
classification made has a clear nexus with the object
Civil Appeal No. 3674 of 2009 Page 20 of 29
with which the power to grant exemption has been
conferred upon the State Government under S.29 of
the Act.
xx xx xx
14... It is obvious that if the trustees of the public
religious trusts and public charities are to be given
freedom to charge the normal market rent then to make
that freedom effective it will be necessary to arm the
trustees with the right to evict the tenants for nonpayment of such market rent. The State Government
on materials before it came to the conclusion that the
‘fair rent’ fixed under the Act was unjust in case of such
buildings and it was necessary to permit the trustees of
such buildings to recover from their tenants reasonable
market rent and if that be so non-eviction when
reasonable market rent is not paid would be
unreasonable and if the market rent is paid by the
tenants no trustee is going to evict them. It is,
therefore, clear that granting total exemption cannot be
regarded as excessive or unwarranted.
15. Apart from this aspect of the matter it is
conceivable that trustees of buildings belonging to such
public religious institutions or public charities may
desire eviction of their tenants for the purpose of
carrying out major or substantial repairs or for the
purpose of demolition and reconstruction and the State
Government may have felt that the trustees of such
buildings should be able to effect evictions without
being required to fulfil other onerous conditions which
must be complied with by private landlords when they
seek evictions for such purposes. In our view,
therefore, the total exemption granted to such buildings
under the impugned notification is perfectly justified.”
14. These two judgments were followed by the two Judge Bench
decision of this Court in Christ the King Cathedral v. John
Ancheril and Another5
 wherein similar exemption notification
5
(2001) 6 SCC 170
Civil Appeal No. 3674 of 2009 Page 21 of 29
under the Kerala Buildings (Lease and Rent Control) Act, 1965
granting exemption in public interest to the buildings of all
churches/mosques of all minority religions and of all Dioceses,
Archdioceses, Monasteries, etc. was challenged. One of the
contentions raised was that no data or material was produced by
the State and hence the decision and ratio in S. Kandaswamy
Chettiar (supra) would not be applicable. Rejecting the said
contention, it was observed:
“6. The law had been stated by this Court to the effect
that public religious or charitable endowments or trusts
constitute a well-recognised group which serves not
only public purposes, but disbursement of their income
is governed by the objects with which they are created
and buildings belonging to such endowments or trusts
clearly fall into a class distinct from the buildings owned
by private landlords. It is in respect of three areas a
regulation would be made under the Act, as has been
done in other similar enactments and these areas are:
(i) with respect to regulation of lease of buildings
(residential or non-residential); (ii) control of rent of
such buildings; and (iii) control of eviction of tenants
from such buildings. A public trust, as has been held in
S. Kandaswamy Chettiar case is not likely to act
unreasonably either in the matter of enhancement of
rent or eviction of tenants being institutions of religion
or charity. On that basis, this Court upheld the validity
of the exemption granted under the Tamil Nadu Act in
favour of such trust or endowment. In the present case,
the contention has been specifically put forth that the
appellants fall into that very category which came up
for consideration before this Court in S. Kandaswamy
Chettiar case. Therefore, no distinction can be made
between that class of owners of the buildings in that
case and in the present case. We do not understand as
to what other material was required by the Court in a
matter of this nature if the contention put forth before
this Court is not that churches or mosques, dioceses,
archdioceses, monasteries, convents, wakfs and
madarsas are not religious and charitable in nature.
Civil Appeal No. 3674 of 2009 Page 22 of 29
7. Shri Nageswara Rao, the learned counsel
appearing for the contesting respondents submitted
that there is total non-application of mind by the
Government in the matter of grant of exemption and
the guidelines indicated in S. Kandaswamy Chettiar
case have not been followed in the present case and,
therefore, the exemption should not have been granted
in the present case. In S. Kandaswamy Chettiar case
an affidavit had been filed as to the lower rents that
were being paid and that the tenants were exploiting
the situation and had brought the charitable institutions
to a situation of helplessness and that position not
having been challenged the Court made those orders.
If we bear in mind the fact that the purpose of the Act is
apparently to prevent unreasonable eviction and also
to control rent and if the trustees of religious and public
charities are given freedom to charge normal market
rent with the further freedom to evict the tenants for not
paying such market rent, the result would be unjust and
cause hardship to them. But apprehension, by itself, is
not sufficient. There is no material on record to show
that in any of these cases the landlords would resort to
such a course of action. On the other hand, if the
building belonging to such public trust or religious
institution is exempt from the Act, the purpose of the
trust could be carried out much better, is quite clear. If
that is the object with which the Government has
granted exemption, we do not think there is any reason
to quash the notifications impugned before the High
Court.
xx xx xx
9. An argument is sought to be raised on the basis of
ownership of property that there should not have been
a distinction as is being made in the present case. That
was the very basis of distinction made in case of
statutory bodies like the Housing Board, local
authorities which was noticed in Jayakaran v. Kerala
Health R & W Society case or registered wakfs which
was considered in Lakshmanan v. Mohamood. When
such bodies or institutions fall into a distinct class by
themselves and exemption granted to them would
serve a public purpose, namely, to carry out the objects
of the trust or the endowment or religious activity in a
broad sense, we do not think that the fine distinction
Civil Appeal No. 3674 of 2009 Page 23 of 29
sought to be made by the High Court in this regard is
justified.
15. Appropriate at this stage would also be reference to two earlier
decisions of this Court which had examined the provisions of the
rent control legislations, namely, Kewal Singh v. Smt. Lajwanti6
and Ravi Dutt Sharma v. Ratan Lal Bhargava7
.
16. In Kewal Singh (supra), the challenge made was to the provisions
of summary eviction in case of bona fide requirement under the
Delhi Rent Control Act, 1958. It was observed that the rent control
legislations are a piece of social legislations and are meant mainly
to protect tenants from frivolous evictions but, at the same time,
they must do justice to the landlord and to this extent the
enactment should avoid placing such restrictions on their right to
evict the tenants so as to destroy the legal right to property.
Therefore, the landlords have been given certain statutory rights
under the rent enactments to seek eviction and these provisions
provide relief. In the absence of such rent control legislations, a
landlord has the right in law to evict the tenant either on the
termination of tenancy by efflux of time or other grounds after
giving notice under the Transfer of Property Act. Such rights have
been curtailed by the rent control legislations to give protection to
6 AIR 1980 SC 161
7 AIR 1984 SC 967
Civil Appeal No. 3674 of 2009 Page 24 of 29
tenants having regard to the genuine and dire needs but these
should not be construed to destroy the rights which have been
given to the landlords. It was observed:
“21. There is yet another important aspect of the matter
which may be mentioned here. Prior to the enactment
of the rent control legislation in our country, the
relationship of landlord and tenant was governed by
our common law viz. the Transfer of Property Act
(Sections 107 to 111). The tenant was inducted with
his tacit agreement to be regulated by the conditions
embodied in the contract and could not be allowed to
repudiate the agreement reached between him and the
landlord during that period. The tenant was, therefore,
bound in law to vacate the premises either voluntarily
or through a suit after he was given a notice as
required by the Transfer of Property Act under the
terms and conditions of the lease. However, as a piece
of social reform in order to protect the tenants from
capricious and frivolous eviction, the legislature
stepped in and afforded special protection to the tenant
by conferring on him the status of a statutory tenant
who could not be evicted except under the conditions
specified and the procedure prescribed by the Rent
Control Acts. Thus to this extent, the agreement of
lease and the provisions of the Transfer of Property Act
stood superseded. At the same time, the Rent Control
Acts provided the facilities of eviction to the landlord on
certain specified grounds like bona fide personal
necessity or default in payment of rent, etc. Thus any
right that the tenant possessed after the expiry of the
lease was conferred on him only by virtue of the Rent
Control Act. It is, therefore, manifest that if the
legislature considered in its wisdom to confer certain
rights or facilities on the tenants, it could due to
changed circumstances curtail, modify, alter or even
take away such rights or the procedure enacted for the
purpose of eviction and leave the tenants to seek their
remedy under the common law.
22. Thus, we do not see how can the tenant challenge
the validity of such a provision enacted by the
legislature from which the tenant itself derived such
rights.”
Civil Appeal No. 3674 of 2009 Page 25 of 29
17. Similar are the observations of this Court in Ravi Dutt Sharma
(supra) which had quoted several passages from Kewal Singh
(supra) to observe that it is open to the legislature to pick out one
class of landlords out of several covered under a specific provision
of a rent enactment so long as they form a class by themselves
and the legislature was free to provide benefit of a special
procedure to them in the matter of eviction against the tenants as
long as the legislation had the object to achieve and a special
procedure has reasonable nexus to the object to be achieved.
18. In Ashoka Marketing Ltd. (supra), the five Judge Constitution
Bench of this Court had upheld applicability of the Public Premises
Act to a corporation established by a Central Act that is owned
and controlled by the Central Government, therein a nationalised
bank. After referring to several judgments, this Court had
explained the effect of Article 14 of the Constitution observing that
the two statutes, namely, the Rent Control Act and the Public
Premises Act were enacted by the same legislature, that is, the
Parliament, in exercise of powers for matters enumerated in the
Concurrent List. The Public Premises Act being a later enactment
would prevail over the provisions of the Rent Control Act in
respect of public premises. Referring to the provisions of the Rent
Control Act, it was observed:
Civil Appeal No. 3674 of 2009 Page 26 of 29
“55. The Rent Control Act makes a departure from the
general law regulating the relationship of landlord and
tenant contained in the Transfer of Property Act
inasmuch as it makes provision for determination of
standard rent, it specifies the grounds on which a
landlord can seek the eviction of a tenant, it prescribes
the forum for adjudication of disputes between landlords
and tenants and the procedure which has to be followed
in such proceedings. The Rent Control Act can,
therefore, be said to be a special statute regulating the
relationship of landlord and tenant in the Union territory
of Delhi. The Public Premises Act makes provision for a
speedy machinery to secure eviction of unauthorised
occupants from public premises. As opposed to the
general law which provides for filing of a regular suit for
recovery of possession of property in a competent court
and for trial of such a suit in accordance with the
procedure laid down in the Code of Civil Procedure, the
Public Premises Act confers the power to pass an order
of eviction of an unauthorised occupant in a public
premises on a designated officer and prescribes the
procedure to be followed by the said officer before
passing such an order. Therefore, the Public Premises
Act is also a special statute relating to eviction of
unauthorised occupants from public premises. In other
words, both the enactments, namely, the Rent Control
Act and the Public Premises Act, are special statutes in
relation to the matters dealt with therein. Since, the
Public Premises Act is a special statute and not a
general enactment the exception contained in the
principle that a subsequent general law cannot derogate
from an earlier special law cannot be invoked and in
accordance with the principle that the later laws
abrogate earlier contrary laws, the Public Premises Act
must prevail over the Rent Control Act.”
19. What has been said about the Public Premises Act would be
equally applicable to the legislations made by the State legislature
of the State of Punjab in respect of the two enactments under
consideration, that is, the East Punjab Rent Act and the Religious
Premises Act. No doubt, in this decision it has been observed that
the underlying reason for exclusion of property belonging to the
Civil Appeal No. 3674 of 2009 Page 27 of 29
government from the ambit of the Rent Control Act is that the
government while dealing with the citizens in respect of property
belonging to it would not act as a private landlord but would act in
public interest, albeit this reasoning would equally apply to
“religious institutions” as defined. The religious institutions as held
are meant to carry out public purpose and the legislature can
proceed accordingly that the religious institutions would act in
public interest for which they were established. {See above S.
Kandaswamy Chettiar (supra) and Christ the King Cathedral
(supra)}
20. As noticed above, valid grants, leases and allotments are not
construed and treated as unauthorised occupation. It is only when
the terms of the grant, lease or allotment are not adhered to or
have been determined or the period of allotment, lease or grant as
fixed has come to an end, that the person in occupation is treated
to be in unauthorised occupation. This is a pre-condition which
confers the right on the religious institution to seek eviction of a
person in unauthorised occupation of the religious premises.
Further, an order passed by the Collector is appealable before the
Commissioner and if still aggrieved, a tenant can invoke the writ
jurisdiction of the High Court, as mentioned above. Therefore,
Civil Appeal No. 3674 of 2009 Page 28 of 29
power of judicial review is always available and can be exercised
by the High Court when required and necessary.
21. Accordingly, we do not find any merit in the present appeal and
the same is dismissed. However, in the facts of this case, there
would be no order as to costs.
......................................J.
(N. V. RAMANA)
......................................J.
(SANJIV KHANNA)
......................................J.
(KRISHNA MURARI)
NEW DELHI;
DECEMBER 04, 2019.
Civil Appeal No. 3674 of 2009 Page 29 of 29