Public Premises Act, 1971 overrides Rent Control Acts, Supreme Court overrules its own contradiction

Supreme Court Affirms Overriding Effect of Public Premises Act Over State Rent Control Laws Apex Court Overrules Previous Judgment, Ensures Uniform Application of Public Premises Act, 1971 on Tenancies

In a landmark judgment delivered on December 11, 2025, the Supreme Court of India clarified the overriding effect of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 over State Rent Control Acts. The ruling, which came in the case of Life Insurance Corporation of India v. Vita, decisively overruled the earlier two-Judge Bench decision in Suhas H. Pophale v. Oriental Insurance Company Limited and its Estate Officer, aligning with the Constitution Bench decision in Ashoka Marketing Ltd. v. Punjab National Bank.

The three-Judge Bench, comprising Justices Vikram Nath, Sandeep Mehta, and N.V. Anjaria, addressed the critical issue of whether the provisions of the Public Premises Act would prevail over State Rent Control Legislations in cases involving premises let out before or after the Act's enforcement. The judgment comes after a referral by a two-Judge Bench, which found conflicting interpretations in earlier rulings.

The Court reaffirmed that the Public Premises Act, a special statute, has an overriding effect on State Rent Control Acts concerning the eviction of unauthorised occupants. It clarified that the Act applies to tenancies created before or after its enforcement if the premises qualify as public premises and the occupation becomes unauthorised. The Court emphasized that the continuous nature of occupation is relevant, not initial possession.

By dismissing the distinction created in Suhas H. Pophale between tenants occupying premises before and after the Act's enforcement, the Supreme Court upheld the legislative intent of ensuring the speedy recovery of possession of public premises. The judgment underscores that a person in unauthorised occupation of public premises cannot invoke the protection of State Rent Control Acts.

This decision is pivotal for government and statutory corporations like the Life Insurance Corporation and nationalised banks, providing them with a robust mechanism to manage their properties efficiently. The ruling aligns with the principles of statutory interpretation and the purpose underlying the enactment of the Public Premises Act, ensuring uniformity in its application across the country.

Bottom Line:

Public Premises Act, 1971 overrides Rent Control Acts, including tenancies created before or after the Act's enforcement. The two-Judge Bench decision in Suhas H. Pophale is overruled for contradicting the Constitution Bench decision in Ashoka Marketing.

Statutory provisions: Public Premises (Eviction of Unauthorised Occupants) Act, 1971, Section 2(e), Section 2(g), Section 5; Maharashtra Rent Control Act, 1999; Transfer of Property Act, 1882, Section 106

Life Insurance Corporation of India v. Vita, (SC) : Law Finder Doc Id # 2820843