Supreme Court Backs PSUs in Landmark Property Reclaim Verdict

The Supreme Court ruled that the 1971 Public Premises Act prevails over state rent control laws, allowing public sector undertakings (PSUs) to evict tenants using central law. This decision resolves conflicting judgments and reinforces legal discipline by prioritizing decisions from larger benches.

In a landmark ruling, the Supreme Court has upheld the 1971 Public Premises (Eviction of Unauthorised Occupants) Act over state rent control laws, a decision that could help public sector undertakings (PSUs) recover their properties by bypassing lengthy rent control court procedures.

A three-judge bench, including Justices Vikram Nath, Sandeep Mehta, and N V Anjaria, decreed that the PP Act's provisions apply retrospectively. This allows for the eviction of tenants who occupied properties of government corporations, such as the Life Insurance Corporation (LIC), prior to 1958 or 1971.

This verdict corrects previous conflicting judgments and emphasizes the importance of judicial discipline by enforcing the doctrine of stare decisis, ensuring that decisions from larger benches take precedence.

(With inputs from agencies.)