Court clarifies withdrawal does not nullify existing orders under U.P. Urban Buildings Act; disputed possession and rent issues left for appropriate forum
In a significant judgment delivered on October 9, 2026, the Allahabad High Court, presided by Justice Dr. Yogendra Kumar Srivastava, allowed M/s Damodar Das Gopal Das Business and others (petitioners) to withdraw their petition challenging a release order under Section 21(1)(a) of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. The petition was filed against Rajendra Kumar Agrawal and others, the respondent landlords.
The petitioners had challenged the release order dated February 28, 2013, passed by the Prescribed Authority in Rent Case No. 14 of 2000, which was affirmed by the appellate court on December 17, 2021. However, during the pendency of the writ petition under Article 227 of the Constitution, the petitioners sought to withdraw the challenge, citing a family settlement and an alleged surrender of possession of the tenanted premises.
The respondents opposed the withdrawal, arguing that rights had accrued in their favor due to the affirmed release order, and that the petitioners had defaulted on rent payments since September 1, 2023. They also disputed the alleged surrender of possession, questioning the authority of the person receiving possession and the validity of the possession memo dated April 7, 2026.
Justice Srivastava analyzed precedents including the Supreme Court judgments in Hulas Rai Baij Nath v. Firm K.B. Bass & Co., K.S. Bhoopathy v. Kokila, R. Rathinavel Chettiar v. V. Sivaraman, and Sarguja Transport Service v. State Transport Appellate Tribunal. The Court emphasized that while a party ordinarily has the right to discontinue proceedings it no longer wishes to pursue, such withdrawal should not defeat any accrued rights of the opposite party.
The Court held that withdrawal of a petition challenging an existing adjudication does not nullify the order under challenge or the rights flowing from it. Therefore, the release order and appellate order in favor of the landlords remain undisturbed and operative. The Court further clarified that disputed questions relating to the alleged surrender of possession, family settlement, authority of the person receiving possession, and arrears of rent are complex factual and legal issues that cannot be decided in the withdrawal proceedings and should be left open for determination by the competent forum.
Regarding the interim stay granted earlier in favor of the petitioners, the Court held that such protection would cease upon withdrawal of the petition, and the respondents are at liberty to enforce the release order and appellate order as per law.
Importantly, the Court ruled that the petitioners' unconditional withdrawal without seeking liberty to file a fresh petition bars them from re-agitating the same cause of action before this Court, consistent with the principle laid down in the Sarguja Transport Service case.
The judgment thus strikes a balance between the right to withdraw a challenge and the protection of accrued rights of the opposing party, while leaving complex disputed issues to be resolved in appropriate proceedings.
Bottom Line:
Withdrawal of petition under Article 227 challenging release order under Section 21(1)(a) of U.P. Urban Buildings Act - Petitioners cannot be compelled to continue challenge merely because respondents seek decision on merits - Withdrawal does not nullify release order and appellate order already passed in favour of landlords - Unconditional withdrawal without liberty bars fresh petition on same cause of action - Disputed questions regarding surrender of possession, family settlement and arrears of rent left open for decision in appropriate proceedings.
Statutory provision(s):
U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 Sections 21(1)(a), 22; Constitution of India Articles 226, 227; Code of Civil Procedure, 1908 Order XXIII Rule 1
M/s Damodar Das Gopal Das Business v. Rajendra Kumar Agrawal, (All) : Law Finder Doc Id # 2995539
