1. These
two appeals relate to separate actions in which declarations were sought as to
the invalidity, having regard to the provisions of the Constitution, of certain
parts of the Rent Restrictions Act, 1960, as amended by the Rent Restrictions
(Amendment) Act, 1967, and the Landlord and Tenant (Amendment) Act, 1971. In
the Blake action declarations were sought as to the invalidity of Parts II and
IV of the Act of 1960, as amended, and in the Madigan action a similar
declaration is sought in respect of Part IV only. Both actions were heard
together in the High Court and resulted in declarations as to invalidity being
made by the trial judge, Mr. Justice McWilliam, in respect of both parts of the
Act of 1960. Against this decision these appeals have been brought by the
Attorney General in respect of the relief granted in each of these actions.
These appeals have been heard together by this Court.
2. The
Rent Restrictions Act, 1960, is declared by its long title to be “An Act
to make provision for restricting the increase of rent and the recovery of
possession of premises in certain cases and to provide for other matters
connected therewith.”
3. As
this long title indicates, the Act of 1960 is intended to operate in respect of
lettings of premises to which it applies, and so to operate in respect of the
amount of the rent or the recovery of possession of such premises, irrespective
of the terms of any letting agreement, or of the wishes of the landlord. The
premises to which the Act applies are termed “controlled
dwellings.” These, with the amendments made by the Act of 1967 taken into
consideration, are such dwellings that were erected before the 7th May, 1941,
which, if houses, do not exceed £40 rateable valuation in Dublin or Dun
Laoghaire and £30 elsewhere, and, if separate and self-contained flats, do
not exceed £30 rateable valuation in Dublin and Dun Laoghaire and £20
elsewhere. Exclusions from the operation of the Act of 1960 are provided in s.
3, sub.-s. 2, which excludes, on various grounds, dwellings which by reason of
date of erection or valuation would otherwise be controlled. The control
effected by the Act of 1960, as amended, is said to extend to between 45,000
and 50,000 dwellings.
4. Part
II of the Act of 1960 provides for the “restriction of rent of controlled
dwellings.” This restriction is effected by providing for the
determination of a basic rent for each controlled dwelling which, with such
lawful additions as are permitted, becomes the rent which is payable. The
determination of the basic rent is provided for in s. 7 and in s. 9 of the Act.
Each of these sections was amended by the Act of 1967 and they are referred to
in their amended form.
5. Section
7 of the Act of 1960 applies to a controlled dwelling in respect of which
evidence is forthcoming (a) that it was on the 8th June, 1966, held by an
occupying tenant under a contract of tenancy not being for more than a term of
five years or under a statutory tenancy, and (b) the rent at which it was then
so held. The basic rent under the section is the net rent on the 8th June,
1966. This net rent makes provision for the rates, if paid or allowed by the
landlord. If rates were not paid or allowed for by the landlord, then the rent
on the 8th June, 1966, is the net rent and, therefore, the basic rent.
Otherwise the basic rent is the rent payable under the contract.
6. If
the requirements of s. 7 are not satisfied, then s. 9 applies. Under this
section the basic rent of controlled dwellings, not falling within s. 7, is
determined by the court. Such rent must be the amount which the court considers
reasonable having regard, as far as possible, to the rents of comparable
dwellings. Section 10 provides for the additions which may be made to the basic
rents as determined. Section II provides that the lawful rent shall, if there
are no permitted additions, be the basic rent, If there be such additions, the
section provides that the lawful rent shall be the sum of the basic rent and
such additions.
7. Part
IV of the Act of 1960 deals with “restrictions on recovery of possession
of controlled premises.” The broad effect of these restrictions is that a
landlord cannot normally recover possession of a controlled dwelling from a
tenant who pays his rent, observes the other conditions of the tenancy and does
not commit nuisance or waste. However, provision is made for the recovery of
possession by the landlord if he can establish certain special grounds. When an
order for possession is refused by reason of the provisions of the Act of 1960,
the court makes an order declaring that the tenancy of the tenant arising
otherwise than by virtue of that Act has terminated, and the tenant then
becomes a statutory tenant. Up to the making of such an order, the tenant is
commonly referred to as a non-statutory tenant.
8. On
the death of the tenant, whether statutory or non-statutory, the surviving
spouse, if there be such, and, if not, a member of the family who is bona fide
residing with the tenant, becomes entitled (s. 31) to the same protection from
dispossession as had been enjoyed by the tenant. Furthermore, a statutory
tenant is empowered, with the consent of the landlord, to make a voluntary
assignment of the dwelling. The landlord’s consent can be withheld only
if greater hardship would, owing to the special circumstances of the case, be
caused by granting such consent than by withholding it: see section 32. The
landlord of a statutory tenant is also, for the purposes of some sections of
the Act of 1960, made responsible for any repairs for which the tenant is not
under a liability under his contract or by virtue of s. 42 of the Landlord and
Tenant Law Amendment Act, Ireland, 1860 (commonly called Deasy’s Act).
9. The
restrictions contained in Part IV of the Act of 1960 may have the result that,
in the absence of special grounds, possession of a dwellinghouse can never be
recovered by the landlord and that possession thereof, with all the features of
statutory protection, can eventually pass to different generations of the
tenant’s family or of the tenant’s assignee.
10. The
Act of 1960 was the first measure dealing with rent restriction which was not
expressed to be of temporary duration. As passed, the Act of 1960 applied to
all dwellings erected before, or in the course of erection on, the 7th May,
1941, which were within the stated valuation limits and which were not
otherwise excluded. This meant that control under the Act extended both to the
older dwellings previously defined “1923 Act” premises and to the
later dwellings which had been termed “non-1923 Act” premises. Rent
restriction was effected by Part II of the Act of 1960 and restriction of
recovery of possession by Part IV. Under s. 7 (already referred to in its
amended form) the basic rent of all controlled dwellings was to be determined
by reference to the rent at which they were let when the Act of 1960 came into
operation on the 31st December, 1960, and the basic rent under s. 9 (already
similarly referred to) was to be such amount as the court considered reasonable
having regard, as far as possible, to the basic rents of comparable premises.
By reason of the provisions of earlier legislation, rents determined under
either of these sections were related to the rent which was, or might have
been, charged for the dwelling on the 3rd August, 1914, or on the 7th May,
1941, as the case might be, subject to such flexibility as was given under s. 9
by the words “as the Court considers reasonable.” By s. 8 provision
was made for the review, on the application of the landlord, of a basic rent
determined under s. 7 where such rent fell short by an amount exceeding
one-eighth of the rent which would have been determined under s. 9 if that
section had applied, and on proof that the amount of the basic rent had been
affected by special circumstances.
11. Unlike
the legislation which it replaced, the Act of 1960 did not apply to business
premises. It was, however, provided by s. 54 that tenants who had retained
possession of such premises by reason of the previous legislation should be
entitled to the benefit of the Landlord and Tenant Act, 1931. This section has
now been repealed by s. II of the Landlord and Tenant (Amendment) Act, 1980.
12. The
Act of 1960 was amended by the Rent Restrictions (Amendment) Act, 1967, and, in
minor respects, by the Landlord and Tenant (Amendment) Act, 1971. It is the Act
of 1960, so amended, which is impugned in these proceedings. The Act of 1967
decontrolled houses with a rateable valuation exceeding £40 in Dublin and
Dun Laoghaire, and £30 elsewhere. It also decontrolled self-contained
flats with a rateable valuation exceeding £30 in the Dublin area, and
£20 elsewhere. However, tenants of dwellings so decontrolled were given a
right to a new tenancy under the Landlord and Tenant Act, 1931. Where in such
cases the rent which would be fixed under the Act of 1931 would cause hardship
to the tenant, the court was empowered to grant a new lease for a term not
exceeding ten years, subject to such rent as the court felt the tenant should
be required to pay, having regard to all the circumstances. Decontrol was also
to apply to any house or self-contained flat of which the landlord recovered
possession; it also applied to houses having a rateable valuation in excess of
£10 which, after the passing of the Act, became tenanted by a bachelor or
a spinster being between 21 and 65 years of age. Such tenants were also given
the benefit of the Act of 1931 ,with the benefit of the special provision for
hardship already mentioned.
13. An
amendment to s. 8 of the Act of 1960 enabled a landlord to apply to the
District Court to review a basic rent where the landlord owned not more than
six controlled houses or self-contained flats with a combined rateable
valuation not exceeding £60 (in case one, at least, of them was situated
in the Dublin area) or £40 in any other case. The rent, if adjusted by the
court, was to be of such amount as the court considered reasonable, having
regard to all the circumstances of the case but, in particular, to the
necessity of avoiding financial hardship to the tenant and the landlord. It was
not to exceed the maximum rent which would be fixed on the renewal of a tenancy
under Part III of the Act of 1931. The provision applied only where the
landlord owned the premises on the 8th June, 1966, and continuously thereafter.
The time for making such an application was, however, limited to two years
after the passing of the Act of 1967 on the 9th May, 1967. To succeed in such
an application, the landlord had to satisfy the court that the basic rent
(fixed by reference to the net rent as of the 8th June, 1966, was less than the
rent which would be fixed under s. 9 of the Act of 1960 (as amended), if the
case was one to which that section applied.
14. The
Landlord and Tenant (Amendment) Act, 1971, effected a limited amendment to the
provisions of the Act of 1960 (as amended). By s. 10 of the Act of 1971, the
right given to a limited category of landlords to apply to the court to revise
the basic rent of controlled premises under s. 8 of the Act of 1960 was
amended. It revived the time for making such applications (originally fixed at
a two-year period from the passing of the Act of 1967) for a further period of
one year from the passing of the Act of 1971. This period has expired, as has
the power of review contained in section 8, both in its original and its
amended form.
15. As
already indicated, these proceedings under appeal question the validity of
Parts II and IV of the Act of 1960, as amended. In this judgment separate
consideration is given to each of the two impugned parts having regard to the
grounds of invalidity alleged.
16. In
relation to Part 11, the plaintiffs submit that its provisions have the
consequences detailed in the ensuing paragraphs.
17. The
basic rent of the majority of controlled premises must be determined under s. 7
of the Act of 1960. This will be the net rent at which the premises were let on
the 8th June, 1966. This rent, because of earlier legislation, necessarily has
as its base either the 1914 rent (if the premises were erected prior to 1919)
or the 1941 rent (if they were erected after the year 1919). While this base
has been broadened to some extent by statutory increases, it still operates in
restriction of the rent which may be charged, and does so to such an extent
that the income derived by a landlord from a letting is slight. In relation to
the properties owned by the plaintiffs, the evidence is that the market rent
would be between 9 and 19 times the controlled rent. This disproportion between
market and controlled rents (which is not necessarily the crucial test in this
case), is not unusual and is a direct result of the rent restriction effected
by the legislation.
18. Since
the special provision for revision of basic rents which had been permitted in
certain cases by s. 8 of the Act of 1960 (as amended), and by s. 10 of the Act
of 1971, no longer operates, basic rents can never be reviewed once they have
been determined under section 7. This means that the income derived by the
landlord in all such cases is effectively frozen and tied to the net rent which
was derived from the premises on the 8th June, 1966. While additions are
allowed to this basic or net rent, these are referable to the actual
expenditure by the landlord, whether for rates, repairs or general maintenance.
Apart from yearly increases in rates, such additions as are permitted under s.
10 of the Act of 1971 are limited to the percentages of the actual expenditure
set out in the section.
19. The
imposition on the landlord of full responsibility for all repairs (except such
as are the tenant’s obligation under his agreement or under Deasy’s
Act) further accentuates the hardship caused to landlords of controlled
dwellings, particularly in the case of older houses where maintenance is heavy
and the rents small. Reliance was placed on the particular example of one of
the plaintiffs’ houses - No.32 Haroldsville Avenue, Dublin. In the case
of this house, the evidence established that if the landlord carried out
appropriate repairs and maintenance, she would sustain an annual loss of
£35. The plaintiffs contend that the general result is virtually to
deprive them of all financial benefit from their property.
20. The
plaintiffs contend that Articles 40 and 43 of the Constitution, read in the
light of its preamble, have been contravened and that the legislation is to
that extent invalid. As to the preamble to the Constitution, the plaintiffs
rely on the following paragraph as being the basis upon which the Constitution
was adopted:- “And seeking to promote the common good, with due
observance of Prudence, Justice and Charity, so that the dignity and freedom of
the individual may be assured, true social order attained, the unity of our
country restored, and concord established with other nations.”
21. The
plaintiffs rely on the provisions of Article 40, ss. 1 and 3, and of Article 43
of the Constitution. On behalf of both the plaintiffs and the Attorney General,
the constitutional issues have been dealt with at length, in pleadings, in
written submissions and in oral argument. A condensed summary of what has been
thus put forward is necessary to show the background of argument against which
the Court’s decision has been reached.
22. For
the plaintiffs, it has been submitted that they have been denied the
requirements of justice and have been treated unequally vis-à-vis other
citizens who have let uncontrolled property; that the arbitrary and unfair
restriction of their letting rights constitute an unjust attack on their
property rights; that the State has failed to vindicate those rights; that the
restrictions imposed on their property rights are not regulated by any
principle of social justice; that the delimitation of those rights is unrelated
to the exigencies of the common good; that if an emergency or other temporary
basis for the impugned restrictions existed at any stage, it has long since
passed; that the imposition of those restrictions on houses and flats merely
because they happened to be built before 1941 and to have rateable valuations
below specified amounts, is arbitrary, unjustifiably discriminatory and not
required by the common good; that such control, regardless as it is of the
means of the tenant or the hardship it may cause to the landlord, is unjust and
unfair, particularly because, since December, 1972, the impugned legislation
has left no means of reviewing basic rents once they have been determined by
the Courts; and that the State’s failure since 1971 to amend this
legislation and to redress the plaintiffs’ grievances amounts to a
dereliction by the State of its duty under Article 40, s. 3, to protect them
from unjust attack and to vindicate their property rights having regard to the
injustice that has been done to them.
23. On
behalf of the Attorney General, the case has been made that this legislation
falls to be examined for invalidity under Article 43 of the Constitution; that
s. 2 of that Article provides for the regulation and delimitation of property
rights according to the principles of social justice and the exigencies of the
common good; that what this impugned legislation has done is justified by s. 2
of that Article and that, accordingly, no question of non-compliance with
Article 40, s. 3 arises; that the power of regulating or delimiting the rights
of private property is vested in the Oireachtas by Article 6 and that it is to
be presumed that, in exercising that power in relation to Article 43, it acted
intra vires and with due regard to the directive principles of social justice
set out in Article 45
,
which
are not cognisable in any court; that the Court’s power to condemn this
legislation under either Article 40, s. 3, or under Article 43, cannot arise
unless it is shown that what was done was not permitted by Article 43, s. 2;
that, if what the Oireachtas has done is permitted by Article 43, s. 2, no
question of injustice requiring State action under Article 40, s. 3, sub-s. 2,
can arise; that Part II of the Act of 1960 must be tested for constitutional
validity as at the time of its enactment and that it cannot be held to have
lost that validity by mere passage of time or changes in economic
circumstances; that even if the State had any duty to review rent control
periodically, it had in fact done so.
24. Neither
the Act of 1960, nor the Acts which amended it, are expressed to be Acts passed
for the purpose of delimiting the exercise of property rights with a view to
reconciling such exercise with the exigencies of the common good. However,
being Acts of the Oireachtas which are not unconstitutional on their face, they
enjoy a presumption of validity until the contrary is clearly established.
Accordingly, if authority for this legislation can be found under the
provisions of Article 43, that Article can be relied on when the legislation is
challenged.
25. Article
43 is headed by the words “private property.” It defines the
attitude of the State to the concept of the private ownership of external goods
and contains the State’s acknowledgement that a natural right to such
exists, antecedent to positive law, and that the State will not attempt to
abolish this right or the associated right to transfer, bequeath and inherit
property. The Article does, however, recognise that the State “may as
occasion requires delimit by law the exercise of the said rights with a view to
reconciling their exercise with the exigencies of the common good.” It is
an Article which prohibits the abolition of private property as an institution,
but at the same time permits, in particular circumstances, the regulation of
the exercise of that right and of the general right to transfer, bequeath and
inherit property. In short, it is an Article directed to the State and to its
attitude to these rights, which are declared to be antecedent to positive law.
It does not deal with a citizen’s right to a particular item of property,
such as controlled premises. Such rights are dealt with in Article 40 under the
heading “personal rights” and are specifically designated among the
personal rights of citizens. Under Article 40 the State is bound, in its laws,
to respect and as far as practicable to defend and vindicate the personal
rights of citizens.
26. There
exists, therefore, a double protection for the property rights of a citizen. As
far as he is concerned, the State cannot abolish or attempt to abolish the
right of private ownership as an institution or the general right to transfer,
bequeath and inherit property. In addition, he has the further protection under
Article 40 as to the exercise by him of his own property rights in particular
items of property.
27. This
question of the relationship of Article 40, s. 3, sub-s. 2, to Article 43 was
discussed in
The
Attorney General
v.
Southern
Industrial Trust Ltd
(1957)
94 I.L.T.R. 161.
In
that case Lavery J., when delivering the judgment of the Court, said at p. 176
of the report:- “In any event, in the opinion of the Court, the property
rights guaranteed are to be found in Article 43 and not elsewhere and the
rights guaranteed by Article 40 are those stated in Article 43.”
28. The
Court is unable to accept this view. Article 43 does not state what the rights
of property are. It recognises private property as an institution and forbids
its abolition. The rights in respect of particular items of property are
protected by Article 40, s. 3, sub-s. 2, by which the State undertakes by its
laws to protect from unjust attack and, in the case of injustice done, to
vindicate the property rights of every citizen. It is the duty of the Courts to
protect such property rights from unjust attack and the decision as to what is
such an attack is to be made by the Courts. This view has acceptable judicial
support. In his judgment in the High Court in
The
Attorney General
v.
Southern
Industrial Trust Ltd (1957) 94 I.L.R.M. 161.
Davitt
P. gave his view as to the relationship between the two Articles in the
following terms at p. 168 of the report:-
29. In
this case the plaintiffs’ claim that their rights to the private property
in question have been subjected, by the impugned legislation, to unjust attack
and that what has been done is in breach of Article 40, s. 3, sub-s. 2, of the
Constitution. In the opinion of the Court, this legislation cannot be regarded
as regulating or delimiting the property rights comprehended by Article 43.
Accordingly, it requires to be examined for its validity in relation to the
provisions of Article 40, s. 3, sub-s. 2. Therefore, the question to be decided
is whether the impugned provisions of the Act of 1960 (as amended) constitute
an unjust attack on the property rights of the plaintiffs.
30. Before
entering upon this question, it is necessary to clarify certain matters. As
already indicated, the Act of 1960 was amended extensively by the Act of 1967.
The amendments included an extension of the power to review certain rents given
to the court by s. 8 and a widening of the permitted basis for comparison on
the determination of rents under section 9. However, by s. 4, sub-s. 3, of the
Act of 1967, it was provided that no application for the review of rent under
s. 8 of the Act of 1960 could be made after the expiration of two years from
the passing of the Act of 1967 on the 9th May, 1967. This sub-s. 3 was in turn
amended - in so far as it related to reviews under s. 8, sub-s. (1A), of the
Act of 1960- by s. 10 of the Act of 1971 which revived and extended the power
of the court to review under subs. (1A) for one year after the passing of the
Act of 1971 on the 7th December, 1971. Accordingly, the power to review has now
ceased.
31. In
considering the validity of the impugned parts of this legislation, the Court
cannot have regard to provisions which have been amended or repealed or which
no longer operate. The Court proposes to consider this legislation as it now
operates following the last amendment, which was effected by s. 10 of the Act
of 1971.
32. As
already indicated, the long title of the Act of 1960 describes it as “an
Act to make provision for restricting the increase of rent and the recovery of
possession
in
certain cases
and
to provide for other matters connected therewith.”
(Emphasis
added)
33. Part
II of the Act of 1960 contains the statutory provisions by means of which rents
are determined and increases restricted. The legislation which contains these
provisions is not limited in its duration. Its terms are mandatory and,
generally, do not permit any person affected by its provisions to contract out
of their application. The result is that the property rights of the owners of
affected houses and dwellings are interfered with, without their consent, and
agreements entered into by them for the letting of such premises are, if
contrary to the statutory provisions, overridden and rendered ineffective. To
the extent, therefore, that these statutory provisions interfere with and
render ineffective the exercise by the owners of the houses and dwellings
affected of their property rights in relation thereto, they constitute, in the
opinion of the Court, an attack upon such rights. The question which must be
decided, however, is whether such attack is
unjust
and
therefore in contravention of the provisions of Article 40, s. 3, sub-s. 2, of
the Constitution.
34. In
this regard it should first be noted that, in accordance with its long title,
the Act of 1960 makes provision for restricting rents only “in certain
cases.” As already indicated, these cases comprise lettings of houses or
dwellings within specified valuation limits which were built or constructed
prior to 7th May, 1941. No reason for this selection is apparent from the
impugned legislation and, apart from the fact that rent control existed only in
such cases in the previous temporary legislation, no reason was advanced by
counsel for the Attorney General. The result is that lettings of all houses and
dwellings outside the specified valuation limits and of all such houses and
dwellings, irrespective of valuation, built after 1941 are free of any form of
rent control.
35. Further,
the legislation expressly excludes all lettings of dwellings made under the
Labourers Acts, 1883-1958 or the Housing of the Working Classes Acts, 1890-1958
(to be read in conjunction with s. 120 of the Housing Act, 1966) and thereby
excludes the many thousands of lettings made by local authorities to persons in
need of housing assistance.
36. It
is further to be noted that the statutory provisions contained in Part II of
the Act of 1960 operate in respect of the house or dwelling controlled,
irrespective of the means of the tenant. Neither the means of the tenant nor
the lack of means of, or possible hardship to, the landlord may be considered
in determining the permitted rent. Therefore, it is apparent that in this
legislation rent control is applied only to some houses and dwellings and not
to others; that the basis for the selection is not related to the needs of the
tenants, to the financial or economic resources of the landlords, or to any
established social necessity; and that, since the legislation is now not
limited in duration, it is not associated with any particular temporary or
emergency situation.
37. Such
legislation, to escape the description of being unfair and unjust, would
require some adequate compensatory factor for those whose rights are so
arbitrarily and detrimentally affected. No such compensatory factor is to be
found in the impugned provisions of Part II of the Act of 1960.
38. The
vast majority of the rents in question are determined under the provisions of
s. 7 of the Act of 1960. This section declares that the basic rent of premises
to which it applies shall be the net rent at which such premises were let on
the 8th June, 1966. The net rent, where the landlord paid or allowed a
deduction in respect of rates, is declared to be the rent payable less the
rates; otherwise it is the rent payable on the specified date. However, the
rent payable on the 8th June, 1966, was in all cases regulated by the rent
control legislation previously in force. This had the effect that all rents so
payable were related to the rent chargeable in 1914 in respect of the older
controlled dwellings, and to the rent charged on the 7th May, 1941, in respect
of the later ones. It was alleged by the plaintiffs, and not seriously disputed
by the Attorney General, that the direct effect of this control has been that
rents have been pegged or frozen at a level which is usually oppressively
uneconomic and which is further eroded by the statutory obligation to repair
and maintain the controlled premises.
39. Once
basic rents are determined under s. 7 or s. 9 of the Act of 1960, no review
thereof is now permitted. The temporary revival of the power to review under s.
7 in certain cases, provided by the Act of 1971, has long since expired. This
means that all owners whose rents are controlled are restricted in their income
to the amount of the basic rent and to such lawful additions as may be related
to increases in rates and to a percentage of actual expenditure on maintenance,
repair or improvement. This absence of any power to review such rents,
irrespective of changes in conditions, is in itself a circumstance of inherent
injustice which cannot be ignored. When this is coupled with the absence of any
provision for compensating the owners whose rental incomes are thus permanently
frozen, regardless of the significant diminution in the value of money, the
conclusion that injustice has been done is inevitable.
40. In
the opinion of the Court, the provisions of Part II of the Act of 1960 (as
amended) restrict the property rights of one group of citizens for the benefit
of another group. This is done, without compensation and without regard to the
financial capacity or the financial needs of either group, in legislation which
provides no limitation on the period of restriction, gives no opportunity for
review and allows no modification of the operation of the restriction. It is,
therefore, both unfair and arbitrary. These provisions constitute an unjust
attack on the property rights of landlords of controlled dwellings and are,
therefore, contrary to the provisions of Article 40, s. 3, subs. 2, of the
Constitution.
41. In
the view of the Court, a restriction to this extent of a landlord’s right
to obtain possession of rented premises is not in itself constitutionally
invalid, provided the restriction is made on a basis that is not
unconstitutionally unfair or oppressive, or has due regard both to the personal
property rights of the landlord and the rights that should be accorded to
tenants having regard to the common good. However, the restriction on the right
to recover possession contained in Part IV of the Act of 1960 is not
distinguishable, or capable of being saved, by such considerations. It is an
integral part of the arbitrary and unfair statutory scheme whereby tenants of
controlled dwellings are singled out for specially favourable treatment, both
as to rent and as to the right to retain possession, regardless of whether they
have any social or financial need for such preferential treatment and
regardless of whether the landlords have the ability to bear the burden of
providing such preferential treatment.
42. Even
if Part IV could be said not to be infected with the constitutional infirmity
which invalidates the provisions governing rent control, it could survive the
challenge made to its constitutionality only if it could be held to have been
enacted by the Oireachtas in a manner and in a context that would leave it with
a separate and self-contained existence as a duly enacted measure representing
the law-making will of the Oireachtas:
see
Maher
v.
The
Attorney General
[1973] I.R. 140 (at p. 147);
The
State (Attorney General)
v.
Shaw
[1970] I.R. 317, and the varying views expressed in
King
v.
The
Director of Public Prosecutions
[1981]
I.R. 233
.
43. It
is clear that it was not so enacted. It acquired a legislative existence as an
integral part of a statutory scheme in which controlled dwellings, and only
controlled dwellings, had attached to them restrictions as to rent and as to
the right to recover possession. For the reasons given earlier in this
judgment, those provisions as to rent restriction amount to an unconstitutional
interference with the property rights of the relevant landlords. Even if it
could be held that the restrictions on the right to recover possession
contained in Part IV did not suffer from the same fatal invalidity, those
provisions could not be given a life of their own as representing duly enacted
provisions. The whole of the provisions governing both rent control and right
to possession were enacted (and re-enacted) as a package and, as such, were
intended to have an interconnected statutory operation. It would be impossible
to say that if the Houses of the Oireachtas had been presented with the option
of enacting the restrictions on getting possession of controlled premises that
are contained in Part IV, as a type of control separate and distinct from the
control of the rents of such dwellings, they would have enacted Part IV on its
own. It is a hypothesis that never became a parliamentary choice, express or
implied. It would be impossible, therefore, to say that the Houses of the
Oireachtas ever visualised the existence of Part IV as distinct from Part II.
Neither of those Parts can be deemed to have been given a viable statutory
existence apart from the other.
44. Accordingly,
Part IV must also fall as part of an unconstitutionally unjust attack on the
property rights of the landlords affected.
45. This
decision has the effect that a statutory protection which many thousands of
families relied on for the continuance of the existing tenancies in the
dwellings in which they live is no longer available to them. A ruling of this
nature on the constitutional validity of a particular statutory provision
usually exhausts the functions of this Court. In this instance, however,
because of the special features of the case and the consequences involved, the
Court considers that some further observations are called for.
46. The
removal from the affected tenants of the degree of security of possession and
of rent control which they hitherto enjoyed will leave a statutory void. The
Court assumes that the situation thereby created will receive the immediate
attention of the Oireachtas and that new legislation will be speedily enacted.
Such legislation may be expected to provide for the determination of fair
rents, for a degree of security of tenure and for other relevant social and
economic factors. Pending the enactment of such legislation as may be decided
upon, it may be possible in many cases for agreement to be reached between
landlords and tenants. Where, however, such agreement is not possible, either
because of the tenant’s inability to pay the rent demanded or because of
the landlord’s determination to recover possession, considerable hardship
would be caused in certain cases if possession were obtained by the ejectment
of the tenant. This Court does not wish to pre-empt or prejudge any situation
of litigation that may flow from this judgment. It desires to emphasise,
however, that it is the duty of the Courts to have regard to the basic
requirements of justice when exercising their jurisdiction. In this regard, in
the reasonable expectation of new legislation, when a decree for possession is
sought, the court should, where justice so warrants, in a case where the now
condemned provisions of Part IV would have given a defence against the recovery
of possession, either adjourn the case or grant a decree for possession with
such stay as appears proper in the circumstances.