DELHI CLOTH AND GENERAL MILLS LTD. vs S. PARAMJIT SINGH AND ANOTHER

The Supreme Court upheld the validity of clause (iii) of sub-section (3) of Section 1 of the Jammu and Kashmir Houses and Shops Rent Control Act, 1966, which classifies tenants based on their annual net income. The Court reasoned that the classification serves a legitimate purpose of protecting weaker tenants while encouraging construction by exempting wealthier tenants from the Act's provisions. The Court found that the classification was not arbitrary or discriminatory, thus not violating Article 14 of the Constitution.