Striking off tenant defence for GST default can be set aside after cure, with interim enhanced rent conditions.

Where a tenant's defence is struck off for non-payment of GST under a lease, subsequent deposit of the outstanding GST can remove the basis for the penalty and justify restoration of the right to contest the eviction suit on merits. The Supreme Court also recognised that, when restoring the defence, the tenant may be required to pay enhanced rent as an interim equitable condition if the lease contemplates periodic escalation. The effect is that the suit proceeds on merits, while the tenant remains bound by revised rent payments until final disposal.

---

---

Issues: (i) Whether the order striking off the tenant's defence for non-payment of GST could be sustained after the tenant deposited the balance GST amount; (ii) Whether, while restoring the defence, the tenant could be directed to pay enhanced rent during the pendency of the suit.

Issue (i): Whether the order striking off the tenant's defence for non-payment of GST could be sustained after the tenant deposited the balance GST amount.

Analysis: The defence had been struck off under Section 13(6) of the M.P. Accommodation Control Act, 1961 because the tenant did not deposit the GST component payable under the lease. Since the amount was subsequently deposited pursuant to the Court's earlier direction, the foundation for continuing the penalty no longer survived. The order striking off the defence was therefore examined in the context of the deposited dues and the tenant's entitlement to defend the suit on merits.

Conclusion: The order striking off the defence was set aside and the tenant was permitted to defend the eviction suit.

Issue (ii): Whether, while restoring the defence, the tenant could be directed to pay enhanced rent during the pendency of the suit.

Analysis: The lease itself contemplated periodic enhancement of rent, and the Court balanced the restoration of defence with a direction to pay revised rent at successive rates for the stated periods, continuing at the last revised rate until final disposal of the suit. This was treated as an equitable condition to balance the rights of both sides pending adjudication.

Conclusion: The tenant was directed to pay rent at the enhanced rates fixed by the Court until final disposal of the suit.

Final Conclusion: The tenant's defence was restored, the eviction proceedings were to continue on merits, and the tenant was saddled with interim payment obligations at enhanced rent rates pending disposal of the suit.

Ratio Decidendi: Where the ground for striking off defence is cured by subsequent deposit of the amount in default, the penal order may be set aside and the tenant restored to the right to contest the suit on merits, with appropriate interim monetary conditions if warranted by the lease terms and equities of the case.

---