TaxTMI 
TaxTMI 
TaxTMI 
2002 (4) TMI 960
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....ndlords, under the rent note dated 20-9-1982. The rate of rent agreed upon was ₹ 2000/- per month excluding water and electricity charges. The tenants neither paid nor tendered the arrears of rent from 1st March, 1985. There was a civil litigation relating to partition of joint family properties, including the suit premises, between the members of the family wherein, in terms of an interim order passed by the Civil Court, the tenants had deposited rent at the rate of ₹ 1800/- per month for the period October 1985 to January 1988. In the eviction petition, the landlord prayed for a direction from the Rent Controller to evict the tenants on the ground of non-payment of rent. In the written statement dated 8.1.1992 the tenants admitted to have executed the rent note reciting the rate of rent at ₹ 2000/- per month, other than water and electricity charges, but submitted that the rate of rent so appointed was never intended to be acted upon and the real monthly rent of the premises was ₹ 1800/- only. In the family litigation, to which the tenants were not a party, in terms of the order passed by the Civil Court, rent at the rate of ₹ 1800/- was deposited f....
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.... please be acknowledged." The contents of this letter are neither disowned nor explained and this letter sinks a death-nail into the plea of the tenants. Apart from other evidence available on record, these two material pieces of evidence viz. the deed of lease and tenants' letter abovesaid accompanied by cheques, are enough to overrule the plea of the tenants and to hold that the rate of rent is ₹ 2000/- p.m. The Appellate Authority, in arriving at a finding to the contrary, was deeply impressed by the fact that in the family litigation for partition of the property, the plaintiffs therein had alleged rate of rent of these premises as ₹ 1800/- p.m. and this averment was not disputed by the landlord herein, who was one of the defendants therein. The Appellate Court overlooked some very relevant facts. The plaintiffs in the partition suit were not the landlords realizing the rent; that was the landlord herein who was realizing the rent from the tenants. By an interim order the Civil Court had restrained the tenants from making payment of rent to the litigating parties and had directed the rent to be deposited in the Court so as to be available for distribution ....
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....th so as to remove the same, if we can. The landlord-tenant litigation accounts for a major part of litigation pending in courts of law or before statutory authorities. Also a substantial number of cases consists of those wherein eviction is prayed for on the ground of non-payment of rent or the tenant being a defaulter. The enactment of 1949 Act was preceded by the Punjab Urban Rent Restriction Act 1941 which was intended to restrict unreasonable hike in rent because of shortage of accommodation felt on account of housing properties being requisitioned by the Government to provide accommodation to the families of civil and army officers engaged in the war effort in some capacity or the other. For raising additional revenue to compensate the costs of the war, new tax on the immoveable property was imposed. The 1941 Act was to remain in force only for a period of five years. It was replaced by 1947 Act enacted by the Governor of Punjab in exercise of his powers under Section 93 of the Government of India Act, 1935. Then the country witnessed partition and large scale migration of population between the East and West Punjab. In this wake the 1949 Act was enacted. Statement of Object....
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....ol legislations in different States of the country in these words : "The strain of the last World War, Industrial Revolution, the large scale exodus of the working people to an urban areas and the social and political changes brought in their wake social problems of considerable magnitude and complexity and their connected evils. The country was faced with spiralling inflation, soaring cost of living, increasing urban population any scarcity of accommodation. Racketing and large scale eviction of tenants under the guise of the ordinary law, exacerbated those conditions making the economic life of the community unstable and insecure. To tackle these problems and curb these evils, the Legislatures of the States in India enacted Rent Control legislations." Almost similar necessity existed in the State of Punjab for enacting the 1949 Act as pointed out by this Court in Attar Singh Vs. Inder Kumar AIR 1967 SC 773. The Court observed that the Act is a piece of ameliorative legislation in the interests of tenants of premises in urban areas, so that they may be protected against large increase in rents and from harassment by eviction. It is high time when State of Punjab shou....
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....time so as not to exceed three months in the aggregate". The expression employed is 'the rent due'. A Full Bench of the High Court of Punjab in Rullia Ram Hakim Rai v. S. Fateh Singh S. Sham Sher Singh, AIR 1962 Punjab 256, has taken the view that the expression 'rent due' in contradistinction with the words 'rent legally due' or 'rent recoverable' or the 'arrears of rent within the period of limitation' implies that the obligation of the tenant to pay or tender the rent extends to depositing all the arrears of rent without regard to the period of limitation. This view finds support from a decision of this Court in Khadi Gram Udyog Trust Vs. Shri Ram Chandraji Mandir, 1978 (1) SCC 44, wherein, interpreting the pari materia provision contained in the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, this Court has held that the expression "entire amount of rent due" includes the rent the recovery whereof has become barred by time, for, the statute of limitation bars the remedy but does not extinguish the right. The learned counsel for the tenants conceded during the course of hearing that on the present....
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....r consequences are bound to follow. In Dial Chand v. Mahant Kapoor Chand, 1967 (69) PLR 248, the learned Single Judge of Punjab High Court opined that in the event of there being a dispute as to the quantum of rent, the tenant can take one of the three courses: "He can under protest make payment or tender of the arrears at the rate claimed by the landlord in the ejectment application, and if the rate is found subsequently to be less, he can hope for adjustment of the excess payment. He can come forward with a straight statement of what is the true rate of rent and on that proceed to comply with the proviso, in which case he has the benefit of the proviso, if the finding is that the rate stated by him is the rate of rent for the tenancy. Lastly, he can enter into a dispute with the landlord, as in this case, and insist upon his lower rate of rent and then take the consequence if he is not able to prove that that is the actual rent. If he fails to establish this ground, obviously he fails to have advantage of the proviso." This is too simplistic an approach and defeats the purpose of enactment as would be seen shortly hereafter. In Behari Lal v. Ajudhia Dass, 1970 RCR 7....
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....ears together with the cost of application'. As there is ambiguity and the provision is susceptible to two meanings, the Court should interpret it in the manner which will best serve the object sought to be achieved. In our opinion, if there be a dispute raised as to the quantum of arrears of rent, or as to the rate of rent which would obviously in its turn have an impact on the quantum of arrears, then for the purpose of payment or tender within the meaning of the proviso, the Controller must make an assessment, provisional in nature, and appoint the quantum of arrears including the rate of rent (if necessary) and, calculating the interest and the cost of application. There may be a dispute as to the date on which the monthly rent becomes due according to the contract of tenancy which will also need to be resolved without which the period for which interest at six per cent per annum is liable to be paid would not be capable of being quantified. For two reasons, we consider it necessary to place such an interpretation or the language of the proviso. Firstly, it is in conformity with the object of enactment. The legislation was enacted to protect the tenants from the hands of un....
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....ned by forfeiture for non-payment of rent and the lessor files a suit for ejectment of the lessee, the Court exercises a discretionary jurisdiction of passing an order relieving the lessee against the consequences of forfeiture if at the hearing of the suit the lessee pays or tenders to the lessor the rent in arrears with interest and costs or furnishes such security as the Court thinks sufficient. Having appointed a time for payment, the Court still retains jurisdiction to extend the time (Chandless-Chandless Vs. Nicholson 1942 (2) All ER 315). Even the time appointed by a consent decree can be extended (Smt. Amiya De Vs. Dhirendra Nath Mandal AIR 1971 Calcutta 263). The discretion conferred by Section 114 of TP Act is of wide amplitude guided by the principles of justice, equity and good conscience and the Court would examine the conduct of the parties, the comparative hardship and lean in favour of one whose hands are clean (Namdeo Lokman Lodhi Vs. Narmadabai and Ors. AIR 1953 SC 228. The discretion to grant relief again forfeiture is available not only to the trial court but also to appellate court ( R.S. Lala Praduman Kumar Vs. Virendra Goyal (dead) by his Lrs. And Ors. 1969 (....
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....ay make an order directing the tenant to put the landlord in possession of the building or rented land". Once a case for eviction on one of the grounds under Section 13 has been satisfactorily made out the Controller cannot refuse making an order for delivery of possession to the landlord in purported exercise of discretion spelled out by use of word 'may' because the exercise of discretion would then be termed as arbitrary as that of "knight-errant roaming at will" in the words of Benzamin Cordozo. The fact remains that the legislature has chosen to use the word 'may' and not 'shall' at the end of sub-section (2) while empowering the Controller to make an order for eviction of tenant. The purpose of enacting such a provision as in Section 13(2)(i) proviso, which acts almost in terrorem on the tenant, in several rent control laws is dual. It ensures recovery of rent to the landlord and saves him from the recalcitrant tenant by building pressure on tenant to make payment under pain of eviction. At the same time it protects the tenants from the unscrupulous devices of landlords. Both the purposes are defeated by too simplistic an interpretation....
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....is the date on which the Court applies its mind to the facts and controversy involved in the case. Any date prior to such date would not be date of first hearing. For instance, date for framing of issues would be the date of first hearing when the Court has to apply its mind to the facts of the case. Where the procedure applicable is the one as applicable to Small Cause Courts, there being no provision for framing of the issues, any date fixed for hearing of the case would be the first date for the purpose. The date fixed for filing of the written statement is not the date of hearing. Keeping in view the interpretation so placed on 'the date of first hearing' the obligation cast by the proviso under consideration can be discharged by the Controller on any date fixed for framing of the issues or for hearing. It would be the obligation of the parties to place the relevant material on record, in the shape of affidavits or documents, which would enable the Controller to make a provisional judicial assessment and place it on record to satisfy the spirit of the proviso. It would be desirable if the Rent Controller specifically appoints a date for the purpose of such assessment an....
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....le circumstances which may arise in future litigation and consequently for providing the procedure for them." Sometimes when a difficult situation arises it may demand such directions being made as would pragmatically meet the needs of the situation and resort can be had to the inherent powers of the Court, if need be. Krishna Iyer, J. in The Newabganj Sugar Mills Co. Ltd. and others v. The Union of India and others, (1976) 1 SCC 120, held "The difficulty we face here cannot force us to abandon the inherent powers of the Court to do", and he quoted Jim. R. Carrigam to say - "The inherent power has its roots in necessity and its breadth is co-extensive with the necessity." H.R. Khanna, J. observed in M/s. Jaipur Mineral Development Syndicate, Jaipur v. The Commissioner of I.T., New Delhi, (1977) 1 SCC 508 : "The Courts have power, in the absence of any express or implied prohibition, to pass an order as may be necessary for the ends of justice or to prevent the abuse of the process of the court. To hold otherwise would result in quite a number of cases in gross miscarriage of justice." Jurisdiction to pass procedural orders though not specifically ....
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....t the tenant having complied with provisional order passed by the Controller should not be made to suffer if the finding arrived at by the Controller at the termination of the proceedings be different from the one recorded in the provisional order. While exercising the discretion to make a conditional order of eviction affording the tenant an opportunity of purging himself of the default the Controller may also take into consideration the conduct of the tenant whether he has even after the passing of the provisional order continued to pay or tender the rent to the landlord during the pendency of the proceedings as a relevant factor governing the exercise of his discretion. Such a course would be beneficial to the landlord too as he would be saved from the trouble of filing a civil suit for recovery of rent which fell due during the pendency of proceedings for eviction before the Controller. To sum up, our conclusions are: 1. In Section 13(2) (i) proviso, the words 'assessed by the Controller' qualify not merely the words 'the cost of application' but the entire preceding part of the sentence i.e. 'the arrears of rent and interest at six per cent per annum on s....