Supreme Court Dismisses Tenant's Appeal in Rent Control Case — Order for Deposit of Rent Upheld. The court affirmed that an order for deposit of rent under section 15(1) of the Delhi Rent Control Act, 1958, can be made at an interlocutory stage and that the tenant's claims of adjustment against professional fees were unsubstantiated.

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Case Note & Summary

This case involved an appeal by a tenant against an order of the Rent Controller under section 15(1) of the Delhi Rent Control Act, 1958, directing him to deposit arrears of rent. The appellant, an advocate, occupied premises as a tenant since July 28, 1957, at a monthly rent of Rs. 300. The landlord, Seth Kirori Mal Luhariwala, had outstanding income-tax dues, leading to a notice issued to the appellant under section 46(5A) of the Indian Income-tax Act, 1922, directing him to deposit rent with the Income-tax Officer. The Rent Controller ordered the appellant to deposit the rent, which was affirmed by the Rent Control Tribunal and the High Court. The appellant contended that the order was improper as it was made at an interlocutory stage and that he had a right to adjust rent against professional fees owed to him by the landlord. The court analyzed the provisions of the Rent Control Act, concluding that the order was valid and necessary to ensure compliance with rent obligations. The court found that the appellant's claims regarding the adjustment of rent were unsubstantiated and characterized as an afterthought. Ultimately, the appeal was dismissed, and the appellant was granted time to comply with the deposit order.

Headnote

A) Rent Control - Deposit of Rent - Validity of Interlocutory Order - Delhi Rent Control Act, 1958, Section 15(1) - The court held that an order for deposit of rent can be made at an interlocutory stage as it is not a final order but preliminary to the trial. The Rent Controller determined that rent had not been paid and the plea of adjustment against professional fees was deemed an afterthought, justifying the order for deposit (Paras 1-10).

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Issue of Consideration

Whether the order for deposit of rent under section 15(1) of the Delhi Rent Control Act, 1958, was valid at an interlocutory stage.

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Final Decision

The Supreme Court dismissed the appeal, affirming the order of the Rent Controller for the appellant to deposit arrears of rent at Rs. 300 per month from July 1, 1957, and held that the order was made after providing an opportunity for the appellant to be heard.

Law Points

  • Rent Control
  • Interlocutory Orders
  • Deposit of Rent
  • Income-tax Act
  • Tenancy Agreements
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Case Details

Civil Appeal No. 1041 of 1963

1964-01-09

Hidayatullah, J.C. Shah

S.T. Desai, H.N. Sanyal, B.P. Maheshwari

V.N. Vasudeva

Seth Kirori Mal Luhariwala

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Nature of Litigation

Appeal against an order of the Rent Controller regarding deposit of rent.

Remedy Sought

The appellant sought to overturn the order requiring him to deposit rent.

Filing Reason

The appellant contended that the order was made improperly at an interlocutory stage.

Previous Decisions

The Rent Controller's order was affirmed by the Rent Control Tribunal and the High Court.

Issues

Validity of interlocutory order for deposit of rent Right to adjust rent against professional fees

Submissions/Arguments

The appellant argued that the order for deposit of rent should only be made at the end of the case. The respondent contended that the order was valid and necessary to ensure compliance with rent obligations.

Ratio Decidendi

An order for deposit of rent under section 15(1) of the Delhi Rent Control Act, 1958, can be made at an interlocutory stage as it is not a final order but preliminary to the trial.

Judgment Excerpts

The order under sub-section (1) of s. 15 is not a final order but is preliminary to the trial of the case. The plea that it was being withheld under an agreement was an afterthought and not true.

Procedural History

The Rent Controller ordered the appellant to deposit rent, which was affirmed by the Rent Control Tribunal and the High Court. The appellant then appealed to the Supreme Court.

Acts & Sections

  • Delhi Rent Control Act, 1958: 15(1)
  • Indian Income-tax Act, 1922: 46(5A)
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