Supreme Court Dismisses Tenant in Rent Control Dispute Due to Non-Compliance with Payment Orders. Tenant Failed to Establish Payment Claims and Showed Willful Default Under Section 15(7) of Delhi Rent Control Act, 1958.

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Case Note & Summary

The case involved a dispute between a tenant and landlord regarding the non-payment of rent for a commercial premises in Karol Bagh, New Delhi. The tenant, M/s. Aero Traders Pvt. Ltd., was renting the premises at a nominal rate of Rs.30 per month. The landlord, Ravinder Kumar Suri, filed for eviction under Section 14(1)(a) of the Delhi Rent Control Act, 1958, citing arrears of rent. The Rent Controller ordered the tenant to pay the arrears and future rent, but the landlord later applied to strike off the tenant's defence due to non-compliance. The tenant claimed to have sent cheques for the rent, but the landlord disputed this, and the Rent Controller found that the tenant had not complied with the order. The Rent Control Tribunal initially modified the Rent Controller's order but was later challenged by the landlord in the Delhi High Court, which restored the original order. The Supreme Court examined the discretionary power of the Rent Controller and found that the tenant had not provided sufficient grounds for the exercise of discretion in his favour. The court noted that the tenant's claims were unsubstantiated and that he had failed to pay even the minimal rent over an extended period. Consequently, the Supreme Court dismissed the appeals with costs quantified at Rs.10,000.

Headnote

A) Rent Control - Striking off Defence - Discretionary Power - Delhi Rent Control Act, 1958, Section 15(7) - The court held that the Rent Controller's discretion to strike off the defence should not be exercised mechanically and requires consideration of the facts. In this case, the appellant failed to establish compliance with rent payment orders and set up a false plea regarding payment, justifying the High Court's restoration of the Rent Controller's order (Paras 5-8).

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Issue of Consideration

Whether the appellant made out any ground for exercising discretion in his favour of not striking out his defence.

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Final Decision

The Supreme Court dismissed the appeals with costs quantified at Rs.10,000, affirming the High Court's decision to restore the Rent Controller's order due to the appellant's failure to comply with rent payment orders.

Law Points

  • Discretionary power of Rent Controller
  • compliance with rent payment orders
  • striking off defence
  • judicial discretion
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Case Details

2004 LawText (SC) (10) 3

Appeal (civil) 6973-6974 of 2004

2004-10-27

R. C. Lahoti, G. P. Mathur, P.P. Naolekar

M/s. Aero Traders Pvt. Ltd.

Ravinder Kumar Suri

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Nature of Litigation

Dispute over eviction and non-payment of rent

Remedy Sought

Restoration of defence against eviction

Filing Reason

Landlord filed for eviction due to arrears of rent

Previous Decisions

Rent Controller's order was initially modified by the Rent Control Tribunal but restored by the High Court

Issues

Grounds for exercising discretion in rent control cases Compliance with rent payment orders

Submissions/Arguments

Appellant claimed compliance with rent payment orders Respondent disputed the claims and sought to strike off defence

Ratio Decidendi

The court held that the discretionary power of the Rent Controller to strike off the defence must be exercised judiciously and not mechanically, requiring consideration of the facts and circumstances of each case.

Judgment Excerpts

The appellant claimed that he had complied with the order and had sent the rent by cheques but the landlord did not encash the same. The High Court was, therefore, perfectly justified in setting aside the order passed by the Rent Control Tribunal and restoring that of the Rent Controller.

Procedural History

The appellant filed an appeal against the Rent Controller's order, which was modified by the Rent Control Tribunal. The landlord then filed a writ petition in the Delhi High Court, which restored the Rent Controller's order, leading to the present appeal in the Supreme Court.

Acts & Sections

  • Delhi Rent Control Act, 1958: Section 14(1)(a), Section 15(1), Section 15(7)
  • Constitution of India: Article 227
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