Case Note & Summary
The dispute arose from rent and eviction proceedings initiated by a landlord against a tenant concerning a shop in Uttar Pradesh. The tenant had occupied the premises since 1982 at a monthly rent that was increased over time, with the last admitted rent being Rs.250 per month from January 1990. In June 1993, the landlord refused to accept rent, prompting the tenant to deposit the rent in court, which continued thereafter. The landlord served a notice in April 1995 demanding rent from May 1993 onwards and subsequently filed a suit for arrears and eviction, claiming an oral agreement had increased the rent to Rs.275 from May 1993 and Rs.300 from May 1994. The tenant denied any such agreement and maintained that the rent remained Rs.250, which was being duly deposited in court. The core legal issue was whether the tenant was in arrears of rent, justifying eviction under the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. The landlord argued that the tenant defaulted on the enhanced rent, while the tenant contended that the admitted rent was Rs.250 and had been validly deposited in court after refusal. The court analyzed the provisions of the Act, emphasizing that the tenant's deposit of rent in court after the landlord's refusal constituted valid payment, thereby negating any arrears. The court found that the landlord failed to prove the alleged oral agreement for rent enhancement, and thus the admitted rent remained Rs.250. Consequently, the court held that the tenant was not in arrears, setting aside the eviction order and allowing the tenant's appeal.
Headnote
A) Rent Control Law - Arrears of Rent - Eviction Grounds - Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, Section 20(2)(a) - Landlord filed eviction suit alleging tenant defaulted on rent from May 1993 - Tenant claimed rent was Rs.250/month and had been depositing in court after landlord refused acceptance - Court examined whether tenant was actually in arrears - Held that tenant's deposit in court after refusal constituted valid payment and no arrears existed, thus eviction order unsustainable (Paras 1-10). B) Rent Control Law - Rent Enhancement - Burden of Proof - Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 - Landlord claimed oral agreement for yearly rent increase from Rs.250 to Rs.275 then Rs.300 - Tenant denied any such agreement - Court found landlord failed to prove enhancement agreement - Burden of proof for enhanced rent not discharged by landlord - Held that admitted rent remained Rs.250/month (Paras 4-10).
Issue of Consideration
Whether the tenant was in arrears of rent justifying eviction under the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972
Final Decision
Supreme Court allowed the tenant's appeal, set aside the eviction order, and held that the tenant was not in arrears of rent as the deposit in court after landlord's refusal constituted valid payment
Law Points
- Tenant's deposit of rent in court after landlord's refusal constitutes valid payment
- arrears of rent as ground for eviction requires proof of default
- burden of proof for enhanced rent lies on landlord
- procedural compliance with rent deposit provisions protects tenant from eviction
