Bombay High Court Dismisses Tenant's Petition in Rent Arrears Case — Service of Notice and Default in Payment of Rent Upheld. Concurrent findings of trial and appellate courts on tenant's failure to pay rent and valid service of demand notice under Section 12 of Bombay Rent Act, 1947 affirmed.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The case involves a dispute between the legal heirs of the original plaintiff-landlord (Mohamudkhan Kadar Khan Pathan) and the defendant-tenant (original tenant, now represented by legal heirs) over arrears of rent and possession of suit premises (three rooms and enclosed platform at Kazipura, Nashik). The plaintiff claimed to be the sole landlord after a partition of the property owned by late Hafizabi Kadar Khan Pathan, and alleged that the tenant was in arrears of rent from 1 January 1975 to 31 October 1983. The tenant denied the plaintiff's exclusive ownership, claimed to have paid rent to a co-owner (Abdul Gani Khan), and asserted that the demand notice dated 19 November 1983 was not served. The tenant also filed an application for fixation of standard rent. The trial court decreed the suit for possession and arrears of rent, and dismissed the standard rent application. The appellate court confirmed the decree and rejected the tenant's application for additional evidence. In the writ petition, the tenant argued that the notice was not validly served, that payment of property taxes should be adjusted, and that the trial court erred in dismissing the standard rent application. The High Court upheld the concurrent findings, holding that service of notice by refusal at the tenant's school address was valid, the tenant was in default, and the tenant's payment of taxes did not constitute payment of rent. The petition was dismissed.

Headnote

A) Rent Control - Service of Notice - Section 12 Bombay Rent Act, 1947 - Service by Refusal - The court upheld that service of notice by refusal at the tenant's school address, where the tenant was admittedly working, constitutes valid service. The tenant's refusal to accept the notice was proved by the postal endorsement, and the tenant's denial of service was not credible. (Paras 11, 15)

B) Rent Control - Arrears of Rent - Section 12 Bombay Rent Act, 1947 - Default - The tenant was in arrears of rent from 1 January 1975 to 31 October 1983, a period exceeding six months. The tenant's failure to pay rent despite demand and during pendency of suit constituted willful default. Payment of property taxes by tenant does not automatically adjust against rent without landlord's consent. (Paras 3, 7, 12)

C) Rent Control - Standard Rent - Section 11 Bombay Rent Act, 1947 - Time Limit - The trial court's dismissal of the tenant's application for fixation of standard rent was erroneous as there is no prescribed time limit under Section 11 for filing such application. However, the tenant's filing of the application does not cure the default in payment of rent. (Para 14)

D) Civil Procedure - Additional Evidence - Order 41 Rule 27 CPC - Rejection of Application - The appellate court's rejection of the tenant's application for leading additional evidence to prove payment of rent to a co-owner was upheld as the evidence was not relevant to the issue of default vis-à-vis the plaintiff-landlord. (Paras 8, 13)

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Issue of Consideration

Whether the demand notice dated 19 November 1983 was validly served on the defendant-tenant; whether the tenant was in arrears of rent for more than six months; whether the tenant's payment of property taxes and alleged payment to a co-owner could be adjusted against rent; whether the trial court erred in dismissing the application for fixation of standard rent.

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Final Decision

The High Court dismissed the writ petition, upholding the concurrent decrees of the trial court and appellate court. The tenant was directed to hand over vacant possession of the suit premises and pay arrears of rent as decreed.

Law Points

  • Service of notice by refusal is valid service
  • Tenant's failure to pay rent for over six months constitutes default
  • Application for standard rent not a substitute for payment of rent
  • Co-owner's receipt of rent does not absolve tenant of liability to landlord
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Case Details

2024 LawText (BOM) (7) 152

Writ Petition (not specified in text)

2024-07-15

SANDEEP V. MARNE, J.

Mr. Pradeep Thorat (for Petitioners), Mr. Pramod Joshi (for Respondents)

Legal heirs of original defendant-tenant (name not mentioned in text)

Legal heirs of original plaintiff-landlord (name not mentioned in text)

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Nature of Litigation

Civil writ petition challenging concurrent decrees for possession and arrears of rent in a landlord-tenant dispute.

Remedy Sought

Petitioners (legal heirs of original tenant) sought setting aside of decrees passed by trial court and appellate court, and dismissal of the suit for possession and arrears of rent.

Filing Reason

The tenant was in arrears of rent from 1 January 1975 to 31 October 1983, and the plaintiff-landlord sought possession and recovery of arrears.

Previous Decisions

Trial court decreed suit for possession and arrears of rent on 9 April 1987; appellate court dismissed tenant's appeal on 20 July 1994.

Issues

Whether the demand notice dated 19 November 1983 was validly served on the defendant-tenant. Whether the tenant was in arrears of rent for more than six months. Whether the tenant's payment of property taxes and alleged payment to a co-owner could be adjusted against rent. Whether the trial court erred in dismissing the application for fixation of standard rent.

Submissions/Arguments

Petitioners argued that the notice was not served as it was sent to the school address instead of the suit premises, and the postal records were destroyed; that the tenant paid property taxes which should be adjusted; that the tenant paid rent to co-owner Abdul Gani Khan; and that the trial court erred in dismissing the standard rent application. Respondents argued that service by refusal was valid, default was proved, and concurrent findings should not be disturbed.

Ratio Decidendi

Service of a demand notice by refusal at the tenant's place of work constitutes valid service under Section 12 of the Bombay Rent Act, 1947. A tenant's failure to pay rent for over six months, despite valid demand, amounts to default entitling the landlord to possession. Payment of property taxes by the tenant does not automatically adjust against rent without the landlord's consent. An application for fixation of standard rent does not cure the default in payment of rent.

Judgment Excerpts

By this Petition, Petitioner challenges the decree dated 28 July 1994 passed by District Judge, Nashik dismissing Civil Appeal No.91 of 1998 and confirming the decree dated 9 April 1987 passed by the Court of Joint Civil Judge Junior Division, Nashik in Regular Civil Suit No.73 of 1984 and Miscellaneous Application No.279 of 1985. The Trial Court held that Plaintiff is the landlord in respect of the suit premises and that Defendant was in arrears of rent for a period exceeding six months. Mr. Pradeep Thorat, the learned counsel appearing for Petitioners would submit that the Trial Court has erred in decreeing the suit filed by the Plaintiff on the ground of arrears of rent. Mr. Pramod Joshi, the learned counsel appearing for Respondents would oppose the Petition and support the concurrent findings recorded by the Trial and the Appellate Court.

Procedural History

The plaintiff filed Regular Civil Suit No.73 of 1984 for possession and arrears of rent. The trial court decreed the suit on 9 April 1987. The defendant filed Regular Civil Appeal No.91 of 1988, which was dismissed on 20 July 1994. The defendant then filed the present writ petition in the Bombay High Court.

Acts & Sections

  • Bombay Rents, Hotels and Lodging House Rates Control Act, 1947: Section 11, Section 12
  • Code of Civil Procedure, 1908: Order 20 Rule 12(1)(c), Order 41 Rule 27
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