Supreme Court Dismisses Tenant's Appeal in Eviction Case Due to Non-Exercise of Adjustment Option. Tenant's Claim for Adjustment of Excess Rent Payments Fails as No Request was Made to Landlord.

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Case Note & Summary

The dispute arose from a suit filed by the landlord for the eviction of the tenant on grounds of bona fide requirement, default in rent payment, and wrongful use of the premises. The trial court and appellate court decreed eviction based on the first two grounds. The tenant contended that he had paid an advance of Rs. 300 and claimed that Rs. 180 should be adjusted towards rent arrears, along with an excess payment of Rs. 10 per month for 33 months. Both lower courts found no proof of the advance payment and ruled that the tenant could not benefit from the excess rent without exercising his option under Section 8(2) of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1977. The High Court upheld this decision, leading to the tenant's appeal to the Supreme Court. The Supreme Court dismissed the appeal, stating that the tenant could not seek adjustment of excess payments without formally requesting the landlord to do so. The court emphasized that the tenant's failure to exercise his option for adjustment barred him from contesting the eviction based on non-payment of rent. The court also noted that the principle of 'in pari delicto' applied, as both parties had contravened the Act by agreeing to the excess payment. The appeal was dismissed without costs.

Headnote

A) Landlord-Tenant Law - Eviction for Non-Payment of Rent - Tenant's Liability for Eviction - Bihar Buildings (Lease, Rent and Eviction) Control Act, 1977, Sections 4, 7, 8 - The tenant was held liable for eviction due to non-payment of rent despite having paid excess rent, as he did not exercise his option for adjustment of excess payments towards arrears. The court affirmed that without a request for adjustment, the tenant could not claim such a right in eviction proceedings. Held that the tenant's failure to call upon the landlord for adjustment precluded his defense against eviction (Paras 308B-309E).

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Issue of Consideration

Whether the tenant was entitled to adjustment of excess rent payments towards arrears without exercising the option for such adjustment.

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Final Decision

The Supreme Court dismissed the appeal, affirming the lower courts' decisions that the tenant could not seek adjustment of excess payments without formally requesting the landlord to do so.

Law Points

  • Eviction
  • Rent Arrears
  • Adjustment of Excess Rent
  • Bihar Buildings (Lease
  • Rent and Eviction) Control Act
  • 1977
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Case Details

1988 LawText (SC) (08) 2

Civil Appeal No. 977 of 1986

1988-08-09

Natarajan, S., Pathak, R.S.

1988 AIR 1821, 1988 SCR Supl. (2) 303, 1988 SCC (4) 215, JT 1988 (3) 402, 1988 SCALE (2) 387

M.P. Jha, S.N. Jha

Nand Lal Agarwal

Ganesh Prasad Sah & Ors.

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Nature of Litigation

Eviction suit filed by landlord against tenant.

Remedy Sought

Landlord sought eviction of tenant.

Filing Reason

Tenant defaulted in payment of rent.

Previous Decisions

Trial and appellate courts decreed eviction based on non-payment of rent.

Issues

Whether the tenant was entitled to adjustment of excess rent payments towards arrears without exercising the option for such adjustment.

Submissions/Arguments

The appellant argued that excess payments should be adjusted towards arrears without a formal request. The respondent contended that the tenant's failure to exercise his option barred any claim for adjustment.

Ratio Decidendi

The tenant must exercise the option for adjustment of excess rent payments to avoid eviction for non-payment of rent; failure to do so precludes such a defense.

Judgment Excerpts

Without the tenant calling upon the landlord to adjust the excess payments towards the arrears of rent, he cannot seek such a right in the suit filed by the tenant by way of defence in the suit for eviction. The High Court had therefore not erred in any manner in refusing to countenance the appellant’s plea regarding the adjustment of the excess payment made by him towards arrears of rent.

Procedural History

The appeal was filed against the judgment of the Patna High Court confirming the decree for eviction passed by the lower courts.

Acts & Sections

  • Bihar Buildings (Lease, Rent and Eviction) Control Act: 4, 7, 8
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