Supreme Court Examines Scope of Tenant's Deposit Obligation Under Section 11(2)(c) of Kerala Buildings (Lease & Rent Control) Act, 1965 to Vacate Eviction Order. Question Involves Whether Deposit Must Cover Only Arrears Quantified in Eviction Order or Also Subsequent Arrears Accrued Before Deposit.

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Case Note & Summary

The litigation arose from a landlord-tenant dispute concerning a residential building in Palakkad Taluk, Kerala. The tenant had taken the premises on lease at Rs.20 per month from 1.8.1972. Alleging default in payment of rent from 1.6.1975, the landlord issued a termination notice on 22.6.1977 and filed an eviction petition under Sections 11(2) and 11(3) of the Kerala Buildings (Lease & Rent Control) Act, 1965. The Rent Control Court rejected the bona fide need ground but ordered eviction under Section 11(2)(b) on the ground of default, quantifying arrears as Rs.540 as on 1.2.1980, with interest and costs, and granting the tenant the right to vacate the order by depositing that amount. After an initial remand, the Rent Controller's order dated 22.2.1980 required the tenant to surrender possession within 30 days unless she deposited Rs.540 with interest and costs. The tenant's appeal was dismissed and the revisional court by order dated 24.3.1982 allowed the tenant to deposit by 24.5.1982. On 6.4.1982, the tenant filed I.A. No.764/82 and deposited Rs.750, seeking vacation of the eviction order under Section 11(2)(c). The Rent Controller dismissed the application on 4.8.1983, and the appellate authority affirmed on 14.12.1984. The District Judge in revision R.C.R.P. No.6 of 1985 set aside those orders and the eviction order on 31.7.1986, holding that the tenant had fully complied with the quantified deposit and that the Rent Controller could not consider arrears that accrued after the eviction order. The landlord challenged that order in O.P. No.10288/88 before the Kerala High Court under Article 227 of the Constitution. The High Court, by judgment dated 27.10.1994, set aside the District Judge's order and restored the orders of the Rent Controller and appellate authority, granting the tenant three months to surrender. The High Court held, following Chellamma Varghese v. Cicey (1994 (2) KLT 106), that 'arrears of rent' in Section 11(2)(c) meant the entire arrears due as on the date of deposit, including arrears accrued subsequent to the eviction order. The Supreme Court framed the precise question for decision: whether the deposit under Section 11(2)(c) should be only the amount specified in the eviction order under Section 11(2)(b) or also the arrears of rent that accrued subsequent to that order up to the date of deposit. The Court referred to Sections 11(2)(a), (b), (c), and 12(1) and (2) of the Act. The provided judgment text ends before the Supreme Court's final reasoning and conclusion, so the final decision and ratio decidendi are not available in the excerpt.

Headnote

A) Rent Control and Eviction - Vacation of Eviction Order on Deposit of Arrears - Scope of 'arrears of rent' under Section 11(2)(c) - Kerala Buildings (Lease & Rent Control) Act, 1965, Sections 11(2)(b), 11(2)(c), 12(1), 12(2) - The tenant was ordered to be evicted for default in rent under Section 11(2)(b), with quantification of arrears as Rs.540 plus interest and costs; the tenant later deposited Rs.750 and sought vacation under Section 11(2)(c). The District Judge held that only the amount specified in the eviction order needed to be deposited and that subsequent arrears could not be considered, while the High Court held that 'arrears of rent' in Section 11(2)(c) meant entire arrears due as on date of deposit, including subsequent rent, relying on Chellamma Varghese v. Cicey. The Supreme Court framed the question whether deposit must include only the amount quantified in the eviction order or also arrears accrued subsequently; the provided text ends before the final holding (Paras 4-5).

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Issue of Consideration

What is the amount that should be deposited by the tenant under Section 11(2)(c) of the Kerala Buildings (Lease & Rent Control) Act, 1965 to set aside an order passed under Section 11(2)(b) - only the amount specified in the eviction order or also arrears of rent that accrued due subsequent to that order up to the date of deposit?

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Law Points

  • Section 11(2)(c) of Kerala Buildings (Lease & Rent Control) Act
  • 1965 requires deposit of arrears of rent with interest and costs within one month to vacate eviction order
  • Section 12 requires deposit of admitted arrears during pendency of proceedings
  • expression 'arrears of rent' interpreted by High Court as entire arrears due as on date of deposit
  • District Court held Rent Controller cannot consider arrears accrued after eviction order
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Case Details

1995 LawText (SC) (10) 5

1995-10-13

Paripoornan, K.S.(J), Ahmadi A.M. (CJ), Sen, S.C. (J)

1996 AIR 363 1995 SCC (6) 491 JT 1995 (7) 276 1995 SCALE (5)727

Chinnamma

Gopalan and Others

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Nature of Litigation

Eviction proceedings under the Kerala Buildings (Lease & Rent Control) Act, 1965, involving tenant's application to vacate an eviction order by deposit of arrears.

Remedy Sought

The tenant sought to vacate the eviction order dated 22.2.1980 by depositing Rs.750 and filing an application under Section 11(2)(c) of the Act; the landlord sought to uphold the eviction and challenged the District Judge's order allowing vacation.

Filing Reason

Landlord alleged default in payment of rent from 1.6.1975, sent termination notice on 22.6.1977, and filed eviction petition under Sections 11(2) and 11(3) of the Act.

Previous Decisions

Rent Controller allowed eviction under Section 11(2)(b) on 22.2.1980, quantifying arrears as Rs.540 with interest and costs; tenant's appeal dismissed on 21.7.1981; revisional court on 24.3.1982 allowed deposit by 24.5.1982; tenant deposited Rs.750 on 6.4.1982; Rent Controller dismissed application on 4.8.1983; appellate authority affirmed on 14.12.1984; District Judge in R.C.R.P. No.6/1985 set aside those orders and eviction order on 31.7.1986; Kerala High Court in O.P. No.10288/88 set aside District Judge's order on 27.10.1994 and restored lower orders.

Issues

Whether the deposit under Section 11(2)(c) of the Kerala Buildings (Lease & Rent Control) Act, 1965 should be only the amount quantified in the eviction order under Section 11(2)(b) or also arrears of rent that accrued subsequent to that order up to the date of deposit.

Submissions/Arguments

The tenant's position, as accepted by the District Judge, was that the amount specified in the eviction order dated 22.2.1980 was fully deposited and no further arrears could be considered in an application under Section 11(2)(c). The landlord's position, as accepted by the High Court, was that 'arrears of rent' in Section 11(2)(c) meant entire arrears due as on the date of deposit, including arrears accrued subsequent to the eviction order, in view of Section 12 of the Act.

Judgment Excerpts

The short question that arises for our consideration is what is the amount that should be deposited by the tenant under Section 11(2)(c)of the Act to set aside the order passed under Section 11(2) (b) of the Act. Should the deposit be only of that amount which was specified as payable in the order of eviction passed under Section 11(2) (b) of the Act or will it take within its fold even the arrears of rent that accrued due subsequent to the said order of eviction and upto the date of deposit? The learned District Judge has found that the amount of Rs. 750/- will cover the amount quantified specifically by the Rent Controller in the order dated 22.2.1980. The expression 'arrears of rent' in Sec. 11(2) (c) of the Act (was held to mean) will be the 'entire arrears of rent due' as on the date of deposit under that sub clause in the context of section 12 of the Act.

Procedural History

Landlord sent notice on 22.6.1977, filed R.C.P. (O.P.) No. 141/77; Rent Controller initially ordered eviction under Section 11(2)(b) with default deposit of Rs.820 by 30.11.1978; tenant appealed R.C.A. 8/79, appellate authority remanded; after remand Rent Controller passed order 22.2.1980 requiring deposit of Rs.540 with interest and costs; tenant's appeal R.C.A. 40/1980 dismissed 21.7.1981; revisional authority District Court R.C.R.P. 53/1981 by order 24.3.1982 allowed deposit by 24.5.1982; tenant filed I.A. 764/82 on 6.4.1982 depositing Rs.750; Rent Controller dismissed 4.8.1983; appellate authority dismissed 14.12.1984; District Judge in R.C.R.P. 6/1985 on 31.7.1986 set aside lower orders and eviction order; landlord filed O.P. 10288/88 in High Court; High Court by judgment 27.10.1994 under Article 227 set aside District Judge's order and restored Rent Controller/appellate authority orders, granting three months to surrender.

Acts & Sections

  • Kerala Buildings (Lease & Rent Control) Act, 1965: Section 11(2), Section 11(3), Section 12(1), Section 12(2), Section 18
  • Constitution of India: Article 227
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