Bombay High Court Allows Landlord's Interim Application for Market Rent Deposit Pending Civil Revision Against Reversal of Eviction Decree. Tenant directed to deposit market rent as per Atma Ram Properties ratio, with liberty to withdraw by landlord subject to furnishing undertaking.

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

The landlord (original plaintiff) filed a suit for eviction against the tenant, which was decreed by the Trial Court. The tenant appealed to the Appellate Bench of the Court of Small Causes at Bombay. During the appeal, the tenant was directed to deposit market rent as per the ratio in Atma Ram Properties v. Federal Motors (2005) 1 SCC 705. The Appellate Bench reversed the eviction decree, prompting the landlord to file a Civil Revision Application under Section 115 CPC in the High Court. The landlord also filed an Interim Application seeking a direction for the tenant to deposit market rent pending the revision. The High Court admitted the revision on 29 June 2022. The landlord argued that he had a good case on merits and that the tenant, having enjoyed possession, should pay market rent. The tenant opposed, claiming the revision had no merit. The Court, relying on Atma Ram Properties, held that a tenant continuing in possession pending appeal must pay market rent. It directed the tenant to deposit Rs. 15,000 per month from the date of the application, with the landlord permitted to withdraw the amount upon furnishing an undertaking to refund if the revision fails. The application was disposed of accordingly.

Headnote

A) Civil Procedure - Interim Relief - Deposit of Market Rent - Section 115 CPC - Landlord sought direction to tenant to deposit market rent pending Civil Revision Application against reversal of eviction decree - Court held that tenant who continues in possession pending appeal must pay market rent as per Atma Ram Properties (2005) 1 SCC 705 - Tenant directed to deposit Rs. 15,000 per month from date of application, with liberty to landlord to withdraw upon furnishing undertaking (Paras 1-5).

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Issue of Consideration

Whether the tenant should be directed to deposit market rent pending the hearing and final disposal of the Civil Revision Application filed by the landlord against the reversal of the eviction decree.

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Final Decision

Interim Application allowed. Tenant directed to deposit market rent of Rs. 15,000 per month from the date of the application (2022) until further orders. Landlord permitted to withdraw the deposited amount upon furnishing an undertaking to refund if the revision is dismissed.

Law Points

  • Interim relief
  • market rent
  • tenant's right to remain in possession
  • deposit of rent pending appeal
  • Section 115 CPC
  • Atma Ram Properties ratio
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Case Details

2024 LawText (BOM) (01) 179

Interim Application No. 20278 of 2022 in Civil Revision Application No. 280 of 2022

2024-01-18

Rajesh S. Patil

2024:BHC-AS:5364

Mr. Jaydeep Deo for Respondent, Mr. Suresh Sabrad a/w. Mr. Amey Sawant for Applicant

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Nature of Litigation

Interim application in a civil revision arising from a landlord-tenant eviction dispute.

Remedy Sought

Landlord seeks direction to tenant to deposit market rent pending hearing and final disposal of Civil Revision Application.

Filing Reason

Tenant's appeal against eviction decree was allowed by Appellate Bench, reversing the eviction; landlord challenges that order in revision and seeks interim deposit of market rent.

Previous Decisions

Trial Court decreed eviction; Appellate Bench of Small Causes Court reversed the decree; Civil Revision Application admitted on 29 June 2022.

Issues

Whether the tenant should be directed to deposit market rent pending the Civil Revision Application.

Submissions/Arguments

Mr. Sabrad for landlord: Landlord has good case on merits; tenant should pay market rent as per Atma Ram Properties. Mr. Deo for tenant: Revision has no merit; no direction for deposit of market rent should be passed.

Ratio Decidendi

A tenant who continues in possession pending an appeal against an eviction decree must pay market rent, as per the principle in Atma Ram Properties v. Federal Motors (2005) 1 SCC 705.

Judgment Excerpts

This Interim Application is filed by Applicant/Landlord/Original Plaintiff, seeking a prayer to direct the tenant to deposit market rent in this Court pending the hearing and final disposal of the Civil Revision Application. During the pendency of the Appeal before the Appellate Bench, the tenant was directed to deposit market rent as per the ratio laid down by the Supreme Court in case of Atma Ram Properties Vs. Federal Motors, reported in (2005) 1 SCC 705. The Civil Revision Application was 'Admitted' on 29 June 2022 after hearing both the sides. The ratio laid down by the Supreme Court in case of Atma Ram Properties (supra) is squarely applicable to the facts of the present case. Hence, the tenant is directed to deposit market rent of Rs.15,000/- per month from the date of filing of this Interim Application i.e. 2022, till further orders.

Procedural History

Suit for eviction decreed by Trial Court; tenant appealed to Appellate Bench of Small Causes Court; during appeal, tenant directed to deposit market rent; Appellate Bench reversed eviction decree; landlord filed Civil Revision Application under Section 115 CPC, which was admitted on 29 June 2022; landlord then filed this Interim Application for deposit of market rent pending revision.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Section 115
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