Bombay High Court Allows Landlord's Petition in Rent Default Case — Eviction Decree Restored. Tenant's failure to pay rent for over six months constitutes wilful default under Section 22(2)(a) of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968.

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

The petitioners, landlords of a commercial premises, sought eviction of the respondent tenant on the ground of default in payment of rent under Section 22(2)(a) of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968. The landlords purchased the property on 19.8.2013 and the tenant attorned tenancy to them. The tenant failed to pay rent from 1.8.2013 to 31.1.2014 despite demands. The Rent Controller, by judgment dated 29.9.2016, granted eviction decree holding that the tenant had wilfully defaulted. The tenant appealed, and the appellate court reversed the decree on 8.7.2020, holding that the default was not wilful. The landlords challenged this reversal in the High Court. The High Court analyzed the evidence and found that the tenant had not paid rent for over six months and had not provided any explanation for the default. The court held that the Rent Controller's findings were based on proper appreciation of evidence and the appellate court had erred in reversing them without valid reasons. The High Court restored the eviction decree, allowing the writ petition.

Headnote

A) Rent Control - Eviction - Wilful Default - Section 22(2)(a) of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968 - Landlord sought eviction of tenant for default in paying rent from 1.8.2013 to 31.1.2014 - Rent Controller granted eviction finding wilful default - Appellate Court reversed holding default not wilful - High Court restored eviction decree, holding that failure to pay rent for over six months without any explanation constitutes wilful default, and appellate court's interference without proper reasoning was perverse (Paras 4-21).

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Issue of Consideration

Whether the appellate court was justified in reversing the eviction decree granted by the Rent Controller on the ground of wilful default in payment of rent.

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Final Decision

The High Court allowed the writ petition, set aside the appellate court's judgment, and restored the eviction decree passed by the Rent Controller.

Law Points

  • Wilful default in payment of rent
  • Eviction on ground of default
  • Burden of proof on tenant to show no wilful default
  • Rent controller's findings of fact not to be lightly interfered with in appeal
  • Appellate court's reversal without proper reasoning is perverse
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Case Details

2022 LawText (BOM) (07) 104

WRIT PETITION NO.415 OF 2021

2022-07-27

Sandeep K. Shinde

2022:BHC-GOA:970

Mr. J. E. Coelho Pereira, Senior Advocate with Mr. S. Karpe, Ms. S. Vaigankar, Mr. A. Shirodkar, Mr. S. Rivankar and Mr. A. Sawant for petitioners; Mr. V. P. Thali and Mr. R. Prabhugaonkar for respondent

Navelkar Hotels, a partnership firm, and others

Shri Anand B. Shirvoikar alias Shri Anand B. Shirvaikar

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Nature of Litigation

Writ petition challenging appellate court's reversal of eviction decree granted by Rent Controller on ground of wilful default in payment of rent.

Remedy Sought

Petitioners/landlords sought restoration of eviction decree passed by Rent Controller.

Filing Reason

Tenant defaulted in paying rent from 1.8.2013 to 31.1.2014 despite demands.

Previous Decisions

Rent Controller granted eviction decree on 29.9.2016; Appellate Court reversed it on 8.7.2020.

Issues

Whether the appellate court was justified in reversing the eviction decree on the ground that the default was not wilful. Whether the Rent Controller's finding of wilful default was perverse or based on proper appreciation of evidence.

Submissions/Arguments

Petitioners argued that the tenant had not paid rent for over six months and had no explanation, constituting wilful default. Respondent argued that the default was not wilful as there was a dispute regarding the landlord's title and the tenant had deposited rent in court.

Ratio Decidendi

Failure to pay rent for over six months without any explanation constitutes wilful default under Section 22(2)(a) of the Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968. The appellate court's interference with the Rent Controller's findings without proper reasoning was perverse and unsustainable.

Judgment Excerpts

Petitioners/landlords seek tenant's eviction on the ground of default in paying the rent. Rent controller vide judgment and order dated 29.9.2016 granted eviction decree. In Rent Appeal no. 13/2016 the appellate Court vide judgment and order dated 8.7.2020 reversed the eviction decree. Thus this petition.

Procedural History

Landlords filed eviction application before Rent Controller on ground of default. Rent Controller granted eviction decree on 29.9.2016. Tenant appealed to appellate court which reversed decree on 8.7.2020. Landlords filed writ petition in High Court challenging reversal.

Acts & Sections

  • Goa, Daman and Diu Buildings (Lease, Rent and Eviction) Control Act, 1968: 22(2)(a)
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High Court Bombay High Court Allows Landlord's Petition in Rent Default Case — Eviction Decree Restored. Tenant's failure to pay rent for over six months constitutes wilful default under Section 22(2)(a) of the Goa, Daman and Diu Buildings (Lease, Rent and Ev...