Case Note & Summary
The case involves a dispute between a tenant (petitioner) and landlords (respondents) over eviction on the ground of default in payment of rent under Section 12(3)(a) of the Bombay Rents, Hotel and Lodging House Control Act, 1947. The tenant was a monthly tenant of suit premises with an agreed rent of Rs. 8 per month, but the landlords demanded Rs. 11.30 per month, which included education cess. The tenant paid rent regularly but the landlords refused to accept money orders sent for rent and education cess. The trial court dismissed the suit, but the appellate court reversed and passed a decree for eviction under Section 12(3)(a). The tenant challenged this decree in the High Court. The main legal issue was whether education cess, which is payable yearly, can be considered part of monthly rent for the purpose of Section 12(3)(a). The tenant argued that the agreed rent was Rs. 8 per month and the balance was education cess, which is not payable monthly, so Section 12(3)(a) did not apply. The landlords argued that the tenant was in arrears. The High Court analyzed the provisions and held that education cess is not part of monthly rent as it is payable yearly. Therefore, the failure to pay education cess along with monthly rent does not constitute default under Section 12(3)(a). The Court noted that the case falls under Section 12(3)(b), where the tenant had complied by tendering rent and cess separately. The Court allowed the petition, set aside the appellate decree, and restored the trial court's dismissal of the suit.
Headnote
A) Rent Control - Eviction - Default in Payment of Rent - Section 12(3)(a) Bombay Rents, Hotel and Lodging House Control Act, 1947 - Education Cess - The issue was whether education cess, payable yearly, can be treated as part of monthly rent for determining default under Section 12(3)(a). The Court held that education cess is not payable monthly and therefore cannot be considered as part of the monthly rent for the purpose of Section 12(3)(a). The tenant's failure to pay education cess along with monthly rent does not constitute default under Section 12(3)(a). The case falls under Section 12(3)(b) where the tenant had complied with the requirements. (Paras 5-6) B) Rent Control - Eviction - Default in Payment of Rent - Section 12(3)(b) Bombay Rents, Hotel and Lodging House Control Act, 1947 - Education Cess - The Court considered that when the rent is not a standard monthly rent due to inclusion of yearly cess, Section 12(3)(b) applies. The tenant had tendered the rent and education cess separately, and the landlords refused to accept. The Court held that the tenant had complied with Section 12(3)(b) and therefore no decree for eviction could be passed. (Paras 5-6)
Issue of Consideration
Whether the failure to pay education cess along with monthly rent constitutes default under Section 12(3)(a) of the Bombay Rents, Hotel and Lodging House Control Act, 1947?
Final Decision
Writ petition allowed. Impugned judgment and decree of the appellate court set aside. Decree of the trial court dismissing the suit restored.
Law Points
- Education cess is not part of monthly rent
- Section 12(3)(a) default requires non-payment of rent as agreed monthly
- Section 12(3)(b) applies when rent is not standard monthly
- tenant's tender of rent with education cess separately may not be default
