High Court of Bombay at Aurangabad Considers Civil Revision on Willful Default in Rent under Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954. Tenant Challenges Concurrent Eviction Orders, Arguing Joint Family Tenancy and Non-Willful Default.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The matter arose from a civil revision application filed before the High Court of Judicature at Bombay, Aurangabad Bench, challenging concurrent decisions of the Rent Controller and the District Court under the Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954. The respondent-landlord initiated proceedings alleging that the revision applicant, who had executed a rent note on 27 January 1996 at a monthly rent of Rs. 400, committed willful default in paying rent from 1 January 1996 to 30 September 1998. The landlord issued a termination notice dated 7 September 1998. The revision applicant resisted the eviction petition on the ground that he was not the tenant; rather, his father was the tenant and the family lived as a joint Hindu family. He asserted that his father had regularly tendered rent through money orders, which the landlord refused, and therefore no willful default occurred. The Rent Controller, by order dated 23 May 2007, allowed the eviction petition, holding the revision applicant liable for willful default. The revision applicant’s appeal (Rent Appeal No. 2 of 2007) was dismissed by the Principal District Judge, Beed, on 30 August 2011, confirming the findings. Aggrieved, the revision applicant preferred the present civil revision application. Before the High Court, the applicant’s counsel contended that the notice sent by the landlord was addressed to both the applicant and his father, indicating the father’s subsisting tenancy; that money orders were sent but refused; that no willful default existed; and that the proviso to Section 15 of the Act, which allows a tenant to pay arrears within fifteen days, should have been applied. The applicant also relied on several judgments of the Bombay High Court and the Supreme Court to argue that willful default must be intentional and conscious, and that refusal of tender precludes a finding of willful default. The respondent’s counsel countered that the rent note conclusively proved the applicant’s tenancy, that the father’s money orders were rightly refused because he was no longer the tenant, and that the applicant never tendered rent himself, thereby demonstrating deliberate and willful default. It was further argued that the proviso to Section 15 could not be invoked because the applicant consistently denied being a tenant. The High Court heard both sides and reserved judgment on 4 July 2012, pronouncing it on 13 July 2012. The provided text of the judgment does not include the court’s final analysis, reasoning, or operative directions, thus the outcome of the revision application, the determination of the legal issues, and the final order are not ascertainable from the available excerpt. The lower courts’ concurrent findings of willful default and the applicability of the proviso to Section 15 remained the core issues before the High Court.

Headnote

A) Rent Control – Willful Default – Tenancy – Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954, Section 15 – The dispute centered on whether the revision applicant, who executed a rent note dated 27-01-1996, was the tenant, or whether his father was the tenant as a joint Hindu family, and whether the default in rent payment was willful. The landlord claimed the applicant was tenant and defaulted from 01-01-1996 to 30-09-1998; the applicant argued his father was tenant, rent was tendered by money order and refused, hence no willful default. (Paras 3-6, 8)

B) Rent Control – Proviso to Section 15 – Applicability – Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954, Proviso to Section 15 – The applicant sought benefit of the proviso allowing payment of arrears within 15 days to avoid eviction, but the landlord contended that since the applicant denied being a tenant, the proviso could not apply. The court was called upon to consider whether the proviso could be invoked in such circumstances. (Paras 7, 8)

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Issue of Consideration

Whether the revision applicant was a tenant and committed willful default in payment of rent; whether the proviso to Section 15 of the Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 is applicable despite denial of tenancy; whether the concurrent findings of the courts below are perverse and warrant interference in revision.

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Case Details

2012 LawText (BOM) (07) 24

Civil Revision Application No.22 of 2012

2012-07-13

S.S. Shinde

Mr. G.R. Sayyed for revision applicant, Mr. D.P. Deshpande for respondent

Sitaram s/o Shriramji Bhandari

Bhagwan s/o Rangnath Ashtekar

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Nature of Litigation

Civil revision against eviction order

Remedy Sought

Setting aside eviction order and dismissal of landlord's eviction petition

Filing Reason

Alleged error in concurrent findings of willful default

Previous Decisions

Rent Controller allowed eviction on 23-05-2007; Rent Appeal No.2 of 2007 dismissed by District Judge, Beed on 30-08-2011, confirming eviction.

Issues

Whether the revision applicant was a tenant and committed willful default in payment of rent Whether the proviso to Section 15 of the Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 is applicable despite denial of tenancy Whether the concurrent findings of the courts below are perverse and warrant interference in revision

Submissions/Arguments

Revision applicant contended he was not the tenant; his father was tenant and they were a joint Hindu family; rent tendered by father via money order and refused, hence no willful default. Applicant argued that the proviso to Section 15 should apply and that the courts below erred in not giving opportunity to deposit arrears. Respondent argued that rent note executed by applicant on 27-01-1996 proved his tenancy; father's money orders rightly refused; applicant never tendered rent; default was deliberate and willful. Respondent further contended that the proviso to Section 15 cannot be invoked when the applicant denies tenancy.

Judgment Excerpts

The revision applicant herein, is the tenant and the respondent herein, is the landlord. It is the case of the respondent landlord that, though there is no provision to deposit the rent amount before the Rent Controller, the father of the revision applicant filed an application with the Rent Controller for depositing the arrears towards rent. The learned Counsel for the revision applicant submits that, notice sent by the respondent-land lord dated 12th August, 1996 is addressed to the applicant and his father and that itself indicates that, father's status as a tenant is intact. proviso to section 15 cannot be applied to the present case. It is submitted that, proviso to section 15 could not have been invoked since the revision applicant is consistently saying that, he is not tenant of the suit premises.

Procedural History

Landlord filed eviction petition before Rent Controller; Rent Controller allowed eviction on 23-05-2007; tenant filed Rent Appeal No.2 of 2007 before District Court, Beed, which dismissed appeal on 30-08-2011; tenant filed Civil Revision Application No.22 of 2012 in High Court; High Court heard and reserved judgment on 04-07-2012, pronounced on 13-07-2012.

Acts & Sections

  • Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954: Proviso to Section 15
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