High Court of Bombay Dismisses Tenant's Writ Petition in Rent Control Eviction Case — Tenant Held to be in Arrears of Rent for More Than Six Months. Lower appellate court's decree under Section 12(3)(a) of the Bombay Hotels & Lodging Rent Control Act, 1947, upheld as tenant failed to comply with demand notice within one month.

High Court: Bombay High Court In Favour of Prosecution
  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The judgment arises from a writ petition filed by the tenant challenging the appellate decree of eviction under the Bombay Hotels & Lodging Rent Control Act, 1947. The respondent landlord had filed a suit in the Small Causes Court at Bombay for possession on the ground of default in payment of rent. The tenant had been occupying one room in Pathare House since 1952 at a monthly rent of Rs.14. In 1976, the landlord issued a notice terminating the tenancy and demanding arrears of rent, alleging that the tenant had not paid any rent since the inception. The tenant disputed this, claiming regular payment but no receipts, and claimed that she had sent a money order for arrears from June to November 1975 which the landlord refused. The trial court dismissed the suit, holding that the tenant was in arrears for only one month and was ready and willing to pay. On appeal, the appellate bench of the Small Causes Court reversed this, finding the tenant in arrears for more than six months and failing to comply with the demand notice, thus decreeing eviction under Section 12(3)(a). Aggrieved, the tenant approached the High Court under Article 227. The core issues were whether the tenant was in arrears of rent for more than six months, whether the refusal of the money order constituted valid tender and absolved default, and whether the decree under Section 12(3)(a) was proper when the tenant claimed readiness and willingness. The tenant argued that the landlord's claim of 24 years of non-payment was absurd, that she had paid cash without receipts, and that the refused money order amounted to payment. She relied on precedent that refusal of rent by money order means the tenant is not in arrears. The landlord contended that the appellate court's finding was not perverse, the tenant had not paid within one month of the demand notice, and thus Section 12(3)(a) was attracted. The High Court examined the rival contentions and the evidence. It noted that the appellate court had thoroughly reappreciated the evidence and concluded that the tenant was in arrears for more than six months from the date of the demand notice. The tenant's reliance on the refused money order was insufficient because the tender did not cover the entire period of default, and the tenant had not paid the arrears within the statutory one-month period. The court distinguished the cited judgments, holding that the principle of deemed payment upon refusal applies only when the tenant has tendered the full amount due. Since the tenant was in default for a period beyond what she tendered, she could not claim the benefit of Section 12(3)(b) or avoid the consequences of Section 12(3)(a). The finding of the appellate court was not shown to be perverse or suffering from any patent legal error. The writ petition was dismissed, and the decree for eviction under Section 12(3)(a) was confirmed.

Headnote

A) Rent Control - Eviction on ground of arrears - Default in payment - Bombay Hotels & Lodging Rent Control Act, 1947, Section 12(3)(a) - The landlord issued a demand notice for arrears of rent; the tenant failed to pay within one month. The lower appellate court found the tenant in arrears for more than six months and non-compliant with the notice. Held that the landlord was entitled to a decree for possession under Section 12(3)(a) and the writ court would not interfere with this finding unless perverse. (Paras 8, 15)

B) Rent Control - Tender of rent - Refusal of money order - Deemed payment - Bombay Hotels & Lodging Rent Control Act, 1947 - The tenant sent a money order for partial arrears which the landlord refused. The tenant relied on Suka Ishram Chaudhari v. Jamnabai (AIR 1972 Bom 273) to argue deemed payment and absence of arrears. The court rejected this, holding that the tenant was still in arrears for a longer period and the tender did not cover the full dues, hence the protection of Section 12(3)(b) was not available. (Paras 12, 13)

C) Constitutional Law - Writ jurisdiction - Interference with appellate orders - Article 227 of the Constitution of India - The High Court, exercising writ jurisdiction, declined to re-appreciate evidence or substitute its view unless the lower appellate order was perverse. The finding that the case fell under Section 12(3)(a) was based on evidence and was not perverse. Held that the writ petition was liable to be dismissed. (Para 15)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the lower appellate court correctly applied Section 12(3)(a) of the Bombay Hotels & Lodging Rent Control Act, 1947, in decreeing the suit for eviction when the tenant had sent a money order for part of the arrears which the landlord refused, and the trial court had held the tenant not in arrears

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The writ petition is dismissed. The decree for eviction passed by the lower appellate court under Section 12(3)(a) of the Bombay Hotels & Lodging Rent Control Act, 1947 is confirmed.

Law Points

  • Eviction for default in payment of rent under Section 12(3)(a) of Bombay Rent Act requires tenant to pay arrears within one month of demand notice
  • refusal of money order by landlord does not constitute deemed payment if arrears exceed amount tendered
  • writ court will not interfere with findings of fact by lower appellate court unless perverse
Subscribe to unlock Law Points Subscribe Now

Case Details

2005 LawText (BOM) (08) 195

Writ Petition No. 3609 of 1997

2005-08-25

Smt. Ranjana Desai, J.

Mr. V.R. Sutrale for petitioner, Mr. G.V. Murti with Ms. Mamta Shah for respondent

Smt. Gangubai Muneshvar Magaji

L.B. Pathare

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Eviction suit filed by landlord against tenant for default in payment of rent under the Bombay Hotels & Lodging Rent Control Act, 1947.

Remedy Sought

The landlord sought possession of the suit premises and recovery of arrears of rent.

Filing Reason

The landlord alleged that the tenant failed to pay rent since inception of tenancy in 1952 and despite termination notice dated 30-01-1976 and demand for arrears, the tenant did not pay or vacate.

Previous Decisions

The trial court dismissed the suit, holding that the tenant was in arrears for only one month and was ready and willing to pay. On appeal, the lower appellate court reversed and decreed the suit under Section 12(3)(a), finding the tenant in arrears for more than six months and not complying with the demand notice. The tenant then filed this writ petition challenging the appellate decree.

Issues

Whether the lower appellate court was justified in reversing the trial court's finding that the tenant was in arrears of rent for only one month. Whether the tenant's sending of money order which was refused by the landlord constitutes deemed payment and absolves the tenant from being in arrears. Whether the decree under Section 12(3)(a) of the Bombay Rent Act was proper when the tenant failed to comply with the demand notice within one month.

Submissions/Arguments

Petitioner (tenant): Landlord failed to prove arrears from inception; landlord did not maintain records or issue receipts; tenant sent rent via money order for June-November 1975 which landlord refused, so deemed payment; landlord's story of 24 years without rent is improbable; tenant was in arrears for only one month (December 1975) so case falls under Section 12(3)(b) not (a); relied on Suka Ishram Chaudhari v. Jamnabai (refusal of money order means not in arrears) and Shantilal Jaywantrai v. Rampal Shivram (money order refusal is legal tender); tenant is old and poor, willing to pay arrears in court. Respondent (landlord): Judgment of lower appellate court is not perverse and should not be interfered under writ jurisdiction; evidence shows case falls under Section 12(3)(a) as tenant was in arrears for more than six months and did not comply with demand notice; relied on Supreme Court judgment in Shah Dhansukhlal Chaganlal v. Dalichand Virchand Shroff, Jaywant S. Kulkarni v. Minocher Dosabhai Shroff, and Gokuldas Jamnadas v. Ahamedmiya Sarole.

Ratio Decidendi

In a suit for eviction on ground of arrears of rent under the Bombay Rent Act, if the tenant fails to pay the entire arrears within one month of the demand notice as required by Section 12(3)(a), the landlord is entitled to a decree for possession. The refusal of a money order tendering only a part of the arrears does not constitute valid tender or deemed payment. The High Court in writ jurisdiction will not interfere with findings of fact by the lower appellate court unless they are perverse or vitiated by error of law.

Judgment Excerpts

The lower appellate court by its judgment and order dated 4/2/97 reversed the trial court’s judgment. The lower appellate court held that the plaintiff had proved that the defendant was in arrears of rent for more than six months from the date of the demand notice; that the defendant had failed and neglected to comply with the demand notice within one month as contemplated under the Rent Act and that the plaintiff was entitled for a decree under the Rent Act. Suka Ishram Chaudhari v. Jamnabai Ranchodas Gularathi & Ors., AIR 1972 BOMBAY 273 where this court has held that if a landlord refuses to accept rent sent by money order the tenant cannot be said to be in arrears of rent nor can the tenant be said to be not ready and willing to pay rent.

Procedural History

1. The landlord filed R.A.E. & R. Suit No. 2043 of 1976 in the Small Causes Court at Bombay under Section 12(2) of the Bombay Rent Act for possession based on default in payment of rent. 2. The trial court dismissed the suit, holding that the tenant was in arrears for only one month and was ready and willing to pay. 3. The landlord appealed to the appellate bench of the Small Causes Court (Appeal No. 10 of 1993). 4. The appellate court allowed the appeal, reversed the trial court’s findings, and decreed the suit under Section 12(3)(a) of the Bombay Rent Act. 5. The tenant filed Writ Petition No. 3609 of 1997 in the High Court of Bombay challenging the appellate decree.

Acts & Sections

  • Bombay Hotels & Lodging Rent Control Act, 1947: 12(2), 12(3)(a), 12(3)(b)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Bombay Dismisses Tenant's Writ Petition in Rent Control Eviction Case — Tenant Held to be in Arrears of Rent for More Than Six Months. Lower appellate court's decree under Section 12(3)(a) of the Bombay Hotels & Lodging Rent Control A...
Related Judgement
High Court Bombay High Court Dismisses Winding Up Petition by Association Against Member Company for Unpaid Guarantee Amounts. Association's claim for winding up under Sections 433 and 434 of Companies Act, 1956 fails as debt is disputed in good faith and subst...