Bombay High Court Allows Tenant in Rent Default Dispute — Eviction Decree Set Aside Due to Insignificant Arrears and Pending Standard Rent Determination. Court Restores Trial Court's Dismissal of Eviction Suit Finding No Default in Payment of Rent.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

This writ petition under Article 227 of the Constitution of India challenged an appellate eviction decree passed on the ground of rent default. The case arose from a suit for possession filed by the respondent-landlords against the petitioner-tenants before the trial court. The trial court dismissed the suit on all grounds, including default, unauthorized structure, bonafide need, and nuisance, by its judgment dated 29 November 1986. The landlords appealed to the District Court, Pune. The lower appellate court partly allowed the appeal, granting a decree for eviction solely on the ground of default, while the other grounds were not pressed. The appellate court reasoned that even after adjusting an excess deposit of Rs. 45.80 from earlier proceedings, a balance of Rs. 2.20 remained unpaid, indicating that the tenant was not in receipt of the full rent for six months from the date of demand notice. The tenants filed the present writ petition seeking to set aside the appellate order. At the final hearing, counsel for the petitioners had withdrawn due to lack of instructions, but the court proceeded in the interest of justice. The High Court examined the appellate court's reasoning and noted that the petitioner-tenants had replied to the demand notice and had an application for fixation of standard rent pending even before the demand notice was issued. The tenants had been depositing rent in court, and against the demand period, they had deposited Rs. 927, which was in excess. The Court observed that the appellate court's own finding that the tenant was not in arrears of rent for more than six months was contradicted by its decree based on a shortfall of Rs. 2.20. The High Court held that such a trivial sum could not justify eviction, especially when a standard rent dispute was pending and the tenant had demonstrated willingness to pay by depositing rent in court. Consequently, the Court set aside the impugned appellate judgment dated 6 April 1990 and restored the trial court's dismissal of the suit. The writ petition was allowed with rule made absolute, and no order as to costs.

Headnote

A) Landlord and Tenant - Eviction on Ground of Default - Default requiring six months' arrear not proved - Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Sections not specified in judgment) - The appellate court granted eviction due to a shortfall of Rs. 2.20 after adjusting excess deposit. The High Court set aside the decree, noting the tenant had a pending standard rent fixation application and had deposited rent in excess, thus no default under the Act. Held: Eviction on ground of default is not justified where arrears are trivial and tenant had sought standard rent determination. (Paras 1-7).

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Issue of Consideration

Whether the appellate court erred in granting a decree of possession on the ground of default when the tenant was not in arrears of rent for more than six months, had a pending application for fixation of standard rent, and had deposited rent in excess?

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Final Decision

Writ Petition allowed. Impugned judgment dated 6/4/1990 set aside; trial court's judgment dated 29/11/1986 restored. No order as to costs.

Law Points

  • eviction on ground of default requires arrears of rent for at least six months
  • minor shortfall of rent after adjusting excess deposit does not constitute default
  • pending application for fixation of standard rent negates willful default
  • Article 227 of the Constitution of India provides supervisory jurisdiction over subordinate courts
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Case Details

2005 LawText (BOM) (07) 184

Writ Petition No. 2216 of 1990

2005-07-08

Anoop V. Mohta, J.

Mr. Aniket Aher Sawant, Mr. A.V. Anturkar, Mrs. Suhasini Mutalik

Smt. Shantibai Vithal Saswade and Dattatraya Vithal Saswade

Smt. Yamunabai Purshottam Waikar (since deceased) by her heirs: 1. Waman Keshav Yevalekar, 2. Jagnnath Madhav Pavtekar (W.P. dismissed on 23/2/98), 3. Digambar Pandurang Pavtekar

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Nature of Litigation

Landlord-tenant dispute involving eviction suit on grounds of default in payment of rent.

Remedy Sought

Petitioners-tenants sought to set aside the appellate court's eviction decree and restore the trial court's dismissal of the suit.

Filing Reason

Appellate court allowed landlord's appeal and directed tenants to vacate on ground of default in rent payment.

Previous Decisions

Trial court dismissed eviction suit on all grounds on 29/11/1986; appellate court reversed on ground of default only on 6/4/1990.

Issues

Whether tenant was in arrears of rent for more than six months warranting eviction under rent control law? Whether the appellate court erred in decreeing eviction for default despite pending standard rent fixation and excess deposit?

Submissions/Arguments

Petitioners-tenants contended that they were not in arrears of rent for six months, had a pending application for fixation of standard rent, and had deposited rent in excess; hence no default. Respondents-landlords argued that even after adjusting excess deposit, an arrears of Rs. 2.20 remained, indicating default.

Ratio Decidendi

When a tenant has a pending application for fixation of standard rent and has deposited rent in excess, a minor shortfall of Rs. 2.20 does not constitute willful default to merit eviction. The tenant's willingness to pay rent is demonstrated by the deposit, and eviction order on ground of default is unsustainable.

Judgment Excerpts

The petitioners-tenants had replied the demand notice dated 16/11/1982 on 6/12/1982. An application No. 281/76 for fixation of rent was pending prior to the demand notice itself. The respondents-tenants was depositing the rent in the Court. Therefore, as against the demand till 6/10/1982, the petitioners-tenants had deposited rent of Rs. 927/- in the said proceeding. Therefore, rent was deposited in excess. Only because the respondent-tenant failed to deposit an amount of Rs. 2.20, as observed in above para, it is difficult to grant the decree of possession on this ground.

Procedural History

Original suit for possession filed by landlords against tenants. Trial court (date not mentioned in judgment text) dismissed suit on all grounds on 29/11/1986. Landlords appealed to District Judge, Pune (Appeal No. 119/87). Appellate court allowed appeal on 6/4/1990, granting eviction on ground of default only. Tenants filed Writ Petition No. 2216 of 1990 under Article 227 before Bombay High Court. High Court set aside appellate order and restored trial court's dismissal on 8/7/2005.

Acts & Sections

  • Constitution of India: Article 227
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