Bombay High Court Allows Tenant's Petition in Eviction Suit Over Rent Default — Notice of Demand Not Proved. Education Cess Not Payable Monthly Under Maharashtra Education (Cess) Act, 1962, Hence Section 12(3)(a) of Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947 Not Attracted.

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

The case involves a landlord's suit for eviction of tenants from two rooms in Mumbai on the ground of default in payment of rent. The landlord issued a notice of demand on 27 June 1972 claiming arrears from February 1970 to September 1971 at Rs. 35.70 per month and from October 1971 at Rs. 36.12 per month. The notice was sent by registered post and returned with the remark 'refused'; a copy was also sent under Certificate of Posting and pasted on the premises. The tenants denied receipt of the notice and claimed readiness to pay. The Trial Court dismissed the suit on 30 November 1991, holding that service of notice was not proved and that education cess under the Maharashtra Education (Cess) Act, 1962 was not payable monthly, so Section 12(3)(a) of the Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947 was not attracted; the case fell under Section 12(3)(b). The Appellate Bench of the Small Causes Court reversed the Trial Court's findings and decreed eviction. The tenants filed a writ petition in the High Court. The High Court examined the evidence and found that the Trial Court's finding on non-service of notice was based on the tenant's denial and the landlord's failure to prove service. The High Court also noted that the Trial Court correctly followed the Supreme Court's decision in Raju Kakara Shetty v. Ramesh Prataprao Shirole, holding that education cess is not payable monthly, and therefore the rent was not payable monthly, making Section 12(3)(a) inapplicable. The High Court allowed the petition, set aside the Appellate Bench's order, and restored the Trial Court's dismissal of the suit.

Headnote

A) Rent Control - Eviction - Notice of Demand - Service - Landlord failed to prove service of notice of demand where tenant denied receipt and postal packet returned with remark 'refused' - Trial Court's finding of no service upheld - Held that landlord must establish service of notice to claim eviction for default (Paras 2-3).

B) Rent Control - Eviction - Default in Payment of Rent - Monthly Rent - Education Cess - Education cess under Maharashtra Education (Cess) Act, 1962 is not payable monthly - Since education cess forms part of rent, rent was not payable monthly - Section 12(3)(a) of Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947 not attracted - Case governed by Section 12(3)(b) - Held that where rent is not payable monthly, Section 12(3)(a) does not apply (Para 3).

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Issue of Consideration

Whether the landlord proved valid service of notice of demand for arrears of rent, and whether the rent was payable monthly so as to attract Section 12(3)(a) of the Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947.

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Final Decision

The High Court allowed the writ petition, set aside the order of the Appellate Bench of the Small Causes Court, and restored the Trial Court's judgment dismissing the suit.

Law Points

  • Service of notice of demand must be proved by landlord
  • Education cess not payable monthly
  • Section 12(3)(a) not attracted when rent not payable monthly
  • Section 12(3)(b) applies
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Case Details

2006 LawText (BOM) (06) 14

WRIT PETITION NO.7460 OF 2003

2006-06-19

Dr. D.Y. Chandrachud, J.

Mr. J.J. Thakkar for the Petitioners, Mr. A.K. Abhyankar, Senior Advocate with Mr. R.S. Patil for Respondent No.2

Madhavsingh Tulsidas since deceased through L.Rs. 1. Uday Madhavsingh Palicha & Anr.

Bhaktiben Narandas Paleja since deceased through L.Rs. 1A) Jawahar Narandas Paleja & Ors.

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Nature of Litigation

Eviction suit by landlord against tenants for default in payment of rent.

Remedy Sought

Landlord sought possession of two tenanted rooms and arrears of rent.

Filing Reason

Tenants failed to pay rent from February 1970 onwards despite notice of demand.

Previous Decisions

Trial Court dismissed suit on 30 November 1991; Appellate Bench of Small Causes Court reversed and decreed eviction.

Issues

Whether the landlord proved valid service of notice of demand for arrears of rent. Whether the rent was payable monthly so as to attract Section 12(3)(a) of the Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947.

Submissions/Arguments

Landlord argued that notice of demand was sent by registered post and returned with 'refused', and also sent under Certificate of Posting and pasted on premises. Tenants denied receipt of notice and claimed readiness to pay rent.

Ratio Decidendi

The landlord failed to prove service of notice of demand, which is a prerequisite for eviction for default. Additionally, education cess under the Maharashtra Education (Cess) Act, 1962 is not payable monthly, so the rent was not payable monthly, and Section 12(3)(a) of the Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947 was not attracted; the case fell under Section 12(3)(b).

Judgment Excerpts

The Appellate Bench of the Court of Small Causes reversed the findings of the Trial Judge and decreed the landlord's suit for eviction on the ground of a default by the tenant in the payment of rent. The Trial Court held that service of the notice of demand was not proved. The Trial Judge held, following the judgment of the Supreme Court in Raju Kakara Shetty v. Ramesh Prataprao Shirole, that education cess payable under the Maharashtra Education (Cess), 1962 is not payable monthly and since it forms part of the rent, the rent was not payable monthly.

Procedural History

Landlord filed eviction suit in Small Causes Court. Trial Court dismissed suit on 30 November 1991. Landlord appealed to Appellate Bench of Small Causes Court, which reversed and decreed eviction. Tenants filed writ petition in High Court.

Acts & Sections

  • Bombay Rents, Hotel and Lodging Rates (Control) Act, 1947: 12(3)(a), 12(3)(b)
  • Maharashtra Education (Cess) Act, 1962:
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