Case Note & Summary
The petitioner, Mrs. Velthoria Sequeira, was the defendant in a suit for possession and arrears of rent filed by the respondent, Sode Vadiraja Mutt, in O.S.No.80/2014 before the Prl. Civil Judge and JMFC, Udupi. The suit was filed for possession of the leased property and recovery of arrears of rent. The petitioner filed her written statement on 12.04.2014. Subsequently, she filed an application under Section 114 of the Transfer of Property Act, 1882 (I.A.No.1) seeking relief against forfeiture of the lease for non-payment of rent. The trial court rejected the application by order dated 28.05.2019, on the ground that there was a delay of about 5 years in filing the application and no explanation was offered for the delay. Aggrieved, the petitioner filed a writ petition under Article 227 of the Constitution of India before the High Court of Karnataka. The respondent Mutt opposed the petition, supporting the trial court's order. The High Court, after hearing both sides, held that forfeiture of lease for non-payment of rent is not automatic and that Section 114 of the Transfer of Property Act, 1882 gives the court discretion to grant relief against forfeiture upon payment of arrears with interest and costs. The court noted that the trial court had not properly exercised its discretion and that the petitioner should be given an opportunity to save the lease. The High Court allowed the writ petition, set aside the impugned order, and directed the petitioner to deposit the entire arrears of rent with interest and costs within one month from the date of the order. It was further directed that upon such deposit, the lease shall stand revived and the suit shall be dismissed as withdrawn. If the petitioner fails to deposit, the suit shall proceed in accordance with law.
Headnote
A) Property Law - Lease - Forfeiture - Relief against forfeiture - Section 114 of Transfer of Property Act, 1882 - The petitioner, a tenant, sought relief against forfeiture of lease for non-payment of rent. The trial court rejected the application on the ground of delay. The High Court held that forfeiture is not automatic and the court has discretion to grant relief upon payment of arrears with interest and costs. The court allowed the petition and directed the tenant to deposit the entire arrears with interest and costs within one month, failing which the suit shall proceed. (Paras 1-5) B) Civil Procedure - Writ Jurisdiction - Article 227 of Constitution of India - Interference with interlocutory orders - The High Court exercised its supervisory jurisdiction under Article 227 to set aside the trial court's order rejecting the application under Section 114 of the Transfer of Property Act, 1882. The court found that the trial court had not properly exercised its discretion and that the tenant should be given an opportunity to save the lease. (Paras 1-5)
Issue of Consideration
Whether the trial court was justified in rejecting the application under Section 114 of the Transfer of Property Act, 1882 for relief against forfeiture of lease for non-payment of rent, and whether the High Court should interfere under Article 227 of the Constitution of India.
Final Decision
The High Court allowed the writ petition, set aside the impugned order dated 28.05.2019, and directed the petitioner to deposit the entire arrears of rent with interest and costs within one month from the date of the order. Upon such deposit, the lease shall stand revived and the suit shall be dismissed as withdrawn. If the petitioner fails to deposit, the suit shall proceed in accordance with law.
Law Points
- Forfeiture of lease for non-payment of rent is not automatic
- Section 114 of Transfer of Property Act
- 1882 provides relief against forfeiture
- Court has discretion to grant relief upon payment of arrears with interest and costs
- Written statement filed on 12.04.2014
- Application under Section 114 filed on 28.05.2019
- Delay of about 5 years
- No explanation for delay
- But court can still grant relief in exceptional circumstances
- Tenant must pay entire arrears with interest and costs within one month.
