Bhoja
@ Bhoja Ram Gupta Vs. Rameshwar Agarwala & Ors [1993] INSC 128 (16 March 1993)
Anand,
A.S. (J) Anand, A.S. (J) Jeevan Reddy, B.P. (J)
CITATION:
1993 AIR 1498 1993 SCR (2) 369 1993 SCC (2) 443 JT 1993 (2) 375 1993 SCALE
(2)58
ACT:
Bihar Building (Lease, Rent and Eviction) Control Act:
Section
4-Rent-Enhancement of-Procedure-Excess rent paid by tenant whether could be
automatically adjusted against subsequent defaults in payment of monthly rent.
HEAD NOTE:
The
defendant-appellant was a tenant under the plaintiff- landlord on a monthly
rent of Rs.70. The appellant defaulted In the payment of the rent or the
suit-premises- residential-cum-shop premises-with effect from October, 1975 to
June, 1976.
As the
appellant did not vacate the premises even after being served with a notice
under section 106. Transfer of Property Act, a suit was filed for his eviction
from the suit premises,, being a defaulter. The landlord also pleaded his own
bona fide requirement of the suit-promises.
The
appellant-tenant submitted that he was originally a tenant under one Smt. Sita Devi,
the owner of the suit premises at a monthly rent of Rs.55; that he was paying
the rent to Smt. Sita Devi and after the plaintiff landlord purchased the house
from her in 1968, he continued its tenant of plaintiff. that the plaintiff
illegally increased the rent from Rs.55 to Rs.65 per month (and not Rs. 70 per
mouth.) under threat of eviction that town( paid the rent at the rate of km,
6.5 per mouth upto the month commencing from 16.1.1976, when the plaintiff
landlord refused to accept the same with effect from 16.2..1976 that
defendant-tenant did not default In payment of rent as subsequently rent had
been sent by Money Order that the landlord-plaintiff did not have any bona fide
necessity for the premises and that the suit was not maintainable.
The
Trial Court hold that the suit was maintainable the plaintiff had cause of
action for the suit and tenancy of the defendant was validity terminated. It
also held also held that the defendant tenant was a defaulter and was 369 370
liable to be evicted from the primises. It however held that the plaintiff had
failed to prove his case regarding bona fide requirement of the suit premises.
The Trial Court however held that the plaintiff-landlord could not have
enhanced the rent without taking recourse to the provisions of Bihar Building (Lease, Rent and Eviction) Control Act and therefore the
Court calculated the arrears of rent at Rs.55 per month.
The
Trial Court decreed the suit partly and directed the defendanttenant to vacate
the suit premises and to deliver the vacant possession of the same to the
plaintiff-landlord within 90 days from the date of the decree.
Tenant-appellant
filed a First Appeal against the Trial Court's judgment. Plaintiff-landlord
also filed cross- objections challenging the finding of the Trial Court
regarding determination of the rate of rent and the arrears of rent. The First
Appellate Court dismissed the Cross- objections and confirmed the finding of
the Trial Court to the effect that the rent lawfully payable was Rs. 55 per
month. It held that the defendanttenant was a defaulter with effect from
16.5.1976 onwards and he was liable to be evicted and dismissed the appeal of
the tenant.
The
Second Appeal filed by the appellant-tenant was dismissed by the High Court in limine,
against which by special leave the present appeal was filed in this Court.
The
appellant contended that since the rent lawfully payable per month was Rs. 55
per month and not Rs. 65 which was paid by the appellant, the excess amount
paid should be adjusted, there could be no quotation of holding appellant a
defaulter. (This plea of appellant was rejected by the First Appellate Court on
the ground that no prayer for adjustment in writing was made by him.) The
respondent-landlord submitted that the excess rent paid by the tenant to his
landlord in pursuance of a mutually agreed illegal enhancement, could not get
automatically adjusted against the subsequent defaults in the payment of
monthly rent.
Dismissing
the appeal of the tenant, this Court,
HELD-
1.01.
Section 4 of the Bihar Building (Lease, Rent and Eviction) Control Act creates an absolute prohibiton
against illegal increase or enhacement of rent except in the manner provided by
the 371 provisions of the Act itself and lays down that it is not even
permissible for the parties to contract themselves out of such a prohibition.
Thus, on its plain language any increase or claim to increase in the rent by
the landlord would be unlawful and any agreement to do so except in accordance
with the provisions of the Act would not cure the illegality. [377B-C]
1.02.
The Act does not contain any provision for automatic adjustment of excess rent.
Neither in reply to the notice under Section 106 of the Transfer of Property
Act nor in the written statement or through any other writing was the
adjustment of excess rent towards the arrears claimed by the tenant from the
landlord. There also was no agreement between the parties at any point of time
for adjustment of the excess rent illegally paid towards the rent falling due
subsequently. [377F]
1.03.
The rent payable in the instant case was only Rs.55 per month and the tenant
was made to pay Rs.65 per month from 1968 onwards after the property had been
purchased by the plaintiff-landlord under threat of eviction, it must be held
that the increase in the rent from Rs.55 per month to Rs.65 per month was
unlawful and the landlord was not entitled to recover anything more than Rs.55
per month by way of rent. [377C-D]
1.04.
The excess rent paid by the tenant in pursuance of mutually agreed illegal enchancement
thereof by the parties does not get automatically adjusted against the
subsequent defaults in the payment of the monthly rent under the Act and even
under the general law such an automatic adjustment is not countenanced. [381B]
1.05.
A tenant cannot save himself from the conseqences of eviction under the Act on
the ground of default in the payment of rent by claiming automatic adjustment
of any excess rent paid consequent upon mutual enhacement of rent, even if
illegal unless there is an agreement between the parties for such an
adjustment.
The
tenant may also in a given case seek adjustment of the excess rent in the hands
of the landlord against the arrears by specifically asking the landlord for
such an adjustment before riling of the suit or in response to the notice to
quit and even in the written statement by way of set off within the period of
limitation and by following the procedure for claiming such a set off, while
resisting the claim for eviction on the ground of default in payment of arrears
of rent but, he cannot claim 'automatic adjustment. [381 H, 382A-B] 372 Mohd. Salimuddin
v. Misri Lal and Anr., [1986] 1 NCR 622, M/s, SarwanKumar Onkar Nath v. Subhus
Kumar Agarwalla [1987] 4 SCC 546, distinguished,, Gulab Chand Prasad v. Budhwanti
and Anr., AIR 1985 Patna 327 (F.B.) and Nune Panduranga, Rao v. Divvala Gopala Rao,
AIR 1952 Madras 827, approved.
Budshwanti
and Anr. v. Gulab Chand Prasad [1987]2 SCC 153, referred to.
CIVIL
APPELLATE JURISDICTION Civil Appeal No.2924 of 1985, From the Judgment and
Order dated 124, 1985 of the Patna High Court in SA, No.2A of 1985(R).
J.P. Goyal.
M.R. Bidsar and Rajesh for the Appellant D.P. Mukherjee for the Respondents.
The
Judgment of the, Court was delivered by DR. ANAND, J. This appeal by special
leave, filed by the tenant, is directed against the dismissal of his Second
Appeal, in limine by the High Court of Patna (Ranchi Bench) on 12,4.1985, The
landlord filed a suit for eviction of the appellant from the
residential-cum-shop premise, situate at holding No.224/D Ward No.7 Bazar Mohalla
Jugsalai, Shorn of details the case of the landlord is that the appellant was a
tenant Under him on a monthly rent of Rs. 70, but had not paid the rent of the
disputed premises with effect from October 1975 to June, 1976 and being a
defaulter for more than two months. was liable to be evicted. The landlord also
claimed arreas of rent from October 1975 to June, 1976 amounting to Rs. 630. The
landlord also pleaded his own bona fide requirement of the suit premises. The
suit was filed in the Court of Munsif, Jamshedpur in 1976 because even after a notice under Section 106 of the Transfer
of Property Act, terminating the tenancy had been served on the tenant he did
not vacate the priemises. The suit was resisted and it was pleaded on behalf of
the tenant-appellant that the premises in dispute originally belonged to one
Suit. Sita Devi Khirwal from whom he 373 had taken the premises on monthly rent
of Rs. 55; that he had been paying the rent to Smt. Sita Devi Khirwal,all along
and after the plaintiff-landlord purchased the house from her in MS, the
defendant continued as his tenant but the plaintiff-landlord illegally
increased the rent of the suit from Rs. 55 to Rs. 65 p.m (and not Rs. 70 pm.)
under threat of eviction and the tenant paid the rent at the rate of Rs. 65 per
month upto the month commencing from 16th of January, 1976 when the plaintifflandlord
refused to accept the same with effect from 16.2.1976. It was maintained that
the defendant-tenant had not defaulted in the payment of rent as subsequent
rent had been sent by money order. It was also asserted that the
landlord-plaintiff did not have any bona fide necessity for the premises. On the
pleading of the parties, the following issues were framed:
"1.
Is the suit as framed maintainable?
2.
Have the plaintiffs any cause of action for the suit?
3, Has
the tenancy of the defendant been validly deter. mined?
4. Is
the defendant a-defaulter?
5. Do
the plaintiff require the suit promises for their bona fide use mind
occupation?
6. Is
the defendant liable to be evicted from the suit premise?
7. Am
the plaintiffs entitled to the arrears of rent as claimed?
8. To
what relief or reliefs, if any. are the paintiffs en- titled?"
Issue
Nos. 1, 2 and I were decided against the defendant- tenant. Issue No.5 was
decided against the plaintiff- landlord and it was hold that he had failed to
prove the case regarding bonafide requirement of the suit premises, Issue No.4
and 6 were taken up together for consideration, The Trial Court held on facts
that the defendant-tenant was a defaulter of and was liable to be evicted from
the suit premises.
374
Dealing with Issue No.7, the Trial Court noticed that the plaintiff landlord
had claimed arrears of rent from the defendant from October, 1975 to June, 1976
@ Rs. 70 per month. It was found that originally the rent of the suit premises
was Rs. 55 per month and that the plaintiff landlord had after purchaing the
suit premises unlawfully enhanced the rent of the premises from Rs. 55 to Rs.
65 per month and that the tenant continued to pay the rent @ Rs. 65 per month
under threat of eviction. The learned Trial Court accepted the plea of the
defendant-tenant that the plaintiff-landlord could not have enhanced the rent
for the suit premises without taking recourse to the provisions of Bihar
Building (Lease, Rent and Eviction) Control Act (hereinafter the Act) and held
that rate of rent for the suit premises shall be deemed to be Rs. 55 per month
only. The Trial Court, however, found, on facts, that the defendant-tenant had
not paid rent to the plaintiff-landlord from the month commencing from 16th
October, 1975 up to the month commencing 16th June, 1976 and therefore, the
defendant-tenant was in arrears of rent for 7 months calculated at Rs-55 per
month.
A
decree for the arrears of rent for Rs.385, calculated at Rs.55 per month for 7
months, was, therefore, passed in favour of the plaintiff-landlord and issue
No.7 decided accordingly.
As a
result the suit of the plaintiff-landlord wad decreed in part with
proportionate costs and the defendant-tenant was, directed to quit and vacate
the suit premises and deliver the vacant possession of the same to the
plaintiff- landlord within 90 days from the date of the decree. The
defendant-tenant was also directed to pay a sum of Rs.385 to the plaintifflandlord,
being the arreas of rent within the aforesaid period of 90 days Aggrieved by
the judgment and decree of the Trial Court, the tenant filed a First Appeal in
the Court of the 3rd Additional Subordinate Judge, Jamshedpur. The plaintiff-landlord also filed
cross objections challenging the findings on Issue No.7 stating therein that
the Trail Court ought to have passed a decree for
arrears of rent calculated @ Rs.70 per month and not @ Rs.55 per month. The
defendant-tenant, however, did not assail the judgment and decree of the Trial
Court except as regards the findings relating to the default of the tenant in
payment of rent. Before the 1st Appellate Court only the following two points
were canvassed:
'Point
No.1: Whether the findings of the learned lower court fixing the monthly rent
of the suit premises at Rs.55 is correct and sustainable in the eye of law? 375
Point No.11: Whether the findings of the learned court below with regard to the
default of the defendant appellant is correct and sustainable in the eye of
law?" The 1st Appellate Court confirmed the finding of the Trial Court to
the effect that the rent lawfully payable was Rs.55 per month and consequently
the cross objections were dismissed. While deciding Point No.11 (supra), it was
found that the defendant-tenant had paid the rent @ Rs. 65 per month and after
taking into account the rents remitted by money-order etc, it was held that the
defendant-tenant was a defaulter with effect from 16.5.1976 onwards and thus
liable to be evicted.
Before
the 1st Appellate Court, a plea was raised on behalf of the defendant-tenant
that since the rent lawfully payable per month as found by the courts below was
only Rs.55 per month and not Rs.65, as had been admittedly paid by the
defendant-tenant, the excess amount paid should have been automatically
adjusted in the future rent and if so adjusted, there could be no question of
the defendant-tenant being held a defaulter. This plea was rejected by 1st
Appellate Court on the ground that no prayer for adjustment in writing had been
made by the defendant-tenant and, there- fore, he could not be permitted to
claim any such adjustment. The appeal and the cross objections were, therefore,
dismissed. The Second Appeal, as already noticed, was dismissed by the High
Court in limine.
In
this appeal, learned counsel for the appellant-tenant has confined his
submission to the question of adjustment of the excess rent received by the
landlord against the arrears and it was submitted that had the excess payment
of Rs.10 per month made by the tenant from September 1968 to September 1975,
amounting to Rs.840, been taken into account toward the claim of arrears, the
plaintiff-landlord could not obtain the decree of either arrears of rent or of
eviction against the tenant. In support of his submission, learned counsel has
relied upon the judgment of this Court in Mohd Salimuddin v. Misri Lal and Anr.,
[1986] 1 SCR 622.
Reliance
was also placed on M/s. Sanvan Kumar Onkar Nath v. Subhas Kumar Agarwalla,
[1987] SCC 546 Learned counsel for the respondent on the other hand placed
reliance upon the judgment of the Full Bench of the Patna High Court in Gulab Chand
Prasad v. Budhwanti and Anr., AIR 1985 Patna 327 to urge that excess rent paid
by the tenant to his landlord in pursuance of a mutually agreed illegal
enhancement, could not get automatically ad- 376 justed against the subsequent
defaults in the payment of the monthly rent under the Act.
Before
we take up the judgments relied upon by the learned counsel for the parties for
consideration, it would be appropriate to first notice some of the admitted
facts in the case, It is an admitted case of the parties before us that the
rent of the premises was Rs.55 per month and that the sum had been raised to
Rs.65 per month without following the provision contained in the Act, though,
according to the landlord, the tenant had agreed to the increase of the rent
voluntarily, Admittedly, the tenant had been in fact in arrears of rent for a
period of 7 months and was as such a defaulter.
In the
notice under Section 106 of the Transfer to Property Act served by the landlord
on the tenant, determining the tenancy the tenant had been put on notice that
his eviction was sought not only on the ground of bonafide requirement of the
landlord but also on the ground that he was a defaulter in the payment of rent.
In response to the notice, it was asserted that the rent had been arbitrarily
increased from Rs.55 per month to Rs.65 per month and it was asserted that the
tenant was not a defaulter. However, no adjustment of the excess payment of
rent was claimed against the arrears.
In the
plaint filed by the landlord, the claim of arrears of rent amounting to Rs, 630
was specifically made and though in the written statement, the claim was
refuted but no adjustment of the excess rent paid was claimed in the written
statement either. Before the Trial Court also,. as it would appear from the
judgment of the Trial Court, no such plea was raised.
It is
in this fact situation, that we shall now consider the submissions made by the
learned counsel for the tenant about the right of the tenant to the adjustment
of the excess amount against subsequent arrears.
Section
4 of the Act reads thus:- "4. Enhancement of rent of buildings.-
Notwithstanding anything contained in any agreement or law to the contrary, it
shall not be lawful for any landlord to increase, or claim any increase in the
rent which is payable for the time being in respect of any building except in
accordance with the provisions of this Act." 377 This Section which begins
with the non-obstante clause declares that any agreement to' increase the rent
except in accordance with the provisions of the Act, would not only be void but
indeed illegal, The Section creates an absolute prohibition against illegal
increase or enhancement of rent except in the manner provided by the provisions
of the Act itself and lays down that it is not even permissible for the parties
to contract themselves out of such a prohibition.
Thus,
on its plain language, any increase or claim to increase in the rent by the
landlord would be unlawful and any agreement to do so except in accordance with
the provisions of the Act would not cure the illegality. Since, the rent
payable in the instant case as has been admitted before us and found by the
courts below was only Rs.55 per month and the tenant was made to pay Rs.65 per
month from 1968 onwards after the property had been purchased by the plaintifflandlord
under threat of eviction, it must be held that the increase in the rent from
Rs.55 per month to Rs.65 per month was unlawful and the landlord was not
entitled to recover anything more than Rs.55 per month by way of rent.
Considered
in this light, it is manifest at the landlord had illegally recovered from the
tenant Rs.10 per month more than what was lawfully due to him. The question,
however, which arises for our consideration is whether the excess rent paid by
the tenant, on account of the unlawful enhancement, could be automatically
adjusted against the subsequent defaults in payment of the monthly rent? The
Act does not contain any provision for automatic adjustment of the excess rent.
As already noticed, neither in reply to the notice under Section 106 of the
Transfer of Property Act nor in the written statement or through any other
writing was the adjustment of excess rent towards the arrears claimed by the
tenant from the landlord. There also was no agreement between the parties at
any point of time for adjustment of the excess rent illegally paid toward the
rent falling due subsequently.
In Mohd
Salimuddin v. Misri Lal and Anr., (supra), the facts were that the tenant had
advanced a sum of Rs.2,000 to the landlord in order to secure the tenancy by an
agreement which specifically provided that the loan amount could be adjusted
against the rent which accured subsequently. The landlord filed a suit against
the tenant for eviction on the ground of arrears of rent. The lower Appellate
Court dimissed the suit holding that the tenant was not in arrears of rent
since the amount 378 advanced by the tenant as loan as per the agreement could
be adjusted against the rent and the said amount was sufficient to cover the landlord's
claim of arrears. The High Court in the Second Appeal filed by the landlord
however set aside the judgment of the 1st Appellate Court holding that the loan
advanced by the tenant being in violation of the provisions contained in
Section 3 of the Act could not be adjusted and that the tenant was in arrears
of rent and therefore liable to be evicted. On an appeal by special leave this
Court noticed the following admitted facts:
"(1)
The tenant had advanced a sum of Rs.2000 under an agreement which inter alia
contained a stipulation that the loan amount was to be adjusted against the
rent which accured.
(2)
The amount so advanced by the tenant was sufficient to cover the landlord's
claim of arrears.
(3) If
the loan amount was accordingly adjusted towards the rent which accrued, the
tenant was not in arrears of rent.
This
Court did not agree with the High Court that since the loan advanced by the
tenant was in violation of the prohibition contained in Section 3 of the Rent
Ac, the tenant was not entitled to claim adjustment of the loan amount against
rent which had accrued subsequently.
Allowing
the appeal the Court rejected the application of doctrine of pari delicto to
the facts of the case by observing:
The
doctrine of pari delicto is not designed to reward the 'wrong-doer', or to
penalize the 'wronged', by denying to the victim of exploitation access to
justice. The doctrine is attracted only when none of the parties is a victim of
such exploitation and both par- ties have voluntarily and by their free will
joined hands to flout the law for their mutual gain. Such being the position
the said doctrine embodying the rule that a party to a transaction prohibited
by law cannot enforce his claim in a Court of law is not attracted in a
situation like the present........" Consequently, the judgment and decree
passed by the High Court was set 379 aside and that of the 1st Appellate Court
restored. This Judgment, has no application to the facts of the present case as
leaving aside everything else, the agreement by which the sum of Rs.2,000 had
been advanced, by the tenant to the landlord to secure the tenancy, had
specifically provided that the loan amount could be adjusted against the rent
which may accure subsequently. It would have been perpetuating immorality if
the landlord after taking loan of Rs. 2,000 with the clear stipulation
regarding its adjustment against arrears falling due subsequently was to rely
on the illegal nature of the transaction and deny adjustment. There is not even
a demand, much less any agreement, between the parties in the present case for
adjustment of the excess amount of rent illegally paid towards the rent
accruing subsequently.
In M/s
Sarwan Kumar Onkar Nath v. Subhas Kumar Agarwalla (supra), the facts were as
follows:
The
appellant was a lessee of the building belonging to the respondent on a monthly
rent of Rs.70. At the time of taking the premises on rent, he paid in advance
two months rent i.e. Rs.140. The appellant paid rent regularly thereafter but
did not pay rent for the months of September and October 1972. Taking advantage
of the non-payment of the rent in respect of the said two months, the
respondent-landlord filed a petition for eviction against the appellant-tenant
contending that the appellant being a defaulter in payment of rent for two
months had become liable to be evicted from the premises in quention under
clause (d) of Section 11(1) of the Bihar Buildings (Lease, Rent and Eviction)
Control Act, 1947. The tenant pleaded inter alia in his written statement that
from the time of inception of the tenany, he had paid the respondent a sum of
Rs.140 as advance rent with an understanding that the amount of advance could
be set off against the rent whenever necessary or required and that since under
Section 3 of the Act it was not lawful for the landlord to claim to receive, in
consideration of the grant, renewal or continuance of the tenancy of any
building, any amount by way of advance or premium the appellant could not be
considered to be a defaulter in payment of rent.
Agreeing
with the plea of the tenant, the Trial Court dismised the suit and the appeal
filed by the landlord before the Additional Subordinate Judge also failed. The
landlord filed a Second Appeal before the High Court. The High Court on facts
found that the tenant had failed to pay the rent for the months of September
and October 1972. It accepted the plea of the tenant that he 380 had paid the
sum of Rs.140 as rent in advance but set aside the concurrent judgments of the
Courts below on the ground that since the tenant had neither..orally nor in
writing informed the landlord that he was exercising the option, under the
agreement, to adjust the amount paid in advance towards the rent due for the
months of September and October 1972 he could not get the benefit of that
amount paid to save himself from eviction. This Court allowed the appeal and
held that the tenant was, in view of the advance paid and the agreement between
the parties, not in arrears of rent and setting aside the judgment of the High
Court restored that of the Trial Court which had been affirmed by the 1st
Appellate Court.
This
Court took notice of the fact that though the receipt under which the advance
rent of Rs.140 had been paid did state that the amount received 'was liable to
be adjusted towards the arrear of rent only on the appellant informing the
respondent orally or in writing that such adjustment is to be made" but it
construed the plea set out in the written statement to adjust the advance
towards the rent due as amounting to an assertion as contemplated by the
agreement and therefore it was held that the tenant could not be treated as a
defaulter. Sarwan Kumar's case also is not an authority for the proposition of
"automatic adjustment" as canvassed by learned counsel for the
appellant because the construction placed by this Court on the written
statement in Sarwan Kumar's case was to the effect that the tenant had sought
adjustment of the advance paid against the rent for two months. That judgment
also, therefore, does not advance the case of the appellant.
On the
other hand, the opinion expressed by the Full Bench of the Patna High Court in Gulab
Chand Prasad v. Budhwanti and Anr., which has received the seal of approval of
this Court in Budhwanti and Anr. v. Gulab Chand Prasad,'[1987] 2 SCC 153 fully
supports the case of the landlord. The precise question which was considered by
the Patna High Court was:
"Whether
the excess rent paid by the tenant to his landlord, consequent upon a mutual
(though illegal) enhancement of rent would be automatically adjusted against
all subsequent defaults in payment of monthly rent for purposes of Ss. 4, 5 and
11 of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947 381
After a detailed discussion and reference to a catena of authorities, the
answer to the above question was rendered in the negative and it was held that
the excess rent paid by the tenant in pursuance of mutually agreed illegal enchancement
thereof by the parties does not get automatically adjusted against the subsequent
defaults in the payment of the monthly rent under the Act and even under the
general law such an automatic adjustment is not countenanced.
The
Madras High Court in Nune Panduranga Rao v. Divvala Gopala Rao, AIR 1952 (Madras) 827 while construings a somewhat
similar provision contained in Section 7(2) of the Madras Buildings (Lease and
Rent) Control Act held:
"Under
the express provisions of this section if the tenant has not paid or tendered
the rent due by him within the time prescribed therein he is liable to be
evicted. The section does not compel a landlord to adjust the excess amounts in
his hands towards any arrears of rent if the said amounts were not paid by the
tenant towards the rent of any particular month. It is true that on the date
when a tenant authorities the landlord to adjust the amounts with him towards
the rent of any particular month or months the amount will be deemed to have
been paid on that date towards rent. But till that adjustment is made and the
amount is so appropriated, any amounts in excess of the rent due with the
landlord will only be payments made in suspense. The facs that such excess came
into the hands of the landlord by reason of the Rent Controller's order fixing
the fair rent does not really affect the question. I am, therefore, of opinion
that the amount not paid towards rent of any particular month and the amount
not agreed to be adjusted towards any rent of a particular month is not Payment
of rent within the meaning of S.7(2) of the Act." (Emphasis supplied) We
are in broad agreement with the view of the Full Bench of the Patna High Court
and the Madras High Court on the question of 'automatic adjustment' and hold
that a tenant cannot save himself from the consequences of eviction under the
Act on the ground of default in the payment 382 of rent by claiming automatic
adjustment of any excess rent paid consequent upon mutual enhancement of rent,
even if illegal unless there is an agreement between the parties for such an
adjustment. The tenant may also in a given case seek adjustment of the excess
rent in the hands of the landlord against the arrears by specifically asking
the landlord for such an adjustment before filing of the suit or in response to
the notice to quit and even in the written statement by way of set off within
the period of limitation and by following the procedure for claiming such a set
off, while resisting the claim for eviction on the ground of default in payment
of arrears of rent but be cannot claim 'automatic adjustment'.
Thus,
in the facts and circumstances of this case, we find that the 1st Appellate
Court was fully justified in holding that the tenant could not get any
automatic adjustment of the excess rent paid against the subsequent defaults
and since the tenant had been found on admitted facts to be in default in the
payment of rent, his eviction was well merited. The judgment of the High Court
dismissing the second appeal, directed against concurrent findings, in limine,
does not call for any interference. This appeal consequently fails and is
dismissed but without any order as to costs.
The
appellant, however, is given time till 31st May, 1993, to yield vacant possession to the
landlord subject to filing of the usual undertaking within three weeks from
today.
V.P.R.
Appeal dismissed.
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