M/S. Shrikrishna
Oil Mill Vs. M/S. Radhakrishan Ramchandra [2002] Insc 9 (9 January 2002)
R.P.
Sethi & S.N. Phukan Phukan, J.
This
appeal by special leave is by the tenant. The suit premises were taken on rent
by the appellant at a rent of Rs.1500/- per year for the purpose of running an
oil mill. After the expiry of period of lease, the tenancy continued. The
respondent-landlord filed an application on 25.11.1981 under Section 15(2)(ii)
of Hyderabad Houses (Rent, Eviction and Lease) Control Act, 1954 (for short
'the Act') before the Controller for the eviction of the appellant on the
ground of default in payment of rent since 1.11.1978 till the date of filing of
the application. Prior to the filing of the present eviction application, the
respondent filed a Civil Suit on 11.08.1981 for recovery of arrears of rent for
the period between 1.11.1978 to 29.9.1981 amounting to Rs.4250/- and on
7.10.1981 appellant appeared before the court and deposited the amount which
was accepted by the respondent. Both the Rent Controller and the appellate
authority held that the appellant was a defaulter and accordingly ordered for
his eviction. The Revision Petition filed by the appellant-tenant before the
High Court under Section 26 of the Act was also rejected by the impugned
judgment.
We may
state here that by order dated March 3, 2000,
this court recorded the admitted position that possession of the suit premises
was already obtained by the respondent, therefore, directed that pending this
appeal, respondent shall neither alienate the property nor induct anyone else
in the suit property till final disposal of the appeal.
We
have heard the learned counsel for the parties.
The
short question to be decided in this appeal is whether the appellant was a
willful defaulter of the rent on the date of filing of the application for
eviction. From the impugned judgment, we find that the contention raised on
behalf of the landlord that after the expiry of the yearly lease the appellant
became a monthly tenant was rejected by the High Court holding that the
appellant-tenant continued to be a yearly tenant. According to the High Court
rent was to be paid within one month after end of the yearly tenancy. In
arriving at the above decision, the High Court relied on sub-section (2) of
Section 15 of the Act. On the question of default, the Court was of the view
that there were two defaults, first one being on the completion of the year
from 1.11.1978 to 20.10.1979 and second being from 21.10.79 to 7.10.1980. It
was held that there was a clear default on the part of the appellant as the
arrears of rent was paid by the appellant when he appeared in the regular Civil
Suit on 7.10.1981 and not within one month of the end of the yearly tenancy.
The High Court also found fault with the appellant as after filing of the
application for eviction the landlord was required to file civil suits for
recovery of rent for subsequent periods and therefore held that tenant did not
care to pay rent as and when it became due to avail the protection of the
provisions of law. On these facts it was held that the default was willful.
Learned
counsel for the appellant has contended that as before the date of the filing
of the application for eviction, the rent for the period in question was paid
by the appellant to the respondent- landlord in the civil suit which was filed
for recovery of the arrears of rent, the application for eviction was not
maintainable. Per contra, learned counsel for the respondent has strenuously
urged that appellant never paid rent on the due date and the respondent had to
file civil suit for recovery of rent and therefore appellant was a willful
defaulter. In support, learned counsel has placed reliance on two decisions of
this court in S. Sundaram Pillai & Others versus V.R. Pattabiraman &
Others [1985 (1) SCC 591] and Teegala Satyanarayana versus G.S. Bhagwan [1994
Supp (3) SCC 741]. It is not disputed that arrears of rent from 1.11.1978 were
accepted by the landlord in the said civil suit without any protest. We may
state here that all the courts below accepted that the rent for the period in
question was received by the landlord before filing of the present eviction
petition but found the appellant to be defaulter as he did not pay rent on the
due date and also after filing of the eviction petition for which the landlord
had to file civil suits.
Learned
counsel for the appellant has placed reliance on a decision of three Judge
Bench of this Court in S. Sundaram Pillai & Others versus V.R. Pattabiraman
& Others [1985 (1) SCC 591].
In
that case though the tenant had committed default but he had paid the entire
rent before filing of the suit by the landlord. The court observed that in
fact, the suit for eviction was filed by the landlord only to penalise the
tenant for having defaulted in the past and, therefore, it was held that such a
suit cannot be entertained because once the entire dues are paid to the landlord,
the cause of action for filing of a suit completely vanishes.
Next
decision of this court, which has been placed before us by the learned counsel
for the appellant is in K.A. Ramesh & Others versus Susheela Bai &
Others [1998 (3) SCC 58]. In that case arrears of rent were due from July, 1988
to December, 1988.
Before
filing of the eviction petition, the tenant made full payment of arrears of
rent by bank draft, which was accepted by the landlord. On these facts it was
held that there was no default at all, much less willful default on the part of
the tenant in paying the rent for the months in question and, therefore, the
application for eviction ought to have been summarily rejected. It was urged on
behalf of the landlord that even during the pendency of the eviction proceeding
there was default on the part of the tenant as no rent was paid and, therefore,
tenant was liable to be evicted. The court rejected the contention inter alia
on the ground that as the eviction petition became infructuous, for subsequent
default eviction cannot be ordered.
We are
of the opinion that in the case in hand at the time of filing of the present
eviction petition, landlord had no cause of action as the arrears of rent were
paid and accepted by the landlord and, therefore, the petition became infructuous
and liable to be rejected. For subsequent default also eviction cannot be
ordered in view of the stated legal position and in absence of any legal
provision in the Act. In view of the above legal position, the contention of
the learned counsel for the respondent has no substance. This contention is
also not sustainable in view of the decisions of this court in S. Sundaram Pillai
(supra) and Teegala Satyanarayana (supra).
Learned
counsel for the respondent has further contended that the application for
eviction was filed on 25.11.1981 and for the said month of November no rent was
paid. The tenancy was a yearly one and, therefore, there was no question of
default of rent for one month as rent for the entire year was to be paid within
one month from the end of the yearly tenancy. Therefore, this contention is
also unsustainable. Moreover, this plea was raised for the first time in this
appeal.
For
the reasons stated above, we find merit in the present appeal and accordingly
it is allowed by setting aside the impugned judgment and judgments of the
Appellate Court and the Rent Controller and consequently the application for
eviction shall stand dismissed. We further direct the respondent to hand over
the suit premises to the appellant within three months from today.
Considering
the facts and the circumstances of the case we direct the parties to bear their
own cost.
..........................J.
[R. P.
Sethi] ......................J.
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