LawDistill
Supreme Court of India

PAWAN KUMAR GUPTA vs B.R. GUPTA on 9 May, 2017

Cites 1 provisionsCites 2 judgmentsCited by 0
C.A. No.-006461 - 2017Official PDFBench Jasti Chelameswar, Syed Abdul NazeerAdvocates PRERNA MEHTA
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURSIDCITON
CIVIL APPEAL NO. 6461 OF 2017
(Arising out of S.L.P. (Civil) No.36427 of 2014
PAWAN KUMAR GUPTA … APPELLANT
VERSUS
B.R. GUPTA …RESPONDENT
J U D G M E N T

1 Leave granted.

2 This appeal emanates from the proceedings of an eviction petition filed by the respondent-landlord on 12.4.2004 under

Sections 14(1)(a),(b), (d) and (h) of the Delhi Rent Control Act, 1958

(for short ‘the Act’) against the appellant-tenant before the

Additional Rent Controller, Tis Hazari Courts, Delhi, seeking

eviction of the appellant-tenant from the premises bearing property

No.47, 1st Floor, Bunglow Road, Kamla Nagar, Delhi. It is an

admitted position that the premises in question was let out by the

landlord to the tenant for residential purposes and the last paid

rent was @ Rs.500/- p.m. exclusive of other charges. The eviction

petition was confined ultimately to the solitary ground under

Section 14(1)(a) of the Act. The landlord issued a demand notice

under Section 14(1)(a) of the Act to the appellant-tenant on

19.1.2004 demanding rent @ Rs.500/- p.m. w.e.f. 1.4.2001 along

with interest thereon. Since the tenant failed to pay the rent, the

petition for eviction of the tenant was filed as aforesaid.

3 The tenant filed the written statement denying the allegations

made in the eviction petition besides providing his defence on

merits. However, with regard to the ground of non-payment of

rent, it was, inter alia, contended that he is not guilty of

non-payment and he had paid the rent from time to time to the JUDGMENT

landlord who did not issue any receipt against the same. It was

further contended that pursuant to the receipt of demand notice

dated 19.1.2004, he had sent a reply dated 22.3.2004 whereby he

tendered a sum of Rs.18,000/- to the landlord by way of a bank

draft towards rent @ Rs.500/- p.m. for the period 1.4.2001 till

30.9.2004. To the aforesaid written statement of the tenant, the

landlord filed his replication categorically denying the allegations

made in the written statement and reaffirmed the contents of his

eviction petition.

4 After completion of the pleadings, the matter was taken up by

the Rent Controller for consideration under Section 15(1) of the Act.

Keeping in view the respective stand of the parties, the Rent

Controller passed an order dated 7.2.2005 directing the tenant to

pay or deposit a sum of Rs.500/- p.m. as rent w.e.f. 1.10.2004 and

continue to pay the same at the aforesaid rate month by month.

5 Thereafter, parties led their evidence. After the conclusion of

the evidence, the Rent Controller allowed the petition by order dated

27.4.2010 under Section 14(1)(a) of the Act. The Rent Controller

held that the tenant has failed to prove that he had tendered the

rent to the landlord pursuant to the demand notice dated JUDGMENT

19.1.2004 and thus the tenant is guilty of non-payment of rent

within the ambit of Section 14(1)(a) of the Act. While passing the

said judgment the Rent Controller directed the Nazir to submit a

report for the purpose of consideration of entitlement of the tenant

to the benefit under Section 14(2) of the Act. The matter was taken

up by the Rent Controller on 6.7.2010 on which date the Rent

Controller perused the Nazir’s report who stated that the tenant

even failed to deposit the rent regularly in compliance of the said

order under Section 15(1) of the Act. Therefore, the Rent Controller

by an order dated 6.7.2010 held that the tenant is not entitled to

the benefit of Section 14(2) of the Act and passed eviction order

under Section 14(1)(a) of the Act. The tenant challenged the said

order by filing an appeal before the Additional Rent Control

Tribunal, North Delhi (for short ‘Tribunal’). The appeal was allowed

by the Tribunal on 12.1.2011 whereby the matter was remanded to

the Rent Controller.

6 Pursuant to the order dated 12.1.2011 passed by the Tribunal,

the Rent Controller allowed the tenant to record examination of two

witnesses. He was also permitted to mark certain documents. The

Rent Controller after hearing the parties, allowed the petition by JUDGMENT

order dated 5.7.2011 under Section 14(1)(a) of the Act by holding

that the tenant failed to pay the rent despite service of demand

notice and committed default within the meaning of Section 14(1)(a)

of the Act. The Rent Controller directed the tenant to deposit the

arrears of rent from 1.4.2001 @ Rs.500/- p.m. along with interest @

15% p.a. Accordingly, the earlier order dated 7.2.2005 passed

under Section 15(1) of the Act was modified. Nazir of the court was

directed to submit report for consideration of the entitlement of the

tenant to the benefit under Section 14(2) of the Act.

7 Nazir submitted a report whereby it was found that the tenant

had been guilty of non-compliance of the order dated 7.2.2005

passed under Section 15(1) of the Act. The tenant took the stand

that since he had complied with the final judgment dated 5.7.2011,

the tenant is entitled to the benefit under Section 14(2) of the Act.

After hearing the learned counsel for the parties, the Rent

Controller by an order dated 24.8.2011 held that the tenant has

failed to provide any explanation regarding delay in depositing of

rent month by month in terms of the order dated 7.2.2005. Thus

he is not entitled to the benefit under Section 14(2) of the Act.

Therefore, the eviction order was passed by the Rent Controller JUDGMENT

against the tenant under Section 14(1)(a) of the Act.

8 The appeal filed by the tenant challenging the said order of the

Rent Controller before the Rent Control Tribunal was allowed on

24.2.2012. The landlord challenged the said order before the High

Court of Delhi in C.M. Main No.415 of 2012. The High Court by

order dated 01.12.2014 has allowed the appeal and set aside the

order of the Tribunal and restored the order passed by the Rent

Controller. The tenant has called in question the legality and

correctness of the said order in this appeal.

9 Learned senior counsel appearing for the appellant-tenant

argues that the order dated 7.2.2005 passed under Section 15(1) of

the Act was modified by a later order dated 5.7.2011 wherein a

direction was issued to the tenant to deposit the arrears of rent

along with interest @15% p.a. within one month from the date of

the said order. This order has been complied with by the tenant.

Thus order dated 7.2.2005 has merged with the order dated

5.7.2011. Secondly, it is argued that the High Court has placed

reliance in Hem Chand etc. etc. v. The Delhi Cloth & General

Mills Co. Ltd. and Anr. Etc. etc.1. This judgment has been

impliedly overruled in Shyamcharan Sharma v. Dharamdas2 JUDGMENT

whereby this Court has held that the Rent Controller is vested with

the discretionary power to condone the default and extend the time

for deposit of the rent. This position has been recognized by this

Court in Ram Murti v. Bhola Nath and Anr.3 whereby it was held

that the Rent Controller has power to condone the default on the

part of the tenant in making payment or deposit of the future rents.

In the light of the judgment in Ram Murti (Supra), the High Court

ought to have condoned the delay in payment of the rents.

10 On the other hand, learned counsel appearing for the

respondent-landlord submits that the tenant is a contumacious and

a willful defaulter of the rents. He had the opportunity to pay the

arrears of rent in response to the notice issued under Section 14(1)

(a) of the Act. Instead of paying the rents he raised a defence that

he had paid the rent to the landlord who did not issue any receipt

against the same. It was further contended that he had paid

Rs.18,000/- towards the rent by way of bank draft from 1.4.2001 to

31.1.2004. That is why the Rent Controller, while considering the JUDGMENT

case under Section 15(1), directed the tenant to pay the rent @

Rs.500/- p.m. from 1.10.2004 and continue to pay the same at the

same rate month by month. The question relating to payment from

1.4.2001 to 30.9.2004 was kept open. The tenant has failed to pay

the rent in terms of this order. When the matter was taken up for

consideration under Section (14)(1)(a) the court directed the tenant

to pay the rent for the aforesaid period. There is no merger of the

order dated 7.2.2005 in the order dated 5.7.2011.

11 Similarly, it is contended that the tenant has failed to comply

with the order under Section 15(1) of the Act. He has deposited the

rent from 1.1.2004 to 31.1.2006 after the expiry of 9 months 12

days and for the period 1.4.2006 to 31.2.2007. The deposit of rent

was made after the expiry of 3 months and 6 days. Similarly, the

payment of rent for the subsequent period is also made sometimes

after one year and sometimes after 3 months. The tenant has not

offered any explanation for the delay in payment of rents.

Therefore, the order impugned does not call for interference.

12 Before considering the rival contentions of the parties, it is JUDGMENT

desirable to set out relevant provisions of the Act. Section 14(1)

provides that no tenant can be evicted except an application made

to the Controller for an order for the recovery of possession on one

or more grounds specified in the section. Section 14(1)(a) provides

for eviction of a tenant on the ground of default in payment of rent,

if the tenant has neither paid nor tendered the whole of arrears of

rent legally recoverable from him within two months of the date on

which the notice of demand for arrears of rent has been served on

him by the landlord in the manner provided in Section 106 of the

Transfer of Property Act, 1882. It is clear that if the tenant pays the

arrears of rent within two months of service of notice, the landlord

cannot get order for recovery of possession on the ground of default

in payment of rent but if the tenant fails to pay the rent as required

under Section 14(1)(a), the proceedings are taken under Section

15(1) of the Act. Under this provision the Controller shall, after

giving the parties opportunity of being heard, make an order

directing the tenant to pay the landlord or deposit with the

Controller within one month of the date of the order, an amount

calculated at the rate of rent at which it was last paid for the period

for which the arrears of rent were legally recoverable from the JUDGMENT

tenant including the period subsequent thereto upto the end of the

month previous to that in which payment or deposit is made and to

continue to pay or deposit month by month by 15th of each

succeeding month a sum equal to the rent at that rate.

13 Sub-section (6) of Section 15 states that if a tenant makes

payment or deposit as required by sub-section (1) or sub-section

(3), no order shall be made for recovery of possession on the ground

of default in the payment of rent by the tenant, but the Controller

may allow such costs as he deem fit to the landlord. Sub-section

(7) of Section 15 states that if a tenant fails to make payment or

deposit as required by this section, the Controller may order the

defence against eviction to be struck out and proceed with the

hearing of the application. The other important provision is

sub-section (2) of Section 14 which states that no order for recovery

of possession of any premises shall be made on the ground specified

in clause (a) of the proviso to sub-section (1), if the tenant makes

payment or deposit as required by Section 15. Thus, payment of

rent as directed by the Controller under sub-section (1) of Section

15 is a must in order to avoid eviction under Section 14(1)(a).

14 The first contention of the learned senior counsel for the JUDGMENT

tenant is that the order dated 07.02.2005 passed under Section

15(1) of the Act has been modified by the Rent Controller by his

order dated 05.07.2011. Therefore, the Rent Controller was not

justified in passing an order of eviction for non-payment of rent in

terms of the order dated 7th February, 2005. There is no merit in

this contention. As noticed above, the appellant claimed rent @

Rupees five hundred per month from 1st April, 2001 along with

interest thereon by issuing a demand notice under Section 14(1)(a).

Since tenant failed to comply with the demand made in the notice,

the landlord filed the eviction petition under Section 14(1)(a) of the

Act. The tenant filed a counter stating that he had paid the rent

from time to time and that the landlord did not issue any receipt

against the same. It was also contended that pursuant to the

demand notice dated 19th January, 2004, he had sent the reply

along with a demand draft for a sum of Rupees 18,000/- towards

the rent @ Rupees five hundred per month from 1.4.2001 to

31.3.2004. The Rent Controller passed order dated 07.02.2005

under Section 15(1) of the Act, directing the tenant to pay or deposit

a sum of Rupees five hundred per month with effect from 1.10.2004

within one month from the date of the order and further continue to JUDGMENT

pay or deposit future rent at the aforesaid rate month by month by

15th day of each succeeding month during trial. This order was

passed because there was dispute in relation to payment of rent

from 1.4.2001 till 30.9.2004. The question relating payment of rent

for this period was kept open. After trial, the Rent Controller came

to the conclusion that the tenant has failed to establish the

payment of arrears of rents from 1.4.2001. The tenant has also

failed to pay the rents from 1.10.2004 in terms of the order dated

07.02.2005. In the circumstances, it is futile to contend that that

the order dated 07.02.2005 has merged with the order dated

05.07.2011.

15 The second contention of the appellant is that the court below

has not considered condonation of delay in payment of rent having

regard to the decision in Ram Murti (supra). It is his submission

that the decision relied on by the High Court in Hem Chand (supra)

has been impliedly overruled in Shyamcharan Sharma (supra). In

Hem Chand (supra) this Court has held that the Rent Controller

has no discretion to extend the time for payment of rent under

Section 15(1) of the Act. However, in Ram Murti (supra) this Court

after taking into consideration the decision in Shyamcharan JUDGMENT

Sharma (supra) has held that Rent Controller has power to condone

the default on the part of the tenant in making payment or deposit

of the future rents. This decision has application in a case where

the tenant seeks condonation of delay in payment of rents. It is

relevant to notice here that the tenant is a willful defaulter of rents.

He took a stand before the Rent Controller that he had paid the

entire arrears of rent. The Rent Controller passed an order dated

07.02.2005 under Section 15(1) of the Act directing him to pay or

deposit the rent at the rate of Rs. 500/- per month with effect from

1.10.2004 and continue to pay the same at the aforesaid rate

month by month. Admittedly, he has failed to pay the rent in terms

of the said order. After conclusion of the trial, the Rent Controller

allowed the petition by order dated 27.4.2010 under Section 14(1)(a)

of the Act. The Rent Controller held that the tenant failed to prove

that he had tendered the rent to the landlord pursuant to the

demand notice dated 19.1.2004. The Rent Controller directed the

Nazir to submit a report for the purpose of consideration of

entitlement of the tenant to the benefit under Section 14(2) of the

Act. The Nazir’s report showed that the tenant had not paid the

rent regularly in compliance with the order passed under Section JUDGMENT

15(1) of the Act. There was a long delay in deposit of rents.

Condonation of delay can take place only when the defaulting

tenants so pleads with justifiable reasons which would show that

he was prevented from compliance by circumstances beyond his

control. The tenant has not offered any explanation for the delay in

deposit of rents. Therefore, we do not find any justification to

interfere with the order of the High Court.

16 In the result, the appeal fails and it is accordingly dismissed.

However, the appellant is granted three months time from today to

vacate and deliver vacant possession of the premises in question to

the respondent subject to filing of an undertaking before this Court

to vacate the premises on or before three months from today. The

undertaking shall be filed within two weeks from today.

(S. ABDUL NAZEER)New Delhi JUDGMENT May 9, 2017