Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 11
PETITIONER:
RAM SEWAK
Vs.
RESPONDENT:
MUNNA LAL
DATE OF JUDGMENT16/12/1987
BENCH:
RANGNATHAN, S.
BENCH:
RANGNATHAN, S.
MUKHARJI, SABYASACHI (J)
CITATION:
1988 AIR 452 1988 SCR (2) 416
1988 SCC (1) 389 JT 1987 (4) 690
1987 SCALE (2)1376
ACT:
Uttar Pradesh (Temporary) Control of Rent and Eviction
Act, 1947: ss. 3(1)(a) & 7C-Default in payment of rent-
Deposit in court-Validity of-Tenant to show existence of
circumstances justifying deposit.
HEADNOTE:
^
%
Section 3(1)(a) of the U.P. (Temporary) Control of Rent
and Eviction Act, 1947 permits eviction of the tenant who
is. in arrears of rent for more than three months and has
failed to pay the same to the landlord within one month of
the service upon him of a notice of demand. When a landlord
refuses to accept any rent lawfully paid to him, s. 7C(l)
entitles the tenant to deposit such rent in the court.
Section 7C(4) requires the court to cause a notice of the
deposit to be served on the landlord. Section 7C(6) provides
that where a deposit has been made as aforesaid, it shall be
deemed that the rent has been duly paid.
The appellant-tenant was in arrears of rent of the
demised shop from December, 1966 to February, 1971. The
amount remained unpaid despite notices dated March 22, 1971
and April 12, 1971. In the suit for his ejectment under s.
3(1)(a), the tenant took the defence that he had tendered
the rent to the plaintiff-landlord but the latter had
refused to accept it, that even the rent sent by money order
was refused, and thereupon he had made the deposit in the
court under s. 7C(1) of the Act, and there were no arrears
of rent due from him.
The trial court and the first appellate court held that
statutory conditions requisite for a valid deposit were not
fulfilled and, therefore, the default in payment of rent
within the meaning of s. 3(1)(a) stood established and the
tenant was liable to eviction. The High Court dismissed the
appeal.
In the appeal before this Court in addition to the
defence taken before the courts below, it was contended that
though the landlord was aware that the rent was being
deposited in the court ever since August, 1967 he waited for
a period of four years before issuing a notice of demand for
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 11
arrears for rent.
417
Dismissing the appeal, A
^
HELD: 1. Both in law and equity the appellant had no
case. The ejectment suit was properly decreed by the Courts
below. [429H; 430A]
2.1 The mere fact of a deposit under s. 7C.of the U.P.
(Temporary) Control of Rent and Eviction Act, 1947 in itself
cannot be an answer to an action under s. 3(1)(a) for
eviction of the tenant for default in payment of rent.
Irrespective of the fact of such deposit the tenant has to
show the existence of circumstances justifying the deposit.
[42tG; 423A]
Brahmanand v. Kaushalya Devi, [1977] 3 SCC 1, referred
to.
2.2 Reading s. 7C, the rules framed thereunder and the
statutory forms together, it cannot be said that a deposit
under s. 7C is necessarily a valid one preceded by an
enquiry or satisfaction of the Court that the condition
precedent set out in s. 7C(1) is fulfilled. Though the
applicant is asked to indicate briefly the circumstances in
which he wants to make a deposit, there is no procedure
contemplated for an enquiry into those circumstances. The
statutory provisions do not contemplate transmission of the
application to the landlord, the fixing of a date of hearing
on which both the tenant and the landlord could be heard or
the passing of a considered order by the Court thereafter
and being satisfied that there was in fact a tender of rent
by the tenant and a refusal by the landlord to receive the
rent or a dispute regarding the ownership of the property
which rendered it difficult or impossible for the tenant to
send money to the landlord straight. The notice which is
sent to the landlord merely sets out that the landlord is at
liberty to withdraw it if he so desires. [424C-F]
2.3 In the instant case, the trial court, the first
appellate court and the High Court have concurrently found
that there was no valid tender of rent by the tenant or
refusal thereof by the landlord. The application filed by
the tenant under s. 7C gave no details in the space against
column 6 of the form prescribed in Appendix ’A’ to the Rules
framed under the Act, setting out the circumstances in which
it was alleged that the landlord had refused to receive the
rent. The application barely asserted that the landlord had
refused to accept the rent. ’Where was no information as to
the nature of notice served on the landlord. [424H; 425B-C]
There was no enquiry of finding recorded in the
proceedings
418
under s. 7C which could at all operate as res judicata
against the landlord in the suit under s. 3(1)(a). Though
the order of the Munsif under s. 7C mentioned that the
landlord was absent though served succinctly, the order was
only that the landlord may withdraw the amount deposited on
proper application. It does not indicate any application of
mind by the Munsif as to whether the conditions precedent
for a valid deposit under s. 7C were satisfied. There was
certainly no finding at that stage on this vital
requirement. The grant of permission to deposit under s. 7C,
in the case cannot, therefore, be treated as conclusive of
the fact that a valid deposit had been made under that
section. [427B; 425D-E]
Haji Abdul Karim v. Mohd. Ismail, [1978] U.P. Rent
Cases 691, referred to.
Fateh Chand, v. Bal Saroop Goel, [1967] 65 ALJ 979;
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 11
Kaloo and others v. Gauri Shankar, [1981] 3 SCC 51 and
Kameshwar Singh Srivastava v. IVAddl. District Judge,
Lucknow and others, AIR 1987 S . . 138 distinguished.
3. The contention of the appellant that though the
landlord was aware that the rent was being deposited in the
court ever since August, 1967 he waited for a period of four
years before issuing a notice of demand for arrears of rent
was without substance. The delay was not due to any laches
on the part of the respondent but was caused on account of
the pendency of the litigation instituted by the tenant
claiming refund of a sum of Rs.275 paid towards rent. [429C-
D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1654 of
1979.
From the Judgment and order dated 28.3.1979 of the
Allahabad High Court in Second Appeal No. 3064 of 1972.
J.P. Goyal and S.K. Jain for the Appellant.
S.N. Kacker and O.K. Garg for the Respondent.
The Judgment of the Court was delivered by
RANGANATHAN, J. The question which has come up for
consideration in this appeal from judgment of the Allahabad
High Court is whether the deposit of rent by a tenant under
section 7-C of the Uttar
419
Pradesh (Temporary) Control of Rent and Eviction Act,
1947 (hereinafter called the ’Act’) as such entitles him to
resist successfully eviction under the provisions of the Act
on the ground of default in payment of rent.
2. The appellant, Ram Sewak, was a tenant of the
respondent, Munna Lal in respect of a shop on a rent of
Rs.25 per month. The rent upto 30. 11.66 had been paid by
the tenant. The landlord, however. claimed that the rent for
the period from 1. 12.66 till 28.2.1971, less an amount of
Rs.275 which had been received by him by way of money order,
was due from the appellant-tenant. This remained unpaid
despite notices of demand dated 22.3.71 and 12.4.1971, and a
notice of termination of the tenancy dated 27.4.1971. On
these allegations. The landlord instituted a suit for
ejectment of the tenant on the ground of non-payment of
rent. He also claimed the recovery of arrears of rent. mesne
profits and certain taxes, which were alleged to be payable
by the tenant. This suit was decreed by the learned Munsif,
Jhansi. A first appeal was unsuccessful insorfar as the
decree related to the eviction of the petitioner was
concerned but the claim for arrears of rent was rejected in
part on the ground of limitation. A second appeal was also
dismissed by the High Court and hence the present appeal.
3. The defence of the tenant to the suit was that he
had tendered the rent to the plaintiff-landlord but the
latter had refused to accept it. The rent was sent by money
order but even then it was refused. It was submitted that
the tenant had thereupon made an application on 31.7.1967
under section 7-C of the Act in the court of the learned
Munsif, Jhansi, for permission to deposit the rent in the
court. The Court issued a notice to the landlord, which was
also duly served on him. On the date of hearing there was no
appearance on behalf of the landlord. Thereupon the learned
Munsif passed an order, on 11.11.1967, permitting the tenant
to deposit the arrears of rent as well as future rent in
court. It was claimed that the tenant had deposited arrears
of rent amounting to Rs.200 for the period from 1. 12.1966
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 11
to 31.7.1967 in the court along with application and that he
continued to deposit in court the rent thereafter from month
to month. It was, therefore, submitted that there were no
arrears of rent due from the tenant to the landlord and
that, therefore, the suit for eviction was not maintainable.
4. The learned Munsif and, on appeal, the learned
Subordinate Judge found as a fact that the plaintiff had
failed to prove that he had tendered the rent to the
landlord or that the latter that the latter had refused to
420
accept it. This being so, they held, the statutory
conditions requisite for a valid deposit under section 7C
were not fulfilled. Neither the application made by the
plaintiff under S. 7C nor the order passed by the learned
Munsif on 11.11.67 could therefore, help the plaintiff. In
this view of the matter, both the courts held that the
default in payment of rent, within the meaning of sec.
3(1)(a) of the Act, stood established and the plaintiff was,
therefore, liable to eviction. Before us, as before the
courts below, learned counsel for the tenant based his case
solely on the order under the provisions of S. 7C of the
Act. That section reads as follows:
"7-C-Payment by Deposit of Rental) When a landlord
refuses to accept any rent lawfully paid to him by
a tenant in respect of any accommodation the
tenant may in the prescribed manner deposit such
rent and continue to deposit any subsequent rent
which becomes due in respect of such accommodation
unless the landlord in the mean time signifies by
notice in writing to the tenant his willingness to
accept.
(2) Where any bona fide doubt or dispute has
arisen as to the person who is entitled to receive
any rent referred to in sub-section (I) in respect
of any accommodation, the tenant may similarly
deposit the rent stating the circumstances under
which such deposit is made and may until such
doubt has been removed or such dispute has been
settled by the decision of any competent court, or
by the settlement between the parties, continue to
deposit, in like manner, the rent that may
subsequently become due in respect of such
building.
(3) The deposit referred to in sub-section
(1) or (2) shall be made in the Court of the
Munsif having jurisdiction in the area where the
accommodation is situate.
(4) on any deposit being made under sub-
section (1) the Court shall cause a notice of the
deposit to be served on the landlord, and the
amount of deposit may be withdrawn by the landlord
on application made by him to the Court in this
behalf.
(5) When a deposit has been made under sub-
section (2) the amount of the deposit shall be
held by the Court for
421
the benefit of the person who may be entitled to
it and the same shall be payable to such person.
(6) In any case where a deposit has been
made, as aforesaid, it shall be deemed that the
rent has been duly paid by the tenant to the
landlord."
Learned counsel submitted that, in the event of a landlord’s
refusal to accept the rent, the tenant had no other
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 11
alternative but to deposit the same in the court under the
above special provision. It was open to the landlord to have
appeared before the learned Munsif at the time of hearing of
the application for deposit and put forward any pleas, which
he might have had. The landlord not having done this, it was
claimed that the order passed by the learned Munsif on
11.11.1967 provides a complete defence to the action under
section 3(1)(a) of the Act against the tenant particularly
in view of the language of sub-section (6) of s. 7C. It was
contended that the statute should not be constured as
requiring that a tenant should prove the fact of his having
tendered the rent and the landlord having refused it twice
over once while making a deposit under s. 7C and, again, in
proceedings under s. 3(1)(a). If, despite a deposit under
section 7-C, an action under section 3(1)(a) were to be
permitted, it was urged, section 7-C would be rendered
nugatory and otiose. Learned counsel also made a point that
though the landlord in this case had knowledge that the rent
was being deposited in court since August 1967, he chose to
keep quiet for a period of four years before issuing a
notice calling upon the appellant to pay the arrears of
rent.
6. Prima facie, the arguments of the appellant appear
to have some force. However, after hearing learned counsel
for the respondent and considering the facts of this case
and the relevant statutory provisions, we have come to the
conclusion that this appeal must fail both on technicalities
as well as on equities.
7. S. 7C is no doubt a provision intended to protect
the interests of the tenant. But there is the authority of
this Court holding that the mere fact of a deposit under
this Section, in itself cannot be an answer to an action
u/s. 3(1)(a). In Brahmanand v. Kaushalya Devi, [1977J 3] SCC
1, the relations between the landlord and tenant were highly
strained. The tenant therefore deposited the moneys into
court and pleaded this as a defence to an action u/s.
3(1)(a). The High Court rejected this plea on the ground
that there was nothing to show that the tenant had tendered
the rent physically to the landlord and so the
422
deposit could not be treated as a valid deposit u/s. 7C(I)
so attract the deeming effect in S. 7C(6). This Court held
that the High Court had taken too narrow a view of the words
’paid to’ the landlord. Krishna Iyer J. Observed:
"a liberal construction of the expression ’paid to
him by a tenant. in section 7-C(l) is necessary.
Physically offering payment when the relations
between the parties are strained is to ask for
trouble and be impractical. But harassing the
landlord by straight-way depositing the rent in
court without fulfilment of the conditions
required by section 7-C( l) is also unwarranted.
Section 7-C(6) by using the expression ’where the
deposit has been made as aforesaid’ takes us back
to section 7-C( I). That is to say the deposit is
permissible only when the condition in section 7-
C(l) is complied with. If the landlord refuses to
accept rent paid to him a deposit is permissible.
But payment need not be by physical tender, person
to person. It can be by money order, or through
messenger or by sending a notice to the landlord
asking him to nominate a bank into which the rents
may be regularly paid to the credit of the
landlord. If the landlord refuses under these
circumstances, then a court deposit will be the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 11
remedy."
In the present case, on account of the bad
blood between the parties a physical tender of the
rent is ruled out. At the same time the Courts
below have not considered whether the
circumstances which drove the appellant into
depositing the rent in court were such as
eliminated the other possibilities of direct
payment we have indicated. It is therefore fair
to set aside the finding of the Courts below and
remand the case to the lower appellate Court
(which is the final court of fact under ordinary
circumstances) to ascertain whether any of the
alternatives we have indicated, or may otherwise
be made out by the tenant as equivalent to payment
of rent, is present in the case. if no such
circumstances is made out by the tenant justifying
deposit of rent in court, the decree for eviction
will stand. Other wise, the petition for eviction
will be dismissed."
It is important to note that this Court did not view the
deposit u/s. 7C as conclusive of the issue. On the other
hand, it held that if no circumstance was made out by the
tenant justifying the deposit in
423
court, the decree for eviction will stand. In other words,
this Court the view that, irrespective of the fact of
deposit u/s. 7C, the tenant has to show, when a suit is
under S. 3(1)(a), that the existence of circumstances
justifying a deposit under S. 7C. In the present case, the
Courts have been concurrently found that there was no valid
tender of rent by the tenant or refusal thereof by the
landlord. There is no ground therefore to interfere with the
decision of the Courts below.
8. A careful perusal of S. 7C and the rules and forms
made thereunder also supports the above conclusion. The
application for a deposit under this section has to be made
in the form prescribed in Appendix A to the rules framed
under the Act. The appellant’s application to the court was
filed in this form. Column 6 of the application form is
filled in by the tenant may be extracted:
(A) (B)
6. Whether deposit is made "the deposit is being
under sub-section (1)/(2) made under sub-section(1)
of Section 7-C.-In case of of 7-C of the Act. Fact in
Sub-section(1) briefly brief is that the landlord
state the circumstances of has reused to accept the
refusal by the owner. in rent. It is being deposited
case of sub-section(2), under section 7-c of the UP
mention circumstances of act 3 of 1947."
doubt or dispute about
ownership.
The rules framed under the Act also prescribed the form in
which notice is to be served on the respondent when an
application is made under section 7-C This form reads as
follows:
XXXX XX
"To
Whereas .............. has deposited Rs .....
as rent for the period .. ...for the premises
.. .... Of which you have been mentioned as
the land lord.
424
Notice is hereby given to you under sub-
section (4) of Section 7-C of the U.P.
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 11
(Temporary) Control of Rent and Eviction Act,
1947, that the said amount will be paid to
you on an application for withdrawal being
presented to this Court.
Given under my hand seal this day of
. . .. . .
Munsif."
Reading section 7-C, the rules framed thereunder and the
above statutory forms together, it would appear that this
provision envisages that where a tenant finds that the
landlord refuses to accept the rent or there is some dispute
regarding the ownership, he can, in order to protect his
interests seek the permission of the Court to deposit the
arrears of rent as well as future rent in the court instead
of running after the landlord. Though the applicant is asked
to indicate briefly the circumstances in which he wants to
make a deposit, there is no procedure contemplated for an
enquiry into those circumstances. The section or rules do
not seem to contemplate the transmission of this application
to the landlord, the fixing of a date of hearing on which
both the tenant and the landlord could be heard or the
passing of a considered order by the court after hearing
both sides and being satisfied that there was in fact a
tender of rent by the tenant and a refusal by the landlord
to receive the rent or a dispute regarding the ownership of
the property which rendered it difficult or impossible for
the tenant to send the money to the landlord straight. The
notice which is sent to the landlord merely sets out that
money has been deposited in the court and that the landlord
is at liberty to withdraw it if he so desires. All that the
landlord can do on receipt of the notice is either to
withdraw the moneys deposited or stop future deposits by
expressing a willingness directly to the tenant to accept
direct payment of rent thereafter. On the language of the
statutory provisions therefore, it is not possible to say
that a deposit u/s. 7C is necessarily a valid one preceded
by an enquiry or satisfaction of the court that the
condition precedent set out in S. 7C( I) is fulfilled.
9. Counsel for the petitioner submits that in Fateh
Chand v. Bal Saroop Goel, [ 1967] 65 ALJ 979 and other
cases, the Allahabad High Court has held that a deposit u/s.
7C is not a mere formality and that before directing or
permitting a deposit the court has to go into the question
whether there has been a tender and a refusal. In fact, the
425
High Court has gone further and held that the Court has to
go into that question, at two stages: one, when an
application is presented and before issuing notice to the
landlord; and the other when the landlord appears before the
court and disputes the validity of the procedure sought to
be invoked by the tenant. Perhaps these requirements have
been read into the section on grounds of equity and natural
justice. Whatever that may be, we are constrained to say
that such procedure does not appear to have been followed in
this case. As we have already mentioned the application in
the present case gave no details in the space against column
6. Instead of setting out the circumstances in which it was
alleged that the landlord had refused to receive the rent,
the application barely asserted that the landlord had
refused to accept the rent. There is no information as to
the nature of the notice served on the landlord but it must
have been only in the form of Appendix already set out.
Again, though the application of the appellant under section
7-C appears to have come up before the Munsif on 11.11.1967,
and the order mentions that the landlord is "absent though
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 11
served sufficiently", the order is only that the landlord
may withdraw the amount deposited on proper application. It
does not indicate any application of mind by the learned
Munsif as to whether the conditions precedent for a valid
deposit u/s. 7C were satisfied. There is certainly no
finding at that stage on this vital requirement. The grant
of permission to deposit under s. 7C, in the circumstances
of the case, cannot therefore be treated as conclusive that
a valid deposit had been made under that section.
10. Sri Kackar took up the stand that even if S. 7C is
interpreted as providing an opportunity to both parties and
even if a clear finding is recorded in these proceedings,
after hearing both parties, that the preconditions of a
valid deposit under that section are satisfied, that will
not constitute res judicata or take away the court’s rights
in an action u/s. 3(1)(a), of being satisfied on the
evidence before it to the same effect. He relied in this
context on two decisions of the Allahabad High Court. It is
sufficient to refer to extract some portions from the head
note of one of them, viz. Hazi Abdul Karim v. Mohd. Ismail.
[1978] U.P. Rent Cases 691) P.
"A finding merely on a collateral fact of
jurisdiction cannot operate as res judicata in
later proceedings between the same parties. It has
been stated in Halsbury’s Laws of England, Third
Edition (Volume XV) paragraph 367 (at page 192).
It is a fundamental rule that a judgment is not
conclusive to anything but the point decided, or
of any matter
426
which came collaterally in question or of any
matter incidentally cognizable.
The principle behind this rule seems to be
that even though in the previous proceedings a
decision on a collateral fact about jurisdiction,
wrongly given may be binding on the parties for a
limited purpose i.e., only so far as those
proceedings are concerned, yet it would completely
defeat the ends of justice, if such erroneous
decision were allowed to become final and
perpetuate itself. It would be conducive to the
ends of justice that in later regular proceedings
the parties should not be thwarded by an earlier
wrong . finding and should be afforded full
opportunity of demonstrating that the condition
precedent to the exercise of jurisdiction were
absent.
It cannot, therefore, operate as res-judicata
and the parties must be left free to agitate the
same question again in a subsequent suit for
ejectment or other appropriate proceedings. The
whole scheme of Section 7-C is inconsistent with
any adjudication of the rights of the parties.
Under this section the learned Munsif is not
required to determine the rights and obligations
of the landlord and the tenant in these
proceedings. All that he has to do on deposit of
rent under Section 7-C (1) is to issue a notice to
the landlord informing him that such deposit has
been made.
The deposit, made under section 7-C is by
itself a neutral act and it acquires its legal
completion only when F. the rights of the parties
are later determined in appropriate proceedings.
The deposit is thus without prejudice to the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 11
rights of the parties which ought to be determined
in the appropriate proceedings.
X x x x x X
..... the entire scheme of Section 7-C leads to
the inescapable conclusion that it is merely a
tentative or provisional forum provided for the
purpose of checkmating any sinister attempt on the
part of the landlord for letting it appear that no
rent had been actually paid to him and thereby
procuring the ejectment of a tenant. It is a legal
fiction operating
427
for the benefit of tenant in order to destroy a
substerfuge which may unjustly result in the
eviction of the tenant. A deposit, therefore, per
se does not decide the rights of the parties. Its
significance and legal impost actually take shape
according to the tenor and upshot of other
subsequent proceedings in which such rights any be
actually adjudicated.
For the purposes of the present case, we need not go into
this larger question. In view of our conclusion regarding
the scope of S. 7C and our finding that, here. there was no
enquiry or finding recorded in the proceedings u s. 7C which
could at all operate as res judicata against the landlord in
the suit u/s. 3( l)(a).
11. Learned counsel for the appellant strongly relied
on two decisions of this court in support of his contention.
The first was Kaloo and others v. GauriShanker, [1981] 3
S.C.C. 31. 51. Learned counsel relied on certain passages in
paragraphs 13, 19 and 23. In our opinion this decision is
not of much help as the court in that case was concerned
with a clear case of refusal of rent by the landlord fully
justifying the deposit under section 7-C. This is cleary
from various passages in the judgment particularly in
paragraphs 19 and 20. The other judgment relied upon is that
of this court in Kameshwar Singh Srivastava v. IV Addl.
District Judge, Lucknow and others, AIR 1987 S.C. 138. This
was a decision under a later Act of Uttar Pradesh, namely
Act 13 of 1972. Section 3() of the said Act is a provision
similar to section 7-C of the Act presently in question. In
this case also it was found as a fact that there had been a
tender of rent to the landlord, who did not accept the same
and this was held to be a complete answer in proceedings for
eviction. There can be no doubt that, by virtue of section
7-C(6) a deposit properly and justifiably made under section
7-C would be deemed to be a payment of rent to the landlord
himself. Once there is a proof of a valid deposit, then
there can be no eviction of the tenant under section 3(1)(a)
since the section equates such a deposit to a payment to the
landlord, thus negativing the existence of any arrears of
rent or any wilful default. But, at the same time it is
necessary for the courts to ensure that the tenants do not
resort to the provisions of section 7-C merely to harass the
landlord. The decision in Kameshwar Singh’s case emphasises
this aspect in paragraph 7:
"7. We should not be understood to have laid down
that the tenant should deposit rent in court
instead of paying the same to the landlord.
Primarily, a tenant is under a legal obligation to
pay rent to the landlord as and when due and
428
if he fails to pay the same on demand from the
landlord and if he is in arrears for a period of
more than four months he would be liable to
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 11
ejectment. Where there is a bona fide dispute
regarding the landlord’s right to receive rent on
account of there being several claimants or if the
landlord refuses to accept the rent without there
being any justification for the same, the tenant
would be entitled to take proceedings under s. 30
of the Act and deposit the rent in court thereupon
he would be deemed to have paid the rent to the
landlord, consequently he would be relieved of his
liability of eviction. It does not however follow
that the tenant is entitled to disregard the
landlord or ignore his demand for payment of rent
to him. The provisions of the Act safeguard
tenants interest but it must be kept in mind that
the landlord’s right to receive rent and in the
event of the tenant’s being in arrears of rent for
a period of more than four months, his right to
evict the tenant is preserved, if the tenant makes
the deposit in court without there being any
justification for the same or it he refuses to pay
the rent even on the service of notice of demand
by the landlord, he would be liable to eviction.
However, the question whether the tenant is
justified in depositing the rent in court and
whether deeming provision of s; 30(6) would be
available to him to relieve him from the liability
of eviction would depend upon facts of each case.
As noted earlier on the special facts of the
instant case we have no doubt in our mind that the
appellant had relieved himself from the liability
of eviction and he was not in arrears of rent for
a period of more than four months."
This decision also, incidentally, proceeds on the basis
that, despite an order u/s. 30, it is open to the Court in
the proceedings for eviction, to consider whether the
deposit was a valid one or not. In the light of the above
observations also, were justified, having regard to the
facts and circumstances of the present case, in ordering
eviction.
12. Learned counsel for the appellant submitted that
such an interpretation as we have upheld would completely
render section 7-C a dead letter. This is not so. Section 7-
C, as we have pointed out earlier, is only intended as a
protection to the tenant to tide-over a particular genuine
difficulty. It enables the tenant to deposit the rent from
time to time in the court so that the arrears of rent do not
accummulate and he is not constrained to pay large sums of
money owing to the landlord on a future date. Secondly, it
safeguards the landlord inasmuch as the
429
rent from month to month is being deposited in the court and
the landlord is not prejudiced by a huge accummulation of
rent which he may find it later on, difficult to recover.
Thirdly, it also protects the tenant in this that, if
ultimately he is able to show in the eviction proceedings
that the deposit was made because of the refusal of the
landlord to accept the rent, it provides a complete answer
to the plea of eviction under section 3(1)(a). It cannot,
therefore, be said that section 7-C loses all its meaning
and becomes otiose if it is interpreted in the restrictive
manner above discussed.
13. This leaves only the equities of the matter to be
considered. The contention of the learned counsel for the
appellant that though the landlord was aware that the rent
was being deposited in the court ever since August 1967, he
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 11
waited for a period of four years before issuing a notice of
demand for arrears of rent is seen to be without substance.
Shri Kacker has pointed out that the appellant had filed a
suit (No. 786 of 1968) claiming that he had paid Rs.275
towards rent by money order and claiming refund of the same.
This suit was pending till April 197 1. On 19.4.197 1, the
suit was dismissed. The Third Additional Munsif, Jhansi
found that the sum of Rs.275 had been paid towards rent for
the period ending 30.11.1966 and that the appellant was not
entitled to the refund thereof. Shri Kacker rightly points
out that since the appellant had raised a plea in this suit
that the sum of Rs.275 had been paid by him towards the
arrears of rent due after November 1966, the landlord was
disabled from instituting proceedings for eviction until
this issue was decided in the suit. In other words, the
delay from August 1967, when the appellant started
depositing the rent in court till 1971, when the proceedings
for ejectment were started, was not due to any laches on the
part of the respondent but was caused on account of the
pendency of the litigation instituted by the tenant. Indeed
it is rather unbelievable that, after having alleged in the
application under ’section 7-C that the landlord had refused
to accept the amount tendered and deposited the arrears of
rent in court, the tenant would have sent a sum of Rs.275 by
money order on 30.11.67, as alleged. In fact the findings in
that suit, incidentally, also negative the tenant’s
allegation that he had sent several money orders which the
landlord had refused to receive. But this aspect need not
detain us as all the three courts have concurrently found
that in the present case the appellant had not been able to
prove that there had been a tender of the rent by him and
refusal thereof by the landlord.
14. In the result we have come to the conclusion that
both in law and in equity the appellant has no case and that
the ejectment suit was
430
properly decreed by the courts below. The appeal, therefore,
fails and is dismissed. We, however, make no order as to
costs, since the arrears of rent are available to the
landlord for being withdrawn from the court
P.S.S. Appeal dismissed.
431