Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 9
PETITIONER:
MADAN MOHAN
Vs.
RESPONDENT:
KRISHAN KUMAR SOOD
DATE OF JUDGMENT12/01/1993
BENCH:
YOGESHWAR DAYAL (J)
BENCH:
YOGESHWAR DAYAL (J)
VERMA, JAGDISH SARAN (J)
VENKATACHALA N. (J)
CITATION:
1993 SCR (1) 107 1994 SCC Supl. (1) 437
JT 1993 (1) 162 1993 SCALE (1)71
ACT:
HEADNOTE:
JUDGMENT:
The Judgment of the Court was delivered by
YOGESHWAR DAYAL, J.- Special leave granted.
2. With the consent of learned counsel for the parties,
the appeal itself was heard.
3. The respondent is a tenant at the rate of Rs 183.33 per
month in the premises in dispute i.e. shop No. 50, The Mail,
Shimla. On March 7, 1983, late Smt Dhani Devi, predecessor-
in-interest of appellant No. 2 and Shri Madan Mohan,
appellant No. 1, filed an application for eviction of the
respondent on various grounds. One of the grounds on which
the eviction was claimed was
441
non-payment of rent. It was stated in the eviction
petition that the respondent was in arrears of rent with
effect from March 1, 1980 to February 28, 1983. The Rent
Controller on July 29, 1986 passed an order of eviction on
the ground of non-payment of arrears of rent. The operative
part of the said order is as under:
"In the light of my finding on issue No. 1
above, the application is allowed on the
ground of non-payment of arrears of rent and
the petition fails on other grounds. However,
the respondent shall not be evicted from the
premises in question if he pays to the
petitioner or deposits in this court a sum of
Rs 6,600, being arrears of rent from March 1,
1980 to February 28, 1983 @ Rs 2,200 p.a. plus
interest thereon @ 6 per cent p.a. amounting
to Rs 609.39, up to February 2, 1983 and
further interest on Rs 6,600 @ 6 per cent p.a.
from March 1, 1983 till August 28, 1986 plus
costs assessed at Rs 100 within a period of 30
days from today."
4. On August 13, 1986 the respondent deposited a sum of Rs
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 9
8,500 in the court of the Rent Controller, Shimla.
According to the appellants, decree holders, the amount due
inclusive of interest and costs up to March 29, 1986 was Rs
8,661.29 and till the date of deposit it worked out to Rs
8,677.79 if the interest was to be calculated at the ordered
rate till August 13, 1986.
5. According to the appellants the amount deposited was
not in accordance with the order of the ejectment dated July
29, 1986 and was short, and they filed the execution
petition before the Rent Controller seeking possession of
the suit premises.
6. On the execution petition being opposed, the Rent
Controller framed the following two issues:
"(a) Whether the tender made by the respondent of the rent
amount is short as alleged?
(b) Relief."
7. By an order dated May 18, 1990 the Rent Controller
while deciding issue No. 1 held that the tender made by the
respondent was short to the tune of Rs 161.29. However,
while deciding issue No. 2, the Rent Controller allowed 15
days’ time from the date of the order for deposit of the
said amount.
8. The appellants being aggrieved by the order of the Rent
Controller dated May 18, 1990 filed revision petition in the
High Court. It was submitted on behalf of the appellants
that the executing court had no jurisdiction to extend the
time for making good the deficiency of Rs 161.29 inasmuch as
since period of 30 days has been fixed by the Himachal
Pradesh Urban Rent Control Act, 1987 (hereinafter referred
to as ’the Act’) itself, the court could not either enlarge
or abridge this period.
9. By the impugned judgment dated December 17, 1991, the
High Court dismissed the revision petition. The High Court
while interpreting the words "amount due" occurring in the
third proviso to Section 14(2)(i) of the Act held that these
words referred to arrears of rent only and do not include
interest and costs.
10. It will be noticed that neither of the parties had
challenged the order July 29, 1986 by which the order of
eviction was passed on the ground of nonpayment of rent
against the respondent but the respondent had been given the
liberty of avoiding eviction provided he deposited the
amounts as stated in the
442
order within the period of 30 days from the date of the said
order. Before the High Court it was submitted on behalf of
the appellants that the executing court had no jurisdiction
to extend the time to make good the deficiency in the amount
as directed by the order dated July 29, 1986. It was
submitted on behalf of the appellants that since the period
of 30 days had been fixed in the Act itself the court could
not enlarge or abridge this period. The High Court agreed
with this submission but posed a question for itself,
whether shortfall of Rs 161.29 which had been ordered to be
deposited constitutes arrears of rent or interest and costs.
While following an earlier decision of the same High Court
reported as Om Parkash v. Sarla Kumari1 the Himachal Pradesh
High Court interpreted the word "amount due" occurring in
the third proviso to Section 14(2)(i) of the Act wherein it
had been held that in order to save eviction the tenant is
required to deposit only arrears of rent due at the time of
filing application for eviction and not arrears of rent
together with interest and costs within the statutory period
of 30 days from the date of eviction order. After answering
the question the High Court took the view that the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 9
deficiency of Rs 161.29 pertains to interest and costs. So
far as the arrears of rent which amounted to Rs 6,600 for
the period in question i.e. from March 1, 1980 to March 28,
1983 at the rate of Rs 2,200 p.a. is concerned, it had been
deposited within 30 days. In view of this finding the High
Court was of the view that the respondent was not liable to
be evicted. High Court also held that the order of the
executing court extending time to deposit Rs 161.29 in
pursuance of its order dated July 29, 1986 is of no
consequence.
11. The relevant part of Section 14 of the
Act may be noticed:
"14. Eviction of tenant.- (1) A tenant in
possession of a building or rented land shall
not be evicted therefrom in execution of a
decree passed before or after the commencement
of this Act or otherwise, whether before or
after the termination of the tenancy, except
in accordance with the provisions of this Act.
(2) A landlord who seeks to evict his tenant
shall apply to the Controller for a direction
in that behalf. If the Controller, after
giving the tenant a reasonable opportunity of
showing cause against the applicant, is
satisfied -
(i) that the tenant has not paid or tendered
the rent due from him in respect of the
building or rented land within fifteen days
after the expiry of the time fixed in the
agreement of tenancy with his landlord or in
the absence of any such agreement by the last
day of the month next following that for which
the rent is payable:
Provided that if the tenant on the first
hearing of the application for ejectment after
due service pays or tenders the arrears of
rent and interest at the rate of 9 per cent
per annum on such arrears together with the
cost of application assessed by the
Controller, the tenant shall be deemed to have
duly paid or tendered the rent within time
aforesaid:
1 (1991) 1 Sim LC 45
443
Provided further that if the arrears pertain
to the period prior to the appointed day, the
rate of interest shall be calculated at the
rate of 6 per cent per annum:
Provided further that the tenant against whom
the Controller has made an order for eviction
on the ground of non-payment of rent due from
him, shall not be evicted as a result of his
order, if the tenant pays the amount due
within a period of 30 days from the date of
order; or
(ii) to(iv) *;or
or (v)
*;
the Controller may make an order directing the
tenant to put the landlord in possession of
the building or rented land and if the
Controller is not so satisfied he shall make
an order rejecting the application:"
12. A reading of the aforesaid relevant part of the section
shows that sub-section (1) of Section 14 creates a ban
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 9
against the eviction of a tenant except in accordance with
the provisions of the Act. The ban is liable to be lifted.
Subsection (2) of Section 14 provides the circumstances in
which the ban is partially lifted. It contemplates that
where an eviction petition is filed, inter alia, on the
ground of non-payment of rent by the landlord, the
Controller has to be satisfied that the tenant has neither
paid nor tendered the rent in the circumstances mentioned in
clause (i) of sub-section (2) of Section 14. He has to
arrive at this satisfaction after giving a reasonable
opportunity of showing cause against it to the tenant. But
there may be cases where the tenant, on being given notice
of such an application for eviction, may like to contest or
not to contest the application. The tenant is given the
first chance to save himself from eviction as provided in
the first proviso to clause (i) of sub-section (2) of
Section 14. This first proviso contemplates that the tenant
may on the first hearing of the application for ejectment
pay or tender in court the rent and interest at the rate
mentioned in the proviso on such arrears together with the
cost of application assessed by the Controller and in that
case the tenant is deemed to have duly paid or tendered the
rent within the time as contemplated by clause (i) of sub-
section (2) of Section 14. Where the tenant does not avail
of this opportunity of depositing as contemplated by the
first proviso and waits for an ultimate decision of the
application for eviction on the ground of nonpayment of
rent, the Controller has to decide it and while deciding,
the Controller has to find whether the ground contained in
clause (i) of sub-section (2) of Section 14 has been made
out or not. If the Controller finds that the ground as
contemplated by clause (i) of sub-section (2) of Section 14
is made out, he is required to pass an order of eviction on
the ground of non-payment of rent due from him. A second
opportunity to avoid eviction is provided by the third
proviso to clause (i) of sub-section (2) of Section 14. But
the second opportunity is provided after the order of
eviction. The benefit of avoiding eviction arises if the
tenant pays the "amount due" within the period of 30 days of
the date of order.
13. The question is what is the meaning of the words
"amount due" occuring in the third proviso to clause (i) of
sub-section (2) of Section 14 of the Act.
444
14. It will be noticed that there is no provision in the
Act for giving powers to the Controller to direct payment or
deposit of ’pendente lite’ rent for each month during the
pendency of the petition for eviction of the tenant. First
proviso to sub-section (2) of Section 14 shows that in order
to show payment or valid tender as contemplated by clause
(i) of sub-section (2) of Section 14 by a tenant in default,
he has to pay on the first date of hearing the arrears of
rent along with interest and costs of the application which
are to be assessed by the Controller. Surely where a tenant
does not avail of the first opportunity and contests the
eviction petition on the ground of non-payment of arrears of
rent and fails to show that he was not in default and court
finds that the ground has been made out, an order of
eviction has to follow. Therefore, it does not stand to
reason that such a tenant who contests a claim and fails to
avoid order of eviction can still avoid it by merely paying
the rent due till the date of the filing of the application
for ejectment. The third proviso to clause (i) of sub-
section (2) of Section 14 should also receive an
interpretation which will safeguard the rights of both the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 9
landlord and tenant. The "amount due" occurring in the
third proviso in the context will mean the amount due on and
up to the date of the order of eviction. It will take into
account not merely the arrears of rent which gave cause of
action to file a petition for eviction but also include the
rent which accumulated during the pendency of eviction
petition as well. If the tenant has been paying the rent
during the pendency of the eviction petition to the
landlord, the "amount due" will be only arrears which have
not been paid. The landlord, as per the scheme of the
section, cannot be worse off vis-a-vis a tenant who was good
enough to deposit in court the arrears of rent together with
interest and costs on the first date of hearing. If the
interpretation given by the High Court is accepted the
result would be that the tenant will be better off by
avoiding to pay the arrears of rent with interest and costs
on the first date of hearing and prefer suffering order of
ejectment after contest and then merely offer the amount due
as mentioned in the application for ejectment to avoid
eviction. This could not be the intention of the
legislature.
15. In such cases it will be advisable if the Controller
while passing the order of eviction on the ground specified
in clause (i) of sub-section (2) of Section 14 of the Act
specifies the "amount due" till the date of the order and
not merely leave it to the parties to contest it after
passing of the order of eviction as to what was the amount
due.
16. Surely the Rent Control Acts, no doubt, are measures to
protect tenants from eviction except on certain specified
grounds if found established. Once the grounds are made out
and subject to any further condition which may be provided
in the Act, the tenants would suffer ejectment. Again the
protection given in the Acts is not to give licence for
continuous litigation and bad blood.
17. Surely the legislature which made the Act could not
have envisaged that after the parties finish off one round
of litigation, the party should be relegated to another
round of litigation for recovery of rent which accrued
pendente lite. Whatever protection Rent Acts give they do
not give blanket protection for "non-payment of rent". This
basic minimum has to be complied with by the tenants. Rent
Acts do not contemplate that if one takes a house on rent,
he can continue to enjoy the same without payment of rent.
445
18. The order which the Controller passed was a composite
order of eviction in the sense that if the tenant wanted to
save himself from eviction, he had to comply with the order.
The order which was passed by the Controller cannot be said
to be an order without jurisdiction. It may be a right
order; it may have been a wrong order. It was not a nullity
that the executing court will ignore it. But at the stage
when the execution application was filed, the Rent
Controller could not go behind its own order dated July 29,
1986. If the Controller could not go behind its own order
in execution proceedings, surely the High Court could not
also go behind the order in revision against the order of
Controller refusing execution. It was not the appropriate
stage for the High Court to examine what order ought to have
been passed or to limit the efficacy of the order to its
interpretation of the words "amount due" as mentioned in the
third proviso to clause (i) of sub-section (2) of Section
14. The question which the High Court posed never arose.
19. Mr Thakur, who appeared on behalf of the
respondent submitted:
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 9
(1) that sub-section (2) of Section 14 gives
discretion to the Controller to pass an order
of eviction or not to pass an order of
eviction even if the ground mentioned in
clauses (i) to (v) of sub-section (2) of
Section 14 are made out;
(2) that the order of eviction which was
passed is not the final order in the sense
that it is an interim order. The final order
is passed only after the expiry of 30 days if
the tenant fails to avail of the second
opportunity provided by the third proviso to
clause (i) of sub-section (2) of Section 14.
20. With due respect to learned counsel for the respondent
we are not able to persuade ourselves to agree with either
of his submissions. It is true that subsection (2) uses the
expression "the Controller may make an order directing the
tenant to put the landlord in possession of the building or
rented land and if the Controller is not so satisfied he
shall make an order rejecting the application".
21. It will be noticed that the Controller is required to
dismiss the eviction application if he is not satisfied as
to the existence of any ground mentioned in clauses (i) to
(v) of sub-section (2) of Section 14 of the Act but where
the Controller is satisfied with existence of any of the
grounds mentioned in clauses (i) to (v) of sub-section (2)
of Section 14 the Controller has no discretion to decline to
pass the order of eviction. In the context in which the
expression " may" is used it means "shall". Otherwise the
section would read that "not only the Controller can reject
an application when he is not satisfied with the ground but
is also entitled to dismiss the application when he is so
satisfied". Such an intention cannot be attributed to the
legislature particularly when the consequences of non-
satisfaction is expressly mentioned. Even if the
consequences of non-satisfaction was not mentioned, we are
of the view that the expression "may" occuring would still
mean "shall" and all that would mean is that if the grounds
are not made out, he will be bound to dismiss the
application and if the grounds are made out, he is bound to
pass the order of eviction. If any other interpretation is
given to the word "may" the section may itself become
subject-matter of challenge under Article 14 of the
Constitution of India. The Court shall avoid an
interpretation which make the provisions violative of the
Constitution, if possible.
446
22. Coming to the second submission, as we have noticed
earlier, clause (i) of sub-section (2) of Section 14 gives
two opportunities to the tenant to avoid eviction. The
first opportunity to avoid eviction is if the tenant avails
of the benefit of first proviso. This opportunity is before
the passing of the order of eviction. The second
opportunity is after the order of eviction. The order,
which is passed for eviction, is final in the sense it is
not an interim order. If the tenant avails of the second
opportunity as provided in the third proviso then the order
of eviction becomes inexecutable and he saves himself from
eviction.
23. Having found that the question posed and answered by
the High Court was not relevant at the stage it was posed,
namely during the execution proceedings and, therefore, the
order is bad.
24. The validity of the order of the executing court dated
May 18, 1990 now needs to be considered. The executing
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 9
court, on consideration of the evidence recorded during the
execution proceedings held that the judgment-debtor,
respondent, himself calculated the interest for the period
March 1, 1983 to February 28, 1986 with the result that Rs
161.29 p. was deposited less by the judgment-debtor and
thought that it had power to extend the time for making up
the deficiency and accordingly extended the time.
25. So far as the Himachal Pradesh High Court is concerned
it has consistently taken the view that the executing court
has no such power since the time is fixed by the statute.
R.S. Pathak, C.J. (as His Lordship then was) in Krishan
Kumar v. Gurbux Singh2 while interpreting the third proviso
to Section 14(2)(i) of the Act took the view thus:
"It is apparent that the statute itself
provides a period of 30 days from the date of
the order for payment of rental arrears by the
tenant. On such payment, the statute
declares, effect will not be given to the
order of eviction. The statute does not leave
the determination of the period to the Rent
Controller. It is not open to the Rent
Controller, when disposing of the petition for
eviction, to make an order either abridging or
enlarging the period of 30 days. Indeed, the
period having been determined by the statute
itself, no order was necessary by the Rent
Controller. There being no power in the Rent
Controller to vary the period mentioned in the
statute, it is apparent that the order made by
him in the execution proceedings is a nullity.
The Appellate Authority is right in the view
taken by it."
26. Mr Thakur, learned counsel for the respondent, referred
us to Shyamcharan Sharma v. Dharamdas3; (2) Santosh Mehta
(Miss) v. Om Prakash4; (3) Ram Murti v. Bhola Nath5 and (4)
Ganesh Prasad Sah Kesari v. Lakshmi Narayan Gupta6 and
submitted that this Court had, in spite of there being no
express provisions to extend time, taken the view that the
court has inherent powers to extend time for deposit of
rent. We are of the view that the reliance placed on these
cases is wholly misplaced.
2 (1977) 2 RCR 62 (HP)
3 (1980) 2 SCC 151
4 (1980) 3 SCC 610
5 (1984) 3 SCC 111
6 (1985) 3 SCC 53
447
27. It may be noticed that the case of Shyamcharan Sharma3
related to the powers of the Court under Section 13(6) of
the Madhya Pradesh Accommodation Control Act, 1961. This
Act contemplated an eviction petition being filed under
Section 12 and one of the grounds for eviction was for
failure of the tenant to pay or tender within two months
from the date of service of notice of demand of rent and
Section 12(3) thereof provided that the order of eviction
will not be passed on this ground if the tenant makes the
payment of deposit as required by Section 13. Section 13(1)
contemplated that when a suit has been instituted on any of
the grounds against the tenant for his eviction, the tenant
shall, within one month of the service of summons on him or
within such further time as the court may, allow in this
behalf, deposit in the court or pay to the landlord the
arrears of rent and shall also continue to pay, month by
month, the future rent as well. Sub-section (5) of Section
13 contemplated that if the deposit was made as contemplated
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 9
by sub-section (1) of Section 13 no order for recovery of
possession should be made on the ground of default in the
payment of rent. Sub-section (6) of Section 13 provided
that if the tenant fails to pay any amount as required by
Section 13 the court had the power to strike out the defence
and proceed with the hearing of the suit. While dealing
with the powers under Section 13(6) of the said Act this
Court took the view that the court had discretion to strike
off the defence or not even if there is delay in depositing
rent falling due after institution of suit for eviction.
The Court held: (SCC p. 154, para 4)
" In case of non-deposit or non-payment of
rent by the tenant, Section 13(6) vests a
discretion in the Court to order striking off
the tenant’s defence against eviction; it
neither clothes the landlord with an automatic
right to an eviction decree nor visits the
tenant with the penalty of such a decree being
automatically passed. If the court has the
discretion to strike off or not to strike off
the defence, it has further discretion to
condone the default and extend the time for
making the payment or deposit. Such a
discretion is a necessary implication of the
discretion not to strike off the defence. A
different construction might lead to
perversion of an object of the Act, namely
’adequate protection of the tenant’."
28. An express provision for extending time for deposit or
payment was not made in Section 13(1) because the
consequences of non-payment was proposed to be dealt with
separately by Section 13(6) and the discretion to extend
time is incidental to the discretion in the said section to
strike off or not to strike off the defence.
29. This view in Shyamcharan Sharma case’ was followed by
this Court in Santosh Mehta case4 and Ram Murti case5 which
were the cases under the Delhi Rent Control Act, 1958, which
also had the provisions similar to the Madhya Pradesh
Accommodation Control Act, 1961 contemplating direction by
the court to direct the tenant to pay the pendente lite
rents which have become due and consequences for not
complying with such directions.
30. Again the case of Ganesh Prasad Sah Kesari6 related to
the provisions for striking out the defence for failure of
the tenant to deposit arrears of rent within 15 days of date
of the court’s order and this Court again followed the
decision in the case of Shyamcharan Sharma3.
448
31. These cases have no application where the final orders
were passed after satisfaction of the Controller for
entitling the landlord to seek eviction on the grounds
specified in the Act.
32. Mr Thakur then submitted that this Court should not
exercise its powers under Section 136 of the Constitution of
India as the rent laws are meant for protection of the
tenants. Rent Control Acts are necessary social measures
for protection of tenants. The Rent Control Laws have tried
to balance the equity. Landlord is duty bound to satisfy
the ground of eviction mentioned in various Rent Acts and if
he does not satisfy, he cannot get the order of eviction
merely because the Act restricts his rights. There are
certain Rent Acts which, even when a ground of eviction is
satisfied, still confer powers on the Rent Controllers to
consider the question of comparative hardship and it is only
in those types of cases, if the Controller is satisfied, he
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 9
can decline passing orders of eviction. But if there is no
such limitations, the Rent Controllers, after the ground of
eviction specified in the Act is made out, have no
discretion to reject the application. Once the order of
eviction is passed, in the circumstances like the present,
the executing court is duty bound to execute its orders. No
question of equity or hardship arises at that stage.
33. We are in complete agreement with the view expressed by
R.S. Pathak, C.J. (as His Lordship then was) in the
aforesaid case of Krishan Kumar2.
34. In the present case the tenant spared no efforts to
harass the landlords. After the order of eviction dated
July 29, 1986 the matter did not rest there. The tenant
again failed to pay the rent and the landlord was forced to
file another eviction petition on the ground of non-payment
of rent for the period from March 1, 1983 to November 30,
1986 and it was only after the filing of the said eviction
petition and in order to avoid eviction he deposited the
rent. The matter did not rest there even and it was only
after the notice of the special leave petition was issued in
the present case that the tenant chose to pay the rent from
December 1, 1986 after keeping it in arrears for practically
six years.
35. In view of the aforesaid facts and circumstances of the
case we set aside the impugned order of the High Court dated
May 17, 1991 and the order of the Rent Controller dated May
18, 1990 and direct the Rent Controller, Shimla, to issue
the warrants of possession for ejectment of the respondent
from the premises in dispute and place the
landlords/appellants in possession.
449