Full Judgment Text
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CASE NO.:
Appeal (civil) 4705 of 1999
PETITIONER:
Thirunavukarasu Mudaliar (Dead) by Lrs.
RESPONDENT:
Gopal Naidu (Dead) by Lrs.
DATE OF JUDGMENT: 19/10/2006
BENCH:
B.P. SINGH & ALTAMAS KABIR
JUDGMENT:
JUDGMENT
B.P. SINGH, J.
The appellants herein are the legal representatives of the original
plaintiff while the respondents are the legal representatives of the
original tenant. In this appeal the appellants have impugned the judgment
and order of the High Court of Judicature at Madras dated 26th February,
1998 in Civil Revision Petition No. 729 of 1992. By its impugned judgment
and order the High Court allowed the civil revision petition preferred by
the respondents and set aside the order passed by the Principal District
Munsif, Vellore in I.A. No. 656 of 1986 in O.S. No. 947 of 1975 dated
February 4, 1992 which had the effect of dismissing the application filed
by the respondents-tenant under Section 9 of the Chennai City Tenants’
Protection Act, 1921 (hereinafter referred to as ‘the Act’). The High Court
found that the respondents had complied with their obligations under
Section 9(1)(b) of the Act having deposited the amount within time and,
therefore, the application under Section 9 of the Act ought to be allowed
and the appellants be directed to sell the land in question to the
respondents.
The factual background in which the dispute arises is as follows :-
The plaintiff-landlord filed OS No. 947 of 1975 claiming eviction of the
tenant from the vacant site on which the tenant claimed to have raised a
super-structure. In the said suit for eviction, the tenant filed his
written statement and claimed benefit of the provisions of Section 9 of the
Act. He also filed I.A. No. 180 of 1976 under Section 9 of the Act for an
order of the Court directing the landlord to sell the site to him for such
price as may be fixed by the Court. The trial court by its order of March
31.1978 held the tenant entitled to purchase the suit site excluding 992
sq. ft. 3 sq. inches surrendered to the plaintiff, under Section 9 of the
Act and fixed the price for 3801 sq. ft. 9 sq. inches at Rs. 26,187.25 ps.
at the rate of Rs. 7- per sq. feet. Application under Section 9 of the Act
as well as the suit was disposed of by the said order, the relevant part
whereof reads as under :-
"For the foregoing reasons, I hold that the defendant shall pay into Court
a sum of Rs.26,187.25 within a period of 6 months in 3 instalments of 2
months interval from the date of this Judgment with interest and in default
of payment by the defendant of anyone of the instalments, the application
in I.A. 180 of 1976 shall stand dismissed and the suit will stand decreed
with costs."
Aggrieved by the judgment and order of the trial court, the landlord as
well as the tenant preferred separate appeals. The tenant preferred C.M.A.
No. 31 of 1979 while the landlord preferred C.M.A. No. 32 of 1979. It
appears that the District Court had passed an order of stay whereby the
tenant was obliged to deposit only an amount calculated at the rate of
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Rs.3.70 per sq. feet. Ultimately the appeals came up for disposal before
the Sub Court, Vellore. By its judgment and order of November 2, 1981 the
appellate court dismissed C.M.A, No. 31 of 1979 preferred by the tenant and
partly allowed the appeal preferred by the landlord and enhanced the price
of the site by determining its price @ Rs. 10/- per sq. feet. The operative
part of the order, so far as it is relevant, reads as follows:-
"In the result, the appeal is allowed with costs, modifying the
judgment and decree of the Trial Court to the effect that the
petitioner-defendant in I.A. No. 180/76 in O.S. No. 947/75 is
liable to deposit a sum of Rs. 40,020/- into Court below within a
period of six months, in two instalments of three months’ interval
from this date with interest thereon at 6% per annum and in default
to payment by the petitioner-defendant of any of the instalments,
the application in I.A. No. 180 of 1976 shall stand dismissed and
the suit will stand decreed with costs."
It appears from the record that the tenant deposited a sum of Rs.4,968/ on
18.1.1982 by way of costs and made no deposit of the price determined in
accordance with the direction of the appellate court which had granted him
6 months time to pay the amount in two instalments.
The landlord in the mean time preferred a civil revision petition being
C.R.P. No. 34 of 1982. By its order of July 21, 1983 the High Court further
enhanced the price of the site by determining the price at the enhanced
rate of Rs.12/- per sq. feet.The civil revision petition was allowed in the
following terms :-
"In the result, therefore, the civil revision petition is allowed in part
and the order of the lower appellate court will stand modified by
increasing the value of the site from Rs. 10/- to Rs. 12/- per sq. ft. The
parties are directed to bear their respective costs. Consequently the trial
court will give sufficient opportunity to the tenant for depositing the
balance amount now fixed for the value of the suit site and pass suitable
orders on the above lines".
After the order of the High Court in the civil revision petition, the
tenant never approached the trial court praying for time to deposit the
balance amount payable in terms of the order passed by the High Court.
However, on April 11, 1986 the tenant deposited in court a sum of Rs.
27,463.95 ps. It is the case of the tenant that since the entire amount
stood deposited by deposit of the aforesaid amount on April 11, 1986 i.e.
within 3 years from the date of the judgment and order of the High Court in
the civil revision petition, Section 9 of the Act stood complied with and
consequently further steps had to be taken in accordance with the
provisions of Section 9 of the Act for execution of the sale deed in his
favour etc. On the other hand the landlord contends that neither the orders
of the trial court nor that of the appellate court nor that of the High
Court was complied with by the tenant and, therefore, the tenant defaulted
in complying with the terms of the orders passed by the courts under
Section 9 of the Act. His application, therefore, deserves to be rejected.
The landlord preferred an application before the Principal District Munsif,
Vellore for an order that the application under Section 9 of the Act be
dismissed for default of the tenant in making the deposit within the
prescribed period. The tenant contested the application but the same was
allowed by order of February 4, 1992. The said order of the District Munsif
has been reversed by the High Court in revision by its impugned judgment
and order, the correctness whereof is challenged before us.
Before considering the merit of the rival contentions, it is useful to
notice the relevant provisions of Section 9 of the Act. The Act makes a
special provision in favour of a tenant within the contemplation of Section
9 whereby the tenant is entitled to apply to the court for an order that
the landlord be directed to sell to him the land under his tenancy for a
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price to be fixed by the court either in whole or in part, or to the extent
of land specified in the application. It is not disputed before us that the
tenant in the instant case is entitled to maintain an application under
Section 9 of the Act. Section 9(1 )(b) and sub-sections (2) and (3) of
Section 9 provide as follows:-
"[(b) On such application, the Court shall first decide the minimum extent
of the land which may be necessary for the convenient enjoyment by the
tenant. The Court shall, then, fix the price of the minimum extent of the
land decided as aforesaid, or of the extent of the land specified in the
application under clause (a), whichever is less. The price aforesaid shall
be the average market value of the three years immediately preceding the
date of the order. The Court shall order that within a period to be
determined by the Court, not being less than three months and not more than
three years from the date of the order, the tenant shall pay into Court or
otherwise as directed the price so fixed in one or more instalments with or
without interest.]
(2) In default of payment by the tenant of any one instalment, the
application [under clause (a) of sub-section (1)] shall stand dismissed,
provided that on sufficient cause being shown, the Court may excuse the
delay and pass such orders as it may think fit, but not so as to extend the
time for payment beyond the three years above-mentioned. On the application
being dismissed, the Court shall order the amount of the instalment or
instalments, if any, paid by the tenant to be repaid to him without any
interest.
[(3) (a) On payment of the price fixed under clause (b) of sub-section (1),
the Court shall pass an order directing the conveyance by the landlord to
the tenant of the extent of land for which the said price was fixed. The
Court shall by the same order direct the tenant to put the landlord into
possession of the remaining extent of the land, if any. The stamp duty and
registration fee in respect of such conveyance shall be borne by the
tenant.
(b) On the order referred to in clause (a) being made, the suit or
proceeding shall stand dismissed, and any decree or order in ejectment that
may have been passed therein but which has not been executed shall be
vacated."
On a plain reading of the aforesaid provisions it is clear that on an
application being made to the court by a tenant entitled to the benefit of
the said provision, the court shall first decide the minimum extent of the
land which may be necessary for convenient enjoyment by the tenant. Having
done so, the court is then required to fix the price of the minimum extent
of the land decided as aforesaid, or of the extent of the land specified in
the application under clause (a), whichever is less. The manner in which
the price shall be determined is also indicated in the said provision.
Thereafter the court is required to make a direction that the price so
fixed by the court shall be paid by the tenant to the landlord within the
period determined by the court. Such period shall not be less than 3 months
and not more than 3 years from the date of the order. The court may direct
the tenant to pay the amount in one or more instalments. In case the tenant
defaults in payment of any one of the instalments, application under clause
(a) of sub-section (1) shall stand dismissed though the court has been
empowered to excuse the delay for sufficient cause, but not so as to extend
the time for payment beyond 3 years. In case the application under Section
9 of the Act filed by the tenant is ultimately dismissed, for any reason,
the amount of instalment/ instalments, if any, paid by the tenant shall be
repaid to him without any interest. If the tenant pays the price fixed by
the court under clause (b) of sub-section (1), the court is required to
pass an order directing the conveyance by the landlord to the tenant of the
extent of land of which the price was fixed. If there is any excess land,
the tenant shall be directed to put the landlord in possession of the
remaining extent of land. On such an order being made, the suit or
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proceeding shall stand dismissed, and any decree or order of ejectment that
may have been passed therein, but which had not been executed, shall be
vacated.
The section confers a special right on the tenant but the same is subject
to certain conditions. If a tenant seeks to derive any benefit under
Section 9 of the Act, he must strictly comply with the conditions laid down
therein. So far as the period for the payment of the price is concerned,
the section places a limitation on the powers of the court, namely that the
time granted to a tenant for the payment of the price, whether in one or
more instalments, shall not exceed 3 years. Even in a case where the court
is empowered to condone the delay in making the deposit and extend time for
deposit, it cannot extend the time so as to exceed the limit of 3 years
stipulated by sub-clause (b) of Section 9(1) of the Act. Default in payment
of any one of the instalments shall result in the dismissal of the
application, subject to the powers of the court to condone the default for
sufficient cause, but not so as to exceed the period of 3 years prescribed
for making the deposit.
It is not in dispute that after the order of the trial court was passed
directing the tenant to deposit the price in 3 instalments within a period
of 6 months, only a sum of Rs. 15,191.49 ps. was deposited by the tenant on
three dates i.e. on 26.6.1978 ; 27.9.1978 and 4.1.1979. The justification
for deposit of a lesser amount was that the appellate court had granted
stay in favour of the tenant and in terms of the order passed by the
District Court he was required to deposit the price of the site calculated
at the rate of Rs.3.70 per sq. feet only.
The appeal of the landlord was allowed by order dated November 2, 1981 and
in terms the appellate court directed the tenant to deposit a sum of
Rs.40,020/- in court within a period of 6 months in two instalments at
three months interval from the date of the judgment with interest thereon.
It further directed that in case of default in payment of any of the
instalments, the application of the tenant shall stand dismissed and the
suit of the landlord shall stand decreed with costs. It is not disputed
that within 3 years of the date of the order of the appellate court i.e.
November 2, 1981, the tenant did not deposit any further amount as directed
by the appellate court except that he deposited a sum of Rs. 4,968/- on
January, 18, 1982 which represented the amount decreed by way of costs. The
tenant made certain deposits later in the years 1985 and 1986 and it is the
case of the respondents-tenant that by deposit of Rs.27,463.95 ps. on
11.4.1986 i.e. within 3 years of the revisional order of the High Court,
the entire amount payable to the landlord under the orders of the court
stood deposited, and there was no default on the part of the tenant. This
is contested by the appellants-landlord.
The reasoning adopted by the High Court in reaching its conclusion that the
tenant had deposited the amount he was required to deposit in accordance
with Section 9 of the Act and, therefore there was no default on his part
is as follows:-
The High Court proceeded on the premise that the trial court is required to
pass an order fixing the amount to be paid by the ‘ tenant by way of sale
price for purchase of the land belonging to the landlord The maximum period
within which the full price as determined by the court should be deposited
is 3 years unless the court prescribes a shorter period in accordance with
the statutory provision. The price fixed by the trial court may be varied
by the appellate court or the revisional court. Thus there is a merger of
the decree passed by the trial court with the decree passed by the final
court. Applying the principle of merger of decrees, the effective decree,
according to the High Court, is the decree passed by the final court. If
the final decree fixes no time for payment of the amount, having regard to
the provisions of the Section, the maximum period of 3 years must be
allowed to the tenant to deposit the price of the land determined by the
final court, and the period of 3 years must run from the date of the order
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passed by the final court. In the instant case, therefore, even if the
tenant did not deposit the sale price in accordance with the orders of the
trial court and the appellate court, that made no difference since he
deposited the amount within 3 years from the date of the order passed by
the High Court in revision which attained finality. The "date of the order"
mentioned in Section 9(1)(b) of the Act should be construed as the date of
order in revision. The High Court was of the view that if a different
meaning is given and the period of 3 years mentioned under Section 9(1)(b)
of the Act is to be extended to the date of the order passed by the
respective courts, namely the court of first instance, the appellate court
and the High Court, there will be different periods in view of different
orders for discharging the obligation cast upon the tenant to deposit the
price. The statute has provided 3 years period as the outer limit for
payment of the amount from the date of the order. Thus in the absence of
any time limit fixed by the High Court in revision, the tenant shall be
held to have complied with his statutory obligation if he deposits the
price within 3 years from the date of the order of the High Court. Since
the orders of the courts below merged with the order in revision passed by
the High Court, the order in appeal or revision could not be enforced to
oblige the tenant to deposit the increased amount in accordance with those
orders over and above the amount fixed by the court of first instance. For
coming to this conclusion the High Court relied on a Division Bench
judgment of the High Court of Madras reported in 1980 (2) Madras Law
Journal 303 : M. Arasan Chettiar v. Sri S.P, Narasimhalu Naidu’s Estate
Trust. According to the High Court the ratio laid down in the aforesaid
judgment was applicable to this case and, therefore, the revision deserved
to be allowed.
We have very carefully examined the aforesaid decision of the Madras High
Court. In our view the question that arose for consideration in that
decision was entirely different and the ratio laid down therein has no
application to the facts and circumstances of this case. The question as
formulated by the learned Chief Justice, who delivered the judgment, itself
clarifies that the question that arose for consideration in that case was
as to the meaning to be attributed to the expression "the date of the
order" occurring in the third sentence in Section 9(1)(b) of the Act. The
third sentence which is reproduced in the judgment is as follows :-
"The price aforesaid shall be the average market value of the three years
immediately preceding the date of the order".
The learned Chief Justice very carefully examined the provisions of Section
9 of the Act and noticed that in Section 9(1)(b) the words "the date of the
order" occur twice. What has been referred to in the third sentence in
Section 9(1)(b) of the Act relates to the manner in which the market value
of the land has to be determined by the court and the provision mandates
that the price aforesaid shall be the average market value of the three
years immediately preceding "the date of the order".
The next sentence which has been described as the fourth sentence in the
aforesaid provision reads as follows:-
"The court shall order that within a period to be determined by the Court,
not being less than three months and not more than three years from the
date of the order, the tenant shall pay into Court or otherwise as directed
the price so fixed in one or more instalments with or without interest".
It will thus appear that in the fourth sentence of the aforesaid provision
the Court is required to fix the time within which the sale price has to be
paid, and fix the instalments for payment, if any.
We may observe at this stage that the core issue which arose for their
Lordships’ consideration in that case was as to which is the order
contemplated in the third sentence in Section 9(1)(b) of the Act, whether
it is the order determining the eligibility of the tenant to apply under
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Section 9, or whether it is the order determining the extent of land to be
sold to the tenant; or whether it is the order fixing the price for the
land .to be sold to the tenant.
A question may well arise whether the tenant is at all entitled to the
benefit of Section 9 of the Act. Till the date such issue is decided, it is
not possible to give effect to the remaining provisions of the Section
because an affirmative decision in favour of tenant alone would enable the
Court to proceed further with the application made under Section 9(1)(a) of
the Act, and a negative decision against the tenant will render any
application filed by the tenant under Section 9(1)(a) as not maintainable.
Such an order is not an order, under Section 9, and the date of that order
has no relevancy to the fixation of the price of the land to be sold by the
landlord to the tenant. The High Court observed in sub-paragraph 3 of
paragraph 12 of the judgment as follows :-
12.3. For the purpose of disposing of this application, the Court, must
first decide upon the minimum extent of the land which may be necessary for
the convenient enjoyment by the tenant. Any such decision of the Court,
from the very nature of the cage, can only be by means of an order and the
date of that order will be the relevant date for the purpose of fixing the
price mentioned in the third sentence in Section 9(1)(b). If the decision
of the Court on the minimum extent is, taken up further by way of appeal or
revision and that decision is either affirmed or modified and if there has
been a stay of further proceedings during the pendency of such appeal or
revision, naturally, the date of the order contemplated in the third
sentence in Section 9(1)(b) will be the date of the order of the appellate
or revisional Court;
The Division Bench of the Madras High Court did not at all deal with the
question which arises for consideration in this appeal. The question in
this appeal is whether the order passed by the trial court determining the
price payable for the land in question or by the appellate court enhancing
the amount, must be complied with and the amount deposited within the
period allowed by the original or the appellate order, or whether a tenant
can wait for the disposal of the revision preferred by the landlord before
the High Court for enhancing the price, even-without obtaining an order of
stay or any other interim direction from the appellate court absolving him
of the obligation to make the deposit as directed. We may also observe that
the Madras High Court in the judgment aforesaid held that "the date of the
order" referred to in the third sentence and the fourth sentence in Section
9(1)(b) cannot mean the same date. It must mean two different dates. If the
expression "the date of the order" occurring in the third and fourth
sentences mean the same date, namely, the date when the Court fixes the
price to be paid by the tenant to the landlord, the third sentence will not
be workable for the reason that at the time when the parties are called
upon to adduce evidence regarding the average market value of the land for
a period of three years, the parties would not know, and from the nature of
the case nobody can know, with reference to what date the three year period
should be calculated because the passing of the order will be in future.
Their Lordships thereafter observed :-
"Therefore, we have to give a meaning to the expression "the date of the
order" occurring in the third sentence in Section 9(1)(b) different from
the meaning which we have given to the expression "date of the order"
occurring in the fourth sentence in Section 9(1)(b). Having given our
careful consideration, we are of the opinion that the expression "date of
the order" occurring in the third sentence in Section 9(1)(b) must mean the
date on which the Court decided the minimum extent of the land which may be
necessary for the convenient enjoyment by the tenant. Once that decision
has been arrived at, whatever might have been the interval between the date
and the date on which the price was ultimately fixed, the period of three
years backwards from that date is definitely known and there will be no
difficulty for any particular party adducing evidence in that behalf."
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In sum and substance the High Court held that the period of three years by
reference to which the price of the land has to be determined is the three
years immediately preceding the date on which the court decides the minimum
extent of the land which may be necessary for the convenient enjoyment by
the tenant. It was in this context that it held that that date must
necessarily be the date of the order of the appellate or Revisional Court,
if the dispute was not set at rest by the trial court and the matter was
taken in appeal and thereafter in revision to the High Court.
The view of the Division Bench of the High Court is unexceptional. In that
case the High Court was considering the question as to which are the
relevant three years which have to be reckoned for determining the price of
the land to be sold to the tenant. As found by the High Court the relevant
period was the period of three years preceding the date of the order of the
Court determining the extent of land to be sold to the tenant.
Having regard to the scheme of the provisions only after the relevant
period of three years is determined, the Court can proceed to determine the
price to be paid by the tenant. Thereafter, the court is required to pass
an order directing the tenant to deposit the amount within the period fixed
by it. Thus, the order which determines which three years are relevant for
fixing the price of the land, is an order passed at an intermediate stage
of the proceeding, and upon that depends the determination of the price of
the land to be paid by the tenant. Only thereafter the court can pass an
effective final order in the proceeding directing the tenant to deposit the
amount so determined within the period prescribed by the order. Obviously,
therefore, unless the relevant period of three years is determined no final
order can be passed in the proceeding under Section 9 of the Act. If the
order passed by the trial court was challenged in appeal or revision, and
the order in appeal or revision modified the order passed by the Court
below, it was the modified order passed in appeal or revision which had to
be given effect, meaning thereby that the cost of the land had to be
determined by reference to the relevant period determined by the appellate
or revisional authority. Since no final order had been passed determining
the price and calling upon the tenant to deposit the amount, there was no
question of default being committed by the tenant in making the deposit.
Section 9(2) of the Act therefore, did not fall for consideration.
On the other hand, in the instant case the application under Section 9 was
finally disposed of by an order of the Court determining the price to be
paid and the period within which it was to be paid by the tenant. There
was, therefore, an effective order passed by the Court casting an
obligation on the tenant to make the payment. If the tenant failed to make
the payment Section 9(2) came into operation which mandates as a
consequence of such default the rejection of the application under Section
9. A final order having been passed in the proceeding the tenant was bound
to obey that order. If that order was modified in appeal or revision, the
tenant could seek adjustment by restitution.
Having carefully examined the Division Bench judgment of the High Court of
Madras aforesaid, we have no doubt that the principles laid down therein
are not at all applicable to the facts of the instant case.
The question which arises in the instant case is whether pursuant to the
order of the trial court or the appellate court the tenant is obliged, in
view of the express language of the provisions, to deposit the price of the
land fixed by the courts within the period granted. If he fails to do so,
will it amount to default on his part which may entail dismissal of his
application in view of the express provisions of Section 9(2) of the Act?
Such a question did not arise for consideration in the aforesaid decision.
The High Court has emphasized the principle of merger of decrees in coming
to the conclusion that since the decree of the trial court merged with the
decree of the superior court which attained finality, the decree to be
executed is the one finally passed and, therefore, the tenant can wait till
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such time as the final decree is passed, meaning thereby till such time any
final order is passed by the superior court on appeal or revision. We
cannot approve the reasoning of the High Court. It cannot be disputed that
the decree which is finally to be executed is the decree of the final
court, and that is the effect of merger of decrees. On principle, however,
we are of the view that a decree passed by a court of competent
jurisdiction is binding upon the parties, and even if the said decree is
challenged in appeal or revision it does not cease to operate to bind the
parties unless it is stayed by the superior court or any interim direction
is made by the superior court rendering the decree ineffective or
inoperative for the time being, subject to the final decision. A judgment
debtor under ordinary civil law is not permitted to ignore the decree
passed by the court. He must obtain an interim direction from the superior
court absolving him of his obligations under the decree, or otherwise
suffer the consequences which follow the decree. He cannot be heard to say
that merely because an appeal or revision is pending, the decree is
rendered ineffective. The parties are bound by the decree, and in case the
appellate court modifies or sets aside the decree the judgment debtor may
claim restitution.
In the instant case though the tenant had obtained an interim order after
the passing of the order under Section 9 of the Act by the trial court and
he was required to pay only a lesser amount, he did not obtain any interim
order after the price was enhanced by the appellate court. This is despite
the fact that the amount to be deposited was quantified by the court and
the period during which the same had to be paid was also fixed as also the
instalments. In fact the tenant had not even preferred a revision against
the appellate order and it was only the landlord who claimed a higher price
in the revision filed by him before the High Court. So far as the tenant is
concerned, he had not even challenged the order passed by the appellate
court. Without challenging that order and without obtaining any interim
order from the superior court, the tenant could not be permitted to ignore
the decree passed by the appellate court.
After the revision was partly allowed by the High Court and a higher price
was fixed, the High Court directed the trial court to give to the tenant
reasonable time to deposit the sale price in court. No doubt the High Court
was in error in doing so because the statute casts an obligation on the
court deciding the matter to pass such an order. However, since a litigant
cannot be made to suffer for the mistake of the court, we do not hold this
against the tenant. But for his failure to move the trial court for fixing
the period within which the deposit had to be made, the tenant has
furnished no explanation whatsoever. In fact the tenant never moved the
trial court for such direction and on his own chose to deposit the amount
within a period of three years from the date of the order of the High
Court. In a sense the tenant himself decided within what period the balance
of the sale price should be deposited, which jurisdiction the law vested
only in the court. It may be that the Court may have granted a lesser
period for deposit of the balance amount. We also notice that the High
Court in the operative part of its order had directed the trial court to
give sufficient opportunity to the tenant for depositing the "balance
amount now fixed" for the value of the suit site. The High Court therefore,
also proceeded on the basis that only the amount as enhanced by it was
required to be deposited.
Under the Act once an order is passed by the court determining the amount
to be paid by way of sale price, and the period within which the payment is
to be made is also determined, the law takes over and provides that if the
tenant defaults in making the payment as directed, the application filed by
him under Section 9(1)(a) of the Act shall stands dismissed under Section
9(2) of the Act. The tenant having not complied with the order of the
appellate court inasmuch as he did not make any deposit pursuant to the
express direction of the court, and of the order of the High Court inasmuch
as he never moved the trial court for granting him time to make the
deposit, it must be held that the tenant was in default and his application
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under Section 9(1)(a) ought to be dismissed. We say so because the statute
itself attaches some importance to the prompt payment of the sale price to
the landlord. The statute fixes the maximum period of three years, but the
period may be shorter depending on the order the court may pass which in no
case shall be less than three months and more than three years. Though the
section empowers the court to condone delay in making the deposit, it
imposes a restriction on the power of the court inasmuch as no extension
can be granted which exceeds the period of three years from the date of the
order fixing the sale price. The legislative scheme has a purpose. The
tenant is in occupation of the land in question and, therefore, is not in
any manner affected by the proceedings. On the other hand the title of the
landlord is extinguished if the application under Section 9 made by the
tenant is allowed. Section 9 also fixes the period which is relevant for
the purpose of determining the sale price of the land in question. The
three years which are relevant are the three years immediately preceding
the date of the order whereby the court determines the minimum extent of
the land which may be necessary for convenient enjoyment by the tenant. If
the price determined by the court is promptly paid, the landlord may
acquire any other property of that value. However, if the amount determined
at the initial stage of the proceeding is to be paid to the landlord after
the appeal and revision have been decided, obviously it will cause great
hardship and injustice to the landlord who shall be paid the price of the
land many years later, when the price paid may not truly represent the
value of the land transferred to the tenant. The interest awarded by the
court hardly compensates the increase in the value of the land. Therefore,
a tenant cannot ignore the obligation cast upon him to deposit the sale
price in accordance with the order of the court, even if an appeal or
revision is preferred. He can be absolved of such liability only if the
superior court passes an interim order absolving him of his obligation to
make the deposit in accordance with the order of the Court. If he fails to
make the deposit, that should be considered to be a default and the
consequences under Section 9(2) must follow.
We must, therefore, hold that the High Court was in error in holding that
if the sale price is deposited within three years of the date of the final
order passed by the High Court, which order attained finality, the tenant
should be held to have discharged the obligation cast upon him by Section
9(1)(b) of the Act. We hold that unless the order is stayed or the tenant
absolved of his obligation to make the deposit by an order passed by the
appellate or revisional court, the order determining the price remains
operative and all necessary consequences contemplated by Section 9(2) of
the Act must follow. If the tenant fails to make the deposit within the
time fixed by the court, his application under Section 9 of the Act for
sale of the land to him must stand rejected and the amount paid by him, if
any, shall be refunded to him in accordance with the provisions of the Act.
We, therefore, allow this appeal, set aside the order of the High Court
dated 26th February, 1998 passed in Civil Revision Petition No. 729 of 1992
and restore that of the Principal District Munsif, Vellore dated February
4, 1992 in I.A. No. 656 of 1986 in O.S. No. 947 of 1975. The trial court
shall now pass necessary orders for refund of the sale price to the tenant
in accordance with the provisions of the Act. Parties are, however,
directed to bear their own costs.