Full Judgment Text
$~13
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 04.03.2021
+ CM(M) 15/2021 & CMs 584/2021, 586/2021
PERMANAND VIJAY KUMAR ..... Petitioner
Through Mr.Harish Malhotra, Sr. Adv.
with Mr.Sandeep Vishnu, Adv.
versus
SMT. SAVITRI DEVI & ORS. ..... Respondents
Through Mr.Sudhir Nandrajog, Sr. Adv.
with Mr.P.K.Rawal, Adv.
CORAM:
HON'BLE MR. JUSTICE NAVIN CHAWLA
NAVIN CHAWLA, J. (Oral)
1. This hearing has been held by video conferencing.
2. This petition has been filed by the petitioner being aggrieved of
the order dated 21.09.2020 passed by the learned Rent Control
Tribunal (Central) in Appeal, being RCT No.85/2019, dismissing the
appeal of the petitioner herein in challenge to the order dated
04.05.2019 of the learned Rent Controller and affirming the order
passed by the learned Rent Controller under Order XII Rule 6 of the
Code of Civil Procedure, 1908 (CPC), allowing the eviction petition of
the respondent, being E-No.80318/2016 titled Kunj Bihari Lal
Kapoor vs. M/s Permanand Vijay Kumar , under Section 14(1)(a) of
the Delhi Rent Control Act, 1958 (hereinafter referred to as the „Act‟).
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 1
3. To appreciate the dispute between the parties, it would be
necessary to take note of certain facts.
4. The petitioner is a tenant of the respondent with respect to two
shops and one godown on the backside of the ground floor of the
property bearing No.488, Bartan Market, Sadar Bazar, Delhi-110006
(hereinafter referred to as „subject premises‟).
5. The respondents, alleging that the rate of rent with respect to the
subject premises was Rs.1,020/- per month which had neither been
paid nor tendered by the petitioner herein with effect from 01.08.2005,
issued a legal notice dated 19.11.2005 demanding the said rent from
the petitioner.
6. It is not disputed by the respondents that the petitioner sent a
reply dated 26.11.2005 to the above legal notice inter alia claiming
that the rent of the property, in fact, had been increased to Rs.2,040/-
per month with effect from 01.01.2005. The petitioner further stated
in the reply that the rent is being paid quarterly and the receipts have
also been issued on a quarterly basis. It was stated in the reply that the
rent up to 31.08.2005 already stands paid and the rent for the months
of September, October and November, 2005 was liable to be paid on
30.11.2005.
7. The petitioner claims to have enclosed with the reply to the
legal notice, a cheque for three month‟s rent amounting to Rs.6,120/-
and another cheque for Rs.2,040/- being rent for December, 2005. I
may note herein itself that the respondent denies receipt of these
cheques.
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 2
8. The petitioner obtained the permission under the Slum Areas
(Improvement and Clearance) Act, 1956 to file the eviction petition
and thereafter filed the eviction petition in question sometime in
November, 2009. Inter-alia following averments were made by the
respondent in its eviction petition:
| “11. | Monthly rent together with details<br>of house-tax, electricity, water<br>and other charges paid by the<br>tenant. | Rs.2040/- exclusive of<br>electricity charges. |
|---|---|---|
| xxx xxx | ||
| 19. | (b) Whether notice required has<br>been given and if so, particulars<br>thereof (copies of such notice and<br>tenant’s reply if any, should be<br>furnished). | Notice dated 19.11.2005<br>was sent to the<br>respondent, which was<br>duly served upon the<br>respondent. |
“2…..The tenancy is according to English Calendar month
st
commencing from 1 day of each English Calendar month,
st
commencing from 1 day of each English Month and ending on
the last day of the same English Calendar month. The
tenant/respondent has neither paid nor tendered the entire
arrears of rent w.e.f. 1.8.2005 inspite of repeated requests and
demands and also inspite of service of the legal notice of
demand dt. 19.11.2005 which notice was duly served upon the
respondent and after the receipt of the said legal demand
notice, a false and frivolous reply was sent by the respondent.
Even after the receipt of the demand notice dt 19.1 2005 or
otherwise, the respondent neither paid nor tendered the entire
arrears of rent w.e.f. 1.8.2005 at the rate of Rs.2040/- per
month. Hence, the petition is on ground of non-payment of rent.
xxxxxx
“5. That it is worth-while to mention here that the respondent
is not paying the rent month by month, which is mandatory on
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 3
the part of the respondent that the respondent should pay the
th
rent month by month on or before 15 day of each English
Calendar month; failing which they are liable to pay the
interest at the rate of 15% per annum. The respondent failed to
pay or tender the entire arrears of rent due inspite of the
repeated requests and demands of the petitioner w.e.f. 1.8.2005
and also inspite of the service of the legal demand notice dated
19.11.2005, which notice was duly served upon the respondent.
The respondent was also called upon to pay the entire arrears
of rent at the rate of Rs.2040/- per month alongwith interest at
the rate of l8% per-annum;
6. That the Petitioner has already terminated/determined
the tenancy of the respondent and the contractual tenancy
of the respondent has been terminated/determined by virtue of a
legal notice dated 19.11.2005 in this regard and the said notice
was duly served upon the respondent but inspite of the receipt
of the said legal notice, the respondent has failed to comply
with it. Rather, the respondent has chosen to send a false and
frivolous reply to the said legal notice vide reply notice dated
26.11.2005.”
(Emphasis supplied)
9. A reading of the above averments in the Eviction Petition would
show that though the respondent had made an oblique reference to the
reply to the legal notice received from the petitioner, there was no
submission made with respect to the receipt or non-receipt of the
cheques that were clearly stated to have been enclosed with the reply.
10. The petitioner herein, by its reply to the petition, alleged as
under:
“6. That the petitioner is guilty of making false statement in
as much as it has been falsely alleged by the petitioner that the
respondent has failed to pay the rent inspite of service of legal
notice dated 19.11.2005, whereas, the fact remains that
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 4
immediately upon receiving the said notice, the respondent
through its advocate sent two cheques and that too for more
than the amount demanded qua arrears of rent along with its
reply dated 26.11.2005 and clarified the true position. It is
submitted that when no ground of eviction was available to the
petitioner, the petitioner sent a false and frivolous notice dated
19.11.2005 alleging nonpayment of rent and subletting,
assigning or otherwise parting with possession of the tenanted
premises to alleged sub tenants. It is submitted that the
respondent has always been paying rent regularly and no
subletting ever created by it and as such both the grounds
raised/taken by the petitioner were false and did not have any
th
iota of truth, therefore the respondent sent a reply dated 26
November, 2005 inter alia stating the true facts. As stated
hereinabove, the respondent dealt with each and every
allegation whereby it was in respect of the payment of rent or
the creation of alleged sub tenancy. In its reply the respondent
duly clarified that the respondent is in exclusive possession of
the premises and has been carrying on its business from the
said premises right from the inception of the tenancy, hence the
present petition is liable to be dismissed.”
11. In the written statement filed by the petitioner, it was further
stated that the rent has always been collected by the respondents
quarterly and receipts were issued by the respondents for the same.
12. In the replication filed by the respondents, the respondents gave
the following reply to the contents of paragraph 6 of the written
statement which has been reproduced hereinabove:-
“6. That the contents of para 6 of the preliminary objections of
the written statement are wrong and denied as stated. It is
denied that the petitioner is guilty of making false statement or
that it has been falsely alleged by the petitioner that the
respondent has failed to pay the rent inspite service of legal
notice dt. l9.11.2005 or that the facts remain that immediately
upon receiving the said notice, the respondent through its
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 5
Advocate sent two cheques or that too for more than the amount
demanded qua arrears of rent alongwith its reply dt. 26.11.2005
or clarified the true position as alleged. It is denied that the
petitioner sent a false or frivolous notice dt. 19.11.2005
alleging non-payment of rent or sub-letting, assigning or
otherwise parting with possession of the tenanted premises to
sub-tenants as alleged. It is denied that the respondent has
always been paying rent regularly or no sub-letting ever
created by it or that both the grounds raised/taken by the
petitioner were false or did not have any iota of truth as
alleged. It is denied that the respondent dealt with each and
every allegation whereby it was in respect of the payment of
rent or the creation of alleged sub-tenancy as alleged. It is
denied that in its reply, the respondent duly clarified that the
respondent is in exclusive possession of the premises or has
been carrying on its business from the said premises right from
the inception of the tenancy or that the present petition is liable
to be dismissed.”
13. Therefore, there was only a vague denial on part of the
respondents to the assertion of the petitioner that two cheques for rent
had been enclosed alongwith the reply to the legal notice. The
assertion of the petitioner herein that the rent was paid on quarterly
basis also remained not denied by the respondents.
14. During the pendency of the above petition, the respondents then
filed an application under Order XII Rule 6 of the CPC, which was
allowed by the learned Rent Controller by his order dated 04.05.2019,
inter alia observing as under:
“After hearing the arguments and going through the record, I
find that as such relationship of landlord and tenant between
the parties is not disputed. Further, non-encashment of cheque
pertaining to arrears of rent by petitioner, as claimed by
respondent, at best amounted to refusal of acceptance of rent,
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 6
allegedly tendered by respondent. Once, respondent found that
petitioner had not encashed the cheque pertaining to arrears of
rent, then, it should have put him on guard. In such situation,
respondent should have moved the Court by depositing rent
U/Sec. 27 DRC Act. Respondent did not do so. The net result is
that, as per record, respondent despite receiving legal notice
dated 19.11.2005, failed to tender or deposit the rent as per
law. In addition to aforesaid reasoning, I find that copies of
cheques as referred in the reply of respondent dated
26.11.2005, are not enclosed by respondent with Written
Statement. So, except the claims of respondent regarding
issuance of cheques in reply dated 26.11.2005, there is no
documentary proof regarding those claims, in support thereof.
In such circumstances, I find that there remained bald claim of
respondent regarding issuance of cheque for clearance of
arrears of rent which as such, does not solve the purpose in
hand. As such, in the wake of aforesaid appreciation,
ingredients of Section 14(1)(a) of DRC Act, are met with.
Therefore, eviction petition U/Sec. 14(1)(a) DRC Act, stands
allowed.”
15. A reading of the above observations would clearly show that the
learned Rent Controller has been pleased to disbelieve the stand of the
petitioner herein that the rent for the months demanded by the
respondents was tendered by the petitioner by cheques alongwith its
reply dated 26.11.2005 to the legal notice dated 19.11.2005.
16. In my opinion, the fact whether the cheques were duly enclosed
alongwith the reply dated 26.11.2005 of the petitioner was a disputed
question of fact which can be adjudicated only upon the parties
leading their evidence on that issue. There was no admission on
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 7
behalf of the petitioner on the basis of which an order under Order XII
Rule 6 of the Code could have been passed by the learned Rent
Controller disbelieving the case of the petitioner of having enclosed
the two cheques along with the reply to the legal notice.
17. The learned Rent Controller has further held that the petitioner,
once it found the respondents to have not encashed the cheques,
having not moved the Court for depositing the rent under Section 27
of the Delhi Rent Control Act, 1958, failed to tender or deposit the
rent as per law, making it liable for eviction under Section 14(1)(a) of
the Act. It is this finding which came to be accepted even by the
learned Rent Control Tribunal in its Impugned Order dated
21.09.2020, with the following observations:
“19. Falling back to the present case, what is to be seen is as to
whether taking the rival pleadings in entirety, any issue arises
which must be taken through full dress trial. The admitted
position in the present case is that the rent demand notice dated
19.11.2005 was duly served on the appellant; that according to
the appellant, alongwith reply dated 26.11.2005 he also sent
two cheques towards arrears of rent, which were not encashed
by the predecessor of the present respondents; that according to
the predecessor of the present respondents, no rent cheques or
reply was received by him; and that within two months of
receipt of rent demand notice the appellant did not deposit rent
before the Rent Controller under Section 27 of the Delhi Rent
Control Act or even thereafter, within two months of reply dated
26.11.2005.
20. In that regard, the legal position, as described above, is
well settled that where the landlord refuses to accept rent, it is
the bounden duty of the tenant to deposit the rent under Section
27 of the Delhi Rent Control Act within two months of such
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 8
refusal, as stipulated by Section 14(1)(a) of the Act. In the
present case, even if the stand of the appellant is believed that
along with reply dated 26.11.2005 he had also sent two rent
cheques, it cannot be denied that at most, by 30.11.2005
appellant would have come to know from his bank statement
that the alleged rent cheques had not been got encashed. That
being so, the appellant ought to have deposited rent under
Section 27 of the Delhi Rent Control Act within two months
thereafter. But admittedly, the rent was deposited by the
appellant under section 27 of the Act much later on 13.09.2006.
21. Going a step deeper, for the sake of arguments even it is
accepted that the predecessor of the present respondents had six
months validity period of the rent cheques and could have got
the same encashed till the month of May 2006, the deposit of
rent under Section 27 of the Act ought to have been prior to
01.08.2006, but the rent deposit was done under Section 27 of
the Act on 13.09.2006. Then also, having not been within two
months, it was not a valid deposit of rent as stipulated by
Section 14(1)(a) of the Delhi Rent Control Act.
20. Going by the above factual and legal matrix, there is no
issue on which evidence is required to be led through full dress
trial. That being so, in my considered view it was certainly a fit
case to write judgment in favour of landlord/predecessor of the
present respondents on admissions.”
18. The question, therefore, that arises for consideration in the
present petition is as to whether, on the tenant failing to deposit the
rent under Section 27 of the Act on deemed refusal of the landlord to
accept the tendered rent, the tenant becomes liable for eviction under
Section 14 (1)(a) of the Act.
19. The learned senior counsel appearing for the petitioner submits
that where, in response to the legal notice sent by the landlord, the
tenant “tendered the whole of the arrears of the rent legally
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 9
recoverable from him within two months”, the eviction petition under
Section 14(1)(a) of the Act is liable to be dismissed. For the purposes
of Section 14(1)(a) of the Act, in case of any deemed refusal of the
landlord to accept arrears of rent, the tenant is under no further
obligation to make such deposit under Section 27 of the Act.
20. He further submits that even otherwise, in the facts of the
present case, eviction under Order XII Rule 6 of the Code could not
have been passed as there were various disputed questions of fact,
including whether the rent was payable quarterly or on a monthly
basis, to be adjudicated by the learned Tribunal. He submits that if the
plea of the petitioner herein is to be accepted that the rent was payable
on a quarterly basis, in fact and as a consequence thereof, on the date
of the legal notice, there was no rent due or payable by the petitioner
and the petition under Section 14(1)(a) of the Act itself was not
maintainable.
21. On the other hand, the learned senior counsel appearing for the
respondents, placing reliance on the judgment of the Supreme Court in
Sarla Goel & Ors. vs. Kishan Chand , (2009) 7 SCC 658 and of this
Court in Abid vs. Kausar Parveen , 2015 (1) RCR (Rent) 522, submits
that it is no longer res integra that incase the landlord refuses to accept
the rent tendered by the tenant, the tenant must take recourse to
Section 27 of the Act and deposit the rent before the learned
Controller. The provisions of Section 27 of the Act are mandatory in
nature and on the failure of the tenant to take recourse to the same, the
tenant would not be entitled to any protection, and decree under
Section 14(1)(a) of the Act is liable to be passed against him. He
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 10
submits that in the present case, as admitted, the petitioner had not
deposited the rent with the learned Rent Controller under Section 27
of the Act. The eviction petition was, therefore, entitled to be decreed
and has been rightly decreed under Order XII Rule 6 of the Code.
22. Before considering the above submissions of the learned senior
counsels for the parties, I may herein note that the learned Rent
Control Tribunal in its Impugned Order has also observed that there
was a delay in making deposit of the rent under Section 27 of the Act
by the petitioner. In fact, it is now admitted that the rent for the
months in dispute had not been deposited by the petitioner under
Section 27 of the Act at all. Therefore, this Court has to determine as
to whether, inspite of the tender of the rent by the petitioner (which is
disputed by the respondents), the petitioner was under an obligation to
deposit the rent under Section 27 of the Act, and having failed to do
so, the eviction petition under Section 14(1)(a) of the Act filed by the
respondents is liable to be decreed on the basis of purported admission
and under Order XII Rule 6 of the Code.
23. To answer the above, reference may first be had to the
provisions of the Act.
24. Section 14(1)(a) of the Act is reproduced hereinbelow:
“ 14. Protection of tenant against eviction. (1)
Notwithstanding anything to the contrary contained in any
other law or contract, no order or decree for the recovery of
possession of any premises shall be made by any court or
Controller in favour of the landlord against a tenant:
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 11
Provided that the Controller may, on an application made to
him in the prescribed manner, make an order for the recovery
of possession of the premises on one or more of the
following grounds only, namely:-
(a) that the tenant has neither paid nor tendered the whole of
the arrears of the rent legally recoverable from him within two
months of the date on which a notice of demand for the arrears
of rent has been served on him by the landlord in the manner
provided in section 106 of the Transfer of Property Act,
1882.”
(Emphasis supplied)
25. A reading of the above provision would show that the learned
Controller, may, on an application made to him by the landlord, make
an order for recovery of possession of the tenanted premises where the
tenant has „neither paid nor tendered‟ the whole of the arrears of the
rent legally recoverable from him within two months of the date on
which a notice of demand for arrears of rent has been served on him
by the landlord in the manner provided under Section 106 of the
Transfer of Property Act, 1882. Therefore, an order of eviction
cannot be passed against a tenant where the tenant pays or tenders the
whole of the arrears of rent legally recoverable from him to the
landlord within two months of the receipt of the notice of demand
from the landlord. The operative words being „paid nor tendered‟.
26. Section 14(2) of the Act provides a protection to the tenant
against eviction under Section 14(1)(a) and reads as under:
“(2) No order for the recovery of possession of any premises
shall be made on the ground specified in clause (a) of the
proviso to sub-section (1) if the tenant makes payment or
deposit as required by section 15.
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 12
Provided that no tenant shall be entitled to the benefit under
this sub-section, if, having obtained such benefit once in respect
of any premises, he again makes a default in the payment of rent
of those premises for three consecutive months.”
(Emphasis supplied)
27. A reading of the above provision would show that even where
the tenant has failed to pay or tender the legally recoverable rent to the
landlord within two months of the receipt of the notice, an order of
eviction will not be passed against the tenant in case the tenant „makes
payment or deposit‟ as required by Section 15 of the Act. The
operative words herein are „payment or deposit‟.
28. Proviso to Section 14(2) of the Act denies protection to the
tenant who, having availed of protection under Section 14(2) of the
Act once, makes a default again „in the payment of rent‟ of the subject
premises for three consecutive months. The operative words in the
proviso are „payment of rent‟.
29. Section 15(1) of the Act reads as under:
“15. When a tenant can get the benefit of protection against
eviction.- (1) In every proceeding of the recovery of possession
of any premises on the ground specified in clause (a) of the
proviso to sub-section (1) of section 14, the Controller shall,
after giving the parties an opportunity of being heard, make an
order directing the tenant to pay to the landlord or deposit with
the Controller within one month of the date of the order, an
amount calculated at the rate of rent at which it was last paid
for the period for which the arrears of the rent were legally
recoverable from the tenant including the period subsequent
thereto up to the end of the month previous to that in which
payment or deposit is made and to continue to pay or deposit,
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 13
month by month, by the fifteen of each succeeding month, a sum
equivalent to the rent at that rate.”
(Emphasis supplied)
30. Section 15(1) of the Act empowers the Controller to make an
order directing the tenant to pay to the landlord or deposit with the
Controller, the rent legally recoverable from the tenant and to continue
to pay or deposit, month by month, such rent by the fifteenth day of
each succeeding month. The operative words again being „pay or
deposit‟.
31. Clearly, therefore, the legislature has drawn a distinction
between the main provision that is Section 14(1)(a) and the provisions
in relation to such eviction proceedings as contained in Sections 14(2)
and 15(1) of the Act. As a ground for eviction, the tenant can be
evicted only where the tenant has neither „paid nor tendered‟ the
whole of the arrears of rent legally recoverable from him within two
months of the date on which a notice of demand for arrears is served
on him. Once the tenant has so defaulted, in case he makes the
payment or deposit of the rent as required of him under Section 15 of
the Act, the tenant, in terms of Section 14(2) of the Act, will be
entitled to the protection against eviction, but only once. In case the
tenant having availed of such protection once, again defaults in
making payment of the rent for the subject premises for three
consecutive months thereafter, the tenant is no longer entitled to any
protection under the Act and will be liable to be evicted under Section
14(1)(a) of the Act. For purposes of Section 14(2), unlike Section
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 14
14(1)(a), mere tender of rent by the tenant would not suffice; there has
to be actual payment or deposit of rent.
32. As far back as in Damadilal & Ors. v. Parashram & Ors.
(1976) 4 SCC 855, the Supreme Court has held that tender of rent by
cheque amounts to a valid discharge of the obligation to pay rent. It
has held as under:
“13. On the ground of default, it is not disputed that the
defendants tendered the amount in arrears by cheque within the
prescribed time. The question is whether this was a lawful
tender. It is well-established that a cheque sent in payment of a
debt on the request of the creditor, unless dishonoured, operates
as valid discharge of the debt and, if the cheque was sent by
post and was met on presentation, the date of payment is the
date when the cheque was posted. The question however still
remains whether in the absence of an agreement between the
parties, the tender of rent by cheque amounts to a valid
discharge of the obligation. Earlier, we have extracted a
passage from the High Court's Judgment on this aspect of the
case. We agree with the view taken by the High Court on the
point. Rent is payable in the same manner as any other debt and
the debtor has to pay his creditor in cash or other legal tender,
but there can be no dispute that the mode of payment can be
altered by agreement. In the contemporary society it "is
reasonable to suppose such agreement as implied unless the
circumstances of a case indicate otherwise. In the circumstance
of this case, the High Court, in our opinion, rightly held that the
cheque sent to the plaintiffs amounted to valid tender of rent.
The second contention urged on behalf of the appellants must
also be rejected.”
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 15
33. Reference in this regard may also be had to the judgment of the
Supreme Court in Mahendra Raghunathdas Gupta v. Vishwanath
Bhikaji Mogul & Ors. , (1997) 5 SCC 329.
34. I may also, however, refer to the judgment of the Supreme
Court in Gopi Chand Gupta (Dead) by LRs v. Jain Plastic Industry,
(2002) 5 SCC 274, wherein, on the facts of that case, the Supreme
Court held that sending of a cheque by the tenant was not a valid
tender. In the said case, the Supreme Court found that there was no
agreement between the parties nor was there any practice to tender the
rent by way of cheque nor at any time earlier the rent was sent by post.
The said judgment is therefore, clearly distinguishable as in the
present case, the tenant/petitioner has been tendering rent by way of
cheque even in the past. In any case, the fact of such practice can be
determined only after evidence is taken; a judgment under Order XII
Rule 6 of the CPC could not have been passed on the basis of any
purported admission in this regard.
35. It is true that on the refusal of the landlord to accept the rent
tendered, the tenant is under an obligation to deposit the same under
Section 27 of the Act and having failed to do so would be treated as
being in default of payment of rent, however, such default has to be
considered as on the date of giving of notice by the landlord. On such
default, the tenant will have a period of two months within which he
can rectify such default by paying or tendering the whole of the
amount of rent. The landlord cannot issue a notice of demand for rent
which is otherwise not recoverable by him; refuse to accept the rent
thereafter tendered by the tenant; and then proceed to file a petition
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 16
under Section 14(1)(a) of the Act claiming default of the tenant in
paying or tendering such rent. The cause of action for filing of the
petition under section 14(1)(a) of the Act arises only where the tenant
fails to pay or tender the legally recoverable rent to the landlord within
two months of the receipt of the notice of demand. In case such tender
is made, the cause of action no longer survives and the petition under
Section 14(1)(a) of the Act itself would not be maintainable.
Therefore, the question before the learned Trial Court would be as to
whether the conditions of Section 14(1)(a) of the Act were at all made
out by the landlord/respondents herein on the facts of the present case.
In case it is found that on the date of the notice, there was, in fact, no
default on part of the petitioner in payment of the rent as no rent
legally recoverable from him was due or that the rent was duly
tendered to the landlord, the question of moving to the stage of
Section 14(2) of the Act would not at all arise and the eviction petition
would be liable to be dismissed as being without any valid cause of
action.
36. In Prakash Mehra v. K.L. Malhotra , (1989) 3 SCC 74, the
Supreme Court held that the arrears of rent envisaged by Section
14(1)(a) of the Act are the arrears demanded by the notice for payment
as arrears of rent. The arrears due cannot be extended to rent which
has fallen due after service of the notice of demand.
37. This clearly shows that the cause of action for filing of the
petition has to be considered in relation to the notice of demand. Once
the rent has been tendered, the notice demanding arrears will stand
satisfied and the eviction petition cannot be based on the allegation
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 17
that on a deemed refusal of the landlord to accept such tender of rent,
the tenant has not deposited the same under Section 27 of the Act. For
this purpose, the landlord must serve another demand notice to the
tenant.
38. In Krishan Lal v. K.M. Sharma, 62(1996) DLT 411, this Court
has held that the tenant must be allowed to prove that the arrears of
rent were duly sent to the landlord but was not accepted by the
landlord as otherwise it will be very easy for the landlord to find an
excuse to refuse the tender and wait for the requisite period to pass
and then claim eviction on the basis of non-tender of arrears of rent.
This is what seems to have happened in the present case; at least this is
what is alleged by the petitioner and needs to be determined on trial.
39. In Sarla Goel (supra), the Supreme Court was considering the
case of the second default by the tenant therein which clearly puts the
onus on the tenant not only to tender but to actually pay or deposit the
arrears of rent. Considering the scheme of the Act and the requirement
of Section 14(2) of the Act requiring the payment of rent, the Supreme
Court held as under:
" 10. Mr.Gandhi, learned Counsel appearing on behalf of
the respondent, however, refuted the submission made by
the learned Counsel for the appellants. He has drawn our
attention to Section 27 of the Act and submits that Section
27 cannot be said to be mandatory in nature and only an
obligation has been created on the tenant either to pay the
rent or tender or to deposit the same with the Rent
Controller. In the present case, admittedly, tenant had
tendered the rent to the landlord but he had refused to
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 18
accept the same. After such refusal, it would be open to the
tenant to deposit the same in the office of the Rent
Controller but even if he does not do so, non deposit of the
rent after such refusal cannot be said to be mandatory in
nature which entails eviction of the tenant on the ground
that he has committed second default and, therefore, he is
liable to be evicted. It was further argued by the learned
Counsel for the respondent/tenant that in view of the word
"may" used in Section 27 of the Act and the Act being a
beneficial legislation for the tenant, it can never be said that
the intention of the Legislature to use the word "may" was
to mean that "may" must be construed as "shall".
11. We are unable to accept this submission of the
learned Counsel for the tenant/respondent for the following
reasons:
It is true that in Section 27 of the Act, it has been provided
that the tenant may deposit rent when such rent was not
accepted or refused or no receipt was granted by the
landlord or there was bonafide doubt as to the person or the
persons to whom the rent was payable, the tenant may
deposit such rent with the Rent Controller in the prescribed
manner.
12. Chapter III deals with Control of Eviction of
Tenants. Section 14 gives a specific right to the tenants to
resist evictions. Sub-section (2) of Section 14 of the Act
provides that no order for recovery of possession of any
premises shall be made on the grounds specified in Class A
of the proviso to Sub-section (1) if the tenant makes payment
or deposit the rent as required by Section.
13. An overall reading of Chapter III of the Act would
clearly show that an additional protection has been given
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 19
by the Legislature to the tenant who has committed
default in payment of rent for which he is liable to be
evicted under Section 14(1)(a) of the Act. Section 14(1)(a)
of the Act clearly provides that when the tenant has neither
paid nor tendered whole of the arrears of the rent legally
recoverable from him within two months from the date of
which a notice of payment of the arrears of rent has been
served on him by the landlord in the manner provided in
Section 106 of the Transfer of Property Act, 1882. A plain
reading of Sub-section (2) of Section 14 makes it clear that
a tenant is protected from eviction if he makes payment or
deposits the rent as required by Section 15. Section 15 deals
with cases when a tenant can get the benefit of protection
against eviction.
14. Accordingly, Section 14(1)(a) is a ground for
eviction of a tenant for default in payment of rent. In spite of
that, protection has been given under Section 15 of the Act
to the tenant to avail of the protection given by the
Legislature by depositing rent in the manner indicated in
Section 15 of the Act. However, proviso to Section 14(2) of
the Act takes away the right of a tenant of the benefit of Sub-
section (2) of Section 14 if the tenant having obtained such
benefit once in respect of any premises and makes a further
default in payment of rent of those premises for three
consecutive months. Therefore, it has been made clear that
when the tenant makes a second default, no protection can
be given to the tenant from eviction.
15. Chapter IV, however, deals with Deposit of Rent.
Section 26 of the Act provides that if the rent is paid it is the
obligation of the landlord to grant receipt for the rent paid
to him. In default of payment of rent within the time
specified therein, the tenant is also liable to pay simple
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 20
interest at the rate of 15% per annum from the date on
which such payment of rent is due to the date on which it is
paid. The proviso to Section 26(2) of the Act makes it clear
that it shall be open to the tenant to remit the rent to his
landlord by postal money order. Sub-section (3) of Section
26 also makes the provision that if the landlord or his
authorized agent refuses or neglects to deliver to the tenant
a receipt referred to in Sub-section (2), the Controller may,
on an application made to him in this behalf by the tenant
within two months from the date of payment and after
hearing the landlord or his authorized agent, by order
direct the landlord or his authorized agent to pay to the
tenant, by way of damages, such sum not exceeding double
the amount of rent paid by the tenant and the costs of the
application and shall also grant a certificate to the tenant in
respect of the rent paid. From a reading of Sub-section (3)
of Section 26 of the Act, it is clear that the tenant has been
given further protection to get the rent receipt from the
landlord and in the event the landlord refuses to grant such
receipt, the procedure has been clearly made by the
Legislature for the purpose of getting the receipt under the
Act and at the same time the landlord can be imposed to
pay damages not exceeding double the amount paid by the
tenant and the costs of the application and to obtain a
certificate from the landlord in respect of the rent paid.
Now we come to the most important provision regarding
the procedure under the Act to pay or deposit or tender rent
to the landlord, if he refuses to grant any receipt in respect
of the payment already made to him. As quoted herein
earlier, Section 27 deals with deposit of rent by the tenant.
It clearly says that where the landlord does not accept any
rent tendered by the tenant within the time referred to in
Section 26 or refuses or neglects to deliver a receipt
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 21
referred to therein or where there is a bona fide doubt as
the person or persons to whom the rent is payable, the
tenant may deposit such rent with the Controller in the
prescribed manner. When the words "bona fide doubt" has
been added to Section 27, the tenant may remit such rent to
the Controller by postal money order. From a conjoint
reading of this provision referred to herein above and
particularly Section 27 of the Act, in our view, it cannot be
doubted that the procedure having been made by the
Legislature how the rent can be deposited if it was refused
to have been received or to grant receipt for the same. If
that be the position, if such protection has been given to the
tenant, the said procedure has to be strictly followed in the
matter of taking steps in the event of refusal of the landlord
to receive the rent or to grant receipt to the tenant. It is well
settled that whether the word "may" shall be used as
"shall", would depend upon the intention of the Legislature.
It is not to be taken that once the word "may" is used by the
Legislature in Section 27 of the Act, would not mean that the
intention of the Legislature was only to show that the
provisions under Section 27 of the Act was directory but not
mandatory.
16. In other words, taking into consideration the object
of the Act and the intention of the Legislature and in view of
the discussions made herein earlier, we are of the view that
the word "may" occurring in Section 27 of the Act must be
construed as a mandatory provision and not a directory
provision as the word "may", in our view, was used by the
Legislature to mean that the procedure given in those
provisions must be strictly followed as the special protection
has been given to the tenant from eviction. Such a cannon of
construction is certainly warranted because otherwise
intention of the Legislature would be defeated and the class
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 22
of landlords, for whom also, the beneficial provisions have
been made for recovery of possession from the tenants on
certain grounds, will stand deprived of them."
xxxxxxxx
24. It is not in dispute that the tenant/respondent had
availed the benefit of Section 14(2) of the Act by its order
rd
dated 3 of December, 2001 passed by the Additional Rent
Controller, Delhi. Since we have already come to the
conclusion that since the tenant/respondent has failed to
deposit rent in compliance with Section 27 of the Act
because in the present case, admittedly, landlord/appellants
had not accepted any rent tendered by the tenant/respondent
within the time referred to in Section 26, it was the duty of
the tenant to deposit such rent before the Rent Controller
as prescribed in Section 27 of the Act. Admittedly, this step
was not taken by the respondent which is mandatory in
nature and, therefore, we must hold that the
tenant/respondent had committed a second default in
payment of rent and is, therefore, liable to be evicted from
the suit premises.
25. In view of our discussions made hereinabove and
considering the scope and object of the Act and the
provisions of the same, we are of the view that the word
"may" in the context of the Act, shall be construed as "shall"
and therefore, the tenant shall deposit the rent after refusal
by the landlord and, accordingly, having not done so, he is
liable to be evicted."
40. This Court in Abid (supra) was again dealing with a case of the
second default and it was reiterated that in case of a refusal by the
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 23
landlord of the tender of rent, the tenant has to comply with the
procedure specified under Section 27 of the Act. The said judgments
therefore, would have no application to the facts of the present case.
41. Coming now to Order XII Rule 6 of the CPC, the Supreme
Court recently in Satish Chander Ahuja v. Sneha Ahuja, (2021) 1
SCC 414, has reiterated that power under Order XII Rule 6 of the CPC
is discretionary and cannot be claimed as a matter of right. Where the
defendant has raised objections which go to the root of the case, it
would not be appropriate to exercise the discretion under Order XII
Rule 6 of the CPC.
42. In the present case, in case it is to be accepted that on the date
of the legal notice dated 19.11.2005 sent by the respondent, there was
no legally recoverable rent payable by the petitioner as the rent was
payable on a quarterly basis; or that the petitioner had, in fact,
tendered the rent for the months as demanded by the respondents, the
conditions of Section 14(1)(a) of the Act would not be satisfied and
the eviction petition itself would be liable to be rejected. The question
of reaching the stage of Section 14(2) of the Act would also not arise
in such circumstances.
43. This, therefore, certainly was not a case which could have been
decreed by taking recourse to Order XII Rule 6 of the Code. The
learned Rent Controller and the learned Rent Control Tribunal have
therefore, erred in exercise of their jurisdiction.
44. In view of the above, the present petition is allowed. The
Impugned Order dated 04.05.2019 of the learned Rent Controller, as
confirmed by the Impugned Order dated 21.09.2020 of the learned
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 24
Rent Control Tribunal, are set aside. There shall be no order as to
costs.
45. The application filed by the respondents under Order XII Rule 6
of the Code shall stand dismissed.
46. The learned Trial Court shall proceed to decide on the eviction
petition on merits. It is clarified that no observations made on the
merit of the factual dispute between the parties shall bind the learned
Rent Controller, who shall determine the same in accordance with law.
47. As the application of the respondents under Section 15(7) of the
Act has been dismissed as infructuous on account of the Impugned
Order having been passed under Order XII Rule 6 of the Code, with
the consent of the parties, the application shall be treated as revived
and restored back to its original number before the learned Rent
Controller, to be decided on its own merit.
48. As the eviction petition has been pending since 2009, the
learned Rent Controller shall make an endeavour to dispose of the
eviction petition expeditiously, preferably within one year from today.
NAVIN CHAWLA, J
MARCH 4, 2021
RN
Signature Not Verified
Signed By:SHALOO BATRA
Location:
Signing Date:12.03.2021
18:43
CM(M) No.15/2021 Page 25