Gujarat High Court
Property and Real Estate LawCivil Procedure and Evidence

Payment of municipal taxes over monthly rent does not shift a tenancy from Section 12(3)(a) to Section 12(3)(b).

LHS OF DECD. HARJIVANBHAI RANCHHODBHAI NIRMAL, RAJNIBHAI HARJIVANBHAI NIRMAL vs DHIRAJLAL KANTILAL MAKWANA

Gujarat High CourtJUDGMENT: October 15, 20263 MIN READSOURCE JUDGMENT
Payment of municipal taxes over monthly rent does not shift a tenancy from Section 12(3)(a) to Section 12(3)(b).. LHS OF DECD. HARJIVANBHAI RANCHHODBHAI NIRMAL, RAJNIBHAI HARJIVANBHAI NIRMAL vs DHIRAJLAL KANTILAL MAKWANA. Gujarat High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner, a legal heir of the original tenant, challenged concurrent eviction decrees for non-payment of rent.

Source reference: p.1-4

The tenant was required to pay monthly rent of Rs. 150, in addition to municipal taxes and education cess.

Source reference: p.1-4

The landlord issued a statutory demand notice for arrears; the tenant’s son, who resided at the rented premises, received it. The tenant did not pay the arrears within one month of service.

Source reference: p.1-4

The Trial Court decreed eviction, and the Appellate Court affirmed, holding that Section 12(3)(a), rather than Section 12(3)(b), of the Gujarat Rents, Hotel and Lodging House Rates Control Act, 1947 (“Rent Act”) applied. The High Court considered the tenant’s revision under Section 29(2) of the Rent Act

Source reference: p.1-4
02

Issues

1. Whether the tenant’s obligation to pay municipal taxes and education cess, in addition to monthly rent, brought the tenancy within Section 12(3)(b) rather than Section 12(3)(a) of the Rent Act

Source reference: p.4-10

2. Whether service of the statutory notice on the tenant’s son at the rented premises, and the tenant’s failure to pay within one month, supported eviction under Section 12(3)(a)

Source reference: p.11-14

3. Whether the alleged non-determination of standard rent, the tenant’s later payment of arrears, or the subsequent purchaser’s status warranted interference with the eviction decree

Source reference: p.4-5, 14-15
03

Law Applied

Section 12(3)(a) of the Rent Act requires an eviction decree where rent is payable monthly, there is no timely dispute as to standard rent or permitted increases, arrears have continued for at least six months, and the tenant fails to pay within one month after the statutory notice; later payment does not avoid the decree where that provision applies

Source reference: p.8-10

Under Hotel Kings v. Sara Farhan Lukmani, (2007) 1 SCC 202, a tenant’s separate liability for rates and taxes does not convert monthly rent into rent payable at longer intervals or make Section 12(3)(b) applicable

Source reference: p.7-10

Arjun Khiamal Makhijani v. Jamnadas C. Tuliani, (1989) 4 SCC 612, requires a dispute as to standard rent to be raised within one month of the statutory notice for purposes of Section 12

Source reference: p.12-14

Under Section 29(2), revision does not permit interference with concurrent factual findings absent perversity or gross error; the Court relied on Hindustan Petroleum Corp. Ltd. v. Dilbahar Singh, (2014) 9 SCC 78

Source reference: p.15

A registered purchaser of the premises succeeds to the predecessor landlord’s interest in the pending litigation

Source reference: p.14
04

Reasoning

The Court held that the rent was expressly payable monthly and that the additional liability for municipal taxes and education cess did not alter that arrangement; accordingly, Section 12(3)(a) governed

Source reference: p.6-10

The tenant neither paid within one month of the notice nor demonstrated that a standard-rent dispute had been raised within the prescribed period.

Source reference: p.11-14

The notice was received by the tenant’s son, who lived at the rented premises, and the concurrent finding of valid service was not perverse

Source reference: p.11-14

Because Section 12(3)(a) applied, later payment of arrears did not defeat the eviction claim. The registered subsequent purchaser was entitled to the benefit of the predecessor landlord’s litigation, and no basis for revisional interference was shown

Source reference: p.14-15
05

Holding

The High Court found no perversity or gross irregularity in the concurrent findings that the tenant was in default, had failed to comply with the statutory notice, and was governed by Section 12(3)(a) of the Rent Act.

It dismissed the revision application in limine and made no order as to costs

Source reference: p.15-16
06

Acts & Sections Cited

4 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.

Gujarat Rents, Hotel and Lodging House Rates Control Act, 19473

Transfer of Property Act, 18821

Gujarat High Court

Original Court PDF

LHS OF DECD. HARJIVANBHAI RANCHHODBHAI NIRMAL, RAJNIBHAI HARJIVANBHAI NIRMALvsDHIRAJLAL KANTILAL MAKWANA

Gujarat High Court · October 15, 2026

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