Karnataka High Court
Property and Real Estate LawCivil Procedure and Evidence

Rent deposited into the landlord’s loan account must be credited against arrears to prevent double payment.

SHRI KUMAR NATARAJ vs SRI D N NAGARAJAN

Karnataka High CourtJUDGMENT: September 28, 20262 MIN READSOURCE JUDGMENT
Rent deposited into the landlord’s loan account must be credited against arrears to prevent double payment.. SHRI KUMAR NATARAJ vs SRI D N NAGARAJAN. Karnataka High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners challenged an order made under Section 151 CPC requiring them to pay rent arrears at the admitted rate of ₹30,000 per month from September 2023 and to continue paying rent until possession was handed over.

Source reference: p.2

They contended that they had deposited ₹5,05,000 into the respondent’s loan account to protect their tenancy interests amid proceedings concerning the suit property, and that requiring payment again would amount to double payment.

Source reference: pp.3–4

The respondent disputed that the DRT had directed those deposits and sought compliance with the Trial Court’s order.

Source reference: p.4

The High Court found that the DRT order did not direct the petitioners to deposit rent into the loan account.

Source reference: p.5
02

Issues

1. Whether the ₹5,05,000 deposited by the petitioners into the respondent’s loan account should be credited against the rent arrears ordered by the Trial Court.

Source reference: pp.4–6

2. Whether the Trial Court’s direction to pay arrears and continuing rent required modification, and, if so, on what terms.

Source reference: pp.6–8
03

Law Applied

The petition invoked the High Court’s supervisory jurisdiction under Article 227 of the Constitution, challenging an order made under Section 151 CPC.

Source reference: pp.2, 7

The Court treated the petitioners’ admitted liability to pay rent of ₹30,000 per month as undisputed and assessed the amounts paid into the loan account against the arrears claimed.

Source reference: pp.4–6

It also considered the DRT’s order of 19 September 2025, finding that it did not direct the petitioners to make those rent deposits.

Source reference: p.5

No precedent was cited.

Source reference: no citation
04

Reasoning

The Court calculated rent for 37 months, from September 2023 to 2026, at ₹30,000 per month, totalling ₹11,10,000, and credited the ₹5,05,000 shown in the petitioners’ statement of account, leaving ₹6,05,000 outstanding.

Source reference: pp.5–6

Although the DRT had not ordered the deposits, the Court considered the amounts already paid when determining the remaining arrears.

Source reference: pp.5–6

It therefore modified the Trial Court’s order to permit payment of the balance in two instalments, while requiring regular monthly payments into the loan account until the respondent’s loan liability was discharged.

Source reference: pp.6–8
05

Holding

The writ petition was disposed of, and the Trial Court’s order was modified.

The petitioners were directed to deposit the arrears of ₹6,05,000 in two equal instalments by 30 October 2026 and 30 November 2026, respectively, and to continue paying monthly rent of ₹30,000 into the respondent’s loan account without default.

Source reference: pp.7–8

Once the respondent’s loan liability was discharged, rent was to be paid directly to the respondent; the Trial Court’s remaining directions were left undisturbed.

Source reference: pp.7–8
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Code of Civil Procedure, 19081

Karnataka High Court

Original Court PDF

SHRI KUMAR NATARAJvsSRI D N NAGARAJAN

Karnataka High Court · September 28, 2026

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