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2002 Supreme(SC) 311

2002(2) Supreme 262
SUPREME COURT OF INDIA
(From Bombay High Court)
R.P. Sethi and K.G. Balakrishnan, JJ.
Vasant Ganesh Damle -Appellant
versus
Shrikant Trimbak Datar & Anr. -Respondents
Civil Appeal No. 1838 of 2002
(Arising out of SLP (C) No. 14778 of 2001)
Decided on 5-3-2002
Counsel for the Parties :
For the Appellant : Uday Umesh Lalit, Advocate.
For the Respondents : Gopal Balwant Sathe, Advocate.

IMPORTANT POINT
The High Court was justified in holding that the appellant cannot take advantage of S. 12(3) of Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 at the appellate stage which he had failed to avail of before the Trial Court.

Headnote:Bombay Rents, Hotel and Lodging House Rates Control Act, 1947-Section 12(3)-Eviction petition on ground of default in payment of rent-Appellant not depositing before the trial Court on the first day of suit for depositing the arrears of rent-Appellant filing application under Section 12(3) before appellate court and deposited rent-Whether can take advantage to escape eviction? (No)-Appeal dismissed-(C.P.C. 1908-Section 107-First Appeal).

       Held : In the instant case the appellant, by filing the application under Section 12(3) of the Act, had not made a prayer to the appellate court for passing any order which the trial court was intended to pass under the Code of Civil Procedure. His prayer was to invoke the benefit conferred upon a tenant under the Act. The beneficial provision under the Act unequivocally provides that it can be availed of in the suit and that too on the first day of hearing of the suit or on or before such other date as the court may fix. The first date of hearing cannot be stretched to be any date beyond the date before the issues are framed in the suit. The object is to protect the bonafide tenants from being evicted on the grounds of default by affording them further opportunity to make the payment of the arrears of rent atleast at two times during the subsistence of tenancy. The provision is not intended to confer a right without circumspection to be availed of by the tenant at any time according to his convenience. It is contended that the words "such other date as the court may fix" would also include the date fixed by the appellate court in terms of Section 107 of the Code of Civil Procedure. We do not agree with such a submission. However, in the instant case vide its order dated 18-1-2001 the appellate court had not extended the time and expressly permitted the appellant to deposit the arrears of rent allegedly payable by him without prejudice to the rights of the order party, i.e., the landlords. The High Court was, therefore, justified in holding that the appellant cannot take advantage of Section 12(3) of the Act at the appellate stage which he had failed to avail of before the trial court. The appellant was rightly held to be in arrears of rent for more than 6 months from the date of filing of the suit and had failed to apply before the trial court on the first day of suit for depositing the arrears of rent. There is no merit in this appeal which is accordingly dismissed. There will be no order as to costs. (Paras 9, 10 and 11)

       

Judgement Key Points

Key Points: - A tenant can avail benefit of Section 12(3) only on the first day of hearing or on or before such other date as the court may fix (!) (!) (!) (!) . - The provision is not intended to confer a right to be availed at any time according to the tenant’s convenience (!) (!) . - The appellate court cannot extend time under Section 12(3) if the tenant failed to avail the benefit at the trial court (!) .

What is the right of a tenant under Section 12(3) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947?

When must a tenant deposit arrears of rent to avail benefit under Section 12(3)?

Can a tenant take advantage of Section 12(3) at the appellate stage if he failed to do so at the trial court?


JUDGMENT

Sethi, J.-Leave granted.

2. The appellant-tenant was sought to be evicted from the leased premises on the ground of defaults in making the payment of the rent. The suit filed by the respondents-plaintiffs was dismissed by the trial court on the ground that the respondents-plaintiffs had failed to establish that they were the landlords of the appellant. The respondents-landlords preferred an appeal against the judgment and decree of the trial court which was allowed by reversing the findings of the trial court in so far as the relationship of landlord and tenant was concerned. The appellant was held to be the tenant of the respondents. The appellate court further found that as the appellant-tenant had defaulted in payment of rent, he was liable to be evicted from the leased premises. Aggrieved by the judgment of the appellate court, the appellant approached the High Court by way of a writ petition which was dismissed vide the order impugned in this appeal.

3. Mr. U.U. Lalit, learned Advocate appearing for the appellant fairly conceded before us that in view of the fact that the appellant himself prayed for deposit of rent to avail the benefit of Section 12(3) of the Act, the appellate court rightly held that he was the tenant of the landlords.

4. The learned counsel for the appellant, however, submitted that his client is not liable to be evicted as he has deposited the arrears of rent in the court in terms of the provisions of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (hereinafter referred to as "the Act"). He has specifically referred to the provisions of Section 12(3) of the Act which was substituted in the main statute vide Maharashtra Act No. XVIII of 1987. It is contended that when respondents-plaintiffs filed an application (Annexure P-7) claiming an amount of Rs. 3571.69 as arrears of rent, the trial court allowed the said application and directed the appellant herein to deposit the arrears of rent mentioned in the application within one month from the date of that order and further deposit the monthly rent of Rs. 92/- regularly on or before 10th of next month in the court. According to the learned counsel, as the aforesaid order passed in terms of Section 12(3) of the Act was complied with by the appellant, the trial court was, therefore, not justified in passing the decree of eviction against the tenant. It is contended in alternative that even if the order of the trial court dated 3.9.1994 is assumed to be not an order in terms of Section 12(3) of the Act, the appellant specifically filed an application under Section 12(3) of the Act in the appellate court which was allowed permitting him to deposit the arrears of rent and permitted increases amounting to Rs. 20,304/- in the court. The aforesaid directions were complied with by the appellant. It is contended that as the appeal is the continuation of a suit, the appellate court had the jurisdiction to pass the order dated 18.1.2001 in terms of Section 12(3) of the Act directing the tenant to deposit the arrears of rent and because the directions were complied with no decree of eviction could be passed against him.

5. Per contra Shri Gopal Balwant Sathe, learned Advocate appearing for the respondents submitted that the order of the trial court dated 3-9-1994 cannot be termed to be an order within the meaning of Section 12(3) of the Act and the order of the appellate court dated 18.1.2001 was passed without prejudice to the rights of the parties. According to him though the appeal is the continuation of the suit, the provisions of Section 12(3) being a concession conferred upon the tenant had to be availed of on the first day of hearing of the suit or on or before the such other date as the court may fix which could not be stretched to authorise the tenant to avail the beneficial provision at any time according to his convenience and even at the appellate stage.

Section 12(3) of the Act provides:

"Section 12(3) No decree for eviction shall be










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