SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1964 Supreme(SC) 3

SUPREME COURT OF INDIA
M. HIDAYATULLAH AND J.C. SHAH, JJ.
V. N. Vasudeva, Appellant
Versus
Kirori Mal Luhariwala, Respondent.
Civil Appeal No. 1041 of 1963.
Advocates Appeared
Mr. S. T. Desai, Senior Advocate, (M/s. J. B. Dadachanji, O. C. Mathur and Ravinder Narain, Advocates, of M/s. J. B. Dadachanji and Co., with him), for Appellant; Mr. H. N. Sanyal, Solicitor-General of India, (Mr. B. P. Maheshwari, Advocate, with him), for Respondent.

Advocates:
B.P.MAHESHVARI, H.N.SANYAL, J.B.DADACHAN, O.C.MATHUR, Ravindra Narayan, S.T.DESAI

An order for deposit of arrears of rent under Section 15(1) of the Delhi Rent Control Act, 1958, can be made after giving the parties an opportunity of being heard. It is not necessary to have a full trial before making such an order.

Headnote:

RENT CONTROL ACT - DEPOSIT OF ARREARS OF RENT - OPPORTUNITY OF BEING HEARD - SECTION 15(1) OF THE DELHI RENT CONTROL ACT, 1958 - INTERPRETATION - NOTICE UNDER SECTION 46(5A) OF THE INDIAN INCOME-TAX ACT, 1922 - EFFECT - GARNISHEE ORDER - ATTACHMENT OF RENT.

Fact of the Case:

The appellant, a tenant, was served with a notice under Section 46(5A) of the Indian Income-tax Act, 1922, directing him to deposit with the Income-tax Officer all sums due by way of rent as also future rents. The landlord applied to the Rent Controller under Section 14 of the Delhi Rent Control Act, 1958, for an order directing the appellant to pay the arrears of rent. The appellant contended that he was not liable to pay rent as he had an agreement with the landlord to adjust the rent towards his professional fees.

Finding of the Court:

The Rent Controller, the Rent Control Tribunal, and the High Court held that the appellant was liable to pay the arrears of rent and ordered him to deposit the same with the Rent Controller. The Supreme Court upheld the orders of the lower courts.

Issues: 1. Whether the appellant was entitled to an opportunity of being heard before an order for deposit of arrears of rent was made under Section 15(1) of the Delhi Rent Control Act, 1958? 2. Whether the notice under Section 46(5A) of the Indian Income-tax Act, 1922, amounted to a garnishee order or attachment of rent in the hands of the appellant?

Ratio Decidendi: 1. Section 15(1) of the Delhi Rent Control Act, 1958, does not require a full trial before an order for deposit of arrears of rent is made. An interim order can be made after giving the parties an opportunity of being heard. The appellant was given an opportunity to be heard and the order was made after considering his affidavit and the other evidence on record. 2. The notice under Section 46(5A) of the Indian Income-tax Act, 1922, did not amount to a garnishee order or attachment of rent in the hands of the appellant. The appellant could have objected to the notice on the ground that he did not hold any money for or on account of the assessee and then he would not have been required to pay any sum to the Income-tax Officer.

Final Decision: The appeal was dismissed with costs.

Judgment

HIDAYATULLAH, J.:

This is an appeal by special leave against the order of the High Court, Punjab dated August 14, 1963, by which an order of the Rent Controller under S. 15 (1) of the Delhi Rent Control Act, 1958 directing the appellant to deposit back rents at Rs. 300/- per month from July 1, 1957 was confirmed. The High Court granted the appellant one month s time from the date of its own order, as the original time had already run out.

2. The appellant is an advocate, who is practising at Delhi. He is occupying No. 43, Prithvi Rai Road, New Delhi as a tenant, and his landlord Seth Kirori Mal Luhariwala is the respondent in this appeal. The tenancy commenced on July 28, 1957, and the memorandum of tenancy dated July 1, 1957 produced in the case, shows that the premises were taken on a monthly rent of Rs. 300/-. The memorandum also contains other terms which need not be mentioned here because they are not relevant to the present appeal. It appears that Seth Kirori Mal was in arrears in payment of his income-tax, and a sum of Rs. 39,00,000/- was outstanding from him. On October 31, 1957, the Income-tax Officer Central Circle, New Delhi, to whom all cases of Seth Kirori Mal were transferred, issued a notice to the appellant under S. 46(5A) of the Indian Income-tax Act directing him to deposit with the Income-tax Officer all sums due by way of rent as also future rents. The appellant sent no reply to this notice. He had, however, on September 29, 1957, addressed a letter to the respondent Seth Kirori Mal. The reply of Kirori Mal dated October 15, 1957 figured in the arguments a great deal, and as it is brief, it may be quoted here:

"From

. . . . . . . . . . . . . . . . .. .

To

. . . . . . . . . . . . . . . . . . . . . .

Dated Raigarh, the 15th October, 1957.

Dear Sir,

With reference to letter No. M-17-58 dated 29th September 1957, I am to write that you may please adjust six months rent of 43, Prithviraj Road, New Delhi, i.e., Rs. 1800/- (rent from 1-10-57 to 31-3-1958) towards your professional fee in part payment thereof. The balance of your fee will be paid later at the time of final settlement.

Yours faithfully,

Sd./

Paluram Dhanania

For Kirorimal Lohariwala".

Kirori Mal also sent a receipt dated October 16, 1957 for the amount, and it is item 23 in the record.

3. Kirori Mal had litigation in Calcutta. He had brought a suit against four defendants claiming the present property as his "absolute" and "exclusive self-acquired property". The case was pending in the High Court and on May 1, 1958, an order was made appointing one Chakravarti as a Receiver of the properties including No. 43, Prithvi Raj Road. Chakravarti also sent a notice on July 8, 1958 to the appellant demanding rent already due and also as and when due. To this notice, the appellant sent a reply on July 19, 1958. He referred to the payment of rent by adjustment towards fees for the period 1-10-1957 to 31-3-1958, which was the subject of the letter above. He stated that as regards rent after 1-4-1958, he had no objection to pay the amount to the Receiver or any other claimant but regretted that it was not possible for him to make the payment because of the notice served upon him by the Income-tax Officer. He asked the Receiver to get the notice withdrawn, and stated that he would be glad to remit the amount of rent to him when that was done. He also raised the question of certain other expenses which he had incurred in connection with the house which he claimed he was entitled to deduct from the rent and informed that a few repairs were required in the house. A second letter was sent by the Official Receiver on September 5, 1959 making another demand. In his reply dated September 14, 1959 to this letter, the appellant raised the question that a sum of Rs. 23,500/- was payable to him for professional services rendered by him to Seth Kirori Mal. He stated:

"You will therefore appreciate that I am entitled to adjust the rent payable against the fees due to me and the amou



























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top