SUPREME COURT OF INDIA
J.C. SHAH, S.M. SIKRI AND J.M. SHELAT, JJ.
Vithal Vasudeo Kulkarni and others, Appellants
Versus
Maruti Rama Nagane and others, Respondents.
Civil Appeal No. 31 of 1965,
D/-14-9-1967.
Advocates Appeared
Mr. S. S. Shukla Advocate for Appellants, M/s. O. P. Malhotra and P. C. Bhartari, Advocate for M/s. J B. Dadachanji and Co., for Respondent No. 1.
{'KEYWORD': 'TENANCY - TERMINATION - NON-PAYMENT OF RENT - WAIVER OF FORFEITURE - BOMBAY TENANCY AND AGRICULTURAL LANDS ACT, 1948, SECS. 20, 25(1), 25(2).', 'SUBJECT': 'Bombay Tenancy and Agricultural Lands Act, 1948', 'ACT SECTION LIST': ['BOMBAY TENANCY AND AGRICULTURAL LANDS ACT, 1948, SECS. 20, 25(1), 25(2).'], 'SUMMARY': "The Bombay Tenancy and Agricultural Lands Act, 1948, Section 25(2) does not bar the landlord's right to waive the termination of tenancy and accept arrears of rent before filing an eviction suit, resulting in a waiver of the termination of tenancy. The Act does not limit or abridge the rights or privileges of any tenant under any usage, law, contract, grant, decree, or order of a court. In this case, the tenant had paid all the arrears and the landlord had accepted them before filing the eviction application, so the landlord's right to evict the tenant was extinguished."}
Fact of the Case:
The appellants, landlords, filed an application under Section 29 of the Bombay Tenancy and Agricultural Lands Act, 1948, for eviction and possession of the land leased to respondent 1, the tenant, on the ground of non-payment of rent. The tenant had made defaults in paying rent for three years, but he had paid up all the arrears before the application was filed, and the landlords had accepted the payments. The Mamlatdar, District Deputy Collector, and Revenue Tribunal dismissed the application, holding that the defaults were not willful and that the landlords were not entitled to an order of eviction.
Finding of the Court:
The High Court dismissed the landlords' Special Civil Application, observing that there was no ground for interfering with the Tribunal's order since the landlords had received all the rent due by the tenant and there were no arrears due at the date of the application.
Issues: Whether the landlord's right to evict the tenant under Section 25(2) of the Bombay Tenancy and Agricultural Lands Act, 1948, is absolute, even if the tenant has paid up all the arrears and the landlord has accepted them before filing the eviction application.
Ratio Decidendi: Section 25(2) of the Bombay Tenancy and Agricultural Lands Act, 1948, does not apply to a tenant who has failed to pay rent for three years if he has paid up all the arrears before the landlord files an eviction application and the landlord has accepted the payments. The Act does not limit or abridge the rights or privileges of any tenant under any usage, law, contract, grant, decree, or order of a court. Therefore, the landlord's right to evict the tenant is extinguished if the tenant pays up the arrears and the landlord accepts them before filing the eviction application.
Final Decision: The appeal was dismissed with costs.
Judgement
SHELAT, J. : The appellants are the landlords and respondent 1 the tenant in respect of Survey Nos. 1517/2, 1500/2 and 1500/4 situate in village Mangalwedha, District Sholapur. Under the tenancy the agreed rent was Rs. 95 per year. As the tenant made default in paying the rent the appellants served him with a notice terminating the tenancy. On March 12, 1957 they filed an application under Section 29 of the Bombay Tenancy and Agricultural Lands Act LXVII of 1948 before the Mamlatdar for eviction and possession on the ground that the tenant had failed to pay rent on the due dates, that is, March the 20th of each of the years 1951-52 to 1954-55 and that therefore they were entitled to an order of ejectment under Section 25 (2) of the Act. The Act applicable to the said application is Act LXVII of 1948 before its amendment in 1956. The position as regards the rent was that for the year 1951-52 the landlords had filed a tuft for recovery of the rent and the tenant had paid Rs. 142 after his appeal against the decree passed against him was disposed of on June 8, 1956. The amount of Rs. 142 comprised of Rs. 95 for 1951-52 and Rs. 47-8-0 being half the rent for 1952-59. For the year 1952-53 half of the amount of rent due from him was paid in April 1956. For the year 1953-54 the landlords filed an assistance suit and the tenant paid the rent on May 5, 1955. For the year 1954-55 the tenant paid and the landlord received the rent on April 12, 1955. The Mamlatdar dismissed the appellant s application on the ground that the tenant having paid up the rent due by him and there being no arrears at the date of the institution of the application the appellants were not entitled to an order of ejectment. In the appeal filed by the appellants before the District Deputy Collector, it was held that though the tenant had failed to pay the rent on the due date, the appellants having admittedly accepted all the rents due to them before the institution of their application the defaults were not willful and the Deputy Collector had therefore the discretion not to order eviction. The appellants took the matter to the Revenue Tribunal. The Tribunal dismissed the appeal on the same ground. Having failed before the Revenue Authorities the appellants filed a Special Civil Application in the High Court under Art. 227 of the Constitution challenging the correctness of the Tribunal s order. The High Court dismissed the application observing that as it was an admitted position that the landlords had received all the rent due by the tenant and there were no arrears due by him at the date of the said application, there was no ground for interfering with the Tribunal s order. The appellants obtained special leave from this Court against the High Court s order and that is how this appeal has come up before us.
2. Counsel for the appellants contended that the High Court was in error in refusing to set aside the Tribunal s order, that under S. 25 (2) of the Act once the tenant made three defaults in payment of rent on the due dates, the landlord became entitled to terminate the tenancy and to an order of eviction against him, that there would be no question of the defaults being wilful or otherwise, that the mere fact of the tenant having failed to pay rent on the due dates was sufficient and there was no room for any principle of equity relieving the tenant against forfeiture. According to Counsel, Section 25 (2) is mandatory and the revenue authorities were bound to order eviction even though the tenant had paid up the rent and the landlord had accepted it before the filing of the application. In support of these contentions he relied strongly on the decision of this Court in Raja Ram Mahadev Paranjype v. Aba Mar Maruti Mali, 1962 Supp (1) SCR 739:
3. The question reused by Counsel mainly depends upon the construction and true meaning of Section 25 of the Act. By its sub-section (1) the section provides that where any tenancy held by a tenant is terminated f
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