SUPREME COURT OF INDIA
J.C. SHAH, V. RAMASWAMI AND A.N. GROVER, JJ.
Khemchand Dayalji and Co., Appellant
Versus
Mohammadbhai Chandbhai, Respondent.
Civil Appeal No. 808 of 1966, D/- 24-3-1969.
Advocates appeared
M/s. Arun H. Mehta and I. N. Shroff, Advocates, for Appellant; Mr. S. T. Desai, Senior Advocate, (Mr. P. C. Bhartari, Advocate, and M/s. J. B. Dadachanji and O. C. Mathur, Advocates of M/s. J. B. Dadachanji and Co. with him) for Respondent.
Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 – Sections 11 and 49 – Presidency Small Cause Courts Act 15 of 1882 - Section 53 - Tenants - Agreement of lease - Fixation of standard rent - Appellants are tenants of that house at a monthly rental of Rupees 2,171/-. Under the agreement of lease the appellants were to pay out of agreed rent Rs. 810 per month, and balance was to be appropriated towards a loan advanced by them to respondent for constructing house. Appellants had also agreed to pay municipal taxes and electricity charges – Held, Court unable to hold that so long as application for fixation of standard rent is pending, Court s jurisdiction to issue a distress warrant remains suspended. Until standard rent is determined, or an interim order is made, rent at contractual rate is payable and process for recovery by distress warrant may always be adopted. Section 11 of Act, 1947 confers upon Court power to fix standard rent and permitted increases are certain cases. Court is also competent to determine interim standard rent, and direct payment pending final determination of standard rent - Appellants had to pay amount of interim standard rent twice over; once when they deposited it in Court and again when they satisfied demand to avoid execution of distress warrant. Landlord undoubtedly cannot obtain amount twice over. But that does not mean that when the tenant has not made the amount available to the landlord the application for distress was not maintainable – Appeal dismissed.
Judgment
SHAH, J. :- The respondent is the owner of a house in the town of Ahmedabad. The appellants are the tenants of that house at a monthly rental of Rupees 2,171/-. Under the agreement of lease the appellants were to pay out of the agreed rent Rs. 810 per month, and the balance was to be appropriated towards a loan advanced by them to the respondent for constructing the house. The appellants had also agreed to pay municipal taxes and electricity charges.
2. The appellants filed suit No. 1308 of 1963 in the Court of Small Causes, Ahmedabad, for an order, inter alia, determining, for an order, inter alia determining the standard rent of the premises in exercise of the power under Section 11 of the Bombay Rents. Hotel and Lodging House Rates Control Act 57 of 1947. The Court of Small Causes, Ahmedabad, on an application filed by the appellants fixed the contractual rent as "interim standard rent" and directed the appellants to pay the rent and municipal taxes. Pursuant to this order, the appellants deposited Rs. 2,403 as rent and Rs. 8,921.25 due as municipal taxes for the year 1964-65. An application by the respondent to withdraw the amount deposited in Court was resisted by the appellants. The Court permitted the respondent to withdraw Rs. 2,403 but not the municipal taxes. The respondent then obtained an order for the issue of a distress warrant under Section 53 of the Presidency Small Cause Courts Act 15 of 1882 read with Rule 5 of the Rules framed under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, for recovery of the amount due as municipal taxes, Distress was levied, and the order was confirmed. A revision application moved in the High Court of Gujarat against that order was rejected.
3. In support of this appeal counsel for the appellants urged that Rule 5 of the Rules framed under Section 49 of the Bombay Rents, Hotel and Lodging House Rates Control Act 57 of 1947, is ultra vires the State Government; that the Court of Small Causes Ahmedabad has in any event no jurisdiction to pass an order issuing a distress warrant when trying a suit or proceeding under Bombay Act 57 of 1947 especially when an application for determination of standard rent under Section 11 of the Act is pending and that the municipal taxes and electricity charges do not constitute rent which may be recovered by the issue of a distress warrant.
4. By the express terms of the tenancy the appellants had undertaken to pay the municipal taxes and electricity charges as part of the rent; it is not open to them to contend that they are not rent, recoverable by the issue of a distress warrant. The last branch of the argument has, therefore, no force.
5. The relevant provisions of the Bombay Rents, Hotel and Lodging House Rates Control Act 57 of 1947 and other statues which have a bearing may first be noticed. Bombay Act 57 of 1947 was intended to control rents and to confer protection against eviction upon tenants of premises in certain urban areas in the Province of Bombay. By Section 28 of the Act certain Courts were designated as Courts of exclusive jurisdiction to entertain and try suits and proceedings between a landlord and tenant, proceedings between a landlord and tenant, relating to recovery of rent or possession to which the provisions of the Act applied, and also to decide claims or question arising under the Act. Section 28 as originally enacted and later amended by Bombay Acts 58 of 1949 and 15 of 1952, in s far as it is material reads :
"(1) Notwithstanding anything contained in any law and notwithstanding that by reason of the amount of the claim or for any other reason, the suit or proceeding would not, but for this provision, be within its jurisdiction.
(a) in Greater Bombay, the Court of Small Causes, Bombay,
(aa) in any area for which, a Court of Small Causes is established under the Provincial Small Cause Courts Act, 1887, such Court and
(b) * * * * * *
shall have jurisdiction to entertain and try any suit or proceeding betw
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.