SUPREME COURT OF INDIA
Y.V. CHANDRACHUD AND P.S. KAILASAM, JJ.
Sh. Hem Chand, Appellant
Versus
The Delhi Cloth and General Mills Co. Ltd. and another, Respondents.
The International Centre for Kathakali and another, Appellants
Versus
H. K. Malik, Respondent.
Gurdyal Singh Chaggar, Appellant
Versus
Kulbushan Kumar, Respondent.
Ram Babu Gupta, Appellant
Versus
Anandi Devi, Respondent
(1) Civil Appeals Nos. 1748 of 1974 and 669 of 1975:
(2) Civil Appeals Nos. 713-714 of 1976:
(3) Civil Appeal No. 271 of 1976:
(4) Special Leave Petn. (Civil) No. 1364 of 1975:
Advocates Appeared
Civil Appeals Nos. 1748 of 1974 and 669 of 1975; 713-714 of 1976: 271 of 1976 and In C. As. Nos. 1748 of 1974 and 669 of 1975: Mr. B. N. Lokur, Sr. Adv., (Mr. A. G. Ratnaparkhi Adv., with him), for Appellant; H. K. Puri, Adv. for Respondent No. 1; Mr. S. N. Andley, Sr. Advocate (M/s. B. P. Maheshwari and Suresh Sethi, Advocates with him) for Interveners. In C. As. Nos. 713-714 of 1976: Mr. Sultan Singh, Adv. for Appellants: M/s. S. K. Mehta, K. R. Nagaraja and P. N. Puri Advs. for Respondent. In C. A. No. 271 of 1976: M/s. F. C. Bedi and A. G. Ratnaparhkhi, Advs. for Appellant: Mr. Uma Datta, Adv. for Respondent. In SLP (Civil) No. 1364 of 1975: Mr. Sultan Singh, Adv. for Petitioner: Mr. Uma Datta, Adv. for Respondent.
Delhi Rent Control Act, 1958 - Section, 15 (1) - Claim recovery of possession - Payment of rent - Additional Rent Controller on application of landlord passed an order directing tenant to deposit all arrears of rent due after deducting already paid and future rent at rate month arrears were not paid within a month but tenant deposited a sum of Rupees being rent in full due till end - Subsequently rent was not deposited months by months and landlord made an application Act and prayed that defence of tenant against eviction be struck out tenant then made good deficiency and deposited rent Additional Rent Controller struck out defence of tenant stating that on date of order there were arrears of rent- After that Additional Rent Controller proceeded with hearing of application of landlord and passed an order of eviction on ground of subletting- He declined to order eviction for non-payment of rent because tenant had deposited arrears of rent on date when defence was struck out –Held, Appeal by tenant is allowed and matter remitted to High Court with direction that it shall hear both appeals preferred by landlord afresh and dispose them of according to law in light of our observations- If High Court holds that Rent Controller was right in striking out defence of tenant it will allow appeals of landlord and direct recovery of possession from tenant- But in event of High Court holding that order of Rent Controller striking out defence was erroneous it will remit matter to Rent Controller for fresh disposal after hearing parties Ordered accordingly- There will be no order as to costs Rent Controller directing tenant to pay arrears of rent within time allowed and to continue to pay future rent in accordance with provisions of section tenant did not pay or deposit rent as directed landlord filed an application- under Rent Controller struck out defence and proceeded to dispose of application of landlord on taking evidence eviction was ordered- Appeals were preferred by tenant against order striking out defence and directing eviction on account of default in payment of rent Court following Full Bench decision in Delhi Cloth and General that time prescribed cannot be extended and as tenant had failed to comply with an order made under that section appeals were dismissed- Though two appeals were preferred both of them were disposed of on ground that Rent Controller had no jurisdiction to extend time and condone delay question as to whether striking out of defence by Rent Controller was proper or not was not considered by Court- Court have held earlier that if found that striking out of defence was erroneous tenant is entitled to an opportunity to defend application but if it is found that defence was properly struck out then tenants appeals will have to be dismissed- Both appeals are remitted to High Court for disposal in light of observations made above- No order as to costs - Order accordingly
Judgment
P. S. KAILASAM, J. - These appeals are by certificate, granted to Hem Chand, the tenant, under the Delhi Rent Control Act, 1958, against the judgment of a Full Bench of the Delhi High Court holding that the time prescribed under Sec. 15 (1) cannot be extended by the Rent Controller. Municipal Corporation of Delhi is the intervener in both the appeals.
2. The Delhi Cloth & General Mills Co. Ltd. is the landlord. The appellant-tenant occupied the premises at an agreed rent of Rs. 165/- p. m. The tenant defaulted in payment of rent and the landlord issued a notice of demand on 10th August, 1963 calling upon the tenant to pay a sum of Rs. 2,970/- being the arrears of rent and also complaining that he had unauthorisedly sublet the premises. The tenant paid a sum of Rs. 1,000/-only towards arrears within the notice period. As the balance amount was not paid, on February 24, 1964, the landlord filed an application for eviction of the tenant under Section 14 of the Delhi Rent Control Act on grounds of non-payment of rent and unauthorised subletting. It impleaded the alleged sub-tenants also as respondents. On September 9, 1964, the Additional Rent Controller, on the application of the landlord passed an order under S .15 (1) of the Act directing the tenant to deposit all the arrears of rent due after deducting Rs. 1,000/- already paid and future rent at the rate of Rs. 165/- per month. The arrears were not paid within a month but the tenant deposited a sum of Rupees 3,455/- on December 15, 1964, being the rent in full due till the end of November, 1964. Subsequently, the rent was not deposited months by months and on July 15, 1965, the landlord made an application under Section 15 (7) of the Act and prayed that the defence of the tenant against eviction be struck out. The tenant then made good the deficiency and deposited the rent upto date. On October 15, 1965, the Additional Rent Controller struck out the defence of the tenant stating that on the date of the order i.e. October 15, 1965 there were arrears of rent. After that the Additional Rent Controller proceeded with the hearing of the application of the landlord and on November 26, 1965, passed an order of eviction on the ground of subletting. He declined to order eviction for non-payment of rent because the tenant had deposited the arrears of rent on the date when the defence was struck out.
3. Aggrieved by these orders the tenant filed two appeals before the Rent Control Tribunal, one against the order striking out the defence and the other against the order granting eviction. The Tribunal decided both the appeals in favour of the tenant holding that since the tenant had gradually cleared off arrears amounting to Rs. 5000/- or more which indicated his bona fide intentions to pay all the rent his defence ought not to have been struck out. The delay in making the deposits was condoned subject to payment of Rs. 150/- by the tenant as cost. The order of the Additional Rent Controller striking out the defence and granting an order for eviction in favour of the landlord was set aside. The case was remanded for being tried on merits after giving the tenant an opportunity to defend his eviction on the ground of subletting.
4. Aggrieved at the orders of the Tribunal the landlord filed two appeals before the High Court. The appeals were heard by a single Judge but having regard to the important questions of law the matter was referred to a Full Bench. The Full Bench held that when a tenant makes default in deposit or payment under Section 15 the Rent Controller is bound to pass an order for recovery of possession and cannot refuse the landlords prayer for eviction. The Full Bench held that Rent Controller had no right to condone the delay if any, in making payment according to the requirements of Section 15 (1) of the Act.
5. Before us it was submitted by the learned counsel for the appellant that the High Court was in error in holding that under S. 15 (1) of the Act the Rent Control
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