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1977 Supreme(SC) 342

SUPREME COURT OF INDIA
N.L. UNTWALIA AND P.S. KAILASAM, JJ.
Khadi Gram Udyog Trust, Appellant
Versus
Shri Ram Chandraji Virajman Mandir, Respondent.
Civil Appeal No. 1313 of 1977
Decided on 28-11-1977.
Advocates appeared
Mr. Hardayal Hardy, Sr. Advocate (M/s. K. L. Taneja and S. K. Sabharwal, Advocates with him), for Appellant; Mr. L. N. Sinha, Sr. Advocate (M/s. Badri Das Sharma and S. R. Srivastava, Advocates with him), for Respondent.

Advocates:
Badri Das Sharma, HARDEYAL HARDY, K.L.Taneja, L.N.Sinha, S.K.SABHARWAL, S.R.SHRIVASTAVA

Headnote:

U.P. Urban Buildings Act XIII of 1972 – Section 20Limitation Act - Section 28 - Tenant – Appeal against conviction – Retired from service - Only contention raised in this appeal is that appellant having complied with requirement of Section 20 (4) of Act and deposited the entire amount of rent due Court ought to have passed an order relieving tenant against his liability for eviction on that ground - Chapter IV of U.P. Urban Buildings Regulation of letting, rent and eviction Act XIII of 1972 prescribed procedure for eviction of a tenant - While Section 20 (1) bars institution of suit for eviction of a tenant from a building, notwithstanding the determination of his tenancy by efflux of time or on expiration of a notice to quit or in any other manner, sub-sec. (2) enables the landlord to file a suit on any one or more of the grounds mentioned in sub-sec. (2) – Held, Same view was expressed by the SC in Bombay Dyeing and Co. Ltd. v. - State of Bombay where it held that statute of limitation only bars the remedy but does not extinguish the debt, except in cases provided for by Section 28 of Limitation Act, which does not apply to a debt. Under Section 25 (3) of the Contract Act a barred debt is good consideration for a fresh promise to pay amount. Section 60 of the Contract Act provides that when a debtor makes a payment without any direction as to how it is to be appropriated creditor has the right to appropriate it towards a barred debt. In a Full Bench decision of Patna High Court as he then was, has stated - There is a catena of decisions in support of what has been said by in First National Bank that Limitation Act with regard to personal actions, bars the remedy without extinguishing the right." The law is well settled that though the remedy is barred the debt is not extinguished - On consideration of scheme of Act, it is clear that the statute has conferred a benefit on the tenant to avoid a decree for eviction by complying with requirement of Section 20 - If he fails to avail himself of the opportunity and has not paid the rent for not less than four months and within one month from date of service upon him of a notice of demand landlord under Section 20 (2) would be entitled to an order of eviction - Still the tenant can avail himself of the protection by complying with requirements of Section 20 (4 - As he has not deposited the entire amount due the protection is no more available – Court agree with view taken by trial Court and High Court of Allahabad that the words "entire amount of rent due" would include rent which has become time-barred - Appeal dismissed

JUDGMENT

KAILASAM, J. :—On November 8, 1977 when the hearing of the appeal was concluded we pronounced an order dismissing the appeal with costs stating that a reasoned judgment would follow. We now proceed to give our reasons.

2. This appeal by special leave is preferred by Khadi Gram UdoygTrust, the tenant against the judgment of the Allahabad High court passed in Civil Revision No. 2217 of 1975 directing its eviction. The respondent Shri Ram Chandraji Virajman Mandir, Sarsaiya Ghat, Kanpur, the owner of premises No. 49/4 General Ganj, Kanpur, served a notice on the appellant who was a tenant of a shop in the premises on a monthly rent of Rs. 200/- from 1958 demanding payment of arrears as well as to quit the premises. The notice was served on 9th July, 1973. Subsequently the respondent filed the suit No. O.S. 5 of 1973 before the District Judge, Kanpur, restricting its claim for recovery of arrears of rent from 1-5-1973 to 8-8-1873, for Rs. 3200/- as damages and Rs. 322.93 as water tax alleged to be already due and Rs. 50 as water tax tentatively due pendente lite and future water tax and for ejectment of the petitioner from the suit premises. In this suit the respondent relinquished his claim for rent for the period 1-1-1963 to 31-12-1970 as the relief was time-barred. The appellant paid the rent for the period 1-1-1971 to 30-4-1973 and thereafter respondent restricted his claim for the period 1-5-1973 to 8-8-1973. The appellant filed the written statement stating that he had paid the entire amount due. As the rent for the period 1-1-1963 to 31-12-1970 was barred by time, he pleaded that he was not a defaulter and was therefore not liable to be evicted from the suit premises. The appellant deposited a sum of Rs. 5972.43 in the court being the amount of rent and damages for the period 1-5-1973 to 28-2-1975 together with interest, cost etc. as required by Sec. 20 (4) of the U.P. Act 13 of 1972. The suit was transferred to court of 6th Addl. District Judge, Kanpur, who on 11-11-1975 decreed the suit of the respondent and directed the appellant to vacate the suit premises and ordered that the entire amount deposited by appellant in the court under Section 20 (4) of the Act shall be paid to the plaintiff-respondent. The appellant filed a revision petition under Section 25 of the Small Causes Courts Act in the High Court of Allahabad. The High Court dismissed the revision petition by its judgment and order dated 19-4-1977. The present appeal is filed by special leave granted by this Court.

3. The only contention raised in this appeal is that the appellant having complied with the requirement of Section 20 (4) of the Act and deposited the entire amount of rent due, the Court ought to have passed an order relieving the tenant against his liability for eviction on that ground. Chapter IV of the U.P. Urban Buildings (Regulation of letting, rent and eviction) Act XIII of 1972 prescribed the procedure for eviction of a tenant. While Section 20 (1) bars institution of suit for eviction of a tenant from a building, notwithstanding the determination of his tenancy by efflux of time or on the expiration of a notice to quit or in any other manner, sub-sec. (2) enables the landlord to file a suit on any one or more of the grounds mentioned in sub-sec. (2). We are concerned with sub-clause (a) of sub-sec. (2) which provides that a suit for eviction of a tenant from a building may be instituted on the ground that the tenant is in arrears of rent for not less than four months and has failed to pay the same to the landlord within one month from the date of service upon him of a notice of demand. It is not disputed that several notices were served on the appellant and that he failed to pay the rent within one month from the date of the service of the notice of demand on him. Another opportunity for payment of rent is provided to the tenant under Section 20 (4) which provides that "In any suit for eviction on the ground mentioned in Cl. (a) of sub






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