SUPREME COURT OF INDIA
R.S. SARKARIA AND P.S. KAILASAM, JJ.
Mranalini B. Shah and another, Appellants
Versus
Bapalal Mohanlal Shah, Respondent.
Civil Appeal No. 1032 (N) of 1978
Decided on 1-5-1978.
Bombay Rents Hotel and Lodging House Rates Control Act - Section 12 (3) (b) - Constitution of India, 1950 - Article 136 - For Possession Of Suit Premises - Arrears Of Rent Amounting - Future Mesne Profits And Costs - Suit On Various Grounds - Including Municipal Taxes - Appellants herein filed a suit in Court of Small Causes for possession of suit premises and also for arrears of rent amounting together with future mesne profits and costs against respondent - Respondent resisted suit on various grounds - Trial court dismissed suit - It however fixed standard rent of suit premises - Including municipal taxes and further directed defendant to pay arrears of rent amounting 33 up to date of suit – Held, Respondent has made a counter claim for credit of two items which he says he has paid towards municipal taxes and cess on behalf of appellant-landlord - Appellants on other hand claim about as education cess from tenant - Parties agree before us that these claims and counter-claims may be decided within a period of six months from today by Court of first instance trial Court - Subject to this condition any amount found payable by trial Court with regard to these counter-claims may be adjusted towards rent or shall have to be paid by party by whom it is found due - Appeal Allowed.
JUDGMENT
SARKARIA, J.:— This appeal by special leave raises a question with regard to the interpretation of Section 12 (3) (b) of the Bombay Rents, Hotel and Lodging House Rates Control Act No. LVII of 1947, which runs as follows :
"......... No decree for eviction shall be passed in any such suit if, on the first day of hearing of the suit or on or before such other date as the Court may fix, the tenant pays or tenders in Court the standard rent and permitted increases then due and thereafter continues to pay or tender in Court regularly such rent and permitted increases till the suit is finally decided and also pays costs of the suit as directed by the Court".
2. It is not disputed that the expression "suit" in the aforesaid clause (b) includes an "appeal". The principal question that falls for consideration is, whether the requirement of the latter part of the above-quoted Clause regarding payment or tender of rent and permitted increases, regularly, during the pendency of the suit appeal is mandatory or merely directory. In other words, whether in case of a monthly tenancy, the Court has a discretion to treat the payment or tender of rent made at intervals ranging from two to four months during the pendency of the suit/appeal as a regular payment or tender within the contemplation of Clause (b) of Section 12 (3) ?
3. Now the facts material to the consideration of this question may be set out.
The appellants herein filed a suit in the Court of Small Causes, Ahmedabad for possession of the suit premises and also for arrears of rent amounting to Rs. 528.33, together with future mesne profits and costs against the respondent.
4. The respondent resisted the suit on various grounds. The trial court dismissed the suit. It, however, fixed the standard rent of suit premises at Rs. 65/- p. m., including municipal taxes and further directed the defendant to pay the arrears of rent amounting to Rs. 498.33, up to the date of the suit.
5. Aggrieved by that decree, the land-lord preferred an appeal before the Appellate Bench of the Small Cause Court at Ahmedabad, which by its judgment dated January 7, 1977, dismissed the appeal and maintained the decree of the trial Judge. The landlord thereafter filed a writ petition in the High Court, which was summarily dismissed by an Order dated July 21, 1977.
6. Against that order of the High Court, the landlord has now come in special appeal under Article 136 of the Constitution, before us.
7. The uncontroverted facts found by the courts below are that the Civil Appeal No. 133 of 1973 before the Appellate Bench of the Court of Small Causes was filed on August 22, 1973. Thereafter, it remained pending there for about 40 months. During the pendency of this appeal (C. A. 133/73), the tenant-respondent did not pay the rent or the money equivalent to rent every month as it fell due. Nor did he make any payment in advance. He deposited the rent in Court 16 times at intervals ranging from 2 to 4 months. This will be apparent from the figures tabulated below :
Date of deposit Amount deposited Per Receipt No.
Rs.
26-9-73 195 10017
20-12-73 195 14120
22-2-74 130 18695
3-5-74 195 2398
11-7-74 130 5673
4-10-74 195 11005
11-2-74 130 15792
14-2-75 130 20618
13-6-75 260 3258
11-9-75 195 9673
9-12-75 195 15418
12-3-76 195 22764
15-6-76 195 3639
29-7-76 130 7683
11-11-76 130 14973
6-12-76 195 16690
There is no dispute that the rent was payable every month at the rate of Rs. 65/- per month. The last installment of rent was paid by the tenant after the conclusion of final arguments. The Appellate Bench whose judgment has been confirmed by the High Court, held that the defendant had substantially complied with the provisions of Section 12 (3) (b) notwithstanding the fact that he did not pay the rent every month as it fell due, but after intervals of 2, 3 or 4 months.
8. Following the Division Bench decision of the Gujarat High Court in Lal Chand v. Nanalal (Civil Application No. 522 of 1971), the High Court held that the term
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