SUPREME COURT OF INDIA
K. JAGANNATHA SHETTY AND N.M. KASLIWAL, JJ.
Smt. Pushpa Devi and others, Appellants
Versus
Milkhi Ram (Dead) by his LRs., Respondent
Civil Appeal No.263 of 1983, D/- 8-2-1990.
Advocates appeared :
Mr. M. K. Ramamurthi Sr. Advocate and Mr. S. K. Agarwal, Advocate with him for Appellants; Mr. S. K. Mehta, Mr. Aman Vachher, Mr. Atul Nanda and Mr. K. L. Verma, Advocates, for Respondent.
East Punjab Urban Rent Restriction Act, 1949 – Section 13(2)(i) - Transfer of Property Act, 1882 - Section 114 - Tenant and Land lord – Default in payment of rent - Penalty of eviction - Validity of arrears – Right of tenancy - Respondent in this appeal is the landlord of the premises consisting of a shop at Ludhiana. In February, 1958 shop was taken on rent by Amar Chand. The rent agreed was Rs. 45/- per month - In December, 1975 Amar Chand died - His brother succeeded to tenancy rights - In November, 1976 he also died leaving behind his widow and his minor son - They are respondents 1 and 2 in this appeal - Landlord brought an action for eviction under S. 13 of Act on ground of arrears of rent, subletting etc - His case was that respondents 1 and 2 inducted Saligram respondent No. 3 as sub-tenant and delivered exclusive possession of shop premises - Eviction was also sought on ground that tenant has made alterations resulting in material impairment in value and utility of premises - Held, Court opinion that obligation to tender the rent under the proviso on first hearing date does not depend upon existence of admitted jural relationship of landlord and tenant - When an action for eviction is brought by landlord on ground of default, the proviso stands attracted - Benefit of proviso could be availed of by the tenant and also by those who claim to be tenant - A remains absent, perhaps he is not interested in the premises. B, however, tenders the rent on his own account, but the landlord refuses to accept it on plea that B has no right to tender the rent since he is not a recognised tenant. The acceptance of that view may result in ejectment of A and B before determining controversy between the parties. Both of them may have to be thrown out without deciding the issue raised in the pleadings - Appeal is allowed.
Judgment
K. JAGANNATHA SHETTY, J:- The appeal concerns the scope and construction of S. 13 sub-sec. (2)(i) proviso of the East Punjab Urban Rent Restriction Act, 1949 (called shortly as The Act). The point at issue relates to the validity of the arrears; of rent deposited by the tenant under the proviso.
2. Milkhi Ram- the respondent in this appeal is the landlord of the premises consisting of a shop at Ludhiana. In February, 1958 the shop was taken on rent by Amar Chand. The rent agreed was Rs. 45/- per month. In December, 1975 Amar Chand died. His brother Diwan Chand succeeded to the tenancy rights. In November, 1976 he also died leaving behind his widow Pushpa Devi and his minor son Yashpal. They are respondents 1 and 2 in this appeal. The landlord brought an action for eviction under S. 13 of the Act on the ground of arrears of rent, subletting etc. His case was that respondents 1 and 2 inducted Saligram respondent No. 3 as sub-tenant and delivered exclusive possession of the shop premises. The eviction was also sought on the ground that the tenant has made alterations resulting in material impairment in the value and utility of the premises. The respondents case was that the shop was taken on lease by Amar Chand as partner of the firm M/s. Amar Chand in which Amar Chand, Diwan Chand and Saligram were all partners in the business from very commencement of tenancy. They denied that Saligram was inducted as subtenant. They also refuted the allegations as to material alterations affecting the value and utility of the premises.
3. Before the Rent Controller the respondents on the first date of hearing tendered the arrears of rent, with interest and cost determined by the Controller. The amount was rendered evidently under the proviso to S. 13, sub-sec. (2)(i) of the Act. Mr. Satpal Singh the common counsel for all the respondents tendered the amount along with his statement, which reads as follows:
"I tender Rs. 2025/- as arrears of rent from 1-12-1975 to 31-8-1979, Rs. 240/- as interest and Rs. 25 / - as costs as assessed on behalf of all the respondents, total amounting to Rs. 2290/ -.
4. The landlord did not accept the amount but made the following endorsement:
"I do not accept the tender as it is neither legal nor valid. The respondent No. 3 Saligram, is a sub-tenant."
The Rent Controller at that stage did not state whether the objection of the landlord was legal and justified. Since the eviction was also based on other grounds, he allowed the parties to lead evidence on all the questions. After considering the evidence adduced by the parries, the Controller found no substance in the allegations that the tenant has made any material alteration simpering the utility of the building. On the question of original tenancy agreement, he found that the original tenant was not in the partnership firm of which Amar Chand was partner, but Amar Chand took the premises in his personal name and the tenancy was therefore personal to him. He also accepted the case of unauthorised subletting and held that respondent No. 3 was a sub-tenant inducted into the premises without consent of the landlord. On the validity of the amount tendered on behalf of all respondents including Saligram it was held that the tender was not legal and valid since Saligram was not a tenant. In other words, he held that the rent tendered by counsel for and on behalf of all the respondents was not a legal tender in terms of S. 13 sub-see. (2)(i) proviso and the undisputed tenant alone ought to have tendered the rent. With these findings the Controller accepted the eviction petition and directed the tenants eviction from the premises.
5. The appeal preferred by the tenant was disposed of on a preliminary point, that is, on the validity of the amount deposited by the common counsel for the parties on the first date of hearing of the case. The appellate authority held that the amount deposited on behalf of the three respondents was not valid since Saligram was a stranger. On
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