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1995 Supreme(SC) 961

SUPREME COURT OF INDIA
 
BEFORE KULDIP SINGH AND S. SAGHIR AHMAD, JJ.
LAXMIKANT REVCHAND BHOJWANI AND ANOTHER
 
Versus
 
PRATAPSING MOHANSINGH PARDESHI DECEASED THROUGH HIS HEIRS AND LEGAL REPRESENTATIVES.
Civil Appeal No. 8379 of 1995 {From the Judgment and Order dated 23/24-11-1993 of the Bombay High Court in W.P. No. 3318 of 1989}
 
Decided on 18-9-1995
Advocates appeared:
Soli J. Sorabjee, Senior Advocate (A.M. Khanwilkar, Advocate, with him) for the Appellants; S.B. Wad, Senior Advocate (Ms J.S. Wad, Advocate, with him) for the Respondents.

Advocates:
A.M.KHANWILKAR, J.S.VAD, S.B.VAD, SOLI J.SORABJI

Headnote:

House Rates Control Act, 1947 - Section 12(3)(b) - Section 12(3)(a) - Section 12 - Section 12(2) - Transfer of Property Act, 1882 - Section 106 - Constitution of India - Article 227 - Residential Purposes - Monthly Rent - Landlady Tenants - Suit premises was rented to appellants for residential purposes at a monthly rent - Rent was, later on, increased - Landlady served a notice terminating appellants tenancy on grounds of default in payment of rent and bona fide requirement by her - It was mentioned in notice that arrears of rent were due from tenants - As far as bona fide requirement is concerned trial court rejected case of landlady - On issue of arrears of rent contention of landlady that tenants neglected to pay rent for more than six months – Held, Court would like to say that High Court was not justified in extending its jurisdiction under Article 227 of Constitution of India in present case - Act is a special legislation governing landlord-tenant relationship and disputes - Legislature has, in its wisdom, not provided second appeal or revision to High Court - Object is to give finality to decision of appellate authority - High Court cannot assume unlimited prerogative to correct all species of hardship or wrong decisions - It must be restricted to cases of grave dereliction of duty and flagrant abuse of fundamental principles of law or justice, where grave injustice would be done unless High Court interferes - Appellants are paying Rs 80 per month as rent - It would be fair and just to increase rent reasonably - After hearing learned counsel court direct appellants to pay Rs 600 as rent – Appeal Allowed.

JUDGMENT

KULDIP SINGH, J.-Special leave granted.

2. Shantabai, predecessor-in-interest of the respondents herein, instituted a suit under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (the Act) for possession of the suit premises against the appellants-tenants. The suit was decreed by the trial court. The appellate court reversed the judgment of the trial court and decreed (sic dismissed) the suit. The Aurangabad Bench of the Bombay High Court set aside the judgment of the appellate court and restored that of the trial court. This appeal, by the tenants, is against the judgment of the High Court.

3. The suit premises was rented to the appellants for residential purposes at a monthly rent of Rs 70. The rent was, later on, increased to Rs 80. The landlady served a notice dated 28-7-1972 terminating the appellants tenancy on the grounds of default in payment of rent and bona fide requirement by her. It was mentioned in the notice that arrears of rent from 1-4-1971 were due from the tenants. As far as the bona fide requirement is concerned the trial court rejected the case of the landlady. On the issue of arrears of rent the trial court negatived the contention of the landlady that the tenants neglected to pay the rent for more than six months. The trial court, however, held that the case of the landlady was covered under Section 12(3)(b) of the Act and since the tenants failed to comply with the said provisions they were liable to be evicted. The appellate court came to the conclusion that the bona fide requirement was not proved by the landlady. On the issue of arrears it was held that the landlady, having failed to prove that the tenants neglected to pay rent for more than six months, neither the provisions of Section 12(3)(a) nor of Section 12(3)(b) of the Act were attracted and as such the appellate court allowed the appeal and set aside the judgment of the trial court. During the pendency of the appeal the original landlady died and her legal heirs were brought on record.

4. The judgment of the appellate court was challenged by the respondents by way of petition under Article 227 of the Constitution of India. The High Court converted itself into an appellate court and reappreciated all the issues dealt with and decided by the two courts below. The High Court reversed the findings of the appellate court and held that the appellants neglected to make payment of the arrears of rent in terms of Section 12(3)(a) of the Act and as such were liable to be evicted.

5. We may at this stage notice the provisions of Section 12 of the Act which are reproduced hereunder :

"12. (1) A landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay, the amount of the standard rent and permitted increases, if any, and observes and performs the other conditions of the tenancy, insofar as they are consistent with the provisions of this Act.

(2) No suit for recovery of possession shall be instituted by a landlord against tenant on the ground of non-payment of the standard rent or permitted increases due, until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant in the manner provided in Section 106 of the Transfer of Property Act, 1882.

(3)(a) Where the rent is payable by the month and there is no dispute regarding the amount of standard rent or permitted increases, if such rent or increases are in arrears for a period of six months or more and the tenant neglects to make payment thereof until the expiration of the period of one month after notice referred to in sub-section (2) the (Court shall pass a decree) for eviction in any such suit for recovery of possession.

(b) In any other case, 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








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