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1991 Supreme(SC) 189

SUPREME COURT OF INDIA
K. Jagannatha Shetty, P.B. Sawant
PREMCHAND RANKA, APPELLANT
VERSUS
A. VASANTHRAJ KHATOD AND OTHERS, RESPONDENTS.
Civil Appeal No. 1367 of 1991 (Arising out of SLP (C) No. 11531 of 1990)
decided on March 27, 1991.

Acceptance of lump sum payment and absence of wilful default can impact the court's decision on eviction orders.

Headnote:

Wilful Default - Eviction Order - The court found that the appellant, although considered a wilful defaulter by lower courts, had paid the arrears in lump sum, which was accepted by the landlord. The court set aside the eviction order and directed the tenant to pay all arrears up-to-date within a month and to pay rent regularly thereafter.

Fact of the Case:

The appellant, considered a wilful defaulter, had paid the arrears in lump sum, which was accepted by the landlord. The lower courts upheld the eviction order.

Finding of the Court:

The court found that the method of payment in lump sum, accepted by the landlord for a long time, did not constitute wilful default. The eviction order was set aside, and the appellant was directed to pay all arrears within a month and to pay rent regularly thereafter. The appellant was also ordered to pay the respondent's costs.

Issues: Wilful default, acceptance of lump sum payment, eviction order

Ratio Decidendi: The court considered the acceptance of lump sum payment by the landlord and the absence of wilful default in the appellant's actions, setting aside the eviction order and imposing payment obligations on the appellant.

Final Decision: The appeal was allowed, and the eviction order was set aside. The appellant was directed to pay all arrears within a month, pay rent regularly, and bear the costs of the respondent.

ORDER

1. Special leave granted.

2. It is true that all the courts have held that the appellant is a wilful defaulter although he has paid the arrears in lump sum. But the fact remains that the payment made in lump sum has been accepted by the landlord and this method of payment went on for quite a long time. In the circumstances we do not think that there is wilful default on the part of the tenant. The finding of the courts below the seems to be too technical.

3. We, therefore, set aside the eviction order. We also direct that the appellant-tenant shall pay all the arrears, if any, up-to-date within a month from today and also pay the rent hereafterwards regularly months by months. The appellant however shall pay the costs of the respondent which we estimate at Rs. 3000.

4. The appeal is allowed accordingly.

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