SUPREME COURT OF INDIA
K.Ramaswamy : N.P.Singh
Swami Ratanbabu
Versus
Wamanrao Shankarrao Deshmukh
Case No. : of 1993
Date of Decision : 9/29/93
Tenant – Circumstances evidence – Normally monthly tenant is under an obligation to pay rent from month to month but this obligation is subject to a contract to contrary - Such a contract need not be reflected in a formal document and can be spelt out from conduct of parties spread over a fairly long period of time - Evidence in case which was believed by two tribunals of fact shows that tenant has been paying rent at an interval which landlord has been willingly accepting and always without even so much as a murmur - On that finding this court accepted that tenant is not in habitual default in a payment of rent - This view was reiterated in - This court held in a paragraph at page 443 of above-cited judgment that – Held, Finding of Controller and even taken in written statement filed by appellant is that appellant and the respondent are and are on good terms - He has been receiving rent at irregular intervals and that he has not at any time protested in receipt of rent though paid belatedly - Under those circumstances court have no hesitation to conclude that though tenant is under an obligation to pay monthly rent regularly by conduct there is a contract to contrary that rent paid at irregular intervals would not constitute habitual default in payment of rent - This being the finding of fact based on the evidence on record - Appellate tribunal and the High court had not had advantage of the law laid by this court - case was not cited before authorities - Thereby there is a manifest error of law committed by courts below in granting permission to determine tenancy of appellant - It is then contended by Wad counsel for respondent that though this point was argued before learned Single Judge appellant had not argued this point before division bench but confined to constitutional validity of clause 13 Order and that therefore appellant cannot be permitted to raise this point in this court – Court find no force in this contention - Though it is stated in his special leave petition that this point was argued before division bench and not dealt Court with proceed on basis that point had not been argued - Yet being a pure question of law it is always open to this court to permit parties to raise pure questions of law by questions of fact to be raised and decided in an appropriate case - In this case that is only question that arises and that question was squarely gone into up to learned Single Judge and therefore Court permitted counsel to argue point and we answered it accordingly - Appeal is allowed
(1) LEAVE granted.
(2) THE appellant-tenant committed default in the payment of rent from March 1979 to March 1980 at the rate of Rs. 80.00 per mensern. The respondent- andlord filed an application under clause 13(307 of the C.P. & Berar Letting of Houses and Rent Control Order, 1949, for short the Order. The Rent controller found that the respondent being the neighbour has been receiving the ent without any objection and therefore the appellant is not a habitual defaulter. The appellate authority reversed the finding and granted permission for serving notice to eject the appellant. In a writ petition filed under Article 226, the High court affirmed that finding. On further LPA, the division bench in the mpugned order dated 14/10/1986 affirmed the order directing permission determine the tenancy. Thus this appeal by special leave.
(3) IN S.P. Deshmukh v. Shah Nihal Chand Waghajibai Gujarat his court held that:
"NORMALLY, a monthly tenant is under an obligation to pay the rent from month to month but this obligation is subject to a contract to the contrary. Such a contract need not be reflected in a formal document and can be spelt out from the conduct of the parties, spread over a fairly long period of time. The evidence in the case, which was believed by the two tribunals of fact, shows that the tenant has been paying rent at an interval of 3 or 4 months, which the landlord has been willingly accepting and always without even so much as a murmur."
On that finding this court accepted that the tenant is not in habitual default in a payment of the rent. This view was reiterated in Rashik Lal v. Shah Gokuldas. This court held in a paragraph at page 443 of the above-cited judgment that:
"THE crucial test appears to be the conduct of the landlord in receiving the rent offered belatedly. If he receives the same under a protest and warns the tenant to be regular in payment in the future, he cannot be assumed to have agreed to a modified agreement in this regard. But if he, without any objection and without letting the tenant know his thought process, continues to receive rent at intervals of several months, he cannot be allowed to spring a surprise on the tenant by suddenly starting a proceeding for eviction. Having lulled the tenant in the belief that things were all right, the landlord was under a duty to serve him with a notice demanding regular payment, if he wished to insist upon it."
(4) THIS view was further followed in Mangalbhai v, Dr Radheyshyam. In view of this consistent law laid by this court, it is now well settled that by conduct of the landlord that if he accepts the rent though paid belatedly, there arises a contract to the contrary that the landlord is willing to receive the rent at irregular intervals. That conduct will be displaced by receiving the rent under protest and warns the tenant that henceforth if the payments are made at irregular intervals it would constitute habitual default and he will be liable to ejectment. If that conduct is not established and if the landlord continues to receive the rent, the conduct on the part of the parties in payment of the rent at irregular intervals cannot be said to constitute habitual default liable to ejectment under clause 13(3(ii) of the Order.
(5) THE finding of the Controller and even the defence taken in the written statement filed by the appellant is that the appellant and the respondent are neighbours and are on good terms. He has been receiving the rent at irregular intervals and that he has not at any time protested in receipt of the rent though paid belatedly. Under those circumstances, we have no hesitation to conclude that though the tenant is under an obligation to pay the monthly rent regularly, by conduct there is a contract to the contrary that the rent paid at irregular intervals would not constitute habitual default in payment of rent. This being the finding of fact based on the evidence on record. The appellat
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