SUPREME COURT OF INDIA
Jagdish Singh Khehar, T.S. Thakur, JJ.
Dina Nath (D) by Lrs. & Anr. – Appellants
Versus
Subhash Chand Saini & Ors. – Respondents
CIVIL APPEAL NO. 4563 OF 2014 (Arising out of S.L.P (C) No.26941 of 2011)
Decided On : 16-04-2014
(a) Rent Control Laws – Spirit and purpose underlying the rent legislation continues to be to protect the tenants against arbitrary and unfair demands for eviction or enhancement of rents notwithstanding a shift towards balancing landlord’s interest in eviction matters on ground of bona fide personal requirement. (Para 7)
(1974) 1 SCC 242; (1995) 1 SCC 104; (1990) 4 SCC 406; (1998) 4 SCC 49; (1979) 1 SCC 273; 1969 (2) UJ 432; (1974) 1 SCC 661 – Relied upon
(b) Delhi Rent Control Act – Section 15(7) – Default in payment of rent – Striking of defence – Should be exercised only when tenant’s conduct is negligent, deliberate or contumacious. (Para 9)
(1980) 3 SCC 610; (1995) 1 SCC 356; (1996) 3 SCC 55 – Relied upon
(c) Delhi Rent Control Act – Section 15(7) – Appellant paying entire arrears of rent as determined by court to respondent – Over and above he also paid ten month’s rent without any obligation to do so – This amount neither adjusted against future rent nor refunded to appellant – Appellant not in default on the date of the order striking out his defence and for a considerable period beyond that – Charge of contumacious failure and deliberate default not well-founded – Striking of defence not proper. (Para 13, 14, 15, 16)
Per Jagdish Singh Khehar, J.
(d) Delhi Rent Control Act – Section 15(7) – Power to strike out defence – Discretionary power – Every violation in implementation of the direction(s) issued by a Rent Controller will not ipso facto lead to the striking out the defence of a tenant – Even a single willful, contumacious, or negligent and careless default could lead to the striking out of a tenant’s defence. (Para 11)
(1980) 3 SCC 610; (1995) 1 SCC 356; (1996) 3 SCC 55; (2004) 8 SCC 307 – Relied upon
(e) Delhi Rent Control Act – Section 15(7) – Appellants asserting payment of rent earlier but respondents issuing receipt not on that date but at a later date – Plea not accepted – Rent taken to have been paid on the date shown in the receipts – Rent Controller directing payment of rent month to month on fixed dates – Payment made towards arrears of rent cannot be credited towards future rent – Direction of Rent Controller not complied – Depicts apathy to judicial direction – Defence rightly struck out. (Para 14, 16)
Facts of the case:
Appellants are the tenants of the respondents.
Respondents filed eviction suit on ground of default in payment of rent, change of user, unauthorised construction etc.
Rent Controller passed an order directing the appellants to pay current rent as well as arrears of rent.
Appellants filed written statement.
On failure of appellants in paying rents as directed, respondents prayed for striking out their defence. On the same day arrears of rent were paid in the court of Rent Controller. However by mistake short deposit was made which was made up shortly thereafter.
The Rent Controller struck out the defence of the appellants. This order was upheld by the High Court.
Finding of the Court:
Courts below exercised their discretion u/s 15(7) erroneously (Per T.S. Thakur, J.) / correctly (Per Jagdish Singh Khehar, J.).
Result: Appeal allowed (Per T.S. Thakur, J.)/ dismissed (Per Jagdish Singh Khehar, J.).
JUDGMENT
T.S. Thakur, J. –
1. Leave granted.
2. I have had the privilege of going through the elaborate Order proposed by my Esteemed Brother J.S. Khehar, J. While I entirely agree with the view that the power to strike out the defence vested in the Court under Section 15 (7) of the Delhi Rent Control Act is discretionary and ought to be exercised only when the tenant deliberately, contumaciously or negligently fails to deposit the rent due from him, I have, however, not been able to persuade myself to hold that such deliberate, neglect or contumacious failure has been established against the petitioner-tenant in the instant case so as to justify the exceptional step of the Court striking out his defence at the threshold.
3. The facts giving rise to the controversy have been set out at great length in the judgment of my Erudite Brother. I, therefore, do not consider it necessary to recapitulate the same over again except to the extent it may be necessary in the course of this judgment to do so. Before adverting to the factual matrix relevant to the question of striking out the tenant’s defence, we need to remind ourselves of the spirit underlying the Rent Control Legislations in general and Delhi Rent Control Act, 1958 in particular. The historical perspective in which these legislations came about has been traced in several decisions of this Court. Nagindas Ramdas v. Dalpatram Ichharam @ Brijram and Ors. (1974) 1 SCC 242 is one such decision in which this Court traced the historical compulsions that led to the enactment of the rent laws in this country. The broad policy underlying these laws including the Delhi Rent Control Act, observed this Court, was to protect the tenants against unreasonable demands of the landlords as to rents, evictions and repairs. The following passage is an apposite reminder of the times that saw the enactment of these laws and the purpose underlying the same:
“...The strain of the last World War, Industrial Revolution, the large-scale exodus of the working people to urban areas and the social and political changes brought in their wake social problems of considerable magnitude and complexity and their concomitant evils. The country was faced with spiralling inflation, soaring cost of living, increasing urban population and scarcity of accommodation. Rack renting and large scale eviction of tenants under the guise of the ordinary law, exacerbated those conditions making the economic life of the community unstable and insecure. To tackle these problems and curb these evils, the Legislatures of the States in India enacted Rent Control legislations...
...The language of the preambles of the Delhi Rent Act and Madras Rent Act is strikingly similar. The broad policy and purpose as indicated in their preambles is, substantially the same viz., “to protect tenants against their landlords in respect of the rents, evictions and repairs". With the same beneficent end in view, all the three Acts interfere with contractual tenancies and make provisions for fixation of fair and standard rents, or protection against eviction of tenants not only during the continuance of their contractual tenure but also after its determination. Indeed, the neologism "statutory tenant" has come into existence because of this protective policy which is common to all enactments of this kind...”
(emphasis supplied)
4. The above decision was followed in D.C. Bhatia and Ors. v. Union of India and Anr. (1995) 1 SCC 104 in which this Court referred to the challenge mounted against such rent laws and the restrictions placed by the same upon the rights of the landlord to seek eviction of their tenants. This Court while upholding the constitutional vires of The Delhi Rent Control Act, 1958 restricted the eviction of tenants except on the special grounds stated in the statute. Reference may also be made to Ashoka Marketing Ltd. and Anr. v. Punjab N
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