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2021 Supreme(SC) 1049

SUPREME COURT OF INDIA
K.M. Joseph, Pamidighantam Sri Narasimha, JJ.
Mahesh Kumar Agarwal (Dead) by Lrs - Appellants
Versus
Naresh Chandra & Ors. – Respondents
Civil Appeal No. 7554 of 2021 (Arising out of SLP (C) No. 3432 of 2017)
Decided On : 08-12-2021

Headnote:

Civil Procedure Code, 1908 – Order XXIII Rule 1 – Rewa State Companies Act, 1935 – U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 – Section 21 – Compensation – Application was filed under section 21 of Act before Rent Controller – This was preceded by a legal notice which was purporting to comply with requirement of first proviso to Section 21(1)(a) – Respondents sent a reply notice – In said reply notice, respondents did not raise any objection based on requirements in proviso to Section 21 – Case went to trial – By order, Rent Controller ordered eviction of respondents – Respondents carried matter in appeal – It was unsuccessful as appellate authority dismissed appeal – Respondent filed a writ petition before High Court –Held, Court are of view that appellant should not be denied benefit of said view – Court further notice that, on facts, present case stands on a more sturdier footing – Tenant had, in fact, raised objection, which he did not press, whereas, in facts of this case, the tenant has not raised any objection in not only reply notice, but even in written statement before Rent Controller – What fortifies us further is that even in appeal before appellate Court, tenant did not urge ground – If at all there is a case for waiver, this would be one – However, under Section 21 of Act, as correctly pointed out by the learned Amicus, under the second proviso, in respect of a non-residential premises or a building let out exclusively for non-residential purpose, an order for payment of an amount not exceeding two months’ rent as compensation – Provided further that if any application under clause (a) is made in respect of any building let out exclusively for non-residential purposes, prescribed authority while making order of eviction shall, after considering all relevant facts of case, award against landlord to tenant an amount not exceeding two years rent as compensation and may, subject to rules, impose such other conditions as it thinks fit – In this case, admittedly, a building was let out exclusively for non-residential purposes – In terms of said proviso, having heard learned senior counsel, court are inclined to order that appellants shall pay a sum to respondents – Appeal allowed.

JUDGMENT :

K. M. JOSEPH, J.

1. Leave granted.

2. This matter arises under U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as ‘Act’ for brevity). A proceeding was instituted for eviction of the respondents by the appellant on the basis of a purchase made by him on 04.01.1977 from the previous landlord. The application was filed under section 21 of the Act before the Rent Controller. This was preceded by a legal notice which was dated 22.12.2007 purporting to comply with the requirement of the first proviso to Section 21(1)(a). The respondents sent a reply notice on 22.02.2008. In the said reply notice, the respondents did not raise any objection based on the requirements in the proviso to Section 21. The case went to trial. By order dated 16.05.2013, the Rent Controller ordered eviction of the respondents. The respondents carried the matter in appeal. It was unsuccessful as the appellate authority dismissed the appeal on 21.07.2016. The respondent filed a writ petition before the High Court. By the impugned order, the High Court has allowed the writ petition. The sole ground on which the High Court allowed the writ petition filed by the respondent is that the appellant-landlord had not complied with the requirement under the proviso under Section 21(1)(a) insofar as no notice of six months was given prior to the filing of the application.

3. We have heard Mr. Joy Basu, learned senior counsel for the appellants. Noticing that, though served, there is no appearance for the respondents, we appointed Mr. Senthil Jagadeesan, learned counsel to assist the Court as Amicus. We have heard the learned Amicus as well.

4. Mr. Joy Basu, learned senior counsel for the appellants, would, firstly, draw our attention to the terms of the notice by the appellant. He would point out that it is pertinent to note that, though in notice, it is inter alia stated that tenancy of the tenant was being terminated within 30 days of the receiving of the notice and the tenant was asked to hand over the possession, he would point out that the application was filed after the expiry of six months. The application was filed, in fact, on 20.11.2008 whereas the notice is dated 22.12.2007. Secondly, he would submit that, even for a moment, assuming that the notice dated 22.12.2007 falls foul of the mandate of the proviso, the conduct of the tenant is such that it must be held that he has waived his right. In this regard, he drew support of the judgment of this Court which is reported in Martin & Harris Ltd. v. VIth Additional Distt. Judge (1998) 1 SCC 732. He would submit that this is a case where to begin with, the tenant did not set up any objection in reply notice. Still further, he did not take up any contention in his written statement before the trial Court in regard to the notice. The tenant did not even raise objection when he filed the appeal before the appellate authority. It is for the first time that in the writ petition that the tenant raised this point and the High Court has allowed the petition. On the basis of the judgment of this Court, he would, therefore, submit for our acceptance, the principle that even assuming that the notice sent by the appellant was defective, it is capable of being waived and it was, in fact, waived.

5. Per contra, learned Amicus would draw our attention to a unreported judgment of this Court in Gopal Krishan Verma v. Tahir (Civil Appeal No. 7896-7897 of 2015). Therein, a Bench of two learned Judges was dealing with the very same provision with which we are concerned. We may refer to the discussion by this Court after noticing the fact that the purchase of the property in the said case was made by the landlord on 13.07.2009 and the ejectment petition was filed after the expiry of three years on 21.12.2012. The Court found that the first requirement under the proviso was fulfilled. It is, thereafter, the Court proceeded to hold as follows:

    “The more relevant aspect of the matter i

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