IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.B. PRABHAKARA SASTRY, J.
K.M. Umapathy Swamy S/o Late Mahanthaiah - Appellant
Vs.
K. Ramachandra Setty S/o. A.S. Krishna Setty Since dead by his LRs. – Respondent
REGULAR SECOND APPEAL Nos.2414-2416 of 2006
Decided on : 05-04-2018
KARNATAKA RENT CONTROL ACT, 1961 [K.A. No. 22/1961] - Sections 17, 49 - Unregistered lease agreement - Main purpose of agreement is leasing of immovable property for valuable consideration - Unregistered agreement cannot be relied upon for collateral purpose to ascertain enhancement of rent payable.
KARNATAKA RENT CONTROL ACT, 1961 [K.A. No. 22/1961] - Section 19 - Suit for recovery of arrears of rent - Termination of lease agreement - Lease agreement enabled continuation of lease at enhanced rent for 10 years - Defendant, lessee admitting in written statement that he continued to be tenant even after expiry of lease term - Defendant filing petition under Section 19 of Act of 1961, depositing arrears of rent for year 1995-96 and continuing his status as tenant - Merely because plaintiff lessor seeking recovery of amount for subsequent period after expiry of lease term, it cannot be held that plaintiff not entitled for recovery of same towards continued possession.
KARNATAKA RENT CONTROL ACT, 1961 [K.A. No. 22/1961] - Section 19 - Suit for recovery of arrears of rent - Unregistered lease agreement - Plea of defendant lessee that rent cannot be ascertained on basis of unregistered agreement - Agreement enabling continuation of lease at enhanced rent for 10 years - Defendant lessee admitting in written statement that he continued to be tenant even after expiry of lease term - Defendant filing petition under Section 19 of Act of 1961, depositing arrears of rent for year 1995- 96 - Plaintiff also instituting eviction petition stating rent payable at rate of Rs.1,075/- p.m. - Defendant admitting said rate of rent - Plaintiff entitled to arrears of rent.
CODE OF CIVIL PROCEDURE, 1908 [C.A. No. 5/1908] - Order 8, Rule 6-A - KARNATAKA RENT CONTROL ACT, 1961 [K.A. No. 22/1961] - Section 44 - Suit for recovery of arrears of rent - Unregistered lease agreement - Defendant/tenant claiming recovery of alleged advance amount - Plea of defendant that he has paid advance amount of Rs. 25,000 and some additional expenditure - Separate petition for recovery said advance amount attained finality - Defendant has to pay arrears of rent as well - In absence of counter-claim in that regard - Defendant is not entitled to recovery of advance amount.
KARNATAKA RENT CONTROL ACT, 1961 [K.A. No. 22/1961] - Section 44 - Suit for recovery of arrears of rent - Unregistered lease agreement - Claim for reimbursement by defendant lessee - Defendant installing collapsible gate and repairing rolling shutter - Defendant not issuing notice in that regard to plaintiff lessor under Section 44 of Act of 1961 - Defendant is not entitled for reimbursement.
All these three appeals have been filed by the same appellant who was the plaintiff in O.S.No.28/1999 and O.S.No.178/2000, both filed by him in the Court of Prl.Civil Judge (Jr.Dn.), Arasikere, (henceforth for brevity referred to as “the trial Court”). Both the suits were filed by him for recovery of arrears of rent from the defendant therein, who is the same respondent in all these three appeals, for two different periods. O.S.No.28/1999 was decreed by the trial Court vide its judgment and decree dated 8.6.2001, for a sum of Rs.10,011/, together with interest at the rate of 18% p.a. thereupon payable by the defendant to the plaintiff therein. Aggrieved by the said judgment and decree, the defendant therein preferred an appeal in R.A.No.76/2001 and the plaintiff preferred an appeal in R.A.No.83/2001, in the Court of Civil Judge (Sr.Dn.), Arasikere (henceforth for brevity referred to as `the First Appellate Court). The said Court by its common judgment and decree dated 20.4.2006, partly allowed R.A.No.76/2001, modifying the judgment and decree of the trial Court under appeal, confining it to a sum of Rs.1,340/and dismissed R.A.No.83/2001. Being aggrieved by the said judgment and decree of the First Appellate Court, the plaintiff has preferred the Second Appeal in RSA.No.2416/2006 before this Court.
2. Original Suit in O.S.No.178/2000 was decreed by the trial Court by its judgment and decree dated 17.11.2003, holding the plaintiff as entitled to recover the arrears of rent at a sum of Rs.26,276/, together with interest at the rate of 18% p.a., from the defendant. Being aggrieved by the said judgment and decree, the plaintiff preferred an appeal in R.A.No.22/2004 and the defendant preferred an appeal in R.A.No.24/2004, both before the First Appellate Court. The First Appellate Court by its common judgment and decree dated 20.4.2006, dismissed R.A.No.22/2004 and allowed R.A.No.24/2004 and set aside the judgment and decree under appeal. Further it ordered in the same judgment and decree that the defendant was entitled to recover from the plaintiff a sum of Rs.27,078/.However, office was directed to recover the Court fee on the said amount from the defendant. Being aggrieved by the judgment and decree passed in R.A.No.22/2004 and R.A.No.24/2004, the plaintiff has preferred Second Appeal before this Court in RSA.No.2414/2006 and RSA.No.2415/2006 respectively.
3. The summary of the case of the plaintiff in both the original suits was that the defendant was a tenant under him with respect to the suit schedule property under a lease from 1.9.1985 at a monthly rent of Rs.505/.The tenancy was for a period of 11 months and thereafter, the rent was agreed to be continued for a further period of 11 months with an increase in the rate of rent at 10% upon the amount payable then. The defendant also had paid an advance amount of Rs.25,000/, which was agreed to be paid back to him at the time of delivering the vacant possession of the scheduled property. The defendant had paid rent from 1.9.1994 to 31.8.1995 to the plaintiff at the rate of Rs.980/per month as per the Lease Agreement. As per the agreement, the defendant had to pay a monthly rent of Rs.1,430/from 1.9.1998. The defendant was due to pay rent from 1.9.1995 to 31.12.1998, which was amounting to Rs.27,461.89, together with interest thereupon at 21% p.a. Claiming the said arrears of rent, the plaintiff filed a suit against the defendant in O.S.No.28/1999 before the trial Court. Thereafter also, the defendant did not pay the rent for the subsequent period also which was at the rate of Rs.1,430/per month from 1.1.1999 to 31.8.1999 and at the rate of Rs.1,573/per month from 1.9.1999 to 31.5.2000, totally amounting to Rs.25,597/. Thereafter, from 1.6.2000 up to 2.8.2000 also, the defendant did not pay the rent. As such, according to the plaintiff, in total, the defendant was liable to pay him the rental due along with interest thereupon at Rs.32,446.36. Claiming the said amount as a
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