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2007 Supreme(Bom) 1533

N THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
DR.S.RADHAKRISHNAN & SMT.R.S.DALVI, JJ.
Sitaram Maruti Nagpure - Petitioner
vs.
Fakirchand Purushottam Dhase- Respondent
WRIT PETITION NO.935 OF 1994 WRIT PETITION NO.2682 OF 1991
Decided On 24-10-2007

Advocates:
Advocate appeared
Mr. Haridas i/b. Mr. D.N. Joshi for the Petitioner.
Mr. G.R. Agarwal i/b. R.M. Agarwal for the Respondent.
Mr. P.S. Dani with Ms. Sharvari Shailendra for the
None for the Respondents.

Headnote:Bombay Rents, Hotel and Lodging House Rates (Control) Act, 1947 - Section 12 (3) (a)-Question as to readiness and willingness of tenant-Protection of-Section 12 (3) (a)-Offer before notice or after notice of termination-Reference case-Suka Ishram Chaudhari v. Ranchaaddas Manakchand Set Gyarati, LXXV BLR 220 and Abdul Gani Dilhalli v. Mohd. Yussuff Mohd. Isak, LXXX BLR 646-Held-No suit for recovery of possession unless landlord satisfy that tenant is not ready and willing to pay.-Section 12 makes it abundantly clear that if tenant pays or ready or willing to pay standard rent or permitted increases, then no ejectment will be made. To put it in other words, the landlord will be entitled to recover possession of the premises only if the tenant fails to pay the standard rent and permitted increases. In fact the said Section 12 clearly contemplates in a negative manner that no suit for recovery of possession shall be instituted by the landlord unless the landlord satisfies that the tenant was not ready and willing to tender and had not paid the standard rent and permitted increases for over a period of six months and in the event, the tenant was not ready and willing to tender standard rent and permitted increases, and that he has been in arrears of over a period of six months, then the landlord has to issue notice terminating the tenancy and demand the standard rent and permitted increases within a month after service of the notice. Even Section 12 (3) (a) makes it clear that whether the rent is payable by the month and there is no dispute regarding the amount of standard rent or permitted increases, if such rent or increases are in arrears for a period of six months or more and the tenant neglects to make payment thereof until the expiration of period of one month after the notice as referred to in sub-section (2), the Court may pass a decree for eviction in any such suit for recovery of possession. By way of explanation, in the said section, it is provided that in any case where there is dispute as to the amount of standard rent or permitted increases recoverable under this Act the tenant shall be deemed to be ready and willing to pay such amount if, before the expiry of the period of one month after notice referred to in sub-section (2), he makes an application to the Court under sub-section (3) of Section 11 and thereafter pay or tenders the amount of rent or permitted increases specified in the order made by the Court. To put it in other words, the explanation is with regard to the procedure, when there is a dispute with regard to the standard rent. Where there is no dispute with regard to the standard rent, the tenant has to show that he was always ready and willing to tender rent and he must not be in arrears for more that six months and in the event, the tenant was in arrears for more than six months, the landlord has the right to serve notice of termination and demand rent and permitted increases, and if the tenant does not pay the same within one month, in such a case, the landlord will be entitled for a decree of eviction.

JUDGMENT

DR.S.RADHAKRISHNAN, J.

1. Both the above Petitions have been referred to us by the Hon’ble the Chief Justice, pursuant to an order passed by the learned Single Judge in Writ Petition No.935 of 1994 dated 26th February,2001.

2. The short issue involved in the above is that there are two conflicting judgments of two learned Single Judges of this Court. In view thereof, the learned Single Judge had expressed the difficulty and requested the Hon’ble the Chief Justice to constitute a larger bench to resolve the conflict.

3. The basic issue raised in the above is with regard to the readiness and willingness of the tenant to pay rent and whether the rent should be paid only after the notice of termination under Section 12(3)(a) of the Bombay Rents, Hotel and Lodging House Rates Control Act,1947 (hereinafter referred to as the "said Act") or whether the tenant can show the readiness and willingness even prior to termination of tenancy under Section 12(3)(a) of the said Act. To appreciate the controversy, it would be relevant to quote Section 12 of the said Act;

12. No ejectment ordinarily to be made if tenant pays or is ready and willing to pay standard rent and permitted increases. – (1) landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay, the amount of the standard rent and permitted increases, if any, and observes and performs the other conditions of the tenancy, in so far as they are consistent with the provisions of this Act.

(2) No suit for recovery of possession shall be instituted by a landlord against a tenant on the ground of non-payment of the standard rent or permitted increases due, until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant in the manner provided in section 106 of the Transfer of Property Act,1882 (VI of 1882).

(3)(a) Where the rent is payable by the month and there is no dispute regarding the amount of standard rent or permitted increases, if such rent or increases are in arrears for a period of six months or more and the tenant neglects to make payment thereof until the expiration of the period of one month after notice referred to in sub-section (2), the Court may pass a decree for eviction in any such suit for recovery of possession. (b) In any other case, no decree for eviction shall be passed in any such suit, if, on the first day of hearing of the suit or on or before such other date as the Court may fix, the tenant pays or tenders in Court the standard rent and permitted increases then due (and thereafter,-(i) continues to pay or tender in Court such rent and permitted increases till the suit is finally decided; and (ii) also pays costs of the suit as directed by the Court.]

[(4) Pending the disposal of any such suit, the Court may out of any amount paid or tendered by the tenant pay to the landlord such amount towards payment of rent or permitted increases due to him as the Court thinks fit.]

Explanation:- In any case where there is dispute as to the amount of standard rent or permitted increases recoverable under this Act the tenant shall be deemed to be ready and willing to pay such amount if, before the expiry of the period of one month after notice referred to in sub-section (2), he makes an application to the Court under sub section (3) of section 11 and thereafter pays or tenders the amount of rent or permitted increases specified in the order made by the Court.

4. Out of the two conflicting judgments, the first judgment was delivered by Bhole,J. in Suka Ishram Chaudhari Vs. Ranchhoddas Manakchand Shet Gujarathi Vol.LXXIV BLR P.220, wherein the learned Judge while dealing with this issue, had categorically interpreted the readiness and willingness of tenant in tendering rent and if the tenants were to send rent by money order and if the money order was refused by the landlord then landlord cannot turn round





























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