Bombay High Court
DESHMUKH,SHAH
Yeshbai - Appellant
Versus
Ganat Irappa Jangam - Respondent
Decided On : 09/24/1973
Whether the word "dispute" in Section 12 (3) (a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Act LVII of 1947) should be read or construed to mean only "a bona fide dispute", and not "any dispute".
Fact of the Case:
The landlord gave a notice to the tenant alleging that he was in arrears of rent for over six months and was guilty of certain acts of waste and nuisance and terminated his tenancy on those counts. In the reply to the notice, the tenant, inter alia, contended that the agreed rent is excessive and called upon the landlord to furnish particulars of standard rent and permitted increases of the premises. The landlord thereafter filed an ejectment suit on all the three counts including non-payment of rent for over six months. The tenant had not filed any application for fixation of standard rent before the filing of the suit by the landlord. By his written statement, however, he raised a dispute about the standard rent and also requested the court to fix the same. He applied for fixation of interim rent pending fixation of the standard rent, and the interim rent was accordingly fixed by the court. The trial court, in view of the contention taken up in the written statement, raised an issue about the standard rent. Ultimately, the trial court held that the standard rent of the premises was Rs. 26 p.m. In view of the deposit of the arrears of rent and costs of suit, the trial court dismissed the landlord's suit for possession. The landlord's allegation about waste; and nuisance was rejected by the trial court. The appeal filed by the landlord relating to the recovery of possession was dismissed. This was again challenged by the landlord by a writ petition under Article 227 of the Constitution. When the matter came up for hearing before Bal, J., he found that there was a conflict of decisions of the Division Benches of this Court on the question as to whether a tenant was entitled to raise a dispute about standard rent for the first time by way of written statement. Bal J. took the view that if the dispute about standard rent and/or permitted increases though raised for the first time in the written statement is bona fide and the tenant satisfies the other requirements of Section 12 (3) (b) of the Rent Act, the protection of that section cannot be denied to him. In view of the importance of the question involved, he referred the matter to a Division Bench which could consider whether the matter should go before a larger bench. The reference made by Bal, J. came up before the Division Bench of Patel and Wagle, JJ., who also noticed the conflict of views expressed in the various judgments, thought it desirable to direct the papers to be placed before the learned Chief Justice for constituting a larger bench for deciding the following questions: 1. Whether in a proceeding to which Section 12 (3) (a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, would otherwise apply, the tenant-defendant can prove that a dispute about standard rent exists without following the procedure laid down in Explanation I to Section 12 ? 2. Can he then also take the defence that Section 12 (3) (a) does not apply and Section 12 (3) (b) applies?
Finding of the Court:
The Full Bench answered both these questions in the affirmative.
Issues: Whether the word "dispute" in Section 12 (3) (a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Act LVII of 1947) should be read or construed to mean only "a bona fide dispute", and not "any dispute".
Ratio Decidendi: The word "dispute" in Section 12 (3) (a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Act LVII of 1947) should be read or construed to mean only "a bona fide dispute", and not "any dispute".
Final Decision: Answered in the affirmative.
SHAH, J. :- This reference raises an important question as to the meaning of the word "dispute" in Section 12 (3) (a) of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Act LVII of 1947). The Special Civil Application No. 2353 of 1968 was originally heard by a single Judge who referred it to a Division Bench for its views on the following point :
"Whether the dispute as contemplated under Section 12 (3) (a) must be a bona fide dispute in order to claim benefit under Section 12 (3) (a)."
2. Since a pure question of law, and not the entire petition, has been referred, it is unnecessary to consider the case on facts. However, with a view to understand the question that has been referred, we will briefly set out the facts giving rise to this petition.
3. Since prior to 1958, one Aher was a tenant of the open plot of land in dispute at the rent of Rs. 12/- per month. He put up a flour mill. On February 14, 1958, by a deed of assignment, he had assigned his tenancy rights together with the running business of the flour-mill to the petitioners. The Petitioners fell in arrears for more than six months, and, therefore, by notice dated January 27, 1965, the landlord called upon them to vacate the premises on the ground of non-payment of rent for over six months. By a reply the petitioners challenged the quantum of rent as well as the period from which they were liable. Nothing, however, was paid by them towards the arrears of rent, and, therefore, the respondent-landlord filed the instant suit on August 25, 1965, for recovery of possession of the suit premises as also for arrears of rent. The petitioners filed their written-statement contending inter alia that the rent demanded was excessive and requested for determination of the standard rent. By the time issues were framed on December 10, 1965, the petitioners deposited all the arrears of rent, The trial Court found that the agreed rent of Rs. 12/- p.m. was the standard rent of the suit premises. It, however, found that the notice to quit was not valid on the ground that excessive rent was claimed therein. The trial Court came to the conclusion that the petitioners were not liable to be evicted from the premises as they were ready and willing to pay the rent, and, therefore, passed the decree only for arrears of rent and dismissed the suit for possession. This decision was challenged by the landlord in the Appellate Court. The Appellate Court inter alia held that there was no genuine dispute regarding the standard rent, and, the case fell under Section 12 (3) (a) of the Bombay Rent Act and consequently decreed the suit for possession. The petitioners have filed this Special Civil Application challenging the order passed by the Appellate Court.
4. When the petition came up before Wagle, J., he noticed that this Court has consistently taken the view that the dispute could be raised by a written-statement, but such a dispute regarding the standard rent and permitted increases had necessarily to be a bona fide dispute" and not a dispute which could be styled as a frivolous, false or mala fide dispute. In his order of reference, he has mentioned some of the judgments of the Division Benches and Single Judges which have taken this view. He, however, noticed that there were two judgments of Vaidya, J., which have taken the view that the word "dispute" has no such limitations in regard to its character, and it must be given its plain grammatical meaning without any qualifications. The order of reference further indicates that Wagle, J. would have followed the decisions of the Division Benches which have consistently taken the view that the dispute must be necessarily a "bona fide" dispute in preference to the contrary view expressed by Vaidya, J. However, on behalf of the landlord, it was contended before him that the earlier decisions of this Court including those of the Division Benches, which took the view that the "dispute" contemplated by Section 12 (3) (a) was r
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