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2023 Supreme(Bom) 2112

IN THE HIGH COURT OF BOMBAY
Anil Laxman Pansare, J.
Ashok T. Gemnani - Appellant
Versus
Prashant Murlidhar Rathi - Respondent
Civil Revision Application No. 03 of 2022
Decided On : 26-10-2023

Advocates appeared:
R.M.Bhangde, Advocate, A.G.Baheti, Advocate, J.J.Chandurkar, Advocate

Increase in rent under the Maharashtra Rent Control Act is not automatic but requires a formal demand by the landlord; failure to do so prior to suit renders the claim unmaintainable.

Headnote:(A) Maharashtra Rent Control Act, 1999 - Section 15 - Code of Civil Procedure, 1908 - Order 7 Rule 11 - Tenants filed for dismissal of suit under Section 15 of the Act for non-payment of permitted increase, but had not received notice for arrears prior to notice dated 26/08/2020, therefore, suit deemed unmaintainable. Tenants had paid rent consistently until then, showing willingness to continue payments post-notice. The learned Civil Judge erred in rejecting the application without considering that permissible increase was not automatic but demand-based. (Paras 3, 15, 49-56, 70)

Facts of the case:
Landlords sought possession of shops occupied by tenants since before 2000, alleging non-payment of rent including permissible increases. Tenants contested, asserting regular payment until the notice was served.

Findings of Court:
The court found the plaint filed by landlords was barred under Order 7 Rule 11 due to lack of a valid demand for permissible increase prior to the court’s notice.

Issues: Whether the suit for possession was sustainable given prior rent was consistently paid and the late demand for permissible increase.

Ratio Decidendi: The court emphasized that any increase in rent is not automatic but requires a formal demand, validating the tenants' position as compliant until notified otherwise.

Result: The revision applications were allowed, orders of the Civil Judge were quashed, and the plaintiffs' plaints were rejected under Order 7 Rule 11.

Table of Content
1. admissibility of cases for final hearing. (Para 1 , 2)
2. details regarding rent history of tenants. (Para 3 , 4 , 30 , 31)
3. court's responsibility under the rent control act. (Para 10 , 57)
4. permitted rent increase requires prior demand by landlord. (Para 34 , 67)

JUDGMENT/ORDER

1. Heard. Admit. By consent of the learned Counsel for both the sides, the matters are taken up for final hearing at the admission stage.

2. Since the facts in all Revisions are similar, these Revisions are decided by common Judgment. For convenience, the learned Counsels chose to refer to the facts of Civil Revision Application No. 3/2022.

3. The Applicants herein are the tenants of the Non-applicants/ landlords. The parties will be hereinafter referred to as tenants and landlords respectively. The landlords have filed suit for possession under Sec. 15 of the Maharashtra Rent Control Act, 1999 (hereinafter referred to as 'the Act of 1999'). The case of the landlords is that, the tenants are occupying suit shops since prior to 2000. Their relationship as landlord and tenant is governed by the provisions of the Act of 1999 with effect from 1/4/2000. The tenants are liable to pay rent and permitted increase at the rate of 4% per annum on rent of 250/- per month for the period from 1/4/2000 till 31/12/2020 along? with interest at the rate of 15% per annum on the arrears of rent which includes the permitted increase in terms of Sec. 7(14) read with Sec. 11 of the Act of 1999.

4. The tenants have filed application (Exhibit-9) for dismissal of suit on the ground that the suit cannot lie against them. The learned Civil Judge Senior Division, Amravati vide order dtd. 17/12/2021 has rejected the application mainly on the ground that landlords had issued notice to the tenants demanding payment of rent and permitted increase and that the tenants have to meet the demand within 90 days of the receipt of notice in terms of Sec. 15(2) of the Act of 1999 and further that the tenants failed to pay the arrears of rent/permitted increase for the period from 1/4/2000 till 31/8/2020, despite receiving the notice.

5. Being aggrieved by the rejection of application (Exhibit-9), the tenants have approached this Court under Sec. 115 of the Code of Civil Procedure, 1908 (In short, 'the Code').

6. During the course of argument, the question arose whether the application filed by the tenants is an application under Order 7 Rule 11 of the Code or is application simplicitor for dismissal of suit.

7. Mr. R. M. Bhangde, learned Counsel for the tenants submits that though the application is titled "Application for dismissal of suit", the averments made therein coupled with the prayer would show that the plea put-forth by the tenants is that the suit is barred by law, and therefore, is not maintainable in terms of Sec. 15 of the Act of 1999. He submits that it is well settled that the title of the application and further the absence of provisions, viz - Order 7 Rule 11 of the Code in the application, by itself will not change the substance of the application. It is the substance and not the form which has to be seen.

8. Mr. J. J. Chandurkar, learned Counsel for the landlords submits that though the nomenclature of an application may not be material and the substance is to be seen, but then the parties are duty-bound to refer to the appropriate provision and further to disclose the purpose of filing the application. In that sense, if one reads the application filed by the tenants, the purpose of filing application is dismissal of suit and not the rejection of plaint.

9. Mr. Chandurkar, has placed reliance upon the case of Jeet Mohinder Singh V/s Harminder Singh and Another, (2004) 6 Supreme Court Cases 26. wherein the Supreme Court held in paragraph Nos. 6 to 8 as under :

    "6. Though the nomenclature of an application is really not material and the substance is to be seen, yet it cannot be said that a party shall be permitted to indicate any provision and thereafter co

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