PATNA HIGH COURT
S.S.Sandhawalia, Lalit Mohan Sharma and S.K.Choudhuri JJ.
Gulab Chand Prasad
Versus
Budhwanti
Appellate Decree No. 51 of 1982 ;
Decided On : MAY 22, 1985
BIHAR BUILDINGS (LEASE, RENT AND EVICTION) CONTROL ACT, 1947 - Ss. 4, 5, 8, 11A - Excess rent paid by tenant to landlord due to mutual (though illegal) enhancement of rent - Whether automatically adjusted against all subsequent defaults in payment of monthly rent.
Fact of the Case:
The plaintiff-landlord brought a suit for eviction of the defendant-tenants on the grounds of default in payment of rent and personal necessity. The tenants admitted that the rent had been illegally enhanced from Rs. 16/- to Rs. 60/- over a period of 11 years, but claimed that the excess rent paid was to be refunded or adjusted towards future rent due. The trial court decreed the suit, holding that the tenants were defaulters and that the disputed premises were required by the landlord for his personal use. On appeal, the lower appellate court reversed the trial court's finding on the ground that the illegal enhancement of rent made the tenants not defaulters and also reversed the finding on personal necessity.
Finding of the Court:
The High Court held that the excess rent paid by the tenants due to the mutual illegal enhancement of rent did not get automatically adjusted against all the subsequent defaults in the payment of the monthly rent under the Act. The court also held that the lower appellate court erred in reversing the trial court's finding on personal necessity, as the landlord had established a genuine need for the premises to employ two of his family members in business.
Issues: 1. Whether the excess rent paid by the tenant to his landlord, consequent upon a mutual (though illegal) enhancement of rent would be automatically adjusted against all subsequent defaults in payment of monthly rent for purposes of Ss.4, 5 and 11 of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947? 2. Whether the lower appellate court erred in reversing the trial court's finding on personal necessity?
Ratio Decidendi: 1. The court held that the excess rent paid by the tenants due to the mutual illegal enhancement of rent did not get automatically adjusted against all the subsequent defaults in the payment of the monthly rent under the Act. The court reasoned that S.4 of the Act, which prohibits the illegal enhancement of rent, does not provide for any automatic adjustment of the excess rent paid. The court also held that sub-secs.(2) and (3) of S.8 of the Act, which provide for a right of refund or express apportionment of excess rent, do not envisage any automatic adjustment of the excess rent. The court further held that the provisions of S.11A of the Act, which deal with the deposit of rent by tenants in suits for ejectment, do not provide for any automatic adjustment of the excess rent. 2. The court held that the lower appellate court erred in reversing the trial court's finding on personal necessity. The court reasoned that the landlord had established a genuine need for the premises to employ two of his family members in business and that the lower appellate court's finding that the landlord's need was merely a desire was not supported by the evidence.
Final Decision: The appeal was allowed, the judgment and decree of the lower appellate court were set aside, and the judgment and decree of the trial court decreeing the suit of the plaintiff were restored.
S.S.SANDHAWALIA, J.
1. Whether the excess rent paid by the tenant to his landlord, consequent upon a mutual (though illegal) enhancement of rent would be automatically adjusted against all subsequent defaults in payment of monthly rent for purposes of Ss.4, 5 and 11 of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947, is the significant question which necessitates this reference to the Full Bench. Equally at issue is the correctness of the view in the unreported Division Bench judgment of Ramjit Singh V/s. Shanti Devi, Second Appeal No. 257 of 1977 decided on 16th August, 1979.
2. The plaintiff had brought the suit for eviction, inter alia, on the grounds of default in the payment of rent and personal necessity and had claimed a sum of Rs. 540.00 as arrears of rent. The case set up on his behalf was that his brother Babu Lal was earlier the karta and manager of the joint Hindu family governed by the Mitakshara School of Hindu Law and the disputed premises belonged to the plaintiff, which were leased to the tenants, who carried on business in the name and style of Punjab Dental and Optical Works, at a monthly rent of Rs. 60/-. According to the plaintiff-appellant rent had been paid up to Oct. 1973 against receipts granted to them. But on the 14th Nov. 1973 Babu Lal, the karta of the family, died and the plaintiff Gulab Chand became the karta in his place. According to the plaintiff-appellant, tenancy was according to the English calendar month and the tenants had defaulted in the payment of rents since the month of Nov. 1973. Further the claim for eviction was rested on the ground of personal necessity for expanding business in the interest of the younger members of the joint family.
3. The suit was seriously contested on behalf of the respondent-tenants who, however, admitted that the premises belonged to Babu Lal and were originally let out to Dr. Ramchandar Prasad, the husband of respondent No. 1 and the father of respondent No. 2, on a monthly rental of Rs. 16/- only. According to the respondents, the aforesaid rent was paid till 1943 and thereafter it was illegally raised to Rs. 20.00 per month and again enhanced to Rs. 25/- in 1946 and further raised to Rs. 30.00 in 1947 and then to Rs. 32/- in 1961 and again to Rs. 35/- in 1963 and to Rs. 40.00 in 1967 and then to Rs. 50.00 in 1970 and finally to Rs. 60.00 in 1971 and all these enhancements were illegal and under threat of eviction and the respondents were coerced to pay at the aforesaid various enhanced rates of rent. It was the stand that the alleged excess amounts paid were to be refunded or adjusted towards future rent due and consequently there was no default in the payment thereof.
4. The respondent-tenants also took up the plea that after the death of Babu Lal, the original landlord, they had approached the legal heir to know as to whom the rent was to be paid and they were informed to do so to Shri Ram Prakash Gupta, the eldest son of Babu Lal to whom allegedly the rent was remitted thereafter by money order since the month of Nov. 1973 which was, however, refused by him. Lastly, the claim of personal necessity was disputed on the ground that the premises in their possession were very small as compared to those in possession of the landlords and further that the disputed premises were the only source of livelihood for their family as they have no property in the town of Gaya as they were refugees from West Pakistan.
5. The trial Court framed as many as 9 issues and on a consideration of the evidence and an exhaustive appraisal thereof and the contentions raised came to the conclusion that the plaintiff-appellant was the landlord and the defendants-tenants had defaulted in payment of rent and further that the disputed premises were required by the plaintiff-appellant for his personal use. On these findings, the suit was decreed.
6. On appeal, the learned Subordinate Judge, Gaya, held that the enhancement of rent from Rs. 16/- originally fix
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