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2007 Supreme(Cal) 54

High Court Of Calcutta
Before Pratap Kumar Ray, J.
SHARMA KAPOOR AND CO. - Appellant
Versus
DAMAYANTI MISHRA - Respondent
C. A. N.  2437  Of  2006
Decided On : 02/02/2007

Advocates Appeared:
ASISH SANYAL, PRADEEP KUMAR JEWRAJKA, REEMA BHATTACHARYA, SABYASACHI BHATTACHARYA, SARVESH CHANDRA SHRIVASTAVA

A tenant who has suffered an eviction decree is liable to pay compensation to the landlord for the delay in execution of the decree, and the compensation should be equivalent to the market rent.

Headnote:

STAY OF EVICTION DECREE - COMPENSATION FOR DELAY - MARKET RENT - SECOND APPEAL - RATIO DECIDENDI

Fact of the Case:

Tenant suffered eviction decree from first appellate court and filed second appeal. Tenant applied for stay of execution of decree. Landlord opposed stay application, claiming that tenant should pay market rent as compensation for delay in execution of decree.

Finding of the Court:

1. Stay of execution of eviction decree can be granted on condition of payment of compensation to landlord. 2. Compensation should be equivalent to market rent. 3. Ratio decidendi of Supreme Court judgments in Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd., Anderson Wright and Co. v. Amar Nath Roy, and Achal Misra v. Rama Shanker Singh is applicable to the present case.

Issues: 1. Whether stay of execution of eviction decree can be granted without condition of payment of compensation to landlord. 2. Whether compensation should be equivalent to market rent. 3. Whether ratio decidendi of Supreme Court judgments in Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd., Anderson Wright and Co. v. Amar Nath Roy, and Achal Misra v. Rama Shanker Singh is applicable to the present case.

Ratio Decidendi: 1. Once a tenant suffers an eviction decree, his status as a statutory tenant changes, and he cannot enjoy any right as a statutory tenant. 2. While passing an order of stay under Order XLI Rule 5 of the Code of Civil Procedure, 1908, the appellate Court has jurisdiction to put the applicant on such reasonable terms as would reasonably compensate the decree-holder for loss occasioned by delay in execution of decree by the grant of stay order, in the event of the appeal being dismissed. 3. The landlord is not bound by the contractual rate of rent which was prevalent prior to the date of decree.

Final Decision: Stay of execution of eviction decree granted on condition of payment of compensation to landlord at the rate of Rs. 40/- per sq. ft. per month, with effect from the date of passing of the judgment and decree of the first Appellate Court.

( 1 ) HEARD the learned Advocates appearing for the parties.

( 2 ) THE slay application, being CAN. 2437 of 2006, has been assigned before this Bench by the Hon'ble the Chief Justice by His Lordship's order dated 6th June, 2006. The stay application has been preferred by the appellant/ tenant, a partnership firm as it appears from the cause title of the Memorandum of Appeal, who has suffered judgement and decree from the first appellate court reversing the judgement and decree of the trial Court. It is an admitted fact that the tenant for a longer period of more than 40 years is occupying an area of more or less 500 Sq. ft. at a rental of Rs. 55/- per month. There is no doubt about the locational and topographical condition of the area that it is in centrally located business place at Howrah within the Howrah Municipal corporation and nearby of that there is an air conditioned market. In opposing the stay application, the landlord has filed affidavit-in-opposition as well as supplementary Affidavit disclosing the prevalent rental rate of that area. In the supplementary Affidavit affirmed on 6th June, 2006 a document has been annexed issued by the Corporation Bank wherefrom it appears that the area which is adjacent to suit premises, the rental has been fixed to the extent of rs. 12,000/- per month for an area of 150 sq. ft.

( 3 ) LEARNED Advocate appearing for the appellant submits with reference to the stay application that as there is merit in the second appeal, this Court may allow this stay application without imposing any condition of payment of rental at the market rate by applying the judicial views to this effect by the Apex Court passed in the case of Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd. reported in (2005)1 SCC 705 ; the judgement passed in the case of Anderson Wright and Co. v. Amar Nath Roy reported in AIR 2005 SC 2457 : (2005)2 WBLR (SC) 230 and the judgement passed in the case of Achal Misra v. Rama Shanker Singh and Ors. reported in (2005) 5 SCC 531 on the ground that those judgements are distinguishable as in those cases the concerned areas are in posh areas. However, learned senior Counsel appearing for the appellant has not disputed the legal principle that once a tenant suffered a decree of eviction, his status is being changed from the status as was being enjoyed earlier under the statutory provision during pendency of the litigation. The Apex Court also dealt with that aspect and held that suffering of eviction decree by a tenant practically changes its entire nomenclature of his status so far as tenancy right is concerned and he cannot enjoy any right as statutory tenant, a right which was available to him during the litigation period after service of notice of eviction which is a condition precedent for filing a suit for eviction. That view is discussed in detail in the atma Ram Properties (P) Ltd. (supra ). It is the views of the Apex Court, as it appears from the aforesaid three judgements, that while passing any order of stay exercising the power under Order 41 Rule 5 of the Code of Civil Procedure, 1908 by the appellate Court, it is the discretion of the appellate Court to pass an appropriate order by fixing the reasonable terms as would be reasonable to compensate the decree holder due to the delay in execution of the decree. For passing such stay order, Order XLI Rule 5 also speaks of the fact that mere filing of the appeal simplicitor could not operate the stay of the proceeding under decree or order appealed against unless the appellate Court passes an order on sufficient cause about stay of the execution of such decree. The language of Order XLI Rule 5 which is required to be considered and interpreted reads such.

" 5. Stay by Appellate Court.- (1) An appeal shall not operate as a stay of proceedings under a decree or order appealed from except so far as the Appellate Court may order, nor shall execution of a decree be stayed by reason only of an appeal having been preferred














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