1970 Supreme(Del) 215
High Court Of Delhi
SUDERSHAN LAL WADHAWAN - Appellant
Versus
DEVI DAS - Respondent
SECOND APPEAL 155 of 1970
Decided On : 09/25/1970
H.S.Dhir, S.P.Mahajan
The Rent Controller's discretion under Section 15(7) of the Rent Control Act is not uncanalised and must be exercised judicially and in accordance with law.
Headnote:
RENT CONTROL ACT - SECTION 15 (2) AND 15 (7) - DEFAULT IN PAYMENT OF RENT - DISCRETION OF RENT CONTROLLER TO STRIKE OUT DEFENCE - EXERCISE OF DISCRETION - JUDICIAL AND NOT WHIMSICAL - EXPLANATION FOR DEFAULT NECESSARY - CONTUMACIOUS DEFAULT - STRIKE OUT OF DEFENCE JUSTIFIED.
Fact of the Case:
Tenant defaulted in paying rent for 23 months from August 1966 to December 1968 and again from January 1969 to April 1969. Rent Controller refused to strike out the tenant's defense under Section 15(7) of the Rent Control Act, despite the tenant's repeated defaults. The Rent Control Tribunal reversed the Rent Controller's decision and struck out the tenant's defense.
Finding of the Court:
The court held that the Rent Controller's discretion under Section 15(7) is not uncanalised and must be exercised judicially and in accordance with law. The court found that the tenant had not provided any reasonable explanation for his default in paying rent and that the Rent Control Tribunal was justified in striking out the tenant's defense.
Issues: Whether the Rent Controller's discretion under Section 15(7) of the Rent Control Act is uncanalised and can be exercised whimsically.
Ratio Decidendi: The court held that the Rent Controller's discretion under Section 15(7) is not uncanalised and must be exercised judicially and in accordance with law. The court found that the tenant had not provided any reasonable explanation for his default in paying rent and that the Rent Control Tribunal was justified in striking out the tenant's defense.
Final Decision: The court dismissed the tenant's appeal and upheld the Rent Control Tribunal's decision to strike out the tenant's defense.
( 1 ) [respondent had sued the appellant for eviction on various grounds on 10. 6. 1964. Rent Controller on 27. 1. 66 passed an order U/s 15 (2) that arrears of rent should be deposited within a month and monthly rent by the 15th of following month. Rent was deposited in time upto July, 1966. then monthly rent was not deposited from 1. 8. 65 to 30. 8. 68 for 23 months. In July, 68 rent was deposited from August, 66 to December, 68. Again there was no deposit from January, 69 to April, 69. On 19. 5. 69, landlord applied for striking out of defence of appellant and appellant deposited rent from January, 69 to June, 69 on 21. 5. 69. Rent Controller held that as tenant had deposited all the rent due though late, his defense should not be struck out. In appeal the Tribunal held that there was no justification for not depositing monthly rent in time and accepted the appeal. Tenant appealed to the High Court. It was dismissed. ] Para 5 of the Judgement is :-
( 2 ) MR. Mahajan, the learned counsel for the respondent, contended that there was no justification at all for the tenant to have defaulted in making payment of the rent month to month for the period from August, 1 966 to 31-7-68 and then from January to April, 1969. He submits that though section 15 (7) is discretionary in the sense that it is not incumbent on the Rent Controller to pass an order striking out the defence of tenant if there is a default by a tenant in the payment of rent as directed by section 15 (2) of the Act the same is not an uncanalised discretion as the discretion has to be exercised judicially and in accordance with law and not whimsically. It is his contention that no reasons were advanced and no explanation has been given as to why the appellant defaulted in the payment of rent month to month for all this period. His contention is that the only ground on which the trial court refused to pass an order striking out the defence was that the tenant had paid the rent later on. According to the learned counsel the Act does not contemplate that the tenant can with impunity go on making default and not comply with the directions given under section 15 (2) of the Act, but later on when an application is moved for striking out his defence, plea that no order should be passed against him only on the ground that he has deposited the rent. According to the learned counsel such a plea will make the provision of section 15 (7) of the Act completely nugatory because it would be a very rare case where a tenant would not pay up his rent when an application is moved. He submits that something more than mere deposit is necessary to be proved by the tenant before discretion can be exercised in his favour by not striking out his defence. In my view the submission of the learned counsel for the respondent is correct and the tenant in order to persuade the Rent Controller not to pass an order striking out his defence under section 15 (7) of the Act must give some reasonable explanation indicating why he did not comply with the order passed by the Rent Controller. He cannot be allowed to disregard the directions given with impunity and hope to avoid the legal consequence of section 15 (7) of the Act merely by paying and depositing the amount when action is sought to be taken against him under section 15 (7 ). A clear direction was made by the Rent Controller by his order dated 27-1-66. The appellant was directed to pay rent for month to month in future. He defaulted every time in not depositing the rent month to month from 1-8 66 to 30-6-68 and again from January to April, 1969. Even during the course of the arguments before me no explanation was forthcoming as to what reason was there for his default. In such circumstances it seems to me that the Rent Control Tribunal was justified in holding that the discretion exercised by the Rent Controller was perverse and cannot be upheld. If the tenant refused to comply with the order, the court would be justified in strik