IMPORTANT POINTS
The failure to pay/ deposit the rent in arrears, will entail the liability to pay interest thereon. Thus, the terminology "all arrears of rent" used in S.12 will undoubtedly include interest on such arrears. In that view of the matter, we have no hesitation to hold that the tenants will be liable to pay or deposit the arrears of rent with interest to avoid an order under S.12 of the Act.

K. Harilal, J.

1. The petitioners herein are the tenants and they are the respondents in R.C(OP).No.2/2014 on the files of the Rent Controller/ Principal Munsiff Court, Neyyattinkara. The respondent herein is the landlady and she is the petitioner in the aforesaid R.C(OP). The landlady filed the aforesaid Original Petition under Section 11(3) of the Kerala Buildings (Lease & Rent Control) Act, 1965 (Hereinafter referred to as, 'the Act') seeking an order of eviction of the tenants herein from the petition schedule building. Subsequently, the landlady filed a petition under Section 12 of the Act, seeking an order directing the tenants to deposit the admitted arrears of rent. According to the landlady, the rent was due from 01.10.2013 @Rs.2,00,000/- for 11 months. It is also averred that the landlady and the tenants entered into a lease agreement on 07.12.2011, agreeing Rs.2,00,000/- as rent for the petition schedule shop for 11 months from 01.11.2011 and another 2 lakhs was also agreed for the subsequent 11 months, besides one lakh as the earnest money deposit for the petition schedule building. However, the landlady has received only Rs.4,00,000/- towards the rent for the period from 01.10.2011 to 01.10.2013. The rent was in arrear from 01.09.2013 till the date of filing of the petition and the total arrears of rent due from the tenants would come to Rs.5,00,000/-.

2. The tenants filed an objection denying the allegation that the rent was in arrears and the landlady is entitled to get Rs.5,00,000/- as arrears of rent from the tenants. According to the tenants, no amount was due from them as arrears of rent. That apart, the tenants had spent more than Rs.3,00,000/- for renovation of the building and the landlady is liable to adjust the said amount towards rent. Thus, there is no admitted arrears of rent. After considering the rival contentions, the court below passed the impugned order directing the tenants to deposit the rent that fell in arrears with effect from 01.09.2013 to 29.08.2017 with 6% interest till the date of realization @Rs.2,00,000/- per each completed 11 months from 01.09.2013. The aforesaid findings, whereby the court below allowed the application under Section 12 of the Act, are assailed in this OP(RC).

3. Heard the learned counsel for the tenants and the learned counsel for the landlady.

4. The sum and substance of the argument advanced by the learned counsel for the tenants is that the tenants have not admitted any amount as arrears due to the landlady in the objection to the petition, filed under Section 12 of the Act. Therefore, there is no admitted arrears falling under Section 12 of the Act. Unless the tenant himself admits, in the objection, to the petition under Section 12 of the Act or in the counter statement that any amount is due to the landlord, as arrears of rent, there cannot be any admitted arrears of rent. In short, the simple denial of the tenant would absolve him from the liability to deposit the admitted arrears under Section 12 of the Act.

5. Here arises the question, can the tenant be absolved from the liability, to deposit the admitted arrears of rent, on a blank denial by him, that no amount is due to the landlord, as arrears of rent, in his counter statement or objection to the petition filed by the landlady, under Section 12 of the Act? It stands settled by this Court that the deposit, contemplated under Section 12, is not the amount, which is found to be due from the tenant, after adjudication of the dispute between the landlord and the tenant, as to the actual amount due as arrears of rent to the landlord. It is impermissible for the Rent Control Court or the Appellate Authority, as the case may be, to have an adjudication regarding the arrears of rent, as envisaged under Section 12(1) of the Act, by conducting an enquiry. In the above context, the questions that emerge for consideration are given below:

(1) What does the expression “arrears of rent admitted by the tenant” mean