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IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K. NARENDRAN, A. BADHARUDEEN, JJ.
Girindra Global Hospitality, Represented by Its Managing Partner Dheeraj Through by His Power of Attorney Holder Franco Thomas, Thrissur & Ors. - Petitioners
Versus
Manappuram Hotels (P) Ltd., Represented By Its Director and Authorised Signatory, Marghasahayam V. Srinivasan & Ors. - Respondents
O.P.(RC) No. 153 of 2022
Decided On : 22-08-2022
Constitution of India, 1950 - Article 227 - Kerala Buildings (Lease and Rent Control) Act, 1965 - Section 11(2)(b) - Arbitration and Conciliation Act, 1996 - Section 8, 12(1) and (2) - Arbitration - Seeking an order directing Rent Control - Court directed all Rent Control Courts/Appellate Authorities in the State to ensure time bound disposal of the applications filed under Section 12 of the Act, in pending Rent Control Petitions/Rent Control Appeals. Registrar (District Judiciary) was directed to communicate a soft copy of the judgment to all Rent Control Courts/Appellate Authorities in State, without any delay. (Para 14)
Finding of the Court :
Petitioners-tenants are not entitled for an order directing the Rent Control Court to keep in abeyance consideration of Ext.P2 interlocutory application, i.e., I.A. in R.C.P. filed by respondents-landlords under Section 12 of Act pending consideration of I.A. filed invoking the provisions under Section 8 of Arbitration and Conciliation Act or I.A. seeking an order for appointing an Advocate Commissioner along with an expert in Civil Engineering for submitting a report after measuring the area occupied by the tenant.
Results : Original petition dismissed.
Key Points: - The petitioners-tenant-contest the applicability of arbitration under Section 8 of the Arbitration and Conciliation Act to Rent Control proceedings; the court examines the propriety of referring disputes to arbitration in such context. (!) (!) - Section 12 of the Kerala Rent Control Act requires tenants to pay or deposit arrears to contest eviction; the court discusses the consequences of non-deposit and the time frames for deposit. (!) (!) (!) - The court holds that the Rent Control Court need not suspend consideration of Section 12 applications pending resolution of arbitration or appointment of an Advocate Commissioner; the petition is dismissed, and directions for expeditious disposal are provided. (!) (!) - The case emphasizes time-bound disposal and communication of judgments to Rent Control Courts/Appellate Authorities statewide. (!) - The court clarifies that disputes over plinth area and arrears are to be resolved within the statutory framework, with emphasis on estoppel regarding previously accepted lease terms. (!)
JUDGMENT :
Anil K. Narendran, J.
The petitioners are the respondents-tenants in R.C.P.No.83 of 2021 on the file of the Rent Control Court (Ist Additional Munsiff), Thrissur, a petition filed by the respondents herein-landlords under Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965, seeking eviction of the tenants from the petition schedule building, on the ground of arrears of rent. The petitioners have filed this original petition, invoking the supervisory jurisdiction of this Court under Article 227 of the Constitution of India, seeking an order directing the Rent Control Court to dispose of Exts.P6 and P8 interlocutory applications, i.e., I.A.No.8 of 2022 and I.A.No.9 of 2022 in R.C.P.No.83 of 2021, within a time frame to be fixed by this Court, and to direct the Rent Control Court to keep in abeyance the consideration of Ext.P2 interlocutory application, i.e., I.A.No.3 of 2022 in R.C.P.No.83 of 2021 filed by the respondents-landlords under Section 12 of the Act seeking an order directing the tenants to remit the arrears of rent amounting to Rs.1,17,60,000/- with 6% interest from their respective dates of default, within a period of four weeks from the date of order and in case of default, to stop further proceedings in R.C.P.No.83 of 2021 under Section 12(3) of the Act. I.A.No.8 of 2022 is one filed by the tenants seeking an order to refer the parties to resolve the dispute by way of arbitration, in view of Article XXII of the registered lease deed dated 26.09.2018 (Ext.P9), which is serial No.1 in the list of documents in R.C.P.No.83 of 2021. I.A.No.8 of 2022 is filed invoking the provisions under Section 8 of the Arbitration and Conciliation Act, 1996. In I.A.No.9 of 2022, the tenants are seeking an order for appointing an Advocate Commissioner along with an expert in Civil Engineering for submitting a report after measuring the area occupied by the tenant and for ascertaining the facilities provided by the tenant in the tenanted premises. According to the tenants, the monthly rent, other charges and statutory dues have been arrived at in Ext.P9 registered lease deed, as stated in paragraph 4 of the Rent Control Petition (Ext.P1), on an assumption that the tenanted premises is having a plinth area of 32,000 sq.mtr.
2. Heard the learned counsel for the petitioners-tenants and also the learned counsel for the respondents-landlords.
3. The learned counsel for the petitioners-tenants would contend that the consideration of I.A.No.3 of 2022 in R.C.P.No.83 of 2021 has to be deferred till orders are passed by the Rent Control Court in I.A.No.8 of 2022 seeking an order to refer the parties to arbitration, which is one filed invoking the provisions under Section 8 of the Arbitration and Conciliation Act, and also I.A.No.9 of 2022 filed by the tenants seeking an order to depute an Advocate Commissioner along with an expert Civil Engineer for submitting a report after measuring the area occupied by the tenant and also the facilities provided by the tenant, in the tenanted premises. Before passing any orders on the aforesaid interlocutory application, the tenant cannot be directed to pay the monthly rent agreed in Ext.P9 registered lease deed, by an order of the Rent Control Court under Section 12(1) and (2) of the Act.
4. Per contra, the learned counsel for the respondents-landlords would contend that the attempt of the tenants in filing I.A.Nos.8 and 9 of 2022 is only to drag the eviction proceedings in R.C.P.No.83 of 2021 and also consideration of I.A.No.3 of 2022 filed by the landlords under Section 12 of the Act seeking an order directing the tenants to deposit the arrears of rent amounting to more than Rs.1,00,00,000/-. The dispute raised in a Rent Control Petition filed under the provisions of Section 11 of the Act is not an arbitrable dispute within the purview of the provisions under the Arbitration and Conciliation Act and as such, the provisions under Section 8 of the said Act have no application.
5.
Point of Law : Eviction or tenancy matters governed by special Statutes and where the tenant enjoys statutory protection, only the specified Court has been conferred jurisdiction.
In exercise of the supervisory jurisdiction under Article 227 of the Constitution of India.
Arrears of rent - In order to contest an application for eviction before the Rent Control Court or to prefer an appeal under Section 18 of the Act against any order made on such application, such a t....
When Section 8(1) of the Act is not in Statute book, as it was declared ultra vires, a tenant is entitled to contend that the landlord is not entitled to retain the advance in excess of one month's r....
Point of law: Power of superintendence conferred upon the High Court under Article 227 of the Constitution of India over all courts and Tribunals throughout the territory of the State is both of admi....
Even assuming that for purpose of execution an order under Section 12(3) of Act can be equated with and treated as same, as one under Section 11 of Act, the consequence enjoined by an order under Sec....
Tenants must deposit admitted rent during eviction proceedings under crisis; failure leads to automatic eviction unless sufficient cause is shown.
Court cannot sit in appeal over the findings recorded by the lower court or tribunal and the jurisdiction of this Court is only supervisory in nature and not that of an appellate court.
Point of Law : Only thing is that the opportunity to be afforded to the tenant to show sufficient cause with respect to the failure to pay or deposit rent, as directed in Section 12(1) and (2), withi....
Point of Law - Power to do justice between the parties and to dispose of a Rent Control Petition in accordance with law, would certainly confer certain inherent powers on the Rent Control Court.
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