IN THE HIGH COURT OF KERALA AT ERNAKULAM
Anil K. Narendran, G. Girish, JJ.
Devassy – Petitioner
Versus
Augustine – Respondent
R.C. Rev. No. 186 of 2020
Decided On : 05-02-2024
(A) Kerala Buildings (Lease and Rent Control) Act, 1965 - Section 11(2)(b) - Tenant's claim of loan adjustment against rent - The tenant's assertion of having paid Rs.75,000/- as a loan to the landlord was rejected due to lack of convincing evidence, and the court upheld the eviction order based on arrears of rent. (Paras 7, 8, 9, 10)
(B) Legal Principle - The court reiterated that once Section 8(1) of the Act was declared ultra vires, tenants cannot challenge landlords retaining advances exceeding one month's rent. (Paras 7, 8)
Facts of the case:
The tenant contested the landlord's claim for eviction based on alleged rent arrears, asserting a loan adjustment, which was found unsubstantiated by the appellate authority.
Findings of Court:
The appellate authority's decision to reverse the Rent Control Court's order was upheld, confirming the tenant's failure to prove the loan claim.
Issues: The main issue was whether the tenant's claim of loan adjustment against rent was legally sustainable.
Ratio Decidendi: The court ruled that the tenant's claim lacked sufficient evidence and reaffirmed that the landlord's right to retain excess advance payments was upheld post the declaration of Section 8(1) as ultra vires.
Result: Petition dismissed with conditions for the tenant to vacate.
ORDER :
1. The revision petitioner is the tenant/respondent in R.C.P. No. 23 of 2012 of the Rent Control Court, Thrissur who successfully resisted the petition filed by the petitioner/landlord for eviction under Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965 (for short ‘the Act’) before the said court. However, Rent Control Appellate Authority, Thrissur reversed the order of the Rent Control Court in R.C.A. No. 72 of 2014 and directed the revision petitioner to hand over vacant possession of the petition schedule building to the landlord on the ground of arrears of rent envisaged under Section 11(2)(b) of the said Act.
2. The landlord-tenant relationship between the revision petitioner and the respondent was not in dispute. However, the revision petitioner had contested the rate of rent which the landlord claimed as Rs.3,294/- per month from 04.07.2008 onwards, and stated that it was actually Rs.1,594/- per month from 06.10.2006 onwards. The fact that the revision petitioner did not pay rent to the respondent from the year 2010 onwards is admitted by him. However, it was contended by the revision petitioner that the respondent had availed a loan of Rs.75,000/- from him on 29.01.2011, and that there was an understanding between them that interest will be paid for the excess amount after calculating and adjusting the arrears of rent due to the respondent from the revision petitioner. With the above rival contentions, the parties had undergone the trial before the Rent Control Court, in which the respondent/landlord was examined as PW1 and four documents were marked as Exts.A1 to A4. The revision petitioner tendered oral evidence as RW1 and brought on record four documents which were marked as Exts.B1 to B4. The Rent Control Court, after evaluating the evidence in the above regard and hearing both sides, held that there was no arrears of rent due from the revision petitioner in view of the payment of Rs.75,000/- made by him to the respondent/landlord as evidenced by Ext.B2 receipt. Accordingly, the prayer for eviction was disallowed.
3. In the appeal preferred by the respondent/landlord as R.C.A. No. 72 of 2014, the Rent Control Appellate Authority, as per the judgment dated 24.08.2020 held that the contention of the revision petitioner about the payment of a huge amount of Rs.75,000/- to the respondent/landlord was not at all believable and probable, and accordingly reversed the order of the Rent Control Court. It is aggrieved by the above verdict of the Rent Control Appellate Authority, that the petitioner is here with this revision.
4. Heard the learned counsel for the revision petitioner.
5. The point to be decided is whether there is any scope of interference with the impugned judgment of the Rent Control Appellate Authority, Thrissur directing the revision petitioner to hand over vacant possession of the petition schedule building to the respondent/landlord on the ground of arrears of rent.
6. The respondent/landlord has strongly disputed the case of the revision petitioner/tenant about the payment of Rs.75,000/- to him. Notwithstanding the question regarding the availability of evidence regarding such payment, the core issue to be resolved in this revision is whether the contention of the tenant about his entitlement to have the bulk payment made to the landlord adjusted with the arrears of rent due to the landlord, is legally sustainable or not.
7. After the landmark decisions in Issac Ninan v. State of Kerala, 1995 (2) KLT 848 and Edger Ferus v. Abraham Ittycheria, 2004 (1) KLT 767 Section 8(1) of the Kerala Buildings (Lease and Rent Control) Act, 1965, is not in the statute book, as it was declared ultra vires. The inevitable consequence which emerged is that the retention of advance in excess of one month’s rent or security deposit by the landlord, could not be challenged by the tenant. Therefore, the contention of the tenant-revision petitioner that the amount of Rs.75,000/- which he claims to ha
The court upheld the eviction order based on arrears of rent, rejecting the tenant's unsubstantiated claim of loan adjustment against rent.
A tenant's right to contest an eviction is conditional on timely rent payment as mandated by the Rent Control Act.
A tenant's failure to deposit admitted rent arrears under the Rent Control Act justifies eviction proceedings.
The court reinforces that procedural adherence in eviction orders is crucial, allowing only specified circumstances for tenant defenses.
The tenant must substantiate claims of rent payment; an appeal under Section 18 from an order under Section 12(3) is maintainable.
Failure to pay arrears results in striking off defense under rental control laws.
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....
The court emphasized the admissibility of documents, determination of arrears of rent, and the appellate authority's power to modify orders under the Act, highlighting the importance of complying wit....
An order mandating tenants to deposit rent arrears under Section 12 of the Act is not appealable under Section 18.
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