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1993 Supreme(Mad) 324

High Court of Judicature at Madras
THANIKKACHALAM
Shahul Hameed & Others
Versus
Rasool Bivi
C.R.P. Nos. 42 to 51 of 1986
Decided On :Decided on: 06-07-1993

Advocates Appeared:
For the Petitioners:T.R. Rajagopalan, Advocate.
For the Respondent:K.N. Basha, Advocate.

A tenant's failure to deposit arrears of rent as directed by the Rent Control Appellate Authority under S. 11(2) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, authorizes the Appellate Authority to terminate proceedings and order eviction under S. 11(4) of the Act.

Headnote:

TAMIL NADU BUILDINGS (LEASE AND RENT CONTROL) ACT, 1960 - SECTION 11(1), 11(2), 11(4) - RENT CONTROL APPELLATE AUTHORITY - STAY OF EVICTION ORDER - DEPOSIT OF ARREARS OF RENT - FAILURE TO DEPOSIT - TERMINATION OF PROCEEDINGS - DISMISSAL OF APPEALS - LEGALITY.

Fact of the Case:

Landlady filed petitions for eviction against five tenants for wilful default in payment of rent. Rent Controller ordered eviction. Tenants appealed and filed petitions for stay of eviction order. Rent Control Appellate Authority granted stay on condition of depositing arrears of rent. Tenants deposited rent till March 1984 but not for subsequent periods. Landlady filed petitions under S. 11(4) of the Act. Rent Control Appellate Authority vacated stay and dismissed appeals. Tenants challenged the orders.

Finding of the Court:

Tenants failed to deposit arrears of rent as directed by the Rent Control Appellate Authority. Rent Control Appellate Authority complied with the provisions of S. 11(2) of the Act before invoking S. 11(4). Tenants' appeals were not maintainable without depositing arrears of rent under S. 11(1) of the Act. Rent Control Appellate Authority was correct in terminating proceedings under S. 11(4) and ordering eviction.

Issues: Whether the Rent Control Appellate Authority was correct in invoking the provisions of S. 11(4) of the Act without giving sufficient time to the tenants to deposit the arrears of rent.

Ratio Decidendi: Under S. 11(1) of the Act, rent control appeals are not maintainable before depositing arrears of rent. Tenants should continue to pay rent regularly during pendency of appeal proceedings. Under S. 11(2), if a tenant fails to pay or deposit rent, the Appellate Authority shall stop proceedings and make an order directing the tenant to put the landlord in possession under S. 11(4). In this case, the tenants committed wilful default in payment of rent, failed to deposit arrears before filing appeals, and failed to deposit rent in court as directed by the Rent Control Appellate Authority. Therefore, the Rent Control Appellate Authority was correct in invoking S. 11(4) and dismissing the appeals.

Final Decision: Revision petitions dismissed with costs. Time for eviction: two months.

Judgment :-

1. The landlady filed petitions for eviction against five tenants on the ground of wilful default in payment of rent. The Rent Controller ordered eviction in the case of all the five tenants. All the five tenants preferred appeals before the Rent Control Appellate Authority. The tenants also filed Civil Miscellaneous Petitions for stay of the order of eviction passed by the Rent Controller. While admitting the appeals, the Rent Control Appellate Authority granted stay of eviction order in the Civil Miscellaneous Petitions, on condition that the tenants should deposit the arrears of rent, failing which the Rent Control Appellate Authority ordered that the stay granted snail stand vacated. According to the landlady, the tenants deposited rent upto March 1984 and they did not deposit the rent for the subsequent periods. Therefore, according to the landlady, the tenants are in arrears of rent from April 1984 till the date of filing of the petitions under S. 11(4) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, as amended by Act 23 of 1973. Thus, according to the landlady, five months rent is payable in the case of each of the tenant. The petitions filed under S. 11(4) of the Act was contested by the tenants. According to the tenants, they have paid the house tax for the petition premises and the same is adjustable towards arrears of rent. This plea was not accepted by the Rent Control Appellate Authority. Thus, invoking the provisions of S. 11(4) of the Act, the Rent Control Appellate Authority vacated the stay granted in the Civil Miscellaneous Petitions and dismissed the appeals filed by the tenants. It is against these orders, the tenants are in revision before this court. Each tenant filed two revisions. One against the order passed in the petition filed under S. 11(4) of the Act and another against the order passed in the main appeal. Thus, there are ten revisions filed before this court.

2. The learned counsel appearing for the petitioners/tenants submitted as under:— The Rent Control Appellate Authority was not correct in in-yoking the provisions of S. 11(4) of the Act. When the Rent Control Appellate Authority invoked the provisions of S. 11(4) of the Act, the Authority ought to have given sufficient time for the tenants to deposit the arrears of rent, if any. If such arrears, as directed by the Rent Control Appellate Authority was not deposited, then it is open to the Rent Control Appellate Authority to terminate proceedings, as contemplated under S. 11(4) of the Act. In the instant case, no such opportunity was given to the tenants. Therefore, the orders passed under S. 11(4) of the Act are not sustainable. It is the case of the tenants that they have paid the house tax, which the landlady failed to pay and therefore the amounts paid by way of house tax are adjustable towards the arrears of rent. If such adjustment is made, there would not be any arrears of rent payable by the tenants. In order to support her contention, the learned counsel for the petitioners relied upon the decision reported in John v. Brumgar (1985 II MLJ 357). Therefore, according to the learned counsel, since no time was granted to deposit the arrears of rent, as per the provisions of S. 11(2) of the Act, and since the tenants paid the house tax, it is adjustable towards the arrears of rent, and provisions of S. 11(4) of the Act cannot be invoked and the appeals filed before the Rent Control Appellate Authority cannot be dismissed.

3. On the other hand, the learned counsel appearing for the respondent landlady submitted as under:—

The tenants are chronic defaulters in payment of rent. They failed to pay the rent for the petition premises for the petition period. Hence petitions for eviction were filed under S. 10(2)(i) of the Act. Even before the Rent Controller, the tenants have not paid the rent. The Rent Controller, therefore ordered eviction in each of the tenants case. Aggrieved by that order, the tenants filed appeals









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