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1995 Supreme(All) 1013

High Court Of Allahabad
R.A. Sharma, I.M. Quddusi, JJ.
Mahesh Chand Sharma
Vs.
Second Addl. D.J. Meerut
Decided on: 28th September, 1995

The term 'arrears of rent' in Section 20(4) of the UP Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 includes decreed arrears of rent.

Headnote:

UP URBAN BUILDINGS (REGULATION OF LETTING, RENT AND EVICTION) ACT, 1972 - SECTION 20(4) - ARREARS OF RENT - DECREED ARREARS - INTERPRETATION - TENANT'S LIABILITY.

Fact of the Case:

A tenant failed to pay rent for four months and did not pay the arrears within one month of receiving a notice of demand. The landlord filed a suit for eviction, and the tenant claimed the benefit of Section 20(4) of the UP Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, by depositing the rent and damages. The landlord argued that the tenant was required to deposit the arrears of rent decreed in an earlier suit as well.

Finding of the Court:

The court held that the tenant was required to deposit the arrears of rent decreed in the earlier suit in order to get the benefit of Section 20(4) of the Act. The court interpreted the term 'arrears of rent' to include decreed arrears of rent, and held that the passing of a decree does not extinguish the debt.

Issues: Whether the tenant was required to deposit the arrears of rent decreed in an earlier suit in order to get the benefit of Section 20(4) of the Act.

Ratio Decidendi: The court relied on the plain meaning of the term 'arrears of rent' and the purpose of Section 20(4) of the Act, which is to provide relief to tenants who are in arrears of rent. The court also noted that the passing of a decree does not extinguish the debt, and that the tenant's liability to pay the rent remains in tact until the amount is paid.

Final Decision: The court held that the tenant was required to deposit the arrears of rent decreed in the earlier suit in order to get the benefit of Section 20(4) of the Act.

Judgment

R.A. Sharma, J.

1. A learned Single Judge has formulated the following question for decision by a larger Bench :

"Whether it is necessary for a tenant to deposit arrears of rent decreed in an earlier suit to get the benefit of sub-section (4) of Section 20 of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972."

This reference has been made by the learned Judge, because His Lordship was of the view that a Single Judge decision of this Court in Chhotey Lal v. Chhakki Lal, AIR 1953 All. 113, which has laid down that the words 'arrears of rent' include the decreed arrears of rent, does not lay down correct law and it requires reconsideration.

2. Landlord (respondent) filed a Suit No. 410 of 1975 for arrears of rent and ejectment of the tenant (petitioner) from the premises in dispute. This suit was decreed on 16.7.1975. In paragraph 3 of the writ petition and paragraph 4 of the counter affidavit, it has been stated that the said decree could not be executed due to the wrong particulars of the disputed property. The landlord thereafter filed another suit No. 244 of 1977 for ejectment, arrears of rent and mesne profits against the tenant. Although the tenant claimed to have deposited the amount for claiming the benefit under Section 20(4) of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as the Act), but according to the landlord he did not deposit the arrears or rent, which was decreed in the earlier suit. One of the questions which the court below was called upon to decide, was as to whether the tenant was required to deposit the arrears of rent, which were decreed in the earlier suit in order to get the benefit of sub-section (4) of Section 20 of the Act.

Sub-section (1) of Section 20 prohibits filing of the suit for eviction of a tenant from a building to which the Act is applicable. Sub-section (2) of the same section, however, permits a suit for eviction of a tenant from such a building after the determination of his tenancy on any one or more of the grounds mentioned therein. One of such grounds mentioned in clause (a) of sub-section (2) of Section 20 on the basis of which a suit for eviction of a tenant can be filed is that the tenant is in arrears of rent for not less than four months and has failed to pay the same to the landlord within one month from the date of service of notice of demand upon him. Sub-section (4) of Section 20 of the Act, which is reproduced below relieves the tenant from eviction if he unconditionally pays or tenders to landlord or deposits in Court the entire amount of rent and damages:

"20(4) In any suit for eviction on the ground mentioned in clause (a) of sub-section (2), if at the first hearing of the suit the tenant unconditionally pays or tenders to the landlord or deposits in court the entire amount of rent and damages for use and occupation of the building due from him (such damages for use and occupation being calculated at the same rate as rent) together with interest thereon at the rate of nine per cent per annum and the landlord's costs of the suit in respect thereof, after deducting therefrom any amount already deposited by the tenant under sub-section (1) of Section 30, the court may, in lieu of passing a decree for eviction on the ground, pass an order relieving the tenant against his liability for eviction on that ground: Provided that nothing in this sub-section, shall apply in relation to a tenant who or My member of whose family has built or has otherwise acquired in a vacant state, or has got vacated after acquisition, any residential building in the same city, municipality, notified area or town area.

Explanation.- For the purposes of this sub-section - (a) the expression "first hearing" means the first date for any step or proceeding mentioned in the summons served on the defendant; (b) the expression "cost of the suit" includes one-half of the amount of counsel's fee taxable, for a contested suit








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