IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
M. SATYANARAYANA MURTHY, J.
M.B. Chander & Others - Petitioners
Versus
M/s. Balakrishna Rao Charitable Trust - Respondent
Civil Revision Petition No. 2870 of 2016
Decided On : 08-09-2016
Tenancy and Land Law – Constitution of India, 1950 – Article 227 – Code of Civil Procedure, 1908 – Order XV-A – A.P. Rent Control Act – Section 11 – Order passed by Trial Court directed to deposit amount as arrears of rent by the end of April, 2015 within one month and continue to pay monthly rent on or before 1st day of every succeeding month commencing, until further orders, failing which the defence in the suit of defendants shall be struck off – Challenged – Petitioner/plaintiff filed petition to direct the respondents/defendants to deposit arrears of rent payable for the scheduled premises to credit of suit and continue to deposit monthly rent from December, 2014 onwards @ Rs.1,50,000/- per month till disposal of the suit – Alleged that the petitioner and 1st respondent entered into a lease agreement, i.e. unregistered lease deed dated 27.03.2003 for the house property – The house consists of ground, first, second floors and terrace admeasuring 11,484 Sft and the monthly rent agreed for each ground, first and second floors was Rs.15,500/- and Rs.7,750/- for terrace respectively and the total rent agreed to be paid was Rs.54,250/- per month – It was agreed by both the parties under the unregistered lease deed that the rent has to be enhanced @ 5% per annum and the term of lease was for a period of three years initially with an option of the first respondent to renew the lease for another period of two years. It is stated that, while the ground and second floors of the building was handed over on 27.03.2003, the first floor was handed over in the month of December, 2003 after evicting the then tenant (Telephone Department) as stipulated in Clause 2 (b) of the lease agreement. On 02.04.2003, the terrace was handed over to the first respondent who made a non interest bearing refundable security deposit of Rs.1,93,750/- i.e a deposit sum of Rs.1,55,000/- for the ground and second floor portions and a sum of Rs.38,750/- for terrace, but, first respondent failed to deposit Rs.75,500/- for the first floor – Held, in view of my foregoing discussions, I hold that the Court is competent to make summary enquiry under Order XV-A Rule 2 when the tenant pleaded no errors or disputed quantum of rent, decided the error of rent payable and rent payable, issue directions, postponing the same to final decision by the Court and direct to decide arrears, as required under Rule 2 and continue to deposit at the same rate during pendency of suit or proceedings before competent Court. Otherwise, it amounts to encouraging unscrupulous tenants who intent to avoid payment of rent for the premises in their occupation for decades together which would certainly result in substantial loss to the landlord during pendency of the eviction suit or proceedings based on account of abortive pleas raised by unscrupulous tenants – Petition is dismissed.
This civil revision petition under Article 227 of Constitution of India is filed challenging the order passed by the II Additional Chief Judge, City Civil Courts, Hyderabad in I.A. No. 2590 of 2014 in O.S.No.1005 of 2014, whereby, the Trial Court directed to deposit Rs.20,98,825/- as arrears of rent by the end of April, 2015 within one month and continue to pay monthly rent of Rs.99,225/- on or before 1st day of every succeeding month commencing from 01.06.2015, until further orders, failing which the defence in the suit of the defendants shall be struck off.
For convenience sake, the ranks given to the parties before the Trial Court will be adopted throughout the judgment.
The petitioner/plaintiff filed petition under Order XV-A of Code of Civil Procedure (for short C.P.C) to direct the respondents/defendants to deposit arrears of rent of Rs.26,18,200/- payable for the scheduled premises to the credit of the suit and continue to deposit monthly rent from December, 2014 onwards @ Rs.1,50,000/- per month till disposal of the suit. It is alleged that the petitioner and 1st respondent entered into a lease agreement, i.e. unregistered lease deed dated 27.03.2003 for the house property bearing No.3-6-325 situated at Hyderguda, Hyderabad. The house consists of ground, first, second floors and terrace admeasuring 11,484 Sft and the monthly rent agreed for each ground, first and second floors was Rs.15,500/- and Rs.7,750/- for the terrace respectively and the total rent agreed to be paid was Rs.54,250/- per month. It was agreed by both the parties under the unregistered lease deed that the rent has to be enhanced @ 5% per annum and the term of lease was for a period of three years initially with an option of the first respondent to renew the lease for another period of two years. It is stated that, while the ground and second floors of the building was handed over on 27.03.2003, the first floor was handed over in the month of December, 2003 after evicting the then tenant (Telephone Department) as stipulated in Clause 2 (b) of the lease agreement. On 02.04.2003, the terrace was handed over to the first respondent who made a non interest bearing refundable security deposit of Rs.1,93,750/- i.e a deposit sum of Rs.1,55,000/- for the ground and second floor portions and a sum of Rs.38,750/- for the terrace, but, the first respondent failed to deposit Rs.75,500/- for the first floor.
Though the lease was expired on 27.03.2006, the first respondent continued in occupation of the property and running educational society on month to month basis and the rent agreed to be paid was on the first day of each month. The rent was enhanced to Rs.90,000/- with effect from 01.04.2008 for the said property and it continued till 31.03.2011. Thereafter, the rent was enhanced @ 5%, it comes to Rs.94,500/- during financial year 2011-2012 and Rs.99,225/- during financial year 2012-2013 and thereafter, the rent was enhanced to Rs.1,50,000/- per month for the financial year 2013-2014. The first respondent failed to pay rent for several months and the rent arrears due as on July, 2014 was Rs.20,18,200/-, after adjusting Rs.81,800/- towards part payment made in the month of June, 2013. Despite issuing a legal notice dated 21.07.2014, demanding to vacate the schedule premises, the first respondent failed to vacate the premises and got issued a reply dated 14.10.2010 making false and untenable allegations. The arrears of rent as on the date of filing the petition was Rs.26,18,200/- after adjusting the amount paid whatever from the months of July, 2013 to November, 2014. Thus, the first respondent continued in possession and enjoyment of the property without depositing or paying the admitted arrears of rent, which is mandatory requirement under Order XV-A of C.P.C and prayed for issuing aforesaid direction against the first respondent.
The first respond
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