Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Draft as a Mode of Rent Payment - Not Valid: Several judgments clarify that a bank draft or demand draft is not considered a valid mode of rent payment unless explicitly agreed upon by parties. For instance, in ["AGYA RAM SOOD vs SAMEER WASON & ANR. - Delhi"], the court examined whether a draft was sent and found that the evidence on this issue, whether the draft was sent or not, was led, indicating that mere preparation or sending of a draft does not constitute valid payment unless properly encashed or accepted. Similarly, ["Shanti Bastralaya VS Arun Kedia - Gauhati"] states that payment of rent by Bank draft was not a valid discharge of the liability unless there was an express or implied agreement to that effect between the parties. The courts emphasize that payment via demand draft or bank draft without mutual consent is not legally recognized as valid tender.
Legal Precedents and Law on Payment Modes: Courts have consistently held that cash, cheque, or money order are standard modes of rent payment, and bank drafts are not automatically valid. In ["AGYA RAM SOOD vs SAMEER WASON & ANR. - Delhi"], it was observed that remittance of rent by way of Money Order and/or bank draft would amount to a valid tender only if accepted or agreed upon, which was not the case here. The judgment in ["Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355"] further clarifies that payment of rent by Bank draft was neither a valid tender nor a valid payment unless specifically agreed.
Implication for Landlord-Tenant Disputes: The courts have held that merely preparing a draft does not transfer ownership or constitute payment. As per ["AGYA RAM SOOD vs SAMEER WASON & ANR. - Delhi"], getting a bank draft prepared in the name of the landlord does not become owner of the draft, and hence, cannot be considered a valid rent tender.
Conclusion: Based on the cited judgments, Sameer Wason's assertion that a draft is not a valid mode of payment is supported by legal precedent. Courts have consistently held that without mutual agreement or proper encashment, a draft cannot substitute actual payment of rent. Therefore, transfer or encashment of the draft is necessary to establish valid payment.
References:- ["AGYA RAM SOOD vs SAMEER WASON & ANR. - Delhi"]- ["Shanti Bastralaya VS Arun Kedia - Gauhati"]- ["Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355"]- ["AGYA RAM SOOD vs SAMEER WASON & ANR. - Delhi"]
In landlord-tenant relationships, disputes over rent payment modes are common, especially when tenants use cheques, demand drafts, or bank drafts instead of cash. A frequent question arises: sameer wason judgement that draft is not a valid mode payment of rent need to trasferred actually. This refers to the pivotal Sameer Wason case and related precedents, which clarify that merely preparing a draft does not constitute valid payment—it must be accepted or transferred properly.
This blog post breaks down the legal nuances, drawing from key judgments and statutes, to help tenants and landlords understand when such instruments qualify as valid tender. Note: This is general information, not specific legal advice. Consult a lawyer for your situation.
The validity of using a draft (bank draft, demand draft, or cheque) for rent payment hinges on context, agreements, and acceptance. Generally, these can be valid if there's an explicit or implied agreement, customary practice, or legal recognition, and if honored by the landlord. However, without these, or if dishonored, they may not discharge the tenant's liability. Courts emphasize actual transfer or acceptance over mere preparation. Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355
As highlighted in the Sameer Wason matter, getting a bank draft prepared in the name of the landlord amounted to a valid tender of the rent and once a draft is got prepared in the name of somebody... does not suffice—the draft must be properly transferred. SAMEER WASON & ANR. vs RAJINDER KUMAR LAMBA
Indian courts recognize negotiable instruments like cheques and demand drafts as common for debt settlement, including rent, in modern practice. Payment by cheque was thus held a valid mode of discharging one's liability. Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355
Validity requires:- Agreement between parties to accept it. Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355- Landlord's acceptance without objection. Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355- Customary practice. Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355
In Sameer Wason & Anr. cases, evidence showed drafts were prepared but not encashed or properly sent, undermining claims of valid tender. The witness from Oriental Bank confirmed preparation, yet the appellant failed to prove delivery or acceptance. AGYA RAM SOOD vs SAMEER WASON & ANR.
If dishonored, no valid payment occurs. Payment by cheque or draft depends on the agreement or customary acceptance and that dishonoured cheques cannot be treated as valid payment. Rohit Jora VS Jamna Jakhar - 2024 0 Supreme(Raj) 1177 Similarly, if the cheque is dishonoured, the landlord cannot be deemed to have accepted payment. Ram Babu Agarwal VS Jay Kishan Das - 2009 6 Supreme 772
Secondary evidence issues arise too, as in a case where a photocopy of a draft was rejected: the document Ex. RW1/13 was a photocopy of the draft and being a secondary evidence, it could not have been admitted. Parveen Sharma (Deceased) Through His L. Rs VS Hari Singh Estate Education And Charitable Trust, Milap Chowk, Jalandhar - 2009 Supreme(P&H) 428
Sameer Wason Lineage: In eviction petitions, landlords succeeded as tenants' draft preparations didn't prove tender. The Tribunal erred in deeming preparation sufficient. SAMEER WASON & ANR. vs RAJINDER KUMAR LAMBA Relatedly, vacation of shops for bona fide needs was upheld, with no tenancy rights without actual rent payment. M/S. ROXY DRYCLEANERS vs SAMEER WASON & ANR.
Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355: Affirms drafts valid if agreed and accepted.
Rohit Jora VS Jamna Jakhar - 2024 0 Supreme(Raj) 1177: Cheque/draft valid per agreement/custom; dishonor voids it.
Mahendra Raghunathdas Gupta VS Vishvanath Bhikaji Mogul - 1997 5 Supreme 62: Sending cheque sans agreement/custom isn't valid tender if dishonored.
Other Insights: In tax contexts, payment date is encashment: In case the payment of tax has been made by a cheque or draft... the date of payment will be the date on which such cheque, draft, etc. was actually encashed. Sapco India VS State of J&K - 2019 Supreme(J&K) 42 For wilful default, encashment proves payment. C. K. R. Murugan VS T. S. Arunagiri - 1998 Supreme(Mad) 1462
Eviction under DRC Act Section 14(1)(e) prioritizes bona fide need; payment modes scrutinized similarly. Rakesh Kapoor VS Krishna Pyari (Late Smt. ) Thr Legal Heirs - 2014 Supreme(Del) 3051
Courts examine agreements, acceptance, honor status, and bona fide efforts in disputes.
In execution proceedings, failure to notify payments or settle rent leads to default attributions, even with drafts. Babulal Sharma VS Sant Kumar Bajoria - 2019 Supreme(Megh) 154
Tenants risk eviction labels if drafts aren't accepted. Landlords must clarify modes. Records of transactions are crucial, as secondary evidence may falter. Parveen Sharma (Deceased) Through His L. Rs VS Hari Singh Estate Education And Charitable Trust, Milap Chowk, Jalandhar - 2009 Supreme(P&H) 428
The Sameer Wason judgment underscores that drafts aren't valid rent payment merely by preparation—they require actual transfer, acceptance, or agreement. While convenient, rely on customs or contracts to avoid pitfalls. Always prioritize clear communication to prevent costly litigation.
Key Takeaways:- Agreement or custom is essential. Dharmendra Nath VS Jagdish Prakash - 1975 0 Supreme(All) 355- Encashment confirms payment.- Dishonor = no discharge.- Consult professionals for tailored advice.
Stay informed on evolving rent laws to safeguard your rights.
#RentPaymentLaw, #LandlordTenant, #SameerWasonCase
is prepared does not become owner of the draft. ... The learned Tribunal also laboured under a wrong notion of law when he held that getting a bank draft prepared in the name of the landlord amounted to a valid tender of the rent and once a draft is got prepared in the name of somebody ... (Main) No.266 of 2008 % 22.03.2010 SAMEER WASON & ANR. ... The landlord again filed an eviction petition on the ground of ....
C.R.Wason). Smt. ... by paying rent can claim tenancy rights and not any other person who does not exercise tenancy rights by paying/offering rent. ... VERSUS SAMEER WASON & ANR. ...... Respondents Through: Mr. P.K.Rawal and Mr. Harish Kumar, Advocates. ... Therefore, in my opinion, no illegality has been committed by the respondents/landlords by taking a shop which was got vacated; not for bonafide necessi....
Versus SAMEER WASON & ANR. ... The witness from Oriental Bank of Commerce wherefrom draft was got prepared was also examined and the evidence on this issue, whether the draft was sent or not, was led. ... The appellant knew that the pay order has not been encashed and in that circumstance, it was for him to lead necessary evidence before the Additional Rent Controller. ... It is also not the case of the petitioner that the evidence so....
The plaintiff had sent notice dated 29/10/2004 (Ext-8) demanding payment of rent by cash on the specific plea that demand draft was not the agreed mode of payment of rent. ... no scope for the defendant to pay the rent for 4 (four) months together by means of a demand draft since the same was not an accepted mode of payment. ... On 13/10/2004, although the defendant had sent a ba....
the tenanted premises was strategically situated the landlords wanted it actually for expanding their already existing hotel business. ... As the ownership and the purpose of letting were not disputed by the tenant, the said issues were decided in favour of the landlords. In relation to bona fide need, the tenant had not disputed the age and physical disability or diseases of landlord No. 2. ... It is a settled law that a tenant cannot neither suggest nor dictate the landlord as to how they should use their alternate pre....
In relation to bona fide need, the tenant had not disputed the age and physical disability or diseases of landlord no. 2. ... The learned ARC held that the landlords need not close down their business so as to accommodate themselves in the said accommodation for residential use. ... It was the case of the landlords that the tenant was inducted into the tenanted premises through a rent deed at a monthly rent of Rs.1,200/- for commercial use; that the tenanted premises was ly....
of the respondent no.2, the same stood satisfied because during the pendency of the petition one shop bearing no. 53-A was got vacated from another tenant in a petition filed by the respondents/landlords under Section 14(1)(a) of the Act for non-payment of the rent and the need of the respondent no.2 ... C.R.Wason, grandfather of the respondent no.1 and father of respondent no.2. After the death of Sh. C.R.Wason all the legal heirs executed a relinquishment deed in favour of their mother and widow of Sh....
No. 2 has accepted a bank draft of Rs. 1,10,000/- from the petitioner before this Court, I am inclined to grant anticipatory bail to the petitioner ... prosecution case, in short, is that a complaint case bearing Complaint Case 1,10,000/- and a xerox copy of agreement has been filed by the petitioner before this Court but actually ... was also fixed in favour of Govind Karmkar by rent fixation case no. 523R-81-55-56 and scene then Govind Karmkar has Govind Karmkar and not to this petitioner, moreover, the ....
JUDGEMENT IA No. 156638/2022 - EXEMPTION FROM FILING O.T. ... (KAPIL TANDON) (NIDHI WASON) COURT MASTER (SH) COURT MASTER (NSH) (Signed Non-Reportable Judgment is placed on the file.) ... Gavai, His Lordship Digitally signed by Indu Marwah Date: 2024.04.30 18:02:11 IST Reason: Signature Not Verified and Hon’ble Mr. Justice Sandeep Mehta. Leave granted. The appeal stands allowed in part in terms of the signed non- reportable judgment. ... Sameer Kumar, AOR M....
(B) Whether the notice given by the plaintiff was valid? (C) Whether the defendant in suit had defaulted in payment of rent? ... As regards point (C), a finding was recorded that the defendant had defaulted in payment of rent. ... (iv) No finding had been recorded about arrears of rent and default in payment of the same. ... Khan that the SCC Court has not determined the rate of rent but has decreed the suit for arrears of #....
9. Regarding the payment of rent, Bank Draft then, the receipts apparently, appears to be valid what has been the cause for not notifying the payment to the decree holder is not forthcoming. No doubt, the Judgment- Debtor should have filed the response or otherwise, apprised the executing court about the deposit of the rent and cause for non-settlement of the prevailing rent which he has not done for long time but the question is as to whether on such count, default can be attributable to the Judgment-Debtor.
In case the payment of tax has been made by a cheque or draft or in any other mode otherwise than in cash, the date of payment will be the date on which such cheque, draft, etc. was actually encashed.”
Payments made to the Income Tax Department as well as to the Municipal Committee, besides a payment through a draft alleged to have been made on 06.05.1982 were duly given credit. While the Rent Controller accepted the contention of the tenant, the Appellate Authority held that the alleged payment through a draft on 06.05.1982 as not having been established. According to the Appellate Authority, the document Ex. RW1/13 was a photocopy of the draft and being a secondary evidence, it could not have been admitted as proof of payment.
20. K.A.Ramesh v. Susheela Bai K.A.Ramesh v. Susheela Bai K.A.Ramesh v. Susheela Bai , A.I.R. 1998 S.C. 1395was also a case where the tenant was insisting on issuance of receipt for rents paid by him. When landlords denied payment of rent, tenant sent a bank draft, and landlords encashed the same. In the absence of receipts, a contention was taken that the tenant was a wilful defaulter. But, on proof, it was found that he was not a defaulter.
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