Supreme Court Insists on Rigorous Scrutiny Before Striking Tenant Defences in Eviction Suits

The Supreme Court has underscored that trial courts cannot invoke the drastic remedy of striking off a tenant's defence under Order XV Rule 5 of the Code of Civil Procedure without first ascertaining the " first date of hearing " and ascertaining whether any default in rent deposit was wilful or merely bona fide . In a ruling that balances procedural rigour with equitable considerations, Justices S.V.N. Bhatti and Prasanna B. Varale set aside the Allahabad High Court 's orders and remitted the matter for fresh examination by the trial court.

Origins of a Kanpur Commercial Tenancy Dispute

The litigation stems from premises at Kaushalpuri, Kanpur Nagar, where the appellants, Dharmendra Kalra and others, inherited ownership after purchasing the property through registered sale deeds. The respondent tenant, Kulvinder Singh Bhatia, has operated "Gyan Vaisnav Hotel" from two ground-floor halls since the tenancy began, with rent revised over time to Rs. 25,000 monthly by September 2020 . When the tenant stopped paying rent from November 2020 , the landlords issued a termination notice under Section 106 of the Transfer of Property Act and filed a Small Causes Court suit seeking eviction along with arrears and damages.

The trial court first proceeded ex parte , later recalled that order, and then allowed the landlords' application to strike off the tenant's defence on 5 August 2023 for non-compliance with deposit requirements. The High Court partially reversed this in December 2024 by directing a reduced monthly deposit of Rs. 1,500 and later granted a seven-day extension in February 2025 citing counsel's absence abroad, prompting the landlords to approach the Supreme Court .

Competing Contentions Before the Apex Court

Counsel for the landlords argued that the High Court erroneously overlooked the tenant's clear admission of the landlord-tenant relationship and failed to treat the deposit obligation as mandatory. They emphasised that even after a conditional final opportunity was granted in December 2024 , with an express bar on extension applications, the tenant again defaulted, warranting striking off the defence . The landlords further contended that the trial court had correctly found acceptance of their ownership status and that procedural lapses by the tenant throughout—including avoiding summons—reflected contumacious conduct .

In response, the tenant's counsel maintained that substantial compliance had occurred through subsequent deposits, that the High Court 's extension order was discretionary and pragmatic, and that the first date of hearing had never been properly fixed or notified. They urged that striking off defence is an exceptional penalty that should follow only gross and wilful non-compliance, not technical or minimal delays.

Why the High Court 's Approach Fell Short

The Supreme Court observed that Order XV Rule 5, though designed to prevent tenants from dragging proceedings without paying admitted dues, carries a drastic consequence that courts must not apply mechanically. The Bench drew on settled precedents to clarify that the " first date of hearing " is the stage when the court applies its mind to pleadings and frames issues, not an earlier procedural date. Absent such a determination, the very foundation for invoking the provision becomes uncertain.

The Court also faulted the High Court for granting an extension without adequately reconciling it with its own earlier conditional direction. While procedural rules exist to advance justice rather than defeat it, repeated defaults accompanied by fresh extension pleas cannot be glossed over.

Pivotal Observations from the Bench

The Court articulated its reasoning through several pointed observations:

“The power to strike off the defence under Order XV Rule 5 CPC, though couched in mandatory terms, is not to be exercised mechanically. The Court must consider whether there has been substantial compliance and whether the default is wilful or contumacious.”

Striking off the defence is a serious matter and ought not to be resorted to unless there is a clear case of deliberate default or contumacious conduct on the part of the tenant.”

“In the absence of a clear determination of such a date [ first date of hearing ], the very foundation for invoking Order XV Rule 5 CPC becomes uncertain.”

These passages echo earlier rulings such as Bimal Chand Jain v. Sri Gopal Agarwal and Santosh Mehta v. Om Prakash , which emphasised judicial discretion over mechanical application of penal provisions.

Remand and Forward Path

Setting aside both the December 2024 and February 2025 High Court orders, the Supreme Court has directed the trial court to:

  1. Determine the first date of hearing in accordance with law;
  2. Examine due or substantial compliance with Order XV Rule 5;
  3. Assess whether any default was wilful or bona fide ; and
  4. Pass a reasoned order after hearing both sides.

The trial court has been asked to conclude the exercise within six months. By insisting on these foundational inquiries, the judgment reinforces that procedural safeguards in tenancy litigation must remain meaningful even as they protect landlords from indefinite non-payment. Future eviction proceedings will now need to document these steps clearly before any defence is struck off.