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Shri Madankumar Kanji Joshi vs Kailas S/O Ramlal Shriwas And ...
2016 Latest Caselaw 3549 Bom

Citation : 2016 Latest Caselaw 3549 Bom
Judgement Date : 4 July, 2016

Bombay High Court
Shri Madankumar Kanji Joshi vs Kailas S/O Ramlal Shriwas And ... on 4 July, 2016
Bench: T.V. Nalawade
                                        1        CRA 253 of 2015

         IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                       
                     BENCH AT AURANGABAD




                                               
                   Civil Revision Application No.253 of 2015


         *       Madankumar Kanji Joshi,
                 Age 64 years,




                                              
                 Occupation: Business,
                 R/o Aryaniwas, Modern Road,
                 Bhusawal, District Jalgaon.         ..    Petitioner.




                                   
                          Versus

         1)
                             
                 Kailas s/o Ramlal Shriwas.
                 Died, respondent Nos.3,4 & 7
                 are already on record as his
                            
                 legal representatives.

         2)      Nirmala Ramlal Shriwas
                 (deleted as per Court order
                 dated 29-1-2016).
      


         3)      Kamla Ramlal Shriwas,
   



                 Age 55 years,
                 R/o Shani Mandir Ward
                 Modern Road, Bhusawal
                 District Jalgaon.





         4)      Vimala Ramlal Shriwas
                 Age 53 years,
                 R/o Shani Mandir Ward
                 Modern Road, Bhusawal





                 District Jalgaon.

         5)      Sushila Ramlal Shriwas
                 (deleted as per Court order
                 dated 29-1-2016).

         6)      Urmila Ramlal Shriwas
                 (deleted as per Court order
                 dated 29-1-2016).




    ::: Uploaded on - 18/07/2016               ::: Downloaded on - 30/07/2016 08:05:47 :::
                                             2          CRA 253 of 2015

         7)      Ravindra s/o Vasant Choudhari,




                                                                             
                 Age 45 years,
                 Occupation: Business,
                 R/o Shani Mandir Ward




                                                     
                 Modern Road, Bhusawal
                 District Jalgaon.              .. Respondents.

                                    --------




                                                    
         Shri. Mukul S. Kulkarni, Advocate, for petitioner.

         Shri. P.R. Katneshwarkar, Advocate, for respondent
         Nos.3,4 and 7.




                                       
                                   --------
                              ig    CORAM:          T.V. NALAWADE, J.

                                     DATE       :   4th JULY 2016
         JUDGMENT:

1) Revision is admitted. Notice after admission

made returnable forthwith. Heard both sides by consent

for final disposal.

2) The proceeding is filed against the judgment

and decree of Rent Suit No.206/1999 which was pending

in the Court of the Civil Judge, Junior Division, Bhusawal

and also against the judgment and decree of Rent Appeal

No.60/2014 which was pending in the Court of the District

Judge-1, Bhusawal. The suit was filed by the present

appellant, landlord for eviction under the provisions of the

Bombay Rents, Hotel and Lodging House Rates Control

Act, 1947. The trial Court has dismissed the suit and the

3 CRA 253 of 2015

first appellate Court has confirmed the findings of the trial

Court.

3) In short, the facts leading to the institution of

the revision can be stated as follows :-

4) The suit property is a shop premises. It is in

two pieces. One piece has the size of 10 ft x 10 ft and the

other piece has the size of 3 ft x 4 ft. It is part and parcel

of CTS No.1538 situated at Bhusawal and it is given

Municipal House No.3394 (old) and 258 (New) in the

assessment record of the municipal council.

5) It is the case of the plaintiff that the property

was given on monthly rent basis to the father of the

defendant Nos.1 to 6 and at present the defendant No.1 is

in actual possession of the portion having size of 10 ft x 10

ft. It is contended that in the portion admeasuring 3 ft x 4

ft sub-tenant is doing some business. It is contended that

initially the property was given for running hair cutting

saloon but now there is no such saloon and the sub tenant

is running a tea stall. Defendant No.7 is said to be the

said sub tenant.

                                             4       CRA 253 of 2015

         6)               It is the case of the plaintiff that in the past




                                                                          

Rent Application No.33/1976 was filed by the defendants

for fixing standard rent and the standard rent was fixed at

Rs.17.50 in respect of the portion in which hair cutting

saloon was run and it was fixed at the rate of Rs.5.00 per

month in respect of the other portion having size of 3 ft x

4 ft. It is contended that the defendants, tenants, are

liable to pay the municipal taxes separately. It is

contended that since the decision of the rent application

which was given in the year 1982, no rent has been paid

by the defendants of the suit premises.

7) In the plaint particulars of the municipal taxes

are given and they are starting from the year 1982 till the

year 1999. It is the case of the plaintiff that the

defendants are liable to pay municipal taxes also for the

period mentioned and the total amount of the taxes of the

portion of the defendants is Rs.2616.58. It is contended

that as the rent is not paid from the year 1982 the

defendants are in arrears of rent of Rs.4815/-.

                                            5       CRA 253 of 2015

         8)               It is the case of the plaintiff that aforesaid




                                                                         

amount was demanded by him many times to the

defendants but they did not pay the amount and they are

willful defaulters. It is the case of the plaintiff that he sent

demand notice dated 29-9-1999 and in this notice tenancy

was terminated on the ground of default. The tenancy was

terminated by the end of October 1999. It is contended

that even after receipt of the notice, the defendants have

not paid the rent to the plaintiff and so the plaintiff is

entitled to get decree of eviction on the ground of default.

9) The suit was filed on the ground of bona fide

requirement for personal use. It is the case of the plaintiff

that for starting the business for the sons, the plaintiff

needs the suit premises and he has no such separate

premises for starting business for his sons. The ground of

sub tenancy was also taken and thus the suit was filed for

eviction on aforesaid three grounds. Relief of recovery of

arrears of rent and taxes recoverable under law for the

preceding three years was also claimed.

                                            6       CRA 253 of 2015

         10)              The defendant Nos.1,3 and 4 filed joint written




                                                                         

statement. They admitted that the plaintiff is the owner of

the suit property. They contended that, the father of the

plaintiff was collecting the rent from the defendants and

he was acting as landlord. They denied the allegations of

sub tenancy in favour of defendant No.7. They have

denied the allegations that the rent and taxes were not

paid for the period starting from the year 1982. They

contended that after receipt of the notice of demand they

filed Civil Application No.69/1999 for determining the

taxes payable by the defendants.

11) It is the case of the defendants that they had

sent rent and taxes amount in the past by money order but

the plaintiff had refused to accept the amount. It is

contended that one money order of Rs.135./- was accepted

by the plaintiff. It is their case that they have paid rent for

the period ending 31-8-1991 and this amount was

accepted by the father of the plaintiff.

12) It is the case of the defendants that they have

replied the notice of demand and in the reply they had

7 CRA 253 of 2015

requested the plaintiff to give particulars of the taxes

which fall to the share of the defendant and such demand

was made under section 21 of the Bombay Rents, Hotel

and Lodging House Rates Control Act, 1947 (hereinafter

referred to as "the Act"). It is the case of the defendants

that the plaintiff has not supplied the particulars of the

taxes. It is also contended that they had sent money order

in respect of arrears for the period starting from 1-9-1991

but this money order is refused by the plaintiff and so the

defendants cannot be treated as defaulters. It is the case

of the defendants that they were always ready and willing

to pay the rent and they are still ready and willing to pay

the rent but the demand made is excessive.

13) The notice of demand was sent on 29-9-1999

and it is admitted that it was served on the defendants. It

is the case of the defendants that after service of notice on

7-10-1999 they filed application under section 11 of the

Act on 28-10-1999 and they had requested the Court to

determine permitted increases. They also contended that

after decision of the application bearing No.33/1976 filed

by them no particulars of taxes were informed by the

8 CRA 253 of 2015

plaintiff. It is contended that the standard rent fixed by

the Court in the said proceeding is Rs.22.50 per month

and the defendant was sending this amount to the father

of plaintiff namely Kanji Joshi. It is contended that Kanji

then started refusing to accept rent sent by money order.

It is contended that the plaintiff did not demand rent from

the defendants and he avoided to collect rent from the

defendants for the period of 17 years to create a ground

and then he sent the notice of demand dated 29-9-1999. It

is the case of the defendants that before filing application

for determining the permitted increases that they had

made inquiry with the local body about the taxes payable

and they have realized that the demand made by the

plaintiff is excessive. To the rent application reply was

filed by the landlord and the aforesaid contentions were

denied by him. The landlord contended that as the

standard rent was already fixed in the previous

proceeding, no application under section 11 of the Act is

tenable. He also contended that the tenant knew the rate

of taxes and the liability to pay the taxes but the tenant

has avoided to pay the taxes and also the standard rent.

                                          9       CRA 253 of 2015

         14)              The Civil Application No.69/1999 was heard




                                                                       

along with the suit by the trial Court. Issues were framed

on 1-4-2005. The application under section 11 of the Act

was made within 30 days of the receipt of the demand

notice but as per the record no prayer was made by the

tenant to allow him to deposit even the interim rent in the

case. No readiness and willingness was shown to deposit

the amount demanded in the notice of demand by the

landlord. The record shows that first time on 15-9-2006

the tenant moved application and prayed to the Court in

the Rent Application No.69/1999 to determine the rent

and allow the tenant to deposit the rent. In this

application the tenant did not show readiness and

willingness to deposit entire amount demanded but he

contended that he is liable to pay the rent for the period

starting from 1-9-1991. The tenant did not request the

Court to determine interim permitted increases and the

tenant did not show readiness and willingness to deposit

the taxes of which demand was made by the landlord in

the demand notice. On 15-9-2006 itself say was filed by

the landlord and it was submitted for the landlord that the

Court may pass appropriate order on the application. The

10 CRA 253 of 2015

Court made order on 15-9-2006 and directed the tenant to

deposit standard rent as fixed in the previous proceeding

No.33/1976 which was at the rate of Rs.22.50 per month.

The amount was to be deposited within 15 days and then

the tenant was to deposit further rent at the same rate for

every month before 10th of next month. This order was

complied with on 19-9-2006.

15) The oral evidence given by the plaintiff is as

per the aforesaid pleadings in the plaint. It can be said

that one of the defendants has given evidence in rebuttal

but this defendant has not disputed the case of plaintiff

and the evidence given by the plaintiff on many material

points. The plaintiff has produced the relevant record of

assessment of taxes made by the local body. He has

produced the bills of demand issued by the local body and

he has given evidence that he has paid entire tax which

was demanded by the local body.

16) During arguments, learned counsel for the

appellant did not press the ground of sub letting. There is

also no convincing record to prove this ground. In view of

11 CRA 253 of 2015

this circumstance only the material available on the

remaining two grounds viz. the ground of default and the

ground of bona fide requirement for personal use need to

be considered.

17) On the ground of default, plaintiff has given

substantive evidence that rent was not paid from the year

1982, the year in which application filed for fixing

standard rent was decided. The defendant has come with

the case that the rent was paid to Kanji, father of the

plaintiff and it was paid upto the period ending 31-8-1991.

There is specific case that after this period Kanji refused

to accept the payment sent by money order and so the

defendant is not the defaulter. In view of this rival

contention, burden was on the defendants to prove that he

was ready and willing to pay rent but it was not accepted

by the landlord. From the record it can be said that even if

the case of the defendant in respect of payment of rent

made prior to 31-8-1991 is accepted as it is, the defendant

tenant has failed to prove that after that date, rent was

tendered even to the father of the plaintiff and the father

had refused to accept the rent. For proving that the tenant

12 CRA 253 of 2015

was ready and willing after 31-8-1991 to pay rent, it was

necessary to prove the refusal to accept the rent from the

side of the landlord.

18) Kamla, defendant No.3, has given evidence for

all defendants. No substantive evidence is given by her

that any rent was paid or tendered by the defendants after

31-8-1991. She has only denied the case of the plaintiff

that rent was not paid after that period. She has given

evidence that application for fixing standard rent was

made by the tenant in the Court and in that proceeding

rent was deposited by the tenant for the period ending

December 2007. The evidence also does not show that she

was ready and willing to pay the tax demanded by the

landlord. This lady has relied only on two receipts showing

deposit of the rent in the Court in the suit filed for

eviction.

19) In the cross-examination of plaintiff, copies of

some money orders were confronted to him. He has

admitted signatures of his father appearing on those

receipts. So those documents are exhibited as Exhibits 62

13 CRA 253 of 2015

to 68. There are only seven receipts and on many receipts

amount of rent of Rs.135/- can be seen. The first receipt is

of the year 1987 and the last receipt is of 3-9-1991. The

last receipt is of Rs.135/-. All these receipts show the

money orders sent by the defendant for payment of the

rent which was on most of the occasions for the period of

around 6 months was accepted by the father of the

plaintiff. Thus there is no record with tenant to prove that

entire standard rent as fixed by the Court was paid upto

31-8-1991. No money order is produced on the record to

show that either the plaintiff or his father had refused to

accept the rent sent by money orders prior to issue of

demand notice. There is one money order of 31-10-1999

which was sent after termination of the tenancy and after

demand of the arrears and this document needs to be

considered separately. Thus there is no record with the

tenant to show that from 3-9-1991 till 31-10-1999 on any

occasion any amount was sent by money order to the

landlord or to his father and they had refused to accept

that amount.

                                                14          CRA 253 of 2015

         20)              There is one money order dated 31-10-1999




                                                                              

which is for Rs.2205/-. On this money order there is

mention that the rent was for the period from 1-9-1991 to

31-10-1999 but no evidence is given for proving the

endorsement made on this document and this document is

not exhibited by the trial Court. If this amount is

compared with the amount demanded by the landlord in

the demand notice even in respect of the standard rent, it

can be said that this amount was not as per the demand

made by the landlord. In any case this document would

not have shown that there was tender of tax amount of the

share of the defendant. In the reply sent by the tenant,

copy of which is at Exhibit 70 also it is mentioned that the

tenant was sending only the standard rent for the

aforesaid period.

21) The record shows that in the year 1999 after

receipt of demand notice, application under section 11 of

the Act was made. No readiness and willingness was

shown till 15-9-2006 to deposit any amount in this

proceeding. First time on 15-9-2006 readiness and

willingness was shown to deposit the standard rent but no

15 CRA 253 of 2015

readiness and willingness was shown to pay the permitted

increases, taxes. The Court made order in view of this

prayer and in view of the order made in the previous rent

application and directed to pay standard rent as fixed in

the previous proceeding. Only after the order, amount of

Rs.4,140/- was deposited by the defendant and it was for

the period from 1-9-1991 to 31-12-2006 and it was the

standard rent fixed by the Court. At Exhibit 75 there is

another receipt showing that on 4-11-2006 Rs.270/- was

deposited as standard rent for the period from 1-1-2007 to

31-12-2007. Thus, at any time no readiness and

willingness was shown in the trial Court or in the

appellate Court by the tenant to pay the permitted

increases.

22) The landlord gave oral evidence to prove his

entitlement in respect of the permitted increases. For that

he produced relevant record also. The record includes the

assessment record prepared by the Bhusawal Municipal

Council for the period 1980-81 to 2005-2006 at Exhibits

50 to 55. This record shows that in the house property

there are only two shops. For one shop name of defendant

16 CRA 253 of 2015

is entered and for other shop the name of one

Ganeshprasad Rambharose was entered. On the basis of

rateable value in respect of two shops the tax was

imposed. The tax was under heads like general tax,

education cess, water tax, special education tax etc. The

tax was imposed for the years 1980 to 1984 of Rs.375/-.

The ratable value of the shop of Ganesh was Rs.780/- at

that time and that of the defendant was Rs.480/-. Under

different heads the tax separately levied was also

mentioned. For the years 1997-98 to 2001-2002 the total

tax payable was Rs.504/-. In those years the rateable value

of the shop of Ganesh was Rs.780/- and the rateable value

of the shop of the defendant was Rs.504/-. Few bills issued

by the local body in respect of aforesaid taxes are

produced by the landlord at Exhibits 46 to 49. Certificate

at Exhibit 45 shows that for the year ending 2006 entire

property tax was paid by the plaintiff.

23) In the pleadings and in the reply to the notice,

the defendants had contended that they had made inquiry

with the local body to ascertain the tax recoverable. The

aforesaid record was also available to the defendants. In

17 CRA 253 of 2015

the demand notice standard rent starting from the year

1982 was demanded and the house tax, permitted

increase in proportion to the property of the defendants

was also demanded and that tax was for every year from

1982. In the notice itself particulars like general tax,

special education tax, eduction cess, water tax were given

by the landlord and that can be seen from Exhibit 56.

Thus there was contention of the tenant that he had made

inquiry and there was the record of aforesaid nature to

establish the case of landlord of entitlement to recover the

tax. In spite of these circumstances the Courts below have

held that the particulars which were demanded under

section 21 of the Act were not given. These circumstances

show that there was non application of mind by both the

Courts below and they failed to consider the aforesaid

record and the nature of defence taken by the tenant.

Further, there was no substantive evidence from the

defendants that the defendants had tendered rent or tax

in the past and the landlord had refused to accept the

same. In view of these circumstances there is no other

alternative than to hold that both the Courts below have

committed error in giving finding on this point against

18 CRA 253 of 2015

the landlord. This record and the admissions given by the

tenant are sufficient to infer that the tenant had no

intention to pay at least the permitted increases. There

was virtually no record to prove that after 3-9-1991 any

rent or tax was paid or tendered till the date of reply given

to the statutory notice. Due to these circumstances the

only finding which can be given is that the tenant was not

ready and willing to pay standard rent and permitted

increases and the tenant had become defaulter by not

paying the rent continuously after 3-9-1991.

24) Both the sides have placed reliance on some

reported cases in support of their submissions made on

the ground of default. The notice of demand was issued

on 29-9-1999 and so in the present matter the law as

amended in the year 1987 needs to be considered and

applied.

25) It is not disputed that in the Rent Application

No.33/1976 standard rent was fixed and the decision was

given on 9-11-1982 (Exhibit 44). Entitlement of the land

lord to get permitted increases is not disputed by the

19 CRA 253 of 2015

tenant. Further in law also the tenant could not have

disputed such entitlement. In section 5(7) of the Act

definition of "permitted increase" is given and section 10

makes it clear that the tenant is liable to pay house tax as

permitted increase. The tax which needs to be paid by the

tenant is to be in the proportion to the premises which is

in his possession. The provisions of the Act have not given

any procedure for ascertaining the increase by the Court

before issue of demand notice and so the landlord can

simply send bill, make demand of permitted increases

according to the practice of recovery of rent. If the tenant

does not take proper steps after such demand, the tenant

is liable to make payment as per the demand to avoid the

consequences of non payment.

26) In the present matter the tenant sent reply to

the demand notice given by the landlord and asked to

supply particulars as provided in Section 21 of the Act.

The aforesaid discussion shows that particulars were

supplied by the landlord in the demand notice itself.

Further, there is oral evidence to show that in the past

also the demand was made. In the reply given at Exhibit

20 CRA 253 of 2015

70 the tenant contended that the demand of tax was

excessive in comparison to the taxes which were payable

in the year 1982-83. This contention shows that in the

year 1982-83 also such demand was made by the landlord

and tenant had made inquiry with the local body to

ascertain his liability. Thus, the tenant gave false reply in

Exhibit 70 that there were no particulars given to him.

27) The rights of the landlord and tenant when

there is default in making payment of rent or permitted

increases can be found in sections 11 and 12 of the Act.

Provision of section 12 as amended in the year 1987 runs

as under :-

"12. No ejectment ordinarily to be made if tenant pays or is ready and willing to pay standard rent and permitted increases. (1) A landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay, the amount of the standard rent and permitted

increases, if any, and observes and performs the other conditions of the tenancy, in so far as they are consistent with the provisions of this Act.

(2) No suit for recovery of possession shall be instituted by a landlord against tenant on the ground of non-payment of the standard rent or permitted increases due, until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the

21 CRA 253 of 2015

tenant in the manner provided in section 106 of the

Transfer of Property Act, 1882.

(3) No decree for eviction shall be passed by the Court in any suit for recovery of possession on the ground of arrears of standard rent and permitted increases if any, on the first day of hearing of the suit

or on or before such other date as the Court may fix, the tenant pays or tenders in Court the standard rent and permitted increases then due and together with simple interest on the amount of arrears of such standard rent and permitted increases at the rate of

nine per cent, per annum; and thereafter continues to pay or tenders in Court regularly such standard rent and permitted increases till the suit is finally decided

and also pays cost of the suit as directed by the Court.

Provided that, the relief provided under this sub-

section shall not be available to a tenant to whom relief against forfeiture was given in any two suits previously instituted by the landlord against such tenant.

(4) Pending the disposal of any such suit, the Court may out of any amount paid or tendered by the

tenant pay to the landlord such amount towards payment of rent or permitted increase due to him as the Court thinks fit.

Explanation I.-- In any case where there is a dispute as to the amount of standard rent of permitted increases recoverable under this Act the tenant shall be deemed to be ready and willing to pay such amount if, before the expiry of the period of one month after notice referred to in sub-section (2), he

makes an application to the Court under sub-section (3) of section 11 and thereafter pays or tenders the amount of rent or permitted increases specified in the order made by the Court.

Explanation II.-- For the purposes of sub-section (2), reference to "standard rent" and "permitted increase" shall include reference to"interim standard rent" and "interim permitted increase" specified under sub-section (3) or (4) of section 11.

22 CRA 253 of 2015

Explanation III.-- For the purposes of this section

where, a tenant has deducted any amount from the rent due to the landlord under section 173C of the Bombay Municipal Corporation Act for recovery or

any water tax or charges paid by him to the Commissioner, the tenant shall be deemed to have paid the rent to the extent of deductions so made by him."

Relevant portion of section 11 which is section 11(2),(3)

and (4) runs as under :-

"11. Court may fix standard rent and permitted increases in certain cases.

(1) . . . .

(2) If there is any dispute between the landlord and the tenant regarding the amount of permitted increases, the Court may determine

such amount.

(3) If any application for fixing the standard rent or for determining the permitted increases, is made by a tenant who has received a notice from

his landlord under sub-section (2) of section 12, the Court shall forthwith specify the amount of rent or permitted increases which are to be deposited in Court by the tenant, and make an order directing the tenant to deposit such

amount in Court or at the option of the tenant make an order to pay to the landlord such amount thereof as the Court may specify, pending the final decision of the application. A copy of the order shall be served upon the landlord. Out of any amount deposited in Court, the Court may make an order for payment of such reasonable sum to the landlord towards payment of rent or increase due to him as it thinks fit. If the tenant fails to deposit such

23 CRA 253 of 2015

amount or, as the case may be, to pay such

amount thereof to the landlord, his application shall be dismissed.

(4) Where at any stage of a suit for recovery of rent, whether with or without a claim for possession of the premises, the Court is satisfied

that the tenant is withholding the rent on the ground that the rent is excessive and standard rent should be fixed, the Court shall, and in any other case if it appears to the Court that it is just and proper to make such an order the Court may

make an order directing the tenant to deposit in Court forthwith such amount of the rent as the

Court considers to be reasonably due to the landlord, or at the option of the tenant an order directing him to pay to the landlord such amount

thereof as the Court may specify. The Court may further make an order directing the tenant to deposit in Court periodically, such amount as it considers proper as interim standard rent, or at

the option of the tenant an order to pay to the landlord such amount thereof as the Court may

specify, during the pendency of the suit. The Court may also direct that if the tenant fails to comply with any order made as aforesaid, within such time as may be allowed by it, he shall not be entitled to appear in or defend the suit except

with leave of the Court, which leave may be granted subject to such terms and conditions as the Court may specify."

The provision of section 11 (4) of the Act is made to

protect the rights of landlord. The aforesaid provisions

show that it is necessary for tenant to apply to the Court

to show his readiness and willingness to make payment

rent (standard rent) or the permitted increase of which

24 CRA 253 of 2015

demand is made. When demand is already made, he needs

to show readiness and willingness by making the payment

or by applying to the Court as provided under interim

order which Court can make under the aforesaid

provisions. It is already observed that such steps were not

taken by the tenant till the year 2006.

28)

It appears that the Courts below ultimately held

that the application filed under section 11 was not tenable

as in the past standard rent was fixed by the Court.

Provision of Section 11-A was referred to give such

decision. Provision of section 11-A runs as under :-

"11A. No new application for standard rent, etc., to be entertained if already duly fixed by a competent Court at the instance of other parties.

No Court shall upon an application or in any suit proceeding, fix the standard rent of any premises under section 11, or entertain any plea that the rent or increases are excessive, if the standard rent or the permitted increases, in respect of the same premises have been duly fixed by a competent Court on the

merits of the case, without any fraud or collusion or any error of the facts, and there has been no structural alterations or change in the amenities or in respect of any other factor which are relevant to the fixation of the standard rent, or change in such increase, thereafter in the premises."

25 CRA 253 of 2015

The aforesaid provision shows that the bar is not

applicable when there is change in increase or there is

demand of permitted increase which is disputed by the

tenant. In any case it was necessary for the tenant to pay

or tender the amount demanded in respect of permitted

increases or pay the amount which the Court could have

determined as interim payment. This did not happen and

so ultimate result of the application of rejection cannot be

used by the tenant in the present matter.

29) Provision of section 12(3) gives one more

opportunity to the tenant to pay or tender in the Court the

standard rent or permitted increase. He can deposit such

amount on the first date of hearing or before such other

date as the Court may fix. In the present matter issues

were framed on 1-4-2005. On application given on 15-9-

2006 by the tenant the order was made by the Court on

the same day and opportunity was given to the tenant to

make payment within 15 days of the amount due (as

standard rent) and continue to make payment before 10th

of every month of completed month. In the case reported

as 2002 BRC 489 SC (Vasant Ganesh Damle v. Shrikant

26 CRA 253 of 2015

Trimbak Datar) the Apex Court has laid down that the

meaning of condition of "first date of hearing" used in

section 12(3) of the Act cannot be stretched to any date

beyond the date when the issues are framed in the suit. It

is laid down by the Apex Court that at last stage the

provision of section 12(3) of the Act cannot be used if it

was not availed at the proper stage, on or before the first

date of hearing.

30) The learned counsel for the tenant placed

reliance on a case reported as 2008 (3) Mh.L.J. 610

(Sitaram v. Fakirchand) and submitted that if the landlord

had refused to accept the rent tendered, he cannot be

allowed to say that the tenant had not paid the rent and

he had become defaulter. This proposition cannot be

disputed. Facts and circumstances of each and every case

are always different and in the present matter there is no

hesitation to hold that the tenant had not paid or tendered

the rent after 3-9-1991, till receipt of demand notice of

1999.

                                           27        CRA 253 of 2015

         31)              The learned counsel for the landlord placed




                                                                       

reliance on the case reported as (2015) 6 SCC 526

(Yusufbhai Noormohammed Jodhpurwala v. Mohmmed

Sabir Ibrahim Byavarwala). The facts of the reported case

show that rent was not paid from 1-3-1986 and notice of

termination and demand was issued on 9-3-1987. The suit

was filed in the year 1987. In view of the facts of the case

provision of section 12(3)(a) and 12(3)(b) which were

there prior to amendment of 1987, were considered and

applied. Now there is only one provision like section 12(3).

It is similar to the previous provision of section 12(3)(b).

In this case two principles are laid down by the Apex

Court like (1) the date of framing of issues is the date of

first hearing; and (2) the Court has no discretion to hold

that the tenant has substantially complied with condition

laid down in section 12(3)(b) if the tenant has not paid the

entire amount due and he has not strictly complied with

the conditions given in section 12(3)(b). It is made clear

that if there is no compliance of these conditions, decree

of eviction must be given against the tenant. There

cannot be dispute over this proposition. Considering the

facts of the present matter this Court holds that the

28 CRA 253 of 2015

aforesaid ratio needs to be used in the present case. Thus,

on the ground of default, the landlord is entitled to decree

of eviction and the Courts below have committed grave

error in ignoring the aforesaid relevant material and the

position of law.

32) On the ground of bona fide requirement

mentioned in section 13(1)(b) of the Act there is specific

pleading in the plaint and the substantive evidence given

is consistent with the pleadings. The plaintiff has

contended that he wants to start separate business for his

two sons in the suit property. In rebuttal, the defendant

has given evidence that the two sons are already doing

separate business. However, there is no specific case or

evidence that they have separate business. Evidence is

also given by the defendant that the plaintiff is a rich

person and the defendants have no other accommodation.

33) In the cross-examination, the defendant has

admitted that the plaintiff has two sons and one of the two

sons is handicapped. She has admitted that place of

residence of the plaintiff is on the back side of the suit

29 CRA 253 of 2015

property. These circumstances suggest that the suit

property will be convenient for the business which can be

started for the handicapped son as it is adjacent to the

residential place.

34) In the cross-examination of the plaintiff it is

brought on the record that the plaintiff has two brothers

and partition has not taken place amongst the three

brothers. He has also admitted that he is running

Aryaniwas Restaurant of joint family and one son is

assisting in that business. He has admitted in the cross

examination that sons of one brother, Gangadhar are

running one lodge and the said sons of Gangadhar are

also shown as owners of the said property. The plaintiff

has admitted in the evidence that son of his third brother

runs other lodge. Vague admissions are brought on the

record that his family possesses space which is more than

requirement. This admission is not sufficient to infer that

space suitable for starting business for handicapped son is

available with the plaintiff which is other than the suit

property.

                                                30          CRA 253 of 2015

         35)              Much was made out by the Courts below on the




                                                                              

basis of aforesaid admissions given by the plaintiff in the

cross examination. It is already observed that there is no

substantive evidence that the two sons of the plaintiff

have separate business. No record in that regard is

produced by the defendant. The assessment record which

is available shows that in the name of the plaintiff there is

only one house in which there are two shops and the

plaintiff is claiming possession of one such shop which is

shown in two pieces in the plaint.

36) No evidence is given by the defendants that the

defendant-tenant searched for alternative premises when

the defendants learnt that the plaintiff was in need of the

suit premises for the use of his sons. The evidence on the

record shows that in the past hair cutting saloon was run

in the suit property and now one tea stall is run. It was

necessary for the defendants to create probability that the

plaintiff has other alternative accommodation. No such

probability is created. No evidence is given that

alternative accommodation is not available in that locality

or other locality for starting tea stall as there is no

31 CRA 253 of 2015

evidence that such search was made by the defendants. In

the case reported as 1997 (1) Mh.L.J. (S.C.) 121 (Meenal

Eknath Kshirsagar v. Traders & Agencies) it is laid down

by the Apex Court that :

"the landlord is the best judge of his requirement and it is up to him to decide how and in what manner he should

live or use his premises. If the landlord proves that he

requires that premises, then the Court cannot dictate him to occupy other premises."

Thus the Apex Court has laid down that the suitability

point needs to be left with the landlord. In view of this

position of law the contention of the tenant made on the

basis of aforesaid vague admissions given by the landlord

could not have been considered in favour of the tenant.

The aforesaid position of law is not considered by the

Courts below. This Court holds that on the ground of bona

fide requirement also the landlord is entitled to decree of

eviction.

37) In the result, the civil revision application is

allowed. the judgment and decree of the trial Court and

32 CRA 253 of 2015

the first Appellate Court are set aside. The suit for

eviction filed by the landlord is decreed on the grounds of

bona fide requirement and default committed by the

respondents. Time of three months is given to the

respondents to vacate the suit properties.

Sd/-

(T.V. NALAWADE, J. )

rsl

 
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