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Sohan Lal v. Hodal Singh
Factual and Procedural Background
The plaintiffs (opposite parties in the revision) filed Suit No. 457 of 1975 for ejectment, recovery of arrears of rent and damages for use and occupation relating to a pucca shop in Mohalla Jwalapuri G.T. Road, Aligarh. They alleged that the defendant was a monthly tenant at Rs. 80 plus Rs. 3 electrical charges and had not paid rent and electricity charges amounting to Rs. 1,245 for the period 1-10-1973 to 31-12-1974 despite a notice dated 27-1-1975.
The defendant contested the suit, claiming the agreed rent was Rs. 10 (later stated as Rs.15 in pleadings), that he had paid rent monthly, and that rent up to December 1974 was paid. During the suit the defendant applied (dated 29-10-1975) for striking off the defence under Order XV Rule 5 CPC on the ground of non-deposit of rent, but the Judge, Small Causes Court did not strike it off and decided the case on the merits, finding the rent to be Rs.15 and that the defendant had not defaulted, and dismissed the suit.
The plaintiffs preferred a revision under Section 25 of the Provincial Small Cause Courts Act. The Additional District Judge (Revising Authority) held that deposits required by Order XV Rule 5 CPC had not been made at the rate of Rs.80 per month (the rent he found to be correct), struck out the defence, and allowed the revision: ejectment was decreed and Rs.1,736 awarded as arrears of rent and electrical charges. The defendant filed the present revision under Section 115 CPC (defendant is the applicant challenging the Additional District Judge's order).
Legal Issues Presented
- Whether the written statement/defence of the defendant was liable to be struck out for non-deposit of rent under Order XV Rule 5 CPC (as amended by U.P. Civil Laws (Amendment) Act No. 37 of 1972 Rule 5).
- Whether the expression "may" in Order XV Rule 5 CPC is directory (discretionary) or mandatory (obligatory) and consequently whether a court is obliged to strike out the defence when conditions for striking out are satisfied.
- Whether a Revising Authority (or higher court) can strike out a defence under Order XV Rule 5 CPC when the trial court has not done so, particularly where evidence has already been adduced.
- What are the consequences of striking out a defence — specifically, whether a defendant whose defence has been struck out may still participate in certain parts of the trial (e.g., cross-examination) and whether evidence led by the defendant after a failure to strike out at trial can be relied upon if the defence is subsequently struck out on revision.
Arguments of the Parties
Defendant's Arguments
- The agreed rent was much lower (initially pleaded as Rs.10, then claimed as Rs.15) and he had been paying rent monthly; the plaintiff's claim of Rs.80 per month was disputed.
- The word "may" in Order XV Rule 5 CPC renders the striking out power directory and discretionary, not mandatory; therefore a refusal to strike out defence cannot be interfered with by revision under Section 25 of the Provincial Small Cause Courts Act.
- Reliance on V.K. Verma v. Radhey Shyam (AIR 1964 SC 1317) to suggest that the power to strike out the defence is discretionary and optional.
- Counsel for the defendant also contended that because the Judge, Small Causes Court did not strike out the defence and evidence had been adduced, the Revising Authority could not strike out the defence at the revision stage; the power to strike out exists only up to the stage where evidence has not been adduced.
Plaintiffs' Arguments
- The plaintiffs contended (in the suit and in revision) that the correct rent was Rs.80 per month and that the defendant had defaulted in depositing arrears and monthly rent as required; accordingly, under Order XV Rule 5 CPC (as amended) the defence should be struck out.
- In revision, the plaintiffs asserted that the deposits required by Order XV Rule 5 CPC were not made and that the defence ought to be ignored; the Revising Authority accepted this position and proceeded on plaintiff's evidence.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| I. Hirday Narain v. Income Tax Officer, Bareilly, (1970) 2 SCC 355 : AIR 1971 SC 33 | That the word "may" (in a statutory power to rectify a mistake apparent on the face of the record) requires exercise of the power if conditions exist; authorities are bound to act when conditions are made out. | The court relied on this case to support the proposition that "may" can be used in a mandatory sense and that a court is bound to exercise the power to strike out when the conditions of Order XV Rule 5 CPC are made out. |
| Pujalal v. Bhagwat Prasad, AIR 1963 SC 120 | That the word "may" in the context of eviction/decree provisions does not necessarily confer discretion not to grant relief when conditions are satisfied. | The court cited this decision to reinforce that "may" does not always mean optional discretion and can be interpreted as obligatory in appropriate statutory contexts. |
| V.K. Verma v. Radhey Shyam, AIR 1964 SC 1317 | Interpreted by some as holding that striking out the defence was discretionary under the amended provision of the Delhi and Ajmer Rent Control Act; used by defendant to argue discretion. | The court distinguished this case: it observed that the phraseology in that statute had been deliberately changed to create discretion, so that decision was not applicable to Order XV Rule 5 CPC as in the present case. |
| Paradise Industrial Corporation v. Kalin Plastic Products, (1976) 1 SCC 91 : AIR 1976 SC 309 | The proposition that even when a defence is struck out, a defendant may be permitted to appear, cross-examine plaintiff's witnesses and submit that on plaintiff's evidence a decree should not be passed. | The court relied on this case to explain the limited participatory rights of a defendant after his defence is struck out: participation for cross-examination and submissions confined to showing that plaintiff's evidence is insufficient for a decree. |
Court's Reasoning and Analysis
The court structured its analysis around the meaning and effect of Order XV Rule 5 CPC (as amended by U.P. Civil Laws (Amendment) Act No. 37 of 1972 Rule 5), which requires a tenant to deposit rent as prescribed and authorizes the court to strike out the defence for non-deposit. Although the statute uses the word "may" when granting this authority to strike out, the court examined whether that wording conferred discretion or imposed an obligation where statutory conditions were satisfied.
The court rejected the defendant's submission that "may" is merely directory and leaves the court free not to strike out the defence. Relying on authorities (I. Hirday Narain and Pujalal v. Bhagwat Prasad), it concluded that the legislative use of "may" in contexts like Order XV Rule 5 can be read as mandatory when the conditions for exercise of the power are satisfied. The settled rule, as stated by the court, is that where a statute confers authority to do a judicial act in a particular manner, the authority is bound to exercise it when the conditions specified are made out.
The court considered and rejected the defendant's argument that the power to extend time under Rule 5 indicates the provision is directory. It held that the power to extend time does not transform the core obligation into discretionary compliance; the existence of a power to extend cannot be read as making obedience optional where the statutory conditions for striking out exist.
The court also distinguished V.K. Verma v. Radhey Shyam on the ground that the statutory language there had been deliberately changed to give discretion; that factual and legislative difference meant the case did not assist the defendant.
On the facts, both courts below had found that the defendant had committed default and had not deposited future monthly rent regularly. The defendant had not made any representation seeking extension. The trial court had noted irregular deposits but declined to strike out the defence because parties had already adduced evidence and the judge considered it inappropriate at that late stage. The Revising Authority, however, after finding non-compliance with Order XV Rule 5, struck out the defence. The present court held that the Revising Authority was entitled to correct the trial court's error: a higher court may rectify a wrong order and strike out the defence even if the trial court did not do so.
Having concluded the defence was rightly struck out, the court held that the evidence led by the defendant could not be read and that the matter had to be decided without reference to that evidence. The Revising Authority confined itself to the plaintiff's evidence and found the rent to be Rs. 80 per month; this finding was not shown to be erroneous.
Holding and Implications
Holding: The revision filed by the defendant is DISMISSED. The court upheld the Revising Authority's decision to strike out the defence for non-compliance with Order XV Rule 5 CPC and to decide the suit on the plaintiff's evidence, including the finding that the rent was Rs. 80 per month. The court directed the parties to bear their own costs and granted the applicant (defendant) three months' time to vacate the premises.
Implications:
- The court held that Order XV Rule 5 CPC (as amended) is to be treated as mandatory in operation where its conditions are satisfied — the word "may" in that provision, in the context used, does not confer a free-standing discretion to refuse to strike out the defence when the statutory conditions are met.
- A higher court (on revision or appeal) has jurisdiction to correct a trial court's failure to strike out a defence where the statutory conditions for striking out exist; a wrong order by the trial court does not preclude correction by a revising authority.
- When a defence is struck out, the defendant may still be permitted limited participation (cross-examination and submissions limited to showing that plaintiff's evidence is insufficient), but evidence adduced by the defendant that would have been excluded by a proper striking out cannot be relied upon; in this case the court excluded the defendant's evidence after striking out the defence and proceeded on the plaintiff's evidence.
- Direct effect on the parties: the defendant must vacate within three months and bears the consequences of the striking out (ejectment decree and recovery as earlier decreed by the Revising Authority are preserved by dismissal of the defendant's revision); the parties are directed to bear their own costs.
K.C Agrawal, J.:— This is a defendant's revision filed under Sec. 115 Code of Civil Procedure against a judgment of the Second Additional District Judge, Aligarh dated 14-9-1977 accepting the revision perferred under Section 25 of the Provincial Small Cause Courts Act.
2. The plaintiffs are the opposite parties in this revision. They filed suit no. 457 of 1975 for ejectment, recovery of arrears of rent and damages for use and occupation. They alleged that the defendant was the tenant on a monthly rent of Rs. 80/- besides Rs. 3/- for electrical charges of a pucca shop situated in Mohalla Jwalapuri G.T Road, Aligarh. He did not pay the rent and the electricity charges amounting to Rs. 1245/- due from 1-10-1973 to 31-12-74, despite a notice dated 27-1-1975.
3. The suit was contested by the defendant claiming that the rate of rent initially agreed between the parties was Rs. 10/-. He asserted that he had been paying rent every month and that the plaintiff had been receiving the same. The defendant's case was that rent upto the end of December, 1974 stood fully paid up; that in the month of January, 1975, the plaintiff sent an illegal and wrong notice claiming the rent from 1-10-1973. Daring the pendency of the suit, an application dated 29-10-1975 for striking off the defence on the ground that as the defendant had neither deposited nor paid rent, the defence was liable to be struck out under Order 15 Rule 5 C.P.C The learned Judge Small Cause Court did not dispose off the said application after it was filed and instead observed in the judgment that in view of the deposits referred to by him, it would not be proper to strike off the defence. The Judge Small Cause Court held that the rate of rent had been at Rs. 15/- as alleged by the plaintiff. He further concluded that the defendant had not committed any default in the payment of the rent. On these findings, the suit was dismissed.
4. Against the judgment of the trial court, the plaintiff preferred a revision under Section 25 of the Provincial Small Cause Courts Act. In the revision the Additional District Judge found that the deposit of the arrears of rent and future rent having not been made, as required by Order 15 Rule 5 C.P.C, the defence was liable to be struck out. After ignoring the defence of the tenant, the learned Additional District Judge held that the plaintiff had established that the rate of rent of the shop in question was Rs. 80/- per month and since the defendant had committed a default he was liable to eviction. Consequently, the revision was allowed and the suit of the plaintiff was decreed for the ejectment of the defendant and for the recovery of Rs. 1736/- as arrears of rent and electric charges. Dissatisfied, the defendant filed the present revision.
5. The first question that is required to be considered in this case is whether the written statement filed by the defendant was liable to be struck out. By U.P Civil Laws (Amendment) Act No. 37 of 1972 Rule 5 was added to order XV of the Code of Civil Procedure. It provides for the striking off the defence at non-deposit of rent. It further requires a defendant to deposit regularly the amount of monthly rent throughout the continuance of the suit. In the instant case, there were two controversies. One of them was about the rate of rent and the other was about the adjustment of the amounts deposited in the proceedings under Section 30 of U.P Act No. 13 of 1972. As already stated above, the case of the defendant was that the rate of rent was Rs. 15/- whereas that which was of the plaintiff was that it was Rs. 80/- per month. The Judge found in the revision filed under Section 25 of the Provincial Small Cause Courts Act that the rent was Rs. 80/- per month and as the deposits had not been made at the rate of Rs. 80/- per month the defence was liable to be struck out. In this connection the Revising Authority had found that not only that the arrears of rent had not been deposited on the first day of hearing but also the defendant had not deposited monthly rent regularly. Although, the Judge Small Cause Court had not struck out the defence but even he held that the deposit of the monthly rent had not been regular. It, however, had refused to strike out the defence on the ground that the same was not proper to be done at the late stage when the parties had already adduced evidence and the case was being decided on the merits. This necessitates the consideration of the nature of the provision made under Order 15 Rule 5 C.P.C
6. Order 15 Rule 5 requires a tenant to make the deposit in the manner prescribed therein. It empowers the court to strike out the defence if the deposit has not been made. While conferring such a power the Legislature used the expression ‘may’. Relying on the aforesaid expression ‘may’, the contention raised on behalf of the tenant was that the striking out of the defence was directory and discretionary and as such, refusal to strike out the defence could not be a ground for interference under Section 25 of the Provincial Small Cause Courts Act. In other words, the submission was that the word ‘may’ cannot mean ‘must’ and thus it was not obligatory or mandatory on the learned Judge Small Causes to strike out the defence.
7. I am unable to accept the submission. The words ‘may’ even if was prima-facie enabling, the Legislature used it in the sense of ‘must’ or ‘shall’. A court is obliged to pass an order striking out the defence if the conditions of Order XV Rule 5 C.P.C for passing such an order has been made out. The settled rule appears to be that when a statute confers an authority to do a judicial act in a certain way, it is imperative on it so authorised to exercise the authority. In the context in which word ‘may’ has been used, it leaves no discretion to the court concerned to omit to pass an order striking out the defence.
8. In I. Hirday Narain v. Income Tax Officer, Bareilly† , Bareilly, (1970) 2 SCC 355 : AIR 1971 SC 33 (36) the Supreme Court in dealing with Section 35 of the Income-tax Act, 1922 which provided that the authorities may ‘rectify any mistake apparent on the face of the record’, held that the authorities were bound to exercise the power if conditions for its rectification were shown to exist by a person interested.
9. Similarly, interpreting the same word ‘may’ used in the Bombay Rents Hotel and Lodging House Rates (Control) Act, the Supreme Court observed in Pujalal v. Bhagwat Prasad, AIR 1963 SC 120 that the word used ‘may’ does not mean that the court has discretion to pass or not to pass a decree for eviction in case the other conditions mentioned in that clause are satisfied.
10. In this view of the matter, it appears to me that the court had no jurisdiction to refuse to strike out the defence when the rent had not been deposited in the manner prescribed by Order XV Rule 5 C.P.C It is not correct to say that the provision is directory. In my opinion, the provision is mandatory. A provision is said to be mandatory when it is necessary that it must be observed as distinguished from directory provision, which leaves the option and the observance of which is not necessary to the validity of the proceeding.
11. The learned counsel suggested that as Rule 5 empowers a court seized with a suit to extend time for depositing the money, the same should be interpreted as directory. I am unable to accept the submission. Under Rule 5, a Court can, after considering any representation made by a tenant, allow him further time for depositing the rent but this cannot be interpreted as meaning that the striking of the defence is discretionary. Simply because the Legislature has conferred power on a court to extend time that cannot be interpreted to mean that the Code leaves it optional with the Officer to obey or not. Reference was made to a decision of the Supreme Court reported in V.K Verma v. Radhey Shyam., AIR 1964 SC 1317 by the learned counsel for the defendant and it was urged that as it was held in that case that the power to strike out the defence was discretionary and optional, this court should also take the same view in the present case. In the said case, the phraseology of the provision was different. It appears that Section 13(5) of the Delhi and Ajmer Rent Control Act, 1962 used the words ‘the court shall order the defence against ejectment to be struck out.’ Subsequently, the Act was amended and those words were deleted. The amending Act used the words ‘the Controller may order the defence against eviction to be struck out.’ Interpreting this change the Supreme Court observed that under the old Code the Court had not option but to strike out the defence if the failure to pay or deposit the rent is proved. Now, under the new Act the Controller, who takes the place of the Court has a discretion in the matter so that in proper case he may refuse to strike out the defence. The view taken was on account of the deliberate modification in law in favour of the tenants. This case, therefore, is of no assistance.
12. Reverting to the facts of the present case, it would be found that the concurrent view of the two courts below was that the defendant had committed default. Both the courts found that the defendant did not deposit the future monthly rent regularly. As the defendant also had not made any representation, the consequence of non-compliance of Order XV Rule 5 was to strike off the defence.
13. Sri S.A Khan, counsel appearing for the defendant, however, contended that as the defence had not been struck off by the Judge Small Causes, the Revising Authority could not do so under Section 25 of the Act. He urged that the power to strike out the defence exists only upto the stage when the parties have not adduced evidence. But where, as here, the evidence had been adduced the court had no power to strike out the defence. I am unable to subscribe to this view. Under Order XV Rule 5 C.P.C the deposit had to be made on or before the date of final hearing and that such a deposit must continuously be made regularly throughout the pendency of the suit. If either of the two things happen, the defence would be liable to be struck off. If a trial court does not strike off the defence, it will always be open to the higher court to correct the mistake and to strike off the defence. A wrong order passed by a trial court is always liable to be rectified or corrected. It does not clothe a party with any right. Accordingly, a higher court hearing an appeal or revision against an order of the Judge Small Causes would have ample jurisdiction to correct the mistake and to strike out the defence.
14. For what I have said above, I find that the Revising Authority was right in striking out the defence.
15. The next question that arises is the consequence of the striking off the defence. Counsel for the defendant urged that even when a defence is struck out, a defendant is entitled to appear, cross-examine the plaintiff's witnesses and submit that even on the basis of the evidence adduced on behalf of the plaintiff a decree cannot be passed against him. See: Paradise Industrial Corporation v. Kalin Plastic Products, (1976) 1 SCC 91 : AIR 1976 SC 309. Accordingly, the proper course in such a matter is that the defendant should be permitted to participate in the proceedings despite the fact that his defence had been struck out. His participation would, however, be limited to the purposes indicated above.
16. In the instant case, since the written statement had not been struck out the defendant had not only participated in the proceedings and cross-examined the witnesses of the plaintiff but also adduced his own evidence. As in my opinion, the defence was liable to be struck out, the evidence led by the defendant could not be read. The case had to be decided without referring to that evidence. Having found that the defence was liable to be struck out, the Additional District Judge also confined himself to the evidence of the plaintiff and reversed the findings of the Judge Small Causes. He found that the rate of rent of the premises was Rs. 80/- per month. No error could be pointed out as against this finding. In the result, the revision fails and is dismissed. In the circumstances I direct the parties to bear their own costs. The applicant is granted three months' time to vacate the premises.
K.J.C
17. Revision dismissed.
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