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  • provisions of Order XV, Rule 5 of the Code of Civil Procedure
  • provisions of Order XV. Rule 5 (1). C.P.C.
  • provisions of Order XV, Rule 5. C.P.C.
  • sub-section (1) of Order 15 Rule 5
  • Order XV, Rule 5 of the C.P.C. 15.
  • provisions of Order XV, Rule 5,
  • Order XV, Rule 5 of the C.P.C.
  • provisions of sub-rule (2),
  • Order XV. Rule 5, C.P.C.
  • sub-rule (2) of Rule
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Citation Codes
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citation codes
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  • provisions of Order XV, Rule 5 of the Code of Civil Procedure
  • provisions of Order XV. Rule 5 (1). C.P.C.
  • provisions of Order XV, Rule 5. C.P.C.
  • sub-section (1) of Order 15 Rule 5
  • Order XV, Rule 5 of the C.P.C. 15.
  • provisions of Order XV, Rule 5,
  • Order XV, Rule 5 of the C.P.C.
  • provisions of sub-rule (2),
  • Order XV. Rule 5, C.P.C.
  • sub-rule (2) of Rule
Smart Summary

Factual and Procedural Background

The suit underlying this revision was for ejectment and for recovery of arrears of rent, water tax and damages in respect of a shop at Uikhimpur Kheri (the "shop in dispute"). The plaintiff-respondent filed S.C.C. No. 9 of 1983 alleging default after serving demand and termination notices. The defendant-applicant contested the suit, disputing the rate of rent and asserting that Rs. 5,000 had been deposited by him as security and that, if adjusted, this amount would cover the rent arrears.

During the suit the plaintiff filed Application No. 44C under Order XV, Rule 5, C.P.C., praying that the defendant's defence be struck off on the ground that the defendant failed to deposit admitted rent and interest as required by the rule. The defendant opposed the application, claiming that the rent for the period 1.9.1980 to 30.4.1985 had been deposited in Court and that his defence should not be struck off.

The trial court (IInd Additional District Judge/Judge, S.C.C., Lakhimpur Kheri) allowed the plaintiff's application and, by judgment and order dated 21.5.1985, struck off the defendant's defence under Order XV, Rule 5, C.P.C., recording that the defendant did not deposit interest at 9% per annum on arrears of rent of Rs. 18,000 (which had been deposited by him on 13.8.1984).

The defendant filed this revision in 1985. This Court entertained the revision, granted an interim stay of further proceedings in the suit, and has since kept the suit proceedings in abeyance pending the revision.

Legal Issues Presented

  1. Whether the trial court erred in striking off the defendant's defence under Order XV, Rule 5, C.P.C., for alleged non-compliance with the deposit requirements.
  2. Whether the Rs. 5,000 allegedly deposited by the defendant with the landlord could be adjusted to meet the requirement to deposit interest and arrears under Order XV, Rule 5, C.P.C.
  3. Whether the trial court should have exercised its discretion (by declining to strike off the defence or by condoning a delay) under the facts and circumstances of the case.

Arguments of the Parties

Applicant's Arguments

  • The trial court acted illegally and with material irregularity in striking off the defence because Rs. 5,000 had already been deposited by the applicant with the landlord and, if adjusted, would cover the interest required to be deposited.
  • The power to strike off a defence under Order XV, Rule 5, C.P.C. is discretionary, and the trial court should have exercised that discretion judiciously in the applicant's favour.
  • This Court should condone any irregularity in payment of arrears and interest and permit the applicant to deposit any outstanding amount if necessary.

Respondent's Arguments

  • The applicant failed to comply with the provisions of Order XV, Rule 5, C.P.C., specifically failing to deposit the required interest, as found by the trial court.
  • Whether any amount was deposited by the applicant as security was a disputed question of fact; the amount was not admitted by the plaintiff and therefore could not be adjusted against the deposit required under Order XV, Rule 5.
  • The trial court validly and judiciously exercised its discretion in striking off the defence and there was no ground for condonation of non-compliance under the circumstances.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vimal Chand Jain v. Gopal Agrawal, AIR 1981 SC 1657 That the word "may" in Order XV, Rule 5 empowers the court to refuse to strike off defence even in absence of a representation by the tenant; the power to strike is discretionary. The Court referred to this decision to demonstrate that the power to strike off defence under Order XV, Rule 5 is discretionary and that the trial court may, on facts, decline to strike the defence.
Hari Shanker Kapoor v. IInd Additional District Judge, 1985 (2) LCD 274 Consideration of prior decisions regarding exercise of discretion under Order XV, Rule 5. The Court noted that this Court had taken earlier decisions into account and that, under the facts of that case, discretion exercised by the court below was not in consonance with law; used as contextual authority on discretion.
BriJ Lal v. VIIth Additional District Judge, Allahabad and others, 1995 AWC 50 Explained three aspects in which a court might decline to strike off a defence: (1) tenant moves for extension; (2) deposit made after lapse and representation made; (3) no written representation but material exists on record to refuse striking off. The Court relied on this decision to outline situations where the court may exercise discretion against striking off defence and used those aspects to analyze the present facts (no application, no deposit of interest, no admissible security).
Shiv Prasad v. Special Judge, Allahabad, 1996 ACJ 160 Authority concerning striking off of defence under particular facts (an order striking off defence was quashed in that case). The Court cited this decision as another instance where, on its facts, an order striking off defence was quashed; used to show that outcomes depend on facts and discretion.
Smt. Kailash Devi v. IVth Additional District Judge, Allahabad and another, 1995 AWC 50 Illustrated that deposit required by Order XV, Rule 5 must be of the amount specified and a claimed security not admitted by the plaintiff cannot be adjusted towards the deposit required by the rule. The Court relied on this decision to hold that the petitioner's claimed deposit of Rs. 5,000 (not admitted by the plaintiff) could not be set off against the deposit required under Order XV, Rule 5.
M/s. Umesh Industries and another v. IXth Additional District Judge, Ghaziabad and others, 1994 (2) ARC 157 Held that the tenant is liable to make deposit of monthly rent in time and cannot avoid the obligation by claiming the landlord owes him money. Quoted within a block of authority to support the proposition that tenants must make timely deposits and cannot excuse non-deposit by alleging creditor obligations of the landlord.
Bimal/Bimal Chand Jain v. Gopal Agrawal (reference in text) Same principle as above about the discretionary power (the text references this name variation in connection with the "may" in sub-rule (1)). The opinion quotes this line of authority to elaborate the three aspects in which discretion may be exercised and to emphasize that discretion may be refused or granted depending on facts (as recited in the opinion).

Court's Reasoning and Analysis

The Court began by setting out the wording of Order XV, Rule 5, C.P.C., including the requirement that in a suit by a lessor for eviction the defendant shall, at or before the first hearing, deposit the entire amount admitted by him together with interest at 9% per annum and thereafter regularly deposit monthly amounts due within a week of their accrual. The rule gives the court discretion (subject to sub-rule (2)) to strike off a defence for default in such deposits, and it allows the court to consider any representation made by the defendant within prescribed time limits.

The Court reviewed prior authorities and observed that no rigid, universal rule governs the exercise of the court's discretion under Order XV, Rule 5; each case must be decided on its facts and the court should avoid hyper-technicality. The authorities cited (including the Supreme Court decision in Vimal Chand Jain and decisions of this Court) demonstrate that the court may, in appropriate circumstances, decline to strike a defence despite non-compliance, for example where there is an application for extension, a deposit made after time coupled with representation, or other material on record persuading the court not to exercise the power to strike.

Applying these principles to the present case, the Court accepted the trial court's finding that the defendant did not pay the interest at 9% required on outstanding rent. The Court noted that (a) there was no application by the defendant for extension of time or permission to deposit the amount required by Order XV, Rule 5, (b) the claimed Rs. 5,000 deposit was never admitted by the plaintiff-respondent and therefore could not legally be treated as adjustment towards the statutory deposit of interest/arrears, and (c) there was no material on the record to support the defendant's contention that the security could be adjusted.

Because the prerequisites and the discretionary considerations described in the authorities were not met on the facts of this case, the Court concluded that the trial court did not commit an error of law or jurisdiction in striking off the defence. The Court also noted that the amount deposited under Order XV, Rule 5 can be withdrawn by the plaintiff, and if the respondents apply for such withdrawal the trial court must decide that application according to law.

Finally, as a matter of case management, the Court directed that the trial court decide the suit expeditiously and preferably within four months from production of a certified copy of this order.

Holding and Implications

Holding: The revision is DISMISSED WITH COSTS. The Court upheld the trial court's order dated 21.5.1985 striking off the defendant-applicant's defence under Order XV, Rule 5, C.P.C.

Implications:

  • The direct effect is that the trial court's order striking off the defence stands and this revision does not succeed; the defendant's defence remains struck off.
  • The respondents (plaintiffs) may apply to withdraw any amount deposited under Order XV, Rule 5; such application must be decided by the trial court in accordance with law.
  • The trial court was directed to proceed to decide the pending suit expeditiously, preferably within four months from the date a certified copy of this order is produced before it.
  • Broader precedent: The opinion applies existing principles about the discretionary nature of Order XV, Rule 5 and relies on earlier authorities, but it does not purport to lay down a new rule of law; the decision is applied to the facts of this case and does not announce a general alteration of prior principles.

    Pran Nath v. Dr. Chandra Prakash Saxena

    1. This defendant's revision arises out of a suit for ejectment and for recovery of arrears of rent, water tax and damages for use and occupation of the shop situated at Uikhimpur Kheri, (for short the 'shop in dispute') and is directed against the Judgment and order dated 21.5.1985 passed by IInd Additional District Judge/Judge, S.C.C., Lakhimpur Kheri, striking off the defence of the defendant-applicant under Order XV. Rule 5, C.P.C.

    2. Brief and relevant facts of the case are that the plaintiff-respondent filed S.C.C. No. 9 of 1983 for ejectment of the applicant from the shop in dispute and for recovery of arrears of rent etc.. on the ground of default, after serving the notice of demand and termination of tenancy. The suit was contested by the defendant-applicant, who has disputed rate of rent and pleaded that the amount of Rs. 5.000 was already deposited by him as security, if the said amount is adjusted in the amount of rent, he could not be held to be defaulter. During the pendency of the suit, application No. 44C was filed by the plaintiff-respondent, praying to strike off the defence, under Order XV, Rule 5. C.P.C. It was stated that the defendant-applicant failed to deposit the admitted rent and interest in accordance with the provisions of the aforesaid rule. Therefore, his defence was liable to be struck off. Said application was objected to and opposed by the defendant applicant, alleging that the rent for the period commencing from 1.9.1980 to 30.4.1985 was already deposited in the Court. Therefore, there was no question of striking off his defence, and that application filed by the plaintiff-respondent was liable to be rejected. After hearing the learned counsel for the parties. Court below allowed the application filed by the plain tiff-res port dent and struck off the defence of the defendant-applicant vide its judgment and order dated 21.5.1985. The Court below has recorded following finding in the impugned order :

    "5. The defendant did not deposit any interest 9% per annum on the amount of arrears of rent of Rs. 18,000 deposited by him on 13.8.1984. Thus, he failed to comply with the provisions of Order XV. Rule 5 (1). C.P.C. Thus, the defendant failed to make the deposits in accordance with the provisions of Order XV, Rule 5. C.P.C. and therefore the defence of the defendant is liable to be struck off. The application 44-C is allowed. The defence of the defendant is struck off under Order XV. Rule 5, C.P.C."

    3. It was in the year. 1985 that the above noted revision was filed in this Court. This Court entertained the revision and also granted interim order, staying the further proceedings in the suit. Since then, the proceedings of the suit are heldup.

    4. Learned counsel for the applicant vehemently urged that the Court below has acted illegally and with material irregularity, in striking off the defence of the defend ant-applicant, inasmuch as, amount of Rs. 5.000 was already deposited by the applicant, with the landlord, Said amount, if adjusted will cover the amount of interest. Therefore, there was no justification for the Court below to strike off the defence. It was also urged that the striking off the defence was discretionary for the Court below. Under the facts and circumstances of the case, the Court below should not have struck off the defence, as discretion should be exercised judiciously. It was also urged that this Court should condone the irregularity, if any, in payment of the amount of arrears of rent and interest and should permit the applicant to deposit the amount, if any, outstanding against him.

    5. On the other hand, learned counsel for the contesting respondent vehemently urged that the applicant having failed to comply with the provisions of Order XV, Rule 5, C.P.C.. has failed to deposit the amount of interest, as it is evident from the findings recorded by the Court below. Therefore, the Court below did not commit any error of law and jurisdiction in striking off the defence of the applicant. It was also urged that the question as to whether any amount was deposited by the applicant, as security or not. Is the disputed question of fact. At this stage, there is no question of adjustment of the said amount, towards amount of interest, which was required to be deposited under Order XV, Rule 5, C.P.C. It was submitted that the Court below has judiciously exercised its discretion, and defence has rightly been Struck off in the present case. It was further submitted that under the facts and circumstances of the present case, there arises no question of condonation of illegality committed by the applicant, in compliance of the provisions of Order XV, Rule 5, C.P.C.

    6. I have considered the submissions made by learned counsel for the parties.

    7. Order XV, Rule 5, C.P.C. provides as under :

    "5. Striking off defence on failure to deposit rent etc.--(1) in any suit by a lessor for the eviction of a lessee after the determination of his lease and for the recovery from him of rent or compensation for use and occupation: the defendant shall, at or before the first hearing of the suit, deposit the entire amount admitted by him to be due together with interest thereon at the rate of nine per centum per annum and whether or not he admits any amount to be due, he shall throughout the continuation of the suit regularly deposit the monthly amount due within a week from the date of its accrual, and in the event of any default in making, the deposit of the entire amount admitted by him to be due or the monthly amount due as aforesaid, the Court may subject to the provisions of sub-rule (2), strike off his defence.

    Explanation.--(1) (2) Before making an order for striking off defence, the Court may -consider any representation made by the defendant in that behalf provided such representation is made within 10 days, of the first hearing or of the expiry of the week referred.to in sub-section (1), as the case may be.

    (3) The amount deposited under this rule may at any time be withdrawn by the plaintiff :

    Provided that such withdrawal shall not have the effect of prejudicing any claim by the plaintiff disputing the correctness of the amount deposited.

    Provided further that if the amount deposited Includes any sums claimed by the depositor to be deductible on any. account, the Court may require the plaintiff to furnish the security for such sum before he is allowed to withdraw the same."

    8. A reading of the aforesaid rule reveals that power to strike off the defence of the lessee in a suit for eviction is discretionary with the Court, trying the suit. The Court may, under the facts and circumstances of a particular case, refuse to strike off the defence, in spite of non-compliance of the provisions of aforesaid rule. A reference in this regard may be made to the decision in Vimal Chand Jain v. Gopal Agrawal, AIR 1981 SC 1657.

    9. The above noted decision and other decisions on the point, were taken into consideration by this Court in Hari Shanker Kapoor v. IInd Additional District Judge, 1985 (2) LCD 274. Under the facts and circumstances of the said case, this Court came to the conclusion that the discretion exercised by the Court below was not in consonance of the law laid down by this Court and the Apex Court. Therefore, the impugned order could not be sustained. Decision in Vimal Chand Jain case (supra), again came up for consideration before this Court in BriJ Lal v. VIIth Additional District Judge, Allahabad and others, 1995 AWC 50. This Court was pleased to rule as under :

    "The learned counsel for the respondent submitted that even if there is no application for extension of time to deposit the rent and even there is no written representation made on behalf of the tenant, the Court may decline to strike off the defence. He placed reliance upon the decision of Bimal Chand Jain v. Gopal Agrawal, AIR 1981 SC 1657, wherein the Supreme Court held that the word 'may' used in sub-section (1) of Order 15 Rule 5 empowers the Court not to strike off the defence even in absence of representation by tenant, if on the facts and circumstances already existing on record he finds good reason for not striking off the defence. There may be three aspects :

    (1) The tenant moves application for extension of time to deposit amount. The Court may extend the same.

    (2) The deposit is made after lapse of time, but on representation being made the Court considering the circumstances may decline to. strike off defence under sub-rule (2) of Rule 5.

    (3) There is no written representation on behalf of the tenant but there is material on record which obliges the Court not to exercise the discretion in striking off the defence."

    10. Under the facts and circumstances of the said case, trial court struck off the defence, but the said order was set aside by the revisional court vide order dated 1.9.1981. This Court allowed the writ petition and quashed the order dated 1.9.1981 and upheld the order of the trial court striking off the defence.

    11. In Shiv Prasad v. Special Judge, Allahabad, 1996 ACJ 160. this Court under the facts and circumstances of the said case, quashed'the order dated 16.11.1984, whereby defence of the defendant-petitioner was struck off by the trial court.

    12. Thus, from the above noted decision, it is evident that each case will have to be decided on the facts of that case, no hard and fast rule, has so far been laid down for exercise of the powers under Order XV, Rule 5 of the C.P.C. It is. however, apparent that the Court should not be hyper-technical in exercise of the power under the said provisions.

    13. In the present case, according to the findings recorded by the Court below, amount of interest at tyhe rate of 9% per annum, on the amount outstanding against the applicant was not paid. In Brij Lal's case, (supra), this Court observed that there could be three aspects of the matter, while dealing with the question of striking off the defence, i.e., tenant could move application for extension of time to deposit amount, if the same was not deposited within time. The Court, on the application filed by the tenant, could extend the time. The deposit might be made after lapse of time and the Court could condone the delay and could decline to strike off the defence, and in cases where no written representation on behalf of the tenant is made, but there might be material on record, which may oblige the Court not to exercise the discretion in favour of the plaintiff-landlord. In the present case, amount of interest was not at all paid by the applicant, nor any application for extension of time or for permission to deposit the said amount was made. On the other hand, it was claimed that the amount of Rs. 5.000 was already deposited with the plaintiff-respondents, which could be adjusted towards the amount of interest. The alleged amount of security was never admitted by the plaintiff-respondent, and legally said amount could not be adjusted towards the amount of interest, which is required to be deposited under the aforesaid rules. A reference in this regard may be made to the decision in Smt. Kailash Devi v. IVth Additional District Judge, Allahabad and another, 1995 AWC 50, wherein in the similar facts and circumstances as of the present case, it was ruled as under :

    "The provisions of Order XV, Rule 5 of the Code of Civil Procedure as amended in Uttar Pradesh consists of two parts. In the first part, the tenant is liable to deposit the entire arrears of rent admittedly due on the date of first hearing along with 9% interest thereon. The second part lays down that the deposit has to be made of monthly amount due within a week from the date of accrual throughout the continuation of the suit whether or not the defendant admits the amount due. In M/s. Umesh Industries and another v. IXth Additional District Judge. Ghaziabad and others, 1994 (2) ARC 157, it was held that the tenant was liable to make deposit of monthly rent in time. He cannot take the plea that he was not liable to deposit the amount as the landlord/plaintiff owed money to him."

    14. In view of the aforesaid decision and in view of the fact that the deposit of Rs. 5,000 as security by the petitioner was not admitted by the contesting respondents. It was not open to the petitioner to claim that the amount deposited by him was liable to be adjusted in the amount' of rent, which is required to be deposited under Order XV, Rule 5 of the C.P.C.

    15. Thus, the Court below had no option, but to exercise the discretion judiciously and to strike off the defence, in accordance with the provisions of the aforesaid rule. Even in this Court, no application for permission to deposit the amount in question was filed by the defendant-applicant, it was only in the argument of the learned counsel for the applicant that the applicant was ready to deposit the amount of interest outstanding against him, but in support of the said submissions, there was no material on record. In view of the facts and circumstances of the present case. Court below did not commit any error of law or jurisdiction in striking off the defence of the defendant-applicant. The revision is. therefore, liable to be dismissed. Legally the amount deposited under the aforesaid provisions can be withdrawn by the landlord lessor. The respondents may apply for withdrawal of the said amount. If such an application is made, same shall be decided by the trial court in accordance with law. It is, further, provided that as the suit is pending since 1983, the trial court shall decide the suit expeditiously preferably within a period of four months from the date a certifled copy of this order is produced before it.

    16. With these observations, this revision is dismissed with costs.

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    Comments

    Pran Nath v. Dr. Chandra Prakash Saxena
    (Nov 12, 1998)