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  • SECTION 12 BOMBAY RENTS HOTEL AND LODGING HOUSE RATES CONTROL ACT 1947
  • Maharashtra Education. (Cess) Act (Maharashtra Act No. XXVII of 1962).
  • provisions contained in section 12(3)(a) of the Rent Act
  • provisions of section 13(1)(b) of the Bombay Rent Act.(c)
  • provisions of section 12(3)(b) of the Rent Act
  • section 12(3)(b) of the Bombay Rent Act.18.
  • ARTICLE 227 CONSTITUTION OF INDIA
  • Maharashtra Education Cess Act, 1962
  • section 12(3)(a) of the Rent Act
  • provisions of section 12(3)(a)
  • section 12(3)(b)
  • section 13(1)(c)
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Citation Codes
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citation codes
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  • SECTION 12 BOMBAY RENTS HOTEL AND LODGING HOUSE RATES CONTROL ACT 1947
  • Maharashtra Education. (Cess) Act (Maharashtra Act No. XXVII of 1962).
  • provisions contained in section 12(3)(a) of the Rent Act
  • provisions of section 13(1)(b) of the Bombay Rent Act.(c)
  • provisions of section 12(3)(b) of the Rent Act
  • section 12(3)(b) of the Bombay Rent Act.18.
  • ARTICLE 227 CONSTITUTION OF INDIA
  • Maharashtra Education Cess Act, 1962
  • section 12(3)(a) of the Rent Act
  • provisions of section 12(3)(a)
  • section 12(3)(b)
  • section 13(1)(c)
Smart Summary

Structured Summary of the Opinion (Desai, J.)

Factual and Procedural Background

The writ petitioners are the owners (landlords/trustees) of Nesbit Hall, Mazgaon, Bombay. The respondent is a tenant inducted in September 1960 under an express lease agreement.

In 1966 the landlords filed R.A.E & R. Suit No. 105/1002 of 1966 seeking possession of the premises on multiple grounds summarized in the plaint (four principal grounds were emphasised before the High Court): (a) breaches of tenancy terms; (b) erection of a permanent structure in breach of section 13(1)(b) of the Bombay Rent Act; (c) nuisance; and (d) arrears of rent exceeding six months.

The defendant (tenant) traversed the averments; evidence was led at trial. The trial Court accepted the landlords' contention regarding erection of a permanent structure and granted eviction. The Appellate Bench of the Small Causes Court allowed the tenant's appeal. Aggrieved, the landlords filed the present writ petition under Article 227 challenging the Appellate Bench's decision.

Legal Issues Presented

  1. Whether the tenant had erected a permanent structure on the demised premises in contravention of section 13(1)(b) of the Bombay Rent Act and whether that entitled the landlords to eviction.
  2. Whether the alleged acts amounted to nuisance within the meaning of section 13(1)(c) and whether that ground could sustain eviction (including the question whether a new conception of nuisance, as in Gulam Husain Mirza, could be raised at this stage).
  3. Whether the tenant's conduct in relation to repairs (where the lease placed repair obligations on the tenant and the tenant later sought reimbursement and withheld two months' rent) amounted to breach of the tenancy entitling eviction.
  4. Whether arrears of rent existed for more than six months and, if so, whether the landlord's notice and the tenant's response invoked section 12(3)(a) or section 12(3)(b) of the Rent Act — specifically whether the rent (including an additional claimed sum of Rs. 9.50 described as State education cess) was "payable by the month" so as to bring section 12(3)(a) into play.

Arguments of the Parties

Appellant-Landlords (as represented by Mr. Dalvi)

  • Contended the tenant erected a permanent structure (a wall) without written consent, entitling landlords to possession under section 13(1)(b).
  • Asserted a nuisance ground to support eviction (though this ground had been dropped at trial).
  • Argued that the tenant breached an express term of the lease by calling on the landlord to effect repairs, carrying out repairs himself, claiming reimbursement and withholding two months' rent.
  • Maintained that arrears had existed for more than six months; contended the trial Court erred by not applying the law as set out prior to the Supreme Court’s Harbanslal decision; urged that section 12(3)(a) should apply (i.e., rent must be payable by the month), and complained that the Appellate Bench wrongly accepted the tenant’s contention that the claim was covered by section 12(3)(b).
  • Argued prejudice because the tenant’s counsel raised, for the first time in appeal, that Rs. 9.50 in the notice represented State education cess and not monthly rent; submitted the tenant should have pleaded that point earlier and thus been precluded from relying on it in appeal.
  • Suggested the tenant should have paid the arrears at Rs. 350 per month and deferred contesting the additional Rs. 9.50 per month.

Respondent-Tenant (as represented by Mr. Tunara)

  • Contended the case fell under section 12(3)(b) of the Rent Act and not section 12(3)(a); if section 12(3)(b) applied the tenant had complied with its requirements.
  • Argued that the construction (the wall) was not a permanent structure attributable to the tenant and that on probabilities the wall was likely constructed by the landlords at or before the commencement of the tenancy.
  • For the first time in the appeal, asserted that the additional amount claimed (Rs. 9.50) was for the State education cess (not part of monthly rent), thereby affecting whether the entire rent was "payable by the month."
  • Advanced the submission (before the High Court) that rent being payable in advance did not necessarily exclude it from being regarded as "payable by the month" — a contention the High Court considered in assessing the lower courts' reasoning.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Harbanslal Jagmohandas v. Prabhudas Shivlal, (1977) 1 SCC 575 (A.I.R. 1976 S.C. 2005) Supreme Court decision considered relevant to cases of arrears and protection under section 12(3)(a) of the Rent Act. The Court observed that the present case was prima facie governed by this decision if section 12(3)(a) applied; however, once part of the rent (education cess) was shown to be not payable monthly, Harbanslal's approach did not apply and the Appellate Bench's view (that section 12(3)(b) governed) was accepted.
Gulam Husain Mirza v. Laxmidas Premji, 1984 M.L.J. 215 (Single Judge) Addressed an expanded conception of nuisance as a ground for eviction. The High Court treated the attempt to resurrect a nuisance plea (which had been dropped at trial) as inadmissible; observed that the concept of nuisance in that decision appeared contrary to established tort law and considered any comments on it to be obiter in the present matter.
Marwanji v. Union of India, (1979) 4 SCC 734 (A.I.R. 1979 S.C. 1309) Authority where eviction followed because tenants allowed premises to be wasted in breach of express repair obligations. The Court distinguished this authority: it supports eviction where there is substantial waste or failure to repair, but does not stand for the proposition that mere demands or claims for reimbursement (even if untenable) constitute breach of tenancy.
Muktabai Gangadhar v. Muktabai Laxman, 71 Bom. L.R. 752 Held that the State education cess under the Maharashtra Education (Cess) Act, 1962, is part of the rent within the meaning of the Bombay Rent Act (not described as "deemed rent"). The Court relied on this holding to consider whether any part of the rent was not payable monthly; concluded that if a part is not payable monthly, the whole rent cannot be said to be payable by the month and thus section 12(3)(a) would not apply.
Bablu v. Ladharam, 80 Bom. L.R. 310 Considered the situation where arrears related only to the State education cess and held that the cess was not a monthly payment (and the proceedings were considered in that context). The opinion noted this decision and the factual distinction: Bablu concerned arrears only of the cess. The Court considered whether its observations limited to that factual matrix would apply to the present mixed-claim case and found those observations not determinative here.
Dayalal Gangarem v. Bhimani Bhupat Rai, (1977) 18 Gujarat L.R. 349 Division Bench held that where education cess forms part of rent and is not payable monthly, the rent is not payable by the month; accordingly section 12(3)(b) applies. The High Court considered this decision supportive of the view that the presence of a non-monthly component (education cess) takes the claim outside section 12(3)(a); this strengthened the Court's conclusion that section 12(3)(b) applied.
Jethalal Harjivandas v. Hasanand Tulsidas, (1977) 2 All India Rent Control Journal p. 42 Held that where a tax component (Panchayat tax) forms part of rent and is payable yearly, section 12(3)(a) would not be attracted. The Court cited this as consistent authority that a small or insignificant non-monthly portion of rent still takes the case out of section 12(3)(a) absent an express agreement to the contrary.
Chahganlal v. Narayan, 1983 Mah. L.J. 254 Referenced in connection with arrears and the applicability of section 12(3)(a) and section 12(3)(b). The Court stated that Chahganlal and Harbanslal have no application once it is held that the landlord's claim cannot be considered under section 12(3)(a); since the tenant complied with section 12(3)(b), those authorities were not controlling here.

Court's Reasoning and Analysis

The Court proceeded issue by issue, applying statutory language, facts found by the lower courts and relevant authorities. The principal steps of analysis are recorded below in the sequence addressed by the judgment.

1. Nuisance

The nuisance ground had been expressly dropped in the trial Court. The High Court declined to permit the writ petitioner to revive a different nuisance plea at this stage. The Court observed that the new conception of nuisance (as in Gulam Husain Mirza) was a different aspect and, if considered, would be obiter in this case. The Court further noted that the concept in that decision appeared contrary to established tort principles and that section 13(1)(c) refers to nuisance to "adjoining or neighbouring occupiers," which requires a different analysis. The Court therefore refused to decide the nuisance point substantively in this matter.

2. Permanent Structure (section 13(1)(b))

Under the Bombay Rent Act the landlord bears the onus of proving that the tenant, without written consent, erected a permanent structure. The trial Court accepted the landlords' evidence and found the wall was likely constructed by the tenant; the Appellate Bench reached the opposite factual conclusion, finding that the wall was likely constructed by the landlords at or before the tenancy commencement.

The High Court held it was not appropriate to interfere with the Appellate Bench's factual conclusion. The Court emphasised that it should not undertake a fresh appraisal of evidence under Article 227 unless the lower court's conclusion is perverse or shocks the conscience. Because the Appellate Court's factual conclusion was a possible view on the evidence, interference was unwarranted.

3. Breach of Tenancy Terms (repairs and withholding rent)

The lease contained an express term making the tenant responsible for repairs. The landlords argued the tenant had acted contrary to this by calling on the landlord to repair, carrying out repairs and seeking reimbursement, and withholding two months' rent.

The Appellate Bench found that a mere demand or claim (even if untenable) does not, by itself, amount to a breach of the terms of tenancy. The High Court relied on the Supreme Court decision in Marwanji (where eviction followed only where the tenant allowed premises to be wasted) to distinguish the present facts: Merwanji supports eviction where there is substantial waste or failure to repair; it does not rule that mere assertion or requisition in defiance of contract is itself sufficient. Accordingly, the Court held the conduct in this case did not justify eviction on this ground.

4. Arrears and Applicability of section 12(3)(a) v. section 12(3)(b)

The central disputed legal question in relation to arrears was whether the landlord's notice claimed rent "payable by the month" within section 12(3)(a), or whether the case fell under section 12(3)(b). The landlords' notice claimed a consolidated sum of Rs. 359.50 (Rs. 350 agreed monthly rent plus Rs. 9.50 alleged to be State education cess). The tenant first argued in the Appellate Court that Rs. 9.50 represented the education cess.

The High Court analysed authorities (Muktabai, Bablu, Gujarat Division Bench decisions) and concluded that if any part of the rent is not payable monthly (for example, an education cess payable on a different periodicity), then the whole rent cannot be said to be "payable by the month" within the meaning of section 12(3)(a). The Court accepted the Appellate Bench's conclusion that the presence of the education cess component meant section 12(3)(a) did not apply and that section 12(3)(b) governed. It also found no demonstrable prejudice to the landlords from the tenant first raising the point in the appeal; the landlords had an opportunity to give instructions and did not do so.

Because the tenant had complied with the requirements of section 12(3)(b), the Court held the tenant was protected despite arrears having been due for more than six months at the time of demand. Thus Harbanslal and related authorities dealing with section 12(3)(a) were inapplicable on the facts once the rent was not payable by the month in its entirety.

5. Standard of Interference under Article 227

The Court reiterated the limited scope of interference under Article 227: it should not supplant the factual conclusions of the superior Appellate Bench unless the conclusion is perverse or shocks the conscience. The Appellate Bench's factual conclusions on the permanent structure and other factual matters were acceptable as possible views on the evidence.

Holding and Implications

Holding: The writ petition failed and the High Court declined to interfere with the decision of the Appellate Bench. The rule is discharged with costs; the Appellate Bench's order in favour of the tenant stands.

Implications:

  • Direct effect: The Appellate Bench's judgment (allowing the tenant's appeal) is upheld and the landlords' attempt to obtain eviction via the writ petition has failed. The tenant remains protected under the Appellate Court decision.
  • On the statutory point considered in this opinion: where any part of the rent consists of an element that is not payable by the month (for example, an education cess payable on a different periodicity), the entire rent cannot be characterised as "payable by the month" for the purposes of section 12(3)(a); in such cases section 12(3)(b) may apply and, if complied with, will protect the tenant. This was the Court's conclusion in the present facts, relying on earlier decisions cited in the judgment.
  • The Court emphasised that mere, untenable claims or demands by a tenant (for reimbursement) do not automatically constitute a breach of tenancy; substantial non-performance (such as allowing premises to be wasted) is required to justify eviction on the breach ground, per the authorities discussed.
  • The Court declined to adopt or apply a broadened concept of nuisance (as advanced in one Single Judge decision) in the present matter, treating such observations as obiter and emphasising traditional requirements for nuisance under tort law and section 13(1)(c).
  • No new legal precedent was purportedly laid down beyond the conclusions drawn from application of existing authorities and statutory interpretation in the context of the facts before the Court.
Order accordingly: Rule discharged with costs.

    Awabai Muncharji Cama And Others v. M.N Kaka Opponent.

    Desai, J.:— The writ petitioners are the owners of a property called Nesbit Hall situated at Nesbit Road, Mazgaon, Bombay. The respondent is a tenant inducted in September 1960 under an express agreement of lease. In 1966 the landlords filed R.A.E & R. Suit No. 105/1002 of 1966 claiming from the tenant (respondent before me) possession of the suit premises on several grounds as stated in the plaint. These grounds are summarised in para 8 of the plaint. I will only indicate the four grounds urged before me in the Writ petition since the landlords who succeeded in the trial Court failed in the appeal.

    2. Aggrieved by the decision of the Appellate Bench of the Small Causes Court allowing the tenant's appeal, the landlords (original trustees) have filed the writ petition.

    3. The grounds on which eviction of the tenant was sought and the possession of the premises claimed are as under:—

    (a) That the tenant had committed breaches of the terms and conditions of tenancy.

    (b) That the tenant had erected a permanent structure in the suit premises in breach of the provisions of section 13(1)(b) of the Bombay Rent Act.

    (c) That the defendant-tenant had committed nuisance.

    (d) That the defendant-tenant was in arrears of rent for more than six months and had failed and neglected to pay the same inspite of a demand in that behalf.

    4. Needless to say the averments in the plaint were traversed by the defendant in his written statement. Necessary evidence was led on various aspects of the matter before the trial Court and the trial Court upheld the landlord's contentions on the ground that the tenant had erected permanent construction and the landlords were accordingly entitled to evict the tenant from the portion demised to it.

    5. As far as the ground of arrears of rent was concerned, it is the admitted position that the tenant had not paid up the arrears claimed within one month of receipt of the landlord's notice but had immediately deposited all the arrears in the Court after the filing of the suit. As far as this ground is concerned on the factual findings as found by the Court of Small Causes prima facie the case would seem to be governed by the Supreme Court decision in 1(Harbanslal Jagmohandas v. Prabhudas Shivlal), (1977) 1 SCC 575 : A.I.R 1976 S.C 2005. However, Mr. Tunara who appeared on behalf of the appellant-tenant before the Appellate. Bench submitted that the case was not covered by the provisions of section 12(3)(a) but by the provisions of section 12(3)(b) of the Rent Act and if it is so, the entire basis of the approach in Harbanslal's case and the subsequent decisions would not be applicable to the present case. It appears to be the admitted position that if section 12(3)(b) were to apply and not 12(3)(a) then the tenant had complied with the requirements of the said section as presently construed by the Courts.

    6. The Appellate Court allowed the appeal of the tenant holding (a) that the so-called permanent construction, namely the wall could not be regarded as one and (b) that on the evidence led on the point and on the probabilities, the wall was likely to have been constructed by the landlords at or before the time of the commencement of the present tenancy. I propose to deal with the question of nuisance and permanent construction at the outset.

    7. The claim of nuisance as alleged in the plaint was expressly dropped in the trial Court but an attempt was made by Mr. Dalvi to resurrect the same before me in view of the decision of the learned Single Judge of this Court in 2(Gulam Husain Mirza v. Laxmidas Premji), 1984 M.L.J 215. This is totally a new aspect of the matter which cannot be permitted to be raised after the plea on the point of nuisance was expressly dropped. The nuisance as now urged before me is different from what was pleaded and the contention seems to be that if the tenant trespasses upon or attempts to trespass upon or obstruct the landlord in enjoyment of any premises or part of premises or land other than the demised premises, the same would constitute nuisance and may entitle the landlord to a Decree for eviction. A similar plea seems to have been upheld by the learned Single Judge who decided Gulam Husain Mirza's case. In my opinion, it is not open to the writ petitioner to take up this plea and hence whatever observations I may make upon the approach and ultimate conclusion in Gulam Husain's case would be clearly obiter. However, I am impelled to observe that the concept of nuisance as envisaged in the said case appears to be contrary totally to the well settled ideas of regarding nuisance under the law of torts. Further, in section 13(1)(c) the nuisance or annoyance is to the “adjoining or neighbouring occupiers”. Various interesting questions arise. The landlord may fall within the requirements of the statutory provision if he himself is occupying the adjoining property or premises but not otherwise. Further the nuisance or conduct complained of must be of such a character that it may cause nuisance or annoyance in general or at least to more than one person and this view seems to be supported by the use of the plural in the provisions whilst adverting to “neighbours” or “occupiers”. It is, however, unnecessary to consider Gulam Hussain Mirza's case further in the present matter.

    8. We now turn to the question of permanent structure. Under the Bombay Rent Act, it is for the landlord to establish that the tenant has, without the landlord's consent given in writing, erected on the premises any permanent structure. It is not necessary. In this matter to go into the interesting question which normally arises whether the structure complained of can or cannot be regarded as a permanent structure. The trial Court on the evidence mainly of the parties, since the two “independent” witnesses ware regarded as unsatisfactory, held that the wall was likely to have been constructed by the tenant and the Appellate Court came to a different conclusion. Mr. Dalvi has taken me through the relevant paragraphs of the two judgments. It is not possible to hold that the conclusion reached by the Appellate Court on the factum of construction is not a possible view and if that be so then the said conclusion does not, in my opinion, call for inter-ference in the writ Jurisdiction of the High Court, under Article 227 of the Constitution of India. Any fresh appraisal of evidence is not required or called for in the present case. Unless the conclusion is “perverse” as the expression is known to law or some statement or position taken which shocks or revolts the conscience of this Court this Court ought not to interfere. It is only the Appellate Bench, which is the superior Appellate Court (particularly when no further appeal is provided). For this Court to choose one factual conclusion over the other would be an impermissible extension of its superintendence jurisdiction. The power conferred on the High Court by the Constitution are indeed wide but are to be used sparingly and in deserving cases only. On this ground I must reject Mr. Dalvi's contention and hold that there is no warrant for interference with the decision of the Appellate Court on this point.

    9. We now turn to the third plea, namely, that there was a breach of the term of tenancy. Mr. Dalvi drew my attention to the express term in the document under which the premises were demised by which term all the repairs were expressly agreed to be carried out by the tenant. It was his submission that in defiance of the express provision the tenant called upon the landlord to carry out certain repairs and when this was not done, carried them out but claimed reimbursement. The tenant finally withheld or sought to withhold two months' rent for these repairs.

    10. The Appellate Bench of the Small Causes Court has dealt with this aspect of the matter holding that a mere demand or claim however untenable it may be and even assuming that it is in total defiance of the express obligation undertaken under the tenancy would not be tantamount to a beach of the terms of tenancy. Mr. Dalvi drew my attention to the decision of the Supreme Court in 3(Marwanji v. Union of India), (1979) 4 SCC 734 : A.I.R 1979 S.C 1309 where the tenant had allowed the premises to be wasted in breach of express obligation of repairs undertaken by them. An eviction decree followed. This decision is clearly distinguishable on facts and does not lay down that a mare assertion or requisition in defiance or of express contractual obligation would by itself amount to a breach of tenancy. However conduct violative of the term of tenancy of the nature indicated in Merwanji's case must certainly entitle the landlord to obtain an eviction decree against the tenant. To put it in other words if the tenant fails to repair the property demised to him or any portion and allows the same to be wasted or substantially damaged in violation of the express obligation undertaken by him under the lease agreement, then the landlord may be entitled to evict the tenant on this ground. However, the position would be different if the tenant carries out the repairs and then claims the costs of the same from the landlord which claim for re-imbursement may be untenable or unsupportable bearing in mind the express obligation incurred by the tenant under the lease agreement. Merwanji's case is good authority on the first point and has no application to the facts before us. On this ground also, the Writ Petition must fail.

    11. We finally come to the fourth point on which the landlords failed in both the Courts. According to Mr. Dalvi, the trial Court was in error in applying the law as accepted by this Court prior to the decision of the Supreme Court in Harbanslal's case. When this error was sought to be rectified in the appeal Court, the appeal Court according to him held that the case did not fall within the four corners of section 12(3)(a) but was covered by section 12(3)(b). The argument of Mr. Tunara advanced before the appeal Court, admittedly for the first time, is dealt with by the Appeal Court in paragraphs 29 and 30 of the Appellate Court Judgment. It may be mentioned that Mr. Tunara had also urged that since the rent (under the lease) was payable in advance, it was not “payable by the month.” The lower Court, according to his submission before me, fell into an error in not accepting the submission. With respect to this argument. I am not inclined to accept the submission. I am in agreement with the view expressed by the Appellate Bench which was to the effect that the rent must be regarded as payable by the month irrespective of whether it was payable in advance or on the expiry of the month. The point may have some bearing in connection with the computation of the period of arrears but in the instant case, the arrears were admittedly due for more than six months at the time when the demand was made by the landlord.

    12. The only relevant point which requires consideration is whether the Appellate Bench was right in holding that the case did not fall within the purview of section 12(3)(a) of the Rent Act and was therefore covered by section 12(3)(b) which latter provision was admittedly complied with by the tenant.

    13. Neither in correspondence nor in the pleadings had the tenant urged that the claim for rent in the notice was made of the sum of Rs. 350/- being the monthly rent agreed at the time of the lease agreement and Rs. 9.50 being on account of the State education cuss. However, when this plea was urged by Mr. Tunara for the first time in the Appeal Court, the learned Advocate appearing for the landlords was called upon by the Bench to indicate the basis of this additional claim of Rs. 9-50. He stated before the Court that he was not in a position to make any statement. The landlords were in Bombay. The premises were in Bombay. The account books which have been produced in the trial Court for a particular period were all in Bombay. Hence there was ample opportunity for the landlords to have given instructions to their Advocate to indicate the basis of the additional claim. Even before me, Mr. Dalvi has not been able to tell me that the sum of Rs. 9.50 was on account of some permitted increase other than the State educational cess. On the other hand the Appellate Bench has referred to Chapter XIII from Namavati's book which is well recognised in this city as being fairly accurate. Mr. Dalvi contended that the landlords had been prejudiced by the argument being allowed to be urged for the first time in appeal. He submitted that it was incumbent on the tenant to have pleaded that the additional amount was for the State education case. Prejudice cannot be urgued in the air prejudice must be demonstrated and in the instant case it is clear that there was no prejudice to the landlords by the plea not being specifically taken in the pleadings. Opportunity was given to them to meet the point which was not availed of. We are, therefore, required to proceed on the footing that the claim of the landlords indicated in their notice consisted of Rs. 350/- being the agreed rent under the deed of lease granted in September 1960 and Rs. 9-50 being the claim for the State education cess.

    14. The nature of the claim for such cess has been considered by this Court in two decisions. The first of these two decisions was that of the learned Single Judge in 4(Muktabai Gangadhar v. Muktabai laxman), 71 Bom. L.R 752. The education cess which the learned Single Judge was considering was tax levied and collected under the Maharashtra Education. (Cess) Act (Maharashtra Act No. XXVII of 1962). The learned Single Judge has on pp. 756-757 of the Report considered the provisions of sections 13, 14 and 15 of the said Act. He ultimately held, after considering these provisions, that the education cess payable under this Act is part of the rent within the meaning of that term as used in the Bombay Rent Act. It has to be noted that the learned Single Judge did not hold that this was something recoverable “as rent” or “deemed rent” but part of rent. The decision in Muktabai's case came to be considered by Jahagirdar, J., in the case of 5(Bablu v. Ladharam), 80 Bom. L.R 310. The facts of the case are interesting and may be referred to in some detail since a contention was made by Mr. Dalvi based on those facts. It would appear that in Bablu's case after the landlord's notice the tenant paid up the arrears of the agreed rent but failed to pay the arrears of the State education case that were due by him for a period of about 1 1/2 to 2 years. It was held by the learned Single Judge that the education cess which was recoverable by the landlord pursuant to the provision contained in the Maharashtra Education Cess Act, 1962 was obviously not a payment which was to be made monthly. The learned Single Judge was considering a case where the arrears due were only in respect of the State education cess and I was invited by Mr. Dalvi to hold that the observations at pp. 313 and 314 of the Report were restricted to such a case only i.e where the arrears claimed by the landlord were in respect of education cess only. In other words, his submission was that in the present case, on receipt of the notice by the landlord, the tenant ought to have paid off the arrears of rent at the rate of Rs. 350/- p.m and if he had done so then he would have been protected in respect of the balance claim of Rs. 9-50 (per month) by reason of the aforesaid decision in Bablu's case given by Jahagirdar, J.

    15. The difficulty in accepting the position seems to be caused by the fact that Bal, J., in Muktabai's case did not hold that the cess was notional rent or deemed rent or recoverable as rent but held that it became part of the rent. If that be so, where the rent consists of a part or portion which is not payable monthly can it be said that the rent is payable by the month? If a part of the rent is not payable by the month then certainly the rent (the whole of it) is not payable by the month, and it would seem to make no difference that the part which is not payable monthly is very small or insignificant when contrasted with the other tent or the other permitted increases which may be payable-monthly. If any part of the rent is not payable monthly, then it has to be held that rent which must mean the entire rent is not payable by the month.

    16. In my opinion, if section 12(3)(a) is to apply then the whole of the rent payable by the tenant must be payable by the month. The words are clear and admit of no other interpretation. In the view that I have taken I am strengthened by the observations in two Gujarat High Court decisions to which my attention was drawn by Mr. Tunara. The first of the decisions is in the case of 6(Dayalal Gangarem v. Bhimani Bhupat Rai), (1977) 18 Gujarat L.R 349. In the aforesaid case, the Division Bench of the Gujarat High Court was considering a question referred to it by the Single Judge. The question referred was as under:

    “In the absence of a contract between the landlord and the tenant as regards payment of the education cess by the tenant, would the amount of education cess form part of the rent payable by the tenant to the landlord so as to enable the Court to decide a case governed by section 12 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (hereinafter referred to as the ‘Rent Act’) whether the said rent is payable by the month or otherwise?”

    17. The Division Bench expressly held that the education cess would form part of the rent and that the Court would be constrained to hold that the rent was therefore not payable by the month and that therefore section 12(3)(a) would not be attracted. Muktabai's case has been referred to in the aoresaid decision. The Division Bench therefore, sent back the case to the learned Single Judge after expressing its opinion that the matter was covered by section 12(3)(b) of the Bombay Rent Act.

    18. In another case decided by the Gujarat High Court, the rent payable was fixed originally at Rs. 16/- and it was subsequently enhanced to Rs. 17-50 on a Panchayat Tax being imposed. It was held by the Division Bench of the Gujarat High Court in 7(Jethalal Harjivandas v. Hasanand Tulsidas), (1977) 2 All India Rent Control Journal p. 42 that since the payment of the Panchayat tax was part of the rent and since the said tax was payable yearly provisions contained in section 12(3)(a) of the Rent Act would not be attracted. Thus the quantum of rent which is not payable by the month is unimportant and it would appear to be establised that if any part of the rent is not payable monthly then in the absence of any specific agreement between the landlord and the tenant in that behalf, the legal position for payment of rent would take the case outside the purview of section 12(3)(a). It is not urged in the petition or orally that there was any suet) specific agreement. Mr. Dalvi only referred to the plaint and the notice given by the landlord in which a consolidated claim was made for Rs. 359-50. That cannot spell out any express agreement to the effect that the amount of Rs. 9-50 was agreed by the tenant to be paid monthly.

    19. Mr. Dalvi drew my attention to the decision of the Supreme Court in Harbanslal's case and subsequently to the decision of the Division Bench of this Court in 8(Chahganlal v. Narayan), 1983 Mah. L.J p. 254. The said decisions have no application to the present case once it is held that the landlord's claim for rent cannot be considered to be covered by section 12(3)(a). There is no dispute that the tenant has complied with the requirements of section 12(3)(b). If that view is correct then even if the tenant were in arrears for over six months and had not complied with the requisitions contained in the landlord's notice within a month thereof by full payment or making necessary application for fixation of standard rent, he would nevertheless be protected if he complies with the requirements indicated and provided for in section 12(3)(b).

    20. It is important to bear in mind in this connection that it was not alleged in the Advocate's notice or in the plaint that there was an express agreement for monthly payment of the permitted increase which would otherwise be payable annually. Indeed when the Advocate for the landlords was asked by the Appellate Bench about the nature of the claim of Rs. 9.50 which was a claim in addition to the agreed rent under the instrument of tenancy, he refrained from making any statement. It was not difficult for him to obtain instructions. He could have stated which he did not that the amount did not represent the state education cess or that there was an express agreement that it would be claimed monthly by the landlords and paid-monthly by the tenant. There is no grievance made in the petition that he sought time from the Division Bench to ascertain the facts or that such time though sought for was denied to him so that he was not in a position to make any statement. No particulars of any such agreement were even offered to me. Thus, this is also a plea urged for the sake of making a plea like the earlier plea on prejudice and lacking substance. No Such monthly agreement can be spelt out from the correspondence or from the pleadings of the parties. Such an agreement to pay monthly amount has to be specifically set out. Certainly if the landlords in the plaint had urged such specific agreement, written or oral, under which the tenant had agreed to pay all such permitted increase by equal monthly instalments along with the rent fixed under the writing and if the plea had not been specifically traversed the Court could have held that the rent was payable by the month and that the matter was thus covered by or fell within provisions contained in section 12(3)(a).

    21. Mr. Dalvi then urged that what the tenant ought to have done was to clear of the arrears at the rate of Rs. 350/- per month deferring the payment of the additional amount of Rs. 9.50 per month. I have already indicated my view that this is not a case where there is extra or excess rent claimed by the landlords. If that had been the position then the matter would be governed by the decision of the Division Bench in Chhaganlel v. Narayan, 1983 Mah. L.J 254. In the view that I have takent hat the rent was not payable by the month since it included a portion which was not payable by the month. I will have to hold that the Appellate Bench of the Small Causes Court was in no error in accepting Mr. Tunara's argument. I accordingly so hold.

    22. In the result, none of the pleas of Mr. Dalvi have any substance end the decision of the Appellate Court does not call for any interference by this Court. The result will be that the rule will stand discharged with costs.

    Order accordingly.
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