Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of Sub-section (1).
  • Sub-section (2) of Section 8
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of Sub-section (1).
  • Sub-section (2) of Section 8
Smart Summary

Factual and Procedural Background

The revision petitioners, who are landlords, initiated R.C.O.P. No. 2802 of 1984 in the Court of Small Causes, Madras, seeking recovery of possession on the ground of wilful default in payment of rent by the tenant from September 1963 to September 1984. The tenant contested the claim, asserting rent payment up to May 1984 and that she had requested the landlords to specify a bank for rent deposit, which went unanswered. The Rent Controller ordered eviction with three months' notice, holding wilful default. The tenant appealed in R.C.A. No. 382 of 1986, where the appellate authority reversed the eviction order, finding no wilful default. The landlords challenged this appellate order through the present revision petition.

Legal Issues Presented

  1. Whether the tenant committed wilful default in payment of rent despite alleged non-issuance of rent receipts by the landlords.
  2. The applicability and interpretation of Section 8 of the relevant Rent Act concerning issuance of rent receipts and procedures when landlords evade receipt of rent.
  3. Whether the appellate authority erred in setting aside the Rent Controller’s eviction order based on the tenant’s claim and evidence.

Arguments of the Parties

Landlords' Arguments

  • The tenant failed to pay rent of Rs. 50 per month from September 1983 to June 1984.
  • Issued notice (Ex.P-1) on 2.6.1984 demanding arrears and possession.
  • Testified through P.W.1 about non-payment of rent.

Tenant's Arguments

  • Denied liability for rent arrears by issuing reply notice (Ex.P-2) on 10.6.1984.
  • Claimed landlords were not in habit of issuing rent receipts.
  • Issued notice (Ex.R-1) on 25.7.1984 requesting specification of a bank for rent deposit, which landlords did not respond to despite acknowledgment (Ex.R-2).
  • Asserted landlords refused to accept rent sent during the disputed period.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Marudachala Udayar v. Dhandapani (1980) 1 M.L.J. 169 Interpretation of Section 8 of the Rent Act regarding issuance of rent receipts by landlords and procedural safeguards available to tenants when landlords refuse to accept rent or evade receipts. The court applied this precedent to emphasize that the tenant must follow statutory procedures under Section 8 when landlords evade rent receipts, and that absence of receipts does not automatically prove rent payment; proof is required. The court held that the appellate authority erred in ignoring these provisions.

Court's Reasoning and Analysis

The court analyzed the facts in light of Section 8 of the Rent Act, which mandates landlords to issue receipts for rent payments and provides tenants with a statutory mechanism to deposit rent in a bank if landlords refuse receipts. The tenant admitted that landlords never issued receipts and did not demand any. The court noted that although the tenant issued notices requesting specification of a bank for rent deposit, the landlords did not respond, and the tenant did not pay the full rent after receiving the eviction notice, only paying arrears post-litigation. The appellate authority’s reliance on the landlords' failure to produce receipt counterfoils and the tenant’s notices was found unsustainable. The court held that in absence of proof of payment, the presumption that rent was paid without receipts is inconsistent with the statutory framework. Consequently, the appellate authority erred in setting aside the eviction order.

Holding and Implications

The revision petition is allowed. The order and decretal order dated 12.2.1987 in R.C.A. No. 382 of 1986 are set aside, and the Rent Controller's order dated 30.7.1985 in R.C.O.P. No. 2802 of 1984 is restored. The tenant is given two months' time for eviction. No costs are awarded.

Implications: The decision reinstates the eviction order based on wilful default in rent payment, reinforcing the strict application of Section 8 of the Rent Act regarding rent receipts and tenant remedies. No new precedent is created beyond affirming existing statutory interpretations and procedural safeguards.

    N. Damodaran Naicker And Anr. v. Janaki Ammal

    1. The revision petitioners are the landlords in R.C.O.P. No. 2802 of 1984 on the file of IX Judge, Court of Small Causes, Madras. They instituted that action against the present respondent for recovery of possession on the ground that she has committed wilful default in payment of rent from September, 1963 till September, 1984. The tenant resisted the action contending that she had paid the rent upto May, 1984. In fact, on 25.7.1984 she had called upon the petitioners to specify the Bank wherein she could deposit the rents. However, the landlord never replied. Learned Rent Controller ordered eviction granting three months time holding that there was wilful default on the part of the tenant. The present respondent took up the matter in appeal before the appellate authority in R.C.A. No. 382 of 1986. The appellate authority took the view that non-payment of rent was not wilful and accordingly allowed the appeal and set aside the order of eviction passed by the Rent Controller. And this order is assailed by the landlords in this revision petition.

    2. It is the case of the landlords that the tenant has failed to pay rent which is Rs. 50 per month from September, 1983 till June, 1984. Thereupon they issued Ex.P-1 notice on 2.6.1984 calling upon her to pay the arrears of rent and vacate the premises. The second petitioner as P.W.1 speaks about the nonpayment of rent by the tenant. Whereas the tenant as R.W.1 states that she had issued Ex.P-2 reply notice on 10.6.1984 denying her liability. According to her, the landlords were not in the habit of issuing receipts. So, on 25.7.1984 she had issued Ex.R-1 notice calling upon them to specify the Bank wherein she could deposit the rent. The landlords refused to receive the rent sent by her during the period in question. And there is no reply from the landlords, Even though, they had received her Ex.R-1 notice as per Ex.R-2 acknowledgement. This has weighed with the appellate authority in taking the view that the landlords were not in the habit of issuing receipts. He has also held that failure of the landlords to produce the counterfoils of the receipts is also a circumstance which goes in support of the tenant's claim.

    3. However, it is significant to note that R.W.1 tenant has admitted in cross-examination that she never used to demand receipts from the landlords and nobody passed receipts. Where wilful default in payment of rents is alleged by the landlord and the answer of the tenant is that the landlords never issued receipts for the payment of rents, in Marudachala Udayar v. Dhandapani (1980)1 M.L.J. 169, Nainar Sundaram, J. has pointed out that to test the case of the parties in such a context, the court should first endeavour to apply the provisions of the very statute under which the proceedings are initiated for eviction. Very salutary provision is incorporated in the Act and that is Section 8. Under Section 8(1) of the Act, every landlord who receives any payment towards rent or advance shall issue a receipt duly signed by him for the actual amount of rent or advance received by him. And Sub-section (2) requires where a landlord refuses to accept, or evades the receipt of any rent lawfully payable to him by a tenant in respect of any building, the tenant has to issue a notice in writing to the landlord to specify within ten days from the date of receipt of the notice by him a bank into which the rent may be deposited by the tenant to the credit of the landlord. Under Sub-section (3), if the landlord specifies a bank as aforesaid, the tenant shall deposit the rent in the bank and shall continue to deposit in it any rent which may subsequently become due in respect of the building. If the landlord does not specify a bank as aforesaid under Sub-section (4), the tenant can remit the rent to the landlord by money order, after deducting the money order commission. So, if the landlord refuses to accept or evades the receipt of rent, the tenant is given a system of remedy which he can resort to under the said provision. The machinery provided by Sub-sections (2) to (5) can always be worked out. How the rents paid should be receipted is provided for in Section 8 of the Act. The landlord is enjoined to issue a receipt for the payment of the rents or advance. There is ample safeguard made for the tenant in case the landlord refuses to receive the rent or evades the receipt of the rent. This decision has also laid down that the receipt of the rent contemplated under Sub-section (2) of Section 8 must only be in accordance with the provisions of Sub-section (1). If the parties choose to adopt any other mode of payment and acknowledgement of the rents, they have to be content with the consequences, beneficial or otherwise, that may follow therefrom. Where wilful default in payment of rent is alleged by the landlord and the answer of the tenant is that the landlord never issues receipts for the payment of the rent, the Court cannot ignore the implications of Section 8 and assess the controversy without reference to such implications. In the absence of proof of payment of rents, it will not be in consonance with the provisions of the Act to presume that the tenant must have paid the rents and the landlord must have declined to issue the receipts.

    4. It appears that in her reply Ex.P-2 dated 10.6.1984 the tenant has stated that the landlords are not in the habit of issuing receipts. And in Ex.R-1 notice dated 25.7.1984 also she has mentioned about the failure of the landlords to pass receipts. The landlords have not sent any reply to this notice repudiating the allegations. This factor has also weighed with the appellate authority in negativing the contention of the landlords. Needless to say that even after the receipt of Ex.P-1 notice the tenant has not chosen to pay the rent in entirety. Only after the institution of R.C.O.P. arrears of rent were paid. While so, it is evident, that the view of the appellate authority is unsustainable and it has erroneously set aside the order of the Rent Controller.

    5. In the result, the revision petition is allowed and the order and decretal order dated 12.2.1987 made in R.C.A. No. 382 of 1986 on the file of the appellate authority (VIII Judge, Court of Small Causes, Madras) are set aside and the order of the Rent Controller dated 30.7.1985 in R.CO.P. No. 2802 of 1984 (IX Judge, Court of Small Causes, Madras) is restored. Time for eviction two months. No costs.

    Use AI to get other relevant cases.

    Comments

    N. Damodaran Naicker And Anr. v. Janaki Ammal
    (Sep 12, 1994)