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  • section 11(1)(a) of the Bihar Buildings (Lease, Rent and Eviction) Control, Act, 1947 (Bihar Act III of 1947).2.
  • section 11(1)(a) the Act
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  • section 11(1)(a) of the Bihar Buildings (Lease, Rent and Eviction) Control, Act, 1947 (Bihar Act III of 1947).2.
  • section 11(1)(a) the Act
Smart Summary

Factual and Procedural Background

The petitioner, Chiranjilal Poddar, landlord of a building in Muzaffarpur, sought a writ in the nature of certiorari under Article 226 of the Constitution to quash an order of the Commissioner, Tirhut Division, refusing the petitioner's application for eviction made under section 11(1)(a) of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947 (Bihar Act III of 1947).

The opposite parties (nos. 1–3) were month-to-month tenants paying a monthly rent of Rs. 33/-. They allegedly failed to pay rent for the period corresponding to 28 June 1953 to 14 August 1954 (14 months). On 18 August 1954 the petitioner applied to the Controller, Muzaffarpur, under section 11(1)(a) for eviction for non-payment of rent.

The Controller ordered eviction on 24 January 1955. The tenants appealed to the Collector, who dismissed the appeal on 8 August 1955, agreeing that non-payment had been established. The tenants then sought revision to the Commissioner, and the Commissioner set aside the Collector's eviction order and disallowed the petitioner's eviction application. (The opinion contains two different references to the date of the Commissioner's order: the opening paragraph refers to the Commissioner's order as dated 28 November 1955, while a later paragraph refers to an order dated 28 August 1955.)

The tenants showed cause against the High Court rule and filed a counter-affidavit in response to the petitioner's affidavit. The petitioner moved the High Court for an appropriate writ to quash the Commissioner's order.

Legal Issues Presented

  1. Whether, on the admitted facts that the tenants were month-to-month tenants and had defaulted in payment of rent for the specified period, the petitioner was entitled to eviction under section 11(1)(a) of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947.
  2. Whether irregular payment or acceptance of rent in lump sums (irregular payment practice) by the landlord amounted to “non-payment of rent” within the meaning of section 11(1)(a) of the Act.
  3. Whether the Commissioner's decision on the question of non-payment of rent is a final finding of fact under the Act (notwithstanding any alleged error) and therefore not subject to challenge by writ of certiorari under Article 226.

Arguments of the Parties

Petitioner's Arguments (Mr. Nandlal Untwalia)

  • The tenants admitted they were month-to-month tenants and had not paid rent for the period 28 June 1953 to 14 August 1954.
  • Under section 11(1)(a) of the Act such non-payment made the tenants liable to eviction and the Controller's and Collector's orders for eviction should have been upheld by the Commissioner.
  • By disallowing the petitioner's application for eviction, the Commissioner refused to exercise the jurisdiction vested in him and committed a manifest error of law apparent on the face of the proceedings; therefore certiorari should issue to quash the Commissioner's order.
  • Relied on the Supreme Court decision in Waryam Singh v. Amarnath (AIR 1954 SC 215) to support the contention that where courts decline to exercise jurisdiction they may be compelled to do so.

Tenants' Arguments (Mr. Lal Narain Sinha)

  • The landlord habitually accepted rent for several months together (four or five months at a time), and although separate receipts were given for each month, the landlord's conduct evidenced an implied agreement to accept rent after the expiry of the relevant monthly periods.
  • Because of this implied arrangement, there was no “non-payment of rent” within the meaning of section 11(1)(a) of the Act.
  • It was contended further that the landlord had illegally enhanced the rent (from Rs. 18 to Rs. 24 in 1947 and then to Rs. 33 in 1948) and relied on section 4 of the Act to argue that, on proper accounting, there could be no non-payment; however, this contention was not raised before the courts below and was not pressed by the High Court as it was a factual point not properly before the Court on Articles 226/227 proceedings.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Brij Raj Krishna v. S.K. Shaw and Brothers, AIR 1951 SC 115 Holds that an irregular payment of rent may be tantamount to “non-payment of rent” within the meaning of section 11(1)(a); the question depends on the facts of each case. The court cited this principle and stated that whether irregular payment amounts to non-payment depends on the specific facts; it applied the factual inquiry to the parties' conduct here.
Bhagwan Das v. Dulari Jaiswal, AIR 1955 Pat. 142 (Division Bench) Division Bench decision consistent with the view that irregular payment may equal non-payment in certain factual contexts. The court relied on this authority to acknowledge that irregular payment can be treated as non-payment but reiterated that the determination is fact-specific and in this case the facts showed an arrangement inconsistent with “non-payment.”
Satyanarain Jhunjhunwala v. Mustafa Kamal Mohiuddin Akhtar, AIR 1954 Pat 24 Establishes that the Act entrusts the Controller (and, by extension, the appellate authorities under the Act) with jurisdiction to determine non-payment, and that findings under S.18(3) are final; a factual finding within the ambit of statutory jurisdiction is not open to challenge by certiorari. The court relied on this decision to hold that the Commissioner's finding on non-payment was a finding of fact within his jurisdiction and therefore final under S.18(3) of the Act and not subject to challenge by writ of certiorari.
Waryam Singh v. Amarnath, 1954 SCR 565 : AIR 1954 SC 215 Supreme Court decision where it was held that lower courts declined to do what was incumbent on them (order eviction) and thereby refused to exercise jurisdiction. The court distinguished this case: it held Waryam Singh inapplicable because in that case non-payment was admitted but excused by the tenant (waiting for fixation of fair rent) and the lower courts effectively refused to exercise jurisdiction; by contrast, in the present case the factual situation and the statutory finality of the Commissioner's finding made Waryam Singh irrelevant.

Court's Reasoning and Analysis

The court approached the matter by first identifying the statutory context: the words “non-payment of rent” in clause (a) of sub-section (1) of section 11 must be understood with reference to the definition of “month to month tenant” in section 2(a) and the Act as a whole. The Act itself does not fix the precise time for payment of rent; ordinarily rent is due at the close of the period for which it is payable, but this may be varied by express or implied contract or by the conduct of the parties.

The court emphasized that special contracts, express or implied, may make rent due at times different from the close of the period and that the time of payment depends on the express agreement between the parties or the implied agreement evidenced by conduct after the tenancy began.

Applying those principles to the facts, the court noted the undisputed practice that the landlord accepted lump-sum payments covering four or five months at a time, while nonetheless issuing separate receipts for each month (one such receipt with a foot-note was in evidence). The foot-note stated that if rent were unpaid for more than two months the landlord would have the right to get the house vacated. The court interpreted the landlord's conduct — the repeated acceptance of multi-month lump sums and separate receipts — as a waiver of the printed foot-note notice and as evidencing an arrangement that the landlord would accept rent after the close of individual months.

The court also recorded that the arrears were tendered on 19 August 1954 (the day after the application for eviction was filed) and the entire sum (Rs. 462/-) was deposited with the Controller on 26 August 1954. Therefore, at the time of the High Court hearing there was admittedly no rent due.

On the question of jurisdictional review, the court observed that the Act entrusts the Controller with jurisdiction to determine whether there has been non-payment of rent and to order eviction if appropriate, and that the Act makes such orders final subject only to the Commissioner. The court then relied on the Division Bench decision in Satyanarain Jhunjhunwala to hold that the Commissioner's finding on non-payment is essentially a finding of fact within the statutory scheme (S.18(3)) and is final; such a factual finding cannot be impeached by a writ of certiorari even if it were arguably wrong.

The court distinguished the Waryam Singh decision relied upon by the petitioner's counsel, stating that Waryam Singh involved a different factual context in which the lower courts admitted they were neglecting to perform their statutory duty; the present case did not fall within that paradigm.

Finally, the court declined to entertain the tenants' late-raised contention about illegal rent enhancement under section 4 of the Act because that point had not been taken before the courts below and was a factual question inappropriate for determination in an Article 226/227 proceeding at that stage.

Holding and Implications

Holding: The rule nisi was discharged and the petition by the landlord was rejected; no writ issued to quash the Commissioner's order. (The court ordered that there would be no costs in the circumstances.)

Implications:

  • The direct effect on the parties is that the petitioner's application for a writ to quash the Commissioner's order was dismissed and the Commissioner's decision refusing eviction stands.
  • The court held that, in the factual circumstances of this case, the landlord's conduct (acceptance of lump-sum payments and issuing of separate receipts) evidenced an implied agreement that rent might be paid irregularly; consequently there was no “non-payment of rent” within the meaning of section 11(1)(a) of the Act.
  • The court reinforced that a Commissioner's factual finding on non-payment under the Act is final under S.18(3) and not subject to challenge by certiorari under Article 226, so long as the finding is within the statutory jurisdiction.
  • No broader change in law or new binding precedent was announced by this decision; the court applied existing authorities and statutory construction to the facts and emphasized finality of statutory findings of fact. (The opinion did not state that it was creating any new precedent beyond its application of existing case law and statutory provisions.)

Disposition recorded in the opinion: Rule discharged. No order for costs. Ramaswami, C.J. concurred.

    Chironjilal Poddar v. Madhusudan Thakur And Others Opposite Party.

    Raj Kishore Prasad, J.:— In this case, the petitioner Chiranjilal Poddar, who is the landlord of a building in Muzaffarpur seeks a writ, in the nature of certiorari, under Article 226 of the Constitution to call us and to quash the order of the Commissioner, Tirhut Division, dated the 28th November, 1955, refusing the petitioner's application for eviction of the opposite party tenants, under section 11(1)(a) of the Bihar Buildings (Lease, Rent and Eviction) Control, Act, 1947 (Bihar Act III of 1947).

    2. Opposite party nos. 1 to 3, who are the tenants, have shown cause against the rule, issued by the High Court on the application of the petitioner, under Articles 226 and 227 of the Constitution, and have also filed a counter-affidavit in reply to the affidavit of the petitioner.

    3. The opposite party were month to month tenants of the holding belonging to the petitioner on a monthly rental of Rs. 33/-. The opposite party did not pay rent for the period from Asarh, Sambat 2010 up to Sarawan, Sambat 2011, for a period of 14 months, corresponding to the 28th June, 1953, to the 14th August, 1954, The Petitioner therefore, on the 18th August, 1954, applied under section 11(1)(a) the Act before the Controller, Muzaffarpur for eviction of the opposite party, on the ground, inter alia of non-payment of rent. The Controller by an order dated the 24th January, 1955, ordered eviction of the tenants-opposite party on the ground that they had defaulted in payment of rent. An appeal, against the above order by the opposite party to the Collector, was dismissed on the 8th August, 1955, as he agreed that non-payment of rent had been established and, therefore, eviction must follow as a matter of course. A revision was taken to the Commissioner by the tenants, opposite party, and the learned Commissioner by his order dated the 28th August, 1955, set aside the order of the Collector ordering eviction, and disallowed the application of the petitioner for eviction of the opposite party. The Petitioner has moved this court and asked, for an appropriate writ against this order of the learned Commissioner.

    4. The only ground on which the order of the learned Commissioner has been attacked by Mr. Nandlal Untwalia, appearing for the petitioner, is that the opposite party, having admitted that they were month to month tenants, and, that they had not paid the rent for the period 28th of June, 1953, to the 14th August, 1954, were liable; to be evicted under section 11(1)(a) of the Act, and therefore, it was incumbent on the Commissioner to uphold the order of eviction passed by the first two courts; and by disallowing the petitioner's application for eviction, he has thereby refused to exercise jurisdiction vested in him by law, and, as such there is a manifest error of law on the face of the proceedings, and, a writ must go to quash the order of the Commissioner.

    5. In order to determine if the Commissioner has committed an error of law, which is apparent on the face of his order, it is necessary to know the case of the parties before the Controller.

    6. The Petitioner's case was that at times the opposite party tenants paid rent for four or five months on one date, but, the petitioner every time granted separate receipts for each month with a view to lay stress on the foot note of the receipt forms on which he used to grant receipts. One such receipt is annexure ‘A’ to the affidavit. In the foot-note, it is mentioned that if the rent of the house was not paid for more than two months, in that event the landlord will have the right to get the house vacated and the tenants will have no objection to the same.

    7. The case of the opposite party however, was that the landlord had been in the habit of taking rent for several months together, and as such there was an implied agreement or arrangement that the petitioner would accept the rent if, and when, paid by the opposite party, even after expiry of each month. It was, therefore, contended that in view of the arrangement between the parties it was clear that there had been no non-payment of rent within the meaning of section 11(1)(a) of the Act.

    8. The admitted position is that the arrears of rent were tendered on the 19th August, 1954, the very next day, of the filing of the application for eviction by the petitioner and on the refusal of the petitioner, the entire rent, to the extent of Rs. 462/- was deposited with the Controller on the 26th August, 1954, by a Chalan dated the 19th August, 1954. There is, therefore, at present, admittedly no rent due to the petitioner from the opposite party.

    9. It is now well settled, by the decision of the Supreme Court in Brij Raj Krishna v. S.K Shaw and Brothers AIR 1951 SC 115 (A), and by a Division Bench decision of this Court in Bhagwan Das v. Dulari Jaiswal AIR 1955 Pat. 142 (B), that an irregular payment of rent may be tantamount to “non-payment of rent” within the meaning of S. 11(1)(a) of the Act. The question whether irregular payment of rent amounts to non-payment of rent, or no within the meaning of cl. (a) of sub-s. (1) of S. 11 of the Act, would, therefore, depend on the facts of each particular case.

    10. The meaning and effect of the words “non-payment of rent” occurring in Cl. (a) of sub-S. (1) of Section 11 of the Act can be better learned from the provisions of the Act itself. The words “month to month tenant” have been defined in S. 2(a) of the Act as meaning a tenant holding a lease of a building from month to month, or for an unspecified period. We have, therefore, to determine the meaning of the words “non-payment of rent” with reference to the definition of “month to month tenant”. The Act does not provide the time of payment. The point of time, from which, under the Act, the right of the landlord to apply for eviction of his tenant is to accrue, is which the arrear of rent becomes due, which would mean the date when there has occurred “non-payment of rent”.

    11. In most cases, no doubt, the point of time at which rent becomes due is the close of the period in respect of which it is to be paid. But this is not necessarily always the case. Special contract, either express or implied may make a rent due at a point of time different from the close of the period in respect of which it is to be paid. What, therefore, should be the time of payment would depend upon the express agreement between the parties, or on an implied agreement as evidenced by the conduct of the parties in course of their dealing, inter se after the inception of the tenancy.

    12. In the present case it was admitted that the landlord used to accept rent in one lump after four months, or sometime even after five months, although no doubt he used to grant receipts for each month separately. It is clear, therefore, that he waived the notice which was mentioned at the foot note of his rent receipts. The very fact that in the foot-note lie mentioned that in default of payment of rent, for more than two months the tenants would be liable to be evicted clearly goes to show that the landlord agreed to accept the rent not at the close of every month, nor at the close of even two months, but thereafter. The conduct of the landlord also clearly supports the arrangement agreed to between the parties, and as such it cannot be said that there had been, in the special circumstances of the present case, a non-payment of rent within the meaning of S. 11(1)(a) of the Act.

    13. The Act has entrusted the Controller with a jurisdiction, which includes the jurisdiction to determine whether there is non-payment of rent or not as well as the jurisdiction on finding that there is non-payment of rent to order eviction of a tenant. The Act empowers the Controller alone to decide whether or not there is non-payment of rent, and it expressly makes his order final, subject only to the decision of the Commissioner. Therefore, even if the Commissioner may be assumed to have wrongly decided the question of non-payment of rent, which by no means is clear, his order cannot be questioned. Such a question is essentially a question of fact, and therefore, the finding on the question of non-payment of rent by the Commissioner, being within the ambit of his jurisdiction, is a finding of fact which cannot be questioned, even if wrong. His decision is final under S. 18(3) of the Act, and, therefore, it cannot be questioned even by a writ of certiorari. This view was taken by a Division Bench of this Court in Satyanarain Jhunjhunwala v. Mustafa Kamal Mohiuddin Akhtar, AIR 1954 Pat 24 (C).

    14. The Supreme Court decision in Waryam Singh v. Amarnath, 1954 SCR 565 : (AIR 1954 SC 215) (D), relied upon by Mr. Untwalia has absolutely no application to the facts of the present case, as in that case it was admitted by the defendant that there was non-payment of rent but he pleaded that it was due to the fact that he was waiting for the fixation of fair rent by the Rent Controller, and, as such there was not enough ground for ejectment. In such circumstances it was held by the Supreme Court that the lower courts realised the legal position but in effect, declined to do what was incumbent on them to do and order eviction, and thereby refused to exercise jurisdiction vested in them by law.

    15. The contention of Mr. Lal Narain Sinha, who appeared for the tenants opposite party that the landlord waived the printed notice at the foot note of the printed receipts, and, permitted the tenants opposite party to pay according to their convenience, and that such a question was purely a question of arrangement between the parties, must therefore, be upheld.

    16. Mr. Sinha raised a further point that it was admitted by the Petitioner that the original rent was Rs. 18/- per month, but it was increased to Rs. 24/- in 1947, which also was further increased to Rs. 33/- in 1948, and, therefore, he contended relying on S. 4 of the Act, that such an enhancement of rent was illegal, and, therefore, on proper accounting, there can be no non-payment of rent. This question, however, was not raised before any of the courts below, and, as such, at this late stage, it would not be proper to take notice of such a plea, which being a question of fact cannot be investigated by this Court, in a proceeding under Article 226, or Article 227 of the Constitution.

    17. I would, accordingly, discharge the rule, and reject the application of the petitioner, as no case has been made out for issuing any writ whatsoever.

    18. In the circumstances of the case, there will be no order for costs.

    19. Ramaswami, C.J:— I agree.

    P.R.R

    20. Rule discharged.

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    Chironjilal Poddar v. Madhusudan Thakur And Others Opposite Party.
    (Nov 21, 1956)