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Manoranjan Nath Patra v. Kashi Prasad Sah And Another Opposite Parties.
Structured Summary of the Opinion (Revision under Section 115 CPC)
Factual and Procedural Background
This is a revision petition under Section 115 of the Code of Civil Procedure filed by the defendant (petitioner) against an order made on an application under Section 11-A of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947 ("the Act"). The impugned order directed the petitioner to deposit arrears of rent from Baisakh 1373 B.S. to Bhado 1376 B.S. within 15 days at the rate of Rs. 77 per month, and to deposit future monthly rent (from Asin 1376 B.S. onwards) by the 15th of the succeeding month; failure would result in striking off the defence to eviction.
The plaintiff in the underlying suit claimed eviction on grounds of non-payment of rent and alleged sub-letting of part of the premises to another defendant. The plaintiff's case was that the petitioner was a month-to-month tenant of a municipal holding and had defaulted in payment of rent from Baisakh 1373 B.S. to Shrawan 1374 B.S., and a decree for arrears for that period was claimed.
The petitioner in his written statement denied certain allegations and asserted a chain of induction and assignment of tenancy, disputed the plaintiff's exclusive title, and asserted that earlier rents had been lower and that the Rs. 77 rate had been illegally enhanced. He also alleged that rent for certain months had been tendered and refused by the plaintiff.
Legal Issues Presented
- Whether the Subordinate Judge committed an error of jurisdiction in directing the petitioner, under Section 11-A of the Act, to deposit month-by-month rent at Rs. 77 per month when that rate was alleged by the petitioner to be an illegal enhancement (i.e., whether an order under Section 11-A can compel deposit at the "last paid" rate even if that rate may be unlawful under Section 4 of the Act).
- Whether the court below erred in directing the petitioner to deposit rent for months falling during the pendency of the suit (Bhado 1374 B.S. to Bhado 1376 B.S.) when, it was contended, the plaint did not claim those amounts.
Arguments of the Parties
Petitioner's (Defendant's) Arguments — as presented by Mr. S.C. Ghose
- The Subordinate Judge acted with material irregularity by directing deposit under Section 11-A at Rs. 77 per month, i.e., at the enhanced rate which the petitioner contended was unlawful.
- The Subordinate Judge erred in directing deposit of rent for the period Bhado 1374 B.S. to Bhado 1376 B.S. because those amounts had not been claimed in the plaint.
- Substantive legal submission: while a landlord must state the last rent paid in an application under Section 11-A, the statute does not compel the court to order deposits at that last-paid rate; the court must determine the rate to be deposited and may order deposit at a rate other than the last-paid rate.
- Reliance on Section 4 of the Act: an increase in rent contrary to the Act is unlawful; accordingly, a tenant cannot be ordered to deposit rent that is not lawfully payable. The word "lawfully" should be read into Section 11-A (as used in other provisions such as Section 11(1)(d)).
- Relied on a Bench decision in Nayan Chandra Das v. Smt. Bani Bose (Civil Revision No. 686 of 1969) for the proposition that if the court orders deposit under Section 11-A it must be at the fair rent determined by the House Controller under the Act.
Plaintiff's (Opposite Party's) Arguments — as presented by Mr. Kailash Roy
- The Subordinate Judge's interpretation of Section 11-A — that the court need only determine the last rent paid and order deposit at that rate — was supported by precedent, in particular S.M. Khalil v. A. Sitaram (AIR 1958 Pat 103).
- Even if alternate interpretations exist, the order below was not an exercise of jurisdictional error within Section 115 CPC and could not be set aside in revision; further, the precedent relied upon was binding.
- Relied upon Mahabir Ram v. Shiva Shanker Prasad (AIR 1968 Pat 415) (Full Bench) for the procedural approach on applications under Section 11-A and as a binding authority on the steps the court should take.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| S.M. Khalil v. A. Sitaram, AIR 1958 Pat 103 | Held that on an application under Section 11-A the court is not required to go into the question of fair rent; the enquiry should be limited to what was the rent last paid and the quantum of arrears according to that rate. | The opinion notes this decision but holds that so far as it mandates deposit at the rate actually last paid regardless of lawfulness it is not good law in view of the subsequent Full Bench decision in Mahabir Ram's case. |
| Mahabir Ram v. Shiva Shanker Prasad, AIR 1968 Pat 415 (Full Bench) | Outlined the procedure on an application under Section 11-A (including examining denial of landlord-tenant relationship and determining rate of rent last paid and arrears) and held that if fair rent is determined by the House Controller the deposit should be ordered according to that determined rate. | The Court treated this Full Bench decision as binding and decisive on the point that Section 11-A must be read with other provisions (e.g., Section 4) and that deposit cannot be ordered at an unlawful rate; this decision led the Court to set aside the order below and remand the matter. |
| Nayan Chandra Das v. Smt. Bani Bose, Civil Revision No. 686 of 1969 (Judgment dated 23-12-1969, Pat) | Observed that it is not mandatory for the Court to make an order for deposit of rent under Section 11-A; if the Court does order deposit, it should be at the fair rent determined by the House Controller under the Act. | The Court regarded this Bench decision as consistent with the Full Bench in Mahabir Ram and found it supportive of the petitioner's submission that Section 11-A must be read subject to Section 4 and related provisions. |
Court's Reasoning and Analysis
The court proceeded in a stepwise manner:
- First, the court considered the petitioner's contention that the Subordinate Judge erred in directing deposit of rent for months during the pendency of the suit which, the petitioner argued, were not claimed in the plaint. The court rejected this contention: arrears that fell due after institution of the suit but during pendency were not barred and the impugned order had been passed within three years of institution; therefore, directing deposit for those months was not erroneous.
- The court then examined the principal question whether ordering deposit at Rs. 77 per month (the rate last paid according to the plaintiff) constituted an error of jurisdiction because that rate was contended to be an unlawful enhancement in breach of Section 4 of the Act.
- The statutory text of Section 11-A was set out and interpreted in light of Section 4 of the Act. The court noted that Section 4 begins with the overriding phrase "Notwithstanding anything contained in any agreement or law to the contrary" and thus has overriding effect on agreements or claims to increased rent made otherwise than in accordance with the Act's statutory procedures.
- The court addressed the competing judicial authorities. It acknowledged S.M. Khalil's holding that the court on an application under Section 11-A need only ascertain the last-paid rent and arrears. However, the court regarded the Full Bench decision in Mahabir Ram (and the Bench decision in Nayan Chandra Das) as authoritative and holding that Section 11-A must be read in the context of the Act's other provisions (including the House Controller's role in determining fair rent). Where fair rent has been determined by the Controller, deposit must follow the Controller's determination rather than mechanical adherence to the last-paid rate.
- On that basis the court concluded that Section 11-A is not to be read independently of Section 4 and other provisions of the Act. Therefore, a court considering an application under Section 11-A must inquire, on the materials available, whether the rate at which rent was last paid was lawfully payable. The court found that the Subordinate Judge had failed to undertake this inquiry into the lawfulness of the Rs. 77 rate.
- Because the lower court did not exercise the jurisdiction vested in it to determine the lawfulness of the last-paid rate (having regard to Section 4 and related provisions), the order was set aside and the matter remanded for fresh disposal consistent with the opinion.
- The opinion records that Mukharji, J. agreed with the result.
Holding and Implications
Holding (core ruling):
Petition allowed; the order of the Court below is set aside and the matter remanded for fresh disposal of the application under Section 11-A of the Act.
Implications and consequences:
- The Subordinate Judge's order directing deposit of rent at Rs. 77 per month is quashed because the lower court failed to inquire whether that rate was lawfully payable in view of Section 4 of the Act.
- On remand, the court below must determine, on the basis of the materials before it, whether the rate last paid (Rs. 77) is lawful; where the House Controller has determined fair rent the deposit should be ordered in accordance with that determination; Section 11-A must be read with and subject to the other provisions of the Act.
- Direct, immediate effect on the parties: the earlier deposit directions are vacated and the matter must be reheard in the court below consistent with this opinion. The parties were directed to bear their own costs in this Court.
- The opinion treats existing Full Bench precedent (Mahabir Ram) and the Bench decision (Nayan Chandra Das) as binding on the point; it does not purport to create a new precedent beyond applying those authorities to set aside and remand the impugned order.
Note: This summary strictly reflects the content of the provided opinion and does not introduce information beyond the text of the judgment.
1. This application in revision under Section 115 of the CPC has been filed by the defendant against an order passed on the application under Section 11-A of the Bihar Buildings (Lease. Rent and Eviction) Control Act, 1947 (hereinafter referred to as the Act) of the plaintiff directing the petitioner to pay arrears of rent from Baisakh 1373 B.S to Bhado 1376 B.S within 15 days from the date of the order at the rate of Rs. 77/- per month. The court below further directed the petitioner to deposit the rent for Asin 1376 B.S and following months by 15th of the succeeding month. In case of default, either in payment of arrears of rent or of the current or future rent as directed, the defence regarding the eviction was to be struck off. Eviction in the suit was claimed on the ground of non-payment of rent as also for sub-letting a portion of the premises to defendant No. 2 opposite party No. 2. According to the case of the plaintiff, the petitioner was a month to month tenant of holding No. 16, ward No. 6 of Deoghar Municipality on a monthly rental of Rs. 77/-. He had defaulted in payment of rent from Baisakh 1373 B.S to Shrawan 1374 B.S A decree for arrears of rent for this period of 16 months was also claimed.
2. The case of the petitioner in his written statement was that the plaintiff was not the sole owner of the holding in question; rather, it belonged to one Mahabir Prasad Sah who had inducted Nagendra Nath Patra in this holding on a rental of Rs. 31/- per month. Nagendra Nath Patra who was doing business assigned the same to the petitioner who was his nephew. After the death of Mahabir Prasad Sab, the plaintiff and his brothers enhanced the rent to Rs. 35/- per month from 1347 B.S In 1357 B.S It was further enhanced to Rs. 60/- per month and then to Rs. 72/- per month in 1357 B.S and ultimately it was illegally enhanced to Rs. 77/- per month. The entire rent from Baisakh 1373 B.S to Chaitra 1374 B.S was paid to the plaintiff in 1967. The rent for Baisakh. Jeth and Asadh of 1374 B.S was tendered by the defendant to the plaintiffs but the latter refused to accept the same.
3. The court below has disbelieved the petitioner's case of payment of rent from Baisakh 1373 B.S to Chaitra 1374 B.S Mr. S.C Ghose learned counsel appearing for the petitioner, has raised the following points:
(i) The learned Subordinate Judge acted with material irregularity in directing the petitioner to deposit under Section 11-A of the Act rent at Rs. 77/- per month, the enhanced rate.
(ii) The learned Subordinate Judge was in error in directing the petitioner to deposit rent from Bhado 1374 B.S to Bhado 1376 B.S when the plaintiffs had not claimed the amount of rent in the plaint.
4. I propose to take up first the second contention of Mr. Ghose. Obviously there is no substance in it A decree for rent from Baisakh 1373 B.S to Shrawan 1374 B.S which had fallen in arrears with the petitioner before filing of the suit was claimed in it Rent which fell due after the institution of the suit could not have been claimed in that suit. A claim in respect of rent accruing due during the pendency of the suit had not become barred by limitation or any other law on the date of the impugned order which it appears, was passed with in three years of the institution of the suit. The petitioner cannot, therefore, successfully contend that the court below has committed any error in directing the petitioner to deposit rent for the period of the pendency of the suit.
5. The next and the only other question which arises for consideration in the case is whether the order of the court below directing the petitioner to deposit rent at the rate of Rs. 77/- per month which, according to him is enhanced rent, suffers from an error of jurisdiction and can be set aside. Section 11-A reads as follows:
“If in a suit for recovery of possession of any building the tenant contests the suit, as regards claim for ejectment, the landlord may make an application at any stage of the suit for order on the tenant to deposit month by month rent at a rate at which it was last paid and also the arrears of rent if any; and the Court, after giving an opportunity to the parties to be heard, may make an order for deposit of rent at such rate as may be determined month by month and the arrears of rent, if any and on failure of the tenant to deposit the arrears of rent within fifteen days of the date of the order or the rent at such rate for any month by the fifteenth day of the next following month, the Court shall order the defence against ejectment to be struck out and the tenant to be placed in the same position as if he had not defended the claim to ejectment. The landlord may also apply for permission to withdraw the deposited rent without prejudice to his right to claim decree for ejectment and the Court may permit him to do so. The Court may further order recovery of cost of suit and such other compensation as may be determined by it from the tenant.”
6. According to Mr. Ghose the Court below has misdirected itself in observing that in an application under Section 11-A of the Act, it has to determine only the last rent paid by the tenant. He submits that no doubt a landlord while applying under that section has to mention in the application the last rent paid by the tenant, but the section does not lay down that the Court would direct that tenant to deposit the arrears of rent at that rate. He urges that Section 11-A of the Act enjoins on the Court to determine the rate of rent at which a tenant would be directed to deposit month by month as also the arrears of rent in other words, according to him. Section 11-A does not preclude a Court where an application under that section is made to determine the rent to be deposited by the tenant at the rate other than the rate at which it was last paid. In support of his submission, he has also placed reliance on Section 4 of the Act which is as follows:
“Notwithstanding anything contained in any agreement or law to the contrary, it shall not be lawful for any landlord to increase, or claim any increase in the rent which is payable for the time being. In respect of any building except in accordance with the provisions of this Act”
7. He contends that in view of Section 4, the landlord can never claim rent which is increased otherwise than in accordance with the provisions of the Act which are contained in Sections 5, 6 and 7 of the Act as an increase in the rent by an agreement between the landlord and tenant is illegal. According to Mr. Ghose therefore, we should read the word “lawfully” before the words “last paid” in Section 11-A for “lawfully” has been used in S. 11(1)(d) of the Act and that if a tenant cannot be evicted for default in payment of rent which is not lawfully payable, he cannot be asked to deposit, in a suit for eviction, rent which is not lawfully payable under Sec. 11-A of the Act.
8. On the other hand, Mr. Kailash Roy learned counsel for plaintiff-opposite party has contended that even if two interpretations of S. 11-A of the Act are possible, one as contended by Mr. Ghose and another as given by the Court below which is supported by a Bench decision of this Court in S.M Khalil v. A. Sitaram, AIR 1958 Pat 103 the Court below cannot be said to have committed any error of jurisdiction within the meaning of Section 115 of the CPC and the Court cannot set aside that order in exercise of revisional jurisdiction. Mr. Roy has further submitted that the decision is binding upon us. In S.M Khalil's case, it has been held that the Court is not required to go into the question of fair rent on an application under Section 11-A of the Act and the only enquiry which the Court should make is as to what was the rent which was last paid by the tenant and what was the quantum of arrears of rent according to the rate of rent which was actually paid last in Mahabir Ram v. Shiva Shanker Prasad, AIR 1968 Pat 415 (FB), Tarkeshwar Nath, J. laid down the procedure which a Court has to adopt on an application under Section 11-A of the Act as follows:
“(a) In case the defendant denies the relationship of landlord and tenant between the plaintiff and himself, the Court has to examine the materials then available and come to a conclusion whether the said denial or a dispute as to the title of the plaintiff was bona fide or a mere pretence; and in case there is no prima facie merit in the said denial, the defendant can be called upon to make the deposit if other conditions are fulfilled.
(b) The Court has to determine as to what was the rate of rent last paid and as to what amount of rent was in arrear. If any? The order passed in this connection is subject to variation, inasmuch as the House Controller may determine during the pendency of the suit that the fair rent of the house is somewhat different.
The orders passed at the stage of the said application under Section 11-A are subject to the final decision on the very same questions in the suit.”
9. Mr. Ghose has submitted that the Full Bench does not approve of the decision in S.M Khalil's case, and, therefore, the Bench decision is not binding on us. He has placed reliance on an unreported Bench decision of the Court in Nayan Chandra Das v. Smt. Bani Bose, Civil Revision No. 686 of 1969, Judgment dated 23-12-1969 (Pat) wherein it has been observed that it is not mandatory for the Court to make an order for deposit of rent, but if the Court decides to make an order on the tenant to deposit month by month rent as also the arrears of rent, if any, it must be fair rent, if any determined by the House Controller under the provisions of the Act. He has submitted that this decision supports his contention that Section 11-A of the Act has to be read subject to other provisions of the Act and therefore, under that section rent cannot be ordered to be deposited at the rate it was last paid if it was unlawful and against the provisions of the Act.
10. In my opinion. Mr. Ghose is right in his submission. In case of conflict between Section 11-A and Section 4, even if it be assumed that under Section 11-A rent has to be deposited at the rate it was last paid. Section 4 must prevail for it starts with the expression “Notwithstanding anything contained in any agreement or law to the contrary” which is not there in Section 11-A. No doubt in S.M Khalil's case, AIR 1958 Pat 103 it has been held by a Bench of this Court that Court is not required to go into the question of fair rent on an application under Sec. 11-A of the Act and the only enquiry which the Court should make is as to what was the rent which was last paid by the tenant and what was the quantum of arrears of rent according to the rate of rent which was actually paid last but in my opinion, in view of the Full Bench decision in Mahabir Ram's case, AIR 1968 Pat 415 (FB) the decision in S.M Khalil's case so far as it says that the Court under Sec. 11-A must order payment of rent, arrears or current, at the rate which was actually paid last is no longer good law.
11. As pointed out it has been held in Mahabir Ram's case that if the fair rent is determined by the House Controller and rate of rent at which it was last paid is varied on that account, the deposit is to be ordered according to the rate of rent determined by the Controller. Rather, the Full Bench decision in Mahabir Ram's case and Bench decision in Nayan Chandra Das's case. Civil Revn. No. 686 of 1969. D/- 23-12-1969 (Pat) which is in line with the Full Bench decision are binding upon us. It is manifest from these decisions that Section 11-A is not to be read independent of other provisions of the Act, but it is to be read with them and subject to them. In my opinion, therefore on an application under Section 11-A rent cannot be ordered to be deposited at a rent which is unlawful on account of the provision of Section 4 of Act. In order to determine whether the rent at the rate it was actually paid last was contrary to the provisions of Section 4 or not an inquiry has to be made by the Court below on the basis of materials made available to it in my opinion, therefore, the Court below has failed to exercise jurisdiction vested in it by refusing to go into the question whether the rate of rent of Rs. 77/- per month at which it was actually paid last was lawfully payable or not in view of the provisions of Section 4 of the Act. In the result, the application is allowed, the order of the Court below is set aside and the case is remanded to the Court below for disposal of the application under Section 11-A of the Act in the light of the observations made above and in accordance with law. In the circumstances, parties are directed to bear their own costs of this Court.
Mukharji, J.:— I agree.
12. Petition allowed.
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