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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • S. 338. United Provinces Municipalities Act, 1916 (U.P Act II of 1916) or in S. 14(1)(e) United Provinces Town Areas Act, 1914 (U.P Act II of 1914)
  • U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as the Act)
  • S. 179, Uttar Pradesh Nagar Mahapalika Adhiniyam, 1959 (U.P Act II of 1959), or in S. 149
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • S. 338. United Provinces Municipalities Act, 1916 (U.P Act II of 1916) or in S. 14(1)(e) United Provinces Town Areas Act, 1914 (U.P Act II of 1914)
  • U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as the Act)
  • S. 179, Uttar Pradesh Nagar Mahapalika Adhiniyam, 1959 (U.P Act II of 1959), or in S. 149
Smart Summary

Factual and Procedural Background

This writ petition has been filed by the landlord, Smt. Savitri Devi, challenging the courts below for not striking out the defence of the tenant under Order 15, Rule 5 of the Code of Civil Procedure (C.P.C). The landlord contends that the tenant's liability to pay taxes is included in the rent payable for the building occupied, and since the tenant has only paid rent but not taxes, the defence should have been struck out. The courts below rejected the petitioner's application to strike down the tenant's defence, leading to the present petition.

Legal Issues Presented

  1. Whether the tenant's liability to pay taxes forms part of the agreed rent such that failure to pay taxes along with rent justifies striking out the tenant's defence under Order 15, Rule 5, C.P.C.
  2. Whether the courts below erred in not striking out the tenant's defence on the ground of non-payment of taxes claimed as part of rent.

Arguments of the Parties

Petitioner's Arguments

  • The liability to pay taxes is included in the rent payable by the tenant for the building occupied.
  • Failure to pay taxes along with rent means the tenant is not entitled to be heard, and the defence ought to be struck out under Order 15, Rule 5, C.P.C.
  • Relied on Section 7 of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, which imposes liability on the tenant to pay certain taxes as part of rent.
  • Relied on the precedent Ramesh Chandra Gupta v. IVth Addl. District Judge, Etah (1984) to support the contention.

Respondent's Arguments

  • The submission that tax liability automatically constitutes part of agreed rent is misconceived.
  • The tenant's liability to pay taxes is separate unless there is a contract showing that the tax liability was incorporated into the agreed monthly rent.
  • If taxes are paid separately (yearly, half-yearly, or quarterly), these payments are additional liabilities and not part of rent for use and occupation.
  • The cited precedent does not involve striking down a defence under Order 15, Rule 5, C.P.C, and every statutory provision must be strictly construed.
  • A person depositing rent in court cannot be held liable for other separate liabilities without clear contractual or statutory basis.
  • The right of a defendant to contest a suit is valuable and can only be restricted within the clear language of the statute.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ramesh Chandra Gupta v. IVth Addl. District Judge, Etah (1984) 1 All Rent Cas 139 : (1984 All LJ 340) Interpreted Section 7 of the U.P. Urban Buildings Act regarding tenant's liability to pay taxes as part of rent. Court noted that this case did not involve striking down a defence under O. 15, R. 5, C.P.C, and thus was distinguishable in principle and application.
Major Baldeo Krishna Bhandari v. VIth Addl. District Judge, Lucknow (1982) 1 All Rent Cas 121 Addressed payment of agreed rent and tenant's obligation to deposit same. Distinguished on facts; in that case, the issue was about agreed rent payment, whereas here tax liability may be separate.

Court's Reasoning and Analysis

The Court analyzed Section 7 of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, which imposes on the tenant the liability to pay certain taxes in addition to rent unless there is a written contract to the contrary. The Court emphasized that the statutory language must be strictly construed and that the tax liability does not automatically merge into the agreed rent. The Court held that the petitioner must establish from pleadings that the monthly rent was increased to incorporate the tax liability and that the tenant was paying this increased rent monthly. If the tenant pays taxes separately on a periodic basis, such tax payments are additional liabilities and not part of rent for use and occupation of the building. The Court rejected the petitioner's argument that failure to pay taxes along with rent justifies striking out the tenant's defence under Order 15, Rule 5, C.P.C. It recognized the tenant's right to contest the suit and held that this right cannot be curtailed beyond what the statute explicitly provides. The Court found no error in the lower courts' decision to refuse to strike out the defence.

Holding and Implications

DISMISSED

The Court dismissed the writ petition, upholding the decision of the courts below that refused to strike out the tenant's defence under Order 15, Rule 5, C.P.C. The decision clarifies that the tenant's liability to pay taxes under the U.P. Urban Buildings Act is separate from the agreed rent unless expressly incorporated by contract or clear averments. The tenant retains the right to contest the suit, and failure to pay taxes separately does not automatically amount to default in rent justifying striking out the defence. No new legal precedent was established; the ruling affirms strict statutory interpretation and protection of the tenant's procedural rights.

    Savitri Devi v. District Judge

    1. This writ petition has been directed by the landlord Smt. Savitri Devi alleging that the courts below committed an error in not striking out the defence of the tenant, under O. 15, R. 5, C.P.C

    2. The brief submission of the learned counsel is that the liability to pay taxes is included in the rent payable with respect to building in occupation.

    3. Therefore, if merely rent has been paid and taxes have not been paid the same principle will apply and his defence is liable to be struck off by virtue of O. 15, R. 5. The argument is wholly misconceived. In the U.P Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as the Act) there are two separate provisions in Chap. 2 of the Act. S. 5 of the Act reads as under:—

    “In the case of a tenancy continuing from before the commencement of this Act, in respect of a building to which the old Act was applicable, the landlord may, by notice in writing, given within three months from the commencement of this Act, enhanced the rent payable therefore to an amount not exceeding the standard rent, the rent so enhanced shall be payable from the date of commencement of this Act.”

    4. Standard rent has also been defined in the Act. It is not necessary to reproduce the provision. S. 6 of the Act provides for the effect of improvements on rent. S. 7 which has strenuously been relied upon by the learned counsel for the petitioner reads as under:—

    “Subject to any contract in writing to the contrary, but notwithstanding anything contained in S. 179, Uttar Pradesh Nagar Mahapalika Adhiniyam, 1959 (U.P Act II of 1959), or in S. 149 or in any rule made or notification issued under S. 338. United Provinces Municipalities Act, 1916 (U.P Act II of 1916) or in S. 14(1)(e) United Provinces Town Areas Act, 1914 (U.P Act II of 1914) the tenant shall be liable to pay to the landlord in addition to and as part of the rent the following taxes or proportionate part thereof, if any, payable in respect of the buildings or part under his tenancy, namely.

    (a) the water tax;

    (b) twenty-five per cent of every such enhancement in house tax made after the commencement of this Act, or such portion thereof, as is not occasioned on account of the increase in the assessment of the building as a result of the enhancement of rent under the provisions of S. 5;

    Provided that nothing in this section shall apply in relation to a tenant the rate of rent payable by whom for the time being (excluding and enhancement of Rent under provisions of S. 5) does not exceed twenty five rupees per month.

    5. The submission of the learned counsel is that liability of payment of tax is also envisaged as part of payment of rent and, therefore, is included in the rent payable by the tenant. Learned counsel, therefore, maintained that in case if along with the rent the tenant fails to deposit the liability of taxes which also constitutes part of the rent he is not entitled to be heard and his defence ought to have been struck down. In support of his contention he has placed reliance on Ramesh Chandra Gupta v. IVth Addl. District Judge, Etah, (1984) 1 All Rent Cas 139 : (1984 All LJ 340). It may at the very outset be mentioned that in the case relied upon by the petitioner the question of striking down of defence under O. 15, R. 5, C.P.C, was not involved. It is well settled that every provision of statute has to be strictly construed.

    6. Learned counsel in order to satisfy that the defence of the tenant was liable to be struck down has to show that, the liability of tax was part of the agreed rent payable by the tenant. The authority, cited by the learned counsel only highlights the provision contained in S. 7. The bald reading of S. 7 clearly indicates that the payment of liability of taxes rests on the tenant unless there is contract to the contrary. The mode of payment also has been mentioned but I do not subscribe to the submission of the learned counsel for the petitioner that in all cases it constitutes part of the agreed rent. It will have to be established from the averments that after the incorporation of the provision monthly rent was increased, and that increased rent was being paid monthly by the tenant. If the tenant was making separate payment of taxes yearly, six monthly or quarterly then the payment of water tax and 25% of the enhanced house tax would not constitute rent but would be an additional liability coupled with the rent determined under S. 3 of the Act. The rent for the use and occupation, therefore, would be the agreed rent payable by the tenant although the liability for payment of additional amount for use and occupation of the building would also be on the tenant that liability cannot be clubbed with the agreed rent. The law laid down in Major Baldeo Krishna Bhandari v. VIth Addl. District Judge, Lucknow, (1982) 1 All Rent Cas 121 is thus distinguishable on facts. In that case the question involved was payment of agreed rent which the tenant was liable to deposit.

    7. A person depositing rent in the Court cannot be saddled with the other liabilities which he has to pay with respect to the building in his occupation separately. The statute has used the words rent plus costs and other incidental matters mentioned therein but does not include liability which in addition to rent is on the tenant to be paid for the use and occupation of the building. In my opinion, therefore, the courts below have not committed any error in rejecting the application of the petitioner landlord to strike down the defence of the tenant. It is a valuable right of a defendant to contest a suit. This right can only be circumscribed within the four-corners of the penal word in the statute itself. It is not for this Court to add something to the definition of statute. There can also be other contractual liabilities existing between the landlord and the tenant but that would not constitute rent as envisaged for striking down the defence under O. 15 R. 5.

    8. No other point has been pressed.

    9. In view of the observations made above the scrutiny of the order impugned in the petition does not call for any interference as it has been passed after due appreciation of the papers. The petition being devoid of merit is dismissed. Stay order, if any, is vacated.

    10. Petition dismissed.

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    Savitri Devi v. District Judge
    (Oct 10, 1984)