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M. Mohammed Kunju & Another v. Rajamma & Others

Kerala High Court
Sep 1, 1989
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Structured Summary of the Opinion

Factual and Procedural Background

The petitioners are tenants of a building owned by the contesting respondents. In rent-control proceedings, the Rent Control Court passed an order under Section 12(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965, as a consequence of the tenants' failure to deposit admitted arrears of rent. The tenants filed an appeal and sought a stay of further proceedings; the Appellate Authority rejected that application on the ground that an appeal without deposit of the admitted arrears is not maintainable. A revision by the tenants to the District Court was dismissed. The tenants then filed the present Original Petition in the High Court under Article 227 of the Constitution.

The appeal was filed on 22-7-1987, which the court records as within thirty days from the order appealed against after excluding time taken to obtain a certified copy. However, no amount was deposited towards the admitted arrears of rent up to 12-10-1987, and the authorities under the Act treated the appeal as not valid.

Legal Issues Presented

  1. Whether a tenant can prefer an appeal under Section 18 of the Kerala Buildings (Lease and Rent Control) Act, 1965 without first paying or depositing the admitted arrears of rent as required by Section 12(1) of the Act.
  2. Whether a subsequent payment or deposit of the admitted arrears, made after the filing of the appeal but within the statutory thirty-day appeal period, can validate an appeal that was filed initially without the pre-deposit or pre-payment.
  3. Whether sub-sections (2) and (3) of Section 12 dilute or otherwise alter the pre-deposit/pre-payment requirement in Section 12(1) with respect to the maintainability of an appeal.
  4. Whether principles applied under other statutes (e.g., provisos in building tax and sales tax provisions, or decisions under the Income Tax Act) are applicable to appeals under Section 18 of the Act, and the extent to which Section 5 of the Limitation Act is relevant.

Arguments of the Parties

Petitioners' (Tenants') Arguments

  • Learned counsel for the petitioners contended that the strictness of Section 12(1) is mitigated by sub-sections (2) and (3) of Section 12; in other words, the petitioners argued that those sub-sections limit or modify the pre-deposit/pre-payment requirement for preferring an appeal. The counsel relied on the Division Bench decision in Xavier v. Leonard Poppali to support this contention.

The opinion does not present a detailed account of the respondents' (landlord's) arguments in the text provided.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Anant Mills v. State of Gujarat ((1975) 2 SCC 175 : AIR 1975 S.C. 1234) Affirmation of the principle that appeals exist only by statute and must comply with statutory conditions; an appeal cannot be entertained unless statutory conditions are fulfilled. The court relied on this authority to underscore that the right of appeal is statutory and that non-fulfilment of statutory conditions (here, pre-deposit) means no jurisdiction to entertain the appeal.
Vijay Prakash v. Collector of Customs ((1988) 4 SCC 402 : AIR 1988 S.C. 2010) If a statute gives a right to appeal upon certain conditions, the right vests and becomes exercisable only upon fulfilment of those conditions. The court cited this case to support the proposition that the right to appeal under the Act arises only after compliance with the statutory preconditions (payment/deposit of admitted arrears).
P.S. Lakshmi v. Ramratnam (1977 I.L.R. (A.P.) 792) Interpreted a similarly worded provision in the Andhra Pradesh Act to mean that the appellate authority obtains jurisdiction only when the appeal is filed after payment or deposit of arrears of rent. The court cited this High Court decision as a supporting precedent showing that a tenant's appeal acquires jurisdictional validity only upon payment/deposit required by the statute.
V. Chettiar v. Indira Bai (1981 K.L.T. 756) Authority for the position that a deposit made subsequent to the appeal period cannot save an appeal filed without pre-deposit when the deposit occurs after the statutory period. The court relied upon this decision to hold that a deposit made after the expiry of the thirty-day appeal period cannot cure the defect of an appeal not validly preferred within time.
Xavier v. Leonard Poppali (1975 K.L.T. 542) Decision of a Division Bench of the High Court referenced by petitioners in support of the argument that subsections (2) and (3) affect the rigour of Section 12(1). The court considered the decision but concluded that subsections (2) and (3) govern stages during the pendency of proceedings and do not apply to the pre-deposit/pre-payment requirement for preferring an appeal under Section 12(1).
K.P. Francis v. R.D.O. Fort Cochin & Others (1989 (1) K.L.T. 550) Interpreted a proviso in a building tax statute to mean that an appeal will not be treated as properly filed until the tax has been paid. The court cited this case by analogy to distinguish between an embargo on presentation and an embargo on entertainability, using it to frame the discussion about whether the Act's embargo prevents filing or only entertainability.
Commissioner of Income Tax v. Filmistan Ltd. (1961 I.T.R. 163) Holds that a proviso stating “no appeal shall lie … unless the tax has been paid” means the appeal will not be properly filed until payment; if payment occurs within the limitation period, the appeal is proper; if after expiry, the appeal is taken to be filed on the date of payment. The court adopted this principle to the extent that a payment or deposit made within the appeal period can make an appeal valid, treating the appeal as properly preferred on the date of payment/deposit.
Jokkim Fernandez v. Amina Kunhi Umma (1973 K.L.T. 138) (Full Bench) Held that Section 5 of the Limitation Act cannot be applied in rent control proceedings under the Kerala Act. The court relied on this Full Bench decision to state that Section 5 Limitation Act relief is not available in the rent control proceedings under the Act.

Court's Reasoning and Analysis

The court proceeded by close textual and contextual analysis of the relevant statutory provisions and relied upon the authorities cited in the opinion. The reasoning unfolded in these principal steps:

  1. Statutory scheme: The court first identified the relevant provisions. Section 18(1)(b) confers the right to appeal within thirty days (excluding time to obtain a certified copy). Section 18(2) permits the appellate authority to order a stay of proceedings only "on such appeal being preferred" — meaning the appellate authority's powers under subsection (2) presuppose a validly preferred appeal within the statutory period.
  2. Embargo in Section 12(1): The court analysed Section 12(1), which stipulates that no tenant against whom an eviction application is made shall be entitled to contest the application or prefer an appeal unless he has paid or deposits all admitted arrears of rent and continues to pay subsequent rent until termination of proceedings. The court emphasized the mandatory language ("no tenant ... shall be entitled ... unless") and treated the obligation as a jurisdictional precondition for preferring an appeal.
  3. Appeals are statutory rights: Quoting Lord Atkin (as approved in Anant Mills), the court reiterated that appeals exist only by statute and that statutory conditions must be fulfilled for the right to vest. Applying Vijay Prakash, the court held that where a statute conditions an appeal upon performance of acts, the right arises only after those conditions are met.
  4. Comparison with other statutes and precedents: The court examined analogous provisions in other statutes and decisions:
    • The Andhra Pradesh decision in P.S. Lakshmi was cited to show that an appellate authority obtains jurisdiction only upon deposit/payment of arrears as required by statute.
    • The court acknowledged decisions under tax statutes and Income Tax Act jurisprudence (e.g., Filmistan) that treat the payment condition as affecting when the appeal is properly filed — and that a filing made within the period but completed by payment within the period is acceptable.
  5. Temporal effect of a subsequent deposit: The court drew a distinction based on timing of any subsequent deposit. It held that if the deposit of admitted arrears is made after the initial filing but within the thirty-day statutory appeal period, the appellate authority can treat the appeal as lawfully preferred on the date of payment or deposit. However, if the deposit is made after the expiry of the thirty-day period, the appeal cannot be saved because the appeal must be preferred within thirty days from the order appealed against. V. Chettiar was cited to support the proposition that a deposit after the appeal period cannot cure the defect.
  6. Scope of sub-sections (2) and (3) of Section 12: The court rejected the petitioners' contention that subsections (2) and (3) reduce the rigour of the pre-deposit/pre-payment requirement in subsection (1). It held that subsections (2) and (3) apply to stages during pendency before the Rent Control Court or the Appellate Authority (for example, fixing times and consequences during pendency) and do not alter the jurisdictional precondition for preferring an appeal laid down in subsection (1).
  7. Limitation Act inapplicable: The court noted the Full Bench decision in Jokkim Fernandez that Section 5 of the Limitation Act cannot be applied in rent control proceedings under the Kerala Act, and therefore the usual limitation-extension provisions cannot be invoked to cure non-compliance with the statutory precondition.
  8. Application to present facts: Applying these principles, the court observed that although the appeal was filed within thirty days (on 22-7-1987), no deposit of admitted arrears had been made up to 12-10-1987. Because the pre-deposit/pre-payment precondition was not satisfied within the appeal period, there was no validly preferred appeal, and the Appellate Authority could properly regard the appeal as not maintainable.

Holding and Implications

Final Holding: The Original Petition is dismissed. The court held that an appeal under Section 18 of the Kerala Buildings (Lease and Rent Control) Act, 1965, is not validly preferred unless the tenant has paid or deposited the admitted arrears of rent as required by Section 12(1), and that a subsequent deposit will validate an appeal only if made within the thirty-day appeal period.

Implications:

  • Direct effect on the parties: The petitioners' appeal was treated as not validly preferred because the admitted arrears were not deposited within the statutory period; consequently, the Original Petition was dismissed and the tenants cannot rely on that appeal to challenge the Rent Control Court's order.
  • No broader or novel precedent claimed: The court applied existing statutory interpretation principles and prior authorities to the facts; the opinion does not purport to establish a new legal doctrine beyond applying the cited precedents and statutory text to the situation at hand.
Show all summary ...

1. Petitioners are tenants of a building which belongs to the contesting respondents. In a Rent Control Proceeding for eviction of the tenants an order was passed by the Rent Control Court under Sec. 12(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965 (for short ‘the Act’) as a consequence of the tenants' failure to deposit the admitted arrears of rent. They filed an appeal and through another application, they prayed or stay of further proceedings. The Appellate Authority rejected the application on the ground that the appeal without deposit of the admitted arrears is not maintainable. The revision filed by the tenants was dismissed by the District Court and hence they have come to the High Court now with the present Original Petition under Article 227 of the Constitution. The appeal was filed on 22-7-1987 which was within 30 days from the date of the order appealed against after excluding the time taken to obtain the Certified copy of the order. But, no amount was deposited towards the admitted arrears of rent till 12-10-1987. The authorities under the Act took the view that there is no valid appeal.

2. Sec. 18(1)(b) of the Act confers the right to file appeal against any order passed by the Rent Control Court. It reads thus:

“Any person aggrieved by an order passed by the Rent Control. Court, may, within thirty days from the date of such order, prefer an appeal in writing to the appellate authority having jurisdiction. In computing the thirty days aforesaid, the time taken to obtain a certified copy of the order appealed against shall be excluded”.

3. Sub-section (2) says that “on such appeal being preferred, the appellate authority may order stay of further proceedings in the matter pending decision, on the appeal”. Going by the language of the above provision, it is clear that unless the appeal is preferred within the statutory period, the appellate authority cannot exercise powers under Sub-section (2) of Sec. 18. An embargo is imposed by Sec. 12(1) of the Act against the tenant in preferring the appeal. The said Sub Section reads as follows;

“No tenant against, whom an application for eviction has been made by a landlord under Section 11, shall be entitled to contest the application before the Rent Control Court under that section, or to prefer an appeal under Section 18 against any order made by the Rent Control Court on the application unless he has paid or pays to the landlord, or deposits with the Rent Control Court or the appellate authority, as the case may be, all arrears of rent admitted by the tenant to be due in respect of the building up to the date of payment or deposit, and continues to pay or to deposit any rent which may subsequently become due in respect of the building, until the termination of the proceedings before the Rent Control Court or the appellate authority, as the case may be”.

4. Thus, the tenant has no right under law to prefer the appeal-without paying or depositing the admitted arrears of rent. Payment or deposit of the admitted arrears is made a pre-requisite for preferring the appeal. It must be remembered that the right of appeal is only creative of a statute and without a statutory provision creating such a right, the person aggrieved is not entitled to file an appeal. In the words of Lord Atkin “it is to be remembered that all appeals exist merely by statute and unless the statutory conditions are fulfilled, no jurisdiction is given to any court to entertain them”. This principle has been approved by the Supreme Court in Anant Mills v. State of Gujarat ((1975) 2 SCC 175 : AIR 1975 S.C 1234). If the statute gives a right to appeal as such upon certain conditions, it is upon fulfilment of those conditions that the right becomes vested and exercisable to the appellant (vide Vijay Prakash v. Collector of Customs - (1988) 4 SCC 402 : AIR 1988 S.C 2010) The language in Sec. 12(1) of the Act is one of forbidding the appellant from getting entry into the appellate court without compliance of the condition. This could be gathered from the words “no tenant…………shall be entitled to……………perfer an appeal……………unless”. Thus, if one is to go by the words used in Sec. 12(1), it has to be held that any appeal filed without complying with the condition cannot be treated as an appeal lawfully preferred.

5. Sec. 11 of the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 is worded almost similar to Sec. 12 of the Kerala Act. The only difference is that the obligation of the tenant under the Kerala Act is to deposit the admitted arrears of rent, whereas the tenant under the A.P Act has the obligation to deposit the entire arrears of rent, whether admitted or not. The right to prefer the appeal under the A.P Act is created by Sec. 20 of that Act. Interpreting the requirement of deposit of arrears of rent before preferring the appeal, the Andhra Pradesh High Court in P.S Lakshmi v. Ramratnam (1977 I.L.R (A.P) 792) has held that “the condition precedent for invoking the jurisdiction of the Appellate Authority under Section 20 of the. Act for a tenant as against whom an order of eviction was passed for preferring an appeal is that he must have paid to the landlord or deposited with the Appellate Authority all arrears of rent due in respect of the building, in other words, the appellate authority obtains jurisdiction with respect to the appeal filed by a tenant who was in arrears of rent only when the appeal was filed after the payment of the arrears of rent to the landlord or depositing of the rent before the Appellate Authority”.

6. Even if the appeal was filed without such deposit or payment, the tenant can subsequently deposit the admitted arrears to make the appeal valid, provided such deposit is made within the statutory period of thirty days. When the deposit is made subsequently and before the expiry of the statutory period, the Appellate Authority can treat the appeal as lawfully preferred on the date of payment or deposit of the admitted arrears. But if the deposit happened to be made subsequent to the appeal period, the appeal cannot be saved from the legal deficiency, since the appeal should have been preferred within thirty days from the date of the order appealed against. (Vide V. Chettiar v. Indira Bai (1981 K.L.T 756).

7. In an attempt to surmount the difficulty, learned counsel for the petitioners contended that the rigour of Sec. 12(1) stands diluted to some extent by Sub-sees. (2) and (3). In support of the contention reference was made to the decision of a Division Bench of this Court in Xavier v. Leonard Poppali (1975 K.L.T 542 The two sub-sections are quoted below:

“(2) The deposit under sub-section (1) shall be made within such time as the Court may fix and in such manner as may be prescribed and shall be accompanied by the fee prescribed for the service of notice referred to in sub-section (4):

Provided that the time fixed by the Court for the deposit of the arrears of rent shall not be less than four weeks from the date of the order and the time fixed for the deposit of rent which subsequently accrues due shall not be less than two weeks from the date on which the rent becomes due.

(3) If any tenant fails to pay or to deposit the rent as aforesaid, the Rent Control Court or the appellate authority, as the case, may be, shall, unless the tenant shows sufficient cause to the contrary, stop all further proceedings and make an order directing the tenant to put the landlord in possession of the building”.

8. The aforesaid sub-sections apply to the stages which subsist during the pendency of the proceedings in the Rent Control Court or the Appellate Authority. They have obviously no application to the requirement of prepayment or pre-deposit of admitted arrears of equip the tenant to prefer the appeal. Sec. 12(1) consists of three limbs. The first refers to the tenant's right to contest the application for which also he has to pay or deposit the admitted arrears. The second limb pertains to the tenant's obligation to “continue to pay or deposit any rent which may subsequently become due” until the termination of the proceedings in the Rent Control Court or the appellate authority. It is in the third limb that the right of the tenant to prefer the appeal is conditioned. Sub-sections (2) and (3) would, no doubt, govern the first two limbs. The consequence provided in sub-section (3) is that the court shall stop all further proceedings and make an order directing the tenant to put the landlord in possession of the building. Such a consequence is redundant for the tenant at the stage when he has to file the appeal because he comes to the appellate authority aggrieved by the direction to put the landlord in possession. Hence those two sub-sections cannot obviously have, any application, to the condition or pre-requisite for preferring the appeal.

9. Learned counsel referred to some other statutes wherein appeal provisions are conditioned by the performance of certain acts to be done by the appellant. Building Tax Act 1975 contains provision for appeal in Sec. 11. The said right of appeal is made subject to the proviso that “no appeal shall lie unless a building tax has been paid”. A Division Bench of this Court in K.P Francis v. R.D.O Fort Cochin & Others (1989 (1) K.L.T 550) held that the words in the said proviso only mean that “appeal will not be held to be properly filed until the tax has been paid.” Sec. 34 of the Kerala General Sales Tax Act deals with appeal provisions. The second proviso to sub-section (1) says that “no appeal shall be entertained under this sub-section unless it is accompanied by satisfactory proof of the payment of the tax or other amounts admitted by the appellant to be due. It must be noted that the first proviso empowers the appellate authority to admit an appeal presented after the expiration of the period, if he is satisfied that the appellant had sufficient cause for not presenting the appeal within the time. The embargo contained in the second proviso is not against the preferring of appeal, but only against its entertainability until compliance of the condition. The Supreme Court has interpreted the embargo contained in Sec. 30(1) of the Income Tax Act in which the words “no appeal shall lie against an order ………unless the tax been paid” are employed, as not an embargo against the presentation of the appeal. In Commissioner of Income Tax v. Filmistan Ltd., (1961 I.T.R (Vol. 42) 163), Kapur, J. has observed thus:

“All that the proviso means is that the appeal will not be held to be properly filed until the tax has been paid. If, for instance, the memorandum of appeal is filed on the 20th day, i.e, 10 days before the period of limitation expires and the taxis paid within the rest of the 10 days, the appeal will be a proper appeal; it will be within time and no question of limitation will arise, but if the tax is paid after the period of limitation has expired it will be taken to have been filed on the day when the tax is paid even though the memorandum of appeal was presented earlier and within the period of limitation”.

10. The principle evolved in the aforesaid Supreme Court decision could justifiably be adopted in the case of appeal filed under Sec. 18 of the Act also, if the payment or deposit of the admitted arrears is made within the appeal period. It must be remembered that there is no provision in the Act empowering the Appellate Authority to admit the appeal after the expiry of the period. It is well neigh settled that Sec. 5 of the Limitation Act cannot be applied in the rent control proceedings under the Act. (Vide a Full Bench decision in Jokkim Fernandez v. Amina Kunhi Umma 1973 K.L.T 138). The result of the said discussion is this: If the tenant's appeal before the Appellate Authority is not supported by the pre-deposit or pre-payment of the admitted arrears, no valid appeal is preferred and unless the deposit or payment is made within the appeal period the appeal presented will not become valid subsequently either. Petitioners hence cannot succeed in this Original Petition. It is accordingly, dismissed.