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citation codes
Case Number
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Acts
  • section 14(1)(a) of the Delhi Rent Control Act, 1958 (No. 59 of 1958), (hereinafter referred to as the Act),
  • section 8(1) of the Delhi and Ajmer Rent Control Act, 1952,
  • provisions of sub-section (1) or subjection (2),
  • ORDER 9 RULE 8 CIVIL PROCEDURE CODE
  • Ajmer Rent Control Act of 1952
  • sub-section (1) of section 14
  • sub-section (1) of section 15
  • Ajmer Rent Control Act, 1952,
  • DELHI RENT CONTROL ACT 1958
  • Order 9, rule 8,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • section 14(1)(a) of the Delhi Rent Control Act, 1958 (No. 59 of 1958), (hereinafter referred to as the Act),
  • section 8(1) of the Delhi and Ajmer Rent Control Act, 1952,
  • provisions of sub-section (1) or subjection (2),
  • ORDER 9 RULE 8 CIVIL PROCEDURE CODE
  • Ajmer Rent Control Act of 1952
  • sub-section (1) of section 14
  • sub-section (1) of section 15
  • Ajmer Rent Control Act, 1952,
  • DELHI RENT CONTROL ACT 1958
  • Order 9, rule 8,
Smart Summary

Structured Summary of the Opinion — Rent Control Appeal (Gurdev Singh, J.)

Factual and Procedural Background

On 24 September 1963 the petitioner-landlord firm Messrs Suraj Balram Sawhney and Sons applied to the Rent Controller, Delhi, seeking eviction of their tenant, Dr. D. Kiri, on the grounds of non-payment of rent and substantial damage. The landlord calculated arrears at Rs. 350 per mensem. The tenant admitted the tenancy but contended that the agreed rent (Rs. 350 per mensem) was excessive and that the standard rent could not exceed Rs. 137.50 per mensem; he therefore prayed for fixation of the standard rent.

On 5 November 1963 the respondent paid Rs. 3,500 to the petitioners on account of arrears, and the case was adjourned to 27 November 1963 for replication. On that date the petitioners did not appear and the Rent Controller dismissed the eviction application for default and awarded costs of Rs. 40. After the dismissal, the tenant's counsel asked that the tenant's plea for fixation of standard rent, which had been raised in reply, still be dealt with. The Rent Controller declined to reopen the matter; a written application to continue proceedings was rejected on the ground that the pleas in the written statement had finished with the dismissal of the main petition.

The Rent Control Tribunal, by order dated 8 September 1964, reversed the Rent Controller's refusal, holding that the question of fixation of standard rent raised in reply to an eviction petition was a separate matter which could continue despite the dismissal of the landlord's suit. The landlords appealed to this Court in a second appeal challenging the Tribunal's order.

Legal Issues Presented

  1. Whether the Rent Controller is bound to consider and determine a tenant's plea for fixation of standard rent when that plea is raised in reply to an eviction petition based on non-payment of rent, even after the eviction application has been dismissed (for default) or withdrawn by the landlord.
  2. Whether dismissal of the main eviction application (under Order 9 Rule 8, Civil Procedure Code) renders the Rent Controller functus officio such that he has no jurisdiction to reopen proceedings to consider a defence plea raised by the tenant.
  3. Whether a plea for fixation of standard rent raised by the tenant in defence is barred by the period of limitation prescribed in section 12 of the Delhi Rent Control Act, 1958, when the plea is raised during the course of eviction proceedings rather than by a standalone application.

Arguments of the Parties

Appellants' (Landlords') Arguments

  • The dismissal of the main eviction application meant that the proceedings had ended and the Rent Controller had become functus officio; he therefore had no jurisdiction to reopen the matter to hear a defence plea (i.e., fixation of standard rent).
  • The plea for fixation of standard rent taken in the tenant's written statement on 5 November 1963 was time-barred under the limitation provision (section 12) and therefore the Rent Controller had no jurisdiction to entertain it.
  • Following Order 9 Rule 8 CPC jurisprudence (as in Kesri Chand and Mata Bux Lal), when the plaintiff is absent and the defendant appears the court must dismiss the suit for default and cannot record the defendant's statement and adjudicate a part claim; accordingly, the tenant's defences vanished with the dismissal of the landlord's petition.

Respondent's (Tenant's) Arguments

  • The tenant contended that the agreed rent of Rs. 350 per mensem was exorbitant and excessive and that the landlord could not lawfully demand or recover rent in excess of the standard rent, which according to the tenant could not exceed Rs. 137.50 per mensem.
  • The tenant raised the plea for fixation of standard rent in his written defence to the eviction petition and sought that the Rent Controller deal with that plea even after the landlord's eviction application was dismissed; the tenant had also deposited arrears as required by the Rent Controller's interim directions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ch. Nathu Singh v. Chander Sahai (Civil Revision No. 247-D of 1958, decided 13 Nov 1962) The question of fixation of standard rent, when raised by the tenant in reply to a landlord's suit, is a separate matter which may continue even though the landlord's suit has been dismissed at his request. The Court relied upon this Division Bench decision as authority supporting the proposition that the plea for fixation of standard rent survives dismissal of the eviction petition; it furnished direct support for the Tribunal's order to remit the matter to the Rent Controller for fixation of standard rent.
Kesri Chand v. National Jute Mills Co. (A.I.R. 40 Cal. 119) Where on the date fixed for hearing the plaintiff is absent and the defendant appears, the court is bound under Order 9 Rule 8 CPC to dismiss the suit for default and has no jurisdiction to record the defendant's statement and decree the claim in part. The appellants relied on this principle to argue that dismissal extinguished proceedings; the Court acknowledged the principle but held it would not assist the appellants if statutory jurisdiction under the Rent Act required the Controller to decide the plea of standard rent.
Mata Bux Lal v. Brij Mohan (A.I.R. 1920 All. 193) Followed Kesri Chand: where plaintiff absent, suit dismissed and court cannot proceed to adjudicate defendant's claim in part. Referenced as supporting authority for the appellants' procedural contention; the Court noted it but found the Rent Act provisions and the other authorities dispositive in favour of entertaining the tenant's plea.
L. Manohar Lal Nathan Mal v. Madan Lal Murari Lal (A.I.R. 1953 Punjab 190) The period of limitation for a standalone application to fix standard rent does not apply when the matter is raised in the course of a suit or proceedings; the tenant may raise fixation at any time during such proceedings. The Court cited this decision in support of the proposition that the limitation in section 12 does not bar a plea for fixation of standard rent raised in defence to an eviction petition.
Messrs Jiwan Industries Pvt. Ltd. v. Messrs Santosh & Co. (S.A.O No. 170-D of 1964; 1965 67 P.L.R. 241; decided 17 Dec 1964) Authority under the Delhi Rent Control Act, 1958, holding that a plea for fixation of standard rent raised in defence can be entertained even after the landlord absents himself. The Court expressed respectful agreement with the view expressed by Bedi J. in that case and treated it as directly applicable support under the 1958 Act.
Shrimati Jaswanti Devi v. Harbans Lal Bhatia (68 P.L.R. 440) Supports the proposition that a plea for fixation of standard rent can be entertained by way of defence even after the period prescribed for a standalone application has expired. The Court cited this decision as additional support for the conclusion that limitation does not bar consideration of a defence plea raised in eviction proceedings.

Court's Reasoning and Analysis

The Court's analysis proceeded from a textual and structural reading of the Rent Control Act, 1958 and the sequence of statutory provisions governing eviction on the ground of non-payment of rent and fixation of standard rent.

Key statutory provisions the Court examined were:

  • Section 14(1)(a) (ground for eviction for non-payment of rent) and section 14(2) (no order for recovery of possession if tenant makes payment or deposit as required by section 15).
  • Section 15(1) (duty of the Controller to allow the tenant to pay arrears and future rent at the rate last paid) and section 15(3) (where there is a dispute as to the amount of rent payable, the Controller shall within fifteen days of first hearing fix an interim rent until the standard rent is finally fixed).
  • Sections 4 and 5 (a tenant shall not be liable to pay, and a landlord cannot receive or claim, rent in excess of the standard rent) and section 9(1) (Controller may fix standard rent on application by either party).
  • Section 12 (period of limitation for standalone applications to fix standard rent).

Applying the statutory scheme, the Court reasoned:

  • Section 15(3) imposes a duty on the Controller to address disputes about the amount of rent where such a dispute is raised in proceedings under section 14(1) or (2). The statutory language is broad enough to require the Controller to go into the question of standard rent when that issue is raised in defence to an eviction petition based on non-payment of rent.
  • Because sections 4 and 5 prevent recovery of any amount in excess of the standard rent, the Controller cannot simply permit the landlord to retain deposited arrears (or withdraw them) without ensuring that the amount deposited does not exceed the arrears computed at the rate of the standard rent. Thus, the Controller must determine the standard rent before permitting disposition of the deposited amounts if a dispute has been raised.
  • The limitation period in section 12 applies to standalone applications for fixation of standard rent; it does not bar a tenant from raising the same issue as a defence in eviction proceedings. The Court relied on L. Manohar Lal Nathan Mal and similar authorities for this textual reading that distinguishes standalone applications from issues raised in the course of litigation.
  • Although general procedural principles under Order 9 Rule 8 CPC (as reflected in Kesri Chand and Mata Bux Lal) require dismissal where the plaintiff is absent, those principles do not override the specific statutory duties imposed upon the Controller by sections 14 and 15 of the Rent Act. If the statute requires determination of the standard rent when raised in defence, procedural dismissal that would otherwise terminate the suit does not render the Controller incapable of adjudicating the statutory issue.
  • The Court found persuasive the Tribunal's reliance on earlier authorities (including the Division Bench decision in Ch. Nathu Singh v. Chander Sahai and the decision of Bedi J. in Messrs Jiwan Industries v. Messrs Santosh & Co.) and agreed that the statutory scheme contemplates continued adjudication of the standard-rent issue even where the main eviction petition has been dismissed or withdrawn.

Holding and Implications

APPEAL DISMISSED.

Holding (core ruling):

  • The Court dismissed the landlords' appeal with costs, upholding the Tribunal's order that the matter be remitted to the Rent Controller for fixation of the standard rent of the premises in dispute.
  • The Court found that where a tenant raises a dispute as to the amount of rent in defence to an eviction application based on non-payment, the Rent Controller is obliged to consider and determine the plea for fixation of standard rent, even if the eviction application has been dismissed for default or withdrawn by the landlord.

Immediate consequences for the parties and procedure:

  • The records were to be returned forthwith to the Rent Controller and the parties were directed to appear for further proceedings on 19 April 1965 so that the question of standard rent could be determined.
  • The direct effect is that the tenant's plea for fixation of standard rent survives the dismissal or withdrawal of the landlord's eviction petition and must be adjudicated by the Controller in accordance with the statutory scheme (including consideration of any deposits and the limits set by sections 4 and 5).

Broader implication emphasized by the Court: The principle that a plea for fixation of standard rent raised in defence may continue despite dismissal of the landlord's suit applies to matters under the Delhi Rent Control Act, 1958, and is supported by earlier decisions under the prior legislation and by contemporaneous authority under the 1958 Act.

Appeal dismissed.

    Messrs Suraj Balram Sawhney & Sons v. Dr. D. Kiri .

    Gurdev Singh, J.:— The question for consideration in this second appeal is whether the Rent Controller is bound to deal with the tenant's prayer for fixation of standard rent made in reply to a petition for his eviction based on the plea of non-payment of rent under section 14(1)(a) of the Delhi Rent Control Act, 1958 (No. 59 of 1958), (hereinafter referred to as the Act), even after such an application for eviction has been dismissed for default or withdrawn by the landlord.

    2. On the 24th of September, 1963, the petitioner-firm Messrs Suraj Balram Sawhney and Sons applied to the Rent Controller, Delhi, seeking the eviction of their tenant Dr. D. Kiri, respondent, on the plea of non-payment of rent and substantial damage to the property. The arrears of rent due from the tenant were calculated at Rs. 350/- per mensem. In resisting the prayer for his eviction Dr. D. Kiri, while admitting the tenancy, pleaded inter alia that the rate of rent agreed to between the parties (viz Rs. 350/- per mensem) was exorbitant and excessive and the landlord was not entitled to demand and recover anything in excess of the standard rent which according to the tenant could not exceed Rs. 137.50 nP. per mensem. The tenant accordingly prayed that the question of standard rent be gone into and the rent be fixed at Rs. 137-50 nP. per mensem. On that very date (5th November, 1963) the respondent paid Rs. 3500/- to the petitioners on account of arrears of rent due from 13th January, 1963, to 12th November, 1963, whereupon the case was adjourned to 27th of November, 1963, for replication. On that day, however, no appearance was put in on behalf of the petitioners and the Rent Controller dismissed the application for ejectment in default with Rs. 40/- as costs. Soon after this order was made the counsel for the respondent-tenant invited the attention of the Rent Controller to the fact that a prayer for fixation of standard rent had been made by his client and prayed that the same be dealt with despite the fact that the application for eviction of the tenant had been dismissed. The learned Rent Controller refused to entertain this oral request and as directed by him a written application for continuation of the proceedings so as to dispose of tenant's prayer for fixation of standard rent was made the same day. Being of the opinion that all the pleas taken in the written statement finished with the dismissal of the main petition and none of such pleas could be tried independently the learned Rent Controller rejected the request for reopening for reopening the case so as to deal with the question of fixation of standard rent. This order of the Rent Controller dated 18th of February, 1964, was, however, reversed in appeal by the Rent Control Tribunal on the 8th of September, 1964. Relying upon the decision of this Court in Civil Revision No. 247-D of 1958 (Ch. Nathu Singh v. Chander Sahai . C.R No. 247-D of 1958.) decided on 13th November, 1962, he held that the question of fixation of standard rent which had been raised in reply to the application for eviction on the basis of non-payment of arrears of rent, “was a separate matter which could continue although the landlord's suit had been dismissed at his request”. Accordingly he directed that the case be sent back to the Rent Controller for fixation of standard rent of the premises in dispute. It is against this appellate order dated 8th of September, 1964, that Messrs Suraj Balram Sawhney and Sons have come up in second appeal to this Court.

    3. In support of his contention that the Rent Controller had no jurisdiction to proceed with the fixation of standard rent of the premises is dispute after the landlord's application for ejectment made under section 14(1)(a) of the Act, had been dismissed even though for default of appearance, Shri H.R Sawhney appearing for the appellants has contended—

    (i) that on the dismssal of the main application which was for eviction the proceedings pending before the Rent Controller had come to an end and the Rent Controller having thus become functus officio had no jurisdiction to reopen the matter so as to deal with one of the pleas raised in reply; (ii) that on the 5th of November, 1963, when the plea of standard rent was taken by the respondent in his written statement an application for fixation of standard rent was barred by time and thus the Rent Controller had no jurisdiction to entertain that plea and to proceed with the fixation of standard rent; and (iii) that as a result of the dismissal of the main petition under Order 9 rule 8, Civil Procedure Code, whatever defences the respondent had raised, had vanished and since the petitioner-landlords no longer claimed any relief there was no occasion for the Rent Controller to consider or adjudicate upon any of the pleas taken in defence of the action for ejectment.

    4. In support of the last contention reliance is placed upon Kesri Chand v. National Jute Mills Co. . A.I.R 40 Cal. 119., (which was followed in Mata Bux Lal v. Brij Mohan . A.I.R 1920 All. 193 1.,). In the latter case, a learned single Judge of the Allahabad High Court ruled that where on the date fixed for the hearing of a case the plaintiff is absent and the defendant appears, the Court is bound, under Order 9, rule 8, to dismiss the suit for default, and it has no jurisdiction to record the defendant's statement and to decree the claim in part. This general principle would, however, be of no avail to the petitioner if it is found that the jurisdiction of the Rent Controller to deal with the plea of standard rent raised by the tenant even after the dismissal of the petition for his ejectment is not barred.

    5. Sub-section (2) of section 14 of the Act laws down that no order for the recovery of possession of any premises shall be made on the ground of non-payment of arrears of rent “if the tenant makes payment or deposit as required by section 15”. In such cases where the eviction of the tenant is sought on non-payment of rent sub-section (1) of section 15 enjoins upon the Rent Controller to make an order allowing the tenant to pay the arrears of rent and future rent at the rate at which it was last paid. Sub-section (3) thereof, which is material for the purpose of this case, runs as under:—

    “If, in any proceeding referred to in sub-section (1) or sub-section (2), there is any dispute as to the amount of rent payable by the tenant, the Controller shall, within fifteen days of the date of the first hearing of the proceeding, fix an interim rent in relation to the premises, to be paid or deposited in accordance with the provisions of sub-section (1) or subjection (2), as the case may be, until the standard rent in relation thereto is fixed having regard to the provisions of this Act, and the amount of arrears, if any, calculated on the basis of the standard rent shall be paid or deposited by the tenant within one month of the date on which the standard rent is fixed or such further time as the Controller may allow in this behalf.”

    6. From the clear language of this sub-section it cannot be disputed that if in an application for ejectment based on the plea of non-payment of rent the question of standard rent is raised by the tenant it is the duty of the Controller to go into this plea and to determine the standard rent. The language of this sub-section is wide enough to cover even those cases in which an application for fixation of standard rent if made independently would be barred by time prescribed under section 12 of the Act. In L. Manohar Lal Nathan Mal v. Madan Lal Murari Lal . A.I.R 1953 Punjab 190., in dealing with a similar provision contained in section 8(1) of the Delhi and Ajmer Rent Control Act, 1952, Falshaw J. (as he then was) while agreeing with the earlier decision of this Court in Civil Revision No. 218-D of 1954 dated 18th of October, 1954, held that on the plain meaning of the words in section 8(1) of the Delhi and Ajmer Rent Control Act, 1952, the period of limitation fixed by section 11 of that Act applied only to applications filed by a landlord or tenant simply for the purpose of determining the standard rent and did not apply when the matter was raised in the course of any suit or proceedings. The provision with regard to the period of limitation for making an application for fixation of standard rent is contained in section 12 of the Act. Both under it and the corresponding provision contained in section 11 of the Act of 1952 the Controller has, however, been given the power to entertain an application for fixation of standard rent even after the expiry of the prescribed period if he is satisfied that the applicant was prevented by sufficient cause from filing the application in time. It is, however not necessary to invoke that power in cases like the present as I am in respectful agreement with Falshaw C.J that the limitation prescribed under section 12 of the present Act applies only to an application made for fixation of standard rent and not to a plea taken up by the tenant in defence to an action for his eviction under proviso (a) to sub-section (1) of section 14 of the Act.

    7. The provision regarding fixation of standard rent is embodied in section 9(1) of the Act which empowers the Controller to fix the standard rent on the application either of the landlord or the tenant. Section 4 of the Act lays down that notwithstanding any agreement to the contrary no tenant shall be liable to pay to his landlord for the occupation of any premises any amount in excess of the standard rent of the premises unless such amount is a lawful increase of the standard rent in accordance with the provisions of the Act. The next section (section 5) debars the landlord not only from receiving but also from claiming any rent in excess of the standard rent notwithstanding any agreement to the contrary. It is in the light of these provisions that the relevant parts of sections 14 and 15 of the Act have to be construed. Under sub-section (1) of section 15 the arrears of rent for the payment of which the Controller is to grant one month's time to the tenant have to be calculated at the rate of the rent at which it was last paid. If this rate is in excess of the standard rent, obviously, in view of the provisions of sections 4 and 5 the landlord cannot recover the entire rent deposited by the tenant or anything in excess of the standard rent. From this it follows that if the tenant deposits the arrears of rent but at the same time contends that the rent claimed from him is in excess of the standard rent the Controller has to go into the question of standard rent and he cannot order the payment of the entire arrears of rent deposited unless he finds that the arrears so deposited are not in excess of the arrears calculated at the rate at which the standard rent is fixed if this is so, the mere fact that the landlord absents himself after the arrears have been deposited in obedience of the orders of the Controller made under sub-section (1) of section 15 would not render infructuous the plea of the tenant that the rent claimed was in excess of the standard rent. Before he can be permitted to withdraw the amount deposited on account of arrears of rent the Controller has to see that this amount is not in excess of the standard rent of the premises in dispute. In this view of the matter it is futile to contend that merely because of dismissal of the application for eviction in default of the appearance of the landlord or the withdrawal of the application by him the plea of the tenant for fixation of standard rent, if already taken, to be left without adjudication. This opinion of mine is consistent with the view taken by Bedi J. recently in S.A.O No. 170-D of 1964 (Messrs Jiwan Industries Private Ltd.… v. Messrs Santosh & Co.… . 1965 67 P.L.R 241.) decided on 17th of December, 1964, and it derives support from the Division Bench decision in Ch. Nathu Singh v. Chander Sahai, (Civil Revision No. 247-D of 1958) decided on 13th of November, 1962. The learned Chief Justice (Falshaw C.J), with whom Dulat J. concurred, dealing with a similar question under the Delhi and Ajmer Rent Control Act of 1952 observed as follows:—

    “On the whole it seems to me that the view taken by the learned Senior Subordinate Judge was correct. It was lightly argued on behalf of the petitioner that the landlord could not be compelled to go on with his suit after he had asked for dismissal, but once the question of fixation of standard rent had been raised by the tenant this was separate matter which could continue although the landlord's suit had been dis-missed at his request.”

    Referring to his earlier decision in L. Manohar Lal Nathan Mal v. Madan Lal Murari Lal the learned Chief Justice said that the question which was then decided was that the period of limitation fixed by the Act for filing an application by a landlord or tenant for fixation of standard rent did not apply when the matter was raised by the tenant in a suit instituted by the landlord and the tenant could raise the matter at any time when the suit was instituted against him.

    8. That the plea of standard rent can be entertained by way of defence even after the expiry of the period prescribed for an application for fixation of standard rent finds support from the decision of Bhandari, C.J in Shrimati Jaswanti Devi v. Harbans Lal Bhatia . 68 P.L.R 440..

    9. Though the decision of the Division Bench in Ch. Nalhu Singh's case was given under the Delhi and Ajmer Rent Control Act, 1952, yet the principle laid down therein, in my opinion, applies even to cases under the new Act of 1958. The decision of Bedi J., in S.A.O No. 170-D of 1964 is, however, an authority under the Delhi Rent Control Act, 1958. For the reasons stated above, I find myself in respectful agreement with the opinion expressed in that case. I thus find no force in this appeal and dismiss the same with costs.

    10. Records of this case shall be returned forthwith to the Rent Controller before whom the parties shall appear for further proceedings on 19th of April, 1965.

    Appeal dismissed.

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    Comments

    Messrs Suraj Balram Sawhney & Sons v. Dr. D. Kiri .
    (Mar 24, 1965)