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Krishna Manohar Dhawan v. 7Th Additional District Judge
Factual and Procedural Background
This opinion arises from a landlord's petition under the U.P. Act XIII of 1972 concerning arrears of rent and eviction. The facts are undisputed that the opposite party was in arrears on the date the suit was filed. Prior to the first hearing, the opposite party paid a sum of Rs. 1804.56 to the petitioner, who issued a receipt stating the payment was "without prejudice" and "settled mutually," covering rent, damages for use and occupation, court fees, lawyer's fees, and other expenses. The revising authority granted the benefit of sub-section (4) of Section 20 of the Act to the opposite party, leading to this petition challenging that decision and questioning whether the court should interfere with any technical omission in granting such benefit.
Legal Issues Presented
- Whether the revising authority erred in granting the benefit of sub-section (4) of Section 20 of the U.P. Act XIII of 1972 to the opposite party despite alleged non-payment of interest on arrears.
- Whether this court should interfere under its writ jurisdiction with the revising authority’s decision if there was any technical omission in granting the benefit.
Arguments of the Parties
Petitioner's Arguments
- The revising authority committed a manifest error of law in granting the benefit of sub-section (4) of Section 20 despite the admitted non-payment or non-deposit of interest on arrears.
- The interpretation of the receipt’s recitals "without prejudice" and "settled mutually" was erroneous, as the payment was accepted subject to any rights the petitioner might have.
Opposite Party's Position
- The payment made, including time-barred rent and expenses, was admitted by the petitioner and covered all dues, including interest, as per the receipt.
- The words "without prejudice" and "settled mutually" in the receipt did not indicate partial payment but reflected the context of the eviction suit based on default and other allegations not established.
- The opposite party acted bona fide and took all necessary steps to comply with the provisions of sub-section (4) of Section 20 to avoid eviction, including payment of arrears before the first hearing.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court analyzed the revising authority’s findings that the opposite party had paid an amount covering rent arrears, damages, and expenses, including some time-barred rent, before the first hearing, supported by a receipt stating "without prejudice" and "settled mutually." The revising authority found the petitioner admitted the payment and did not contest it subsequently, leading to dismissal of the suit in default.
The court considered the petitioner’s argument that the interest component was unpaid and that the receipt’s wording indicated conditional acceptance. It rejected this, reasoning that the language was reasonably construed in the context of the case and did not imply partial payment.
Further, the court emphasized the beneficent nature of sub-section (4) of Section 20, which aims to relieve tenants from eviction on arrears if bona fide compliance is shown, even if there are technical omissions or minor miscalculations. It held that the tenant should not be deprived of the benefit for such reasons, especially where the tenant acted in good faith to discharge liabilities, including payment of time-barred rent and expenses.
The court found that any failure to deposit interest was due to a misapprehension arising from the receipt’s wording and not from an intention to evade liability under the Act. The revising authority’s decision was thus upheld as achieving substantial justice between the parties.
Holding and Implications
The petition is dismissed.
The direct effect of this decision is that the revising authority’s grant of benefit under sub-section (4) of Section 20 to the tenant stands, and the suit for eviction is dismissed. No order as to costs was made. The opinion does not establish a new precedent but reinforces the principle that the provision should be liberally construed in favor of tenants who bona fide comply with the law, even if there are minor technical or calculation errors.
1. Facts are not disputed in this landlord's petition arising put of suit for arrears of rent and eviction filed under U.P Act XIII of 1972. The only question is if the revising authority committed any error in granting benefit of sub-section (4) of S. 20 of the Act. And even if it did and there was technical omission should this court in exercise of writ jurisdiction interfere with it.
2. That the opposite party was in arrears of rent on the date when suit was filed was not disputed. But after filing of suit and much before the first date of hearing within meaning of sub-section (4) of section 20, a sum of Rs. 1804.56 was paid by opposite party to the petitioner on 18th Nov. 1977 in lieu of which he issued a receipt as well. It has been found by revising authority that this payment was admitted by petitioner. In this receipt apart from break up of payment of Rs. 1049.12 P. towards rent from 27th July, 1973 to 11th Nov. 1976 Rs. 305.44 towards damages for use and occupation from 12th November, 1976 to 26th Oct. 1977 and Rs. 450.00 for court fees, Vakil's fee and 9 other expenses it was mentioned in the beginning ‘Received without prejudice’ and in the end ‘….. and other expenses of suit No. 656 of 1977 as settled mutually’.
3. The revising authority calculated details of amount which the opposite party was liable to pay and held that he paid even time barred rent as petitioner in suit could not have claimed more than Rs. 790/- for period from 21st May, 1974 to 11th Nov. 1976. In respect of expenses he found that only Rs. 280/- was payable. Thus an excess of Rs. 170/- was paid. It was further held that after making the payment when opposite party filed written statement he specifically pleaded that all dues in compliance of S. 20(4) have been paid. This was not only not denied or controverted but petitioner even did not appear thereafter on three dates and the suit was dismissed in default. And as payment of expenses was as settled mutually it obviously was in discharge of entire arrears including interest. He did not find any merit in claim of petitioner that as payment was accepted without prejudice it did not amount to full payment. He held that these words were used not to indicate partial payment but because suit for eviction was based not only on default but material alterations which of course was not found established.
4. It has been argued by learned counsel for petitioner that the revising authority committed manifest error of law in dismissing the suit and granting benefit of sub-section (4) of S. 20 even though admittedly the interest due on the arrears was neither paid nor deposited by petitioner. According to him the construction put by revising authority on the recital in the receipt on words, without prejudice and settled mutually suffer from an error of law inasmuch as the payment was accepted by petitioner subject to any right that he might have.
5. The argument is devoid of any substance. Construction put on the words mutually settled and without prejudice in the circumstances of case is reasonable and proper.
6. Even assuming that words mutually settled did not amount to discharge of liability of payment of interest, the total interest due to petitioner till the filing of suit according to petitioner's own calculation even for the period the rent has become barred by time was Rs. 265.20 P. (Annexure VI), the balance after adjusting excess payment of Rs. 170/- towards expenses remained Rs. 95.20 P. only, Should petitioner be denied benefit of sub-section (4) of S. 20? The very use of word, ‘relieving the tenant against his liability for eviction’ for arrears of rent used in the sub-section indicates that it is beneficent provision in furtherance of objective of the Act to save tenant from eviction. It has, therefore, to be construed liberally in his favour. A tenant should not be denied benefit of this provision for technical omissions or unintended failures. Provision for payment of interest, cost of suit and arrears, having been held by this Court to include even time barred arrears, are by themselves compulsive provisions to keep a tenant on guard. Payment of interest at nine per cent if not penal is certainly harsh. Therefore, it should be construed strictly. And a tenant should not be thrown out even though he bona fide complies with law and in doing so there is some mistake in calculation or some misapprehension by use of such words as in this case. Action of tenant which may debar him from claiming benefit of this provision should be decided on anvil of bona fide. Therefore, even if there was some deficiency in payment of interest there is hardly any doubt that opposite party was not only keen but was taking all steps to save him from liability of eviction. This is manifest from payment of even time barred rent on 18th Nov. 1977. Failure, therefore, in depositing the interest, if any, was not because the opposite party did not intend to comply with provisions of sub-section (4) of S. 20 but because of misapprehension due to use of word ‘settled mutually’ in the receipt. In any case by the orders passed by the revising authority substantial justice has been done between parties.
7. In the result this petition fails and is dismissed. But there shall be no order as to costs.
8. Petition dismissed.
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