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Disposition
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  • East Punjab Urban Rent Restriction Act
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Citation Codes
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citation codes
Case Number
Disposition
Advocates
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  • East Punjab Urban Rent Restriction Act
Smart Summary

Factual and Procedural Background

The dispute concerns a shop originally rented to the first respondent by a joint Hindu family whose Karta was Gurbax Singh (second respondent). On 23-2-1982 the four brothers executed a memorandum (Ex. A-1) recording a past oral partition, whereby the shop fell to the share of the present appellant. Relying on this, the appellant served a notice dated 1-1-1986 (Ex. A-4) informing the tenant that he was the exclusive landlord from 1-3-1982 and demanding rent at an orally enhanced rate of ₹50 per month.

Receiving no reply, the appellant filed an ejectment application on 25-2-1986 under the East Punjab Urban Rent Restriction Act on two grounds: (i) non-payment of rent from 1-3-1982, and (ii) closure and alleged sub-letting of the premises. The Rent Controller held that the contractual rent remained ₹28 per month, found no arrears, but accepted the ground of sub-letting and ordered eviction. On appeal, the Appellate Authority reversed the eviction order, upholding the finding of no arrears and dismissing the sub-letting ground for non-joinder of the alleged sub-lessee. The High Court dismissed the landlord’s revision in limine. The present judgment arises from the landlord’s appeal to the Supreme Court.

Legal Issues Presented

  1. Whether the tenant was liable to eviction for non-payment of rent after service of the notice dated 1-1-1986, given his claim to have continued paying rent to the former Karta.
  2. Whether the unregistered memorandum dated 23-2-1982 (Ex. A-1) recording a past partition could be relied upon to establish the appellant’s title as landlord.

Arguments of the Parties

Appellant’s Arguments

  • The memorandum (Ex. A-1) validly recorded a completed oral partition; therefore, he became exclusive landlord from 23-2-1982/1-3-1982.
  • The tenant, after receiving notice (Ex. A-4), neither disputed his title nor deposited rent with the Rent Controller on first appearance, attracting eviction for arrears.
  • The lower courts erred in disregarding Ex. A-1 on the incorrect premise that it required registration.

Respondents’ Arguments

  • Up-to-date rent at the original rate of ₹28 per month had been paid to Gurbax Singh; hence no arrears existed.
  • The tenant did not accept any valid enhancement of rent to ₹50 per month.
  • No sub-letting had occurred.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Roshan Singh v. Zile Singh, AIR 1988 SC 881; (1988) 2 SCR 1106 A memorandum recording a past oral partition (family settlement) is not compulsorily registrable. Relied upon to hold that Ex. A-1 was admissible and established the appellant’s exclusive ownership/landlord status.

Court's Reasoning and Analysis

The Supreme Court noted that the tenant received notice Ex. A-4 but did not contest the appellant’s title or specify the period for which rent had been paid to the second respondent. By virtue of Roshan Singh v. Zile Singh, the unregistered memorandum (Ex. A-1) was admissible, and its contents, corroborated by two brothers who testified as AW-2 and AW-5, established that the shop had fallen to the appellant’s share.

Because the tenant neither deposited rent with the Rent Controller on first appearance nor showed “a good cause for non-payment,” he failed to comply with statutory protections against eviction for arrears. The lower tribunals had “wrongly denied” eviction by overlooking the legal effect of Ex. A-1 and the unrefuted notice. Accordingly, their orders were deemed “unsustainable.”

Holding and Implications

Appeal Allowed; eviction ordered. The judgments of the Rent Controller (in part), Appellate Authority, and High Court are set aside, and an order of ejectment is passed against the tenant.

Execution of the eviction shall remain suspended for one year, provided the tenant files an undertaking within four weeks to pay current rent from 1-4-1995 until vacating the premises. Failure to file the undertaking will permit immediate eviction. The decision resolves the dispute between the parties but does not purport to create new precedent beyond applying the principle validated in Roshan Singh v. Zile Singh.

    Bakhtawar Singh v. Gurdev Singh And Another

    Order

    1. Leave granted.

    2. The High Court of Punjab and Haryana at Chandigarh dismissed the revision petition of the appellant in limine, confirming the judgment and order of the appellate authority, passed under the provisions of the East Punjab Urban Rent Restriction Act. The dispute between the parties arose like this.

    3. The demised premises is a shop which stood rented out to the first respondent by a joint Hindu family, the Karta of which was Gurbax Singh, one of the four brothers, the second respondent. The Karta used to receive rent from the first respondent. On 23-2-1982, a memorandum recording past partition was prepared by the brothers through a lawyer and the appellant herein was acknowledged to have got this shop in his share. Thereafter, he issued a notice on 1-1-1986 to the respondent stating that w.e.f 1-3-1982 he was the landlord and that the rent at the rate of Rs 50 per month, as orally enhanced mutually, be paid to him. That notice was not responded to by the first respondent though its receipt is not disputed. In this situation, the appellant on 25-2-1986 filed an ejectment application on two grounds, namely, (i) non-payment of rent since 1-3-1982 @ Rs 50 per month; and (ii) closure of the rented shop since 1-10-1985 and sub-letting of the same to one Mohinder Singh. The ejectment was disputed by both the respondents by filing separate but supportive written statements on 19-5-1986 contending that up-to-date rent (without specifying the date) at the rate of Rs 28 per month, as originally fixed, stood paid by the first respondent to Gurbax Singh, second respondent. On the other ground, it was stated that there was no sub-letting. The Rent Controller, Moga, after examining the evidence of the parties, came to the conclusion that the rent fixed was Rs 28 per month which did not stood enhanced to Rs 50 per month, and since the same stood paid by the first respondent to the second respondent, the tenant was not in arrears of rent. The relationship of the appellant and the first respondent after service of notice dated 1-1-1986 was omitted to be pronounced upon. On the ground of sub-letting, the Rent Controller was in favour of the landlord and so he ordered eviction. On appeal to the appellate authority, the order of the Rent Controller was reversed by affirming the decision on the ground of non-payment of arrears of rent and by upsetting the decision on ground of sub-letting holding that in the absence of Mohinder Singh, the alleged sub-lessee, as party to the proceedings, no ejectment order could be passed. The High Court, as said before, dismissed the revision petition of the appellant in limine.

    4. The ground of sub-letting has not been pressed by learned counsel for the appellant. However, on the ground of non-payment of rent, there has been a considerable debate. Two things emerge prominently. The first one is that the appellant sent undeniably notice Ex. A-4 on 1-1-1986 to the tenant-respondent intimating him that he had become the exclusive landlord of the property demised w.e.f 23-2-1982 or 1-3-1982, as the case may be, and that, therefore, he was entitled to receive the rent thenceforth. The respondent-tenant did not respond to that notice controverting or questioning the title of the appellant nor did he controvert that rent uptil a date stood paid to the second respondent. Rather he let this aspect remain for the Court of the Rent Controller asserting that he had paid the rent to the second respondent without specifying the date up to which rent had been paid and when. The memorandum Ex. A-1 recording past partition, put on record before the Rent Controller was not pronounced upon and, was brushed aside by the appellate authority holding that it could not be seen in the absence of registration even though the decision of this Court in Roshan Singh v. Zile Singh AIR 1988 SC 881, (1988) 2 SCR 1106 stood cited, in which it was held that a subsequent memorandum recording past oral partition as a family settlement was not required to be registered. Memorandum, Ex. A-1 when read, substantially discloses that the shop in dispute stood fallen to the share of the appellant. Besides two brothers of the appellant appeared as AW-2 and AW-5 and supported it. It records the factum of the past but for certainty the brothers had chosen to straighten things w.e.f 23-2-1982 and the said notice Ex. A-4 to the respondent was to the effect that the appellant was entitled to receive rent w.e.f 1-3-1982. The Rent Controller did not fully grasp the legal situation in the matter and wrongly denied eviction of the respondent on that score. The appellate authority as also the High Court committed the same error. Thus, we are of the view that the orders of the courts below are unsustainable and that the appellant should have an order in his favour since rent concededly was neither deposited in the Court of the Rent Controller on the date of the first appearance in order to avoid ejectment, nor a good cause for non-payment pleaded, particularly after having received the notice dated 1-1-1986. The first respondent claims to have kept paying up to date rent to the second respondent even for the period 1-1-1986 to 19-5-1986 when put to notice. Rather in his counter-affidavit before this Court the tenant states that he has till recently paid rent to the second respondent uptil 1-2-1995 disclosing an unusual obstinacy. In these circumstances, instead of remanding the matter and to have the issue raked up again, we allow this appeal, set aside the impugned orders and order ejectment of the respondent. The order, however, shall not be carried out for a period of one year subject to his filing a usual undertaking within four weeks that he shall pay the current rent w.e.f 1-4-1995 till vacating, failing which the eviction may follow.

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    Bakhtawar Singh v. Gurdev Singh And Another
    (Apr 7, 1995)