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Section 30(2) Rent Deposit Protects Tenant from Eviction Under U.P. Rent Act: SC

Case Law Details

TaxGuru Citation
2026 taxguru.in 9881
Case Name
Kailash Chandra And Anr Vs Mukundi Lal And Ors. (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
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Kailash Chandra And Anr Vs Mukundi Lal And Ors. (Supreme Court of India)

The Supreme Court considered an appeal filed by a tenant against the Allahabad High Court’s judgment affirming an order of eviction on the ground of default in payment of rent. The landlords had instituted a suit for eviction before the Judge, Small Causes, Jaunpur, alleging sub-letting and arrears of rent. The Trial Court rejected the allegation of sub-letting and found that although the tenant was in arrears of rent, he was entitled to protection under Section 20(4) of the U.P. Urban Building (Regulation of Letting, Rent and Eviction) Act, 1972, as he had deposited the amount due on the first date of hearing. Consequently, no decree for eviction was passed. The Revisional Court reversed the Trial Court’s decision and ordered eviction on both the grounds of arrears of rent and sub-letting. In the writ proceedings, the High Court restored the Trial Court’s finding rejecting sub-letting but upheld the eviction on the ground of default in payment of rent.

Before the Supreme Court, the parties confined their submissions to whether the tenant had cleared the arrears of rent. The landlords claimed arrears of rent from 15 December 1973 to 4 January 1975 and mesne profits from 5 January 1975 to 15 December 1976, while stating that earlier rent from 1 June 1971 to 15 December 1973 was not claimed because it had become barred by limitation. The tenant contended that he had deposited all amounts due on the first date of hearing in compliance with Section 20(4) and had also deposited rent earlier under Section 30(2) of the Act after the Municipal Board demanded rent from him upon expiry of the landlord’s lease. According to the tenant, after accounting for these deposits, no amount remained payable to the landlords.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,002

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