Delay in Rent Payment cannot be condoned for Wilful Defaulters: SC

The first contention of the learned senior counsel for the tenant is that the order dated 07.02.2005 passed under Section 15(1) of the Act has been modified by the Rent Controller by his order dated 05.07.2011. Therefore, the Rent Controller was not justified in passing an order of eviction for non-payment of rent in terms of the order dated 7^th February, 2005. There is no merit in this contention. As noticed above, the appellant claimed rent @ Rupees five hundred per month from 1^st April, 2001 along with interest thereon by issuing a demand notice under Section 14(1)(a). Since tenant failed to comply with the demand made in the notice, the landlord filed the eviction petition under Section 14(1)(a) of the Act. The tenant filed a counter stating that he had paid the rent from time to time and that the landlord did not issue any receipt against the same. It was also contended that pursuant to the demand notice dated 19th January, 2004, he had sent the reply along with a demand draft for a sum of Rupees 18,000/- towards the rent @ Rupees five hundred per month from 1.4.200 1 to 3 1.3.2004. The Rent Controller passed order dated 07.02.2005 under Section 15(1) of the Act, directing the tenant to pay or deposit a sum of Rupees five hundred per month with effect from 1.10.2004 within one month from the date of the order and further continue to pay or deposit future rent at the aforesaid rate month by month by 15^th day of each succeeding month during trial. This order was passed because there was dispute in relation to payment of rent from 1.4.200 1 till 30.9.2004. The question relating payment of rent for this period was kept open. After trial, the Rent Controller came to the conclusion that the tenant has failed to establish the payment of arrears of rents from 1.4.2001. The tenant has also failed to pay the rents from 1.10.2004 in terms of the order dated 07.02.2005. In the circumstances, it is futile to contend that that the order dated 07.02.2005 has merged with the order dated 05.07.2011.

The second contention of the appellant is that the court below has not considered con donation of delay in payment of rent having regard to the decision in Ram Murti (supra). It is his submission that the decision relied on by the High Court in Hem Chand (supra) has been impliedly overruled in Shyamcharan Sharma (supra). In Hem Chand (supra) this Court has held that the Rent Controller has no discretion to extend the time for payment of rent under Section 15(1) of the Act. However, in Ram Murti (supra) this Court after taking into consideration the decision in Shyamcharan Sharma (supra) has held that Rent Controller has power to condone the default on the part of the tenant in making payment or deposit of the future rents. This decision has application in a case where the tenant seeks con donation of delay in payment of rents. It is relevant to notice here that the tenant is a willful defaulter of rents. He took a stand before the Rent Controller that he had paid the entire arrears of rent. The Rent Controller passed an order dated 07.02.2005 under Section 15(1) of the Act directing him to pay or deposit the rent at the rate of Rs. 500/- per month with effect from 1.10.2004 and continue to pay the same at the aforesaid rate month by month. Admittedly, he has failed to pay the rent in terms of the said order. After conclusion of the trial, the Rent Controller allowed the petition by order dated 27.4.2010 under Section 14(1)(a) of the Act. The Rent Controller held that the tenant failed to prove that he had tendered the rent to the landlord pursuant to the demand notice dated 19.1.2004. The Rent Controller directed the Nazir to submit a report for the purpose of consideration of entitlement of the tenant to the benefit under Section 14(2) of the Act. The Nazir’s report showed that the tenant had not paid the rent regularly in compliance with the order passed under Section 15(1) of the Act. There was a long delay in deposit of rents. Con donation of delay can take place only when the defaulting tenants so pleads with justifiable reasons which would show that he was prevented from compliance by circumstances beyond his control. The tenant has not offered any explanation for the delay in deposit of rents. Therefore, we do not find any justification to interfere with the order of the High Court.

In the result, the appeal fails and it is accordingly dismissed. However, the appellant is granted three months time from today to vacate and deliver vacant possession of the premises in question to the respondent subject to filing of an undertaking before this Court to vacate the premises on or before three months from today. The undertaking shall be filed within two weeks from today.

Full Text of the Supreme Court Judgment / Order is as follows:-