K. Subramaniam (Died) Vs Krishna Mills Pvt. Ltd. (Supreme Court of India)
No Stay, No Excuse – SC Upholds Eviction for Wilful Default in Fair Rent Case- Six-Year Delay in Paying Fair Rent Constitutes Wilful Default – SC Affirms Eviction-Pending Appeal Doesn’t Suspend Rent Duty — Tenant Must Pay Fair Rent, Rules SC
The Supreme Court dismissed the tenants’ appeal and upheld their eviction for wilful default under Section 10(2)(i) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.
The dispute arose from fixation of fair rent at Rs. 2.43 lakh p.m. (later reduced to Rs. 2.37 lakh) for a Coimbatore property. Despite no stay of that order, the lessee continued paying only Rs. 48,000 p.m. for several years. The Court held that pendency of appeals did not suspend the tenant’s obligation to pay the enhanced rent. Citing Order XLI Rule 5 CPC and Sundaram Pillai v. Pattabiraman (1985 1 SCC 591), the Bench ruled that wilful default can be found even without a two-month notice if the conduct shows deliberate non-payment.
Payments made later “without prejudice” under interim orders did not erase past defaults. The Court termed the six-year delay in clearing arrears a conscious and calculated default, affirmed the High Court’s reasoning, and granted six months’ time to vacate.
