Supreme Court Allows Tenant's Appeal in Uttar Pradesh Rent Act Case by Reversing Eviction Decree. Tenant Entitled to Protection Under Section 20(4) Despite Claiming Lower Rent Rate as Deposit of Arrears as Demanded Before First Date of Hearing Was Unconditional.

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Case Note & Summary

The Supreme Court heard an appeal by a tenant against an eviction decree. The appellant was a tenant against whom a suit for recovery of arrears of rent and eviction had been instituted on grounds including default in payment of rent and material alterations. The trial court had decreed the suit for arrears, mesne profit and ejectment on 03.10.1981, which was upheld by the High Court in revision on 11.05.2010. The core legal issue was whether the tenant was entitled to protection against eviction under Section 20(4) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, having deposited Rs.8910 towards arrears of rent, interest and costs before the first date of hearing. The appellant argued that the deposit was unconditional and met statutory requirements, while the lower courts had denied the benefit because the tenant had claimed the rent rate was Rs.45 per month whereas it was found to be Rs.150 per month. The Court analyzed the provisions and referred to the precedent in Vijay Laxmi Gangal v. Mahendra Pratap Garg, where it was held that the Act is a social legislation leaning in favour of tenants and discretionary relief should not be denied merely because the tenant failed to prove his case regarding quantum of rent if he had deposited the arrears at the rate claimed by the landlord. The Court found no dispute that the appellant had deposited the requisite amount before the first date of hearing, and the discrepancy in the rent rate claim did not render the deposit conditional. Consequently, the Court reversed the lower courts' decision on Issue No.6, held the appellant entitled to the benefit of Section 20(4), set aside the eviction decree, and allowed the appeal to that extent while maintaining the unchallenged parts of the decree.

Headnote

A) Rent Control Law - Eviction Protection - Section 20(4) Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 - Tenant deposited arrears of rent as demanded together with interest and costs before first date of hearing - Courts below denied benefit on ground tenant claimed rent rate of Rs.45/month while court found it to be Rs.150/month - Supreme Court held tenant entitled to protection as deposit was unconditional and met statutory requirements - Following Vijay Laxmi Gangal v. Mahendra Pratap Garg, discretionary relief cannot be denied merely because tenant's plea regarding quantum of rent is incorrect (Paras 3-5)

B) Civil Procedure - Revision and Appeal - Reversal of Lower Court Findings - Trial court and High Court denied Section 20(4) benefit due to discrepancy in rent rate claim - Supreme Court reversed findings on Issue No.6 regarding entitlement to Section 20(4) benefit - Held appellant entitled to benefit and set aside eviction decree while maintaining unchallenged parts of decree (Paras 4-5)

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Issue of Consideration

Whether the appellant/tenant was entitled to protection against eviction under Section 20(4) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 despite claiming a lower rate of rent than what was ultimately found by the court

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Final Decision

Appeal allowed to the extent indicated; impugned order of High Court affirming eviction decree set aside; order of trial court directing eviction set aside; remaining part of decree maintained as no challenge made; no order as to costs; interim order, if any, stands discharged

Law Points

  • Tenant protection under Section 20(4) of Uttar Pradesh Urban Buildings (Regulation of Letting
  • Rent and Eviction) Act
  • 1972
  • Discretionary relief not to be denied merely because tenant's plea regarding quantum of rent is found incorrect
  • Deposit of arrears of rent as demanded together with interest and costs before first date of hearing entitles tenant to benefit
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Case Details

2023 LawText (SC) (3) 78

CIVIL APPEAL NO.5981 OF 2014

2023-03-01

(Manoj Misra J. , Aravind Kumar J.) 

SHANTI PRASAD (D) THR. LRs

THAKUR DASS (D) THR. LRs & OTHERS

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Nature of Litigation

Appeal against eviction decree in rent control matter

Remedy Sought

Appellant/tenant seeking protection against eviction under Section 20(4) of U.P. Act

Filing Reason

Challenging denial of benefit under Section 20(4) by lower courts

Previous Decisions

Trial court decreed suit for recovery of arrears of rent, mesne profit and ejectment on 03.10.1981; High Court dismissed Civil Revision No.467 of 1981 on 11.05.2010

Issues

Whether the appellant/tenant was entitled to protection against eviction under Section 20(4) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 in view of deposit of Rs.8910/- made towards arrears of rent, interest and costs before the first date of hearing

Submissions/Arguments

Appellant argued deposit was unconditional and entitled to Section 20(4) benefit; lower courts denied benefit due to discrepancy in rent rate claim

Ratio Decidendi

Under Section 20(4) of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, a tenant who deposits arrears of rent as demanded together with interest and costs before the first date of hearing is entitled to protection against eviction, and discretionary relief cannot be denied merely because the tenant's plea regarding quantum of rent is found incorrect.

Judgment Excerpts

The Act is a social piece of legislation which leans in favour of tenants. Merely because the tenant had failed to prove his case that the rent was only Rs 125 per mensem and not Rs 360 per mensem, the discretionary relief could not be denied to him even though he had deposited the arrears of rent at the rate claimed by the landlord in the plaint together with interest and costs within the time mentioned in Section 20(4) of the Act.

Procedural History

Suit for recovery of arrears of rent and eviction instituted against appellant; trial court decreed suit on 03.10.1981; Civil Revision No.467 of 1981 filed before High Court dismissed on 11.05.2010; appeal filed before Supreme Court

Acts & Sections

  • Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972: Section 20, Sub-section (4)
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