Supreme Court Restores Stay for Tenant in Eviction Case Due to Substantial Compliance with Conditional Order. Tenant Directed to Pay Reduced Damages for Remaining Premises Pending Appeal.

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Case Note & Summary

The case arises from an eviction suit filed by the respondent-landlord against the appellant-tenant regarding a property comprising a basement and second floor in Delhi. The Trial Court decreed eviction and awarded damages at Rs.20,000 per month from 17 January 2008 until possession, along with a permanent injunction. The tenant appealed to the High Court, which granted a conditional stay on 27 August 2018 requiring payment of damages at Rs.7,500 per month from 17 January 2008 to 31 December 2017 and Rs.15,000 per month thereafter, with 6% interest on delay. The tenant failed to comply, leading the High Court to vacate the stay on 4 December 2018. The tenant then appealed to the Supreme Court. During the proceedings, the Supreme Court directed the tenant to deposit arrears of Rs.10,80,000 and continue paying Rs.15,000 per month. The tenant complied, depositing the amount without prejudice. Meanwhile, the landlord took possession of the basement via execution. The Supreme Court considered whether the stay should be restored. It held that since the tenant had deposited the arrears and continued monthly payments, the stay should be restored for the second floor, which remained in the tenant's possession. The Court directed the tenant to pay Rs.6,000 per month for the second floor until the appeal's disposal, and allowed the landlord to withdraw the deposited amounts subject to the appeal's outcome. The appeal was allowed with these directions.

Headnote

A) Civil Procedure - Conditional Stay - Compliance with Court Orders - The High Court vacated stay on eviction decree due to tenant's non-compliance with conditional order to pay damages - Supreme Court restored stay after tenant deposited arrears and continued monthly payments - Held that substantial compliance and deposit of arrears warranted restoration of stay pending appeal (Paras 5-8).

B) Property Law - Mesne Profits - Damages for Use and Occupation - Trial court awarded damages at Rs.20,000 per month; High Court reduced to Rs.7,500 for past period and Rs.15,000 from 2018 - Supreme Court directed tenant to pay Rs.6,000 per month for second floor after landlord took possession of basement - Held that interim damages should reflect actual occupation (Paras 3, 9).

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Issue of Consideration

Whether the High Court was justified in vacating the stay granted to the tenant due to non-compliance with the conditional order, and whether the stay should be restored pending appeal.

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Final Decision

The Supreme Court set aside the High Court's order vacating the stay and restored the stay in favor of the appellant-tenant qua the second floor. The appellant was directed to pay Rs.6,000 per month for use and occupation of the second floor until disposal of the appeal. The respondent was permitted to withdraw the deposited amounts subject to the final outcome of the appeal. No costs.

Law Points

  • Conditional stay
  • compliance with court orders
  • damages for use and occupation
  • interim relief pending appeal
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Case Details

2019 LawText (SC) (4) 156

Civil Appeal No. 3385 of 2019 (Arising out of SLP(C) No. 769 of 2019)

2019-04-03

R. Banumathi, R. Subhash Reddy

Rajan Kumar Chourasia for appellant, D.K. Sharma for respondent

Laxmi Chaudhary

Sahib Singh Chaudhary

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Nature of Litigation

Civil appeal against High Court order vacating stay in eviction suit

Remedy Sought

Appellant-tenant sought restoration of stay on eviction decree pending appeal

Filing Reason

Non-compliance with conditional order of High Court leading to vacation of stay

Previous Decisions

Trial Court decreed eviction and awarded damages; High Court granted conditional stay; High Court vacated stay due to non-compliance

Issues

Whether the High Court erred in vacating the stay for non-compliance with the conditional order Whether the stay should be restored pending disposal of the appeal

Submissions/Arguments

Appellant argued that she had deposited arrears and continued monthly payments as directed by Supreme Court Respondent submitted that he had taken possession of basement via execution

Ratio Decidendi

Substantial compliance with a conditional order, including deposit of arrears and continued monthly payments, warrants restoration of stay pending appeal, especially when the landlord has already taken possession of part of the premises.

Judgment Excerpts

Considering the submissions of the learned counsel for the parties and having regard to the facts and circumstances of the case that the appellant has deposited the amount of Rs.10,80,000/- and also deposited Rs.15,000/- per month, the impugned order of the High Court is set aside and the stay granted in favour of the appellant-defendant qua the second floor shall stand restored. Since the amount of Rs.15,000/- was directed to be paid for both the premises – basement as well as the second floor and having regard to the fact that the respondent has now taken the possession of the basement by filing the execution petition, as an interim measure we direct the appellant-defendant to pay Rs.6000/- for use and occupation of the second floor until the disposal of the appeal pending before the High Court.

Procedural History

Trial Court decreed eviction on 21 December 2017. Appellant appealed to High Court, which granted conditional stay on 27 August 2018. High Court vacated stay on 4 December 2018 due to non-compliance. Appellant appealed to Supreme Court, which on 18 January 2019 directed deposit of arrears and continued payments. On 8 February 2019, order modified to deposit Rs.15,000 before High Court. Appellant complied. Supreme Court heard appeal and passed final order on 3 April 2019.

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Supreme Court Supreme Court Restores Stay for Tenant in Eviction Case Due to Substantial Compliance with Conditional Order. Tenant Directed to Pay Reduced Damages for Remaining Premises Pending Appeal.
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