Supreme Court of India
DINA NATH (D) BY LRS. &ANR.versusSUB HASH CHAND SAINI & ORS.
- Citation
- 2014 INSC 280
- Decided
- 16 April 2014
- Disposal
- Matter referred to larger bench
- Bench
- T S THAKUR
Holding
Section 15(7) of the Delhi Rent Control Act, 1958 grants a discretionary power to strike out a tenant's defence only when the tenant's default is willful, contumacious or negligent; the tenants' conduct in this case did not meet that threshold, so the defence could not be struck out.
Summary
The appellants, tenants of a shop in Delhi, were ordered by the Rent Controller to pay arrears and future rent under Section 15(1) of the Delhi Rent Control Act, 1958. They delayed payment of the future rent, prompting the landlords to invoke Section 15(7) to have the tenants' defence in the eviction suit struck out. The Rent Controller, Rent Control Tribunal and the High Court upheld the strike‑out, but the Supreme Court examined whether the statutory power to strike out a defence is discretionary and whether the tenants’ conduct amounted to willful or contumacious default. The Court held that Section 15(7) confers a discretionary, not mandatory, power and may be exercised only when the tenant’s non‑compliance is deliberate, negligent or repeated, which was not the case here. Consequently, the Supreme Court set aside the lower courts’ orders and dismissed the landlords’ petition, allowing the appeal. The decision re‑affirms the protective purpose of the Rent Act and the need for judicial restraint in invoking the harsh step of striking out a tenant’s defence.
Issues considered
- Whether the power under Section 15(7) of the Delhi Rent Control Act, 1958 to strike out a tenant's defence is discretionary or mandatory.
- Whether the tenants' delay in depositing future rent, despite subsequent over‑payments, constitutes a willful, contumacious or negligent default justifying the striking out of their defence.
- Whether the Rent Controller, Rent Control Tribunal and High Court were justified in exercising the power under Section 15(7) in the present facts.
- Whether subsequent payments or an offer to increase rent affect the exercise of discretion under Section 15(7).
Legislation cited
- Delhi Rent Control Act, 1958s. 15(1), s. 15(7)
Subjects
Delhi Rent Control ActSection 15(7)evictiontenant defencediscretionary powernon‑payment of rentlandlord‑tenant lawcivil appeal
Judgment
[2014] 14 S.C.R. ·1564
DINA NATH (D) BY LRS. &ANR.
v.
SUB HASH CHAND SAINI & ORS.
(Civil Appeal No,4563 of 2014)
B
APRIL 16, 2014
[T.S. THAKUR AND JAGDISH SING!i KHEHAR, JJ.]
Delhi Rent Control Act, 1958 - s.15(7) -Application
C under - By landlord - For striking out the defence of the
tenants taken by them in eviction proceedings - On the
ground that there was delay in depositing the future rent as
directed by Rent Controller- Propriety of- HELD: In view of
difference of opinion, matter referred to three Judge Bench -
D Per Khehar, J.: - Appeal liable to be dismissed - The
discretion u/s. 15(7), in the facts of the case, was rightly
exercised by the competent authority by striking out the
defence of the tenant - Per Thakur, J.: Appeal· lia~le to be
allowed - The facts of the case do not suggest any
E negligence, defiance or contumacious non-payment of the
amount due to the landlord, to render the tenant defenceless.
Referring the matter to three Judge Bench, the
Court
F Held:
Per Khehar, J. (Dismissing the appeal):
1. The power vested uls. 15(7) of the Rent Act to
strike off the defence of a tenant, is discretionary and
G not mandatory. Therefore every violation in
implementation of the direction(s) issued by a Rent
Controller u/s. 15(1) of the Rent Act, will not ipso facto
lead to the striking out the defence of a tenant. A Rent
Controller must exercise his discretion, keeping in mind
H
1564
DINA NATH (D) BY LRS. & ANR. v. SUBHASH CHAND 1565
SAINl&ORS.
the nature of the non-compliance. If the non-compliance A
is not serious, or is based on good reason, a Rent
Controller would not strike off the defence of the tenant.
· Only when the non-compliance of the order passed by
the Rent Controller u/s. 15(1) of the Rent Act, depicts
irrational disregard to the order, or when the non- B
compliance is repeated, or when no justification has been
expressed for the same, or for such other similar
reason(s), the discretion vested in s.15(7) of the Rent Act,
would entitle the Rent Controller to strike off the defence
of a tenant. Judicial discretion exercised in such a matter C
mu.st be tempered with self-restraint, keeping in mind,
that striking out a tenant's defence is an exceptionally
harsh step, which ought not be taken in a routine and
casual manner. The Court must carefully evaluate the D
facts of the given case, before exercising its discretion.
[Para 11][1587-D-H; 1588-A)
2. Payments made by the appellants-tenants, for
future rent payable upto 15.4.2009 (for the month of
March, 2009), after the date of filing of the application E
are not relevant, for determining the issue in hand i.e.
striking out the defence of the tenants. The date on
which the Rent Controller passed the order striking out
the defence of the appellants-tenants, i.e.14.9.2009, has
absolutely no nexus to the consideration contemplated F
in s.15(7) of the Rent Act. S. 15(7) of the Rent Act does
not contemplate condonation of payments made in
violation of the directions issued by the Rent Controller,
by subsequent payments, even where the tenant accepts
to make a voluntary payment, many folds more than what G
is due to the landlord. The only exception is when there
is a reasonable explanation for delayed payment.
[Para 17][1595-D-G]
H
1566 SUPREME COURT REPORTS (2014) 14 S.C.R.
A 3. In the present case, the appellants treated the
directions of the Rent Controller dated 21.4.2008, with
absolute casualness. This is not a case of a single lapse,
but of persistent repeated and unrelenting default in the
payment of future rent, for all the months intervening the
B date when the order u/s.15(1) of the Rent Act was passed,
and the date when the application u/s. 15(7) was filed by
the respondents-landlords. It is not possible to condone
such indifference, insensitivity, disinterest and apathy
to judicial directions. Judicial discretion in such a matter,
C taking into consideration the defaults committed by the
appellants-tenants, was legitimately exercised by the
Courts below, by striking out the defence of the
appellants-tenants. The legislative purpose was, to curb
tendencies of tenants, from abusing the legal process.
0
[Paras 16 and 18][1594-F-H; 1595-A-B; 1596-B]
Miss Santosh Mehta vs. Om Prakash and Ors.
(1980) 3 sec 610: 1980 (3) SCR 325; Kam/a
Devi vs. Vasdev (1995) 1 SCC 356: 1994 (6)
E Suppl. SCR 603; Jain Motor Car Co., Delhi vs.
Swayam Prabha Jain (1996) 3 SCC 55: 1996 (2)
SCR 663;Aero Traders (P) Ltd. vs. Ravinder
Kumar Suri (2004) 8 SCC 307; Amrit Lal vs. Shiv
Narain Gupta (2010) 15 SCC 510 - relied on.
F
Per Thakur, J. (Allowing the appeal):
1. S.15(7) of the Delhi Rent Control Act leaves wide
discretion with the Trial Court whether or not to strike
out the defence of the tenant even where a default is
G proved. Exercise of that discretion in turn depends upon
whether or not the default in payment of rent is seen by
the Courts to be deliberate or contumacious in nature.
That is because s.15(7) cannot be so interpreted as to
H
DINA NATH (D) BY LRS. & ANR. v. SUBHASH CHAND 1567
SAINl&ORS.
negate or frustrate the spirit of the legislation which aims A
at granting protection to the tenants from eviction. The
provision must be so construed as to promote the object
underlying the Act. [Para 9][1603-G-H; 1604-A·B]
2. The facts and circumstances of the case at hand B
do not, suggest any negligence, defiance or
contumacious non-payment of the amount due to the
landlord to warrant the taking of that "exceptional step"
which is bound to render the tenant defenceless in his
contest against the landlord. [Para 15][16{}9-A·B] c
Miss Santosh Mehta vs. Om Prakash and Ors.
(1980) 3 sec 610 : 1980 (3) scR 325; smt.
Kam/a Devi vs. Shri Vasudev"(1995) 1 SCC 356:
1994 (6) Suppl. SCR 603; Mis. Jain Motor Car
Co., Delhi v. Smt. Swayam Prabha Jain & Anr. D
(1996) 3 SCC 55: 1996 (2) SCR 663 - referred
to.
Nagindas Ramdas vs. Dalpatram lchharam @
Brijram and Ors. (1974) 1 SCC 242: 1974 (2) E
SCR 544 ; D. C. Bhatia and Ors. vs. Union of India
andAnr. (1995) 1SCC104: 1994 (4) Suppl. SCR
539; Ashoka Marketing Ltd. and Anr. vs. Punjab
National Bank and Ors. (1990) 4 SCC 406: 1990
(3) SCR 649; Mis Rahabhar Productions Pvt. Ltd. F
vs. Rajendra K. Tandon (1998) 4 SCC 49: 1998 (
2) SCR 470; Mst. Bega Begum and Ors. vs. Abdul
Ahad Khan (Dead) by LRs. and Ors. (1979) 1 SCC
273: 1979 (2) SCR 1; Mis Central Tobacoo Co. ·
Bangalore vs. Chandra Pakash 1969 (2) UJ 432; G
Phiroze Bamanji Desai vs. Chandrakant N. Patel
and Ors. 1974 (1) SCC 661: 1974 (3) SCR 267;
H
15EHL SUPREME COURT REPORTS (2014) 14 S.C.R.
A Mohd. Ayub and Anr. vs. Mukesh Chand (2012) 2 ' •
SCC 155: 2012 (1) SCR 12:' Bhimanagouda
Basanagouda Patil vs. Mohd. Gudusaheb (2003) "
3 sec 101 - referred to.
CASE LAW REFERENCE
B
In.the judgment of Khehar, J.:
1980 (3) SCR 325 . relied on Para 10.1 ·
1994 (6) Suppl. SCR 603 relied on Para 10.2
c 1996 (2) SCR 663 relied on Para 10.3
(2004) 8 sec 301 relied on Para 10.4
(2010) 15 sec 510 relied on Para 10.5
'
lri the judgment of Thakur, J.:
D
1974 (2) SCR 544 referred to · Para 3
1994 (4) Suppl. SCR 539 referred to Para 4
1990 (3) SCR 649 referred to ' Para 4
E 1998 (2) SCR 470 referred to Para 6
1979 (2) SCR 1 referred to Para 7
1969 (2) UJ 432 referred to Para 7
1974 (3) SCR 267 referred to Para 7
F
2012 (1) SCR 12 referred to · Para 7
c2003) 3 sec 101 referred to Para 7
1980 (3) SCR 325 relied on· Para 10
G 1994 (6) Suppl. SCR 603 referred to Par.a 12
1996 (2) SCR 663 relied on Para 12
H
DINA NATH (D) BY LRS. & ANR. v. SUBHASH CHAND 1569
SAINl&ORS.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. A·
4563 of 2014.
From the judgment and order dated 10.05.2011 of the
High Court of Delhi at New Delhi in CM No. 44 of 2011.
Brahmn S. Nagar and Ashok Mathur, Advs., for the B
Appellants.
Amitabh Krishn and·Pranesh, Advs., for the
Respondents.
The Judgments of the Court were delivered by c
JAGDISH SINGH KHEHAR, J. 1. Leave granted.
2. It is not a matter of dispute that the appellants rented a
shop bearing no. 1445-A, Dariba Kalan, Delhi, wherein the
monthly payable rent is Rs. 66/-. The 25 respondents jointly D
own the abovementioned tenanted premises. The rent for the
shop is paid to respondent no. 1, who holds a power of attorney
to collect rent (on behalf of the respondents). In November
2007, the respondents filed an eviction petition under Section
14 (1) (a) (b) (c) and Q) of the Delhi Rent Control Act, 1958 E
(hereinafter referred to as "the Rent Act") seeking
repossession of the rented premises, for a variety of reasons.
It was, inter alia, alleged, that the appellants had neither paid
nor tendered rent with effect from January, 2007, despite the
service of a demand notice, requiring the tenants to pay F
arrears of rent. It was also asserted, that the appellants had
sublet the tenanted premises to his son. In this behalf, it was
alleged that the appellant's son was using the shop for running
a "halwai" (traditionai Indian sweetmeat maker) business. The
shop was originally let out for selling cold drinks, biscuits etc. G
On the issue of usage, it was pointed out, that since the shop
was now being used for running "halwai" business, the
H
1570 . SUPREME COURT REPORTS [2014] 14 S.C.R.
A appellants were using LPG cylinders in the rented premises.
This, according to the respondents, had damaged the old
construction. Additionally it was alleged, that the appellants
had also raised illegal constructions, and had thereby altered
the structure of the rented shop. In this behalf it was asserted,
B that the appellants had lowered the floor of the premises (by
approximately 3 feet below the plinth level) by excavating and
dismantling the flooring. It was also alleged, that a 'chabutra'
(a covered sitting platform) measuring about 4.5 feet and a
'chhajja' (over hanging cover) measuring 7.8 feet, had also
C been constructed unauthorizedly by the appellants. It was also
asserted, that the appellants had demolished the side pillars
of the constructed portion of the rented premises, and had also
removed both the side walls on which the entire roof, and upper
storeys were resting. It was also alleged, that the appellants
0
had demolished the front door wall, and had installed a loft in
the shop. Likewise, the appellants were alleged to have
demolished the back wall of the shop to increase.the length of
the tenanted premises.
E 3. The appellants entered appearance before the Rent
Controller and contested the eviction petition. For the said
purpose, the appellants filed a written statement on 7 .2.2008,
denying and disputing all the allegations made by the
respondents in the eviction petition.
F
4. Since one of the grounds on which the eviction of the
appellants was sought, was on account of non-payment of rent
with effect from January, 2007; the Rent Controller passed an
order dated 21.4.2008 under Section 15(1) of the Rent Act,
G requiring the appellants to deposit the undisputed arrears of
rent, and to pay future rent. The aforesaid order of the Rent
Controller is being extracted hereunder :-
H
DINA NATH (D) BYLRS. &ANR. v. SUBHASH CHAND 1571
SAINI &.ORS. [JAGDISH SINGH KHEHAR, J.]
"E-931/2007 A
21.04.08
Arguments heard u/s 15( 1) of DRC Act. The rate of rent
and the relationship is not in dispute between the parties
though the petitioner claims the arrears w.e.f. 01.01.2007 B
and the respondent states that he has paid rent upto
October, 2007.
Since the orders u/s 15( 1) of DRC Act are to be passed
on the admitted facts, the respondent is directed to pay
or deposit the arrears of rent w:e.f 01.11.2007 till date@ C
Rs.66/-pm within 30 days from today and further continue
to pay or deposit the future rent at the said rate month by
mo.nth before 15'h of each succeeding English Calendar
month.
D
SD/-
ARC/DELHl/21.04.2008"
A perusal of the order dated 21.4.2008 reveals, that
the Rent Controller having taken into consideration, the E
assertion made in the written statement, that the appellants
have already paid rent from 1.1.2007 up to October 2007,
directed the appellants to pay rent only with effect from
1.11.2007. The arrears were ordered to be paid within 30 days
(of 21.4.2008). Future rent was ordered to be paid every month F
(i.e., "month by month") before the 15th day of each succeeding
English calendar month.
5. On account of the Ron-compliance of the. order dated
21.4.2008, the respondents filed an application under Section
15(7) of the Rent Act on 28.4.2009, praying for striking out the G
defence of the appellants. The appellants filed a reply to the
aforesaid application on 17.8.2009. Before filing the aforesaid
reply, on 1.5.2009 i.e., on the very day the appellants came to
know of the filing of the application under Section 15(7) of the
. . I H
1572 SUPREME COURT REPORTS , [2014] 14 S.C.R.
A Rent Act, the appellants deposited rent before the Rent
Controller, for the period from November, 2009 to July, 201 O.
In making the aforesaid deposit, the appellants had mistakenly
mentioned that the rent was being deposited from November,
2009, although they oughi to have deposited rent from
B November, 2008. Immediately on realizing the aforesaid ·
mistake, the appellants again deposited rent before the Rent
Controller for the period from November, 2008 to October 2009
on 5.5.2009.
c 6. For an effective determination of the controversy
before us, it is essential to extract herein the factual position
indicated by the appellants in their reply dated 17 .8.2009 (to
the application filed by the respondents under Section 15(7)
of the Rent Act). Accordingly, paragraphs 3, 4 and 6 of the
o abovementioned reply, are being reproduced hereunder:-
"3. Para 3 of the application in so far it states about
contents of the written statement is a matter of record:
However, it is specifically denied that the respondent has
made any false statementorfumished a false information
E before this Hon'ble Court. In fact the rent was paid from
Januarv 2007 to October 2007 to the petitioner No.1
but he deliberately did not issue any rent receipt and
because the respondent had no proof about the payment
of rent in writing. io avoid any kind of controversy, the
F
rent for the period with effect from Januarv 2007 onwards
was paid by respondent No.1 to petitioner No.1 vide
receipt dated 21.4.2008.
4. Para 4 of the application is admitted. It would not be
G out of place to mention that the Petitioner No.1 used to
collect rent from the respondent No.1 not every month
but after 3 months or 6 months or years time. The
respondent No.1, atthe time when the order u/s. 15(1) of
DRC Act was passed, was not present in the Court.·
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1573
SAINI &ORS. [JAG DISH SINGH KHEHAR, J.]
However, passing of the order was duly communicated A
through the clerk of the counsel to the respondent No.1.
In the evening of 21.4.2008 the Qetitioner No.1 12ersonally
went to the res12ondent No.1 and collected the rent from
him with effect from 1.1.2007 to 30.4.2008. He did not
adjust the rent already paid and has already submitted B
the rate of rent being too meager and the respondent
No.1 was not interested to enter into any controversy,
the rent for the period with effect from 1.1.2007 to
30.4.2008 was paid by the respondent No.1 to the
petitionerNo.1 against Receipt No. 21 dated 21.4.2008 c
which also included the house tax for the years 2007-
2008 and 2008-2009. The petiiioner No.1 also stated to
the respondent No. 1 that he may not deposit rent in the
court as he will directly receive the rent from him. by
D .,.•
issuing receipts. The respondent No.1 being an old and
aged person, not knowing the intricacies of law and also
the repercussions of non-deposit of rent every month
believed the petitioner No.1 in good faith. Though on
21.4.2008 the respondent No. 1 offered to pay advance
E
rent for a years time yet the petitioner No.1 refused to
accept the same. It was, however, a fault on the part of
respondent No.1 for not depositing the rent in the court.
After 21.4.2008 the Qetitioner No.1 again collected the
rent for the month of May 2008 in the end of May 2008 F
but issued the receiQt subseguently which was dated
27 .6.2008. Thereafter desQite reguest of the res12ondent
No.1 the 12etitioner No.1 12rocrastinated the acce12tance
of rent and finally in the month of October 2008 he
acceQted the rent for the Qeriod with effect from 1.6.2008 G
to 31.10.2008 and again he did not issue a rent receiQt.
The rent receiQt was later on issued in the month of
December 2008 when the res12ondent No.1 asked for
the same, number of times. After October 2008 the
H
1574 SUPREME COURT REPORTS [2014) 14 S.C.R.
A petitioner No. 1 did not accept the rent from the
respondent No.2 because due to his illness the
respondent No.1 was not coming to the shop for some
time. It was only because of serious iliness of respondent
No.1, due to which the counsel could not be contacted
B by him so as to deposit the rent in the court. On 28.4.2009
the petitioner No.1 taking advantage of the situation has
filed the present application.
xxx xxx xxx
c 6. Para 6 of the application is not admitted as such and
hence denied. As already submitted herein above the
rent till the month of March 2008 was paid in October
2008 itself but the petitioner No.1 deliberately issued
receipt in the month of December 2008 and now for his
D · own deliberate attempt and the ignorance of respondent.·
No.1 the petitioner No.1 is trying to take advantage. There
has never been a deliberate attempt on the part of
respondent No.1 of noncompliance of the orders passed
by this Hon'ble Court but it was only account of
E misrepresentation of petitioner No.1. non-intentional
violation occurred."
(emphasis is mine)
7. By an order dated 14.9.2009 the Rent Controller
F allowed the application filed by the respondents under Section
15(7) of the Rent Act, and thereby, struck off the defence of the
appellants in the pending eviction petition. Dissatisfied with
the order passed by the Rent Controller, the appellants
approached the Rent Control Tribunal. By an order dated
G 24.5.2010, the Rent Control Tribunal dismissed the appeal
preferred by the appellants. Dissatisfied, the appellants
approached the High Court of Delhi (hereinafter referred to as
"the High Court") by filing a petition under Article 227 of the·
Constitution of India, wherein, the appellants assailed the order
H passed by the Rent Controller dated 14.9.2009, as well as,
DINA NATH (D)BYLRS. &ANR. v. SUBHASH CHAND 1575
SAINI & ORS. [JAGDISH SINGH KHEHAR, J:]
the order of the Rent Control Tribunal dated 24.5.2010. The A
High Court dismissed the petition filed under Article 227 on
10.5.2011. It is, therefore, that the appellants approached this
Court, by filing a Petition for Special Leave to Appeal (C) no.
26941 of 2011, wherein we have now granted leave.
8. The question for this Court's consideration is, whether B
it was just and appropriate for the succeeding courts (the Rent
Controller, Rent Control Tribunal and the High Court) to have
accepted the prayer made by the respondents, for striking out
the defence of the appellants, in the eviction proceedings. For
determining the issue in hand, it is essential to extract herein C
Section 15 of the Rent Act. The same is being reproduced
hereunder:-
"15. When a tenant can get the benefit of protection
against eviction. - D
(1) In every proceeding of the recovery of possession of
any premises on the ground specified in clause (a) of
the proviso to sub-section (1) of Section 14, the
Controller shall, after giving the parties an opportunity
of being heard, make an order directing the tenant to ·E
pay to the landlord or deposit with the Controller within
one month of the date of the order, an amount
calculated at the rate of rent at which it was last paid
for the period for which the arrears of the rent were
legally recoverable from the tenant including the period F
subsequent thereto up to the end of the month previous
to that in which payment or deposit is made and to
continue to pay or deposit, month by month, by the
fifteenth of each succe.eding month, a sum equivalent
to the rent at that rate. G
(2) If, in any proceeding for the recovery of possession
of any premises on any ground other than that referred .
to in sub-section (1 ), the tenant contests the claim for,
eviction, the landlord may, at any stage of the
H
1576 SUPREME COURT REPORTS . [2014) 14 S.C.R.
A proceeding, make an ap~lication to the Controller for
an order on the tenant to pay to the landlord the amount
of rent .legally recoverable from the tenant and the
Controller may, after giving the parties an oppor-tunity
of being heard, make an order in accordance with the
8 provisions of the said sub--section.
(3) If, in any proceeding referred to in sub-section (1) or
sub-section (2), there is any dispute as to the amount
of rent payable by the tenant, the Controller shall, within
fifteen days of the date of the first hearing of the
c proceeding, fix an interim rent in relation to .the
premises to be paid or deposited in accordance with
the provisions of sub-section (1) or sub-section (2),
as the case may be until the standard rent in relation
thereto is fixed having regard to the provisions of this·
D Act, and the amount of arrears if any, calculated on
the basis of the standard rent shall be paid or
deposited by the tenant within one month of the date
on which the standard rent is fixed or such further time
as the Controller may allow iri this behalf.
E
(4) If, in any proceeding referred to in sub-section (1) or
sub-section (2), (there is any dispute as to the person
or persons to whom the rent is payable, the Controller
may direct the tenant to deposit with the Controller the
·amount payable by him under sub-section (1 )or sub-
F
section (2) or sub-section (3), as the case may be,
and in such a .case, no person shall be entitled to
withdraw the amount in deposit until the Controller
decides the dispute and makes an order for payment
of the same.
G
(5) If the Controller is satisfied that any dispute referred
to in sub-section (4) has been raised by a tenant for
reasons which are false or frivolous, the Controller may
order the defence against eviction to be struck out and
H proceed with the hearing of the application.
'
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1577
SAINI & ORS. [JAG DISH SINGH KHEHAR, J.]
(6) If a tenant makes payment or deposit as required by A
sub-section (1) or sub-section (3), no order shall be
mad'e for the recovery of possession on the ground of
defa.ult in the payment of rent by the tenant, but the
Controller may allow such costs as he may deem fit to
the landlord. B
(7) If a tenant fails to make payment or deposit as
required by this section, the Controller may order the
defence against eviction to be struck out and proceed
with the hearing of the application."
c
9. It is not a matter of dispute, that the Rent Controller,
had passed an order dated 21.4.2008 under Section 15(1) of
the Rent Act. By the above order, the Rent Controller had
required the appellants to pay arrears of rent to the respondents
from October 2007 upto date, within 30 days (i.e., by 21 ''of D
May, 2008). The appellants were required to pay future rent at
the rate of Rs. 66/- per month, "month by month", by the 1_5th
day of each succeeding English calendar month. Even though
I will deal with the actual details of the delay in payment of
future rent, "month by month", it is clear from the acknowledged E
factual position disclosed by the appellants in their reply dated
17.8.2009, that there was delay in doing so. Despite thi~
acknowledged position, the issue that arises for consideration
is, whether the said delay would be sufficient by itself, in tenns
of the mandate contained under Section 15(7) of the Rent Act, . F
to strike out the defence of the appellants. Insofar as the instant .
issue is concerned reference may be made to the provision
itself (Section 15(7) of the Rent Act), which clearly uses the
word "may" with reference to striking out the defence of a tenant.
The use of the word "may'' postulates, that a discretion is vested G
with the Rent Controller to strike out (or not to strike out) the
defence of a tenant, who has committed breach of an order
passed under Section 15(1) of the Rent Act. It is therefore
apparent, that despite non-compliance by a tenant, of
directions issued under Section 15(1) of the Rent Act, there
H
1578 SUPREME COURT REPORTS (2014] 14 S.C.R.
A would be situations wherein the defence of a tenant would not
be struck off. The issue in hand is no longer resintegra. This
Court has had various occasions to interpret Section 15(7) of
the Rent Act, wherein it has laid down the parameters to be
tak~n into consideration, while passing an order for striking
B outthe defence of the tenant (under Section 15(7) of the Rent
Act). I have endeavoured to examine a few of those judgments,
in the following paragraph.
10.1. The power of the Rent Controller under Section
15(7) of the Rent Act to strike out a tenant's defence in an
C eviction petition on her failure to deposit rent, came to be
examined by this Court in Miss Santosh Mehta Vs. Om Prakash
and Others, (1980) 3 SCC 610. In the aforesaid judgment,
this Court held as under:-
"3. We must adopt a socially informed perspective while
D
construing the provisions and then it will be plain that the
· Controller is armed with a facultative power. He may, or
may n9t strike out the tenant's defence. A judicial
discretion has built-in-self-restraint, has the scheme of
the statute in mind, cannot ignore the conspectus of
E
circumstances which are present in the case and has
the brooding thought playing on the power that, in a court,
striking out a party's defence is an exceptional step, not
a routine visitation of a punitive extrem§? following upon
a mere failure to pay rent. First of all, there must be a
F
failure to pay rent which. in the context. indicates wilful
failure. deliberate default or volitional non-performance.
Secondly, the Section provides no automatic weapon but
prescribes a wise discretion. inscribes no mechanical
consequence but invests a power to overcome
G intransigence. Thus, if a tenant fails or refuses to pay or
deposit rent and the court discerns a mood of defiance
or gross neglect, the tenant may forfeit his right to be
.heard in defence. The last resort cannot be converted
into the first resort; a punitive direction of court cannot
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1579
SAINI &ORS. [JAG DISH SINGH KHEHAR, J.]
be used as a booby trap to get the tenant out. Once this A
teleological interpretation dawns, the mist of
misconception about matter-of-course invocation of the
power to strike out will vanish. Farewell to the realities of
a given case is playing truant with the duty underlying the
power. B
4. There is no indication whatsoever in the Act to show
that the exercise of the power of striking out of the defence
under Section 15(7) was imperative whenever the tenant
. failed to deposit or pay any amount as required by
Section 15. The provisions contained in Section 15(7) of C
the Act are directory and not mandatory. It cannot be
disputed that Section 15(7) is a penal provision and gives
to the Controller discretionary power in the matter of ·
striking out of the defence, and that in appropriate cases.
the Controller may refuse to visit upon the tenant the D
penalty of non-payment or non-deposit. The effect of
striking out of the defence under Section 15(7) is that the
tenant is deprived of the protection given by
Section 14 and, therefore. the powers under
Section 15(7) of the Act must be exercised with due E
circumspection."
(emphasis is mine)
. 10.2. On the issue in hand, reference may also be made
tothejudgmentofthis Court in Kamla Devi Vs. Vasdev, (1995) F
1 SCC 356. In the instant judgment, this Court opined that
sub-section (7) of Section 15 of the RentAct allows a discretion
to the Rent Controller, to strike out the tenant's defence, in case
of non-compliance of direction to deposit rent. It was clearly
opined, that Section 15(7) of the Rent Act did not postulate a G
mandatory provision for striking out the defence of the tenant,
on account of failure to make payment or deposit pursuant to
an order passed by the Rent Controller under Section 15(1) of
the Rent Act. While so holding, this Court observed as under:-
H
1580 SUPREME COURT REPORTS [2014] 14 S.C.R.
A "17. We are unable to uphold this contention. In our view,
it is not obligatory for the Rent Controller to strike out the
defence of the tenant under Section 15(7) of the Delhi
Act, if the tenant fails to make payment or deposit as
directed by an order passed under Section 15(1 ). The
B language of Sub-section (7) of Section 15 is that 'the
Controller may orderthe defence against eviction to be
struck out'. That clearly means. the Controller, in a given
case, may not pass such an order. It must depend upon
the facts of the case and the discretion of the Controller
C whether such a drastic order should or should not be
passed.
xxx xxx xxx
22. The unreasonableness of the construction suggested ·
by the appellant, is well illustrated by the case of Santosh
D
Mehta v. Om Prakash and Anr: (1980) 3 SCR 325 . In
that case, the tenant was a working woman, who had
engaged an advocate to represent her in a dispute with
the landlord. She duly paid all the arrears of rent by
cheque or in cash to her advocate, who failed to deposit
E
the amount or to pay to the landlord, as directed by the
Rent Controller. On an application made by the landlord,
the Rent Controller struck out the defence of the tenant
under Section 15(7) of the Delhi Rent Control Act. A
Bench of two Judges of this Court held that the exercise
F
of power of striking out the defence under
Section 15(7) was not imperative whenever the tenant
failed to deposit or pay any amount as required by
Section 15. The provisions contained in Section 15(7) of
the Act were directory and ·not ·mandatory.
G
Section 15(7) was a penal provision and gave the Rent
Controller discretionary power in the matter of striking
out of the defence. It was ultimately held that the order of
the Rent Controller striking out the defence of the tenant
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1581
SAINI & ORS. (JAGDISH SINGH KHEHAR, J.]
in the facts of that case was improper. The consequential A
order of eviction was set aside.
23. We are unable to uphold the contention of the
appellant that the case of Ram Murti v. Bhola Nath and
Anr.: (AIR (1984) SC 1392), was wrongly decided and
reliance was wrongly placed in that case on the decision B
of a Bench of three Judges of this Court in the case of
Shyamcharan Sharma v. Dharamdas: (1980) 2 SCR
334. In our view, Sub-section (7) of Section 15 of the
Delhi Rent Control Act, 1958 gives a discretion to the
Rent Controller and does not contain a mandatory C
provision for striking out the defence of the tenant against
eviction. The Rent Controller may or may not pass an
order striking out the defence. The exercise of this
discretion will depend upon the facts and circumstances
of each case. If the Rent Controller is of the view that in D
the facts of a particular case the time to make payment
or deposit pursuant to an order passed under Sub-
section (1) of Section 15 should be extended, he may
do so by passing a suitable order. Similarly, if he is not
satisfied about the case made out by the tenant. he may E
order the defence against eviction to be struck out. But.
the power to strike out the defence against eviction is
discretionary and must not be mechanically exercised.
without any application of mind to the facts of the case."
F
(emphasis is mine)
10.3. On the issue in hand, reference was also made to
the decision rendered by this Court in Jain Motor Car Co.,
Delhi Vs. Swayam Prabha Jain, (1996) 3 SCC 55. Therein,
this Court examined a case where a single default had been G
committed by the tenant. The tenant had not deposited rent
for the month of February 1972. On the issue of striking out
the defence of the tenant under Section 15(7) of the Rent Act,
this Court held as under:-
H
1582 SUPREME COURT REPORTS [2014] 14 S.C.R.
A "21. Applying the above principles to the instant case,
it cannot but be held that the view expressed by the Rent
Controller, the Rent Control Tribunal as also the High
Court that the time under Section 15(1) for depositing
the rent could not be extended nor could the delay be
B condoned was wholly erroneous. The whole approach,
therefore, from the beginning, was based on wrong
premises. The High Court went a step further. While the
Rent Controller and the Rent Control Tribunal had not
struck out the defence of the appellant on the ground that
c 15 days' default in depositing the rent for February, 1972
was not wilful or contumacious, the High Court, oh an
corneous view, struck out the defence. We have already
noticed above that striking out of defence under
Section 15(7) of the Act is in the discretion of the Rent
D Controller. Since the discretion appears to have been
properly exercised by the Rent Controller as also by the
Rent Control Tribunal. the High Court, in the particular
circumstances of the case. was not justified in interfering
with that discretion and striking out the defence of the
E appellant. The High Court, while considering this
question, has observed as under:
'In the other appeal S.A.O. No. 193 of 1973 of the
landlord challenging the Judgment and order of the
Tribunal dismissing his application under
F Section 15(7) of the Act, the defence of the appellant
tenant was not struck off by the Controller. In other
words the tenant was allowed to defend the eviction
case. He was allowed to lead evidence and take part
during the trial of the eviction proceedings. The
G appellant had claimed condonation for the purpose of
Section 15(7) of the Acton the ground that the attorney
of the appellant had fallen ill and the partner of the firm
Ajit Prasad had forgotten the date of deposit on
account of being busy in connection with the election
H
DINA NATH (D)BYLRS. &ANR. v. SUBHASH CHAND 1583
SAINI & ORS. [JAG DISH SINGH KHEHAR, J.]
in which his brother was also a candidate. These facts A
are not sufficient to condone the delay in deposit of
rent. These acts amount to negligence on the part of
the appellant which is a partnership firm. The attorney
had fallen ill and one partner had forgotten the date of
deposit, there were other partners and other officials B
of the firm who ought to have taken steps to deposit
the rent within time. I am, therefore, of the view that it
wa.s not a fit case for refusing to strike off the defence
of the appellant tenant under Section 15(7) of the Act.
I, therefore, set aside the Judgment and order of the c
Tribunal and the Controller and strike off the defence
of the appellant.'
22. The High Court thus struck out the defence by
substituting its own discretion in place of the Rent
Controller and the Tribunal both of whom had held that D
the default by the appellant was _not wilful. The main
question was whether the appellant was entitled to
extension of time in depositing the rent or should he be
evicted for not depositing the rent for only one month in
time particularly when the default was not wilful or E
contumacious. At one time. we were inclined to remand
the case to the Rent Controller so that the appellant's
plea regarding extension of time in depositing the rent
for the month of February. 1972 may be considered but
having regard to the fact that the appellant had already F
pleaded those facts which have already been considered
by the High Court. we feel that it would not be in the
interest of justice now to remand the case as the High
Court appears to be justified in coming to the conclusion
that the appellant was negligent and careless as the rent G
could still be deposited by any other partner. if the attorney
had fallen ill or one partner had forgotten the date of
deposit. Any other explanation offered by the appellant
would be obviously an after thought and, therefore, as
H
1584 SUPREME COURT REPORTS [2014) 14 S.C.R.
A pointed out earlier, it will not serve any purpose to remand
the case to the Rent Controller. The result is that the
appeal has to be dismissed and is hereby dismissed
but without any order as to costs allowing three months
time to the appellant to vacate the premises on filing the
B usual undertaking to this effect in this Court failing which
the respondent-landlady will be entitled to recover
possession from the appellant through police force."
(emphasis is mine)
c A perusal of the above conclusions, recorded in Jain
Motor Co., Delhi's case (supra) reveals, that even a single
willful default, could be sufficient in striking out ·a tenant's
defence.
10.4: The interpretation with reference to striking out the
D defence of a tenant under Section 15(7) of the ReQtAct, also
came up for consideration before this Court in Aero Traders
(P) Ltd. Vs. Ravinder Kumar Suri, (2004) 8 SCC 307, wherein,
this Court opined as under:-
"6. The question which, therefore, requires.consideration
E is whether.the appellant has made out any ground for
exercising discretion in his favour of not striking out his
defence. According to Black's Law Dictionary "judicial
discretion" means the exercise of judgment by a judge
or court based on what is fair under the circumstances
F and guided by the rules and principles of law; a court's
power to act or not act when a litigant is not entitled to
demand the act as a matter of right. The word "discretion"
connotes necessarily an act of a judicial character, and,
as used with reference to discretion exercised judicially,
G it implies the absence of a hard-and-fast rule, and it
requires an actual exercise of judgment and a
consideration of the facts and circumstances which are
necessari to make a sound, fair and just determination.
and a knowledge of the facts upon which the discretion
H
DINA NATH (D) BY LRS. &ANR. v: SUBHASH CHAND 1585
SAINI &ORS. [JAG DISH SINGH KHEHAR, J.]
may properly operate. (See 27 Corpus Juris Secundum A
page 289). When it is said that something is to be done
within the discretion of the authorities that something is
to be done according to the rules of reason and justice
and not according to private opinion: according to law
and not humour. It only gives certain latitude or liberty B
accorded by statute or rules, to a judge as distinguished
from a ministerial or administrative official, in adjudicating
on matters brought before him.
7. In the present case, the finding of the Rent Controller
and also of the Rent Control Tribunal is that the appellant C
set up a totally false plea of his having sent the rent through
cheques to the landlord.Apartfrom pleading that he had
sent the amount through cheques, he pleaded no other
fact which could be taken into consideration by the Rent
Controller for exercising discretion in his favour. It may D
be noted that the premises are commercial and are
situate in Karol Bagh. which is a prime business area of
Delhi and the rent is a paltrv sum of Rs. 30/- per month.
But the appellant did not pay even this small amount of
rent, which is virtually a pittance. and has remained in E
arrears for a long period of time. There is absolutely no
ground on which any discretion could be exercised in
his favour. The High Court was, therefore. perfectly
· justified in setting aside the order passed by the Rent
Control Tribunal and restoring that of the Rent Controller." F
(emphasis is mine)
10.5. L;:1<:t of all reference may be made to the recent
decision of this Court inAmrit Lal Vs. Shiv Narain Gupta, (2010)
15 SCC 510. In the instant case the Rent Controller in exercise G
of the discretion vested in him under Section 15(7) of the Rent
Act, had struck off the defence of the tenant. The Appellate
Authority, however, reversed the judgment of the Rent.Controller.
Thereupon, the matter came up for consideration before the
H
1586 SUPREME COURT REPORTS [2014] 14 S.C.R.
A High Court under Article 227 of the Constitution of India. The
High Court set aside the order passed by the Appellate
Authority. The tenant thereupon approached this Court,
assailing the order of striking off his defence. While
adjudicating upon the controversy, this Court held as under:-
B "11. So far as the order striking out the defence of the
tenant is concerned, it is clear that as far back as on
27 .10.1983, the trial court has passed a judicial order
under Section 15(1) of the Act, directing the tenant to
deposit the rent month by month. Instead, the tenant
c defaulted in making the deposits for a period of al::rout
three-and-a-half years. The learned counsel for the
appellant submitted that striking out defence against
eviction is an order which entails serious consequences
on the tenant and ordinarily the defence should not be
D struck off unless the default is contumacious or
deliberate. Sub-section (7) of Section 15 confers a
discretion on the Controller who may order the defence
against eviction to be struck out and proceed with the
hearing of the application if a tenant fails to make
E payment or deposit, as required by Section 15. In the
present case. the tenant stopped making deposits from
the month of October 1992. For the period between
October 1992 to March 1993. it can be understood that
the tenant believing that there was a compromise. did
F not make the deposit but the factum of compromise was
disowned by the landlord on 23-3-1993. If the tenant
· believed bona fide that there was a compromise. then.
he should have acted accordingly and paid or tendered
the rent to the landlord @ Rs.500 per month which was
G agreed upon between the parties on his own saying. If
the landlord was disputing compromise. then the tenant
should have tendered or deposited the rent before the
Controller. There is a complete silence on the part of the
tenant in paying or tendering the rent for the period for
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1587
SAINI & ORS. [JAGDISH SINGH KHEHAR, J.]
which he has defaulted. In such circumstances, the A
default in payment of rent cannot be said to be bona fide.
The proceedings before the Controller have unfortunately
remained pending for a long time, almost 20 years by
this time.
12. In the facts and circumstances of this case, it cannot B
be said that the High Court did not have jurisdiction or
exceeded in exercise of jurisdiction in entertaining the
petition under Article 227 of the Constitution and setting
aside the order of the Appellate Authority and restoring
that of the trial court." C
(emphasis is mine)
11. ltis apparent, that this Court has clearly opined, that
the power vested under Section 15(7) of the Rent Act to strike
off the defence of a tenant, is discretionary and not mandatory. D
·It is therefore imperative to understand, that every violation in
implementation of the direction(s) issued by a Rent Controller •
under Section 15(1) of the Rent Act, will not ipso facto lead to
. the striking out the defence of a tenant. A Rent Controller must
exercise his discretion, keeping in mind the nature of the non- E
compliance. If the non-compliance is not serious, or is based
on good reason, a Rent Controller would not strike off the
defence of the tenant. Only when the non"compliance of the
order passed by the Rent Controller under Section 15( 1) of
the Rent Act, depicts irrational disregard to the order, or when F
the non-compliance is repeated, or when no justification has
been expressed for the same, or for such other similar
reason(s), the discretion vested in Section 15(7) of the Rent
Act, would entitle the Rent Controller to strike off the defence
of a tenant. In a given case even a single default depicting G
willful, contumacious, or negligent and careless behaviour,
could lead to the striking out of a tenant's defence. It is therefore
apparent, that judicial discretion exercised in such a matter
must be tempered with self-restraint, keeping in mind, that
H
1588 SUPREME COURT REPORTS [2014] 14 S.C.R.
A striking out a tenant's defence is an exceptionally harsh step,
which ought not be taken in a routine and casual manner. The
Court must carefully evaluate the facts of the given case, before
exercising its discretion.
12. The ques.tion which arises for adjudication in the
B present controversy is, whether the Rent Controller, the Rent
Control Tribunal and the High Court, were justified in the facts
and circumstances of the instant case, in ordering (or •
upholding) the striking out the defence of the appellants herein.
Herein, the. order dated 21.4.2008 passed by the Rent
c Controller under Section 15(1) of the Rent Act, required the
payment of arrears of rent claimed by the respondents (with
effect from 1.11.2007 upto date, at the rate of Rs.66/- per
month), within 30 days (i.e., by 21.5.2008). The above order
also directed the appellants to pay future rent at the rate of
D Rs.66/- per month, "month by month", by the 15th day of each
succeeding English calendar month. It is not a matter of
• dispute, that arrears of rent though directed to be paid from
1.11.2007 were actually paid with effect from 1..1.2_007, on
21.4.2008 itself. The appellants-tenants therefore, voluntarily .
E paid ten months rent in excess of the directions contained in
the order dated 21.4.2008. In making the aforesaid payment,
the appellants had exercised their discretion of caution, and
had deposited arrears of rent with effect from 1.1.2007, as
claimed by the respondents. The aforesaid discretion was
F exercised in the manner aforementioned (as is disclosed in
the reply filed by the appellants, dated 17 .8.2009) keeping in
mind the fact, that the respondents had not issued receipts to
the appellants, despite their having been paid rent from
1.1.2007 upto 30.10.2007. And therefore, they would not be
G able to establish the above position, through evidence. It was
only as a matter of prudence, foresight and precaution, that
the appellants-tenants had tendered rent from 1.1.2007 even
though the Rent Controller's order required the appellants to
pay arrears from 1.11.2007.
H
DINA NATH (D)BYLRS. &ANR. v.SUBHASH CHAND 1589
SAINI & ORS. [JAG DISH SINGH KHEHAR, J.]
13. Having therefore discharged the liability of paying of A
arrears of rent, the next step in implementing the order dated
21.4.2008 was with reference to the payment of future rent.
By the order dated 21.4.2008, the Rent Controller had directed
the appellants to deposit future rent at the rate of Rs.66/- per
month, "month by month", before the 15th day of each ·B
succeeding English calendar month. The Rent Controller had
definitely and precisely, fixed the date by which rent for each
succeeding month had to be tendered by the appellants-
tenants. It was on account of the alleged non-payment of the
future rent, in compliance with the directions contained in the C
. Rent Controller's order dated 21.4.2008, that the respondents
filed an application under Section 15(7) of the Rent Act, on
28.4.2009. The relevant period which falls for consideration,
while determining the defaulUfailure/lapse relating to the non-
. payment of future rent, is from 1.5.2008 to 31.3.2009. From o
the pleadings before us, and the written reply filed by the
appellants dated 17 .8.2009 (to the application filed by the
respondents under Section 15(7) of the Rent Act), the factual
position, can be summarized as follows:-
E
S.No. lliblth fcr Wiich Last date of Adi.Bl date ct Vvharer rent
rert payable payrrait as payrrmtct paid on tima or
per order rert fortre in refault of
dated reevalt .
order dated
21.4.2J08 rmnth 21.4.2003
F
1. rv0y2008 15.062008 27.00.2003 . Payrrert in
defa.ilt of ader
2. June2CXJ8 15.07.2008 17.12.2003 Payrrert in
defa.ilt of ader
3. July2CXJ8 15.08.2(()8 17.12.2003 Payrrert in
defa.ilt of ader G
4. ,August 2003 15.09.2C08 17.12.2003 Payrrert in
defa.ilt of ader
5. Septerrba" 2J08 15.10.2008 17.12.2003 Payrrert in
defa.ilt of ader
H
1590 SUPREME COURT REPORTS [2014] 14 S:C.R.
A - --- ---- -- -·-- - . - -- - - -
6. Q:tcber 2008 15.11.2003 17.12.ZJOB Payrrert in
de'rult of crder
7. No.ienre Al08 15.12.2003 05.05.AJ09 Payrrert in
' de'rult of crder
8. De::errbff AJ08 15.01.2008 05.05.AJ09 Payrrert in
B ' de'rult ofcrder
9. Jaruary 2009 15. CJ.2.2000 05.05.AJ09 Payrrert in
de'rult of crder
10. Febru:iry 2000 15.CB.2000 05.05.AJ09 Payrrert in
de'rult of crder
11. fl/archAJ09 15.0'l.2000 05.05.AJ09 Payrrert in
c de'rult of crder
Based on the factual position extracted hereinabove, I
shall endeavour to examine whether the discretion exercised
by the courts below in striking out the defence of the appellants
D is sustainable in law. ·
14. First and foremost, it is essential to deal with the plea
canvassed at the hands of the appellants, namely, that on some
occasions whilst the rent was tendered on an earlier date, the
E receipt for the same was issued by the respondents on a later
date. The submission advanced was, th9t it was imperative
while adjudicating the present contrOversy, to take into
consideration the actual date of tender of rent, mentioned by
the appellants-tenants in their written reply, and not the date
F indicated in the receipts acknowledging the payment of rent.
The courts below had rejected the instant plea canvassed at
the hands of the appellant. I am satisfied, that the rejection of
the plea by the courts below, was fully justified. In this behalf it
may be noted, that the respondents had sought eviction of the
G ·appellants on account of non-payment of rent, with effect from
1.1 .2007. The reply of the appellants to the aforesaid assertion
was, that they had actually paid rent upto 31.10.2007, and were
in arrears only· with effect from 1.11 .2007. Despite the
aforesaid assertion, the appellants in the exercise of prudence,
H foresight and precaution, and as a matter of abundant caution,
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1591
SAINI & ORS. [JAG DISH SINGH KHEHAR, J.]
had tendered arrears of rent (in furtherance of the order dated A
21.4.2008 passed under Section 15( 1) of the Rent Act by the
Rent Controller), from 1.1.2007 to 30.4.2008, even though the
appellants-tenants had been directed to deposit arrears only
from 1.11.2007. The appellants have clearly expressed, that
the respondents had. claimed rent even for the period B
(1.1.2007 to 31.10.2007) for which it had already been paid.
Therefore, the appellants-tenants tendered ten months rent
twice. over, because of the fact that the respondents had not
issued receipts despite the payment of rent. In the above view
of the matter, it is impossible to assume, that the appellants C
would continue to repose faith and trust in the respondents,
and unmindful of the consequences, continue to tender rent,
without obtaining a receipt at the time of tendering rent.
Therefore the contention, that the appellants had tendered rent
for the period from June 2008 to October 2008, for which a o
receipt was issued only on 17.12.2008, cannot be accepted.
For all intents and purposes it has to be assumed, that rent
receipts were issued to the appellants simultaneously with the
payment thereof. It is in the above view of the matter, that the
chart depicting the payment of rent, in terms of the order passed E
by the Rent Controller on 21.4.2008, is based on the date of
issue of receipts by the respondents.
15. Before venturing to examine the controversy on its
merit, it is necessary to formulate four essential components
of consideration, in respect of the controversy in hand. These, F
in my view, have. necessarily and mandatorily to be kept in
mind while dealing with, striking out the defence of a tenant,
contemplated under Section 15(7) of the Rent Act. The
mandatory components are expressed hereunder:-
(i) Undoubtedly, the provisions of the Rent Act are aimed at . G
protecting tenants, against unreasonable demands of landlords
as to rents, evictions and repairs. The spirit and purpose
underlying the Rent Act, is aimed at protecting tenants against
arbitrary and unfair demands of eviction. Whilst protecting
H
1592 SUPREME COURT REPORTS [2014] 14 S.C.R.
A tenants, the legislature has also incorporated certain
provisions, including Section 15(7) of the Rent Act, for curbing
.abuse of the legal process, by tenants. Section 15(7) of the
Rent Act is aimed at enforcing tenants to make deposits or
payments ofrent (both arrears and future) in compliance with
B directions issued by Rent Controllers. Section 15(7) of the
Rent Act, vests a discretion with Rent Controllers, to strike out
. the defence of tenants, who fail to make payments or deposits
contemplated under Sections 15 (1) and/or (3) of the Rent Act.
The landlord has no role in the matter. It is the inaction of the
c tenant itself,
. .
which would prompt a Rent Controller, to strike
.
out the tenants' defence. Such action is permissible, if it is
. found that the non-deposit (in compliance with a Rent
Controller's directions) was conscious or willful, and without
any reasonable justification. There is no question of any liberal
D . approach towards a tenant, who fails to comply with directions
issued by the Rent Controller under Sections 15(1) and/or (3) .
of the Rent Act. For, it is out of the tenant's own actions, that
the consequences arise.
(ii) The relevant date for determining the disobedience
E of the tenant is singularly, exclusively and solely referable, to
the mandate of the schedule of payment, contained in the order
passed by the Rent Controller. This is clearly apparent from
the use of the words "if a tenant fails to make payment or
deposit as required ... ". Neither the date of moving an
F application under Section 15(7)·is of relevance, nor the date
on which the Rent Controller passes an orper striking out the
defence of a tenant is germane/apposite for the instant"
consideration. For that matter, any other date, besides the
schedule of payment contemplated in the Rent Controller's
G order, would be totally irrelevant, for the purpose of a
determination under Section 15(7) of the Rent Act.
(iii) The deposits and payments, required to be made by
a tenant under Sections 15(1) and/or (3) of the Rent Act, are
attributable exclusively for the purpose expressed by the tenant.
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1593
SAINI &ORS. [JAGOISH SINGH KHEHAR, J.]
Therefore, if a payment is made by a tenant towards arrears A
of rent, the same cannot be assigned, or attributed, or credited,
towards future rent. Likewise, .the vice versa. Therefore,
payment or deposit made by a tenant would have reference
only to such purpose, as is ascribed by the tenant, in exercise
of his independent discretion, at the time of making the deposit. B
(iv)Acts of the tenant to make up deficiencies by making
deposits, beyond .the date/time contemplated by the Rent
Controller, could be treated as an acceptable paymenUdeposit,
if there is adequate and acceptable explanation for the delayed
deposit. And not otherwise. For the above reason, subsequent C
acts of magnanimity shown by a tenant, to pay more than what.
was required by the Rent Controller (for that matter, many folds
more, as in the present case), would likewise be irrelevant.
16. Whether or not, the courts below exercised their D
discretion justifiably, in striking out the defence df the appellants
under Section 15(7) of the Rent Act, is being examined
hereinafter, keeping in mind the above parameters. Future rent
was payable in terms of the order dated 21.4.2008, from the
month of May, 2008. The same was payable, "month by month", E
before the 15'" day of each succeeding English Calendar
month. Only twelve intervening months had lapsed in terms of
the order dated 21.4.2008, when the application under Section
15(7) was filed by the respondents-landlords, on 28.4.2009. It
is apparent from the above chart (see paragraph 13 above), F
that the appellants did not comply with the order dated
21.4.2008, for making payments towards future rent, even for
a single month, before the application under Section 15(7) of
the Rent Act was filed, by the respondents-landlords on
28.4.2009. The facts expressed in the pleadings reveal, firstly, G
that the appellants~tenants did not deposit any rent before the
Rent Controller. Secondly, that they did not even voluntarily
tender rent by themselves to the respondents. Thirdly, that
respondent no.1-Subhash Chand Saini, representing the
respondents-landlords had himself approached the appellants,
H
1594 SUPREME COURT REPORTS [2014] 14 S.C.R.
A during the period under reference, for collecting rent. Therefore
deposit/payment of rent was never unilaterally made by the
appellants-tenants. Payments towards future rent were made,
only on the asking of the respondents-landlords. These facts,
certainly demonstrate a foolhardy attitu.de, on the part of the
B appellants, in the matter of payment of future rent. In view of
the parameters expressed in paragraph 15 above, the relevant
date for determining the delinquency of the tenant (while
passing an order under Section 15(7) of the Rent Act), is
referable only to the schedule of payment mandated in the Rent
C Controller's order dated 21.4.2008. For the month of May,
2008, the direction was to pay rent by 15.6.2008; forthe month
of June, 2008, the payment had to be made by 15. 7 .2008; for
July, 2008, payment had to be made by 15.8.2008 .... ., so on
and so forth, and finally, for the month of March, 2009, the
o payment had to be made by 15.4.2009. Payments made for
a particular month on a date later than the one contemplated
in the order of the Rent Controller dated 21.4.2008, is liable to
be treated as a payment in violation of Rent Controller's order.
Not once, was rent paid by the stipulated date. The appellants
E were to pay only Rs.66 per month, for a shop located in a
commercial area of Delhi, and, there was a continued default
in making even this meager payment, "month by month".
Fourthly, no acceptable excuse has been tendered, for the
delayed payment, pertaining to any of the twelve months under
F reference. There is therefore no doubt about the fact, that the
appellants treated the directions of the Rent Controller dated
21.4.2008, with absolute casualness. There is an unequivocal
inference of a clear disregard to the directions issued by the
Rent Controller. The facts of this case depict a recalcitrant, as
G well as, a negligent and careless behaviour, at the hands of
the appellants. This is not a case of a single lapse, but of
persistent repeated and unrelenting default in the payment of
.· future rent, for all the months intervening the date when the
order under Section 15(1) of the Rent Act was passed, and
H the date when the application under Section 15(7) was filed
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1595
SAINI & ORS. [JAGDISH SINGH KHEHAR, J.]
by the respondents-landlords. It is not possible to condone A
such indifference, insensitivity, disinterest and apathy to judicial
directions. Judicial discretion in such a matter, taking into
consideration the defaults committed by the appellants-tenants,
in my view, was legitimately exercised by the Courts below, by
striking out the defence of the appellants-tenants. B
17. Furthermore, in my view, payment voluntarily made
by the tenant on 21.4.2008 towards arrears of rent, cannot be
attributable or assignable or creditable, towards future rent
The said payment was made, in exercise of free discretion,
towards arrears of rent. It shall be deemed to be a deposit by C
the tenant for that purpose, and for no other purpose. The
respondents-landlords filed an application under Section 15(7)
of the Rent Act on 28.4.2009 praying for striking out the defence
of the appellants-tenants for non-compliance of the order of
the Rent Controller dated 21.4.2008. Payments made by the D
appellants-tenants, for future rent payable upto 15.4.2009 (for
the month of March, 2009), after the date of filing of the
application (on 29.4.2009), in my considered view, are not
relevant, for determining the issue in hand. The date on which
the Rent Controller passed the order striking out the defence E
of the appellants-tenants, i.e. 14.9.2009, has absolutely no
nexus to the consideration contemplated in Section 15(7) of
the Rent Act. The offer made by the appellants-tenants to raise
the rent by ten times of the current amount, and to pay the same
in advance for a period of five years, is nothing but an act of F
frustration, and is only aimed to prejudice the Court's mind.
Section 15(7) of the Rent Act does not contemplate
condonation of payments made in violation of the directions
issued by the Rent Controller, by subsequent payments, even
where the tenant accepts to make a voluntary payment, many G ·
folds more than what is due to the landlord. The only exception
is when there is a reasonable explanation for delayed payment.
Unfortunately, there is no such explanation on behalf of the
tenant, in this case. In my considered view, therefore, the action
H
1596 SUPREME COURT REPORTS (2014) 14 S.CR.
A of the appellants-tenants in not complying with the schedule of
payment expressed in Rent Controller's order dated 21.4.2008
(for paying future rent), consecutively and repeatedly for 12
months, is nothing but a contumacious failure to comply with
the directions of the Rent Controller.
B 18. The instant controversy actually demonstrates how a
tenant has effectively frustrated the legislative intent
contemplated in Section 15(7) of the Rent Act. The legislative
purpose was, to curb tendencies of tenants, from abusing the
·1egal process. As already noticed hereinabove, the
C respondents-landlords filed an eviction petition in November,
2007. Based on the non-compliance of the directions issued
by the Rent Controller (on 21.4.2008), the respondents-
landlords moved an application on 28.4.2009, praying for
striking out the defence of the appellants-tenants. After the
D appellants-tenants filed their reply on 17.8.2009, the Rent
Controller allowed the above application, and struck off the
defence of the appellants-tenants, by an order dated
14.9.2009. The order of the Rent Controller dated 14.9.2009
was assailed by the appellants-tenants before the Rent Control
E Tribunal. The prayer'made by the appellants-tenants was
rejected by the above Tribunal 0 n 21.4.2010. The appellants-
tenants then approached the High Court by filing a petition
· under Article 227 of the Constitution of India. The High Court
dismissed the petition on 10.5.2011. The said order was
F assailed by filing a Petition for Special Leave to Appeal. The
matter has been pending disposal in this Court ever since.
The appellants-tenants, despite their contumacious
disobedience, of the directions contained in the order of the
Rent Controller dated 14.9.2009, have frustrated the process
G of Jaw successfully, for about five years (from 28.4.2009, i.e.,
the date on which the application under Section 15(7) of the
Rent Act was filed, till the disposal of the present Civil Appeal).
The tenants have achieved, what the legislation aimed to avoid.
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1597
SAINI & ORS. [JAGDISH SINGH KHEHAR, J.]
19. In the above view of the matter, I am of the considered A
view, that the order passed by the Rent Controller dated
14.9.2009, which was upheld by the Rent Control Tribunal (on
· 24.5.2010) and the High Court (vide order dated 10.5.2011)
calls for no interference whatsoever.
20. For the reasons recorded hereinabove the appeal B
fails and is accordingly dismissed.
T. S. THAKUR, J. 1. Leave granted.
2. I have had the privilege of going through the elaborate
Order proposed by my Esteemed Brother J.S. Khehar, J. C
While I entirely agree with the view that the power to strike out
the defence vested in the C~urt under Section 15 (7) of the
Delhi Rent Control Act is discretionary and ought to be
exercis·ed only When the tenant deliberately, contumaciously
or negligently fails to depositthe rent due from him, I have, D
however, not been able to persuade myself to hold that such
deliberate, neglect or contumacious failure has been
established against the petitioner-tenant in the instant case
so as to justify the exceptional step of the Court striking out his
defence at the threshold. E
3. The facts giving rise to the controversy have been set
out at great length in the judgment of my Erudite Brother. I,
therefore, do not consider it necessary to recapitulate the same
over again except to the extent it may be necessary in the
course of this judgment to do so. Before adverting to the factual F
matrix relevant to the question of striking out the tenant's
defence, we need to remind ourselves of the spirit underlying
the Rent Control Legislations in general and Delhi Rent Control
Act, 1958 in particular. The historical perspective in which these
legislations came about has been traced in several decisions G
of this Court. Nagindas Ramdas v. Dalpatram lchharam@
Brijram and Ors. (1974) 1SCC242 is one such decision in
which this Court traced the historical compulsions that led to
the enactment of the rent laws in this country. The broad policy
H
1598 SUPREME COURT REPORTS . [2014) 14S.C.R.
A underlying these laws including the Delhi Rent Control Act,
observed this Court, was to protect the tenants against
unreasonable demands of the landlords as to rents, evictions
and repairs. The following passage is an apposite reminder
of the times that saw the enactment of these laws and the
B purpose underlying the same:
" ... The strain of the last World War, Industrial
Revolution, the large-scale exodus of the working
people to urban areas and the social and political
changes brought in their wake socia/"problems of
c considerable magnitude and complexity and their
concomitant evils. The country was faced with spiralling
inflation, soaring cost of living, increasing urban
population and scarcity of.accommodation. Rack
renting and large scale eviction of tenants under the
D guise of the ordinary law, exacerbated those conditions
making the economic life of the community unstable
and insecure. To tackle these problems and curb these
evils, the Legislatures of the States in India enacted
Rent Control legislations ...
E
... The language of the preambles of the Delhi Rent Act
and Madras Rent Act is strikingly similar. The broad
policy and purpose as indicated in their preambles is.
substantially the same viz.. "to protect tenants against
their landlords in respect of the rents. evictions and
F
repairs". With the same beneficent end in view. all the
three Acts interfere with contractual tenancies and make
provisions for fixation of fair and standard rents. or ·
protection against eviction of tenants not only during
the continuance of their contractual tenure but also after
G
its determination. Indeed, the neologism "statutory
tenant" has come into existence because of this
protective policy which is common to all enactments of
this kind... "
H (emphasis supplied)
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1599
SAINI & ORS. [T. S. THAKUR, J.]
4. The above decision was followed in D.C. Bhatia and A
Ors. v. Union of India and Anr. (1995) 1 SCC 104 in which
this Court referred to the challenge mounted against such rent
laws and the restrictions placed by the same upon the rights
of the landlord to seek eviction of their tenants. This Court while
upholding the constitutional vires of The Delhi Rent Control B
Act, 1958 restricted the eviction of tenants except on the special
grounds stated in the statute. Reference may also be made to
Ashoka Marketing Ltd. and Anr. v. Punjab National Bank
and Ors. (1990) 4 SCC 406 where the Delhi Rent Act once
again fell for consideration before a Constitution Bench of this C
Court. Relying upon the Statement of Objects and Reasons of
the enactment, this Court held that the purpose of the Act, inter
alia, was to give the tenants a larger measure of protection
against eviction. This Court observed:
"... The statement of objects and reasons for the D
enactment of the Rent Control Act, indicates that it has
been enacted with a view:
(a) to devise a suitable machinery for expeditious
adjudication of proceedings between landlords and E
tenants;
(b) to provide for the determination of the standard rent
payable by tenants of the various categories of
premises which should be fair to the tenants, and at the
same time, provide incentive for keeping the existing F
houses in good repairs, and for further investment in
house construction; and
(c) to give tenants a larger measure of protection
against eviction.
G
This indicates that the object underlying the Rent
Control Act is to make provision for expeditious
adjudication of disputes between landlords and tenants,
determination of standard rent payable by tenants and
giving protection .against eviction to tenants. The H
1600 SUPREME COURT REPORTS [2014] 14 S.C.R.
A . premises belonging to the Government are excluded
from the ambit of the Rent_ Control Act' which means
that the Act has been enacted primarilv to regulate the
private relationship between landlords and tenants with
a view to confer certain benefits on the tenants and at
B the same time to balance the interest of the landlords
bv providing for expeditious adjudication of
.
proceedings between landlords and tenant. .. ,,
.
(empahasis supplied)
c 5. The Delhi Rent Control Act though originally drafted
with the highly pro-tenant objective has been amended in the.
years 1960, 1963, 1976, 1984, 1988 and 1995. The Delhi
Rent (Repeal) Bill, 2013 is currently pending before the
Parliament which aims at safeguarding the interests of
D landlords. Significantly, the 1988 Amendment limited the
application of the Delhi Rent Control Act to only such premises
as were let out for a rent of less than Rs.3500/- per month. In
D.C. Bhatia's case (supra) this Court observed that the object
of the Amending Act was quite different from the objects of the
E Parent Act and that the Amending Act was an attempt to
rationalize the Rent Control Act by restoring the balance
between the interests of the landlords and tenants. The Court
said:
"... As a result of these legislations a host of problems
F have cropped up. These problems have been stat.ed
in the various Committee Reports set out earlier in the
judgment. Representations were also made by the
landlords highlighting these problems. In order to tackle.
the problems created by the Rent Act, .the Delhi Rent
G Control Act was amended in 1988 by Delhi Rent Control
Amending Act, 1988 (Act 57of1988). '
... The objects of the Amending Act are quite different
from the objects of the parent Act. One of the objects of
Amending Act was to rationalise the Rent Control Law
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1601
SAINI & ORS. (T. S. THAKUR, J.]
by bringing about a balance between the interest of A
landlords and tenants. The object was not merely to
P.rotect the weaker section of the community. In fact. the
representations made by the landlords' association and
the reports of various Committees indicated. the laws
were being very often abused by the rich tenants against B
poor or middle Class landlords. The Rent Act had
brought to a halt house-building activity for letting out.
Many people with accommodation to spare did not let
out such accommodation for the fear of losing the
accommodation altogether As a result of all these. there c
was acute shortage of accommodation which caused
hardship to the rich and the poor alike. In the light of
this experience, the Amending Act of 1988 was passed.
... In order to strike a balance between the interests of
the landlords and also the tenants and for giving a boost D
to house building activity, the Legislature in its wisdom
has decided to restrict the protection of the Rent Act
only to those premises for which rent is payable upto
the sum of Rs. 3, 5001- per month and has decided not
to extend this statutory protection to the premises · E
constructed on or after the date of coming into operation
of the Amending Act for a period of ten years. This is a
matter of legislative policy. The Legislature could have
repealed the Rent Act altogether It can also repeal it
step by step. It has decided to confine the statutory F
protection to the existing tenancies whose monthlvrent
did not exceed Rs. 3. 500/-."
(emphasis supplied)
6. Having said that, we must refer to the decision of this G
Court in Mis Rahabhar Productions Pvt. Ltd. v. Rajendra
K. Tandon (1998) 4 SCC 49, where this Court held that while
the provisions of the rent law must be construed harmoniously
so as to balance the rights and obligations of the tenant and
H
1602 SUPREME COURT REPORTS [2014] 14 S.C.R.
A the landlord, Courts cannot be unmindful of the fact that the
legislative object of the law continues to be to curb the tendency
of the landlords to evict the tenants on one pretext or the other
so that the former can rent out the premises at a higher rate of
rent. This Court observed:
B ~... The Act which was brought on the Statute book in
1958 is a composite legislation in the sense that while
providing protection to the tenants who, under common
law, including Transfer of Property Act, could be evicted
from the premises let out to them, at any time by the
c landlord on the termination of their tenancy, it restricts
the right of the landlords to evict the tenants at their will.
The Act is thus beneficial as also restrictive in nature.
The Courts are. therefore. under a legal compulsion to
harmoniouslv read the provisions of the Act so as to
D balance the rights of the landlord and the obligations
of the tenant towards each other keeping in mind that
one of the objects of the legislature while enacting the
Act was to curb the tendencv of the greedv landlords to
throw out the tenants. paving lower rent. in the name of
E personal occupation and rent out the premises at the
market rate ... "
(emphasis supplied)
7. There is thus no gainsaying that while legislative
F intervention has tried to moderate the law with a view to
restoring the balance between the rights and obligations of
the landlords on the one hand and the tenants on the other, the
spirit and purpose underlying the rent legislation continues to
be to protect the tenants against arbitrary and unfair demands
G for eviction or enhancement of rents. The pendulum has
undoubtedly swung in favour of the landlords not only by reason
of these amendments to the rent legislation which were
perceived to be halting house-building activity and leading to
a visible reluctance among the owners to let out the available
H
DINA NATH (D)BYLRS. &ANR. v. SUBHASH CHAND 1603
SAINI & ORS. [T. S. THAKUR, J.]
accommodation for fear of losing the same altogether. Judicial A
pronouncements have also liberalized the approach to be
adopted qua the landlord's prayer for eviction when such
eviction is sought on the ground of bona fide personal need of
the landlord. Decisions of this Court in Mst. Bega Begum
and Ors. v. Abdul Ahad Khan (Dead) by LRs. and Ors. B
(1979) 1 SCC 273, Mis Central Tobacoo Co. Bangalore v.
Chandra Pakash 1969 (2) UJ 432 and Phiroze Bamanji
Desai v. Chandrakant N. Patel and Ors. 1974 (1) SCC 661,
interpreted the Rent Control legislation rather narrowly placing
a relatively heavier burden on the landlords in cases where c
vacation of the tenants was sought on the ground of bona fide
personal requirement of the former. Recent decisions have
made a significant departure from that approach. In Mohd.
Ayub and Anr. v. Mukesh Chand (2012) 2 SCC 155 this
Court observed that the landlord's requirement need not be D
one of dire necessity. So long as the need was bona fide, the
mere affluence of the landlord would not be a ground to reject
his application for eviction. To the same effect is the decision
of this Court in Bhimanagouda Basanagouda Patil v. Mohd.
Gudusaheb (2003) 3SCC101. E
8. The noticeable shift in the approach adopted towards
eviction matters based on personal bona fide requirement
does not, however, necessarily cascade into a similar approach
towards grounds other than personal requirement, especially
where the default in the payment of rent is set up as a ground F
for eviction. In such cases, the Courts will have to adopt a
relatively liberal approach towards the tenant. Just because
there is a default in payment of rent may not necessarily result
in an order of eviction unless the statute clearty or unequivocally
so mandates. G
9. In the case at hand, ?ection 15(7) of the Delhi Rent
Control Act leaves wide discretion with the Trial Court whether
or not to strike out the defence of the tenant even where a
-default is proved. Exercise of that discretion in turn depends H
1604 SUPREME COURT REPORTS (2014) 14 S.C.R.
A upon whether or not the default in payment of rent is seen by
the Courts to be deliberate or contumacious in nature. That is
because Section 15(7) of the Delhi Rent Control Act cannot
be so interpreted as to negate or frustrate the spirit of the
legislation which aims at granting protection to the tenants from
B eviction. The provision must be so constru_ed as to promote
the object underlying the Act. To the same effect are the
pronouncements of this Court in which this Court has
considered striking off the defence of the tenant to be an
"exceptional step" warranted only when the tenant's conduct
c is seen to be negligent, deliberate or contumacious.
10. In Miss Santosh Mehta v. Oin Prakash and Ors.
(1980) 3 SCC 610while interpreting Section 15 (7) of the Delhi
Rent Control Act Krishna Iyer J. held t~at the power to strike
out the party's defence is an exceptional step and is only to be
D exercised where a "mood of defiance" and "gross negligence"
on the part of the tenant is detected. This Court warned against
the landlord using Section 15 (7) as a "booby trap"to get the
tenant evicted. One can do no better. than to reproduce fhe
passage in which this Court indicated the correct approach to
E be adopted in such matters. This Court said:
"3. We must adopt a socially informed perspective while
construing the provisions and then it will be plain that
the Controller is armed with a facultative power. He may,
or not strike out the tenant's defence. A judicial
F
discretion has built-in-self-restraint, has the scheme of
the statute in mind, cannot ignore the conspectus of
circumstances which are present in the case and has
the brooding thought playing on the power that, in a
court, striking out a party's defence is an exceptional
G step. not a routine visitation of a punitive esteem
following upon a mere failure to pay rent. First of all,
there must be a failure topay rent which, in the context,
indicates willful failure. deliberate default or volitional
non-performance. Secondly, the Section provides no
H
DINA NATH (D) BY LRS. &ANR. v. SUB HASH CHAND 1605
SAINI & ORS. [T. S. THAKUR, J.]
automatic weapon but prescribes a wise discretion, A
inscribes no mechanical consequence but invests a
power to overcome intransigence. Thus, if a tenant fails
or refuses to pay or deposit rent and the court discerns
a mood of defiance or_gross neglect. the tenant inay
forfeit his right to be heard in defence. The last resort B '
cannot be converted into the first resort; a punitive
direction of court cannot be used as a booby trap to get
the tenant out. Once this teleological interpretation
dawns, the mist of misconception about matter of-course
invocation of the power to strike out will vanish. Farewell c
to the realities of a given case is playing truant with the
duty underlying the power.
4... The effect of striking out of the defence under s. 15(7)
is that the tenant is deprived of the protection given by
s. 14 and, therefore, the powers under s. 15(7) of the D
Act must be exercised with due circumspection." ·
(emphasis supplied)
11. Subsequent decisions rendered on the subject have
not, in my opinion, in the least bit diluted leave alone digressed ' E c
from the above principles that governs the exercise of power
under Section 15(7). Even later decision of this Court in Miss
Santosh Mehta's case (supra) also recognises that mere
failure to pay rent is not enough to justify an order striking out
the defence. It is only wilful failure, deliberate default or volitional F ·
non-performance that can call for the exercise of that
extraordinary power vested in the Court. More importantly, .the ·
plenitude of the discretionary power of the Court under Section
15 (7) was held to be vesting a wise discretion and not an
auto_matic weapon to be used against the tenant. The power G
to strike out the defence is available only to overcome
intransigence, especially when the power is penal in nature,
the exercise whereof would deprive the tenant of the protection
available to him under Section 14. The same must, therefo"re, ·
be exercised with due care and circumspection. H·
1606 SUPREME COURT REPORTS [2014) 14 S.C.R.
A 12. Even in Smt. Kam/a Devi v. Shri Vasudev (1995)
1 SCC 356 this Court reiterated that the power to strike out
the defence simply vested the Rent Controller with the discretion
to do sq. It was not mandatory for the Rent Controller to strike
out the defence simply because a default had occurred. The
B exercise of that discretion obviously depends upon the facts
and circumstances of each case. The deeision in Mis Jain
Motor Car Co., Oelhi v. Smt. Swayam Prabha Jain & Anr.
(1996) 3 sec 55 does not disturb the legal parameters
regulating the exercise of the power but deals more with the
c facts and circumstances of that case in which the power was
found to have been rightly exercised.
13. Coming then to the case at hand there are three
distinct aspects from which the question of default in payment
of rent has to be viewed. The first and foremost is whether the
D arrears which the Court determined and directed the petitioner
to pay were paid. The answer to that question is in the
affirmative. The Trial Court passed an order dated 21-04-2008
under Section 15( 1) of the Delhi Rent Control Act, 1958
directing the petitioner to deposit arrears of rent from 1st
E November, 2007 to April, 2008 and to continue to pay future
rent@ Rs.66/- p.m. by the 15th of each succeeding English
calendar month. It is not in dispute that the petitioner complied
with the order regarding deposit of arrears in the right earnest
inasmuch as on 21"April, 2008, the date on which order under
F Section 15(1) was passed. He paid to respondent No.1 the
entire amount in cash representing arrears of rent from 1st
November, 2007 to April, 2008.
14. The second aspect is that over and above the amount
directed to be deposited, the petition.er paid an amount
G equivalent to ten months rent, although there was neither any
legal obligation cast upon him to do so nor was any direction
issued by the Trial Court for making any such payment. It is
also common ground that though the excess amount paid by
the petitioner did not represent any admitted liability, the excess.
H
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1607
SAINI & ORS. [f. S. THAKUR, J.]
amount received was neither adjusted against future rent nor A
was it refunded to him. It is significant to note that although the
respondent-landlord had claimed arrears even for the period
beginning from 1't January,, 2007 to October, 2007, the Trial
Court had excluded that period from its order as the liability
for that period was disputed on accoun.t of the specific case B
set up by the petitioner that rent for the said period stood paid.
Adjustment of the excess amount paid to the respondent-
landlord towards the future rent for the period commencing
from 1't May, 2008 was the only legal option. Payment of the
said excess amount having been acknowledged by the c
landlord, the same must in the absence of a direction from the
Court be deemed to have been received and held by. the
landlord for the benefit of the tenant. Adjustment of any such
excess amount against future liability was in that view the only
possible and legally valid method of appropriation of that D
amount. Viewed thus, the amount paid by the petitioner on
21"April, 2008 covered the entire period upto February, 2009.
15: The third aspect is that between the date of the order
dated 21" April, 2008 under Section 15(1) of the Act till
February, 2009 the petitioner had made further payments of E
rent. One of these payments was made on 27th June, 2008
while the second payment was made on 17th December, 2008.
These payments represented rent for a period of six months.
This means that the petitioner had paid advance rent upto 31 't
August, 2009. Not only that, the petitioner had made two further F
deposits, one on 1't May, 2009 and the second on 5th May,
2009. These payments when taken into consideration cleared
!he entire rent liability of the petitioner for a period of one year
ari.d nine months commencing from 1't September, 2009
onwards. If that be so the petitioner was not in default on the G
date of the order passed by the Trial Court striking out his'
defence and for a considerable period beyond that. The
petitioner has in the special leave petition referred to certain
subsequent payments also but we consider it unnecessary to
H
1608 SUPREME COURT REPORTS [2014] 14 S.C.R.
A go into those details. What is important is that as on the date
of the order passed by the Trial Court on 21 ' 1April, 2008 itself
the entire arrears directed to be deposited by the petitioner
stood paid by him and so also on the date of the order passed
by the Tri~I Court striking out his defence, rent forthe entire
B intervening period and even beyond had been paid. These
payments may require reconciliation, calculations and suitable
adjustments against the months for which rent was payable
but what cannot be disputed is that the amount which the
petitioner was cailed upon to pay and which he has, pursuant
c to the direction of the Trial Court, paid or deposited has been
at all relevant points of time in excess of what was payable to
the landlord. The charge of contumacious failure and deliberate
default in making the payment levelled against the tenant is,
therefore, not well-founded. The petitioner on the contrary was
D at all points of time keen to pay the amount of rent in excess of
what was lawfully due. This may have been partly because of
. the consequences that flow from non-payment and partly
because the amount of contractual rent is, by the current
standard of market rent, very meagre. The withholding of such
E a meagre amount was a risk that no prudent tenant protected·
under the Rent Control law of the land could take nor was it a
case where by withholding the kind of amount which was due
towards rent would have in any manner benefitted the tenant,
just as the same would not have deprived the landlord of any
F major financial income from the property let out by him. It is
true that just because the amount payable for the premises is
low and payment or non-payment thereof makes little difference
to either the tenant or the landlord, is no reason for the tenant
not paying the rent as and when due. The question, however,
G is not whether the denial of the amount would have caused
any major prejudice-to the landlord or put the tenant under any
financial burden. The question is whether the tenant was guilty
of contumacious conduct in withholding such payment. While
answering that question, the amount of rent payable for the
H premises may be a factor which cannot be totally brushed
DINA NATH (D) BY LRS. &ANR. v. SUBHASH CHAND 1609
SAINI & ORS. [T. S. THAKUR, J.]
aside. Suffice it to say that the facts and circumstances of the A
case at hand do not, in my opinion, suggest any negligence,
defiance or contumacious non-payment of the amount due to
the landlord to warrant the taking of that "exceptional step"
which is bound to render the tenant defenceless in his contest
against the landlord. B
16. It is noteworthy that in the course of hearing before
us, learned counsel forthe petitioner-tenant had offered to raise
rent by ten times of the current amount and pay the same in
advance for a period of five years to show his bona tides. From
the point of view of the landlords this may be seen as a damage C
control desperate bid to avoid eviction by winning the sympathy
of the Court but from the point of view of the tenant it only shows
that the tenant does not grudge the landlord getting what is
legitimately due to him. The cumulative effect of all these
circumstances, in my view, entitles the tenant to an opportunity D
to contest the suit for eviction, It is a different matter that the
contest may eventually result in his eviction but there is no need
to prejudge the matter on merits nor any valid reason to deprive
the tenant-petitioner the bare minimum opportunity to contest
the eviction petition on merits. E
17. In the result, I allow this appeal, set aside the order.
· passed by the Courts below and dismiss the petition filed by
the respondent-landlords under Section 15(7) of the Delhi Rent
Control Act leaving it open to the petitioner to make good his F
offer by enhancing the rent voluntarily by ten times the current
rent and depositing the future rent for a period of five years, as
offered by him, in advance. The parties are left to bear their
own costs.
Kalpana K. Tripathy Matter referred to three Judge Bench.
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