HARJIT SINGH UPPALversusANUP BANSAL
- Citation
- 2011 INSC 401
- Decided
- 13 May 2011
- Disposal
- Appeal(s) allowed
- Bench
- AFTAB ALAM
Holding
Section 15(1)(b) of the 1949 Rent Act does not preclude a party from challenging an interlocutory order in a later appeal against the final order, and the appellate authority may examine the legality of the provisional rent order even if no separate appeal was filed against it.
Summary
The landlord filed a petition under the East Punjab Urban Rent Restriction Act, 1949 to evict the tenant for alleged rent arrears, and the Rent Controller fixed a provisional rent and ordered payment. The tenant applied to recall that order, alleging the controller had ignored his payment records, but the controller rejected the applications and ordered eviction. The tenant appealed both the eviction order and the provisional rent order under Section 15(1)(b), and the appellate authority set aside both orders, directing a fresh assessment. The High Court reversed this, holding that the tenant’s failure to appeal the provisional rent order barred its challenge, and restored the eviction order. The Supreme Court held that Section 15(1)(b) does not make an appeal against an interlocutory order mandatory, and the appellate authority could examine the provisional rent order in the appeal against the eviction order. Consequently, the Supreme Court set aside the High Court’s decision and restored the appellate authority’s order.
Issues considered
- Whether a failure to appeal an interlocutory order under Section 15(1)(b) of the East Punjab Urban Rent Restriction Act, 1949 bars its challenge in a later appeal against the final eviction order.
- Whether the appellate authority can re‑examine the legality of the provisional rent order when the tenant challenges the eviction order.
Legislation cited
- Code of Civil Procedure, 1908s. 104, s. 105, s. 97
- East Punjab Urban Rent Restriction Act, 1949s. 13(2)(i) proviso, s. 15(1)(b)
Subjects
Judgment
[2011] 15 (ADDL.) S.C.R. 948
A HARJIT SINGH UPPAL
v.
ANUP BANSAL
(Civil Appeal No. 4416 of 2011)
MAY 13, 2011
B
[AFTAB ALAM AND R.M. LODHA, JJ.]
East Punjab Urban Rent Restriction Act, 1949 - ss.
15(1)(b) and 13(2)(i) provico - Eviction petition on the ground,
c of default in payment of rent - Order by the Rent Controller
determining the provisional rent uls. 13(2)(i) proviso - Tenant
not availing his remedy to challenge the same by filing fn
appeal u/s. 15(1)(b) within the time prescribed - Effect of -
Held: It cannot be said that the order fixing provisional rent
becomes final and cannot be challenged subsequently,
D particularly, in the appeal challenging the order of eviction -
s. 15(1)(b) does not make it imperative upon the person
aggrieved to appeal from an interlocutory order and, if he
does not do so, his right gets forfeited when he challenges
the final order - An order of eviction follows if there is non-
E compliance of the order determining the provisional rent -
However, when the tenant challenges the order of eviction in
appeal and therein also challenges the order determining the
provisional rent, it is not open to the Appellate Authority to
refuse to consider the legality and validity of the order
F determining the provisional rent on the ground that no appeal
was filed from that order though an appeal lay therefrom -
Thus, .tlj:e app&llate authority did not commit any e"or in
calling upon the Rent Controller to determine the arrears of
rent, interest and costs afresh as the tenant's statement of
G payments towards rent was not refe"ed to and considered by
tha..Rf?nf Controller - Order passed by the High Court is set
aside- and that of the appellate court is restored.
The respondent-landlord filed a petition under
Section 13 of the East Punjab Urban Rent Restriction Act,
H 948
HARJIT SINGH UPPAL v. ANUP BANSAL 949
1949 to evict the appellant-tenant on the ground of A
default in paying rent since April, 2007, before the Rent
Controller. The Rent Controller by order dated 11.06.2009
determined the provisional rent and directed the tenant
to make the payment of arrears of rent within a week. On
07.09.2009, the tenant filed an application before the Rent
8
Controller for recalling the order dated 11.06.2009 since
the particulars of payment of rent furnished by the tenant
were not considered. The tenant filed more applications.
On 07 .04.2010, the Rent Controller rejected all the
applications and passed an order of eviction against the
tenant holding that there was no provision of law under C
which the order dated 11.06.2009 could be recalled/
reviewed. The tenant filed an appeal under Section
15(1 )(b) of the 1949 Act before the appellate authority and
challenged the orders dated 07.04.2010 and 11.06.2009
passed by the Rent Controller. The appellate authority D
holding that the provisional assessment order dated
11.06.2009 was patently illegal, remanded the matter to
the Rent Controller with a direction to pass fresh order
regarding the provisional assessment of the arrears of
rent, interest and costs of the proceedings. The E
respondent-landlord filed a revision petition challenging
the order passed by the Appellate Authority. The Single
Judge of the High Court allowed the revision petition
holding that since the tenant did not avail his remedy to
challenge the order fixing provisional rent, during the
period between the date of the order and date fixed for F
payment, the Rent Controller had no choice but to pass
an order of eviction. The order of the appellate authority
was set aside and that of the Rent Controller was
restored. Therefore, the appellants filed the instant .
appeal. G
Allowing the appeal, the Court
HELD: 1.1. The order passed by the Rent Controller
determining the provisional rent in an eviction petition
a
based on the ground of default in situation where the H
950 SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A tenant fails to comply with that order may be a
foundational order for an order of eviction that follows but
nevertheless such order is an interlocutory order as that
order does not determine the principal matter finally; it is
only the order on subordinate matter with which it deals.
B [Para 30] [964-F-G]
1.2. Section 15(1)(b) of the East Punjab Urban Rent
Restriction Act, 1949 provides that a person aggrieved by
an order passed by the Rent Controller may prefer appeal
to the Appellate Authority within the time prescribed
C therein. The provision, for maintaining the appeal, does
not make any difference between the final order and
interlocutory order passed by the R.ent Controller in the
. proceedings under the 1949 Rent Act. It does not say that
if any aggrieved person by an interlocutory order passed
by the Rent Controller from which an appeal lies does not
D appeal therefrom, he shall thereafter be precluded from
disputing its correctness. There is no provision in Section
15(1)(b), a provision like Section 105 (2) and Section 97
of the Code of Civil Procedure. There is no impediment
for an aggrieved person, on reading Section 15(1)(b) of
E the 1949 Rent Act, that an interlocutory order which had
not been appealed though an appeal lay, could not be
challenged in an appeal from the final order. Section
15(1)(b) does not make it imperative upon the person
aggrieved to appeal from an interlocutory order and, if he
F does not do so, his right gets forfeited when he
challenges the final order. [Paras 25, 31 and 32] [960-F-
H; 964-G-H; 965-A-C]
1.3. An order of eviction follows as a matter of course
if there is non-compliance of the order determining the
G provisional rent but when tenant challenges the order of
eviction and therein also challenges the order of fixation
of provisional rent-the order of eviction, in its nature,
being dependant on the correctness of the order fixing
the provisional rent and there being no Jndication to the
H contrary in Section 15(1)(b), it must be open to the
HARJIT SINGH UPPAL v. ANUP BANSAL 951
Appellate Authority to go into correctness of such A
provisional order when put in issue. [Para 33] [965-C-D]
2.1. The High Court erred in holding that as tenant did
not avail of his remedy to challenge the order fixing
provisional rent during the period between the date of the
order and date fixed for payment, the Appellat& Authority B
could not have gone into the merits of such determination
and, set aside the order of the Appellate Authority. The
legal position is where a tenant does not challenge the
order of the fixation of provisional rent passed under
Section 13(2)(i) proviso, in appeal under Section 15(1)(b) c
and also fails to comply with that order, the order of
eviction must follow as per the provisions contained in
the 1949 Rent Act but when the tenant challenges the
order of eviction in appeal and therein also challenges the
order determining the provisional rent, it is not open to 0
the Appellate Authority to refuse to consider the legality
and validity of the order determining the provisional rent
on the ground that the correctness of such order cannot
be examined as no appeal was filed from that order
though an appeal lay therefrom. [Para 40] [970-E-H]
E
2.2. On the facts of the instant case, the appellate
authority did not commit any error in calling upon the
Rent Controller to determine the arrears of rent, interest
and costs afresh as the tenant's statement of payments
towards rent from April, 2007 was not at all referred to and
considered by the Rent Controller. If the order of the High F
Court is allowed to stand, it would occasion in manifest
injustice and result in miscarriage of justice inasmuch as
the tenant would be thrown out of the leased premises
although he may not have been in arrears of rent. In the
circumstances, re-determination of arrears of rent, G
interest and costs by the Rent Controller, as directed by
the appellate authority, would subserve the ends of
justice. If on re-determination, the tenant is found in
arrears of rent and does not deposit/pay the amount as
determined by the Rent Controller in time, as may be H
952 SUPREI\ E COURT REPORTS (2011] 15 (ADDL.) S.C.R.
A directed, obviously he would suffer the order of eviction.
Thus, the order passed by the High Court is set aside and
the order passed by the appellate court is restored. [Paras
41, 42) [971-A-D]
Rakesh Wadhawan and others v Jagdamba Industrial
B Corporation and others (2002) 5 SCC 440; Vinod Kumar v.
Prem Lata (2003) 11 SC 397; Maharajah Moheshur Sing v.
The Bengal Government (1859) 7 Moore's Indian Appeals
283; Nanibala Dasi and Another v. lchhamoyee Dasi and Ors.
AIR 1925 Cal 218; Baikunta Nath Dey v. Nawab Salimulla
c Bahadur (1907) 6 C.L.J. 647; Mackenzie v. Narsingh Sahai
(1909) 36 Cal 762; Khirodamoyi Dasi v. Adhar Chandra
Ghose (1912) 18 C.L.J. 321; Sadhu Charan Dutta v.
Haranath Dutta (1914) 20 C.W.N. 231; Kuloda v. Ramanand
A.l.R. 1921 Cal.109; Syed Ishak Syed Farid and Anr. v.
Kunjbihari Singh Sirdhujasingh Kshatriya A.l.R. 1940 Nagpur
0
104 - referred to.
Case Law Reference:
(2003) 11 SC 397 Referred to. Para 19
(1859) 7 MIA 283 Referred to. Para 26
E AIR 1925 Cal 218 Referred to. Para 28
(1907) 6 C.L.J. 647 Referred to. Para 28
(1909) 36 Cal 762 Referred to. Para 28
(1912) 18 C.L.J. 321 Referred to. Para 28
F (1914) 20 C.W.N. 231 Referred to. Para 28
AIR 1921 Cal.109 Referred to. Para 28
AIR 1940 Nagpur 104 Referred to. Para 29
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
G 4416 of 2011.
From the Judgment & Order dated 23.9.2010 of the High
Court of Punjab & Haryana at Chandigarh in C.R. No. 4144 of
2010 (O&M).
H
HARJIT SINGH UPPAL v. ANUP BANSAL 953
Rishi Malhotra; Mrinmayee Sahu, Prem Malhotra for the A
Appellant.
Dr. Rajeev Dhawan, Naresh Kumar for the Respondent.
The Judgment of the Court was delivered by
R.M. LODHA, J. 1. Leave granted. B
2. The main question for determination in this appeal, by
special leave, is: If a tenant {loes not avail his remedy to
challenge the order of the provisional rent fixed under Section
13(2)(i) proviso to the East Punjab Urban Rent Restriction Act,
1949 (for short, '1949 Rent Act') by filing an appeal under C
Section 15(1)(b) within 15 days from date of such order,
whether the order fixing provisional rent becomes final and
cannot be challenged subsequently, particularly, in the appeal
challenging the order of eviction.
3. The facts are these. The petition under Section 13 of D
the 1949 Rent Act was filed by the Respondent ('landlord') to
evict the appellant ('tenant') from Komfort Banquet Hall,
Zirakpur-Panchkula Road, Zirakpur, Tehsil Dera Bassi, District
S.A.S. Nagar (Mohali). (for short, 'the premises') before the
Court of Rent Controller, Dera Bassi on December 6, 2008. E
The landlord averred that the premises were leased out to the
tenant for a term of five years commencing from August 11,
2003 at the rent of Rs. 1,50,000/- per month. As per the terms
of lease, rent would increase at the rate of 5 per cent every year
on the last prevailing rent and it was also agreed that the tenant F
shall pay the rent for every month in advance by the 7th of month.
It is the case of the landlord that tenant stopped paying the rent
since April, 2007 regularly. Ultimately, after the expiry of the first
lease period, the tenant requested for reduction in rent and he
agreed to pay the rent of the premises at the rate of Rs.
1,50,000/- per month with effect from August 11, 2008 for the G
period of 31 months. The tenant also agreed to pay the Service
Tax at the rate of 12.5 per cent and also increase the rent at
the rate of 5 per cent every year on the last prevailing rent.
4. The claim of eviction, inter alia, was founded on the H
954 SUPREME COURT REPORTS [2011) 15 (ADDL.) S.C.R.
A ground of default. It was averred that the tenant failed to make
the payment of rent regularly and has fallen in arrears to the
extent of Rs. 27.84,875.04 along with Service Tax at the rate
of 12.5 per cent.
5. The tenant filed written statement and traversed the
B case set up by the landlord in the petition for eviction. He
averred that the premises were incomplete at the time of lease
and he invested huge amount for its completion by taking loan
from the banks amounting to Rs. 58,98,370/-. The tenant
claimed adjustment of that amount. He also stated in the written
c statement that he has been paying rent to the landlord regularly
- mostly by cheques- and from 2007 he has paid Rs.
37,00,950/- to the landlord. He raised counter claim and
claimed refund of the excess amount paid to the landlord.
6. On June 6, 2009, the tenant filed an affidavit before the
D Rent Controller setting out in detail the statement of the payment
of rent made by him from April, 2007 amounting to Rs.
37,00,950/-.
7. The Rent Controller determined the provisional rent on
June 11, 2009 assessing the arrears of rent provisionally at Rs.
E 27 ,84,875.04. The Rent Controller directed the tenant to make
the payment of arrears of rent as determined with interest at
the rate of 6 per cent per annum and costs of Rs. 1,000/- on
July 18, 2009.
8. On September 7, 2009, the tenant made an application
F before the Rent Controller for recalling the order dated June 11,
2009, amongst other grounds, on the ground that his affidavit
as well as the written statement that he has also paid Rs.
37,00,950/- to the landlord by way of cheques has not at all
been considered.
G 9. The tenant made another application on February 9,
2010 before the Rent Controller for calling upon the landlord to
provide list of his employees along with attendance register.
This, the tenant said, was required to prove the factum of .
payment made by him to the landlord.
H
HARJIT SINGH UPPAL v. ANUP BANSAL 955
[R.M. LODHA, J.]
10. By yet another application, the tenant annexed copies A
of cheques which were duly encashed by the Manager of the
landlord. He claimed adjustment of those payments whUe
assessing provisional rent.
11. The landlord submitted reply to each of these
applications, denied their correctness and submitted that the B
applications were not maintainable and have been made to
delay, the eyic,tion proceedings.
12. The Rent Controller considered all these applications
together and by her order dated April 7, 2010 rejected each
one of these applications. The Rent Controller held that there C
was no provision of law under which the order dated June 11,
2009 could be recalled/reviewed. It was held, relying upon a
decision of this Court in Rakesh Wadhawan and others v.
Jagdamba Industrial Corporation and others1 , that on the
failure of the tenant to comply with the order of the provisional D
assessment of arrears of rent, nothing remains to be done and
order of eviction has to follow. Accordingly, the Rent Controller
passed the order of eviction against the tenant on April 7, 2010.
13. The tenant preferred an appeal under Section 15(1)(b)
of the 1949 Rent Act before the Appellate Authority assailing E
the orders dated April 7, 2010 and June 11, 2009 passed by
the Rent Controller.
14. The Appellate Authority heard the parties and held that
the provisional assessment order dated June 11, 2009 was
patently illegal. The Appellate Authority, accordingly, allowed the F
appeal by its order dated June 10, 2010, set aside the .orders
dated April 7, 2010 and June 11, 2009 passed by the Rent
Controller and remanded the matter to the Rent Controller with
a direction to pass fresh order regarding the provisional
assessment of the arrears of rent, interest and costs of the G
proceedings. The Appellate Authority also directed the Rent
Controller to give to the parties an opportunity to produce the
documents/affidavits in support of their rival stand in respect
of the rent.
1. (2002) s sec 440 H
956 SUPREME COURT REPORTS [2011) 15 (ADDL.) S.C.R.
A 15. The landlord challenged the order passed by the
Appellate Authority in the revision petition before the High Court
of Punjab and Haryana. The Single Judge of that Court held
that since the tenant did not avail his remedy to challenge the
order fixing provisional rent, during the period between the date
8 of the order and date fixed for payment, the Rent Controller had
no choice but to pass an order of eviction. The High Court,
accordingly, by its order dated September 23, 2010 allowed
the revision petition and set aside the order of the Appellate
Authority and restored the order of the Rent Controller.
c 16. Section 13(2)(i) and the proviso appended thereto of
the 1949 Rent Act reads as follows :
·s. 13. Eviction of tenants.--(1) ................................ .
(2) A landlord who seeks to evict his tenant shall apply to
the Controller for a direction in that behalf. If the Controller,
D after giving the tenant a reasonable opportunity of showing
cause against the applicant, is satisfied-
(i) that the tenant has not paid or tendered the rent due
by him in respect of the building or rented land
within fifteen days after the expiry of the time fixed
E in the agreement of tenancy with his landlord or in
the absence of any such agreement, by the last day
of the month next following that for which the rent is
payable:
Provided that if the tenant on the first hearing of the
F application for ejectment after due service pays or tenders
the arrears of rent and interest at six per cent per annum
on such arrears together with the cost of application
assessed by the Controller, the tenant shall be deemed to
have duly paid or tendered the rent within the time
G aforesaid;
(ii) ................................. .
(iii) ............................... .
(iv) ............................... .
(v) ............................... •
H
HARJIT SINGH UPPAL v. ANUP BANSAL 957
[R.M. LODHA, J.)
17. The provision of appeal from an order passed by the A
Rent Controller is made in Section 15 of the 1949 Rent Act.
To the extent it is relevant, it reads as under :
·s. 15. Vesting of appellate authority on officers by State
Government.-
B
(1 )(a) .............................................................. .
(1) (b) Any person aggrieved by an order passed by the
Controller may, within fifteen days from the date of such
order or such longer period as the appellate authority may
allow for reasons to be recorded in writing, prefer an c
appeal in writing to the appellate authority having
jurisdiction. In computing the period of fifteen days the time
taken to obtain a certified copy of the order appealed
against shall be excluded.
2. . ....................................... D
3.
4. . ...................................... .
5. •
18. This Court had an occasion to consider Section 13(2)(i) E
and the proviso appended thereto in the case of Rakesh
Wadhawan 1• The Court summed up the conclusions as follows
"30. 1. In Section 13(2)(1) proviso, the words •assessed
by the Controller" qualify not merely the words "the cost of
application" but the entire preceding part of the sentence F
i.e. "the arrears of rent and interest at six per cent per
annum on such arrears together with the cost of
application".
2. The proviso to Section 13(2)(1) of the East Punjab Urban
Rent Restriction Act, 1949 casts an obligation on the G
Controller to make an assessment of (1) arrears of rent, (i1)
the interest on such arrears, and (iit) the cost of application
and then quantify by way of an interim or provisional order
the amount which the tenant must pay or tender on the "first
date of hearing" after the passing of such order of H
958 SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A "assessment" by the Controller so as to satisfy the
requirement of the proviso.
3. Of necessity, "the date of first hearing of the application"
would mean the date falling after the date of such order
by the Controller.
B
4. On the failure of the tenant to comply, nothing remains
to be done and an order for eviction shall follow. If the
tenant makes compliance, the inquiry shall continue for
finally adjudicating upon the dispute as to the arrears of
rent in the light of the contending pleas raised by the
c landlord and the tenant before the Controller.
5. If the final adjudication by the Controller be at variance
with his interim or provisional order passed under the
proviso, one of the following two orders may be made
D depending on the facts situation of a given case. If the
amount deposited by the tenant is found to be in excess,
the Controller may direct a refund. If, on the other hand, the
amount deposited by the tenant is found to be short or
deficient, the Controller may pass a conditional order
directing the tenant to place the landlord in possession of
E the premises by giving a reasonable time to the tenant for
paying or tendering the deficit amount, failing which alone
he shall be liable to be evicted. Compliance shall save him
from eviction.
6. While exercising discretion for affording the tenant an
F opportunity of making good the deficit, one of the relevant
factors to be taken into consideration by the Controller
would be, whether the tenant has paid or tendered with
substantial regularity the rent falling due month by month
during the pendency of the proceedings."
G
19. The decision in Rakesh Wadhawan 1 has been affirmed
by a 3-Judge Bench decision of this Court in the case of Vinod.
Kumar v. Prem Lata2 •
20. Mr. Rishi Malhotra, learned counsel for the tenant
H 2. (2003) 11 sec 397.
HARJIT SINGH UPPAL v. ANUP BANSAL 959
[R.M. LODHA, J.]
argued that the High Court was in error in setting aside the A
order of the Appellate Authority whereby matter was remanded
to the Rent Controller for re-fixation of the provisional rent. He
would submit that the Appellate Authority after considering the
bank statements submitted by the tenant held that the landlord
had concealed various payments which were tendered by the B
tenant. He referred to the finding of the Appellate Authority that
the Rent Controller did not apply her mind while fixing the
provisional rent and accepted the figures s.ubmitted by the
landlord in a mechanical manner without considering the
particulars of payment of rent furnished by the tenant. He argued C
that since the order dated June 11, 2009 determining the
provisional rent was patently illegal, the Appellate Authority did
not commit any error in upsetting that order in the appeal
preferred by the tenant.
21. Dr. Rajeev Dhawan, learned senior counsel for the 0
landlord, on the other hand, in support of the High Court's order,
made the following submissions : {i) the order determining
provisional rent is a foundational order and not an interlocutory
order; such order could have been challenged in appeal under
Section 15( 1){b) of the 1949 Rent Act within 15 days from the
date of passing that order and in no other way; {ii) in the appeal E
challenging the eviction order dated April 7, 2010, the order
determining the provisional rent could not have been
challenged and such challenge was not maintainable; (iii) the
only contention that was raised by the tenant before the Rent
Controller was that he had invested huge amount of Rs. F
58,98,370/- by raising loan from a bank and the said amount
was liable to be adjusted in the arrears of rent; there was no
contention raised about the payment of Rs. 37,00,950/- having
been made towards rent from April, 2007 to the landlord; and
(iv) the whole conduct of the tenant had been to prolong the G
litigation and it was to achieve this objective that the tenant
continued to make. applications one after the other before the
Rent Controller which could not be legally maintained and were
frivolous and without merit.
22. One thing needs to be noticed immediately that H
960 SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A besides the specific averment made by the tenant in the written
statement that he has paid Rs. 37,00,950/- to the landlord
towards rent from April 2007 and no rent was due and payable
by him, in his affidavit dated June 6, 2009, the tenant gave the
details of the payment of Rs. 37,00,950/- having been made
8 to the landlord from April, 2007. The affidavit contains the
cheque numbers, the dates on which such cheques were
issued and the amount of cheques. Dr. Rajeev Dhawan,
learned senior counsel for the landlord did not dispute the
receipt of the copy of the affidavit dated June 6, 2009 by the
landlord on June 11, 2009 before the matter was heard and
C considered by the Rent Controller for determination of the
provisional rent.
23. Curiously, the order dated June 11, 2009, whereby the
provisional rent was determined by the Rent Controller, does
not show any consideration of the affidavit dated June 6, 2009
0 filed by the tenant.
24. The tenant was not satisfied with the order dated June
11, 2009 since the Rent Controller failed to consider the amount
of Rs. 37,00,950/-which he claimed to have paid to the landlord
E towards rent for the period from April, 2007 and, therefore, he
made an application on September 7, 2009 for recalling the
order dated June 11, 2009. This application was decided on
April 7, 2010 and by the same order, the eviction order was
passed against the tenant.
F 25. Section 15(1)(b) of the 1949 Rent Act provides, to a ·
person aggrieved by an order passed by the Rent Controller,
a remedy of appeal. The Section provides for limitation for filing
an appeal from that order and also the forum to which such
appeal would lie. The provision, for maintaining the appeal,
does not make any difference between the final order and
G interlocutory order passed by the Rent Controller in the
proceedings under the 1949 Rent Act. There is no specific
provision in the Section that if a party aggrieved by an
interlocutory order passed by the Rent Controller does not
challenge that order in appeal immediately, though provided,
H and waits for the final outcome, whether in the appeal
HARJIT SINGH UPPAL v. ANUP BANSAL 961
[RM. LODHA, J.]
challenging the final order of the Rent Controller, the A
correctness of the interlocutory order from which an appeal lay
could or could not be challenged in the appeal from the final
order.
26. The observations made by the Privy Council more than
a century and five decades back in Maharajah Moheshur Sing B
v. The Bengal Govemment3 deserve to be recapitulated. The
Privy Council stated:
• ......... We are not aware of any law or Regulation
prevailing in India which renders it imperative upon the
suitor to appeal from every interlocutory Order by which he C
may conceive himself aggrieved, under the penalty, if he
does not so do, of forfeiting for ever the benefit of the
consideration of the appellate Court. No authority or
precedent has been cited in support of such a proposition,
and we cannot conceive that anything would be more D
detrimental to the expeditious administration of Justice than
the establishment of a rule which would impose upon the
suitor the necessity of so appealing; whereby on the one
hand he might be harassed with endless expense and
delay, and on the other inflict upon his opponent similar E
calamities. We believe there have been very many cases
before this Tribunal in which their Lordships have deemed
it to be their duty to correct erroneous interlocutory Orders,
though not brought under their consideration until the whole
cause had been decided, and brought hither by appeal for F
adjudication."
27. It is appropriate that some of the provisions of the
Code of Civil Procedure, 1908 (for short 'Code') are noticed
for consideration of the question raised before us. Sections 97,
104 and 105 of the Code read as under : G
"97. Appeal from final decree where no appeal from
preliminary decree. - Where any party aggrieved by a
preliminary decree passed after the commencement of this
Code does not appeal from such decree, he shall be
3. (1859) 7 Moore's Indian Appeals 283. H
962 SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R
A precluded from disputing its correctness in any appeal
which may be preferred from the final decree.
104. Orders from which appeal lies. - (1) An appeal shall
lie from the following orders, and save as otherwise
expressly provided in the body of this Code or by any law
B for the time being in force, from no other orders:-
(ff) an order under section 35A;
(ffa) an order under section 91 or se~tion 92 refusing leave
to institute a suit of the nature referred to in section 91 or
c section 92, as the case may be;
(g) an order under section 95;
(h) an order under any of the provisions of this Code
imposing a fine or directing the arrest or detention in the
civil prison of any person except where such arrest or
D detention is in execution of a decree;
(i) any order made under rules from which an appeal is
expressly allowed by rules;
Provided that no appeal shall lie against any order
E specified in clause (ff) save on the ground that no order,
or an order for the payment of a less amount, ought to
have been made.
(2) No appeal shall lie from any order passed in appeal
under this section.
F 105. Other orders. - (1) Save as otherwise expressly
provided, no appeat shall lie from any order made by a
Court in the exercise of its original or appellate jurisdiction;
but where a decree is appealed from, any error, defect or
irregularity in any order, affecting the decisi0n of the case,
G may be set forth as a ground of objection in the
memorandum of appeal.
(2) Notwithstanding anything contained in sub-section (1 ),
where any party aggrieved by an order of remand from
which an appeal lies does not appeal therefrom, he shall
H thereafter be precluded from disputing its correctness."
HARJIT SINGH UPPAL v. ANUP BANSAL 963
[R.M. LODHA, J.]
28. The Calcutta High Court in Nanibala Dasi and Another A
v. /chhamoyee Dasi and others4 was concerned with a
question as to whether the challenge to preliminary decree in
a suit for partition could be made in a case where the final
decree in the suit had already been made by the Subordinate
Judge and no appeal against the final decree was then or has B
at any time been filed. The High Court referred to some of its
earlier decisions, namely, Baikuntal Nath Dey v. Nawab
Sa/imulla Bahadur5, Mackenzie v. Narsingh Sahai6 ,
Khirodamoyi Dasi v. Adhar Chandra Ghose7, Sadhu Charan
Dutta v. Haranath Dutta 6, Kuloda v. Ramanand9 and held that
the right of appeal from interlocutory order ceases after disposal C
of the suit and that rule is equally applicable to suits in which
there is first a preliminary decree and ultimately a final decree.
29. On the other hand, in Syed Ishak Syed Farid and
another v. Kunjbihari Singh Sirdhujasingh Kshatriya 10, the
0
Division Bench of Nagpur High Court held as under :
"The contention on the other side is that the
Legislature has conferred a right of appeal against, an
order refusing to extend time, and that an aggrieved party
must be afforded an opportunity of exercising the right so E
conferred, especially as there is danger of it being held
hereafter that as the orders in question were appealable,
matters decided in them will be final in the absence of an
appeal, and that they cannot be re-agitated hereafter in an
appeal against the final decree. The learned Counsel
urging this contention relied on the analogies of preliminary F
decrees and of orders of remand against a decision of a
4. AIR 1925 Cal 218.
5. (1907) 6 C.L.J. 647. G
6. (1909) 36 Cal 762.
7. (1912) 18 C.L.J. 321.
8. (1914) 20 C.W.N. 231.
9. A.l.R. 1921 Cal. 109.
10. A.LR. 1940 Nagpur 104. H
964 SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A trial Court on a preliminary point. S. 105(1), Civil P.C., is
in these terms:
A right of appeal is a valuable right, and we do not think
that the Legislature after conferring it in such express terms
B
in Section 104 would take it away by implication in a large
class of cases in the next Section. An enabling Section
which confers additional rights in certain cases cannot, we
think, be read as taking away rights which have already
been expressly conferred, especially when they are such
c valuable and cherished rights as those of appeal. We also
feel that if a right of appeal is once conferred, then in the
absence of anything curtailing it, full opportunity must be
afforded to an aggrieved party to exercise it. If he does
exercise it and succeed, then any subsequent
D proceedings which militate against any rights he obtains
in the appeal fall to the ground.
when the law gives a person two remedies he is entitled
to avail himself of either of them unless they are
E inconsistent."
[Emphasis supplied by us]
30. The order passed by the Rent Controller determining
the provisional rent in an eviction petition based on the ground
F of default in a situation where the tenant fails to comply with that
order may be a foundational order for an order of eviction that
follows but nevertheless such order is an interlocutory order as
that order does not determine the principal matter finally; it is
only the order on subordinate matter with which it deals.
G 31. Section 15(1)(b) of 1949 Rent Act provides that a
person aggrieved by an order passed by the Rent Controller
may prefer appeal to the Appellate Authority within the time
prescribed.therein; it does not say that if any aggrieved person
by an interlocutory order passed by the Rent Controller from
H which an appeal lies does not appeal therefrom, he shall
HARJIT SINGH UPPAL v. ANUP BANSAL 965
[R.M. LODHA, J.]
thereafter be precluded from disputing its correctness. There A
is no provision in Section 15(1)(b), a provision like Section 105
(2) and Section 97 of the Code.
32. We find no impediment for an aggrieved person, on
reading Section 15(1)(b) of the 1949 Rent Act, that an
interlocutory order which had not been appealed though an B
appeal lay, could not be challenged in an appeal from the final
order. In our opinion, Section 15(1)(b) does not make it
imperative upon the person aggrieved to appeal from an
interlocutory order and, if he does not do so, his right gets
forfeited when he challenges the final order. c
33. It is true that an order of eviction follows as a matter
of course if there is non-compliance of the order determining
the provisional rent but when tenant challenges the order of
eviction and therein also challenges the order of fixation of
provisional rent - the order of eviction, in its nature, being D
dependant on the correctness of the order fixing the provisional
rent and there being no indication to the contrary in Section
15(1)(b)- it must be open to the Appellate Authority to go into
correctness of such provisional order when put in issue.
34. In view of the above legal position, we shall now advert E
to the facts of the present case. The tenant at the first available
opportunity i.e., in his written statement filed on April 24, 2009
averred that he has been paying the rent to the landlord by
cheques and from April 1, 2007, he has paid rent of Rs.
37,00,950/- to the landlord. As a matter of fact, the tenant by F
his counter claim prayed for refund of the excess payment
made to the landlord. Then he filed his affidavit dated June 6,
2009 setting out the details of the payments made towards rent
from April, 2007.
·· 35. The landlord relied upon his ledger account to show G
that the tenant was in arrears of rent. According to the landlord,
he received the payment as under:-
H
966 ·SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R.
A Date Debit Credit
9.4.2007 173643.75p -
26.4.2007 - 163250
26.4.2007 - 10000
B
9.5.2007 173643.75p -
9.6.2007 173643.75p -
9.7.2007 173643.75p -
18.7.2007 - 163250
18.7.2007 - 10000
c 9.8.2007 182325.94p -
9.9.2007 182325.94p -
27.9.2007 - 10000
28.9.2007 - 163250
D 9.10.2007 182325.94p -
27.10.2007 - 10000
8.11.2007 - 171900
8.11.2007 - 10000
9.11.2007 182325.94 -
E
1.12.2007 - 163250
3.12.2007 - 10000
9.12.2007 182325.94 -
10.12.2007 - 10000
F 11.12.2007 - 171900
9.1.2008 182325.94p -
9.2.2008 182325.94p -
9.3.2008 182325.94p -
G 9.3.2008 182325.94p -
1.4.2008 - Opening
Balance
450000
(security amt.)
H 15.4.2008 - 528400
HARJIT SINGH UPPAL v. ANUP BANSAL 967
[R.M. LODHA, J.]
15.4.2008 450000 (amt. A
given through
Cheque) -
9.5.2008 182325.94p -
13.5.2008 - 181900
9.6.2008 182325.94p - B
12.6.2008 202900
(amount given
through Cheque) -
12.6.2008 350000 (amo-
uni given through
c
Cheque -
12.6.2008 450000 (am-
ount given
through
Cheque) - D
9.7.2008 182325.94p -
9.8.2008 150000 -
9.9.2008 150000 -
9.10.2008 150000 E
21.8.2008 - 40000
22.8.2008 - 60000
9.11.2008 150000 -
Total 49,35,386-28 24,99,000/-
F
36. On the other hand, the tenant in his affidavit dated June
6, 2009 gave the details of the payments made to the landlord
towards rent from the month of April, 2007 as under :
Cheque No. "Dated for Rs. G
i) 011862 30.3.2007 1,63,250.00
ii) 011861 30.3.2007 10,000.00
iii) 011863 25.4.2007 1,63,250.00
iv) 011864 25.4.2007 10,000.00
H
968 SUPREME COURT REPORTS [2011) 15 (ADDL.) S.C.R.
A v) 011868 16.7.2007 1,63,250.00
vi) 011867 16.7.2007 10,000.00
vii) 011885 24.9.2007 10,000.00
viii) 011886 24.9.2007 1,63,250.00
B ix) 011887 25.10.2007 1,71,900.00
x) 011888 25.10.2007 10,000.00
xi) 011889 6.11.2007 1, 71,900.00
xii) 011890 6.11.2007 10,000.00
xiii) 011892 30.11.2007 1,63,250.00
c xiv) 011893 3.11.2007 10;000.00
xv) 011894 5.12.2007 10,000.00
xvi) 011895 5.12.2007 1,71,900.00
xvii) 4789 11.4.2008 5,28,400.00
D xviii) 4790 18.4.2008 5,45,700.00
xix) 4791 10.5.2008 1,81,900.00
xx) 4794 12.6.2008 2,75,000.00
xxi) 4795 12.6.2008 3,25,000.00
xxii) 4796 13.6.2008 4,00,000.00
E
xxiii) 4797 13.6.2008 1,80,000.00
xxiv) 116150 20.8.2008 60,000.00
xxv) 116151 20.8.2008 40,000.00
xxvi) 116152 20.8.2008 50,000.00
F Total Rs. 37,00,950.00
37. The Rent Controller, apparently, did not consider the
statement given by the tenant at all and relied upon the ledger
account submitted by the landlord and in his order dated June
G 11, 2009 held that an amount of Rs. 27 ,84,875.04 was due and
payable by the tenant towards the arrears of rent. Since the Rent
Controller failed to even consider the statement of payment
· tendered by the tenant, the tenant made an application for recall
of the order dated June 11, 2009. The Rent Controller
H dismissed the application for recall and two other applications
HARJIT SINGH UPPAL v. ANUP BANSAL 969
[R.M. LODHA, J.]
made by the tenant by a common order and also passed an A
order for eviction of the tenant on April 7, 2010 as the tenant
failed to comply with the order dated June 11, 2009
determining the provisional rent.
38. The tenant challenged the order dated April 7, 2010
and also the order dated June 11, 2009 in appeal. The Appellate B
Authority considered the material that was available before the
Rent Controller for determination of rent, particularly, the two
statements, one filed by the landlord and the other by the tenant,
and on comparison thereof found that the entire payments
made by the tenant have not been reflected in the ledger c
account submitted by the landlord. This is what the Appellate
Authority observed :
"Thus, it is apparent that the entire payments made by the
respondent/tenant are not reflected in the account books
of the respondent/landlord. The appellant/tenant has also D
raised a plea that he had made the payment of Rs.
2,75,000/- to the respondent, vide cheque No. 4794 dated
12.6.2008, Rs. 3,25,000/- vide cheque No. 4795 dated
12.6.2008, Rs. 4,00,000/- vide cheque No. 4796 dated
12.6.2008 and Rs. 1,80,000/- vide cheque No. 4797 dated E
12.6.2008. The said cheques were the bearer cheques
and were allegedly got encashed by the Manager of the
respondent. However, this Court need not enter into the
controversy as to if the payment of the bearer cheques,
was received by the respondent/landlord or not as it would
be for the Ld. Rent Controller to consider this question.
F
However, the assessment order dated 11.6.2009 passed
by the Ld. Rent Controller is patently illegal and erroneous.
From the perusal of the said order, it is made out that Ld.
Rent Controller did not apply his mind and accepted the
figures mentioned by the respondent/landlord in the G
rejoinder in the mechanical manner. The Ld. Rent
Controller has not mentioned anything that as to how the
amount of about Rs. 14,52,900/- paid by the respondent/
landlord to the tenant was being treated as arrears of rent.
The Ld. counsel for the respondent could be claimed as H
970 SUPREME COURT REPORTS (2011) 15 (ADDL.) S.C.R.
A arrears of rent [sic]. He tried to wriggle out of the situation
by submitting that the tenant had agreed to repay the said
amount with the rent. However, even on this the said
amount could not be treated as arrears of rent. Moreover,
the amount of Rs. 5,45,700/- which was received by the
B respondent/landlord from the tenant even as per the
statement of account pertaining to the bank account of the
respondent was not adjusted. The Ld. Rent Controller did
not consider these aspects of the case at all."
39. The Appellate Authority held that the order dated June
c 11, 2009 was patently illegal; the tenant was called upon to
tender much more amount than was actually due as arrears of
rent and, accordingly, by its order dated June 10, 2010 set
aside the orders dated April 7, 2010 and June 11, 2009 and
remanded the matter to the Rent Controller with a direction to
pass fresh order of provisional assessment of arrears of rent,
0
interest and costs of the proceedings as contemplated by
Section 13(2)(i) proviso of the 1949 Rent Act.
40. The High Court, however, held that as tenant did not
avail of his remedy to challenge the order fixing provisional rent
E during the period between the date of the order and date fixed
for payment, the Appellate Authority could not have gone into
the merits of such determination and, accordingly, set aside the
order of the Appellate Authority. In our view, the High Court fell
into grave error in what it held. The legal position, in our opinion,
is this: Where a tenant does not challenge the order of the
F fixation of provisional rent passed under Section 13(2)(i) proviso
in appeal under Section 15(1)(b) and also fails to comply with
that order, the order of eviction must follow as per the provisions
contained in the 1949 Rent Act but when the tenant challenges
the order of eviction in appeal and therein also challenges the
G order determining the provisional rent, it is not open to the
Appellate Authority to refuse to consider the legality and validity
of the order determining the provisional rent on the ground that
the correctness of such order cannot be examined as no appeal
was filed from that order though an appeal lay therefrom.
H
HARJIT SINGH UPPAL v. ANUP BANSAL 971
[R.M. LODHA. J.]
41. On the facts of the present case, the Appellate Authority A
. did not commit any error in calling upon the Rent Controller to
determine the arrears of rent, interest and costs afresh as the
tenant's statement of payments towards rent from April, 2007
was not at all referred to and considered by the Rent Controller.
If the order of the High Court is allowed to stand, it would B
occasion in manifest injustice and result in miscarriage of
justice inasmuch as the tenant would be thrown out of the leased
premises although he may not have been in arrears of rent. In
the circumstances, re-determination of arrears of rent, interest
and costs by the Rent Controller, as dlrected by the Appellate
Authority, would subserve the ends of justice. If on re- C
determination, the tenant is found in arrears of rent and does
not deposit/pay the amount as determined by the Rent
Controller in time, as may be directed, obviously he would suffer
the order of eviction.
42. In the result, the appeal is allowed. The order dated D
September 23, 2010 passed by the High Court is set aside
and the order dated June 10, 2010 passed by the Appellate
Court, S.A.S Nagar (Mohali) is restored. The parties shall bear
their own costs.
E
N.J. Appeal allowed.
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