Holding

The court has jurisdiction to extend time for payment or deposit of monthly rent after the filing of an eviction suit, and such extension enables the tenant to claim protection under section 12(3).

Summary

The landlord sought eviction of the tenant under the Madhya Pradesh Accommodation Control Act, 1961, for failure to pay rent arrears. The trial court allowed the tenant to claim protection under section 12(3) after he deposited the arrears, and dismissed the eviction suit. While the appeal was pending, the tenant applied for condonation of delay in depositing monthly rent that became due after the suit was filed, and made several delayed payments which were accepted by the court. The landlord argued that the court had no power to extend the time for such payments and was entitled to an eviction decree. The Supreme Court held that the court does have jurisdiction to extend time for payment or deposit of monthly rent under section 13(1) and the discretion in section 13(6), and that such extension, if exercised, entitles the tenant to the protection of section 12(3). Consequently, the appeal was allowed and the eviction suit dismissed.

Issues considered

Whether the court has the power to extend time for payment or deposit of monthly rent falling due after the filing of an eviction suit under section 13(1) and the discretion under section 13(6) of the Madhya Pradesh Accommodation Control Act, 1961.
Whether failure to pay the monthly rent by the 15th of each month automatically entitles the landlord to a decree of eviction.
Whether the landlord’s right to claim eviction is waived or abandoned by the tenant’s delayed payments.

Legislation cited

Madhya Pradesh Accommodation Control Act, 1961s. 12, s. 13(1), s. 13(5), s. 13(6)

Subjects

evictionrent arrearscondonation of delayextension of timetenant protectionMadhya Pradesh Accommodation Control ActSection 12Section 13

Judgment

334

A SHYAMCHARAN SHARMA
v.
t
DHARAMDAS·
'
December 4, 1979
B [V. R. KRISHNA IYER, R· S. PATHAK AND 0. CHINNAPPA RrnDY, JJ.}
•
Madhya Prade~h Accommodation1 Control Act, 1961 (41 of 1961), 'Ss. 12,
13(1) and 13(6)-SuiJI for el·iction of, tenant for failure to pay arrears \ o f ( ! \ .
rent-1.fonthly rent falling due after' filing of suit-Default in pay1ne11t of- i
1
Court ·whether can extend time for payment anti condbne delay-Protectio1r· -

c ag.Unst eviction-JVhether tenant can claim. ·

The· respondent-landlord sought eviction of the appellant-tenar::.! front the
suit premises for failure to pay arrears of rent, despite service of noti..;e of
demand. The trial court found that the tenant was in arrears oZ payment of
ren4 but the tenant having dijiosited the arrears of reitt Withiri the time
allov.'ed by the court on bis application the tenant was entitled· to avail the
D protection of sectioa. 12(3) of the 1-ladhya Pradesh Accommodation Controt
Act, 1961, and dismissed the suit for eviction.

The landlord preferred an appeal and while the same .\Vas pending, the
tenant filed an npplication under section 13(1) of the Act for condonation of
<lclay in depositing the rent, month by month, \Vhich bad become payable after
the filing of the suit. On several occasions, when the suit and· the appeal were
E pending before the trial court and the appellate court respectiVely, the tenant
had deposited the monthly rent a day or two or three beyond· the prescribed
date, and the same had been received by the court and drinvn· out by the land-
lord, '\vithout any protest. The landlord, taking advantage of", the filing ·of ,
·the t_enanfs application for condonation of delay, co~tended that the court ~- ..-....
had no po'ver to extend the time for deposit of the monthly rent and that he '4'~
was entitled to a decree for eviction consequent on the non-compliance ,\·ith
F the 'provisions of section 13(1) of the Act. The appellate court net;'ltived this-
contention and dismissed the appeal. In the second appeal preferred· by the
landlord, the ·High Court held that the Court had. no power to extend· time
and decreed the suit for eviction; ,

In the tenant's appeal to this Court on the question whether the Court bad
the pov;rer to condone the delay in depositing the monthly rent falling· due after
G the :filing of the suit for e'ictiori. .;

HELD :1. The court had the jurisdiction. to extend time for deposit or \ "-
payment of monthly rent falling due after tbe filing of the suit. [339 GJ --
2. In order to entitle a, tenant to claim the profecti')!l of secti::Jn 12(3), the
tenant. had to make payment or deposit as requirecf by section 13'. The arrearg
of rent should be paid or deposited witliin one month_ of the service of the
H \\Tit of summons on the tenant or 'vithin such further- tiine· aS may be allowed
by ·the C0Uf'4 and should· further deposit or pay everr month by the 15th, a.
sum equivalent to the rent. [338 A·BJ
'
SHYAM CHARAN v. DHARAMDAS (Chimwppa Reddy, !.) 335

3. Failure to pay or deposit a sum equivalent to the rent by the 15th of A
qvery month, subsequent to the filing of the suit for eviction \Vill not entitle·
), the landlord, straightaway, to a decree for eviction. The consequences of the
"' Wa>osit or payn1ent and non-payment or non-dep~it are prescribed by sub-
sections (5) and (6) of section 13. [338 BJ

4. A discretion is vested in the court tmder section 13(6) to order the
striking out of the defence against eviction. [338 DJ B
5. If the court has the discretion not to strike out the defence of a tenant
committing default in paymoot or deposit of rent as required by section 13(1),
, the court surely has the further discretion to condone the default and extend
the time for payment or deposit. Such a discretion is a necessary implication
of the discretion not to strike out the defence. Any other construction may
lead, to a perversion of the object of the ·Act.- namely, 'the adequate protection c
of the tenant' [338 F-G]
6. Section 12(3) entitles a tenant to claim protection against eviction on the
ground specified in section 12(1)(a) if he: makes payment or deposit as required
by section 13. As the court has under section 13, the power to extend the time
for payment or deposit, payment or deposit, within the extended time will
entitle the tenant to claim the protection of section 12(3). [338 HJ D
7. Express provision for extension of time for deposit or payment or rent
falling due after the filing of the suit was not made in section 13(1) as the
tonsequence of non-payment was dealt with by a separate sub-section, section
13(6). The discretion given to the court under section 13(6) must imply a
discretion to condone the delay and extend the time in making deposit or pay-
ment under section 13(1). [339A, E]
E
hfdish Kapoor v. New Education Society (1967) Jabaipur L.J. 859
dioapproved.
B. C. Kame v. Nem Chand Jain, A.I.R. 1970 S.C. 981, referred to.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 854 of 1977.
F
Appeai by Special Leave from the Judgment and Order dated
2-8-1976 Gf the Madhya Pradesh High Court in S.A. No. 440/7!.
S. S. Khanduja and La/it Kumar Gupta for the Appellant.
T. P. Nalk and S. K. Gambhir for the Respondent.
The Judgment of the Court was delivered by G
CmNNAPPA REDDY, J.-The respondent-landlord sought eviction
of the appellant-tenant from the suit premises on two grounds : (i)
failure to pay arrears of rent of Rs. 158.25 despite service of notice of
m:.and and (ii) bonafide requirement of premises for landlord's per-
so.oal occupation. The second ground was rejected by all the sub-
ordinate courts and we are no longer concerned V>ith that ground. In •
reg11rd to the first ground, the trial court found that the tenant was
336 SUPREME COURT REPORTS [ 19 80) 2 S.C.lt.

A in arrears of payment of rent but that the tenant was entitled to the
protection of s. 12(3) of t11e MadhYa Pradesh Accommodation Cen-
tro! Act, 1961, as the tenant had deposited the arrears' of rent Within
the time allowed by the Court on his application. When the apPeal
preferred by the landlord was pending before the Additional District
Judge, Satna, the tenant filed an application for condonation of delay
in depositing the rent, month by month, which had become payable •
after the filing of the suit, as stipulated by s. 13 (1) of the Act. It
appears that, on several occasions, when the suit and the appeal were~
pending before the trial court and the appellate court respectively, 1·
the tenant had deposited the monthly rent a day or two or three, be-
yond the prescribed date. The amount had been received by the court
c and drawn out by the landlord, apparently without any protest. Taking
advantage of the filing of the tenant's application for condonation of
delay, the landlord contended that the court had no power to extend
the time for deposit of the monthly rent and that he was entitled to a
decree for eviction consequent on the non-compliance with the provi-
sions of s. 13 ( 1) of the Madhya Pradesh . Accommodation Control
Act. The appellate court negatived the. landlord's contention and dis-
missed the appeal. The landlord preferred a Second Appeal to the
. High Court of Madhya Pradesh. The High Court, holding that the t
court had no power to extend time, decreed the suit for eviction. The
tenant, having obtained special leave, has appealed to this Court.
E
Shri Khanduja, learned counsel for the appellant, raised two. con-
tentions before us. The first contention was that the High Court was · 1 ..
wrong in holding that the Court had no power to condone the delay ~
in depositing the. monthly rent falling due after the filing of the suit
for eviction. The second contention was that, in the circumstances
F of the case, the respondent must be considered to have waived or
abandoned the right to insist on dis-entitling the tenant of the protec-
tion to which he was otherwise entitled. Shri Naik, learned counsel
for the respondent, contended to the contrary on both the questions.
The Madhya Pradesh Accommodation Control Act, 1961, was
G enacted, as recited in the statement of objects and reasons, "for the
purpose of controlling, letting of and rents of residential and · non- i..
residential accommodation and giving adequate protection to tenants
f
of such accommodation in areas where there is dearth of accommo-
dation". Section 12(1) of the Act provides that no suit shall be·lited
i11 any civil court against a tenant for his eviction from any accom.i!i<i-
H dation except on one or more of the grounds specified therein. Several
grounds are specified, such as, .failure to pay the arrears of rent lifter
the service of notice of demand, unlawful sub-letting of the whole >Or

1" '
_sHYAM CHARAN v. DHARAMDAS (Chinnappa Reddy,!.) 337

part of the accommodation, creation of a nuisance, bonafide require- /A
ment of the accommodation by the landlord for his own occupation,
causing of substantial damage to the accommodation etc. etc. The
' ground with which we are concerned is that mentioned in s. 12(1) (a)
and -it is : "that the tenant has neither paid nor tendered the whole of
the arrears of re11t legally reco.verable from him within two months of .
• the date on which a notice of demand for the arrears of rent has been 8
~erved on him by the landlord in the prescribed manner". Thus, where
~a tenant is in arrears of rent, a landlord is obliged, before instituting
,, a suit for eviction on that ground, to serve a notice of demand calling
upon the tenant to pay or tender the whole of the arrears of rent with-
in two months of the date of service of the notice. S. 12(3) provides c
that an order for the eviction of a tenant sl1all not be mnde on the
ground specified ins. 12(1)(a), if the tenant makes payment or de-
posit as required bys. 13. S. 13, sub-ss. (1), (5) and (6) which arc
relevant for the present purpose are as follows :

"13. (1) On a suit or proceeding being instituted by the D
landlord on any of the grounds referred to in s. 12, the
tenant shall, within one month of the service of the writ of
summons on him or within such further time as the Court
may, on an application made to it, allow in this behalf,
·deposit in the Conrt or pay to t11e landlord an amount calcu-
lated at the rate of rent at which it was paid, for the period E
for which the teqant may have made default including the
period susequent thereto up to the end of the month previous
to that in which the deposit or payment is made and shall
thereafter continue to deposit or pay, month by month, by
the 15th of each succeeding month a sum equivalent to the
rent at that rate. F

xx xx xx xx
' ( 5) If a tenant makes deposit or payment as required
by sub-section (1) or sub-section (2), no decree or order
shall be made by the Court for the recovery of possession G
,! of the accommodation on the ground of default in the pay-
ment of rent by the tenant, but the Court may allow such
cost as it may deem fit to the landlord.
(6) If a tenant fails to deposit or pay_ any amount as
required by this section, the Court may order the defence H
again~! eviction to be struck out and shall proceed with the
. hearing of the suit." "1:
338 SUPREME COURT REPORTS [1980] 2 S.C.R.

A It is true that in order to entitle a tenant to claim the protectioIT
of s. 12(3), the tenant has to make a payment or deposit as required
bys. 13, that is to say, the arrears of rent should be paid or deposited )I
within one month of the service of the writ of summons on the tenant
or within such further time as may be allowed by the court, and should

• further deposit or pay every month by the 15th, a sum equivalent to·
the rent. It does not, however, follow that failure to pay or deposit
a sum equivalent to the rent by the 15th of every' month, subsequent
•
to the filing of the suit for ~viction, will entitle the landlord, str~gh~t- .
away, to a decree for ev1ct10n. The consequences. of the depoSit
paym~nt and non-payment or noncdeposit are prescribed by sub-ss.
c (5) and (6) of s. 13. Since there is a statutory provision expressly
prescribing thei consequence of non-deposit or non-payment of the
rent, we must look to and be guided by that provision only to deter-
mine what shall follow. S. 13 (6) does not clothe the landlord with
an automatic right to a decree for eviction; nor does it visit the tenant
with the penalty of a decree for eviction being straightaway passed
D against him. S. 13 ( 6) vests, in the court, the discretion to order the
striking out of the defence against eviction. In other words, the Court,
having regard to all the circumstances of the case, may or may not
~trike out the defence. If s. 13 were to be construed as mandatory I
and not as vesting a discretion in the Court, it might resnlt in the
situation that a tenant who has deposited the arrears of rent within the
E . time stipulated by s. 13 ( 1) but who fails to deposit thereafter the
monthly rent on a single occasion for. a cause beyond his control may
have his defence struck out and be liable to ·summary eviction. We•~ - .
think that s. 13 quite clearly confers a discretion, on the court, to '4..
strike out or not to strike out the defence, if default is made in deposit
or payment of rent as required by s. 13 (1). If the court has the dis-
F
cretion .not to strike out the defence of a te6ant committing default in
payment or deposit as required by s. 13 (1), the court surely has the
further discretion to condone the default and extend the time for pay-
ment or deposit. Such a discretion is a necessary implication of the
discretion not to strike out the defence. Another construction may
G lead, in some cases, to a perversion of the object of the Act namely,
'the adequate protection of the tenant'. S. 12(3) entitles a tenant to <f·
claim protection against eviction on the ground specified in s. 12(1) t.
(a) if the tenant makes payment or deposit as required by s. 13. On
our construction of s. 13 that the Court has the power to extend the·
time for payment or deposit, it must follow that payment or deposit
H within the extended time will entitle the tenant to claim the protection
of s. 12(3). One of the arguments advanced before us was that there·
was no express· provision for extensioh of time for deposit or payment
SHYAM CHARAN v. DHARAMDAS (Chinnappa Ruddy, /.} 339•

of monthly rent snbsequent to the filing of the suit whereas there was
such express provision for payment or deposit of arrear& of rent that
II bad accrued before the filing of the suit. Obviously, express provision
for extension of time for deposit or payment of rent falling due after
the filing of the suit was not made in s. 13 (I) as the consequence of
non-payment was proposed to be dealt with by a separate sub-section.
namely s. 13(6). Express provision had to be made for extension of
time for deposit or payment of rent that bad accrued prier to the
filing of the suit, since that would ordinarily be at a very early stage
__ ~.of the suit when a written statement might not be filed and there would,
)II · therefore, be no question of striking out the defence and, so, there
would be no question of s. 13 (6) covering the situat[on.
c
In Jagdlsh Kapoor v. New Education Society('), a full bench of
the Madhya Pradesh High Court held that s. 13(6) of the Madhya
Pradesh Accommodation Control Act did not make it obligatory for
the court to strike out the defence but vested in the court a discretion
to strike out or not to strike _out the defence. Having so hefd, the full
bench stopped short of giving full effect to their conclusion by holding
that the Court could condone the default and refuse to strike out the
defence but it could not give the benefit of s. 12(3) or 13(5) to the
tenant. We do not see any justification for adopting this narrow con-
struction of ss. 12 and 13. In our view the discretion given to the
court under s. 13(6) must be held to imply_ a discretion to condone
the delay and extend the time in making deposit or payment under s. E
13(1). Jn B. C. Kame v. Nem Chand .Tai11('), a tenant had· committed
_ .:_l._ default both in payment of arrears as well as in payment of the monthly·
:.' rent which became payable after the filing of the suit. This Court took
the view that on an application made by the tenant time for deposit or
payment could be extended. Though the observations made by the
F
Court read as if they were made with reference to the default in pay-
ment of arrears, a reference to the facts of the case as set out in the
I• yory judgment shows that there was default both in payment of the
arrears of rent that had accrued before the filing of the suit and in pay-
ment of the monthly rent that fall due after the filing of tl're suit .
• We are accordingly of the opinion that the Court has the jurisdic-
. ! tion to extend time for deposit or payment of monthly rent falling due
.. af1.er the filing of the suit. In that view it is not necessaiy to express
our opinion on the question of waiver or abandonment. The appeal is
allowed with costs and the suit for eviction is dismissed.
N.V.K. Af'Pe-at allowed. II-
Or (1967) Jabalpur L.J. 859.
(2) A.I.R. 1970 S.C. 981.