Tenant's Failure to Deposit Interim Standard Rent on First Hearing Leads to Loss of Protection Under Bombay Rent Act
In a significant ruling, the Gujarat High Court has upheld the eviction of a tenant who failed to comply with the provisions of the Bombay Rents, Hotel and Lodging House Rates Control Act. The court ruled that the tenant, Vaikunthrai Ramnikrai Vasavda, represented by his heirs, lost protection under Section 12(3)(b) of the Act due to non-deposit of arrears of standard rent before the first date of hearing. The judgment, delivered by Justice J.C. Doshi, dismissed the tenant's revision application, reinforcing the landlord's right to possession due to the tenant's default.
The original landlord had issued a statutory notice in 1995 demanding arrears from May 1989, which the tenant contested, claiming the rent was exorbitant and not the standard rent. Despite a court order in 1996 to pay an interim standard rent of Rs. 94 per month, the tenant failed to deposit the requisite amount by the first hearing date in 1998, falling short by Rs. 564 according to his own calculations, and Rs. 5734 as per the landlord's claim.
The High Court emphasized that the tenant's failure to pay or tender the interim standard rent on the first hearing date indicated a lack of readiness and willingness to comply with the Rent Act's provisions, thus nullifying his protection against eviction. The court referenced previous Supreme Court judgments asserting that Section 12(3)(b) does not allow judicial discretion to relieve tenants from eviction if statutory conditions are unmet.
Bottom Line:
Tenant cannot claim protection under Section 12(3)(b) of the Bombay Rents, Hotel and Lodging House Rates Control Act if they fail to deposit the entire arrears of standard rent, including interim standard rent, before the first date of hearing.
Statutory provision(s): Bombay Rents, Hotel and Lodging House Rates Control Act Sections 12(3)(b), 11, 12(2), 12(3)(a), 29(2); Code of Civil Procedure, 1908 Order 41, Rule 22.
