Court mandates continued deposit of 50% of monthly rent during appeal under U.P. Regulation of Urban Premises Tenancy Act, 2021
In a significant ruling, the Allahabad High Court, presided over by Dr. Yogendra Kumar Srivastava, J., reinforced the statutory requirement under the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, mandating tenants to continue depositing fifty percent of the monthly rent during the pendency of an appeal. The judgment came in the case of Masers Rajasthan Motors versus the State of Uttar Pradesh and others, wherein the petitioner challenged an appellate court's order necessitating a continued deposit of rent.
The controversy centered around the proviso to Section 35(1) of the Act, which stipulates that no appeal shall be entertained unless fifty percent of the entire payable amount under the impugned order is deposited. The petitioner contended that this requirement was satisfied with a one-time deposit at the appeal's initiation. However, the respondents argued that the obligation extends to recurring liabilities, such as monthly rent, accruing during the appeal process.
The Court clarified that the statutory mandate is not limited to a singular pre-deposit at the appeal's commencement but extends to ongoing accruals. It was observed that the nature of the liability under the impugned order, when recurring, necessitates periodic compliance with the deposit requirement to maintain the appeal's validity.
The Court's decision aligns with its previous judgment in Hemant Kumar Garg v. Pulkit Garg, reiterating that the statutory scheme under the Act aims to balance the appellate rights with the interests of the party in whose favor the order operates. The judgment ensures that tenants seeking appellate relief continue to respect their financial obligations under the impugned order during the appellate proceedings.
The petition filed by Masers Rajasthan Motors was dismissed, upholding the appellate court's directive and emphasizing that compliance with ongoing deposit requirements is intrinsic to the appeal process under the tenancy regulation framework.
Bottom Line :
U.P. Regulation of Urban Premises Tenancy Act, 2021 - Proviso to Section 35(1) - Pre-deposit of fifty percent of entire payable amount is a mandatory condition for maintainability of appeal - Where impugned order creates recurring liability such as monthly rent, statutory requirement is not exhausted by one-time deposit at time of filing appeal and continues during pendency of appeal.
Statutory provision(s): Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021 Section 35(1) proviso, Constitution of India, 1950 Article 227
Masers Rajasthan Motors v. State of U.P., (All) : Law Finder Doc id # 2984233
