The Supreme Court upheld the eviction order, ruling that the lessee’s failure to pay the statutorily fixed fair rent—despite not seeking a stay of the fair rent order—constituted wilful default under Section 10(2)(i) of the Tamil Nadu Rent Control Act, 1960. The Court affirmed that pending appeals do not automatically suspend the tenant’s obligation to pay determined rent.
Facts Of The Case:
The dispute arose from a lease agreement dated 11.10.1999, whereby M/s. Krishna Mills Pvt. Ltd. (landlord) leased portions of a godown in Coimbatore to K. Subramanian (tenant) for a total monthly rent of Rs. 48,000. The tenant, however, contended the rent was only Rs. 33,000. In 2004, the landlord applied for fixation of fair rent. The Rent Controller, on 10.01.2007, fixed the fair rent at Rs. 2,43,600 per month retrospectively from 01.02.2005. The tenant challenged this order but did not seek a stay of its operation. Despite the fair rent attaining finality through appellate and revisional forums—being marginally reduced to Rs. 2,37,500 by the High Court in 2011—the tenant continued paying only the original contested amount, accumulating substantial arrears. The landlord filed an eviction petition in 2007 on grounds of wilful default. The tenant cleared the arrears only in January 2013. The Rent Controller initially dismissed the eviction petition in 2019, but the Appellate Authority and later the High Court reversed this, ordering eviction. The tenant’s legal heirs appealed to the Supreme Court, arguing the default was not wilful due to bona fide disputes and pending proceedings.
Procedural History:
The procedural history commenced with the landlord’s application for fixation of fair rent before the Rent Controller, Coimbatore in 2004, leading to an order dated 10.01.2007. Following this, the landlord filed an eviction petition (RCOP No. 134 of 2007) on grounds of wilful default. The Rent Controller dismissed this petition on 06.02.2019. The landlord’s appeal succeeded, with the Principal Subordinate Judge, Coimbatore reversing the dismissal and ordering eviction on 25.02.2020. The tenant’s heirs then filed a civil revision petition before the High Court of Madras, which was dismissed, affirming the eviction order on 22.06.2021. The final appeal by the tenant’s heirs to the Supreme Court culminated in the dismissal and upholding of the eviction order on 11.11.2025.
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Court Observation:
The Supreme Court observed that a tenant’s obligation to pay the statutorily determined fair rent arises immediately upon the Rent Controller’s order, and mere filing of an appeal or revision does not operate as an automatic stay of this liability. The Court held that the lessee’s conduct—failing to seek a stay of the fair rent order, continuing to pay only the disputed original rent for years, and clearing the substantial arrears only after protracted litigation—constituted a deliberate and conscious neglect, satisfying the attributes of “wilful default” under the rent control law. It further clarified that the principle of finality of a judicial decision does not protect a tenant who, despite availing appellate remedies, does not seek a stay and thereby unjustly deprives the landlord of the benefit of the operative order.
Final Decision & Judgement:
The Supreme Court dismissed the appeal, upholding the eviction order. It conclusively held that the lessee and his legal heirs were guilty of wilful default in payment of the court-determined fair rent. The Court granted the appellants a final period of six months to vacate the premises, subject to filing the usual undertakings, failing which the landlord would be at liberty to execute the decree for possession. Each party was directed to bear its own costs.
Case Details:
Case Title: K. Subramaniam (Died) Through LRS K.S. Balakrishnan & Ors. Versus M/s Krishna Mills Pvt. Ltd. Citation: 2025 INSC 1309 Appeal Number: Civil Appeal No. 2561 of 2025 Date of Judgement: November 11, 2025 Judge/Justice Name: Justice Dipankar Datta
Download The Judgement Here