Arrears of Rent - The Legal Chamber

Law is a Force for Justice, Not Absurdity: Supreme Court on Rent Arrears Eviction Case

9Feb

By The Legal ChamberNo Comments

Supreme Court

Law is a Force for Justice, Not Absurdity: Supreme Court on Rent Arrears Eviction Case

The Supreme Court held that in appeals challenging eviction orders under Section 12(3) of the Kerala Buildings Act, the Appellate Authority is not required to mandatorily re-initiate the entire Section 12 procedure. The deposit of admitted arrears, as determined by the Rent Controller, is a precondition to contest the appeal, unless supervening events warrant a fresh application. Facts Of The Case: The appellants are landlords who filed eviction petitions against the respondent-tenant for two shops in Kochi, alleging non-payment of rent since early 2020. The Rent Controller, relying on a prior money decree for arrears, passed orders under Section 12(1) of the Kerala Buildings Act, directing the tenant to pay substantial outstanding and future rents. Upon the tenant's failure to comply, e...

Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage

In a suit for eviction under a lapsed license agreement, the Supreme Court ruled that the trial court cannot grant liquidated damages as an interim measure under Order XXXIX Rules 1 & 2 CPC. However, it upheld the application of Order XV-A CPC (Bombay Amendment), directing the licensee to pay ascertained arrears and ongoing license fees with annual increments, failing which the defense can be struck off. Facts Of The Case: The case originated from a Leave and License Agreement executed on 08.10.2013 between the appellant licensors and the respondent licensee for 36 months, from 01.11.2013 to 31.10.2016, with a 7% annual increase in license fee. Clause 19 stipulated liquidated damages of Rs. 10,000 per day if the licensee failed to vacate upon expiry. After the license period lapsed, ...

Supreme Court Key Ruling: Tenant’s Defence Struck Out for Missing 30-Day Deposit Deadline

This Supreme Court held that the time limit under Section 7(1) and (2) of the WBPT Act for depositing admitted rent and filing an application is mandatory and cannot be extended by Section 5 of the Limitation Act. The proviso to Section 7(2) only permits an extension for paying the amount determined by the court post-adjudication, not for the initial statutory deposit and application. Facts Of The Case: The appellant, Seventh Day Adventist Senior Secondary School, is a tenant in a premises in Kolkata for which the admitted monthly rent was Rs. 1090. The respondents, the landlords, filed an ejectment suit on 11.06.2019 on grounds including arrears of rent. The summons for this suit was served upon the appellant-tenant on 29.09.2022. The statutory period of 30 days for compliance und...