Order XLI Rule 5 CPC - The Legal Chamber

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. 2,43,6...

The Supreme Court upheld the High Court's grant of unconditional stay on a money decree's execution under Order XLI Rule 5, CPC, ruling that deposit of the decretal amount is not mandatory. An unconditional stay can be granted in exceptional cases where the decree is egregiously perverse, patently illegal, or facially untenable, upon establishing "sufficient cause." Facts Of The Case: The petitioners, Lifestyle Equities C.V. & Anr., proprietors of the "Beverly Hills Polo Club" (BHPC) trademark, filed a suit for infringement and damages against Amazon Technologies Inc. and others before the Delhi High Court. The suit claimed damages of approximately Rs. 2 crore. Amazon was proceeded against ex parte in April 2022. The learned Single Judge, after an ex parte trial, decreed the suit...

Tag: Order XLI Rule 5 CPC

Tenant Evicted for Wilful Default: Supreme Court Upholds Rent Arrears Ruling

Supreme Court Explains “Sufficient Cause”: Key Tests for Granting Stay on a Money Decree