Case: Dhan Singh Ramkrishna Chaudhri &amp; Ors Vs. Laxminarayan Ramkishan &amp; Anr

relieved against forfeiture for that year, and that the order granting the relief did not wipe out the default gives an indication to the contrary.28. Vithals case (supra) does not advance the appellants case. It does not lay down a principle in conflict with the ratio of Raja Rams case (supra). In Vithals case the rent was payable by the 20th March every year. The rent for the years 1951-52, 1952-53, 1953-54 and 1954-55 was paid by the tenant and accepted by the landlord though it was not paid on due dates. Thus, on the date on which the landlord filed the application under Section 29 of the Act for eviction of the tenant on the ground that the rent had not been paid for the aforesaid years by the due dates, no arrears of rent were outstanding against the tenant. Dismissing the landlords appeal which he had filed by special leave this Court speaking through Shelat J., construed S. 25 of the Act thus:"Sub-section (1) thus pre-supposes that there are arrears at the date of the application which the Mamlatdar can direct the tenant to pay and that on such arrears being paid the Mamlatdar has to order notwithstanding the termination of the tenancy by the landlord that such tenancy had not been terminated and no order of eviction can be passed against such tenant. Sub-section (2) on the other hand deals with a case where there is persistent default by the tenant for three years and provides that to such a case the provisions of sub-s. (1) would not apply. The Mamlatdar in such a case has not the power to order payment of arrears as he would do under sub-section. (1) and on payment of such arrears to direct as he would do under sub-sec. (1) that the tenancy shall be treated as not having been terminated sub-sec. (2) therefore also pre-supposes(i) that the tenant has made defaults for more than two years and (ii) that the tenant was in arrears at the date of the application which arrears in this case the Mamlatdar cannot order the tenant to pay up.Sub-sec. (2) is in contra-distinction of sub-section (1) that is to say whereas in the case of less than 3 defaults the Mamlatdar can call upon the tenant to pay the arrears and can on payment of such arrears direct that the tenancy was not terminated, he cannot do so under sub-section (2) where there are more than two defaults and direct that the tenancy had not been terminated. If this was not the correct construction of sub-section (2) and if the appellants construction were to be accepted it would lead to a very astonishing result, viz., that even where the tenant has paid up all the arrears and the landlord has accepted them, he would still have the right to evict the tenant, though his reason for terminating the tenancy and his cause of action for eviction have disappeared by his acceptance of the arrears due to him."(Emphasis added).29. It will be seen that in Vithals case this Court was dealing with an entirely different situation. No arrears were in existence or subsisting on the date of the landlords application, whereas in the present case, a sum to the tune of Rs. 1010/3/- being the total of short payments for the three years in question, was still outstanding against the tenant. In fact if the tenant offers and the landlord accepts the full amount of rent in arrears, the cause of action for ejectment on the ground of non-payment of rent disappears. The acceptance of rent may amount to waiver of the landlords right to evict. By no stretch of imagination the decision in Vithals case can be understood as laying down that if the amount of rent due for the tenant at the date of the landlords application for eviction does not exceed the total of two years rent, sub-section (2) of Section 25 cannot apply. "Arrears" mean money unpaid at the due time as rent behind (see Earl Jowtts Dictionary of English Law).30. Sub-section (2) of S. 25 lays down in the clearest peremptory terms that if the tenant fails to pay the rent for any three years within the period specified in S. 14, the authority concerned will be left with no discretion under sub-section (1) to allow the tenant to pay up the arrears and on such payment to direct that the tenancy had not been terminated. The words "the tenant has made defaults for more than two years" and "arrears" in the underlined portion of the above-quoted passage convey nothing more or different from what is explicit in the words "if he has failed for any three years to pay rent within the period specified in S. 14" occurring in sub-section (2) of S. 25. All that was intended to emphasise was that even if the tenant defaults in payment of rent for any three years, but the arrears relatable to these defaults are cleared as a result of the tender of full amount due by the tenant and its acceptance by the landlord, this sub-section (2) will not come into operation and the landlords application for eviction, when no arrears are outstanding would not be maintainable.31. It will bear repetition that "failure to pay rent for any three years" is not the same thing as failure to pay rent equivalent to more than two years rent. Even if the tenant fails to pay part of the rent due in any year within the period specified in Section 14, he defaults to pay rent for that year. Such partial defaults are also defaults within the contemplation of sub-section (2) of Section 25. Any other construction would lead to strange results, and even a persistently defaulting tenant would be able to stave off eviction by paying only a part of the rent due every year so that the unpaid arrears remain, in the aggregate, less than the total rent of two years.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]16. An analysis of the definition of Section 7 would show that the rent payable by a tenant (subject to the maximum rate fixed under Section 6) is (a) the rent agreed upon between such tenant and landlord or (b) in the absence of any agreement, the rent according to usage of the locality or (c) where there is dispute as regards the reasonableness of the rent payable according to such agreement or usage, the reasonable rent.17. The case before us fell under clause (a). The landlord alleged that the agreed rent was Rs. 850/-. Since the rent fixed under the Government Notification was less than the agreed rent, the landlord actually claimed an amount as rent calculated on the basis of the lower rate i.e. Rs. 685/5/- per annum. However, the tenant contended that the agreed rent was Rs. 500/- per annum. The Extra Aval Karkun reduced this point of controversy into an issue to this4. What was the rent fixed between the parties in respect of the suit lands.He answered this point, as "Rs. 685/5/-.The language of sub-section (2) is unambiguous, clear and unequivocal, It is not susceptible of two interpretations. There is therefore no scope - even with the aid of any rule of beneficent interpretation - for construing this sub-section in a manner contrary to its plain ordinary meaning. Moreover, the point is covered by the decision of this Court in Raja Rams case (supra) and we are bound by the same.26. In Raja Rams case (supra) the tenants were in default in paying rent for three years and due notices had been served by the landlords terminating the tenancies. They applied to Mamlatdar under Section 29 of the Act for possession of the lands. The Mamlatdar refused to make an order for possession on the ground that the tenants were entitled to relief, against forfeiture on equitable principles. In the fourth appeal before the Court, in respect of the default in the first year the tenant had been granted relief against forfeiture under Section 25(1) of the Act. The tenant contended that the default in the first year had merged in the order under section 25(1) and could not be relied upon for holding that he had defaulted for three years. It was held by this Court that the landlords were entitled to orders for possession because upon default in payment of rent for three years a statutory right accrued to the landlords under Section 25(2) to terminate the tenancy and to obtain possession. There was no provision in the Act for granting relief against forfeiture in such a case the provision in Section 29(3) that the Mamlatdar "shall pass such orders as he deems fit did not give him such a power. The Act merely empowered him to grant relief where the tenant was not in arrears for more than two years. No relief against forfeiture could be granted to a tenant who fails to pay rent for any three years within the period specified in Section 14, either on equitable grounds or under Section 11 of the Transfer of Property Act.Sub-section (2) of S. 25 lays down in the clearest peremptory terms that if the tenant fails to pay the rent for any three years within the period specified in S. 14, the authority concerned will be left with no discretion under sub-section (1) to allow the tenant to pay up the arrears and on such payment to direct that the tenancy had not been terminated. The words "the tenant has made defaults for more than two years" and "arrears" in the underlined portion of the above-quoted passage convey nothing more or different from what is explicit in the words "if he has failed for any three years to pay rent within the period specified in S. 14" occurring in sub-section (2) of S. 25. All that was intended to emphasise was that even if the tenant defaults in payment of rent for any three years, but the arrears relatable to these defaults are cleared as a result of the tender of full amount due by the tenant and its acceptance by the landlord, this sub-section (2) will not come into operation and the landlords application for eviction, when no arrears are outstanding would not be maintainable.31. It will bear repetition that "failure to pay rent for any three years" is not the same thing as failure to pay rent equivalent to more than two years rent. Even if the tenant fails to pay part of the rent due in any year within the period specified in Section 14, he defaults to pay rent for that year. Such partial defaults are also defaults within the contemplation of sub-section (2) of Section 25. Any other construction would lead to strange results, and even a persistently defaulting tenant would be able to stave off eviction by paying only a part of the rent due every year so that the unpaid arrears remain, in the aggregate, less than the total rent of two years.