2003 (1) TMI 656 - SC - Indian Laws

Mere acceptance of delayed rent by the Landlord did not amount to waiver of the right which was accrued to him under the Act and also the tenant has committed default in payment of the rent. Where a statute empowers the Court to extend time or further time when a tenant fails to deposit rent within the stipulated time, only in such cases, the Court possesses power to extend time and in no other cases.

Summary

Issues:
1. Eviction of tenant on the ground of default in payment of rent.
2. Interpretation of Section 11(1)(d) of the Bihar Buildings (Lease, Rent & Eviction) Control Act.
3. Consideration of conflicting views in previous judgments.

Analysis:
1. The case involved tenants facing eviction by the landlord for default in payment of rent. The trial court initially dismissed the suit, but the first appellate court ruled in favor of the landlord. The High Court upheld the decision, stating that accepting delayed rent did not waive the landlord's right to evict for non-payment. The tenants appealed to the Supreme Court challenging this decision.

2. The Supreme Court analyzed Section 11(1)(d) of the Bihar Buildings (Lease, Rent & Eviction) Control Act, which states that a tenant can be evicted if the rent for two months is in arrears. The Court emphasized the statutory obligation of tenants to pay rent within the specified time, as outlined in the Act. The Court highlighted that the Act does not use terms like 'wilful default' or 'habitual default', focusing instead on the timely payment of rent.

3. The Court considered conflicting views in previous judgments, specifically referencing cases like Gowali Charan vs. Surendra Kumar Khandani and Satyanarain Kandu vs. Smt. Hemlata. The Court critiqued these judgments for not laying down correct legal principles and overruled them. The Court clarified that the High Court's decision aligning with these judgments was correct, and upheld the eviction of tenants for default in rent payment.

In conclusion, the Supreme Court dismissed the appeal, emphasizing the strict compliance required by tenants with statutory provisions regarding rent payment. The Court clarified the interpretation of the relevant Act and overruled previous judgments that did not align with the correct legal principles. The decision highlighted the importance of timely rent payment and upheld the eviction of tenants for default in payment, affirming the High Court's ruling in favor of the landlord.