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2002 (4) TMI 949 - SC - Indian Laws

Issues: Tenant's appeal against eviction decree under Section 10(2)(i) of Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.

Analysis:
The tenant held the premises under a lease agreement with a monthly rent of Rs. 100 and an additional amount of Rs. 111 for property tax. The tenant failed to pay rent for January to March 1990 and property tax for the years 1987-1990. The landlord issued a notice demanding payment, which the tenant partially tendered but was refused. Subsequently, the landlord initiated eviction proceedings for wilful default in rent payment.

The term 'rent' under the Act includes all payments agreed upon between the tenant and landlord, as per the decision in Karani Properties Ltd. v. Miss Augustine. The High Court of Madras consistently held that taxes agreed to be paid by the tenant form part of the rent. Thus, the unpaid property tax was considered part of the rent under Section 10(2)(i) of the Act.

The Explanation to Section 10(2) states that default in rent payment is wilful if it continues after a two-month notice by the landlord. In the case of S. Sundaram v. V.R. Pattabhiraman, it was established that failure to pay arrears after notice constitutes wilful default, leading to eviction. The tenant did not provide evidence of unavoidable circumstances preventing rent payment, further supporting the wilful default claim.

The High Court's decision holding the tenant guilty of wilful default and subject to eviction under Section 10(2)(i) was deemed valid. The appeal lacked merit and was dismissed without costs due to the absence of the landlord-respondent.

 

 

 

 

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