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2017 (12) TMI 1848 - SC - Indian LawsRecovery of property tax - arrears of rent by the landlord/owner can be considered to be forming part of the rent for the purpose of seeking eviction or ejectment of such tenant who defaults in payment of such recoverable tax as rent - rent including recoverable tax in respect of the tenanted premises exceeds Rs. 3500/- per month, thereby losing protection of the Delhi Rent Control Act, 1958 - interplay of Section 67(3) of the NDMC Act vis- -vis Section 7(2) of the Rent Act - HELD THAT - Under Section 67(3) the landlord has been given the right to recover the house tax from the tenant as if the same were rent whereas Under Section 7(2) of the Rent Act, there is a specific bar to recover any tax as rent from the tenant. In Ganga Ram 1977 (11) TMI 147 - DELHI HIGH COURT the tenant had sub-let a portion of the property and was receiving rents from the sub-tenant. After taking into consideration the rents received by the tenant from the sub-tenant and the rent payable by him to the landlord, the corporation determined the rateable value on the basis that the premises was fetching higher rent than that of the rent paid by the tenant to the landlord. It was the case of the landlord that he was entitled, Under Section 121(1) of the Corporation Act, to recover from the tenant the difference between the amount of property tax levied on the property and the amount of tax which would be leviable upon the premises if the tax was calculated only on the amount of rent paid by the tenant to the landlord without taking into consideration the rent received by the tenant from the sub-tenant. Whether non-payment of property tax recoverable from the tenant as rent can be a ground for his eviction/ejectment from the premises? - HELD THAT - This Court has held that an earlier enactment will prevail over a latter enactment even if, there is a non-obstante Clause in the latter enactment, if it were to be held that the earlier enactment is a special enactment on the particular subject being in issue - Assuming that the latter enactment prevailing over the earlier enactment were to apply to this case, the two enactments have to be harmoniously construed so as to ensure that the latter enactment does not cause violence to the intent of the earlier enactment. The object of the Rent Act is to provide protection to tenants who under common law, including Transfer of Property Act could be evicted from the premises let out to them at any time by the landlord on the termination of their tenancy. It restricts the right of the landlord to evict the tenant at their will. It is a special law in relation to landlord and tenant issue. Therefore, the Rent Act has to prevail insofar as landlord and tenant issue is concerned. Though the Rent Act is an earlier Act when compared to the NDMC Act, it is a special enactment with regard to the matter in issue and has a non-obstante clause. The NDMC Act is not a special enactment insofar as landlord-tenant issue is concerned and it contains Section 411 which provides that other laws not to be disregarded. Section 67(3) of the NDMC Act merely gives a right to recover the tax in respect of the premises as rent. It does not override the Rent Act insofar as obviating the effect of Section 7(2) of the Rent Act. In our opinion, the tax recoverable from the tenant Under Section 67(3) of the NDMC Act as arrears of rent by the Appellant cannot be considered to be forming part of the rent for the purpose of seeking eviction/ejectment of the Respondent who defaults in payment of such recoverable tax as rent. Appeal dismissed.
Issues Involved:
1. Whether property tax recoverable from the tenant under Section 67(3) of the New Delhi Municipal Council Act, 1994 (NDMC Act) as arrears of rent by the landlord/owner can be considered as part of the rent for eviction purposes. 2. The interplay between Section 67(3) of the NDMC Act and Section 7(2) of the Delhi Rent Control Act, 1958 (Rent Act). 3. Whether the NDMC Act overrides the Rent Act in terms of landlord-tenant issues. Issue-Wise Detailed Analysis: 1. Property Tax as Part of Rent for Eviction Purposes: The court examined whether property tax recoverable from the tenant as arrears of rent can be considered part of the rent for eviction purposes. The Plaintiff argued that the property tax levied by NDMC, when added to the monthly rent, exceeded Rs. 3,500/- per month, thereby removing the tenant's protection under the Rent Act. The Plaintiff cited the Delhi High Court’s decision in Ganga Ram v. Mohd. Usman, which allowed landlords to recover enhanced house tax from tenants. However, the court clarified that Ganga Ram did not address eviction based on non-payment of property tax as rent. 2. Interplay Between Section 67(3) of the NDMC Act and Section 7(2) of the Rent Act: The court analyzed the conflicting provisions of the NDMC Act and the Rent Act. Section 67(3) of the NDMC Act allows landlords to recover property tax from tenants as if it were rent, while Section 7(2) of the Rent Act prohibits landlords from recovering any tax on the building or land as rent. The court emphasized that the Rent Act is a special enactment with a non-obstante clause, designed to protect tenants from eviction. The NDMC Act, lacking a non-obstante clause and being a general enactment, does not override the Rent Act. 3. NDMC Act vs. Rent Act in Landlord-Tenant Issues: The court reiterated that the Rent Act is a special law concerning landlord-tenant issues, providing protection to tenants from eviction. The NDMC Act, being a general law, does not have provisions specifically addressing eviction. The court referenced several judgments, including Life Insurance Corporation of India v. D.J. Bahadur and Ors., and Sanwarmal Kejriwal v. Viswa Co-operative Housing Society Ltd. and Ors., to support the principle that a special enactment prevails over a general enactment. The court concluded that Section 67(3) of the NDMC Act does not override the Rent Act's provisions, specifically Section 7(2). Conclusion: The court dismissed the appeal, holding that the property tax recoverable from the tenant under Section 67(3) of the NDMC Act cannot be considered part of the rent for the purpose of seeking eviction. The Rent Act, being a special enactment with a non-obstante clause, prevails over the NDMC Act in landlord-tenant matters. The appeal was devoid of merit and dismissed with no orders as to costs.
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