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1971 (8) TMI 127 - HC - Companies Law

Issues:
Validity of notice under section 434 of the Companies Act and its compliance with Rent Control Act.

Analysis:
The judgment involves a second appeal under section 39 of the Delhi Rent Control Act concerning the validity of a notice served by the landlord on the tenant for non-payment of rent. The tenant, who had fallen into arrears of rent, was directed by the Additional Controller to pay the outstanding rent within a specified period. The tenant challenged the order before the Rent Control Tribunal, which affirmed the decision. The tenant then appealed to the High Court, questioning the validity of the notice served by the landlord.

The notice in question, issued by the landlord's counsel, demanded the outstanding rent from the tenant and stated that failure to pay within a specified period would result in the tenant being deemed unable to pay debts under the Companies Act. The notice did not explicitly mention eviction proceedings under the Rent Control Act in case of non-compliance. The tenant argued that the notice did not fulfill the requirements of a valid notice under the Rent Control Act.

The court analyzed the provisions of the Rent Control Act, emphasizing that the duty of the tenant is to pay rent as per the contract or statutory provisions. The court noted that the notice of demand serves as a reminder of the tenant's obligation to pay rent and failure to comply renders the tenant liable to eviction as per the law. The court clarified that a notice of demand need not specify the consequences of non-payment, as the statute itself provides for such consequences.

Regarding the validity of the notice, the court held that a composite notice, indicating the landlord's intention to recover dues through various legal proceedings, is permissible. The court concluded that the notice, though not explicitly mentioning eviction proceedings, was valid as it demanded outstanding rent and notified the tenant of the consequences of non-payment as per the Companies Act.

The court further clarified that the validity of the notice is not a determining factor at the stage of passing an order under section 15(1) of the Rent Act. The validity of the notice becomes relevant when the court decides on the tenant's liability for eviction based on the grounds specified in the Rent Control Act. The court dismissed the appeal, upholding the order of the Additional Controller and granting an extension to the tenant to comply with the payment order.

In conclusion, the judgment affirms the validity of the notice demanding outstanding rent, clarifies the tenant's obligation to pay rent as per statutory provisions, and emphasizes that the notice need not explicitly mention eviction proceedings to be considered valid under the Rent Control Act.

 

 

 

 

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