Holding

Section 15(7) gives the Rent Controller a discretionary power to strike out the defence and to condone delay or extend time, and the High Court's interference was unwarranted.

Summary

The tenant, Jain Motor Car Co., was served an eviction petition by the landlord, S.P. Jain, for defaulting on rent payment and alleged sub‑letting. The Rent Controller ordered the tenant to pay arrears within one month and to continue depositing monthly rent by the 15th, but the tenant paid the February rent late, on 30 March. The landlord sought to strike out the tenant's defence under Section 15(7) of the Delhi Rent Control Act, 1958; the Rent Controller and the Rent Control Tribunal refused, but the Delhi High Court struck out the defence, relying on Hema Chand's decision. The Supreme Court held that Section 15(7) confers a discretionary power on the Rent Controller to strike out the defence and to extend time or condone delay, and that the High Court erred in substituting its own discretion. Consequently, the Court dismissed the tenant's appeals, upholding the earlier orders of the Rent Controller and Tribunal, and allowed the landlord to obtain possession.

Issues considered

The scope of discretion granted to the Rent Controller under Section 15(7) of the Delhi Rent Control Act, 1958 to strike out a tenant's defence and to extend time for rent payment.
Whether the Delhi High Court was justified in relying on Hema Chand v. Delhi Cloth & General Mills Co. Ltd. to deny the Rent Controller's discretion.
The effect of a single month’s delayed rent payment on the tenant's protection against eviction under Sections 14(1) and 14(2).

Legislation cited

Delhi Rent Control Act, 1958s. 14(1), s. 14(2), s. 15(1), s. 15(7)
Transfer of Property Act, 1882s. 106

Subjects

evictionrent controldiscretionSection 15Delhi Rent Control Actdefence striking outlandlord‑tenantdefault in rentcondonation

Judgment

\

JAIN MOTOR CAR CO., DELHI A
v.
SMT. SWAYAM PRABHA JAIN AND ANR..

FEBRUARY 15, 1996

[K. RAMASWAMY, S. SAGHIR AHMAD AND B
G.B. PATTANAIK, JJ.]

Delhi Rent Control Act, 1958.

Sections 14(1), 14(2), 15(1), 15(7)-Eviction petition-Tenant in ar- C
rears of rent-Order by Rent Controller under Section 15(1)-Non compliance
by tenant-Liable to be evicted-High Cowt co11fim1i11g the eviction by striking
out the defence of tenant-Held Unjustified-Power of Rent Controller and
T1ibunal under Section 15(7) is absolute discretion.

Appellant was the tenant of the respondent. Respondent filed a D
eviction petition before the Rent Controller, Delhi on the grounds of
default in payment of rent and sub-letting. Appellant was ordered to
deposit the arrears of rent and also deposit the future rent every month
by 15th of each month. Upon the failure of the appellant to deposit the
rent for the month of February by 15th March, and instead depositing it E
on 30th March, the respondent filed an application to strike out the
defence of the appellant under Section 15(7), which was rejected followed
by an appeal dismissed by the Rent Tribunal. Subsequently the respondent
filed a second appeal in the High Court.

In the mean time, the main eviction petition was allowed and the F
appellant was ordered to be evicted on the grounds that the appellant
committed default in not depositing the rent within the stipulated period
and also that the Rent Controller had no power to condone the delay or
to extend the time for depositing the rent. Tribunal dismissed the appeal

... whereby appellant filed a second appeal in the High Court. G
The High Court allowed the respondent's appeal with a finding that
the appellant had committed default in depositing the rent for the moQth
of February by 15th March and was therefore liable for eviction. It also
struck off the defence of the appellant following the decision of Supreme
Court in Hema Chand v. Delhi Cloth and General Mills Co. Ltd., AIR (1977) H
663
/

664 SUPREME COURT REPORTS [1996] 2 S.C.R.

A SC 1986 with an opinion that neither the Rent Controller nor the Tribunal
were not justified jn refusing to strike off the defence of the appellant.

Appellants filed these appeals and contended before the court that
interpretation of Section 15(1) and 15(7) by the High Court was erroneous
-
and contrary to the decisions of this court.
B
Dismissing the appeals, this Court

HELD: 1.1. Sections 14(1), 14(2) and 15(1) of the Delhi Rent Control
Act 1958, provide two opportunities to the tenant to avoid eviction. The
first is contemplated by Section 14(1) under which if the tenant pays to the
c landlord the entire amount of arrears of rent demanded from him by the
landlord within two months from the date on which a notice of demand is
served upon, it would not be possible for the landlord to institute the
proceedings for his eviction on the ground under Section 14 of the Act. The
second opportunity is provided to him after the institution of the proceed-
D ings by Section 14(2) which provides that no order for the recovery of
possession on the ground of default in payment of rent shall be made if
the tenant has deposited or made payment of the rent in accordance with
the provisions of Section 15 under which the Rent Controller can call upon
the tenant to pay to the landlord or to deposit in his court, within one
month from the date of the order, the arrears of rent calculated at the rate
E
at which it was last paid for the whole of the period for which the arrears
were legally recoverable from him including the period subsequent thereto
and further to pay or deposit continuously, month by month, by the 15th
of each succeeding month, a sum equivalent to the rent at that rate.
Apparently, the terms of Section 15(1) appear to be imperative. [669-D-F]
F
1.2. The consequence of non-deposit or noncompliance of the order
made under Sections 15(1) is indicated in Section 15(7) wherein it is
provided that the Controller may order the defence of the tenant to be
struck out and proceed with the hearing of the landlord's petition for
G eviction. [669-G]

1.3. The High Court was not justified in relying upon the decision of
this court in Hema Chand's case as it shall be deemed to have been
overruled or lost its efficacy as a binding decision in view of the three
Judges Bench decisions in Shyamcharan's case and Kam/a Devi's case. The
H Two Judges Bench in Ram Murthy's case has already critically examined
-- JAIN MOTOR CAR CO. v. S.P. JAIN 665

.... the decisions of the court in Hema Chand's case and has held it to be A
contrary to the Three Judges Bench decision in Shyamcharan's case.
[675-E-F]
1.4. The view expressed by the Rent Controller, the Rent Control
Tribunal as also the High Court that the time under Section 15(1) for
depositing the rent could not be extended nor could the delay be condoned B
was wholly erroneous. The whole approach, therefore from the beginning
was based on wrong premises. Striking out the defence under Section 15(7)
of the Act is in the discretion of the Rent Controller. Hence the discretion
appears to have been properly exercised by the Rent Controller as also by
the Rent Control Tribunal. The High Court, in the particular circumstan-
ces of the case, was not justified in interfering with that discretion and C
striking out the defence of the appellant. [675-G-H, 676-A-B]

Shyamcharan Shanna v. Dharamdas, AIR (1980) SC 587 =[1980) 2
SCC 151; Ram Murthy v. Bhola Nath and Another, AIR (1984) SC
1392 =[1984) 3 SCC III and Kamala Devi (Smt.) v. Vasdev, [1995) 1 SCC D
356, relied upon.

Hema Chand v. Delhi Cloth and General Mills Co. Ltd. and Another,
AIR (1977) SC 1986, referred to.

2.1. The option to remand the case to the Rent Controller to consider E
whether the appellant was entitled to extension of time in depositing the
rent or should he be evicted for not depositing the rent for only one month
in time, particularly when the default was not wilful or contumacious, will
not serve any purpose and not in the interest of justice now, as the High
Court appears to be justified in coming to the conclusion that the appel-
lant was negligent and careless as the rent could still be deposited by any
F
other partner, if the attorney had fallen ill, or one partner had forgotten
the date of deposit. Any other explanation offered by the appellant would
be obviously an after thought. [676-H, 677-A-B]

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 3679-80 G
of 1984.

From the Judgment and Order dated 19.8.92 of the Delhi High Court
in S.A.O. No. 190/73 and 125 of 1978.

Rajinder Sacher and Uma Datta for the Appellant. H
...

/ --
666 SUPREME COURT REPORTS [1996] 2 S.C.R.

A Pravir Jain, Meraj Khan, Vipin Nair for Rajiv Dutta for the Respon-
dents.

The Judgment of the Court was delivered by·

S. SAGHIR AHMAD, J. These are tenant's appeals.
B
2. Prem Chand Jain, who is since dead and is now represented by
respondent No.1, had filed a petition before the Rent Controller, Delhi,
for the eviction of the appellant from the premises no. Xl/4239-A, Raj
Kishan, Jain Street, Municipal Ward No. XI, Darya Ganj, Delhi, on the
C ground of default in payment of rent and sub-letting. This petition came to
be tried by the Additional Rent Controller, Delhi, who passed an order on
24th March, 1971 under Section 15(1) of the Delhi Rent Control Act, 1958
(for short, the 'Act') requiring the appellant to deposit all the arrears of
rent due for the period from 1.6.1970 within one month from the date of
the order and to deposit the future rent also at the rate of Rs. 200 p.m.
D every month by the 15th of each succeeding month after adjusting an
amount of Rs 800 which, admittedly, was received by Prem Chand Jain as
part of the arrears of rent.

3. While the proceedings were pending/before the Additional Rent
Controller, Delhi, Sh. Prem Chand Jain made an application dated
E 22.3.1972 under Section 15(7) of the Act for striking out the defence of the
appellant on the ground that the appellant had not deposited the rent for
the month of February, 1972, by 15th March, 1972 and had instead
deposited it on 30th March, 1972. This application was reje...:ted on 24th
April, 1972 and the appeal which was thereafter filed by Sh. Prem Chand
F Jain against this order was dismissed by the Rent Control Tribunal by order
dated 19.4.73. Sh. Prem Chand Jain then filed a second appeal in the High
Court which was registered as S.A.O. No. 198 of 1973.

4. In the meantime, the Third Additional Rent Controller, Delhi, by
his order dated 27.10.75, allowed the main petition of Sh. Prem Chand Jain
G for the eviction of the appellant from the premises in question on the
groun~ that the appellant had committed default in not depositing the rent
for the month of February, 1972, by 15th March, 1972 and thus the order
dated 24.3.71 for regularly depositing the future monthly rent by the 15th
of each succeeding month was not complied with the further finding that
H he, namely, the Rent Controller had no power to condone the delay or to
JAIN MOTOR CAR CO. v. S.P. JAIN [S. SAGHIR AHMAD, J.] 667

extend the time for depositing the rent. Consequently, the appellant was A
held not entitled to protection under Section 14(2) of the Act and he was
directed to be evicted from the premises in question.

5. This order was challenged by the appellant before the Rent
Control Tribunal before whom Sh. Prem Chand Jain also filed cross-ob-
jections on the question of sub-letting as the Additional Rent Controller
B
had held that the appellant had not sublet any part of the premises and
had thereby rejected one of the grounds on which the appellant's eviction
was sought. By order dated 20.3.78, the Tribunal dismissed the appeal of
the appellant as also the cross-objections filed by the landlord. The
Tribunal reiterated the finding recorded by the Rent Controller that it had c
no power or jurisdiction to condone the delay or to extend the time for
depositing the rent and the order passed under Section 15(1) had to be
strictly complied with. The appellant then filed a second appeal in the High
Court (S.A.O.No. 125 of 1978) which was taken up for hearing along with
landlord's S.A.O. No. 198 of 1973. The High Court by its judgment and D
order dated 19th August, 1982 dismissed the appellant's second appeal
while landlord's S.A.O. No. 198 of 1973 was allowed with the finding that
the appellant had committed default in not depositing the rent for the
month of February, 1972 by 15th March, 1972 and was, therefore, liable to
be evicted from the premises in question. The High Court was also of the
opinion that the Rent Controller as also the Tribunal were not justified in E
refusing to strike off the defence of the appellant which was consequently
struck off by it.

6. It is in these circumstances that the present appeals have been filed
and have now come up for hearing which are being disposed of by this F
judgment.

7. Mr. Sachhar, learned Senior Counsel for the appellant contended
that the interpretation placed by the Delhi High Court on the relevant
statutory provisions contained in Section 15(1) and 15(7) was erroneous
and contrary to the decisions of this Court and, therefore, the judgment G
was liable to be set aside.

8. We may examine the submission in the light of the relevant
provisions of the Act providing protection against sudden eviction of
tenants. H
668 SUPREME COURT REPORTS [1996) 2 S.C.R.
( --
A 9. Section 14(1) together with its proviso provides as under :

"14. Protection of tenant against eviction. (1) Notwithstanding
anything to the contrary contained in any other law or con-
tract, no order or decree for the recovery of possession of
any premises shall be made by any court or Controller in
B favour of the landlord against a tenant :

Provided that the controller may, on an application made to
him in the prescribed manner, make an order for the recovery of
possession of the premises on one or more of the following grounds
-
only, namely -
c
(a) that the tenant has neither paid nor tendered the whole
of the arrears of the rent legally recoverable from him within
two months of the date on which a note of demand for the
arrears of rent has been served on him by the landlord in the
D manner provided in Section 106 of the Transfer of Property
Act, 1882 (4 of 1882) ;

10. Section 14(2) provides as under :

"14.(2) N~ order. for the recovery of possession of any premises
E shall be made on the ground specified in clause (a) of the proviso
to sub-section (1), if the tenant makes payment or deposit as
required by Section 15 :

Provided that no tenant shall be entitled to the benefit under
this sub-section, if, having obtained such benefit once in respect
F of any premises he again makes a default in the payment of rent
of those premises for three consecutive months."

11. Section 15(1) provides as under :

"15. When a tenant can get the benefit of protection against eviction
G - (1) In every proceeding for the recovery of possession of any
premises on the ground specified in clause (a) of the proviso to
sub-section (1) of Section 14, the Controller shall; after giving the
parties an opportunity of being heard, make an order directing the
tenant td pay to the landlord or deposit with the Controller within
H one month of the date of the order, an amount calculated at the
JAIN MOTOR CAR CO. v. S.P. JAIN [S. SAGHIR AHMAD, J.] 669

rate of rent at which it was last paid for the period for which the A
arrears of the rent were legally recoverable from the tenant includ-
ing the period subsequent thereto up to the end of the month
previous to that in which payment or deposit is made and to
continue to pay or deposit, month by month, by the fifteenth of
each succeeding month, a sum equivalent to the rent at that rate."
B
12. Section 15(7) provides as under :

"15(7). If a tenant fails to make payment or deposit as required by
this section, the Controller may order the defence against eviction
to be struck out and proceed with the hearing of the application." C
13. A perusal of the above provisions will indicate that the Act
provides two opportunities to the tenant to avoid eviction. The first is
contemplated by the proviso to sub-section (1) of Section 14 under which
if the tenant pays to the landlord the entire amount of arrears of rent
demanded from him by the landlord within two months from the date on D
which a notice of demand is served upon him, it would not be possible for
the landlord to institute the proceedings for his eviction on the ground
under section 14 of the Act. The second opportunity is provided to him
after the institution of the proceedings, by Sec. 14(2) which provides that
no order for the recovery of possession on the ground of default in payment
of rent shall be made if the tenant has deposited or made payment of the
rent in accordance with the provisions of section 15 under which the Rent
Controller can call upon the tenant to pay to the landlord or to deposit in
his court, within one month from the date of the order, the arrears of rent
calculated at the rate at which it was last paid for the whole of the period
for which the arrears were legally recoverable from him including the F
period subsequent thereto and further to pay or deposit continuously,
month by month, by the 15th of each succeeding month, a sum equivalent
to the rent at that rate.

14. The consequence of non-deposit or non-compliance of the order G
made under section 15(1) is indicated in section 15(7) wherein it is
provided that the Controller may order the defence of the tenant to be
struck out and proceed with the hearing of the landlord's petition for
eviction.

15. Apparently, the terms of Section 15(1) appear to be imperative. H
...

670 SUPREME COURT REPORTS [1996] 2 S.C.R.
/
--
A There was a controversy whether the Rent Controller had any jurisdiction
to extend the time contemplated by Section 15(1) for the deposit of rent
or its payment to the landlord. A Full Bench of the Delhi High Court in
Delhi Cloth & General Mills & Co. Ltd. v. Hem Chand & Anr., AIR (1972)
Delhi 275 (F.B.) held that the Rent Controller had no jurisdiction to
condone the delay in deposit of the rent under Section 15 of the Act and
B it also held that once a default is committed by a tenant, his defence is
liable to be struck out under Section 15(7) with no alternative but to order
his eviction. This decision to the extent that the time for depositing the rent
cannot be extended or the delay cannot be condoned was upheld by this
Court in Hem Chand v. Delhi Cloth & General Mills Co. Ltd. & Anr., AIR
c (1977) SC 1986, but it did not agree with the Full Bench on the second
aspect of the matter that the default must result in the striking out of
defence and passing of an order of eviction. This Court also held that to
strike out or not to strike out the defence was a matter within the discretion
of the Rent Controller and the decree for eviction could not ipso facto be
D passed merely on the ground of default in depositing the rent under Section
15(2) of the Act. The relevant observations of this court are thus :

"Now the question that remains is whether the Rent Controller has
any discretion to extend the time prescribed in Section 15(1). This
Section requires the Controller after hearing the parties, to make
E . ari order directing the tenant to pay to the landlord or deposit with
the Controller Within.one month of the date of the order the arrears
of rent with a direction that they continue to pay or deposit month
by ~onth, a slim eqUivalent to the rent. This is a second oppor~
turiity given to the tenant to pay arrears .of rent. Without the
F protection given under theAct the landlord can on 15 days' notice
get the tenant evicted. The Rent Control Act protects the tenant
from such eviction and gives him an opportunity to pay the arrears
of rent within two months from the date of notice of demand as
provided in Section 15(1)(a). Even if he fruJs to pay, a further'
opportunity is given to the ·tenant to pay or deposit the arrears
G within one month under Section 15(1). Such payment of deposit
in compliance with the order under Section 15(1) takes away the
right of the landlord to claim recovery Of possession on the ground
of default in payment of rent. The legislature has given statutory
. protection to the tenant by affording him an opportunity to pay
H the arrears of rent within 'one month from the date of the order.
JAIN MOTOR CAR CO. v. S.P. JAi N (S. SAGHIR AHMAD, J.] 671

This statutory provision cannot be modified as rights of parties A
depend on the compliance with the order under Section 15(1). In
the circumstances we agree with the Full Bench that the Rent
Controller has no discretion to extend the time prescribed under
Section 15(1)."
B
16. A Three Judge Bench (Hon'ble V.R. Krishna Iyer, R.S. Pathak
and 0. Chinnappa Reddy, JJ.) of this Court in Shyamcharan Shanna v.
Dharamdas, AIR (1980) SC 587 = [1980) 2 SCC 151, on a consideration of
the provisions of the M.P. Accommodation Control Act (41of1961), which
were similar to Delhi Act, laid down that since Section 13(6) vests in the
court the discretion to order the striking out of the defence, it does not c
clothe the landlord with an automatic right to a decree for eviction nor
does it visit the tenant with the penalty of a decree for eviction being
straightway passed against him. It further observed as under :

D
"If S.13 were to be construed as mandatory and not as vesting a
discretion in the Court, it might result in the situation that a tenant
who has deposited the arrears of rent within the time stipulated
by S.13(1) but who fails to deposit thereafter the monthly rent on
a single occasion for a cause beyond his control may have his
defence struck out and be liable to summary eviction. We think E
that S.13 quite clearly confers a discretion, on the court, to strike
out or not to strike out the defence, if default is made in deposit
or payment of rent as required by S. 13(1). If the court has the
discretion not to strike out the defence of a tenant committing
default in payment or deposit as required by S.13(1), the court F
surely has the further discretion to condone the default and extend
the time for payment or deposit. Such a discretion is a necessary
.....
imrlication of the discretion not to strike out the defence. Another
construction may lead, in some cases, to a perversion of the object
of the Act, namely, 'the adequate protection of the tenant'. S.12
(3) entitles a tenant to claim protection against eviction on the G
ground specified in S.12(1)(a) if the tenant makes payment or
deposit as required by S.13. On our consideration of S.13 that the
Court has the power to extend the time for payment or deposit, it
must follow that payment or deposit within the extended time will
entitle the tenant to claim the protection of S.12(3). H
)-
672 SUPREME COURT REPORTS [1996] 2 S.C.R.
--
A 17. Both these decisions came to be considered by this Court in Ram
Murty v. Bhola Nath & Anr., AIR (1984) SC 1392 = (1984] 3 SCC 111, which
was a case under the Delhi Rent Control Act, 1958, and it was laid down
that so far as the provisions relating to the striking out of defence contained
in Section 15(7) are concerned, they are in pari materia with the provision
B contained in the M.P. Act and since a Three Judge Bench in
Shyamcharan's case (supra) had already held that it was within the discre-
tion of the Rent Controller to strike or not to strike out the defence, the
Two Judge decision in Hem Chand v. Delhi Clotii & General Mills, AIR
(1977) SC 1986 shall be treated as overruled. lt was laid down as under :

C "15. We must confess that the two decisions in Hem Chand and
Shyamcharan (AIR 1980 SC 587) supra, are irreconcilable.

16. It would be incongruous to hold that even if the defence of the
tenant is not to be struck out under S.15(7), that tenant must still
D be visited with the punishment of being deprived of the protection
under S.14(2). In Hem Chand's case (AIR 1977SC1986) the Court
went to the extent of laying down that even if the defence of the
tenant is struck out under Section 15(7), the Rent Controller could
not straightaway make an order for eviction in favour of the
landlord under S.14(1)(a). The Court held that the High Court was
E wrong in its assumption that failure to comply with the require-
ments of S.15(1) vests in the landlord an 'indefeasible right' to
secure an order for the eviction ofthe tenant under S.14(1)(a).
The Court set aside the judgment of the High Court taking that
view and remanded that matters to the Rent Contr?ller observing
-
F that there was still an issue to be trie& If that be so, the question
at once arises "What is the issue to be tried?. If the landlord has
still to make ~ut a case before the Re~t Controller that he was
entitled to an order for eviction ofthe tenant under S.14(1), surely
the ten~nt has the right to participate in the. proceedings and
cross-examine the landlord. It must logically follow as a necessary
G corollary that if the defence is not to be struck out under S.15(7)
it means that the tenant has still the defences open to him under·

--
the Act. In the premises, the conclusion is irresistible that he has
the right to claim protection under S.14(2). What is of essence of
S.14(2) acd of S.15(6) is whether there has been a substantial
H compliance with the order passed under S.15(1). The words "as
- JAIN MOTOR CAR CO. v. S.P. JAIN [S. SAGHIR AHMAD, J.] 673

required by S.15(1)" in these provisions must be construed in a A
reasonable manner. If the Rent Controller has the discretion under
S.15(7) not to strike out the defence of the tenant, he necessarily
has the power to extend the time for payment of future rent under
S.15(1) where the failure of the tenant, to make such payment or
deposit was due to circumstances beyond his control. The previous
B
decision in Hem Chand's case interpreting S. 15(7) and S.14(2) in
the context of S. 15(1) of the Delhi Rent Control Act, 1958,
although not expressly overr{iled, cannot stand with the subsequent
decision in Shyamcharan's case interpreting the analogous provisions
of the Madhya Pradesh Accommodation Control Act, 1961 as it is
of a la1ger Bench. C

(emphasis supplied)

18. Another Three Judge Bench of this C{)urt in a recent decision in
Kam/a Devi (Smt.) v. Vasdev, [1995] 1 SCC 356, which was also a case D
under the Delhi Act, has affirmed the decisions rendered in Ram Mwty's
case (supra) and Shyamcharan's case (supra). The learned Judges (Hon'ble
J.S. Verma, S.P. Bharucha & Suhas C. Sen) were of the opinion that the
provisions of this Act were similar to the provisions of the Madhya Pradesh
Act. They observed as under :-
E
"20. On behalf of the appellant it has been contended that the
principles laid down in this case should not be extended to a case
governed by the provisions of Delhi Rent Control Act. We do not
find any material distinction between the provisions of Section 12(1),
(3) and Section 13(1), (5) and (6) of the Madhya Pradesh Act and F
the comspondingprovisions of Section 14(1), (2) and Section 15(1),
(7) of the Delhi Act. In fact this argument was rejected in the case
of Ram Murti v. Bhola Nath. In that case, construing the provisions
of the Delhi Act, it was held that Section 15(7) conferred a
discretionary power on the Rent Controller to strike out the
defence of the tenant. That being the position, the Rent Controller G
had, by legal implication, power to condone the default on the part
of the tenant in making payment or deposit of future rent or to
extend time for such period or deposit."

(emphasis supplied) H
674 SUPREME COURT REPORTS [1996] 2 S.C.R.

A At another place, they observed as under :-

"21. In coming to this conclusion reliance was placed on the
decision in the case of Shyamcharan Shanna case, it was argued
on behalf of the respondent that Shyamcharan Shanna case was
decided under the Madhya Pradesh Accommodation Control Act,
B 1961 which had a different scheme altogether and had no applica-
tion to a case to be decided under the provisions of the Delhi Rent
Control Act. This argument was repelled by pointing out in that
judgment that the scheme of the Madhya Pradesh Accommodation
Control Act, 1961 was almost similar to that of the Delhi Act with
c regard to the claim of the landlord for eviction of the tenant on failure
to pay rent. The only difference was that under the Madhya Pradesh
Act the landlord had to bring a suit for eviction before a Civil
Court under Section 12(1)(a), whereas under the Delhi Act an
application had to be made before the Rent Controller under
Section 14(1)(a)."
D
(emphasis supplied)

After noticing the similarities in the Delhi Act and the Madhya Pradesh
Act, the Court finally observed as under :
E "In our view, sub-section (7) of Section 15 of the Delhi Rent
Control Act, 1958 gives a discretion to the Rent Controller and
does not contain a mandatory provision for striking out the defence
cif the tenant against eviction. The Rent Controller may or may not
pass an order striking out the defence. The exercise of this discre-
F tion will depend upon the facts and circumstances of each case. If
the Rent Controller is of the view that in the facts of a particular
case the time to make payment or deposit pursuant to an order
passed under sub-section (1) of Section 15 should be extended, he
may do so by passing a suitable order. Similarly, if he is not satisfied
about the case made out by the tenant, he may order the defence
G
against eviction to be struck out. But, the power to strike out the
defence against eviction is discretionary and must not be mechani-
cally exercised without any application of mind to the facts of the
case."

H 19. Shyamcharan's case (supra) was cited before the Delhi High
JAIN MOTOR CAR CO. v. S.P. JAIN [S. SAGHIR AHMAD, J.] 675

Court in the instant case, but it distinguished it on the ground that it was A
a case under the M.P. Act and was not applicable. It consequently
proceeded to strike out the defence of the appellant on the ground tha~ it
had committed a default in depositing the rent for the month of February,
1972 by the 15th of March, 1972. For doing this, it followed the decision
of this Court in Hem Chand v. Delhi Cloth & General Mills, AIR (1977) SC
B
1986. It would be seen that even in that case this Court had observed as
under:

"While we agree with the view of the Full Bench that the Controller
has no power to condone the failure of the tenant to pay arrears
of rent as required under Section 15(1), we are satisfied that the C
Full Bench fell into an error in holding that the right to obtain an
order for recovery of possession accrued to the landlord. As we
have set out earlier in the event of the tenant failing to comply
with the order under Section 15(1) the application will have to be
heard giving an opportunity to the tenant if his defence is not struck D
out under Section 15(7) and without hearing the tenant if his
defence is struck out. The Full Bench is therefore in error in
allowing the application of the landlord on the basis of the failure
of the tenant to comply with an order under Section 15(1)."

20. In view of the above discussion, the High Court was not justified E
in relying upon the decision of this Court in Hem Chand's case as it shall

- be deemed to have been overruled or, in any case, lost its efficacy as a
binding decision in view of the Three Judge Bench decisions in Shyam-
charan Shanna v. Dharamdas, AIR (1980) SC 587 and Kamla Devi v.
Vasdev, [1995] 1 SCC 356. The two Judge Bench in Ram Murty v. Bhola F
Nath & Anr., AIR (1984) SC 1392 has already critically examined the
decision of this Court in Hem Chand's case (supra) and has held it to be
contrary to the three Judge Bench decision in Shyamcharan Shamia's case.

21. Applying the above principles to the instant case, it cannot but G
be held that the view expressed by Rent Controller, the Rent Control
Tribunal as also the High Court that the time under Section 15(1) for
depositing the rent could not be extended nor could the delay be condoned
was wholly erroneous. The whole approach, therefore, from the beginning,
was based on wrong premises. The High Court went a step further. While
the Rent Controller and the Rent Control Tribunal had not struck out the H
676 SUPREME COURTREPORTS [1996] 2 S.C.R.

A defence of the appellant on the ground that 15 days' default in depositing
the rent for February, 1972 was not wilful or contumacious, the High Court,
on an erroneous view, struck out the defence. We have already noticed
above that striking out of defence under Section 15(7) of the Act is in the
discretion of the Rent Controller. Since the discretion appears to have been
properly exercised by the Rent Controller as also by the Rent Control
B Tribunal, the High Court, in the particular circumstances of the case, was
not justified in interfering with that discretion and striking out the defence
of the appellant. The High Court, while considering this question, has
observed as under :

c "In other appeal S.A.O. No. 193of1973 of the landlord challenging
the Judgment and order of the Tribunal dismissing his application
under Section 15(7) of the Act, the defence of the appellant tenant
was not struck off by the Controller. In other words the tenant was
allowed to defend the eviction case. He was allowed to lead
evidence and take part during the trial of the eviction proceedings.
D
The appellant had claimed condonation for the purpose of Section
15(7) of the Act on the ground that the attorney of the appellant
had fallen ill and the partner of the firm Ajit Prasad had forgotten
the date of deposit on account of being busy in connection with
the election in which his brother was also a candidate. These facts
E are not sufficient to condone the delay in deposit of rent. These
acts amount to negligence on the part of.the appellant which is a
partnership firm. The attorney had fallen ill and one partner had .
forgotten the date of deposit, there were other partners and other
officials of the firm who ought to have taken steps to deposit within
time. I am, therefore, of the view that it was not a fit case for
F
refusing to strike off the defence of the appellant tenant under .
Section 15(7) of the Act. I, therefore, set aside the Judgment and
order of the Tribunal and the Controller and strike off the defence
of the appellant."

G 22. The High Court thus struck out the defence by substituting its
own discretion in place of th~ Rent Controller and the Tribunal both of .
whom had held that the default by the appellant was not wilful. The main
question was whether appellant was entitled to extension of time in deposit-
ing the rent or should he be evict~d for not depositing the rent for only
H one month in time particularly when the default was not wilful or contuma-·
JAIN MOTOR CAR CO. v. S.P. JAIN [S. SAGHIR AHMAD, J.) 677

cious. At one time, we were inclined to remand the case to the Rent A
Controller so that the appellant's plea regarding extension of time in
aepositing the rent for the month of February, 1972 may be considered but
having regard to the fact that the appellant had already pleaded those facts
which have already been considered by the High Court, we feel that it
would not be in the interest of justice now to remand the case as the High
Court appears to be justified in coming to the conclusion that the appellant
B
was negligent and careless as the rent could still be deposited by any other
partner, if the attorney had fallen ill or one partner had forgotten the date
of deposit. Any other explanation offered by the appellant would be
obviously an after thought and, therefore, as pointed out earlier, it will not
serve any purpose to remand the case to the Rent Controller. The result c
is that the appeal has to be dismissed and is hereby dismissed but without
any order as to costs allowing three months time to the appellant to vacate
the premises on filing the usual undertaking to this effect in this Court
failing which the respondent-landlady will be entitled to recover possession
from the appellant through police force.
D
M.K. Appeal dismissed.