Holding

Section 13(1) remains operative and obliges the tenant to deposit arrears and future rent unless the dispute involves the rate of rent, in which case Section 13(2) applies; therefore eviction without provisional rent fixation is valid when only arrears are contested.

Summary

The landlords owned a property in Ujjain and let three rooms to the tenant at Rs.60 per month. The tenant defaulted on rent for March‑July 1976 and produced forged receipts; the landlords gave notice of termination for arrears and nuisance and sued for eviction under Section 12(1)(a) of the Madhya Pradesh Accommodation Control Act, 1961. The trial court found the tenant in default and decreed eviction, which was affirmed by the lower appellate court. The High Court reversed, holding that because the rent rate and arrears were disputed, Section 13(2) required a provisional rent to be fixed and until then Section 13(1) was inoperative, rendering the eviction decree invalid. The Supreme Court held that when the rate of rent is admitted and only the quantum of arrears is disputed, Section 13(2) does not apply; Section 13(1) remains operative, imposing twin independent obligations on the tenant, and failure to comply justifies eviction. Accordingly, the appeal of the landlords was allowed and the eviction decree was upheld.

Issues considered

Whether a decree of eviction under Section 12(1)(a) of the Madhya Pradesh Accommodation Control Act can be passed without fixing provisional rent under Section 13(2) when the rate of rent is admitted but the arrears are disputed.

Legislation cited

Indian Penal Code, 1860s. 193
Madhya Pradesh Accommodation Control Act, 1961s. 12(1)(a), s. 12(3), s. 13(1), s. 13(2), s. 13(5), s. 13(6)

Subjects

rent controlevictionMadhya Pradesh Accommodation Control ActSection 12Section 13provisional rentarrears of renttenant rightslandlord rights

Judgment

JAMNALAL AND ORS. A
v.
RADHESHYAM

APRIL 18, 2000

[SYED SHAH MOHAMMED QUADRI AND N. SANTOSH HEGDE, JJ.] B

Rent control and eviction:

M.P. Accommodation Control Act, 1961-Sections 13(1), 13(2) and
12(1)(a)-Default in-Arrears of rent and rate of rent-Operation of section
13(1)-Where dispute as to amount of rent payable has no nexus with rate of
c
rent-Court need not hold a summary inquiry under Section 13(2) to fix
provisional rent and section 13(1) remains operative-Tenant remains liable to
deposit rent under section 13(1)-It he fails, court can pass orderfor eviction-
But where both rate of rent and arrears of rent are disputed Section 13(1)
becomes inoperative till court fixes provisional rent under section 13(2) of the D
Act.

Tenant facing eviction proceedings under section 12( 1) of the Act-
Section 13(1) imposes twin obligations-One to pay or deposit rent within one
month ofthe service ofsummons,for periodforwhich arrears are due and also
for the period for which it become due subsequent to the notice of demitnd- E
Other obligation is to deposit future rent, month by month-Held, the two
obligations are independent of each other-Further, compliance oftlie second
does not depend upon fulfilment of the first obligation.

Application ofsection I 3(1) ofthe Act-Section 13(1) ofthe Act applies
F
to suits/or eviction based on any ofthe grounds enumerated in section 12(1)(a)
to (p) and not merely to arrears of rent under clause (a) ~ Therefore, tenants
facing eviction proceedings on grounds other than non-payment of arrears of
rent, have to deposit future rent, under section I 3(1) of the Act.

Won& and Phrases: G
'Thereafter'-Meaning uJ

Appellants filed suit for eviction of respondent on the ground of
default in payment of rent under section 12(1)(a) of the M.P. Accommoda-
tion Control Act, 1961. Respondent admitted the rate of rent. He denied H
135
136 SUPREME COURT REPORTS [2000] 3 S.C.R.

A being in arrears of rent and produced forged rent receipts. Suit was decreed
and the appeal was dismissed. High Court allowing the respondent's sec-
ond appeal held that since trial court had not fixed provisional rent under
section 13(2) of the act, section 13(1) became inoperative and tenant could
not have been evicted. Hence this appeal.

B Allowing the appeal, the Court

HELD : 1.1. The tenant is relieved of the consequences of default in
payment of rent on his paying/depositing the rent under S.13(1) M.P.
Accommodation Control Act, at the rate last paid or at the rate fixed
c provisionally under section 13(2) of the Act but if the tenant takes a false or
frivolous plea in regard to the amount of rent payable by him, which does
not involved fixation of provisional rent under Section 13(2), he runs the
risk of suffering an order of eviction either under Section 13(6) or after
trial under section 12(1)(a) of the Act. [146-F-G]

D 2.1. Where rate of rent is admitted and the quantum of the arrears of
rent is disputed, (on the plea that the rent for the period in question or part
thereof has been paid or otherwise adjusted) section 13(2) of the Act is not
attracted. The determination of such dispute in a summary inquiry is not
contemplated under section 13(2) to fix provisional rent and section 13(1)
E of the Act remains operative. Such a dispute has to be resolved after trial of
the case. The tenant has to take the consequence of non-payment/deposit of
rents. H he fails in his plea that no arrears are due and the court finds that
the arrears of rent for the period in question were not paid it has to pass an
order of eviction against the tenant as no provision of Section 13 of the Act
protects him. [145E-G]
F
2.2. It is only when the obligations imposed in Section 13(1) of the Act
cannot be complied with without resolving the dispute under section 13(2),
section 13(1) will became inoperative µII such time the dispute is resolved
by the court by fixing a reasonable provisional rent in relation to the
G accommodation. It follows that where the rate of rent and the quantum of
arrears of rent are disputed the whole of Section ·13(1) become inoperative
till provisional fixation of monthly rent by the Court under section 13(2),
which will govern compliance of Section 12(1) of the Act. [145-C-D]

3.1. Section 13(1) of the Act imposes twin obligations on the tenant
H against whom a suit or proceeding is instituted on any of the grounds
JAMNALAL v. RADHESHYAM [SYED SHAH MOHMMED, J.] 137
mentioned in Section 12(1). The firstis that within one month of the service A
of the writ of summons on him the tenant shall deposit in the court or pay to
the landlord an amount for the period for which arrears of rent are due and
period for which rent became due subsequent to the notice of demand, the
second is the period for which rent will become due in future. These
obligations are independe~t of each other. Compliance of the second does
B
not depend upon fulfilment of the first obligation. (142-G-H; 143-A-B; G]

3.2. Section 13(1) of the Act applies on institution of a suit on any of
the grounds in clauses (a) to (p) of Section 12(1) and not merely to one
under clause (a) default in payment of rent. Therefore, tenants facing
eviction proceedings on other grounds than arrears of rent, has to deposit c
future rent under section 13(1) of the Act. [143-G-H; 144-A-B]

3.3. The word ''thereafter" is merely indicative of sequence of the
second obligation to deposit the future rents; it is certainly not suggestive of
the fact that if the first obligation for any reason cannot be complied \vith
then the occasion to comply with the second obligation does not arise or D
that it automatically comes to an end. [144-C]

Firm Ganeshram Harvilas & Am: v. Ramchandra Rao, (1970) MPLJ
902; Jivambhai & Anr: v. Amarsingh, (1972) MPLJ 785; Chhogalal Jankilal v.
Idol of Bhagwan Shri Satyanaraya through Kamaldas Guru, Pujari, (1975)
E
MPLJ 657; Anandilal v. Shiv Dayal Pandey, (1977) MPLJ 822; Jhammanlal's
case Second Appeal No.179of1970, decided at Gwalior (M.P.) on 5.8.1976
and Dewahai's case 1977 MPLJ 446, disapproved.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3340 of 1998.
F
From the Judgment and Order dated 16.12.97 of the Madhya Pradesh
High Court in S.A. No. 183 of 1993.

A.K. Chitale, Nrraj Sharma and Ms. Shilpa Chitale for the Appellants.

A.M. Khanwilkar, (A.C.) for the Respondent. G
The Judgment of the Court was delivered by

SYED SHAH MOHAMMED QUADRI, J. The question that arises for
consideration in this appeal is : can the court pass a decree for eviction of a
tenant under Section 12(l)(a), without first determining provisionally the H
138 SUPREME COURT REPORTS [2000) 3 S.C.R.
A amount of rent payable under Section 13(2) of the M.P.Accommodation ...
Control Act, 1961, when the tenant, having admitted the rate of rent, failed
to establish that he had paid the arrears of rent?

This appeal, by special leave, is preferred by the landlords challenging
the validity of the judgment of a learned Single Judge of the High Court of
B Madhya Pradesh, Indore Bench, in Second Appeal No.183 of 1993 passed on
December 16, 1997.

The relevant facts giving rise to this appeal need be noticed.

One Bherulal was the owner of house No.11796, Brabmin Gali, Ujjain,
C (Madhya Pradesh) in which he let out three rooms (hereinafter referred to as
'the suit accommodation') for residential purposes to the respondent (tenant)
on a monthly rent of Rs. 60. A rent note was also executed on December 4,
1971. The said Bherulal passed away, leaving behind him the appellants
(landlords) among other heirs, on April 19, 1972. It is stated that in the
D · partition of his properties among his heirs the suit accommodation fell to the
share of the landlords. On November 29, 1976, the landlords issued a notice
to the tenant terminating his tenancy on two grounds - (i) default in payment
of arrears of rent for the period commencing from 2.3.1976 to 2.4.1977 and
(ii) creating nuisance. On the plea that despite service of the notice of demand
the tenant did not pay the arrears of rent nor did he abate nuisance, the
E landlords filed Civil Suit No. 340-A of 1989 in the court of Civil Judge Class-
11, Ujjain, M.P. for recovery of possession by ejectment of the tenant under
Section 12(1)(a) of the Madhya Pradesh Accommodation Control Act, 1961,
(for short 'the Act'). The tenant contested the suit pleading that he had paid
the arrears of rent and denying the ground of nuisance~ however, he admitted
F that the rent was Rs. 60 per month. On the basis of the evidence produced by
the parties before it, the trial court found that receipts produced by the tenant
in proof of payment of rent for the period from March to July, 1976 (Bxs.DI
to 04) were forged and that the tenant committed default in payment of rent
for the said period; it ordered his prosecution also under Section 193 of the
Indian Penal Code. The ground of nuisance was also accepted. On December
G 20, 1990, in view of these findings, the trial court decreed the suit for eviction
of the tenant. Against that judgment the tenant filed appeal in the court of 1st
Additional DistrictJudge, Ujjain, M.P. On April 27, 1993, the Appellate Court
confirmed the decree of the trial court and dismissed the appeal with costs. In
the. tenant's second appeal, the High Court framed the following substantial
H question of law under Section 100 of the Code of Civil Procedure :
JAMNALAL v. RADHESHYAM (SYED SHAH MOHMMED, J;] 139

-- y "Whether in the facts and circumstances of the ca~ the decree passed
.
by the courts below under Section 12(1)(a) of the M.P.Accommodation.

Control Act, 1961, without fixing provisional rent in terms of Section
A

13(2) of the said Act, despite dispute about the quantum of arrears
of rent, is sustainable in law?"

'The High Court took the view that as the tenant disputed ~ing' in arrears B
of rent and no provisional rent was detennined by the trial courl, -the operation
of the whole of 8Ub-section (1) of Section 13 of the Act was arrested as such
the tenant could not be met with the penal consequences of eviction decree
denying him the benefit of sub-section (3) ofSection 12 of the Act. It was also
noted that the tenant had cleared all the arrears accruing due during the c
peildency of the suit and appeal so the landlords' claim for eviction on th~ sole
ground under Section 12(1)(a) of the Act must fail and thus allowed the second
appeal by the judgment impugned in this appeal.
)-
Mr. A.K. Chitale, learned senior counsel appearing for the appellants,
argued that having regard to the scheme of the Act the ground for seeking D
eviction of the tenant under Section 12(1 )(a) of the Act cannot be defeated fot
the reason that the amount of rent payable by the tenant was not determined
provisionally by the trial court. The learned counsel submitted that the tenant
'
having taken the plea that he paid the rent, forged receipts and lost on that
ground, so he could not invoke Section 13(2) of the Act meant for fixation
E
of rate of rent provisionally by ·the trial court when the rate of rent was
disputed. The question whether the tenant was in arrears of rent, submitted Mr.
Chitale, could not be the subject-matter of summary inquiry under sub-section
(2) of Section 13 of the Act which was only meant as interim arrangement for
payment of monthly rent during the pendency of the case. The finding that the
tenant committed default in payment of rent recorded· by the trial court and F
confmned by the Appellate Court ought to have been accepted by the High
Court in Second Appeal.

Though notice of lodgment of the appeal was ser\red on the respondent,
he did not choose to enter appearance. Having regard to the importance of the
ques~on which involves interpretation and inteiplay of Sections 12 and 13 of
G
the Act we requested Mr. A.M. Khanwilkar. Advocate, to assist the co\Jrt.
...Jj-

Mr. Khanwilkar contended that under the ·sch~e of the Act there could
~ no eviction of a tenant on the ground of default in payment of rent even
though Section 12(l)(a) of the Act provided that eViction of a tenant would H
140 SUPREME COURT REPORTS [2000] 3 S.C.R.
A be permissible; the provisions of Section 12(3) and Section 13 of the Act gave
protection to a tenant, in default in payment of rent, against eviction. Section
13(5), submitted the learned counsel, prohibited passing of decree or order for
recovery of possession of accommodation on the ground of default in payment
of rent by the tenant provided he had made deposit or payment as required in
sub-section (1) or sub-section (2) of Section 13 of the Act. As the amount of
B
rent payable by the tenant was not determined provisionally by the trial court
under sub-section (2), the tenant had no opportunity to make deposit under
sub-section (1) of Section 13 of the Act as such no order of eviction could be
passed against him under Section 12(l)(a) of the Act; in such a case passing
an order of eviction against a tenant, it was submitted, would result in the
c tenant suffering for non-determination of provisional amount of rent by the
court.

To examine the above contentions of the learned counsel, it is necessary
to refer to clause (a) of sub-section (1), sub-section (3) of Section 12 and also
D Section 13 of the Act, as it stood at the material time, which are relevant for
our purpose:

"12. Restriction on eviction of tenants.

(1) Notwithstanding anything to the contrary contained in any other
E law or contract, no suit shall be filed in any Civil Court against
a tenant for his eviction from any accommodation except on one
or more of the following grounds only, namely:
-
(a) that the tenant has neither paid nor tendered the whole of the
F arrears of the rent legally recoverable from him within two
months of the date on which a notice of demand for the arrears
of rdnt has been served on him by the landlord in the prescribed
m,&ier;

(b) to (p) *** *** **
G
(2) *** *** ***
(3) No order for the eviction of a tenant shall be made on the
ground specified in clause (a) of sub-section (1), if the tenant
makes payment or deposit as required by Section 13:
H
JAMNALAL v. RADHESHYAM [SYED SHAH MOHMMED, J.] 141

·t' Provided that no tenant shall be entitled to the benefit under this A
'---4'
sub-section if, having obtained such benefit once in respect of
•
' ~' t"':'
any accommodation he again makes a default in the payment of ·,:.';-:••. ):;;>, : ,, .
rent of that accommodation for three consecutive months.

(4) to (11) *** *** ***
B
13. When tenant can get benefit of protection against eviction. -

(1). On a suit or proceeding being instituted by the landlord' on any
of the grounds referred to in Section 12, the tenant shall, within
one month of the service of the writ of summons on him or
within such further time as the Court may, on an application c
made to it, allow in this behalf, deposit in the Court or pay to
the landlord an amount calculated at the rate of rent at which
it was paid, for the period for which the tenant may have made
default including the period subsequent thereto upto the end of
the month previous to that in which the deposit or payment is D
made and shall thereafter continue to deposit or pay, month by
month, by the 15th of each succeeding month a sum of
equivalent to the rent at the rate.

(2) If in any suit or proceeding referred to in sub-section (1), there
is any dispute as to the amount of rent payable by the tenant, E
the Court shall fix a reasonable provisional rent in relation to

- the accommodation to be deposited or paid in accordance with
the provisions of sub-section (1) till the decision of the suit or
appeal.

(3) If, in any proceeding referred to in sub-section (1), there is any F
dispute as to the person or persons to whom the rent is payable,
the Court may direct the tenant to deposit with the Court the
amount payable by him under sub-section (1) or sub-section (2),
and in such a case, no person shall be entitled to withdraw the
amount in deposit until the Court decides the dispute and makes G
an order for payment of the same.
.f
(4) If the Court is satisfied that any dispute referred to in sub-
section (3) has been raised by a tenant for reasons which are
false or frivolous, the court may order the defence against
eviction to be struck out and proceed with the hearing of the H
142 SUPREME COURT REPORTS [2000] 3 S.C.R.

A suit.

(5) If a tenant makes.deposit or payment as required 'by sub-section
(1) or sub-section (2), no decree or order shall be made by the
Court for the recovery of possession of the accommodation on
the ground of default in the payment of rent by the tenant, but
B the Court may allow such cost as it may deem fit to the landlord.

(6) If a tenant fails to deposit or pay any amount as required by this ""'-
section, the court may order the defence against eviction to be
struck out and s~all proceed with the h~g of the Suit.

c A cursory reading of clause (a) of sub-section (1) of Section 12 of the
Act makes it clear that non-payment of arrears of rent legally recoverable from
a tenant within two months of the date on which a notice of demand for the
arrears of rent .has been served on him by the landlord in the prescribed
manner, is one of the· grounds for filing a suit in a Civil Court against a ~nant
D for his eviction from the rented accommodation. But the legislative mandate
contained in sub-section (3) of Section 12 is that no order of eviction of a
tenant shall be made if he makes payment or deposit as required by Section
13 of the Act. The. proviso appended to Section 12(3) restricts entitlement to
the benefit available under that sub- section. It cannot be availed by a tenant
y;ho having obtained such benefit once in respect of any acc'?mmodation again
E makes a default in payment of rent of that accommodatiori' for three consecu- .·
tive months.

The scheme of Section 13 of the Act suggests that the provisions thereof
are intended for the ben~fit of both the tenant as well as the landlord. While
F Section 13 affords protection to a defaulting tenant, willing to abide by the
obligation to pay the rent regularly, against eviction on the ground of default ·}'.
in payment of rent, it also ensures payment of rent to the~landlord, which he
is-entitled to receive for both the pre-litigation period as well as during the
pendency of the litigation. A perusal of Sub-sectj.on (l) of Section 13 discloses ·
that .it imposes twin obligations on the tenant against whom a suit or
G" proceediiig is instituted on any of the grounds mentioned in sub-section (1)
of Section 12. The first is that within one month of the service of the writ of
summons· on him or within such further time as the Court may, on an
application made to it, allow in this behalf. the tenant shall deposit in the Court
or pay to the landlord an amount, representing (a) arrears of rent for the i:ieriod
H for which the tenant may have made default and (b) rent for the period
JAMNALAL v. RADHESHYAM [SYED SHAH MOHMMED, J.) 143

~.,.- subsequent thereto upto the end of the month previous to that in which the A
deposit or payment is made, duly calculating the same at the rate of rent at
which it was paid. And the second is payment/deposit of rent for the period
thereafter, that is, future rent which he shall continue to deposit or pay, month
by month, by the 15th of each succeeding month, at that rate. For the purpose
of depositing the amount of rent, sub-section (1) refers to three periods in
B
chronological order, i.e.,

> (i) period for which arrears of rent are due, which is the subject
matter of notice of demand served on the tenant;

(ii) period for which rent became due subsequent to the notice of c
demand till the date of deposit of rent in Court; and

(iii) period for which rent will become due in future, after the date

" of deposit as aforementioned, till the decision of suit or appeal.

The following illustration will help in elucidating the import of the provisions D
under consideration; if a tenant has last paid rent of tenanted premises, say,
@ Rs.1000 for the month of January and did not pay for February, March and
April and notice of demand claiming arrears of rent for those months was
served on him in May; the Act permits him to pay the arrears of rent within
"- two months of service of demand, i.e., till end of July. Assuming he has failed
E
to do so and the landlord files the suit under Section 12(l)(a) of the Act of
which writ of summons is served on the tenant on September 15, for his
appearance in the Court, he has the second opportunity to pay arrears of rent
in Court within one month of service of summons on him i.e., till October 14
or within such further time as the Court may allow; but at that stage along with
.A arrears of rent for the said months he has also to pay/deposit rent for the F
months from May to the end of September. The second obligation of
depositing the future rent continuously from month to month covers the period
commencing from October-and ending with the decision of suit or appeal. The

- -f
arrears of rent and the future rent for each month, in the illustration, have to
be calculated at the rate of Rs.1000.

The abovestated two obligations are independent of each other. Com-
G

pliance of the second does not depend upon fulfilment of the first obligation.
It is evident that Section 13(1) applies on institution of a suit on any of the
grounds in clauses (a) to (p) of Section 12(1) and not merely to one under
clause (a) - default in payment of rent. In cases under clauses other than (a), H
144 SUPREME COURT REPORTS [2000] 3 S.C.R.
A the tenants might have been paying the rent regularly and the question of -+.._.,
payment/deposit of arrears of rent or rent for the period subsequent to service
of summons, may not arise. Can then, based on the word "thereafter", it be
argued that there will be no liability to deposit future rent - the s~cond
obligation noted above. In our view such a contention will be defeating the
object of the provisio~ and will be impermissible. Having stated how the
B
amount of rent payable by the tenant for the periods specified therein should
b.e calculated and deposited, the provision imposes further obligation to
deposit the rent month by month till the termination of the suit or proceedings. *
The word "thereafter" is merely indicative of sequence of the second obliga-
tion to deposit the future rents; it is certainly not suggestive of the fact that
c if the first obligation for any reason cannot be complied with then the occasion
to comply with the second obligation does not arise or that it automatically
comes to an end. It would be unthinkable that that could be the intention of
the legislature.
-f
The tenant's liability to deposit the rent for any of the periods, noted
D above, in the Court does not depend upon and has no relation to depositing
the rent for any of the earlier periods. When the rate of rent payable each
. month and the quantum of arrears of rent are admitted, no problem arises in
complying with Section 13(1) of the Act. Difficulty may, however, arise in
complying with the two requirements of sub- section (1) of Section 13, noted
E above, when dispute is raised by the tenant with regard to either the amount "'"
of rent payable by him or with regard to the person who is entitled to receive
the rent. ..
Sub-section (2) of Section 13 of the Act takes care of the situation when
there is dispute as to the amount of rent payable by the tenant and directs
F fixation of a reasonable provisional rent in relation to the accommodation, 1'-.
which will be a summary inquiry, by the Court. The dispute may arise in any
of the following circumstnces:

G
(i)

(ii)
rate of rent and the quantum of arrears of the rent are in dispute
though not the period for which arrears of rent are due;

rate of rent and the quantum of arrears of the rent are in dispute
-
-1----
and also the period for which it is due;

(iii) rate of rent is admitted but the quantum of arrears of rents or/
and the period for which it is due are disputed.
H
JAMNALAL v. RADHESHYAM [SYED SHAH MOHMMED, J.) 145

A careful reading of the sub-section shows that the Court is enjoined to A
fix a reasonable provisional rent, in relation to the accommodation, to be
deposited or paid in accordance with the provision of sub-section (1) if there
is a dispute as to the amount of rent pay~ble by the tenant. The clause 'the
court shall' fix a reasonable provisional rent in relation to the accommodation
clearly indicates that 'any dispute as to the amount of rent' is confined to a
B
dispute which depends on the rate of rent of the accommodation either because
no rate of rent is fixed between the parties or because each of them pleads a
different sum. Where the dispute as to the amount of rent payable by the tenant
has no nexus with the rate of rent, the determination of such dispute in a
summary inquiry is not contemplated under sub-section (2) of Section 13.
Such a dispute has to be resolved after trial of the case. Consequently, it is only c
when the obligations imposed in Section 13(1) cannot be complied with
without resolving the dispute under sub-section (2) of that Section, that
Section 13(1) will become inoperative till such time the dispute is resolved by
the Court by fixing a reasonable provisional rent in relation to the accommo-
dation. It follows that where the rate of rent and the quantum of arrears of rent o·
are disputed the whole of Section 13(1) becomes inoperative till provisional
fixation of monthly rent by the Court under sub-section (2) of Section 13,
which will govern compliance of Section 13(1) of the Act. But where rate of
rent is admitted and the quantum of the arrears of rent is disputed, (on the plea
that the rent for the period in question or part thereof has been paid or
otherwise adjusted), sub-section (2) of Section 13 is not attracted as determi- E
nation of such a dispute is not postulated thereunder. Therefore, the obligation
to pay/deposit the rent for the second and the third period aforementioned,
referred to in Section 13(1), namely, to deposit rent for the period subsequent
to the notice of demand and for the period in which the suit/proceedings will
be pending that is (future rent) does not become inoperative for the simple F
reason that Section 13(2) does not contemplate provisional determination of
amount of rent payable by the tenant. As resolution of that category of dispute
does not fall under Section 13(2) the tenant has to take the consequence of non
payment/deposit of rents for the said periods. If he fails in his plea that no
arrears are due and the Court fmds that the arrears of rent for the period in
question were not paid, it has to pass an order of eviction against the tenant G
as no provision of Section 13 of the Act protects him.

Sub-section (3) of Section 13 of the Act deals with a case where the
dispute is as to the person or persons to whom the rent is payable. If the court
is satisfied that the dispute raised by the tenant in regard to the person or H
146 SUPREME COURT REJ>ORTS [2000] 3 S.C.R.
A persons to whom therent is payable is false or frivolous, sub- section (4) says,
the court in its discretion may order striking out the defence against the
eviction instead and proceed with the hearing of the case. So also sub-section
(6), in the case of non~compliance in depositing or payment of rent of any
amount as required by Section 13(1) of the Act, enables the court to order
striking out the defence against the tenant instead and proceed with the hearing
B
of the suit. Sub-section (5) directs that if the tenant makes deposit or payment
as required under sub~section (1) or sub-section (2) of Section 13 of the Act,
the Court is barred from malting a decree or order for the recovery of the
possession of the accommodation on the ground of default in payment of rent
by the tenant but the court may allow such cost as it inay deem fit to the
c landlord.

Where the rate of rent payable by the tenant for the accommodation is
not in dispute and the quantum of arrears of rent is not paid/deposited either
because the tenant pleads that he has paid the arrears of rent or adjusted the
same towards the amounts payable by the landlord or in the discharge of his
D
liability, the tenant succeeds or fails on his plea being accepted or rejected in
that behalf by· the court. In such a case sub· section (2) is not attracted because
the plea taken by the tenant has to be adjudicated by full fledged trial and not
in a summ:ary inquiry postulated for fixing a reasonable provisional rent in
relation to the acconltn.odation in question. This being the position a tenant
E takes the risk of suffering an order of evfotion by raising a dispute in regard
to the amount of rent payable by him while admitting the rate of rent and not
making payment or deposit under sub-section (1) b~cause where the dispute
raised by the tenant is outside. the ambit of sub-section (2), sub-section (1) of
Section 13 of the Act does not become inoperative.
F
There can no debate on the proposition that the tenant is relieved of the
consequences of default in payment of rent on his paying/depositing the rent
under sub-sectipn (1) at the rate last paid or at the rate fixed provisionally
under sub-section.(2} of Section 13 of the Act but if the tenant takes a false
or frivolous. plea in regard to the. amount of rent payable by him, which does
G not involve fixation of provisional rent under Section 13(2), he runs the risk
of suffering an order of eviction either under sub-section (6) of Section 13 or
-
after trial unde(Section 12(1)(a) of the Act. We are not persuaded to accept
. the contention of the learned Amicus ·that the legislature, having provided a
ground for eviction of a tenant under Section 12(1)(a) of the Act, nor merely
H diluted but has nullified its effect by enacting Section 12(3) and sub-sections
~-

JAMNALAL v. RADHESHYAM [SYED SHAH MOHMMED, J.] 147
-l-' (2) and (5) of Section 13 of the Act. A liberal but hannonious construction A
of clause (a) of sub-section (1), sub-section (3) of Section 12 and sub-sections
(1), (2), (5) and (6) of Section 13 does not lead us to the conclusion that clause
(a) of sub-section (1) of Section 12 has in effect been rendered illusory.

Now, we shall adve1t to the cases cited at the bar which are decided by
the High CoU11 of Madhya Pradesh on the interpretation of the above-said B
provisions.

In Finn Ganeshram HarvUas and Another v. RamachandraRao (1970)
MPLJ 902 a Division Bench of the Madhya Pradesh High Court had to
consider the effect of Section 12(3) and Section 13(2) of the Act. Tue Division
Bench has held, interalia, that every kind of dispute as to the amount of rent
c
payable by the tenant is within the scope of Section 13(2) of the Act. This,
in our view, is too broad a proposition to merit acceptance. With regard to the
word "thereafter" in second part of sub- section (1) of Section 13, the Division
Bench rightly concluded that it meant "after one month of the service of the
writ of summons on the tenant", or, where time is extended, "after the time D
so extended" under the first part of sub-section (1).

In Jivrambhai and Another v. Amarsingh, (1972) MPLJ 785 the
observation of the Division Bench of the Madhya Pradesh High Court that as
soon as the dispute under Section 13(2) of the Act is raised and it is brought
to the notice of the Court the operation of Section 13(1) of the Act gets E
arrested so far as the amount to be deposited in Court is concerned and it
remains in suspense until provisional rent is fixed, is also too wide a statement
to be correct.

In Chhogalal Jankilal v. Idol of Bhagwan Shri Satyanaraya through
Kamaldas Guru, Pujari, (1975) MPLJ 657 the landlord claimed that the
F
defendant-appellant was the tenant on a monthly rent of Rs. 5 and that he
failed to pay the arrears of rent within two months from the service of the
detnand notice. In the written statement the tenant pleaded that the monthly
rent was initially Rs. 2 which was first enhanced to Rs. 2-8-0 per month and
then to Rs. 3 per month. He alleged that there was never any agreement to pay G
the rent of Rs. 5 per month and pleaded that on receiving notice of demand
··+ he sent all the arrears at the rate of Rs. 3 per month and deposited subsequent
rent of Rs. 132 calculated at the rate of Rs. 3 per month in the Court of the
Rent Controller on the date of his filing the written statement. The trial court,
howeve1~ did not fix any reasonable provisional rent as required by sub-section H
148 SUPREME COURT REPORTS [2000] 3 S.C.R.
A (2) of Section 13 of the Act and the tenant continued to deposit in the court "/.
rent at the rate of Rs. 3 per month. After trial the court found that the rent of
the house was Rs. 5 per month, as pleaded by the landlord, and not Rs. 3 per
month as alleged by the tenant and ordered eviction of the tenant under Section
12(1)(a) of the Act. The Appellate Court held that in depositing rent at the rate
of Rs. 3 per month, during the pendency of the suit, there was compliance of
B
Section 13(1) of the Act by the tenant but not during the pendency of the
appeal as the trial court had found that the rate of rent was Rs. 5 per month;
therefore, he was not entitled to the protection of Section 12(3) and Section
13(5) of the Act and, therefore, he was liable to be evicted. In second appeal,
a learned Single Judge of the High Court proceeded on the assumption that
C on a dispute being raised by the tenant under sub-section (2) of Section 13 of
the Act, the obligation to deposit the rent under Section 13(1) remained
· suspended until the court fixes the provisional rent; the tenant will not be in
default if no provisional rent is fixed by the court as the operation of sub-
section (1) of Section 13 of the Act was arrested and that assumption was
D endorsed by the Full Bench of the Madhya Pradesh High Court. On a
difference of opinion between two Division Benches of that High Court, the
question referred to the Full Bench was, "whether it is sufficient for the tenant
to raise the dispute in his written statement or whether he must make an
application inviting the attention of the Court to the specific dispute and ask
the Court to fix the provisional rent." It, however, answered that question as r
E follows: "The operation of sub-section (1) of Section 13 of the Madhya
Pradesh Accommodation Control Act, 1961, is arrested when a dispute as is
referred to in sub-section (2) is raised by the defendant-tenant in his written
statement and it is not necessary that he should make an application inviting
the attention of the CoUit to the specific dispute and asking the Court to fix
F provisional rent." Apart from the fact that the decision of the Full Bench that
when a dispute is raised under Section 13(2) of the Act, the operation of
Section 13(1) is arrested, is obiter dicta, for the aforementioned reasons we
cannot approve the same.

lnAnandilal v. Shiv Dayal Pandey (1977) MPLJ 822, for non-payment
G of rent within two months from the service of notice of demand, the landlord
terminated the tenancy. The tenant disputed that he was in arrears of rent. The
trial court found that the tenant had committed default in payment of rent and
decreed the suit. However, the Appellate Court reversed the decree holding
that the landlord failed to prove that the tenant was in arrears of rent. In view
of the difference of opinion between Vyas, J., in Jhammanlal's case [Second
H
JAMNALAL v. RADHESHYAM [SYED SHAH MOHMMED, J.] 149
Appeal No.179of1970 decided at Gwalior (M.P.) on 5-8-1976] who, relying A
on the Full Bench decision (supra), held that on raising of dispute by the tenant
the operation of the whole of Section 13(1) of the Act was arrested and Oza,
J., in Dewahai's case (1977) MPLJ 446 opining that only that part of Section
13 (1) of the Act which is subject matter of dispute raised under Section 13(2)
of the Act, will be arrested and that compliance of the remaining part of the
B
provision by the tenant is mandatory, two questions were referred to Division
Bench. The Division Bench answered the questions referred to it as follows:-

"(1) Even when there is no dispute with regard to the rate of rent and
the dispute is only with regard to the arrears of rent, on such a dispute,
till the Court passes an order under sub-section (2) of Section 13 of c
the Act is arrested. To be more specific, the liability of the tenant to
deposit monthly rent for the preceding month under the second part
of Section 13(1) does not commence until an order under sub- section
(2) of Section 13 is made.

(2) The order contemplated under sub-section (2) of Section 13 of the D
Act is the one with regard to that part of deposit under Section 13(1),
for which there is a dispute."

From what is stated above, it is evident that answer to question No. I,
recorded by the Division Bench of the High Court, does not lay down correct
law. The Division Bench is also not correct in holding, 'The key to the E
problem is found in the word "thereafter" (i.e. after that) necessarily refers to
the tenants' liability becoming operative under the first part of Section 13(1).
If that liability is arrested, the liability under the second part does not
commence, because the liability under the second part commences only
"thereafter" which means when the liability of the tenant under the first part F
is ripe for performance'.

In the instant case, the findings of the courts below are : that the tenant
did not pay the rent for. the period from March to July 1976; indeed, the
finding of the trial Court which was confirmed by the Appellate Court is that
the tenant forged receipts (Exs.:Dl to D4) for the said months and that he had G
committed default in payment of rent. It appears that on the application of the
-+ landlord the trial court fixed provisional rent @ Rs. 60 per month and left the
question of arrears of rent to be decided on trial. Consequently, non-
determination of provisional rent by the trial Court under sub-section (2) of
Section 13 of the Act becomes inconsequential. There is thus non-compliance H
150 SUPREME COURT REPORTS [20d0] 3 S.C.R. •
A of Section 13(1) of the Act and the tenant is not entitled to the benefit of
Section 13(5) read with Section 12(3) of the Act.

Inasmuch as the order impugned in this appeal is passed by following
the judgment of the High Court in Anandilal's case which we have not
approved, the impugned order of the High Court passed on December 16,
B 1997, cannot be sustained. Accordingly, the appeal is allowed. and the
impugned order is set aside. In the result, the eviction petition, filed by the
appellants, stands allowed.

The respondent-tenant is directed to handover vacant possession of the
suit accommodation to the landlords on or before October 31, 2000, on his
c giving a usual undertaking within four weeks from today. He shall pay to the
landlords or deposit in the trial court the arrears of rent, if any due, within fotir
weeks from today and continue to pay/deposit the monthly rent on or before
15th of each month, in advance, during the said period. In default of
compliance of any of the aforesaid conditions, the landlords will be at liberty
D to have the decree of eviction executed in accordance with law. There shall
be no order as to costs.

Before parting with the case, we must record our appreciation for the
tremendous work done by Mr.A.M. Khanwilkar. He studied the case thor-
oughly, searched the case law on the subject exhaustively and presented the
E case of the respondent effectively. We acknowledge his.assistance with thanks.

N.J. Appeal allowed.