SMT. VIJAY LAXMI GANGALversusMAHENDRA PRATAP GRAG

                                                                             583

                   SMT. VIJAY LAXMI GANGAL
                                                                                    A
                                       v.

                    MAHENDRA PRATAP GRAG

                                May8, 1985

             [S. MuRTAZA FAZAL ALI, A. VARAoARAJAN AND
                        RAUGANATH MISRA, JJ]

      The Uttar Pradesh Buildings (Regulation of Letting, l~enl and Evictiition)
Act, 1972.
                                                                                    c
        Section 20 (4) Suit for eviction of tenant for arrears of rent-Quantum of
rent in dispute-Failure of tenant to prove his case-Deposit by tenant of rent at
rate claimed by laud/ord-Such 'deposit' whether an unconditional tender-
Discretionary relief-Tenant whether entitled to claim.

        The appellant-landlady filed a suit for recovering possession from the      D
respondent-tenant on the allegation that the demised property was situated
beyond the municipal limits of the town, and was exempt from the provisions
of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and
Eviction), Act 1972, that it was let out to the respondent on a rent of l\.s. 360
per rnengem, that the tenancy had come to an end by efflux of the time fixed in
the rent note, and that as the respondent was in arrears of rent to the extent of
Rs. 3,960 she was entitled to recover possession of the premises with the arrears
                                                                                    E
of rent. The respondent oppose the suit contending that the property was
situated within three kilometres of the muncipal lin1its of the town and was,
therefore, governed by the provisions of the Act, denied that the rent was
Rs. 360 per mensem and contended that it was only Rs. 125 per mensem, denied
that hr had executed the rent note, and the tenancy had come to an end by
efflux of time, that the amounts claimed as arrears of rent and mesne               F
profits were wrong and excessive, that the notice to quit was invalid in
law and that the suit was barred by the provisions of s. 20 of the Act.
The Additional District Judge who tried the suit exercising jurisdiction
as a Judge of Small Causes Court, found that the property was situate
within three kilometrC' of the municipal limits and was governed by the pro-
visions of the Act, that the tenancy for the period of 11 months under the rent     G
note had come to an end by efllux of time, and the parties were governed by
 it, and that the suit was governed by the provi~ions of s. 20 of the Act. On the
 question whether the respondent was liable for eviction it was held that though
 the respondent had deposited the full amount of rent as claimed at Rs. 360 per
 mensem together with damages for use and occupation, interest and costs as
 required bys. 20(4) of the Act amounting to Rs. 7,490 a day after the first        H
 hearing date fixed for the suit, as the respondent had contended in the written
 statement that the rent was Rs. 125 per mensem the deposit of Rs. 7,490
 towards arrears, interest and costs was not unconditional and therefore invalid
    584                      SUPREME COURT REPORTS              [1~8Sl SUPPL. s.c.R.

     ands. 20(4) of the Act did not help the respondent.   The suit was accordingly
A    decreed for eviction with arrears of rent and mesne profits.

           The respondent filed a revision petition and a Division Bench of the
    High Court noticed that one of the conditions of s. 20(4) of the Act was that
    the tenant should unconditionally pay or deposit the entire amount due together
    with interest and costs, and that s. 20(6) says that any amount deposited under
    s. 20(4) shall be paid to the landlord without prejudice to the pleadings of the
B   parties, and that in the instant case the desposit would not be a conditional
    deposit mtrely because the respondent had contended in the written statement
    that the rent was Rs. 125 per mensem and not Rs. 360 per mensem as alleaed
    in the plaint. The civil revision petition was allowed and the suit was dismissed
    with costs.

c          Dismissing the appeal,

            HELD : 1. The suit in the instant case, is not based on any of the
    grounds mentioned in s. 20(2) of the Uttar Pradesh Urban Buildings
    (Regulation of Letting, Rent and Eviction) Act, 1972 and though the respondent
    is alJegcd to have been in arrears of rent to the ex.tent of Rs. 3,960 there is no
    aUegation in the plaint that he is in arrears of rent for not less than four months
D   and had failed to pay the same to the appellant within one month from the
    date of service upon him of a notice of demand, which is the ground mentioned
    in clause (a) of s. 20(2) of the Act. [588 G-HJ

           2. No interference with the decision of the High Court is called for.
    The District Judge should have normally disn1issed the suit for want of
E   jursidiction in view of s. 20(1) of the Act on his finding that the Act is
    applicable to the premises. It is not known why he did not do so, but on the
    other hand proceeded to hold that the deposit by the respondent is not
    unconditional as required bys. 20(4) of the Act and ordered his eriction on
    that basis. [589 A-BJ


F          3. It is not possible to construe s. 20(4) in the manner done by the
    District Judge as that would amount to foreclosure of any defence regarding
    the quantum of rent even in cases where the amount alleged by the landlord
    is more than the actual rent agreed to between the parties. [589 CJ

           In the instant case, it had been found by the District Judge that the
    arrears of rent at the rate claimed in the plaint together with interest and costs
G   had been deposited within the time mentioned ins. 20(4) of the Act. Merely
    because the tenant had failed to prove his case that the rent was only Rs. 125
    per menscm and not Rs. 360 per mensem, the discretionary relief could not
    be denied to him. [590 E; 591 A]

H         Manga/ Sen v. Kanchhid Mal, [198211 SCR 331nt336 distinguished.

          4. The Act is a social piece of legislation which leans in favour of
    tenants. It is not possible to lay down any broad and general proposition that
             V.t. GANGAL V, M.P. GARG (Varadarajan, J.)                   SSS
the diseretionary relief should be denied to the tentant in all cases where he
fails to prove his case regarding the quantum of rent even though he had
deposited the rent at the rate claimed by the landlord in the plaint together
with interest and costs within the time as required by section 20(4) of the
Act. (590 H; 591 BJ


      CtVlL APPELLATE JURISDICTION: Civil Appeal No. 10085 of
1n1                                                                              B

     From the Judgment and Order dated 15.9.1982 of the
Allahabad High Court in Civil Revision No. 332 of 1981.

      S.N. Kacker and R.B. Mehlotra for the Appellant.                           c
      Aruneshwar Gupta and B.B. Sharma for the Respondent.

      The Judgment of the Court was delivered by
                                                                                 D
       VARADARAJAN, J. The short point arising for consideration in
this appeal by srecial leave filed against the decision of a Division
Bench of the Allahabad High Court in Civil Revision No. 332 of
1981 turns upon the interpretation of s. 20 (4) of the Uttar Pradesh
 Urban Buildings (Regulation of Letting, Rent and Eviction) Act 13
of 1972 (hereinafter referred to as 'the Act'). The appellant-land-              E
lady filed the suit on 6.8.1973 for recovering possession from the
respondent-tenant of a portion of premices situate at Bhau Ka Nagla,
Agra Road, Mauza Dholpura on the allegation that it had been let
to the respondent on a rent of Rs. 360 per mensem and that the
tenancy has come to an end by effiux of time fixed in the rent note
on the expiry of 30. 6.1973. She alleged in the plaint that the
                                                                                 F
demised property is situate beyond the municipal limits of Ferozabad
and is intended for use as a factory and is exempt from the provision
 of the Act and that the respondent is in arrears of rent to the extent
 of Rs. 3, 960 for the period from 1.8.1972 to 30.6 1973 and she is
entitled to recover possession of the premises together with arrears             G
 of rent of Rs. 3 ,960 at Rs. 360 per mensem for the said period and
 mesne profits at Rs. 720 for the subsequent period from 1.7.1973
 at Rs. 20 per day.

                                                                                 H
       The respondent opposed the suit contending that the property
is situate within three kilo metres of Ferozabad municipal limits and
was not a factory when it was let out and that it is governed by the
     586                   SUPREME COURT REPORTS         (198SJ SUPPL. S.c.l\.

      provisions of the Act. He denied that the rent is Rs. 360 per mensem
A     and contened that it is only Rs. 125 per mensem and that the tenancy
     includes a vacant land shaded green and yellow in the plan filed with
     the plaint which according to the plaint does not form part of the
     lease. He denied that he had executed the rent note mentioned in
     the plaint and that the vacant land shaded green and yellow in the
B    plaint plan had not been leased to him. He further denied that the
     tenancy has come to an end by efllux of time and contended that the
      amounts claimed as arrears of rent and mesne profits are wrong and
     excessive and that the notice to quit is invalid in law as it excludes
     the vacant land shaded green and yellow in the plaint plan which
     also is the subject matter of the lease. Finally he contended that
c    the suit is barred by the provisions of s.20 of the Act sub-section (1)
     whereof says that save as provided in sub-section (2), no suit shall be
     instituted for the eviction of a tenant from a building notwithstanding
     the determination of his tenancy by efflux of time or on the expira-
     tion of a notice to quit or in any other manner.
D
             The learned Fourth Additional District Judge, Agra who tried
      the suit exercising his Jurisdiction as a Judge of Small Causes Court
      found on 19.7.1975 that he had jurisdiction while recording findings
      on the point of jurisdiction tried as preliminary issue, and he held
      that though admittedly even the vacant land marked green and yellow
E     in the plaint plan had been originally leased upto 27.7.1972 there-
      after only the red marked portion had been leased on a rent of Rs.
      360 per mensem under the rent note (paper No. 18A) the execution
      whereof has been denied by the respondent, excluding the green and
      yellow marked portion. On the basis of that unregistered rent note,
r     (paper No. 18A) he found that the rent is Rs. 360 per mensem,
      rejecting the respondent's case that the old rent of Rs. 125 per mensem
      continued even after the dissolution of the partnership to which the
    · premises had been leased earlier.


G           The respondent admitted that though the property is situate
     outside the Ferozabad municipal limits it is situate within three kilo
     metres from those limits and is therefore governed by the provisions
     of the Act while the appellant denied that it is situate within three
     kilo metres. The learned District Judge found on the evidence
H    that the property is situate within two kilo metres of the municipal
     limits and falls within the exception and is governed by the provisions
     of the Act. He found that the trnancy for the period of 11 months
     under the rent note (paper No. !SA) had come to an end by efllux of
             V.L. GANGAL v. M.P. GARG (Varadarajan. J.)              587

time and the parties are governed by it and that the suit is, however,
governed by the provisions of s.20 of the Act.                              A

       However, the learned District Judge .considered the question
whether the respondent is liable for eviction in this suit and found
that the appellant had served notice of demand (paper No. 35C)
on the respondent and he failed to pay, the rent claimed by the             B
appellant and he is as such liable to be eYicted under s.20 of the
Act .. But the respondent had deposited the full amount of rent as
claimed at Rs. 3f0 per mensem together with damages for use and
occupation, interest and costs as required by s.20 (4) of the Act on
31.10.1973, a day after the first hearing date 30.10.1973. The
learned District Judge found that the sum of Rs. 7,490 was tendered         c
in court on 30.10.1973 and passed by the court on that day
and deposited into the bank on 31.10.1973 and that the
tender made on 30.10.1973 was valid and the payment must be
deemed to have been made on 30.10.1975 itself. But he accepted
the argument advanced on behalf of the appellant that because the
respondent had contended in the written statement that the rent is
                                                                            D
Rs. 125 per mensem and it was rejecte~ by the court and it was
found that the rent is Rs. 360 per menscrn the deposit of Rs. 7,490
towards arrears of rent calculated at Rs. 360 per mensem together
with interest and costs was not unconditional and therefore invalid
and s.20 (4) of the Act does not help the. respondent. Jn that view         E
 the learned District Judge decreed the suit for eviction with arrears
of rent and mesne profits at Rs. 360 per lnensem from 1.8.1972 and
ordered credit being given for the amount,deposited by the respondent
 towards the amount payable under the decree and granted four
months time for the respondent to vacate' the premises.
                                                                            F
       In C.R.P. No. 332 of 1981 filed by .the respondent against the
Judgment of the trial court a Division Bench of the High Court noti-
 ced that one of the conditions of s.20(4) t>f the Act is that the tenant
 should unconditionally pay or deposit th~ entire amount due together
with interest and costs and that s.20 6) says that any amount depo-         G
sited under s.20( 4) shall be paid to the' landlord without prejudice
to the pleadings of the parties and subje.;)t to the ultimate decision in
the suit, and they have observed that the submission made before
them on behalf of the appellant that the deposit to be unconditional
                                          1




must be on acknowledgement of the liaqility for rent as claimed by          H
the landlord if accepted would render the provisions in s.20(6) of the
Act nugatory. They have observed that .if the tenant makes a deposit
                          SUPilEMl! COURT REPORts      (1985) SUPPL, s.c,it

    with a condition that it shall not be paid to the landlord until the suit
A   is decided it would be a conditional deposit. They have found that
    in the present case the deposit was not conditional merely became
    while depositing the amount inclusive of rent at the rate of Rs. 360
    per mensem as claimed in the plaint the respondent had contended
    in the written statement that the rent is Rs. 125 per mensem and not
8   Rs. 360 per mensem and that pleading in the written statement that
    the rent is Rs. 12 S per mensem and not Rs. 360 per mensem does
    not make the deposit conditional. In that view the learned Judges
    allowed the civil revision petition and dismissed the suit with costs
    in both the courts.

c          The findings dated 19.7.1975 recorded by the learned District
    Judge on the preliminary issue holding that he had jurisdiction to
    entertain the suit is not available in the records produced in this
    Court. Therefore, it is not known for what reason the learned District
    Judge held that he had jurisdiction to entertain the suit. The appel-
D   lant came forward with the suit for recovering possession of the
    premises together with arrears of rent and mesne profits on the
    allegation that the tenancy under the rent note (paper No. !SA) was
    for a period of only 11 months and that it had come to an end by
    efflux of time and the premises was intended for use as a factory and
    the Act is not applicable thereto. On the other hand, the respon·
E   dent's defence was that the property was situate within three kilo
    metres of Ferozabad municipal limits and is governed by the provi-
    sions of the Act and that the civil suit for recovery of possess ion \lf
    the property is not maintainable. The learned District Judge accep-
    ted the respondent's contention on the question of applicability of
F   the provisions of the Act to the premises in que;tion on the ground
    that it is located within two kilo metres of Ferozabad municipal
    limits. S.20(1) of the Act lays down that save as provided in sub-
    section (2), no suit shall be instituted for eviction of a tenant from a
    building, notwithstanding the determination of his tenancy by efllux
    of time or on the expiry of a notice to quite or in any other manner.
G   The present suit is not based on any of the grounds mentioned in s.20
    (2) of the Act and though the respondent is alleged to have been in
    arrears of rent to the extent of Rs. 3, 960/- there is no allegation in
    the plaint that he is in arrears of rent for not less than four months
    and had failed to pay the same to the appellant within one month
H   from the date of service upon him of a notice of demand, which is the
     ground mentioned in clause (a) of s.20(2) of the Act. In these
             V.L. GANGAL v. M.P. GARG (Varadaraja11, J.)              589

circumstances, the learned District Judge should have normally dis-
missed the suit for want of jurisdiction in view of s.20(1) of the Act      A
on his finding that the Act is applicable to the premises. It is not
known why he did not do so, but on the other hand proceeded to
hold that the deposit by the respondent is not unconditional as requir-
ed by s.20(4) of the Act and ordered his eriction on that basis.

      We entirely agree with the learned Judges of the High Court
                                                                            B
that the deposit of the amount on the first hearing date,
made up of rent at the rate of Rs. 360 per mensem as claimed
in the plaint and interest and costs could not be said to be not
unconditional merely bec1use the respondent had contended in the
written statement that the rent was only Rs. 125 per mensem and he          c
did not succeed in proving it at the trial. It is not possible to
construe s.20(4) in the manner done by the learned District Judge as
that would amount to foreclosure of any defence regarding the
quantum of rent even in cases where the amount alleged by the
landlord is more than the real rent agreed between the parties.
                                                                            D
      In this connection Mr. Kacker, learned Counsel appearing for
appellant relied strongly upon the following observation made by
Balakrishna Eradi, J, speaking for himseir and Pathak and Venkata-
ramiah, JI. in Mangat Sen v. Kanchhid Mal('):

           "The provisions of sub-section (4) will be attracted
      only if the tenant has, at the first bearing of the suit,
                                                                            •
      unconditionally paid or tendered to the landlord the
      entire amount of rent and damages for use and occupa-
      tion of the building due from him together with interest
      thereon at the rate of nine per cent per annum and the
      landlord's costs of the suit in respect thereof, after deduc-
      ting therefrom any amount already deposited by him
      under sub-section (!) of section 30. There is absolutely
      no material available on the record to show that the
      alleged deposit of Rs. 1,980 was made by the tenant on                G
      the first date of bearing itself and, what is more impor·
      tant, that the said deposit was made by way of an uncon-
      ditional tender for payment to the landlord. The deposit
      in question is said to have been made by the apppellant
      on January 25, 1974. It was only subsequent thereto                   H
     (I) [198211 S.C.lt. 331 at 336.
      590                   SUPREME COURT REPORTS          [1985] SUPPL. s.c.R.

             that the appellant filed his written statement in the suit.
A
             It is noteworthy that one of the principal contentions
             raised by the appellant-defendent in the written statement
             was that since he had stood surety for the landlord for
             arrears of sales-tax, there was no default by him in the
            payment or rent. In the face of the said plea taken in the
B            written statement, disputing, the existence of any arrears
            of rent and denying that there had been a default, it is
            clear that the deposit, even it was made on the date of
            the first hearing, was not an unconditional tender of the
            amount for payment to the landlord. Further, there is
            also nothing on record to show that what was deposited
c           was the correct amount calculated in accordance with the
            provisions of Section 20(4). In these circumstances, we
            hold that the appellant has failed to establish that he has
            complied with the conditions specified in sub-section (4)
            of Section 20 and hence he is not entitled to be relieved
D           against his liability for eviction on the ground set out in
            clause (a) of sub-section (2) of the said Section."

          The above principle cannot apply to the facts of the present
    case, for in that case it was not clear whether the deposit of the
E   correct amount was made within the time fixed in s.20(4) of the Act
    whereas in the present case it has been found by the learned District
    Judge that the arrears of rent at the rate claimed in the plaint
    together with interest and costs had been deposited within the time
    mentioned in s 20 (4) of the Act.

F           Mr. Kacker next drew our attention to the language used in
     s.20( 4) and s.39 of the Act and submitted that whereas the provisions
    of s.39 are mandatory the Rent Controller has a discretion in s.20(4)
    in lieu of passing a decree for eviction on the ground of failure to
    deposit the arrears, interest and costs within the period mentioned
G   in s.20(4) to pass an order relieving the tenant against his liability for
    eviction on that ground and that the High Court exercising revisional
    jurisdiction under s.115 C.P.C. should not have interfered with the
    discretion exercised by the learned District Judge in ordering eviction
    and set aside that order especially in view of the fact that the respon·
H   dent had failed to prove that the rent was only Rs. 125 per mensem
    and not Rs. 360 per mensem. We do not agree. The Act is a social
    piece of legislation which leans in favour of tenants. Merely because
                 V.L. OANOAL v. M.P. GARO (Varadarajan, J.)             591

    the tenant had failed to prove his case that the rent was only Rs. 125
     per mensem and not Rs. 360 per mensem, the disc:retionary relief           A
    could not be denied to him even though he had deposited the arrear·s
    of rent at the rate claimed by the landlord in the plaint together with
    interest and costs within the time mentioned in s.20( 4) of the Act.
    It is not possible to lay down any broad and general proposition
    that the discretionary relief should be denied to the tenant in all cases
    where he fails to prove his case regarding the quantum rent even
                                                                                8
    though he had deposited the rent at the rate claimed by the landlord
    in the plaint together with interest and costs within the time as requi-
    red by s.20(4) of the Act.

          For the reasons mentioned above we are of the opinion that no         c
    interference with the decision of the High Court is called for in this
    case. The appeal fails and is dismisse with costs.

    N.V.K.                                                 Appeal dismissed.




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