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Civil Property & InheritanceSupreme Court of India

K. Subramaniam (Died) Through LRs vs M/S Krishna Mills Pvt. Ltd.

Not available · 2025 INSC 1309Decided 11 Nov 2025
Not available
Justice Dipankar Datta · Justice Manmohan

Background

The appellants are the sons and legal heirs of a deceased lessee who had taken godown/building space totalling 15,500 sq. ft. on lease from the respondent, M/s Krishna Mills Pvt. Ltd., in Coimbatore. A dispute arose over the actual monthly rent (the landlord claimed Rs. 48,000, the lessee claimed Rs. 33,000), and the Rent Controller fixed a much higher "fair rent" of Rs. 2,43,600 per month. The lessee appealed that fair-rent order but never sought a stay of it, and meanwhile the landlord filed for eviction on the ground of wilful default in paying the fixed fair rent. The Rent Control Appellate Authority ordered eviction, which the Madras High Court upheld in its revisional jurisdiction, prompting the heirs' appeal to the Supreme Court.

Decision Breakdown

The Supreme Court held that because the lessee/appellants had challenged the fair-rent order in appeal but never obtained a stay of it, that order remained operative and binding on them, obliging them to pay rent at the fixed higher rate: merely having a pending appeal does not excuse non-payment when no stay has been secured. The Court rejected the argument that the finality of the fair-rent determination could be used as a shield while simultaneously withholding payments due under it. It agreed with the High Court that the instances of default were established and that the High Court, exercising limited revisional jurisdiction, had correctly declined to re-examine the concurrent factual findings of default. The appeal was dismissed and the eviction order upheld, though the appellants were given six months to vacate on filing the usual undertakings, failing which the landlord could pursue execution.

Lesson Learnt

Filing an appeal against a rent-fixation or similar order does not by itself suspend the obligation to comply with it: a tenant (or their heirs) who wants relief from an order pending appeal must actually apply for and obtain a stay; otherwise, continued non-payment at the order's rate can be treated as wilful default justifying eviction.

K. Subramaniam (Died) Through LRs vs M/S Krishna Mills Pvt. Ltd. – Legal Case Shots | LegalAware