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Man Singh vs Shamim Ahmad (Dead) Thr. LRs.

Civil Appeal · 2023 INSC 323Decided 5 Apr 2023
Civil Appeal No. 1874 of 2015
Aniruddha Bose · Sudhanshu Dhulia

Background

A shop tenant in Saharanpur, U.P., had been depositing his admitted monthly rent in court after his landlord refused to accept it directly, using a provision (Section 30 of the U.P. Urban Buildings Act) meant for exactly this situation. The landlord later served a formal notice demanding rent at an enhanced (disputed) rate and expressing willingness to receive payment directly, but the tenant continued depositing only the admitted rent in court rather than paying the landlord. The landlord sued for eviction on grounds of rent arrears, and won before the trial court, the revisional court and (on this specific point) the Allahabad High Court.

Decision Breakdown

The Supreme Court held that Section 30 only allows a tenant to deposit rent in court for as long as the landlord is refusing to accept it; the moment the landlord sends a notice signalling willingness to accept rent (even if he simultaneously claims a higher, disputed amount), the tenant must go back to paying the admitted rent directly to the landlord, not into court. Since the tenant here kept depositing in court even after receiving such a notice, he failed to pay/tender the rent to the landlord as required, and could not claim protection from eviction. The Court followed a Full Bench ruling of the Allahabad High Court on this exact point and distinguished an earlier Supreme Court decision the tenant relied on, since that case involved a different question (benefit under a different provision for depositing admitted rent before the first hearing) on different fact.

Lesson Learnt

A tenant who has been depositing rent in court because the landlord refused it must switch back to paying the landlord directly as soon as the landlord signals willingness to accept payment, continuing to deposit in court after that point can be treated as a rent default, even if the landlord is separately (and wrongly) demanding a higher rent.

Official source (sci.gov.in)View Judgment (PDF)

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