DINA NATH (D) BY LRS. &ANR. versus SUB HASH CHAND SAINI & ORS.
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B [2014] 14 S.C.R. Β·1564 DINA NATH (D) BY LRS. &ANR. v. SUB HASH CHAND SAINI & ORS. (Civil Appeal No,4563 of 2014) APRIL 16, 2014 [T.S. THAKUR AND JAGDISH SING!i KHEHAR, JJ.] Delhi Rent Control Act, 1958 - s.15(7) -Application C under - By landlord - For striking out the defence of the tenants taken by them in eviction proceedings - On the ground that there was delay in depositing the future rent as directed by Rent Controller- Propriety of- HELD: In view of difference of opinion, matter referred to three Judge Bench - D Per Khehar, J.: - Appeal liable to be dismissed - The discretion u/s. 15(7), in the facts of the case, was rightly exercised by the competent authority by striking out the defence of the tenant - Per Thakur, J.: AppealΒ· lia~le to be allowed - The facts of the case do not suggest any E negligence, defiance or contumacious non-payment of the amount due to the landlord, to render the tenant defenceless. Referring the matter to three Judge Bench, the Court F Held: Per Khehar, J. (Dismissing the appeal): 1. The power vested uls. 15(7) of the Rent Act to strike off the defence of a tenant, is discretionary and G not mandatory. Therefore every violation in implementation of the direction(s) issued by a Rent Controller u/s. 15(1) of the Rent Act, will not ipso facto lead to the striking out the defence of a tenant. A Rent Controller must exercise his discretion, keeping in mind H 1564 DINA NATH (D) BY LRS. & ANR. v. SUBHASH CHAND 1565 SAINl&ORS. the nature of the non-compliance. If the non-compliance A is not serious, or is based on good reason, a Rent Controller would not strike off the defence of the tenant. Β· Only when the non-compliance of the order passed by the Rent Controller u/s. 15(1) of the Rent Act, depicts irrational disregard to the order, or when the non- B compliance is repeated, or when no justification has been expressed for the same, or for such other similar reason(s), the discretion vested in s.15(7) of the Rent Act, would entitle the Rent Controller to strike off the defence of a tenant. Judicial discretion exercised in such a matter C mu.st be tempered with self-restraint, keeping in mind, that striking out a tenant's defence is an exceptionally harsh step, which ought not be taken in a routine and casual manner. The Court must carefully evaluate the D facts of the given case, before exercising its discretion. [Para 11][1587-D-H; 1588-A) 2. Payments made by the appellants-tenants, for future rent payable upto 15.4.2009 (for the month of March, 2009), after the date of filing of the application E are not relevant, for determining the issue in hand i.e. striking out the defence of the tenants. The date on which the Rent Controller passed the order striking out the defence of the appellants-tenants, i.e.14.9.2009, has absolutely no nexus to the consideration contemplated F in s.15(7) of the Rent Act. S. 15(7) of the Rent Act does not contemplate condonation of payments made in violation of the directions issued by the Rent Controller, by subsequent payments, even where the tenant accepts to make a voluntary payment, many folds more than what G is due to the landlord. The only exception is when there is a reasonable explanation for delayed payment. [Para 17][1595-D-G] H 1566 SUPREME COURT REPORTS (2014) 14 S.C.R. A 3. In the present case, the appellants treated the directions of the Rent Controller dated 21.4.2008, with absolute casualness. This is not a case of a single lapse, but of persistent repeated and unrelenting default in the payment of future rent, for all the months intervening the B date when the order u/s.15(1) of the Rent Act was passed, and the date when the application u/s. 15(7) was filed by the respondents-landlords. It is not possible to condone such indifference, insensitivity, disinterest and apathy to judicial directions. Judicial discretion in such a matter, C taking into consideration the defaults committed by the appellants-tenants, was legitimately exercised by the Courts below, by striking out the defence of the appellants-tenants. The legislative purpose was, to curb 0 tendencies of tenants, from abusing the legal process. [Paras 16 and 18][1594-F-H; 1595-A-B; 1596-B] E F Miss Santosh Mehta vs. Om Prakash and Ors. (1980) 3 sec 610: 1980 (3) SCR 325; Kam/a Devi vs. Vasdev (1995) 1 SCC 356: 1994 (6) Suppl. SCR 603; Jain Motor Car Co., Delhi vs. Swayam Prabha Jain (1996
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