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SHRI VIDYA PRACHAR TRUST versus PANDIT BASANT RAM

Citation: [1970] 1 S.C.R. 66 · Decided: 21-03-1969 · Supreme Court of India · Bench: M. HIDAYATULLAH · Disposal: Appeal(s) allowed

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Judgment (excerpt)

SHRI VIDY A PRACHAR TRUST 
v. 
PANDIT BASANT RAM 
March 21, 1969 
A 
[M. HIDAYATULLAH, C.J. AND G. K. MITTER, J.) 
B 
Eas/ Punjab Urban Ren/ Res1ric1ion Act, 
1949--S. 13(2)(1)-Evic-
tion for flon-payfnenr of ren1-Deposit1 in court under s. 31 Relief of In-
debtedness Act, 1934-Whetht>r equivalent to tender of renl to landlord. 
The appellant landlord made an application under s. 13 of the East 
Punja!> Urban Rent Restriction Act, 1949 for the respondent's 
eviction 
from cerlain premises on lhe ground that the rent tor the premi!eS from C 
October 1959 to June 1961 had not !>eon paid. 
On the first day of bear-
ing the mpondent appeared and tendered pan of the rent. He claimed 
that he had made two deposits in the court of the Senior Sub-Judge under 
s. 31 of the East Punjab Relief of Indebtedness Act, I 934 and that this 
was a valid tender of the balance rent to the landlord. 
1be Rent Con-
troller decided that the respondent 
was not in default and the appellate 
authority as well as the High Court took the same view. 
On appeal to this Court, 
D 
HELD : The deposit under s. 3 I of the Relief of Indebtedness Act did 
not save !he tenant from the consequences of the default as comtemplated 
by s. 13 of the Urban Rent Restriction Act. (70 FJ 
Section 31 is intended to operate between debtors and creditors where 
diflicully in making the payment, either wholly or partly, may arise nnd 
the dcblor wishes to save himself from interest 
which is running. The E 
Act is nor intended to opcrdtc between landlords and tenants; nor is the 
Court of the Senior Sub-Judge a clearing house for rent. 
Although the 
general words "any person who owes money" may appear to cover the 
case of a tenant, looking at the Act as a whole, the phrase must be read 
to cover cases of debtors and creditors Oetwecn whom there is an agree· 
ment for payment of interest because the deposit is intended to stop in· 
terest from running. 
No interest is agreed to be paid by tenants, at any 
rate, nor ordinarily, and therefore, the section cannot be said to cover a F 
case between a landlord and a tenant. [69 F·HJ 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 499 of 
1966. 
Appeal by special leave from the judgment and order dated 
March 18, 1964 of the Punjab High Court in Civil Revision No. G 
750 of 1962. 
Bishan Narain and Naunir Lal, for the appellant. 
N. N. Keswani, for the respondent. 
Janardan Sharma and S. K. Nandy, for the intervener. 
The Judgmem of the Court was delivered by 
H 
RidayatuDah, C.J. 
This is a landlord's appeal against an 
order of the High Court of Punjab, March 18, 1964, confirming 
PRACHAR TRUST v. BASANT RAM (Hidayatullah, C.J.) 
67 
A the dismissal of his petition for the eviction of the respondent from 
certain premises taken on rent. 
The appellant had made the 
application under s. 13 of the East Punjab Urban Rent Restric-
tion Act, 1949 on the allegation that rent for the premises from 
October 1, 1959 to June 30, 1961 had not been paid. The rent 
of the premises was Rs. 32/8/- and the water connection charges 
B 
were Rs. 2/8/-. On the first date of hearing the tenant appeared 
and tendered Rs. 292/8/- as rent from October 1, 1960 to June 
30, 1961. He also paid Rs. 7/- as interest and Rs. 25/- as costs. 
These amounts were accepted by the landlord without prejudice 
to his claim that the rent for the earlier period had not been paid. 
c 
It appears that the tenant had made two deposits in the Court 
of the Senior Sub-Judge, Ludhiana under s. 31 of the East Punjab-
Relief of Indebtedness Act, 1934 on December 23, 1959 and 
July 18, 1960, the amount being 210/- on each occasion. 
The 
tenant claimed that this was a valid tender of rent to the landlord. 
The Rent Controller, by his order, decided that the tenant was 
D 
not in default and the Appellate Authority and the High Court 
also took the same view. It was held by the Appellate Authority, 
as well as by the High Court, that the deposit under s. 31 of the 
Relief of Indebtedness Act was a valid tender under s. 13 of the 
Urban Rent Restriction Act. 
The Division Bench in the High 
Court followed an earlier decision of the same Court reported in 
E 
Mam Chand v. Chhotu Ram('). The correctness of that decision 
as well as the decision under appeal are challenged before us. 
Before the hearing commenced the respondent took 
objec-
tion to the grant of the special leave stating that the appellant was 
guilty of making "certain inaccurate untrue and misleading st

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