S.M. ASIF Vs. VIRENDRA KUMAR BAJAJ

Code Of Civil Procedure, 1908 (CPC)

Section 151 - Saving of inherent powers of Court

Tags Civil Procedure Tenancy

Supreme Court of India (Full Bench (FB)- Three Judge)

Appeal (Civil), 6106-6108 of 2015, Judgment Date: Aug 12, 2015

REPORTABLE

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 6106-6108 OF 2015
(Arising out of SLP (C) Nos. 4987-4989 of 2015)

S.M. ASIF ...Appellant

Versus

VIRENDER KUMAR BAJAJ ...Respondent

J U D G M E N T

R. BANUMATHI, J.

Leave granted.
2. Challenge in these appeals is the correctness of the orders
dated 16.10.2014 and 27.10.2014 passed by the High Court of Delhi in RFA
No.505/2014, whereby the High Court disposed of the appeal observing that
the appellant having not pressed the appeal and by changing their counsel
cannot be allowed to plead for adjournment to argue the appeal. Review
Petition No.499/2014 also came to be dismissed by the High Court vide order
dated 19.11.2014 which is also under challenge in these appeals.
3. Brief facts which led to filing of these appeals are as under:-
Respondent-landlord is the owner of the disputed premises which is a built
up area of entire second floor with terrace/roof of the property bearing
No.R-849 situated at New Rajinder Nagar, New Delhi admeasuring 200 sq.
yards. The appellant-tenant contended that the respondent-landlord entered
into a registered agreement for lease at a monthly rent of Rs.37,500/- for
a period of twenty two months i.e. from 15.03.2008 to 14.01.2010. After the
expiry of first lease, another registered lease was entered into between
the parties for two years i.e. from 15.01.2010 to 14.01.2012 on monthly
rent which was fixed at Rs.44,000/-. According to the appellant, during the
subsistence of the second lease, as the respondent-landlord was in
financial crisis, the respondent-landlord and the appellant-tenant entered
into an agreement of sale in respect of the same tenancy premises for an
amount of Rs.1.56 crores. The appellant-tenant is said to have advanced a
sum of Rs.82.50 lakhs vide six payments viz.:-
Rs.15,00,000/- on 16.01.2010;
Rs.12,50,000/- on 24.04.2010;
Rs.18,00,000/- on 15.09.2010;
Rs. 7,00,000/- on 01.11.2010;
Rs.15,00,000/- on 12.02.2011 and
Rs.15,00,000/- on 19.08.2011

For the above payments the respondent-landlord is said to have issued six
receipts acknowledging the receipts of money. Agreement of sale was
executed between the parties on 19.08.2011.
4. The respondent-landlord alleges that under Section 106 of the
Transfer of Property Act terminating the lease, he sent a legal notice
through speed post on 26.12.2011; however, the appellant-tenant denied
having received any such notice. As the defendant-tenant was not vacating
the premises, the respondent-landlord filed a Suit No.256/13 for recovery
of possession, mesne profits and injunction in the Court of Additional
District Judge, Tis Hazari, Delhi. During the pendency of the suit, an
application under Order XII Rule 6 CPC read with Section 151 CPC was filed
by the respondent-landlord and the trial court vide its order dated
25.08.2014 allowed the said application and directed the appellant-tenant
to vacate and handover physical possession of the suit premises to the
respondent-landlord.
5. Aggrieved by the Order, the appellant-tenant preferred RFA
No.505/2014 in the High Court of Delhi. As per the order of the High Court,
on the date of preliminary hearing i.e. 16.10.2014, the learned counsel for
the appellant-tenant is said to have submitted that the “appeal is not
pressed on merits and he prays for grant of time to vacate the suit
premises. Limited on the point of grant of time matter is listed for
24.10.2014….”. On 27.10.2014, the appellant-tenant changed his counsel and
requested that the appeal may be heard and sought for an adjournment. The
learned Single Judge declined the request for adjournment and disposed of
the appeal observing that notice was issued to the respondent-landlord
limited only to the point of grant of time to vacate the premises.
Aggrieved by the said order, the appellant-tenant filed a Review Petition
No.499/2014 which also came to be dismissed by an order dated 19.11.2014.
These appeals assail the correctness of the said orders passed in the
appeal as well as the Review Petition.
6. Learned counsel for the appellant-tenant submitted that the
appellant is an accredited journalist with good reputation and has paid a
huge sum of Rs. 82.50 lakhs under an agreement of sale and while so, the
trial court erred in passing decree for eviction under Order XII Rule 6
CPC. It was submitted that the trial court vide its order dated
30.09.2013, while directing the payment to be made during the pendency of
the suit at Rs.44,000/- per month has stipulated a condition that in the
event of the appellant-tenant succeeding, the monthly amount paid would be
adjusted against the balance sale consideration amount under the agreement
for sale dated 19.08.2011. It was further submitted that having regard to
the defence taken by the appellant-tenant, the trial court ought to have
adjudicated the matter and erred in passing a decree for eviction without
trial. It was also submitted that when the matter came up before the High
Court of Delhi on 16.10.2014, the appellant-tenant was not present in the
Court and his counsel sought time to take instructions and according to the
appellant-tenant, his counsel did not make the statement ‘not pressing the
appeal’. It is contended that even assuming that the counsel for the
appellant-tenant has made such a statement, the learned Single Judge can
certainly permit a party to resile from the concession.
7. Per contra, learned counsel for the respondent-landlord
submitted that it is clear from the order that the advocate appearing for
the appellant in High Court had only sought for time to vacate the premises
and did not press the appeal on merits. Contention at the hands of the
respondent is that it is quite unbelievable that the appellant has paid a
huge sum of Rs.82.50 lakhs by cash and the alleged agreement of sale is a
fabricated one and since the appellant does not have a substantial defence,
the trial court rightly passed the decree under Order XII Rule 6 CPC and
the impugned orders do not suffer from any infirmity warranting
interference.
8. We have carefully considered the rival contentions and perused
the impugned orders and material on record.
9. The words in Order XII Rule 6 CPC “may” and “make such order…”
show that the power under Order XII Rule 6 CPC is discretionary and cannot
be claimed as a matter of right. Judgment on admission is not a matter of
right and rather is a matter of discretion of the Court. Where the
defendants have raised objections which go to the root of the case, it
would not be appropriate to exercise the discretion under Order XII Rule 6
CPC. The said rule is an enabling provision which confers discretion on
the Court in delivering a quick judgment on admission and to the extent of
the claim admitted by one of the parties of his opponent’s claim. In the
suit for eviction filed by the respondent-landlord, appellant-tenant has
admitted the relationship of tenancy and the period of lease agreement; but
resisted respondent-plaintiff’s claim by setting up a defence plea of
agreement to sale and that he paid an advance of Rs.82.50 lakhs, which of
course is stoutly denied by the respondent-landlord. The appellant-
defendant also filed the Suit for Specific Performance, which of course is
contested by the respondent-landlord. When such issues arising between the
parties ought to be decided, mere admission of relationship of landlord and
tenant cannot be said to be an unequivocal admission to decree the suit
under Order XII Rule 6 CPC.
10. Having regard to the stand taken by the parties, in our view,
an opportunity has to be afforded to the appellant to put forth his defence
and contest the suit and therefore, the matter is to be remitted to the
trial court for a fresh hearing, however, subject to the condition that the
appellant should pay the arrears of rent at the rate of Rs.44,000/- per
month within a period of eight weeks. Further the appellant shall pay
Rs.1,00,000/- per month to the respondent-landlord as compensation for use
and occupation of the suit premises with effect from 01.08.2015 and the
respondent-landlord shall issue necessary receipt/acknowledgment for having
received the same. The trial court vide its order dated 30.09.2013 while
directing the payment of Rs. 44,000/- per month has stipulated a condition
that in the event of the appellant succeeding, the said amount would be
adjusted against the balance sale consideration amount under the agreement
for sale dated 19.08.2011. Having regard to the said order passed by the
trial court, payment of sum of Rs.1,00,000/- per month would also be
subject to the final outcome of the eviction suit as well as the suit for
specific performance.
11. The impugned orders are set aside and the matter is remitted
back to the Rent Controller for consideration of the matter afresh and the
appeals are allowed on the above terms. The rent controller shall dispose
of the matter as expeditiously as possible. We make it clear that we have
not expressed any opinion on the merits of the matter. No order as to
costs.
…………………………J.
(T.S. THAKUR)

…………………………J.
(V. GOPALA GOWDA)

…………………………J.
(R. BANUMATHI)
New Delhi;
August 12, 2015
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