Sunday, 29 June 2014

Whether executing court can refuse to execute eviction decree by giving time to tenant to pay arrears of rent?


Coming to the second reason i.e., the failure of the appellant to challenge the order of the executing court dated 23.11.2005 (by which the executing court granted 15 days time to the respondent to deposit the balance of the arrears of rent) debar the appellant to recover possession of the property in dispute is equally untenable, because:
(i) in our opinion, the order of the executing court dated 23.11.2005 is beyond his jurisdiction and a nullity. The only source which confers powers on the civil court to enlarge time is found under Section 148 of the Code of Civil Procedure which reads as follows:-
148. Enlargement of time Where any period is fixed or granted by the Court for the doing of any act prescribed or allowed by this Code, the Court may, in its discretion, from time to time, enlarge such period not exceeding thirty days in total, even though the period originally fixed or granted may have expired.
It is obvious from the language of the Section, such a power can be exercised only in a case where a period is fixed or granted by the court for doing of any act prescribed by this Court. In a compromise decree such as the one on hand, the stipulation that the judgment debtor is required to make the payment of the money within a specified period is a stipulation by agreement between the parties and it is not a period fixed by the court. Therefore, Section 148 CPC has no application to such a situation. We are fortified by the decision of this court in Hukumchand v. Bansilal and others AIR 1968 SC 86
(ii) In our opinion, the order dated 23.11.2005 virtually amounts to the modification of the decree and is without jurisdiction on the part of the executing court, therefore, a nullity.
It is a settled principle of law that the executing court cannot go beyond the decree. It has no jurisdiction to modify a decree. It must execute the decree as it is. This Court in Deepa Bhargava and Another v. Mahesh Bhargava and Others [(2009) 2 SCC 294] held thus:-
“9. There is no doubt or dispute as regards interpretation or application of the said consent terms. It is also not in dispute that the respondent judgment-debtors did not act in terms thereof. An executing court, it is well known, cannot go behind the decree. It has no jurisdiction to modify a decree. It must execute the decree as it is
16. It is well settled that such a void order can create neither legal rights nor obligations. Therefore, the appellant cannot be denied his right to recover possession of the property in dispute on the ground that he did not choose to challenge such a void order.
 REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO.  52  OF 2014
               
Shivshankar Gurgar        Vs     Dilip                                             


                               J U D G M E N T

Chelameswar, J.

Citation;2014(3) ALLMR 983 SC

1.    Leave granted.

2.    The appellant filed civil suit under section 12(1)(a)  of  the  Madhya
Pradesh Accommodation Control Act, 1961  (hereinafter  referred  to  as  the
“Act”) for eviction of the respondent and recovery of arrears of  rent.   On
16.4.2002 the suit came to be decreed ex parte.  The said decree came to  be
set-aside on an application filed by the  respondent  with  a  direction  to
file the written statement and also deposit the  entire  arrears  within  30
days in the court.
3.    On 25.7.2004 a compromise memo signed by both the parties came  to  be
filed under which the respondent acknowledged his liability to  pay  arrears
of rent  to  the  appellant  to  the  tune  of  Rs.11710/-  and  also  costs
quantified to Rs.4000/-.  The respondent  also  agreed  to  pay  the  amount
within a period of six months.  It was also specifically agreed as  follows:

      “H.   If the defendant violates any of the aforesaid  conditions,  the
      plaintiff shall be entitled to  get  the  vacant  possession  of  suit
      accommodation from the  defendant  wherein  defendant  shall  have  no
      objection.”

4.    In view of the said compromise, the matter was  referred  to  the  lok
adalat and the civil suit was decreed in terms of the compromise.

5.    On 21.7.2005 the appellant filed an application for the  execution  of
the compromise decree alleging that the  respondent  failed  to  fulfil  his
obligations arising  out  of  the  compromise  decree  and,  therefore,  the
appellant is entitled to recover possession of  the  premises.   The  events
that followed are narrated by the High Court in the  judgment  under  appeal
as follows–

      “On 04/10/2005 after appearance respondent filed objections wherein it
      was alleged that signatures were obtained by  the  petitioner  on  the
      said compromise under undue influence and no receipt was issued by the
      petitioner for a sum of Rs.10,000/-, which was paid by the respondent.
       The said application was dismissed by  the  learned  Executing  Court
      vide order dated  24/10/2005  and  it  was  directed  that  since  the
      Executing Court cannot go behind the  decree,  therefore,  warrant  of
      possession be issued. Again on 09/11/2005  objections  were  filed  in
      which  adjustment  of  Rs.25,000/-  was  claimed.   Vide  order  dated
      22/11/2005 objections filed by the respondent was  dismissed,  however
      15 days time was granted to deposit the amount. Since the  amount  was
      deposited by the respondent, therefore, vide  order  dated  23/12/2005
      Executing Court dismissed the execution holding that since the  relief
      of  possession  of  suit  accommodation  was  in  alternate  and   the
      respondent has  deposited  the  amount  though  belatedly,  therefore,
      petitioner is not entitled for alternative relief  and  the  execution
      petitioner was  dismissed,  against  which  an  appeal  was  filed  on
      07/01/2006 and vide order dated  16/03/2006  learned  Appellate  Court
      held that the Executing Court has no jurisdiction  to  go  behind  the
      decree but no relief was granted to the petitioner against which  Writ
      Petition was filed by the petitioner on 05/02/2006, which was numbered
      as WP No.6163/06 and vide order dated  08.02.2007  Writ  Petition  was
      allowed and the matter  was  remanded  to  the  Executing  Court  with
      direction  to  decide  the  points  framed  by  the  Writ  Court   for
      determination.”
                                                         (emphasis supplied)

6.    The operative part of the order reads as follows:
      “10.  It is for this reason, I am constrained to remand  the  case  to
      executing court for deciding  the  issue  again  arising  out  of  the
      execution application filed by the petitioner.   The  executing  court
      will decide the application keeping in view the law laid down  in  Nai
      Bahu[1] case and any other case  which  governs  the  field  and  will
      record categorical finding on following issues:


      1.    Whether compromise decree dated 25.7.2005 is nullity in  so  far
      as it relates to a relief of eviction  of  respondent  from  the  suit
      house?


      2.    If  not  then  whether  default  alleged  is  made  out  by  the
      petitioner so as to entitle him to execute the decree for eviction?



7.    On remand, by the order dated 17.4.2007, the executing court  recorded
a finding that the respondent had paid  the  entire  amount  due  under  the
compromise decree in the executing court although such a  payment  was  made
beyond the period  of  six  months  stipulated  in  the  compromise  decree.
Further,   the  executing  court  examined  the  submission  made   by   the
respondent that in view of  section  13(1)(a)  of  the  Act  the  compromise
decree insofar as it provided for eviction of the respondent  in  the  event
of his failure to make the deposit of arrears within the stipulated time  is
void. The operative portion of the order of the  executing  court  reads  as
follows:
      “20.  ….    Hence, in respect of issue No.A it  is  decided  that  the
      compromise decree is void in respect of eviction relief  and  no  such
      eviction  can  be  ordered  contrary  to  the   provisions   of   M.P.
      Accommodation Control Act for  default  in  payment  of  rent.   Since
      executable part of compromise decree has been held to be void, in such
      circumstances the executing court cannot pass an  order  for  eviction
      for default in payment of arrears of rent or remaining part of arrears
      of rent.  Accordingly issue No.B is decided.”





8.    Aggrieved by the said order, the  appellant  herein  again  approached
the High Court by way of a Civil Revision  Petition  No.173  of  2007.   The
High Court by its judgment  under  appeal  dated  28.10.2010  dismissed  the
revision. Hence this appeal.

9.    The reasons recorded by the High Court are as follows-
      “8.   Undoubtedly entire rent was deposited by the respondent.  It  is
      also not in dispute that the amount was not deposited within a  period
      of six months as per terms and condition  of  the  compromise  decree.
      However, later on the  rent  was  deposited.   Since  the  ground  was
      available  to  the  petitioner  under   Section   12(1)(a)   of   M.P.
      Accommodation Control Act as the respondent did not  tender  the  rent
      within a period of two months from the date of notice and also did not
      deposit the rent within one month from the date of receipt of  summons
      under Section 13(1) of the Act, therefore, there was no reason for the
      petitioner  to  enter  into  compromise   and  condone  the  delay  in
      depositing the rent and give further time to the respondent of another
      six months to deposit the rent.   It  appears  that  since  there  was
      serious dispute between the parties  relating  to  the  title  of  the
      petitioner, therefore, the concession was  given  by  the  petitioner.
      Vide order  dated  23.11.2005  learned  Executing  Court  has  further
      extended the time by another 15 days for  depositing  the  arrears  of
      rent keeping in view the good conduct of the respondent.


      9.    From perusal of the order dated 23.11.2005 it appears  that  the
      amount of Rs.10,000/- was deposited by  the  respondent  on  that  day
      only.  Thus, vide judgment and decree dated 25.07.2004 respondent  was
      required to deposit the arrears within six  months  which  expired  on
      24.01.2005.  In execution petition, time was further  extended  by  15
      days vide order dated 23.11.2005.  The order dated 23.11.2005 was  not
      challenged by the petitioner, meaning thereby  the  petitioner  agreed
      with the order whereby time was further extended.




      10.   Apart from this if the rent is deposited by the  tenant  as  per
      Section 13(1) of the Act, then respondent is entitled  for  protection
      against eviction under Section 12(3) and 13(5) of the Act and in  case
      of default for three consecutive months another suit for eviction  can
      be filed against respondent.  In the facts and  circumstances  of  the
      case, this Court is of the view that no illegality has been  committed
      by the learned Executing Court in dismissing the execution petition in
      full satisfaction.  Hence, petition filed by  the  petitioner  has  no
      merits and the same is dismissed.”

10.   It is argued by  the  learned  counsel  for  the  appellant  that  the
executing court erred in  coming  to  the  conclusion  that  the  compromise
decree is inconsistent with the section 13 of the Act  and  the  High  Court
simply failed to record its finding on the correctness of the order  of  the
executing court but went astray.

11.   On the other hand, the learned counsel for  the  respondent  submitted
that the executing court’s conclusion that the compromise decree insofar  as
it provided for the eviction of the respondent is  void  and  calls  for  no
interference in view of section 13 of the Act even  though  the  High  Court
failed to examine the said question.


12.   The High Court did not examine the correctness of  the  conclusion  of
the executing court that the compromise decree insofar as  it  pertained  to
the eviction of the respondent in the event of his failure  to  deposit  the
arrears  of  rent  within  time  stipulated  in  the  compromise  decree  is
inconsistent with the provisions of the Act and therefore void.

13.   From the judgment under appeal,  the  relevant  portion  of  which  is
extracted earlier at para 9, it appears that the High  Court  dismissed  the
case of the appellant on three grounds  (i)  that  the  appellant  need  not
have entered into a compromise which led to the decree.   According  to  the
High Court, such a compromise was entered into by the appellant  as  in  the
view of the High Court - there was a serious dispute about the title of  the
appellant (ii) When the execution petition was filed by the  appellant,  the
executing court by its order dated 23.11.2005 granted 15 days  time  to  the
respondent to pay the balance of the arrears of rent.    The  appellant  did
not choose to challenge the said order.   According to the High Court,  such
failure of the appellant implies that the appellant acquiesced in  the  said
order, hence, the appellant/landlord was not entitled for  the  recovery  of
the possession of  his  property;  (iii)  in  view  of  the  fact  that  the
respondent eventually deposited  the  arrears  of  rent  his  possession  is
required to be protected in view of section 12(3) and 13(5) of the Act.

14.   We are of the opinion that all the reasons given  by  the  High  Court
are unsustainable in law.


      The reasons which compelled the appellant to enter the compromise  are
irrelevant for the issue at hand.   The  respondent/judgment  debtor  cannot
flout the compromise decree with impunity on the ground  that  his  opponent
entered  the  compromise  in  view  of  some  serious  dispute   about   the
maintainability of his claim. The conduct of the appellant in  entering  the
compromise only debars  the  appellant  to  recover  possession  within  the
period of six months from the date of  the  compromise  decree  whether  the
respondent paid the arrears of rent or not  till  the  last  date.   If  the
respondent paid the said amount any time within the period  of  six  months,
the appellant would be debarred from seeking the eviction of the  respondent
on the cause of action which led to the filing of the eviction suit.

15.   Coming to the second reason i.e., the  failure  of  the  appellant  to
challenge the order of the executing court dated 23.11.2005  (by  which  the
executing court granted 15 days  time  to  the  respondent  to  deposit  the
balance of the arrears of rent) debar the appellant  to  recover  possession
of the property in dispute is equally untenable, because:

(i)   in our opinion, the order of the executing court dated  23.11.2005  is
beyond his jurisdiction and a  nullity.    The  only  source  which  confers
powers on the civil court to enlarge time is found under Section 148 of  the
Code of Civil Procedure which reads as follows:-
      148.  Enlargement of time – Where any period is fixed  or  granted  by
      the Court for the doing of any act prescribed or allowed by this Code,
      the Court may, in its discretion, from  time  to  time,  enlarge  such
      period not exceeding thirty days in  total,  even  though  the  period
      originally fixed or granted may have expired.

It is obvious from the  language  of  the  Section,  such  a  power  can  be
exercised only in a case where a period is fixed or  granted  by  the  court
for doing of any act prescribed by this  Court.    In  a  compromise  decree
such as the one on  hand,  the  stipulation  that  the  judgment  debtor  is
required to make the payment of the money within a  specified  period  is  a
stipulation by agreement between the parties and it is not  a  period  fixed
by the court.  Therefore, Section 148 CPC  has  no  application  to  such  a
situation.  We are fortified by the decision of this court in Hukumchand  v.
Bansilal and others AIR 1968 SC 86

(ii)  In our opinion, the order dated 23.11.2005 virtually  amounts  to  the
modification of the decree and is without jurisdiction on the  part  of  the
executing court, therefore, a nullity.

It is a settled principle of law that the executing court cannot  go  beyond
the decree.   It has no jurisdiction to modify a decree.   It  must  execute
the decree as it is.   This Court in Deepa Bhargava and  Another  v.  Mahesh
Bhargava and Others [(2009) 2 SCC 294] held thus:-
        “9.   There is no doubt or dispute  as  regards  interpretation  or
        application of the said consent terms.   It is also not in  dispute
        that the respondent judgment-debtors did not act in terms  thereof.
          An executing court, it  is  well  known,  cannot  go  behind  the
        decree.   It has no jurisdiction to  modify  a  decree.    It  must
        execute the decree as it is….”


16.   It is well settled that such a void order  can  create  neither  legal
rights nor obligations. Therefore, the appellant cannot be denied his  right
to recover possession of the property in dispute on the ground that  he  did
not choose to challenge such a void order.

17.   The third  reason  of  the  High  Court  and  the  conclusion  of  the
executing court that the  compromise  decree  insofar  as  it  provided  for
eviction of the tenant in the event of his failure to  pay  the  arrears  of
rent within a period of six months  from  the  decree  is  contrary  to  the
provisions of the Act  are  interlinked.   Therefore,  we  are  required  to
examine the scope of sections 12 and 13 of  the  Act  insofar  as  they  are
relevant for the present purpose.

18.   Section 12(1) of the Act restricts the right of landlord to evict  his
tenant only on the grounds enumerated in the said section:
      12.    Restriction  on  eviction  of  tenants.—  (1)   Notwithstanding
      anything the contrary contained in any other law or contract, no  suit
      be filed in any civil court against a tenant for his eviction from any
      accommodation except one  of  more  of  the  following  grounds  only,
      namely–

19.  The only ground urged by the appellant in his suit is that  the  tenant
fell in arrears of rent.  Such a ground is one of  the  grounds  in  section
12(1)(a) of the Act which enables the landlord to evict  the  tenant  if  he
could successfully establish that the tenant did infact fall in  arrears  of
rent and had  neither  tendered  nor  paid  the  amount  within  the  period
specified under Section 12(1)(a) despite a demand.   Section 12(1)(a)  reads
as follows:-
      12(1)(a)    that the tenant has neither paid nor tendered the whole of
      the arrears of the rent legally recoverable from him within two months
      of the date on which a notice of demand for the arrears  of  rent  has
      been served on him by the landlord in the prescribed manner.”

20.   Section 13(1)[2] of the Act stipulates that the  tenant  shall  either
deposit in the court or pay to the landlord  an  amount  calculated  at  the
rate of rent at which it was prayed for by the landlord for various  periods
specified therein (the details of which are not necessary for the  present).
 Such a deposit or payment is required to  be  made  in  two  contingencies.
They are:-
      (i)   upon  institution  of  the  suit  for  eviction  of  the  tenant
      irrespective of the ground on which eviction is sought; or


      (ii)  in an appeal or in a proceeding by the tenant against the decree
      or order of eviction.

It is further stipulated that such a deposit or payment is  required  to  be
made within a period of one month of the service  of  the  summons,  if  the
deposit is being made during the pendency of the suit or within a period  of
one month from the date of institution of appeal or other proceeding as  the
case may be. Further, the said sub-section also recognizes the authority  of
the court to extend in its discretion the said period of  one  month  on  an
application made to it.  Sub-section (2)[3] provides for  the  procedure  in
case of any dispute regarding the rate of rent payable  whereas  sub-section
(3) provides for the procedure  to  be  followed  in  case  of  any  dispute
regarding the person to whom the rent is payable.

21.   The submission that found favour with the executing court is  that  in
view of section 13.
        “… the decree of the  aforesaid  Lok  Adalat  that  in  default  of
        payment of arrears of rent the judgment debtor shall be  liable  to
        be evicted, cannot be enforced because according to Section  13  of
        M.P. Accommodation Control Act, if the  judgment  debtor  pays  the
        rent to the landlord within one month from the date of issuance  of
        summon or within the stipulated time  given  by  the  court  on  an
        application so made  by  the  judgment  debtor,  then  he  will  be
        entitled  for  protection  from  eviction  under  Section  12  M.P.
        Accommodation Control Act, thus clearly entire decreetal amount has
        been paid in the  execution  proceeding,  therefore,  the  judgment
        debtor shall be entitled for protection from eviction.”


22.   Sub-section (5)[4] declares that if a tenant makes deposit or  payment
as required under sub-section (1) or (2), no decree or  order  for  recovery
of possession of the accommodation can  be  passed.   Sub-section  (5)  only
protects the defaulting tenant in possession in the event of  his  complying
with the requirement of Section 13(1) or (2) only in those cases  where  the
eviction is sought on the ground of arrears of rent  falling  under  section
12(1)(a).

23.   The case of the appellant is one falling under section  12(1)(a)  and,
therefore, the  learned  counsel  for  the  respondent  placed  reliance  on
Section 13 (5) to sustain the conclusion of the executing  court.    Section
13(5) reads as follows:-
           “(5)  If a tenant makes deposit or payment as required  by  sub-
           section (1) or sub-section (2), no decree or order shall be made
           by the court for the recovery of possession of the accommodation
           on the ground of default in the payment of rent by  the  tenant,
           but the court may allow such cost as it  may  deem  fit  to  the
           landlord.”

24.   A reading of Section 13,  in  our  view  clearly  indicates  that  the
payment or the deposit of  rent  into  the  court  by  the  judgment  debtor
(tenant) is contemplated only during the pendency of the suit  for  eviction
or an appeal (by  the  tenant)  against  a  decree  or  order  of  eviction.
Section 13 has no application to the execution proceedings of a  decree  for
eviction.

25.   The language of Section 13(1) is  very  clear  and  explicit  in  this
regard.   We fail to understand as to how the Court could read into  Section
13, a possibility of enabling the judgment debtor (tenant)  to  protect  his
possession by making the payment during the execution proceedings  in  spite
of the fact that he had already been adjudged to be in  default  of  payment
of the rent to the landlord.   Such an interpretation of  Section  13  would
be  wholly  destructive  of  Section  12(1)(a).   Therefore,  not  only  the
language of Section 13(1), but also  an  irreconcilable  inconsistency  that
would  arise  between  Section   12(1)(a)   and   Section   13(1)   if   the
interpretation placed by the executing court is accepted - in  our  view  is
sufficient to hold that the  executing  court’s  interpretation  of  Section
13(1) is unsustainable.

26.   Coming to the decision  of  this  Court  in  Smt.  Nai  Bahu  v.  Lala
Ramnarayan and others (1978) 1 SCC 58, all that this Court held  is  that  a
landlord whose right to seek the eviction of his tenant is restricted  by  a
statute (to the grounds specified in the statute) cannot successfully  evict
the tenant only on the basis of a compromise decree passed  in  a  suit  for
eviction of the tenant.   Apart from the consent of the tenant, one  of  the
statutorily stipulated grounds rendering  the  tenant  liable  for  eviction
must necessarily exist for the validity of such a decree.   In other  words,
this court held that a tenant who suffered a consent decree can still  raise
a question that none of the statutory conditions existed  which  render  him
liable for eviction when the consent decree came to be passed.

27.   In the case on hand the tenant was clearly  in  arrears  of  the  rent
which fact is acknowledged by the  compromise  memo  signed  by  the  tenant
which was incorporated in the decree.    Looked at any  angle,  we  are  not
able to agree with the judgment  under  appeal,  nor  able  to  sustain  the
executing court’s order dismissing the landlord’s execution  petition.   The
appeal is  accordingly  allowed.    The  execution  petition  filed  by  the
appellant is also allowed.  The executing  court  will  now  take  necessary
steps for evicting the respondent from the  disputed  premises  and  handing
over the possession of the same to the appellant.


28.   In the facts and circumstances of the case, there will be no order  as
to costs.

                                                          ..………………………………….J.
                                              (RANJANA PRAKASH DESAI)


                                                         ...………………………………….J.
                                              (J. CHELAMESWAR )
New Delhi;
January 3, 2014









                                                     -----------------------
[1]     Smt. Nai Bahu v. Lala Ramnarayan and others (1978) 1 SCC 58
[2]    13.  When tenant can get benefit  of  protection  against  eviction.—
(1) On a suit or any other proceeding being instituted by a landlord in  any
of the grounds referred to in section 12 or in any appeal or  any  of  other
proceeding by a tenant against any decree or order  for  his  eviction,  the
tenant shall, within one month of the service of writ of summons  or  notice
of appeal or of any other proceeding, or within one month of institution  of
appeal or any other proceeding by the tenant as the case may be,  or  within
such further time as the court may on an application made  to  it  allow  in
this behalf, deposit in  the  court  or  pay  to  the  landlord,  an  amount
calculated at the rate of rent at which it was prayed, for  the  period  for
which the tenant may have  made  default  including  the  period  subsequent
thereto up to the end of the month previous to that in which the deposit  or
payment is made and shall thereafter continue to deposit or  pay,  month  by
the 15th of each succeeding month a sum equivalent to the rent at that  rate
till the decision of the suit, appeal or proceeding as the case may be.

[3]    (2)  If in any suit or proceeding  referred  to  in  sub-section  (1)
there is any dispute as to the amount of rent payable  by  the  tenant,  the
court shall, on a plea made either by landlord  or  tenant  in  that  behalf
which shall be taken  at  the  earliest  opportunity  during  such  suit  or
proceeding,  fix  a  reasonable  provisional  rent,  in  relation   to   the
accommodation to be deposited or paid in accordance with the  provisions  of
sub-section (1) and no court shall, save  for  reasons  to  be  recorded  in
writing, entertain any plea on this account at any subsequent stage.

[4]    (5)  If a tenant makes deposit or payment as required by  sub-section
(1) or sub-section (2), no decree or order shall be made by  the  court  for
the recovery of possession of the accommodation on the ground of default  in
the payment of rent by the tenant, but the court may allow such cost  as  it
may deem fit to the landlord.


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