Summary
Tenants challenged striking out of their defence for alleged non-payment of rent. The Court held that the power was discretionary and exceptional, requiring attention to the actual payment history. Arrears had been paid along with substantial advance rent that ought to have been adjusted against future liability. With no established deliberate or contumacious default, the defence was restored and prompt adjudication of eviction on merits directed.
Issues
- Whether the discretionary power to strike out the tenants’ defence was properly exercised.
- Whether unadjusted advance rent defeated the allegation of default.
Provisions considered
- Section 15(7), Delhi Rent Control Act, 1958Striking out a defence is discretionary rather than an automatic consequence of non-compliance and requires careful assessment of the circumstances. (¶¶ 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
Held
- The change from mandatory language in the earlier statute to may in section 15(7) deliberately vested discretion in the Controller. Striking out a defence is exceptional and must reflect wilful, contumacious or comparable unjustified default, with due regard to the circumstances and competing rights. (¶¶ 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
- The tenants paid the ordered arrears and an additional ten months’ rent. That excess represented no admitted prior liability and was neither refunded nor otherwise adjusted; it had to be appropriated towards future rent. Subsequent undisputed payments likewise covered later periods. (¶¶ 25, 26, 27, 28)
- After proper reconciliation, rent for the relevant period and beyond had already been paid when the defence was struck out. The record disclosed neither negligence nor defiance nor contumacious non-payment, and the discretion had not been exercised judicially. (¶¶ 29, 30, 31)
Result
The appeal was allowed without costs. The High Court judgment and the Controller/Tribunal orders striking out the defence were set aside. The Controller or competent authority was directed to decide the eviction application expeditiously on merits, within one year. Pending applications were disposed of.