High Court of KeralaDivision BenchDismissed

O.P.(RC) Nos.97 & 98 of 2023: Isac v. N. Jayakrishnan; Isac v. Annapoorni Jayakrishnan

Case / Petition Number:O.P(RC) Nos.97 & 98 of 2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A.K. Jayasankaran Nambiar
  • Mohammed Nias C.P.
Judgment Date
2023-07-05
Court Decision / Holding
The original petitions fail and are dismissed. The Rent Controller’s orders under Section 12(1) directing payment of admitted arrears are affirmed; no interference with Ext.P7 orders; the stay and alleged illegality do not negate rent obligations while the tenancy remains in effect.
Final Disposition
Dismissed

Parties to the Case

Appellants / Petitioners

  • ISAC

Respondents

  • N. Jayakrishnan
  • Annapoorni Jayakrishnan

Legal Representation & Advocates

Counsels for Petitioners

  • • Manu Roy

Counsels for Respondents

  • • A. Balagopalan
  • • M.S. Imthiyaz Ahammed
  • • M.N. Mamadan
  • • A. Rajagopalan
  • • P. Seena

Case Synopsis & Summary

The High Court of Kerala heard two parallel rent-control original petitions (O.P.(RC) Nos. 97 and 98 of 2023) arising from eviction petitions under Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965. The tenant, Isac, challenged orders under Section 12 directing payment of admitted arrears and related interim relief in respect of two different tenancies, where monthly rents were fixed at Rs.20,000 and Rs.50,000 with annual increases, and arrears were claimed from October 2019 onward. The tenant asserted several defenses: (i) the building was illegally constructed; (ii) a stay order in W.P.(C) No.19238/2019 interdicted commercial activity and taxed the landlord with suppression of facts related to occupancy; (iii) substantial expenditure (over Rs.21 lakhs) was incurred for furnishing the premises to meet ISO certification standards; (iv) consequently, rent could not be demanded while staying the proceedings. The landlord contends that a binding lease agreement fixed rent, which, under Section 12, constitutes admitted rent, and that the tenant cannot avoid rent by invoking the stay or construction issues. The Rent Controller’s view, later upheld by this Court, was that the fixed rent amounts must be treated as admitted rent, cross-examination at Section 12(1) stage was unwarranted, and the tenant’s claims for non-payment due to illegality do not nullify the rent obligation. The petitions were dismissed, with the Court affirming the interim order directing payment of admitted arrears and rejecting the tenant’s broader defenses.

Provisions of Law Cited

Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965Section 12 of the Kerala Buildings (Lease and Rent Control) Act, 1965

Legal Doctrines & Maxims

  • Admitted arrears under Section 12(1) concept
  • Temporary, non-appealable nature of orders under Section 12(1) and remedy under Section 12(3)
  • Gopala Panicker Baiju v. Mallika, 2018 (5) KHC 95 (cited)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner tenant contends that the landlord knew of illegal construction, that the building was interdicted from commercial activity by a stay order (W.P.(C) No.19238/2019), and that the tenant spent over Rs.21 lakhs for furnishing the premises to meet ISO standards; these factors negate or suspend rent obligations pending resolution. The stay and alleged illegality, coupled with the expenditure incurred, are argued to nullify the liability to pay rent until such illegality is cured or the Court reopens the matter. The tenant also sought cross-examination of the landlord (I.A.4/2022).

Contentions of Respondents

The landlord argues that a binding lease agreement fixed monthly rent (Rs.20,000 and Rs.50,000 with annual increases) and that the fixed rent constitutes admitted rent under Section 12; the stay cannot exempt a tenant from paying admitted rent; the tenant’s expenditure and illegality allegations do not negate the rent liability, and the remedy lies in Section 12(3) challenges after any interim orders. The Rent Controller’s framework correctly treated fixed rent as admitted rent, and cross-examination was not warranted at this stage.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Gopala Panicker Baiju v. Mallika2018 (5) KHC 95PositiveCourt cites this decision to affirm that the rent fixed in the lease agreement is to be treated as admitted rent under Section 12.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** # **PRESENT** # **THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P. WEDNESDAY, THE 5[TH] DAY OF JULY 2023 / 14TH ASHADHA, 1945 OP (RC) NO. 97 OF 2023** **(AGAISNT THE ORDER IN IA 3/2022 IN RCP 11/2022 OF THE THIRD** **ADDITIONAL MUNSIFF & RENT CONTROLLER, ERNAKULAM** ## **PETITIONER/RESPONDENT:** ISAC, AGED 54 YEARS S/O JOHN, 27/224, KOLATH HOUSE, K. P. VALLON ROAD, KADAVANTHRA, KOCHI, PIN - 682020 BY ADV MANU ROY ## **RESPONDENT/PETITIONER:** N. JAYAKRISHNAN, AGED 63, S/O NARAYANA SWAMY, 8H, NJK SIVAM, 8TH FLOOR, LAYAM ROAD, KOCHI - 682011 BY ADVS. A.BALAGOPALAN M.S.IMTHIYAZ AHAMMED M.N.MANMADAN A.RAJAGOPALAN P.SEENA THIS OP (RENT CONTROL) HAVING COME UP FOR ADMISSION ON 05.07.2023, ALONG WITH OP (RC).98/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P(RC) Nos.97 & 98 of 2023 2 # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR** **&** **THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P. WEDNESDAY, THE 5[TH] DAY OF JULY 2023 / 14TH ASHADHA, 1945 OP (RC) NO. 98 OF 2023** **(AGAISNT THE ORDER IN IA 3/2022 IN RCP 10/2022 OF THE THIRD ADDITIONAL MUNSIFF & RENT CONTROLLER, ERNAKULAM** ## **PETITIONER/RESPONDENT:** ISAC, AGED 54 YEARS S/O JOHN, 27/224, KOLATH HOUSE, K. P. VALLON ROAD, KADAVANTHRA, KOCHI, PIN - 682020 BY ADV MANU ROY ## **RESPONDENT/PETITIONER:** ANNAPOORNI JAYAKRISHNAN, AGED 53 YEARS S/O N. JAYAKRISHNAN, 8H, NJK SIVAM, 8TH FLOOR, LAYAM ROAD, KOCHI, PIN - 682011 BY ADVS. A.BALAGOPALAN M.N.MANMADAN M.S.IMTHIYAZ AHAMMED P.SEENA THIS OP (RENT CONTROL) HAVING COME UP FOR ADMISSION ON 05.07.2023, ALONG WITH OP (RC).97/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P(RC) Nos.97 & 98 of 2023 3 ## A.K.JAYASANKARAN NAMBIAR, ## & MOHAMMED NIAS C.P., JJ .............................................................. ## O.P(RC) Nos.97 and 98 of 2023 ............................................................. Dated this the 5[th] day of July, 2023 ## JUDGMENT ## Mohammed Nias C.P., J. The above original petitions are preferred by the tenant in RCP 10/22 and RCP 11/22 on the files of the III Additional Munsiff and Rent Controller, Ernakulam. 2. RCP No.10/2022 was filed by the landlord/respondent herein under Section 11(2)(b) of the Kerala Buildings (Lease and Rent Control) Act, 1965, (for short, 'Act') stating that the building in question was let out to the tenant, as per an agreement dated 4.4.2018 fixing a monthly rent of Rs.20,000/-. Alleging that the tenant had committed default from October 2019 onwards and that a total amount of Rs.6,31,674/- is due with interest at the rate of 6% per annum, the application was filed for eviction. 3. RCP No.11/2022 was filed stating that the building was let out to the tenant as per an agreement dated 20.11.2018 for a monthly rent of O.P(RC) Nos.97 & 98 of 2023 4 Rs.50,000/- with a provision for renewal of the lease agreement with an annual increase of 5% till 2023. Alleging that the rent is in default from October 2019 and that a total amount of Rs.14, 15,399/- is due from the tenant, the petition for eviction was filed under Section 11(2)(b). The tenants had filed objections stating that they had spent more than Rs.21 lakhs for furnishing the shop rooms to suit the ISO certification standards for starting a medical shop and that as per the order in W.P(C) No.19238/2019, a stay was granted by this Court interdicting all commercial activities in the scheduled building and it was suppressing all these facts that the building was let out. It is also alleged that the construction was unauthorised and therefore, the tenant was unable to get the licence for running the medical shop. Since the tenant could not occupy the scheduled building even for a day, it was contended that the landlord was not entitled to collect any rent. 4. In the rent control proceedings, the landlord filed a petition as I.A.No.3/2022 under Section 12 of the Act for a direction to the tenant to pay the admitted arrears of rent. The tenant has filed a counter affidavit opposing the prayer in IA. 3/2022 on almost identical lines as the counter filed to the rent control petition. The tenant had also filed an application as I.A.No.4/2022 seeking permission to cross-examine the landlord. The landlord had filed a counter to the said application. The grievance of the original petitioner is that without considering IA.4/2022 filed in IA. 3/2022, by Ext.P7 order, Section 12 applications in both cases were O.P(RC) Nos.97 & 98 of 2023 5 allowed by the Rent Controller. It is challenging the said orders these original petitions are filed. 5. We have heard Sri. Manu Roy, the learned counsel for the original petitioner/tenant, and Sri.A. Balagopalan, the learned counsel for the respondent/landlord. 6. Having heard the learned counsel for the parties and perusing the impugned orders along with the available records, we do not find any reason to interfere with the impugned orders. Though the tenant had filed RCA No.3/2023 against the order in RCP No.10/2022 and RCA No.6/2023 against the order in RCP No.11/2022, both of them were dismissed, stating that the order passed under Section 12(1) of the Act is only a temporary order and that no appeal will lie against the said order, as the tenant can challenge the legality of the order under Section 12(1) in case he is challenging the order to be passed under Section 12(3). The Rent Controller found that the first limb of Section 12 stands for pre-litigation arrears of rent. But, the second limb, the expression “admitted arrears,” is absent as the second part deals with the payment of subsequent monthly rent, which may become due after the filing of the rent control petition. The tenant in the instant case had stated that he had paid rent up to September 2019, and as it was on the rent fixed in the document, the Rent Controller found that the said amount was treated as the admitted amount. O.P(RC) Nos.97 & 98 of 2023 6 7. We do not find anything illegal in the trial court taking such a view, more so in the light of the judgment of this Court in Gopala Panicker Baiju v. Mallika [2018 (5) KHC 95] . The argument of the tenant/petitioner is that he had spent more than Rs.21 lakhs for furnishing the building, which the landlord knew was an illegal construction. Further, he was interdicted from carrying on any commercial activity on account of the stay granted by this Court. According to the learned counsel, in such circumstances, the landlord cannot demand the rent, and there is no liability on the part of the tenant to pay the same. We cannot accept this contention. It is not disputed that an agreement was entered into with fixing a monthly rent, and that has to be taken as the admitted rent within the meaning of Section 12 of the Act. There is no case for the tenant that the rent as fixed has been paid. In such circumstances, the order passed by the Rent Controller under Section 12 calls for no interference. 8. Regarding the second contention that his application for permission to examine the landlord was not considered before passing orders under Section 12(1), we hold that the same was not warranted at the stage of Section 12. We find no fault in the Rent Controller not allowing the said application before passing orders under Section 12(1) of the Act. As soon as the tenant occupies the premises, he is liable to pay the fixed monthly rent. If it is his case that he had spent the amount and had suffered a loss, it is open to him to institute appropriate proceedings to recover the same. But the same cannot be a defence for not paying the O.P(RC) Nos.97 & 98 of 2023 7 rent due to the landlord as long as he is occupying the premises. We find nothing wrong in Ext.P7 order passed in both cases. The original petitions fail and are accordingly dismissed. Sd/- ## A.K.JAYASANKARAN NAMBIAR JUDGE Sd/- MOHAMMED NIAS C.P., JUDGE okb/ O.P(RC) Nos.97 & 98 of 2023 8 ## **APPENDIX OF OP (RC) 98/2023** ## PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF PETITION FILED AS R.C.P NO: 10/22 Exhibit P2 TRUE COPY OF THE OBJECTION IN R.C.010/2022 Exhibit P3 TRUE COPY OF THE PETITION FILED AS I.A NO: 3/22 Exhibit P4 TRUE COPY OF COUNTER AFFIDAVIT FILED IN I.A. NO: 3/22 Exhibit P5 TRUE COPY THE PETITION FILED AS I.A NO: 4/2022 Exhibit P6 TRUE COPY OF COUNTER AFFIDAVIT FILED IN I.A NO: 4/22 Exhibit P7 TRUE COPY OF ORDER IN I.A 3/2022 DATED 23-12-22 Exhibit P8 TRUE COPY OF ORDER IN R.C.A NO. 3/2023 DATED 10/04/2023 O.P(RC) Nos.97 & 98 of 2023 9 ## **APPENDIX OF OP (RC) 97/2023** PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF PETITION FILED AS R.C.P NO: 11/22 DATED 13.01.2022 Exhibit P2 TRUE COPY OF THE OBJECTION IN R.C.P 11/2022 DATED 11.08.2021 Exhibit P3 TRUE COPY OF THE PETITION FILED AS I.A NO: 3/22 DATED 16.08.2022 Exhibit P4 TRUE COPY OF COUNTER AFFIDAVIT FILED IN I.A. NO: 3/22 DATED 24.08.2022 Exhibit P5 TRUE COPY THE PETITION FILED AS I.A NO: 4/2022 DATED 28.11.2022 Exhibit P6 TRUE COPY OF COUNTER AFFIDAVIT FILED IN I.A NO: 4/22 DATED 21.12.2022 Exhibit P7 TRUE COPY OF ORDER IN I.A3/2022 DATED 23-12-22 Exhibit P8 TRUE COPY OF ORDER IN R.C.A NO. 6/2023 DATED 10.04.2023