Rent Act- Arbitration

Non payment of rent – Suit filed for eviction on account of non payment

Transfer of Property Act, 1882, Section 114, 114A  – Cannot be construed as a statutory protection nor as a hard and fast rule in all cases to waive the forfeiture - It is a provision enabling exercise of equitable jurisdiction in appropriate cases as a matter of discretion.      

Held, Lease agreement provided the manner in which the determination of lease would occur, which also includes determination by forfeiture due to the acts of the lessee/tenant in breaking the express condition agreed between the parties or provided in law - The breach and the consequent forfeiture could also be with respect to nonpayment of rent -  In such circumstance where the lease is determined by forfeiture and the lessor sues to eject the lessee and, if, at the hearing of the suit, the lessee pays or tenders to the lessor the rent in arrear, Section 114 of TP Act provides that the Court instead of passing a decree for ejectment may pass an order relieving the lessee against the forfeiture due to which the lessee will be entitled to hold the property leased as if the forfeiture had not occurred -  Under Section 114A of the TP Act a condition for issue of notice prior to filing suit of ejectment is provided so as to enable the lessee to remedy the breach -  No doubt the said provisions provide certain protection to the lessee/tenant before being ejected from the leased property -  Same cannot be construed as a statutory protection nor as a hard and fast rule in all cases to waive the forfeiture. It is a provision enabling exercise of equitable jurisdiction in appropriate cases as a matter of discretion.

 

(2021-1)201 Punjab Law Reporter  110 (Supreme Court)

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