Pakistan Case Law
1989 SCMR 1327

MEHBOOB JEWELLERS and others vs NUR AHMAD

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Citation1989 SCMR 1327
CourtSupreme Court of Pakistan
Date1989-01-11
Judge(s)Muhammad Haleem, C.J., Shafiur Rahman, Zaffar Hussain Mirza, Saad Saood Jan and Naimuddin
Authored byNaimuddin
ResultAppeal allowed
AI Summary — generated from this judgment; read the full text below and verify before relying on it.

This civil appeal by leave arose from an eviction proceeding initiated on the ground of default in payment of rent. The appellants, who were tenants of a commercial tenement, had been depositing rent in advance in the Court of the Rent Controller under the name of the previous owner. Upon receiving notice of transfer of ownership from the respondent's advocate, the appellants requested a copy of the registered sale deed to verify the title, which the respondent failed to provide. Consequently, the appellants continued depositing advance rent in the previous owner's name until the sale deed was produced in court, after which they began depositing advance rent in the respondent's name. The Supreme Court of Pakistan considered whether the appellants had committed wilful default or if it was a technical default liable to be condoned. The Court held that the appellants' conduct demonstrated a consistent intention to pay rent in advance. Since the delay in paying the new owner directly was due to the respondent's failure to provide proof of ownership, there was no wilful default, and any technical default was condoned. The appeal was allowed.

Questions settled in this judgment
  • Does a tenant commit wilful default by continuing to deposit rent in the name of the previous landlord after receiving a notice of transfer if the new landlord fails to provide requested proof of ownership?
  • Can a technical default in the payment of rent arising from a bona fide dispute or lack of verification of a new landlord's title be condoned by the court?
  • Whether the deposit of rent in advance in court under the name of a previous landlord negates an allegation of wilful default under the Sind Urban Rent Restriction Ordinance 1959?
Laws & provisions referred
  • Section 13, Sind Urban Rent Restriction Ordinance 1959
evictionwilful defaulttechnical defaultdeposit of rentlandlord and tenanttransfer of ownership

' NAIMUDDIN.J.-- This is an appeal by leave. Leave was granted to examine the question whether the petitioners had committed wilful default in payment of rent inasmuch as they had been admittedly depositing advance rent in the name of previous owner in Rent Case No, 1044/1973 and in the name of the respondent in Rent Case No,3181/1974, and, alternatively, whether it was a case of technical default which was liable to be condoned. The relevent facts, very briefly stated are:

2. The dispute relates to a tenement No,G/7 in the building on Plot No,1/52 situate at Haji Abdullah Street, Sarafa Bazar, Karachi, of which Haji Usman was the owner and landlord and the appellants the tenants.

3. One of the appellants filed a suit bearing No, 666/1973 for specific performance of the contract of sale of the shop to him. At the same time Haji Usman refused to accept the rent from the appellants. Therefore, the appellants started depositing, from May, 1973, the rent in accordance with the provisions of section 13 of the Sind Urban Rent Restriction Ordinance, 1959 in the Court of the Rent Controller in Misc. Rent Case No, 1044/1973. They deposited the rent in advance.

4. By a notice dated 26-7-1973 Ch. Nazir Ahmad, Advocate, on behalf of Haji Noor Ahmad, informed the appellants that his client has purchased the premises and that they should pay the rent to him.

In reply to the said notice the Advocate for the appellants informed the Advocate for the respondent that his client had been depositing the rent in the Court of IVth Civil Judge in Rent Case No, 1044/1973 and that they had paid the rent, in advance, upto the end of September, 1973. He also requested the Advocate for the respondent, to send a copy of the registered document showing that his client has become the owner of the property, in question. The request was never complied with. However, the suit, filed by one of the appellants, was dismissed as having become infructuous on 24-7-1974 on production of a certified copy of the registered sale-deed. Thereafter, the appellant tendered rent to the respondent but he refused to accept the same. By that time rent upto December, 1974 had already been deposited by the appellants in Misc. Rent Case No, 1044/1973. Therefore, the appellants started depositing the rent in another Misc. Rent application bearing No, 3181/1974 in the name of the respondent. The respondent filed an application for eviction on 7-11-1975 but by that date, rent in advance, upto December, 1975 had already been deposited in the Misc. Rent Case No,3181/ 1974.

5. It appears that if the respondent had complied with the request, made on behalf of the appellants for sending a copy of the registered document in favour of the respondent, which was made by letter dated 17-9-1973, the appellants would have paid the rent to the respondent or would have started depositing the rent in favour of the respondent. As this request was not complied with, therefore, the appellants continued depositing the rent in the name of the previous landlord. It appears that the previous owner had shown the transfer documents to one of the appellants on 24-7-1974 but by that time, as already stated, rent, in advance, up to December, 1974 had already been deposited in the Rent Case No,1044 of 1973.

6. In these circumstances it cannot be said that the appellants made default in the payment of rent. Indeed, their conduct shows that they were keen to pay the rent, and were, in fact, depositing the rent in advance. Therefore, there was no default, muchless a wilful default, on their part. In any case, the default was a purely technical one and ought to have been condoned. We would, therefore, allow the appeal with costs, and set aside the impugned order and judgment.

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