Real Estate and Property : Supreme Court Examines Legal Issues Concerning Real Estate and Properties in its Recent Judgment

Real Estate and Property : Supreme Court Examines Legal Issues Concerning Real Estate and Properties in Its Recent Judgment

In a recent Judgment Supreme Court has dealt with Kerala Buildings (Lease and Rent Control) Act, 1965 ("KBLRC Act, 1965").

Issue was whether the Section 12 procedure has to be repeated before the Rent Control Appellate Authority while hearing an Appeal challenging an eviction order passed under Section 12(3) of the of KBLRC Act, 1965 by the Rent Control Court?

It was held that Section 12(1) of KBLRC Act, 1965 specifically stipulates that no tenant shall be entitled to contest either an eviction petition before the Rent Control Court or an Appeal before the Rent Control Appellate Authority unless he has paid or deposited with the Court, as the case may be, all arrears of rent admitted by the tenant to be due and continues to pay the rent which may subsequently become due. In the event of non-deposit/non-payment of rent without any sufficient cause, Section 12(3) of KBLRC Act, 1965 empowers the Courts to stop all proceedings and make an order directing the tenant to put the landlord in possession of the building. Since the power to evict under Section 12(3) of KBLRC Act, 1965 is by operation of law, not even an application for eviction is required to be filed by the landlord.

As the Rent Control Appellate Authority is not the Court of first instance, it only tests the exercise of jurisdiction and power by the Rent Control Court. The Appellate Authority is not required to re-determine the issue of default or the outstanding amount of rent. It has only to examine as to whether the Rent Control Court has erred in law or in facts and/or has exercised its jurisdiction in accordance with law.

While hearing the appeal, the Appellate Authority has full discretion to pass any order in accordance with law, including an order dismissing the Appeal and/or extending the time to deposit/pay the arrears of rent, or if it finds substantial merit in the Appeal, it may issue notice and unconditionally stay the impugned order of eviction, or if it finds that the Appeal raises an argument which is plausible but improbable, it may direct the Appellant to pay/deposit the amount determined by the Rent Controller pending the hearing of the Appeal. 

Case reference is P.U. Sidhique v. Zakariya [2025] GCtR 1728 (SC).