The Supreme Court held that under Section 10(2)(i) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, a tenant’s default may be presumed to be wilful if it continues even after the landlord issues the statutory two-month notice contemplated in the Explanation. Where no such notice is given, the Rent Controller must independently determine whether the default was wilful.
The lessee had leased four portions of the respondent’s property between 1999 and 2001 for a total monthly rent of Rs. 48,000, though the lessee claimed it was Rs. 33,000. In 2004, the landlord initiated fair-rent proceedings, which culminated in the Rent Controller fixing the fair rent at Rs. 2,43,600 (later modified to Rs. 2,37,500). Despite these orders, and without obtaining any stay, the lessee continued to pay only the earlier contractual rent. The eviction petition filed in 2007 was initially dismissed but was allowed in appeal, and the High Court upheld the finding of wilful default.
The Supreme Court held that since the lessee never sought a stay of the fair-rent order and cleared arrears only years later, the default could not be treated as bona fide. Payments were made belatedly and only under court direction, amounting to wilful default. The Court affirmed the eviction order and reiterated that an appeal does not operate as a stay and tenants must comply with fair-rent orders unless expressly protected.
K. Subramaniam v Krishna Mills
11 November 2025
Citation: 2025 INSC 1309 | 2025 SCO.LR 11(3)[13]
Bench: Justices Dipankar Datta and Manmohan
Read the Judgment here.
Case Comment
the lessee never sought a stay of the fair-rent order and cleared arrears only years later, the default could not be treated as bona fide
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Key words/phrases: Wilful default—Fair rent fixation—Tamil Nadu Buildings (Lease and Rent Control) Act, 1960—Rent Control Appellate Authority—Absence of stay—Execution of decree—Two-month notice—eviction petition—Presumption of wilful default