Owners can collect a month’s rent as advance

 

What is more. Citing a Supreme Court order, judge, XIII Small causes court, C. Sasikumar said the landlord is entitled to receive only one month agreed rent by way of advance. 

Any sum paid in excess of the agreed rent of one month as advance shall be refunded by landlord to the tenant or adjusted towards rent. The matter related to an eviction petition filed by Niamuthullah before the XIII Small causes court. 

 

The petitioner stated that Harihara Rajan, an advocate, had taken a building in Thambu street on a monthly rent of Rs 2,500 exclusive of electricity charges. Harihara Rajan had not paid the rent for from March 2007 to January 2008, totalling 

Rs 27,500. 

 

According to Niamuthullah, his tenant willfully refused to pay the rent and failed to pay the electricity charges from March 2007 till now. Hence, Harihara Rajan was liable to be evicted under the Tamil Nadu Building (Lease and Rent Control) Act.

 

In his reply, Harihara Rajan denied the allegation. He submitted that as per agreement he paid Rs 25,000 as advance. He said the landlord had not issued receipt for advance. As he refused to issue receipt, he sent the rental amount through money order.

 

However, Niamuthullah had not collected money order. Following this, Harihara Rajan filed a petition before Small Causes court and deposited rent through court.

 

He paid rent for the months of February, March, April, June, August, September, October, November and December 2007 and January 2008. He had not submitted any receipt to show that he paid the rental for the months of May and July 2007. Further, the tenant had been depositing monthly rent from March 2008 onwards through court.

 

Niamuthullah also admitted he received Rs 25,000 from Harihara Rajan towards advance, for which had not issued any receipt. Therefore, Rs 25,000 was with the petitioner. The default was only Rs 5,000 and same may be adjusted from the amount. He said excess amount shall be refunded or to be adjusted towards the rent.  

 

The judge C. Sasikumar pointed out that “the Supreme Court in K. Narasimha Rao vs T.S. Nasimuddin Ahmed 1996, held that the landlord is entitled to receive only one month agreed rent by way of advance and any amount paid in excess of agreed rent of one month by way of advance shall be refunded by landlord to tenant or adjusted towards rent”. 

Relying upon the apex Court order, judge directed Niamuthullah to pay Rs 17,500 after adjusting default amount of Rs 5,000. The judge dismissed the petition.