In Brief
The appellant, a tenant in a residential property since 2011, stopped paying rent in July 2014 despite an initial lease and extended lease agreement. The landlord sued for recovery of possession, arrears, and other relief. The tenant claimed he had executed Agreements to Sell with the landlord for purchasing the property, which should have terminated the tenancy. The Trial Court passed judgment solely on admission of facts under Order XII Rule 6 CPC, granting the landlord possession without trial. The High Court upheld this. The Supreme Court allowed the appeal, holding that the discretionary power to decree on admission cannot be exercised when the tenant raises a substantial defence (the Agreements to Sell) that requires appreciation of evidence. The Court remitted the case for full trial but directed the trial court to first determine the amount of rent to be paid with annual increases and deposit arrears pending trial outcome.
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