Facts of the Case

The appellants, M/s JUD Cement Ltd. and another, filed an application before the Gauhati High Court under Order XLI Rule 5 read with Section 151 of the Code of Civil Procedure seeking a stay of the judgment and decree dated 24.05.2022 passed by the Civil Judge No. 3, Kamrup (M), Guwahati in Title Suit No. 27/2020.

The Trial Court had passed a decree directing eviction of the tenant and recovery of rent arrears amounting to ₹1,47,23,100/-, allegedly based on an admission made by the defendant-tenant. The connected Regular First Appeal challenging the decree had already been admitted by the High Court. The appellants had also deposited ₹30 lakh before the Trial Court pursuant to an earlier direction.

 

Issues Involved

  1. Whether the execution and operation of the eviction decree should be stayed during the pendency of the appeal.
  2. Whether the alleged admission relied upon by the Trial Court required examination during the appeal.
  3. Whether the appellants were entitled to interim protection subject to appropriate conditions.

 

Petitioners’ Arguments

  • The appellants contended that the eviction decree was under challenge in the admitted Regular First Appeal.
  • They submitted that the Trial Court had passed the decree on the basis of an alleged admission whose admissibility itself was disputed.
  • They further pointed out that they had already complied with the earlier direction of the High Court by depositing ₹30 lakh before the Trial Court and sought protection against execution of the decree during pendency of the appeal.

 Respondents’ Arguments

  • The respondents opposed the grant of unconditional stay and sought enforcement of the decree.
  • They claimed entitlement to recover the decretal benefits and receive rent during the pendency of the appeal.
  • They also sought liberty to claim enhanced rent whenever such entitlement arose under law during the appeal proceedings.

Court Order / Findings

The Gauhati High Court observed that the appeal against the impugned judgment had already been admitted and that the principal dispute related to the admissibility of the alleged admission on which the Trial Court had based the decree.

Considering the circumstances, the Court stayed the operation of the judgment and decree subject to the following conditions:

  • The respondents were permitted to withdraw the amount of ₹30 lakh deposited before the Trial Court after filing the necessary application, proper verification, and furnishing an appropriate bond.
  • The appellants were directed to continue paying monthly rent of ₹3,00,550/- (excluding GST) on or before the 15th day of every month into the bank accounts of the plaintiffs in equal proportion.
  • The Court clarified that failure to deposit the monthly rent as directed would automatically vacate the stay without any further order, enabling the decree holders to execute the decree.
  • Liberty was also granted to the respondents to file an appropriate application seeking payment of enhanced rent if such entitlement arose during the pendency of the appeal.

Accordingly, the interim application was disposed of with the above directions.

Important Clarification

  • Mere admission of an appeal does not automatically result in stay of the decree.
  • While granting stay under Order XLI Rule 5 CPC, the Court may impose equitable conditions to safeguard the interests of both parties.
  • Deposit of decretal amounts and regular payment of rent can be directed as conditions for continuation of stay.
  • Non-compliance with the conditions imposed by the Court may automatically result in vacation of the interim stay without requiring any further judicial order.

Link to Download the Order https://www.mytaxexpert.co.in/uploads/1785395233_2326compressed.pdf

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