Landmark ruling for people living on rent, Supreme Court says this

Is failure to pay rent a criminal offence or civil? The Supreme Court has given a landmark ruling in favour of tenants saying that case cannot be made under sections of the Indian Penal Code (IPC) if a tenant does not pay the rent. The apex court made the statement while quashing a recent case filed by a landlord against a tenant which it was hearing. Failure to pay rent can invite civil proceedings but not a criminal case.

Relief from the top court

In a case where an FIR had been filed against a tenant under the Sections 403 (dishonest appropriation of property) and Section 415 (cheating), the SC was hearing an appeal against an Allahabad High Court order. The Allahabad HC had refused to quash the FIR against the tenant, after which the matter reached the apex court.

Failure to pay rent may have civil consequences but is not a penal offence under IPC

Quashing the FIR of the landlord, the Supreme Court bench of Justice Sanjiv Khanna and Justice Bela M Trivedi said as per Live Law, “We are of the opinion that no criminal offence is made out, even if we accept the factual assertions made in the complaint, which was registered as the First Information Report. Failure to pay rent may have civil consequences but is not a penal offence under the Indian Penal Code, 1860 (for short “IPC”). Mandatory legal requirements for the offence of cheating under Section 415 and that of misappropriation under Section 403 IPC are missing.”

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The SC further added that the dispute regarding pending rent arrears and vacating of the premises will be settled under civil proceedings.