A. R.M. DAHALAN, Appellant, and M. M. YOOSOOF, Respondent

032-NLR-NLR-V-66-A.-R.M.-DAHALAN-Appellant-and-M.-M.-YOOSOOF-Respondent.pdf


Dahalan v. Yoosoof
143
1964)Present: Sri Skanda Rajah, J.A. R. M. DAHALAN, Appellant, and M. M. YOOSOOF, RespondentS. G. 124/1962— C. R. Colombo, 82216
Rent Restriction Act (Gap. 274)—Sections 8 and 23—Payment of key money—Illegality—Set-off against arrears of rent not permissible.
Payment of key money is illegal under sections 8 and 23 of the RentRestriction Act. Such money cannot, therefore, be set off by the tenantagainst arrears of rent.
Appeal from a judgment of the Court of Requests, Colombo.
C. Ranganathan, with A. Sivagurunathan, for Plaintiff-Appellant.
No appearance for Defendant-Respondent.
14:4
SRI SKANDA RAJAH, J.—Dahalan v. Yaosoof
February 6, 1964. Sri Skanda Rajah, J.—
The learned Commissioner of Requests has found that the tenantwas in arrears of rent. He has also found that a sum of Rs. 3,000 waspaid as key money in respect of this tenancy and, in effect, thoughthe rent had not been paid, if the sum of Rs. 3,000 paid at thecommencement of the tenancy is taken into consideration the rent wasnot in arrears. Payment of such key money may properly be termed aspremium under Section 8 of the Rent Restriction Act {Chapter 274).Such a payment is an offence under Section 23 of this Ordinance. Sucha payment is therefore illegal. On the authority of Vitharne v. de Zylva the defendant is precluded from setting off this sum of Rs. 3,000 inrespect of the payment of rent. Therefore I would allow the appealwith costs in both Courts.
Appeal allowed. 1
1 (1954) 56 N. L. B. 57.