Dhirani and others v Ganji (Civil Appeal No. 25 of 1946)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Court of Appeal allowed the appeal and restored the magistrate's order that each party bear their own costs. The Court held that where a tenant's persistent failure to pay rent lawfully due gave the landlord good reason to seek possession under the Rent Restrictions Ordinance, the magistrate exercised his discretion judicially in refusing to award costs to the successful tenant, notwithstanding that possession was ultimately refused on grounds of reasonableness.
Outcome
Supreme Court judgment reversed and magistrate's order restored
Facts
The landlord sought possession of premises subject to rent restrictions on grounds of non-payment of rent. Before proceedings were filed, the landlord applied to the Rent Control Board for consent on 11 May. Consent was granted on 9 June. Between those dates but after the Board application, the tenant tendered rent which the landlord refused. The trial magistrate found that while rent lawfully due had not been paid, it was not reasonable in all the circumstances to make an order for possession. The magistrate refused the application but ordered each party to bear their own costs, noting that the tenant's unpunctuality in paying rent justified the landlord in bringing proceedings. The Supreme Court reversed the costs order and ordered the landlord to pay the tenant's full costs. The landlord appealed.
Issues
- Whether the magistrate exercised his discretion judicially in ordering each party to bear their own costs where the landlord's application for possession was refused on grounds of reasonableness despite non-payment of rent.
- Whether it was reasonable for the landlord to proceed with the application for possession given the tenant's history of rent arrears.
Orders
- Appeal allowed.
- Judgment of the Supreme Court set aside.
- Order of the learned Magistrate restored (each party to bear their own costs).
- Costs of the appeal awarded to the appellant in the Supreme Court and in the Court of Appeal.
- Any costs paid by the appellant under the Supreme Court judgment to be refunded.
Rules and key headnotes
Legislation cited (3)
- The Increase of Rent and of Mortgage Interest (Restrictions) Ordinance s.11(1)(a)
- The Increase of Rent and of Mortgage Interest (Restrictions) Ordinance s.4
- Civil Procedure Code s.27
Cases cited (2)
- Ritter v Godfrey [1920] 2 KB 47
- Bostock v. Ramsey Urban Council
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.