MOHD. SALIMUDDIN vs MISRI LAL AND ANOTHER

The Supreme Court held that the tenant was not in arrears of rent under the Bihar Buildings (Lease, Rent & Eviction) Control Act, specifically Section 3, which prohibits tenants from advancing loans to landlords. The Court emphasized that applying the doctrine of pari delicto in this context would unjustly penalize the tenant, who was in a position of exploitation by the landlord. The judgment of the lower appellate court was restored, affirming that the tenant's loan should be adjusted against the rent owed, thereby upholding the protective intent of the statute.