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2016 Supreme(AP) 302

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
A. Ramalingeswara Rao, J.
SRR Hospitalities Pvt. Ltd., Rep. by its Director Cherukuru Srikanth - Petitioner
Vs.
Balina Srimannarayana - Respondent
Civil Revision Petition Nos. 1889, 1987, 2023, 2024, 2025, 2038, 2048 and 2099 of 2016
Decided On : 27-07-2016

Advocates Appeared:
For the Petitioner: Sri Y.V Anil Kumar
For the Respondent: Sri M.V.S Suresh Kumar

Headnote:

Tenancy and Land Law – West Bengal Premises Tenancy Act, 1956 – Section 17(3) – Petitioner herein is defendant in OS on file of VII Additional District Judge-cum-Family Court, Ongole. The suit was filed by the respondent herein for recovery of an amount with subsequent interest at 36% pa., seeking vacation of the defendant from plaint A schedule property and hand over vacant possession of the same – Alleging that suit schedule property of an extent of 2020 sq. meters located in Survey and in RTC Bus Stand premises in Ongole Town within the Municipal Corporation Limits of Ongole belongs to APSRTC – APSRTC advertised inviting bids for developing said property in month of October 2005 and the plaintiff was the only successful bidder. After accepting the bid, a development agreement was entered for development, construction, operation and management on 02.05.2006 As per the said development agreement, the plaintiff is entitled to sub-lease the built up space to any third party during the license period of 30 years commencing from plaintiff constructed a multi-storied commercial complex under the name and style of Jyothi Plaza and the defendant approached the plaintiff for utilization of an extent of 41,764.88 sq. feet of built up area situated in Shop in ground floor and balance extent in first floor, second floor and third floor as described in plaint B schedule. A lease and license agreement was entered between the plaintiff and the defendant for carrying on hotel and hospitality services license is for a period of 10 years commencing from 01.04.2009 In pursuance of the said licence, the property was delivered to the defendant – Though defendant commenced its business, it failed in payment of license fee regularly as per the terms of the agreement. One of the terms of the license stipulates that in case of default, penal interest at 36% per month on over due license fee (rent) shall be paid and in case of continuous default for a period of three months the license stands cancelled – Defendant committed default and the amounts paid by the defendant were adjusted till 01.11.2010 The plaintiff got issued a notice through his counsel to the defendant on 23.08.2011 and 10.11.2011 and after receipt of the notices, it paid one month rent – Held, there is no occasion for the trial Court to pass any order striking off the defence by applying its mind independently. Assuming for a moment that under the deeming order of the Honble Supreme Court, if the trial Court passed an order striking off the defence after applying its mind to the facts of case, even then it is held that such an order is a discretionary order. In view of the striking off the defence, the dismissal of the applications filed by the defaulted defendant are also discretionary orders passed by the trial Court and this Court can straight away dismiss the CRPs challenging such orders. Neither the trial Court nor this Court can go into merits of such applications filed by the defaulted defendant after his defence was struck off. In view of the same, the decisions cited by the learned counsel for the respondent in Surya Dev Rai v. RamChander Rai (3 supra), Shalini Shyam Shetty v. Rajendra Shankar Patil (4 supra), Radhey Shyam v. Chhabi Nath (5 supra) and Jai Singh v. Municipal Corporation of Delhi (6 supra) are not required to be examined by this Court – Accordingly, this Court holds that the orders passed by trial Court dismissing the applications filed by the defaulted tenant are not erroneous warranting interference of this Court – Petitions are, dismissed. (Paras 16, 17 and 18)

Order :

A. RAMALINGESWARA RAO, J.

All these Civil Revision Petitions are being disposed of by this common order as they arise out of the same Original Suit which is pending between the parties.

2. The petitioner herein is the defendant in OS No. 173 of 2013 on the file of the VII Additional District Judge-cum-Family Court, Ongole. The suit was filed by the respondent herein for recovery of an amount of Rs. 2,05,11,560/- with subsequent interest at 36% pa., seeking vacation of the defendant from plaint A schedule property and hand over vacant possession of the same.

3. The suit was filed alleging that the suit schedule property of an extent of 2020 sq. meters located in Survey Nos. 11/1, 11/2, 10/2A and 10/2B in RTC Bus Stand premises in Ongole Town within the Municipal Corporation Limits of Ongole belongs to APSRTC. The APSRTC advertised inviting bids for developing the said property in the month of October 2005 and the plaintiff was the only successful bidder. After accepting the bid, a development agreement was entered for development, construction, operation and management on 02.05.2006 As per the said development agreement, the plaintiff is entitled to sub-lease the built up space to any third party during the license period of 30 years commencing from 02.05.2006 The plaintiff constructed a multi-storied commercial complex under the name and style of Jyothi Plaza and the defendant approached the plaintiff for utilization of an extent of 41,764.88 sq. feet of built up area situated in Shop Nos. 26, 31 and 37 in ground floor and balance extent in first floor, second floor and third floor as described in plaint B schedule. A lease and license agreement was entered between the plaintiff and the defendant for carrying on hotel and hospitality services on 09.02.2009 The license is for a period of 10 years commencing from 01.04.2009 In pursuance of the said licence, the property was delivered to the defendant. It was alleged that though the defendant commenced its business, it failed in payment of license fee regularly as per the terms of the agreement. One of the terms of the license stipulates that in case of default, the penal interest at 36% per month on the over due license fee (rent) shall be paid and in case of continuous default for a period of three months the license stands cancelled. The defendant committed default and the amounts paid by the defendant were adjusted till 01.11.2010 The plaintiff got issued a notice through his counsel to the defendant on 23.08.2011 and 10.11.2011 and after receipt of the notices, it paid one month rent. Though the defendant committed default in payment of rent for a continuous period of three months, he allowed the defendant to continue in possession at its request. Though the plaintiff referred the dispute to an Arbitrator through a letter on 18.10.2012 requesting him to act as an Arbitrator between the plaintiff and the defendant and the Arbitrator though expressed his consent on 20.10.2012, the defendant did not accept. There were exchange of notices between the plaintiff and the defendant, which ultimately lead to the filing of the above suit.

4. A detailed written statement was filed by the defendant denying the plaint averments. It was specifically averred that the plaintiff chose the Arbitrator by himself without there being any agreement as such for adjudication of the dispute by the Arbitrator, there is no dispute with regard to terms of the agreement but the dispute relates to the claims and rights on the property and hence the Arbitrator cannot enter on reference. It was further stated that the plaintiff made illegal and unauthorized construction of fourth and fifth floors contrary to the sanctioned plan of Ongole Municipal Corporation. There are no basic amenities like water and drainage and the plaintiff did not provide proper approach for the building. In fact the Munici


































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