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2014 Supreme(Cal) 577

High Court of Judicature at Calcutta
DEBANGSU BASAK, J.
Tara Properties Pvt. Ltd.
Versus
ARCL Organics Ltd.
C.S. No. 82 of 1986 & E.O.S. No. 6 of 1987
Decided On : 25-09-2014

Advocates Appeared:
For the Plaintiff:Saugata Chatterjee, Advocate.
For the Defendant:Pradip Kr. Dutta, Senior Advocate, Rajarshi Dutta, Sandip Kr. Dutta, Shyanti Dutta, Advocates.

The West Bengal Premises Tenancy Act, 1956 does not apply to leases for commercial purposes.

Headnote:

LANDLORD AND TENANT - Lease - Eviction - Monthly tenancy - West Bengal Premises Tenancy Act, 1956 - Applicability - Lease for commercial purpose - Section 3 of the Act - Applicability - Notice to quit - Validity - Grounds for eviction - Default in payment of rent and municipal taxes - Sub-letting - Addition and alteration without consent - Suit for mesne profits - Appointment of Special Referee for quantification of mesne profit and occupation charges.

Fact of the Case:

The plaintiff filed a suit for eviction and mesne profits against the defendant. The plaintiff claimed that the defendant was in default of payment of rent and municipal taxes, had sub-let the premises without the plaintiff's consent, and had carried out additions and alterations to the premises without the plaintiff's consent. The defendant claimed that it was a monthly tenant and that the tenancy was protected under the West Bengal Premises Tenancy Act, 1956.

Finding of the Court:

The court held that the lease was for a commercial purpose and that Section 3 of the West Bengal Premises Tenancy Act, 1956 was not applicable. The court also held that the notice to quit was valid and that the defendant had committed breaches of the lease agreement. The court decreed the suit for eviction and appointed a Special Referee to quantify the mesne profit and occupation charges.

Issues: 1. Whether the defendant is a monthly tenant and entitled to protection under the West Bengal Premises Tenancy Act, 1956? 2. Whether the plaintiff refused to accept the rent and service charge tendered by the defendant? 3. Whether the defendant committed breach and/or violation of the terms of the lease dated 29th September, 1965? 4. Whether the termination of the lease by notice dated 21st April, 1981 is bad? 5. Whether the plaintiff has any cause of action to file the suit and whether the suit is otherwise maintainable?

Ratio Decidendi: 1. The West Bengal Premises Tenancy Act, 1956 does not apply to leases for commercial purposes. 2. The notice to quit was valid as it was served on the defendant more than a month before the expiry of the lease term. 3. The defendant committed breaches of the lease agreement by defaulting in payment of rent and municipal taxes, sub-letting the premises without the plaintiff's consent, and carrying out additions and alterations to the premises without the plaintiff's consent.

Final Decision: The court decreed the suit for eviction and appointed a Special Referee to quantify the mesne profit and occupation charges.

JUDGMENT

DEBANGSU BASAK, J.

Two suits between the same parties are taken up together for hearing.

The plaintiff filed a suit for eviction before the learned City Civil Court at Calcutta being Title Suit No. 1583 of 1981. The plaintiff also filed a suit claiming money decree on account of mesne-profits being Suit No. 82 of 1986 before this Court. The suit being Title Suit No. 1583 of 1981 was transferred to this Hon’ble Court under Clause 13 of the Letters Patent, 1865 and was renumbered as E.O.S. No. 6 of 1987.

In the first suit being E.O.S. No. 6 of 1987 the plaintiff claims that, an indenture of lease dated September 29, 1965 was entered into between the parties. By such indenture of lease the plaintiff granted the defendant lease of an office space having an area of 3,851 square feet on the second floor of the premises No. 13 Camac Street, Kolkata at the monthly rent of Rs. 3,851/- for a period of 21 years commencing from January 1, 1964. The Plaintiff claims that, under the terms and conditions of such deed of lease the defendant is liable to pay all rates and taxes assessed by the Kolkata Municipal Corporation in respect of the demised premises and all enhancements of the occupier’s shares. The defendant paid the enhanced occupier’s shares up to March 31, 1973 and failed, neglected to pay with effect from April 1, 1973. The plaintiff claims a sum of Rs. 16,636.32p to be due and payable on account of the enhanced share of occupier’s tax for the period from April 1, 1973 to March 31, 1981 by the defendant.

The plaintiff claims that, the defendant is also a defaulter of payment of monthly rent for the months of June and October 1980 and on and from January 1981.

The plaintiff states that, the lease deed provides for earlier determination in the event the enhanced Municipal rates and taxes are not paid and there is default in payment of rent. The defendant committed defaults in payment of enhanced municipal rents and taxes. Consequently the plaintiff issued a notice dated April 21, 1981 through its advocate, determining the lease and calling upon the defendant to quit, vacate and deliver possession of the demised premises on the expiry of the last day of May, 1981.

During the pendency of E.O.S. No. 6 of the 1987 the lease dated September 29, 1965 expired by efflux of time. The plaint was amended by incorporating the fact of expiry of lease by efflux of time. The plaint was also amended to reflect the contentions of the plaintiff that, the defendant had carried out additions and alterations in the demised premises without the consent of the plaintiff and in breach of the terms and conditions of the lease. The defendant had allegedly damaged the outer wall. The defendant had allegedly sub-let portions of the demised premises in breach of the terms and conditions of the deed of lease.

The defendant has filed a written statement. After the amendment of the plaint, the defendant filed an additional written statement. The defendant claims that, it paid the enhanced share of the corporation tax till March 31, 1973. It requested the plaintiff to submit certificate from the corporation regarding payment of the enhanced tax for the occupier share. Since the plaintiff did not produce any valid receipt of payment of corporation tax, the defendant claims that, it is not liable to pay the same. On the question of default of payment of rent, the defendant claims that, the rent for the period of June to December 1980 was paid to the plaintiff by way cheques issued on diverse dates. The plaintiff did not present the same within the period of validity of such cheques. The defendant has deposited a sum of Rs. 16,636.32p in Court to the credit of the plaintiff.

The defendant denies committing any breach of the terms and conditions of the lease deed. The defendant claims not to have received the notice to quit dated April 21, 1981. The defendant claims that it is a monthly tenant and that the tenancy is protected under the West Bengal Premises


























































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