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2015 Supreme(Cal) 708

IN THE HIGH COURT OF CALCUTTA
Soumen Sen, J.
Auroshikha Vinimay Pvt. Ltd. - Plaintiff
Versus
Kai Commercial Pvt. Ltd. - Defendant
G.A. No. 825 of 2015 in C.S. No. 295 of 2014
Decided on : 14-12-2015.

Advocate Appeared:
For the Plaintiff :Mr. Ahin Choudhury and Mr. Utpal Bose, Senior Advocates, Mr. Anuj Singh, Mr. S.E. Huda and Mr. A.K. Singh, Advocates.
For the Defendant :Mr. Krishnendu Gupta, Mr. C.K. Saha and Mr. Navneet Mishra, Advocates.

The Court held that the Civil Court had jurisdiction to determine the issues involved in the proceeding, even though there were pending proceedings under the Securitisation Act and the Recovery of Debts Due to Banks and Financial Institutions Act, as the Debt Recovery Tribunal did not have the jurisdiction to adjudicate the rights and liabilities of the parties arising out of the Leave and License Agreement.

Headnote:

LEAVE AND LICENSE AGREEMENT - UNPAID LICENSE FEE - MAINTAINABILITY OF APPLICATION - JURISDICTION OF CIVIL COURT - SALE AGREEMENT - ORAL AGREEMENT - SUMMARY PROCEDURE - ISSUES - RATIO DECIDENDI - FINAL DECISION

Fact of the Case:

Plaintiff filed an application for a decree of vacant and peaceful possession of the property, alleging that the defendant, who was in occupation of the property under a Leave and License Agreement, had failed to pay the agreed license fees and continued to occupy the property. The defendant raised preliminary objections regarding the maintainability of the application and the jurisdiction of the Civil Court in view of the pendency of proceedings under the Securitisation Act and the Recovery of Debts Due to Banks and Financial Institutions Act. The defendant also claimed that there was a concluded contract for sale of the property and that the plaintiff was bound by the said contract.

Finding of the Court:

The Court held that the application was maintainable as it was filed within the prescribed period and that the Civil Court had jurisdiction to determine the issues involved in the proceeding. The Court further held that the defendant had failed to establish the existence of a concluded contract for sale and that the plaintiff was entitled to a decree for unpaid license fee.

Issues: 1. Whether the application was maintainable? 2. Whether the Civil Court had jurisdiction to determine the issues involved in the proceeding? 3. Whether there was a concluded contract for sale of the property?

Ratio Decidendi: 1. The application was maintainable as it was filed within the prescribed period and that the Civil Court had jurisdiction to determine the issues involved in the proceeding. 2. The defendant had failed to establish the existence of a concluded contract for sale and that the plaintiff was entitled to a decree for unpaid license fee.

Final Decision: The Court passed a decree in favor of the plaintiff for a sum of Rs. 38,48,000/- and relegated the other claims to suit.

JUDGMENT :

Soumen Sen, J.

This is an application filed by the plaintiff under Chapter XIIIA of the Original Side Rules of High Court praying, inter alia, for a decree for vacant and peaceful possession of Premises No.12A, Camac Street, Kolkata-700017.

2. The case of the plaintiff in short is that the plaintiff is the owner of two flats being Flat No.1A and 1B on the first floor along with two servant quarters, measuring about 3216 sq. ft. situated at Premises No.12A, Camac Street, Kolkata-700017.

3. The defendant was in occupation of the said property in terms of a Leave and Licence Agreement dated 26th September, 2012 since terminated on 23rd May, 2014.

4. In or about September 2012, the defendant approached the plaintiff for letting out the said property as the defendant represented that they require a suitable space in central Kolkata for running a restaurant. Following such request a Leave and Licence Agreement dated 26th September, 2012 was entered into between the parties in respect of the said premises. The said agreement was for a period of three years with effect from 1st November, 2012 till 31st October, 2015. In terms of the agreement, the defendant was under an obligation to pay licence fees at Rs. 100/- per sq. ft. per month equivalent to Rs. 3,21,600/- for a period of three years in which Rs. 51,000/- was agreed to be paid for the first 16 months while the balance amount of Rs. 2,70,000/- was to be adjusted against payment towards Corporation rates and taxes, electricity dues and building maintenance charges. Under the said agreement after a period of 16 months from 1st November, 2012, that is, on and from March, 2014, the defendant shall deposit a sum of Rs. 19,26,000/- as interest free refundable security deposit. On the basis of the aforesaid agreement, the defendant was put into possession. The defendant, however, has failed and neglected to pay the agreed licence fees and continued to use, occupy and exploit the said space for running a restaurant therefrom. The plaintiff claims that a sum of Rs. 39,07,573/- is due and payable on account of unpaid licence fee from 1st November, 2012 to 23rd May, 2014.

5. The defendant defaulted in making payment of Rs. 19,26,000/- towards the security deposit. The cheque issued by the said defendant in partial discharge of its liability for the aforesaid sum, bearing No.34189 dated 1st March, 2014 was dishonoured on presentation and was returned to the plaintiff with endorsement insufficient funds.

6. In view of the aforesaid, the plaintiff issued a notice under Section 106 of the Transfer of property Act on 23rd March, 2014 terminating the Leave and Licence Agreement dated 26th September, 2012 and consequently called upon the defendant to deliver vacant possession of the premises within 15 days from the receipt thereof. The defendant, however, has failed and neglected to make over possession. Hence the suit and the application.

7. The defendant has taken a preliminary point as to the maintainability of this application by citing proviso to Rule 3 of Chapter XIIIA of the Original Side Rules on the ground that the said summon was taken out beyond the time stipulated under the said Rules. It is submitted that the plaint was affirmed on 16th August, 2014 and presented on 18th August, 2014. The writ of summons was issued on 26th August, 2015. Subsequently, the amendment of plaint was allowed on 16th September, 2014. On 16th February, 2015 an order was passed in which a direction was given for filing written statement upon payment of costs by 27th February, 2015 along with other consequential directions for inspection and discovery of documents. The suit was directed for trial fairly at the top of the list on 30th March, 2015. The defendant in terms of the order on 27th February, 2015 has filed a written statement. This application has been taken out on 10th March, 2015 which is beyond time.

8. The second objection appears to be that the plaintiff has suppressed the fact that secured cred



























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