IN THE HIGH COURT AT CALCUTTA
Krishna Rao, J.
Amalgamated Fuels Limited - Appellant
Vs.
Pradip Kumar Jain - Respondent
IA No: GA 1 of 2022 In CS 173 of 2021Decided On : 03-08-2023
EVICTION SUIT - JURISDICTION - WEST BENGAL PREMISES TENANCY ACT, 1997 - APPLICABILITY - MONTHLY RENT - DETERMINATION - COURT'S POWER TO DISMISS SUIT - ORDER VII, RULE 11, CODE OF CIVIL PROCEDURE, 1908 - SCOPE.
Fact of the Case:
The plaintiff filed a suit for eviction, recovery of possession, and mesne profit against the defendant, alleging that the defendant was a monthly tenant in respect of the suit premises at a monthly rent of Rs. 11,411/- (excluding Corporation Tax). The defendant filed an application under Order VII, Rule 11 read with Section 151 of the Code of Civil Procedure, 1908, seeking dismissal of the suit on the ground that the suit was not maintainable before the Court as the tenancy was governed by the West Bengal Premises Tenancy Act, 1997, and that the monthly rent was Rs. 9,923/-.
Finding of the Court:
The Court found that the issue of the quantum of monthly rent was to be decided only during trial or when the preliminary issue was framed on completion of pleading. The Court held that at this stage, it would not be proper to decide the said issue on an application under Order VII, Rule 11 of the Code of Civil Procedure, 1908, especially when there was no definite evidence with regard to the quantum of monthly rent.
Issues: 1. Whether the monthly rent is Rs. 9923/- per month as claimed by the defendant or Rs. 11,411/- as claimed by the plaintiff. 2. Whether the suit is maintainable before the Court as the tenancy is governed by the West Bengal Premises Tenancy Act, 1997.
Ratio Decidendi: 1. The Court held that the issue of the quantum of monthly rent was to be decided only during trial or when the preliminary issue was framed on completion of pleading. 2. The Court held that at this stage, it would not be proper to decide the said issue on an application under Order VII, Rule 11 of the Code of Civil Procedure, 1908, especially when there was no definite evidence with regard to the quantum of monthly rent.
Final Decision: The Court dismissed the defendant's application under Order VII, Rule 11 read with Section 151 of the Code of Civil Procedure, 1908.
JUDGMENT :
Krishna Rao, J.
1. The plaintiff has filed Civil Suit No. 173 of 2021 against the defendant for eviction, recovery of possession and for mesne profit. In the suit, the defendant has filed the present application being G.A No. 1 of 2022 for dismissal of the suit or in the alternative, the plaintiff of the suit be taken off the file.
2. The defendant has filed the present application on the following grounds:
b. The plaintiff has shown the value of the suit overvalued in order to invoke the jurisdiction of this Court by assessing the mesne profit @ Rs.200/- per sq.ft. which is absurd and imaginary.
3. Mr. Rupak Ghosh, learned Advocate representing the defendant submitted that the monthly rent of the suit schedule premises is Rs. 9,923/- per month and the Municipal Taxes payable by the defendant is Rs. 6,003/- thus the plaintiff cannot file the suit for eviction of the defendant before this Court.
4. Mr. Ghosh submitted that the plaintiff has assessed the mesne profit at the rate of Rs. 200/- per sq. ft. per month is absurd and imaginary and in the event, the assessment is to be believed, the plaintiff is entitled to Rs. 2,02,000/- per month though the last monthly rent as claimed by the plaintiff is Rs. 11,411/- per month.
5. Mr. Ghosh submits that the plaintiff has escalated the monthly compensation for letting out the suit premises to the defendant from the alleged amount of Rs. 11,411/- per month to Rs. 2,02,000/- which is an increase by 1670.22%.
6. Mr. Ghosh relied upon the letter dated 20th April, 2019 issued by the plaintiff to the defendant which the plaintiff has suppressed in the suit and in the said letter, the plaintiff has informed the defendant that due to increase of the component of the Kolkata Municipal Corporation Tax, the plaintiff is compelled to increase the rent and municipal taxes by 15% from April’ 2019. He submits that from the said letter, it is admitted that the monthly rent is Rs. 9,923/- and 15% is to be increased on Rs. 9,923/-.
7. Mr. Ghosh submits that in the absence of the mandatory statutory notice under Section 6 of the West Bengal Premises Tenancy Act, 1997, the suit is not maintainable and in the present suit, the plaintiff had not issued any notice under the said Act.
8. Mr. Ghosh submitted that there is no Premises No. 87A, Park Street as described by the plaintiff. He submits that as per Municipal records only Premises No. 87, Park Street is in existence.
9. Mr. Ghosh relied upon the Judgment reported in 2015 SCC Online Cal 507 (State Trading Corporation of India Limited & Anr. vs. Glencore Grain B.V.) and submitted that “It is the duty of the Court in such a situation, on full consideration of the materials on record to form an opinion if the suit is vexatious or an abuse of process of the Court in the sense that it is bogus and irresponsible litigation, and in the event the answer is in the affirmative, the Court should dismiss the suit in limine”.
10. Mr. Ghosh relied upon the unreported judgment passed by the Hon’ble Division Bench of this Court in APD No. 265 of 2017 in CS No. 354 of 2012 dated 25th June, 2019 (EIH Ltd. vs. MS.NADIA A VIRJI) wherein the Hon’ble Court held that “clearly, the rent does not include the rates and taxes. Section 3 (f) refers to rent and has nothing to do with municipal rates and taxes. If the rent component is upto Rs. 10,000/- in respect of any non-residential premises, the tenant at such nonresidential premises enjoys the protection under the said Act. The expression used in Section 3 (f) is “more than”. The quantum indicated in the relevant sub-clause is “ten thousand rupees”. In other words, if the rent at any premises used for non-residential purpose is more than ten thousand rupees per month, it would stand excluded from the purview of the Act.”
11. Mr. Ghosh submitted that the order of the Hon’ble Division Ben
Smt. Nandita Bose vs. Ratanlal Nahata
Srihari Hanumandas Totala vs. Hemant Vithal Kamat & Ors.
Shakti Bhog Food Industries Limited vs. Central Bank of India & Anr.
Nusli Neville Wadia vs. Ivory Properties & Ors.
Alpana Gupta through Power of Attorney Holder vs. APG Towers Private Limited & Anr.
Mayar (H.K.) Ltd. & Ors. vs. Owners & Parties, Vessel M.V. Fortune Express & Ors.
Liverpool & London S.P. & I Association Ltd. vs. M.V. Sea Success I & Anr.
Smt. Nandita Bose vs. Ratanlal Nahata
Appollo Zipper India Limited vs. W. Newman and Company Limited
The Court's power to dismiss a suit under Order VII, Rule 11 of the Code of Civil Procedure, 1908 is limited to cases where there is no definite evidence with regard to the quantum of monthly rent.
The valuation of a suit for recovery of possession must comply with statutory provisions, and claims for mesne profits require a declaration of unauthorized occupation.
The main legal point established in the judgment is the determination of mesne profits for unauthorized use and occupation of premises by a tenant, and the court's authority to decree recovery of suc....
The valuation of a suit is determined by the plaintiff's estimation unless it is grossly improper, and issues of mesne profits must be resolved at trial.
(1) Once a decree for possession has been passed and execution is delayed depriving decree holder to reap fruits, it is necessary for Appellate Court to pass appropriate orders fixing reasonable mesn....
Point of Law : Owner of the property is required to be compensated by awarding mesne profit. This has to be realistic and in tune with the present market rent. However, there is no material with this....
Owner of the property is required to be compensated by awarding mesne profit. This has to be realistic and in tune with the present market rent.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.