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2002 Supreme(Del) 628

High Court Of Delhi
FOOD CORPORATION OF INDIA - Appellant
Versus
KULJINDER PAL SINGH DHILLON - Respondent
Decided On : 05/02/2002

The main legal point established in the judgment is that mere acceptance of rent by the landlord after the notice of tenancy termination is not sufficient to create a fresh tenancy under Section 113 of the Transfer of Property Act.

Headnote:

waiver - tenancy termination - Transfer of Property Act - Section 113, Order 20 Rule 12 CPC - The court discussed the waiver of tenancy termination notice and the grant of mesne profits/user charges under the Transfer of Property Act and Order 20 Rule 12 CPC.

Fact of the Case:

The landlord filed a suit for possession and recovery of rent against the tenant. The trial court decreed the suit in favor of the landlord. The first appellate court upheld the trial court's decision with modifications.

Finding of the Court:

The court found that the acceptance of rent by the landlord after the notice of tenancy termination was not sufficient to waive the notice. The court also upheld the grant of mesne profits/user charges in favor of the landlord.

Issues: The issues included the waiver of tenancy termination notice, grant of mesne profits/user charges, and the right to recover use and occupation charges at a higher rate.

Ratio Decidendi: The court held that mere acceptance of rent by the landlord after the notice of tenancy termination was not sufficient to create a fresh tenancy. The court also upheld the grant of mesne profits/user charges based on different grounds.

Final Decision: Both the appeals were dismissed, and the judgment and decree passed by the first appellate court were upheld. The landlord's claim for mesne profits/user charges was also upheld.

R. . Jain

( 1 ) THESE two Second Appeals rise out of judgment and decree dated 21. 7. 99 passed by the additional District Judge, Delhi bitting as First appellate Court. RSA No. 75/99 has been filed by the fci-tenant and challenges the impugned judgment so far as it passed the decree of possession of the suit premises while Appeal No. 89/99 has been filed by the landlord against the order/direction in regard to the award of mesne profits/user charges f the premises in question.

( 2 ) BRIEFLY the relevant facts leading to these appeals are that Flat No. 602, 6th Floor, Rohit house at 3, Tolstoy Marg, New Delhi was let out to the fci for commercial purpose for a period of three years at a monthly rent of Rs. 3870. 00 vide a lease deed dated 4. 10. 78 and the tenancy was renewed for a further period of two years i. e. w. e. f. 4. 10. 3981 without any increase in the rate. The landlord terminated the fci s tenancy by means of a registered notice dated 11. 3. 1989 and called upon them to deliver the vacant possession of the flat. It was also claimed that the fci had illegall/ withheld the payment of Rs. 21,500. 00. The FCI having failed to hand over the vacant possession of the flat in question and to pay the due rent, the landlord-plaintiff filed a suit for possession and recovery of Rs. 48,000. 00 by giving up a portion of the claim but claiming interest @ 10% p. a. from the date of filing of the suit till its realisation. The suit was contested by the FCI, inter alia, on the grounds that the suit has not been filed, signed and verified by an authorised person on behalf of the pldintiff; plaint did not disclose any cause of action; plaintiff was not entitled to enhancement of rent @ Rs. 327. 00 per month, with regard to withholding of Rs. 21,500. 00, it was explained that a sum of Rs. 21,500. 00 was paid to the Rohit House maintenance Society and Rs. 862. 00 to the New Delhi municipal Corporation and the balance have been paid to the plaintiff vide a cheque dated 1. 9. 88. It was stated that by accepting the cheque for rent without objection, the plaintiff was estopped from raising any plea of the deduction of the said amount. The receipt of the notice dated 11. 3. 89 was not denied, but it was alleged that the notice is illegal, invalid and unenforceable.

( 3 ) ON the pleadings of the parties, the learned trial court framed the following issues.-

1. WHETHER the present suit has been filed signed and verified by the competent person? OPD. 2. whether the present suit does not disclose any cause of action for the recovery of possession? OPD 3. whether the suit is within limitation period? OPP 4. whether the tenancy of defendant has not been terminated in accordance with law? OPD 5. Whether the plaintiff is entitled for recovery of possession and damages and interest, if so, at what rate and for what period? 6. whether by accepting the cheques plaintiff is estopped from raising any plea of deduction of the said amount of rs. 21,500. 68 as alleged by the defendant in preliminary objection No. 6? OPD 7. whether plaintiff is estopped from raising the plea of eviction as they have been accepting the rent regularly?opd 8. Relief?

( 4 ) ON the basis of the evidence and material led at the trial, the trial court answered issues No. 1 to 4 in negative and against the defendant and answering the other issues in favour of the plainttff, the trial court decreed the suit f the plaintiff for recovery of possession of the flat in question and also for recovery of a sum of Rs. 26,500. 00 with interest @ 18% p. a. from the date of filing of the suit till its realisation. Aggrieved by the judgment and decree, the FCI filed an appeal and the first appellate court upheld the finding of the learned trial court on all the issues except issue No. 5 and modified the order of the learned trial court s under:-

1. THE plaintiff was entitled to get possession of the suit property, i. e. flat no. 600, Rohit House, 6th Floor, 3, Tolstoy marg, New Delhi. 2. The plai














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