High Court Of Delhi
DINAR BUILDERS PRIVATE LIMITED - Appellant
Versus
KHODAY DISTILERIES LIMITED - Respondent
Interim Application 8814 of 1997
Decided On : 11/24/1999
TRANSFER OF PROPERTY ACT - SECTION 106 - LEASE - TERMINATION - NOTICE TO QUIT - VALIDITY - SUIT FOR POSSESSION - MAINTAINABILITY - ADMISSION IN WRITTEN STATEMENT - DECREE FOR POSSESSION.
Fact of the Case:
Plaintiff filed a suit for possession of the basement of a building, along with mesne profits and recovery of maintenance and other charges. The Defendant stopped paying rentals from November 1991 onwards, leading to the termination of the lease through a notice dated 15.5.1992. The Defendant disputed the claims, alleging lack of maintenance, discontinuation of electricity connection, and liability for payment of House Tax on the Plaintiff. The Plaintiff filed an application for a decree of possession based on admissions in the Defendant's Written Statement.
Finding of the Court:
The court held that the tenancy was governed by the Transfer of Property Act since the monthly rental exceeded Rs. 3500. The Defendant admitted receiving the notice to quit, but challenged its validity without providing any specific grounds. The court found that the notice complied with the statutory requirements and validly terminated the tenancy.
Issues: 1. Whether the suit for possession was maintainable considering the monthly rental exceeded Rs. 3500 and the tenancy was governed by the Transfer of Property Act? 2. Whether the notice to quit was valid and effectively terminated the tenancy?
Ratio Decidendi: 1. The court held that the suit was maintainable as the tenancy was governed by the Transfer of Property Act and had been validly terminated by service of a notice to quit. 2. The court found that the notice to quit complied with the requirements of Section 106 of the Transfer of Property Act and was served on the Defendant in accordance with the prescribed procedure.
Final Decision: The court allowed the Plaintiff's application for a decree of possession and directed the Defendant to hand over possession of the premises within thirty days. The Defendant was also ordered to pay costs of Rs. 5000 to the Plaintiff.
( 1 ) THIS is a suit for possession of the Basement of B-2/1, B-2/2 and B-2/3, (measuring 1555 sq. ft.) of Deenar Bhawan, 44, Nehru Place, New Delhi together with mesne profits from 1. 7. 92 and recovery of maintenance and other charges. It has been averred in the Plaint, that the monthly rent was Rs. 5441. 00 (Rs. Five thousand four hundred forty one only) which was liable to be increased by 15 per cent after the expiry of three years in the event of the lease being renewed; that renewals did take place from time to time culminating in the rent last paid being Rs. 8274. 00 (Rs. Eight thousand two hundred Seventy four only) per mensem. Service charges were payable by the Defendant @ 40 paise per sq. ft. with effect from 1. 12. 1991, apart from electricity consumption and difference in House Tax. The Defendant is alleged to have stopped paying rentals form November 1991 onwards. As a sequel, the lease was terminated through a notice dated 15. 5. 1992 issued by registered Post, calling upon the Defendant to hand over possession of these premises on the midnight of 30. 6. 1992.
( 2 ) ANOTHER notice dated 26. 11. 1992, for handing over possession of the premises and for payment of monthly damages @ Rs. 10 per sq. ft. i. e. Rs. 15,550. 00 (Rs. Fifteen thousand five hundred fifty only) from 1. 7. 1992 is stated to have been issued by the Plaintiff to the Defendant. Yet another notice appears to have been dispatched demanding vacation of the premises on 30. 4. 1993, and mesne profits Rs. 20. 00 per sq. ft. with affect from 1. 5. 1993. The arrears have been quantified at Rs. 7,50,856. 33 (Rs. Seven lakhs fifty thousand eight hundred fifty six and Thirty three paise only) and further damages at the rate of Rs. 31,000. 00 (Rs. Thirty one thousand only) per month.
( 3 ) THE claims of the Plaintiff have been disputed/denied by the Defendant in its Written Statement in the context of the service charges since the demised premises are stated to have been water logged due to lack of maintenance; electricity dues stated to have been paid till July 1992 whereafter the connection was discontinued; and that the Lease Deed fastened liability for payment of House Tax on the Plaintiff. Thereafter there is a bald averment that all rents have been paid till the Written Statement; it has been admitted that some defaults did occur, which were due to financial difficulties of the Defendant. The receipt of the notices dated 15. 5. 1992 and 26. 11. 1992 have not been denied, but its validity has been cryptically assailed, presumably for the reason that there was no occasion to justify its issuance. There is only an evasive denial of the service of the notice dated 18. 3. 1993 and of the date on which the cause of action arose, which in my opinion, is not sufficient to give rise to an issue on these points.
( 4 ) IN this backdrop, the Plaintiff has filed an application under order XII Rule 6 of the Code of Civil Procedure for the passing of a decree of possession of the suit premises, on the basis of admissions contained in the Written Statement. In its reply to this application, the Defendant has contested it, inter alia, on the submission that the Plaintiff has failed to maintain the premises as a consequence of which it got flooded and goods worth about Rs. 15 lakhs were lost; electric supply was discontinued, that the suit was in effect to preempt the Defendant filing a claim for damages; that the Plaintiff cannot get a decree without proving the averment in the plaint. It has been pleaded that " the notice of termination sent by the Plaintiff is not a valid notice under Section 106 of the Transfer of Property Act," which obviously contains an admission that it had been received.
( 5 ) IN the extant statutory regime, tenancies are governed either by the Delhi Rent Control Act or the Transfer of Property Act. Where the monthly rental, at the time of the filing of the action is not above Rs. 3500. 00 , it is the former Act which ap
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