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1998 Supreme(Del) 654

High Court Of Delhi
SOMANI MARKETING PRIVATE LIMITED - Appellant
Versus
SUBHASH C.RASWANT - Respondent
Decided On : 08/31/1998

Headnote:Transfer of Property Act, 1882 - Section 53-A — Application of — Renewal of Lease — Oral negotiations — Preparation of draft lease — No concluded contract came into existence — Suit for specific performance is not maintainable — Plaint rejected.

M. S. A. Siddiqui, J. (ORAL)

( 1 ) THE plaintiffs filed the present suit seeking, inter alia, the following reliefs :-

(A) pass a decree of specific performance against the Defendant, thereby directing the Defendant to specifically perform his obligation to register the relevant Lease Deed for the period from 1st August, 1998 to 31st July, 2000 in respect of the suit premises.

(B) in case the Defendant fails to have the Lease Deed or Lease Deeds REFERRED TO to in paragraph (a) above registered, this Hon ble court may appoint an Officer of the court to have the Lease Deed registered;

(C) pass a decree of declaration that the Plaintiff No. 1 is entitled to continue as tenant of the said premises and is entitled to remain in possession thereof as such tenant on payment of the agreed monthly rental of the demised premises.

(D) pass a decree of permanent injunction restraining the Defendant his servants and agents from of dispossessing of the plaintiff s from the suit premises being the Ground and First Floor of building and property situated at No. D-979, New Friends Colony, New Delhi - 110 065.

(E) pass a decree of permanent injunction restraining the Defendant his servants and agents in interfering in the peaceful enjoyment of the suit premises being the Ground and First Floor of building and property situated at No. D-979, New Friends Colony, New Delhi - 110 065;

(F) the costs of this suit be awarded;

( 2 ) ACCORDING to the plaintiffs, the defendant is the owner of the premises bearing No. D-979, New Friends Colony, New Delhi (hereinafter to be REFERRED TO as the suit premises ). Both the companies (plaintiffs Nos. 1 and 2) are under the common management and control of their Chairman Mr. D. K. Somani. On 19th July, 1990, the plaintiff No. 2 took the suit premises on rent for a period of three years. After the expiry of the said lease, a fresh lease was entered into by the parties on 8th February, 1993 whereby the rent of the suit premises was increased to Rs. 25,000. 00 per month. On expiry of the said lease, the same was renewed for a further period of three years under the lease deed dated 25th July, 1995 and the rent was increased to Rs. 30,000. 00. It is stated in the plaint that on 20th July, 1998, the defendant expressed his intention to renew the lease and after negotiations, the defendant agreed to renew the lease for a further period of two years and for that purpose, the parties agreed to enter into a fresh lease agreement. According to the terms of the agreement, the suit premises were to be let out to the plaintiff No. 1 at a rent of Rs. 37,500. 00 per month and the plaintiff No. 1 was also required to pay to the defendant an amount of Rs. 1,25,000. 00 as security deposit. It is further pleaded that pursuant to the advice of the defendant, the plaintiff No. 1 got a draft lease agreement prepared and handed it over to the defendant for his approval. On 1st August, 1998, defendant made certain corrections in the draft and returned it to the plaintiff No. 1. By the letter dated 1st August, 1998 the plaintiff No. 1 conveyed its approval to the defendant with regard to the terms and conditions as amended by the defendant in the said draft. In consideration of the said agreement, the plaintiff No. 1 also paid to the defendant a sum of Rs. 2,25,000. 00 towards advance rent and hire charges of the fixtures and fittings for three months vide two cheques dated 1st August, 1998. The defendant accepted both the aforesaid cheques and asked the plaintiff No. 1 to procure the necessary stamp papers for the execution and registration of the lease deed. On 18th August, 1998, the plaintiff No. 1 purchased the requisite stamp papers for an amount of Rs. 9,000. 00 for the purpose of execution and registration of a lease deed between the parties. Surprisingly, on 19th August, 1998, the defendant left the country without executing the deed of lease. Hence this suit.

( 3 ) THE document dated 1st August, 1998 is the foundation of the plaintiff






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