High Court Of Delhi
INTERCRAFT LIMITED - Appellant
Versus
CAPITAL BOOT HOUSE - Respondent
Anjana Bali, ARUN MOHAN, Ashok Sapra, CHITRA MARKANDEYA, D.N.Sawhney, G.S.SISTANI, H.P.SINGH, P.N.LEKHIInterim Application 8829 of 1994
Decided On : 08/24/1995
Order 39, Rule 1 & 2 — Interim injunction sought by the plaintiff to continue the occupation of the premises in terms of the franchise agreement — The defendant entitled to fix payment under the terms of the agreement-All expenses of the shop reimbursed by the plaintiff — The balance of convenience Iie in favor of plaintiff who is in occupation of the premises — Interim injunction to protect the business of the plaintiff, granted. Order 39 Rule 4 — Application seeking vacation of interim injunction — Failure to file reply to the application, in the facts and circumstances of the case, does not per se entitle the defendant to have the order of interim injunction set aside or modified on this ground alone.
Held:
The material on record shows that Intershoppe is being run in the premises in question since 1980 tilt the date of the suit. The last document between the parties has taken place on 19.9.1991 and it was for a period of three years. But even after the eflux of the period mentioned in the said agreement the business was carried. It has been mentioned by the plaintiff as well as by the defendants that some negotiations and talks were taking place between the dale of the suit and after 19.9.1994. But it is very pertinent to note that neither the plaintiff nor the defendants have disclosed as to what those talks were and when none of them have come before the Court as to what were the talks and when the business is being carried on continuously in the premises in question from 1980 till the date of the suit then it is obvious that the plaintiff had continued to carry out his business in the premises in question, as earlier, From the material on record it is not possible to hold that the plaintiff had not come in possession of the premises in question without the consent of the defendants. It is also not possible to hold from the material on record that the plaintiffs forcibly took the possession of the premises in question on 3.10.1994, as claimed by the defendants. thereforee, in these circumstances, it will have to be held that on the date of the suit the plaintiff was in possession of the premises in question. Plaintiffs possession could not be disturbed without due process of law, as claimed by the plaintiff.
It is quite clear that the mazennine floor of B-24, Cannaught Place is in the exclusive possession and enjoyment of the defendants. Similarly, from the documents produced by the defendants it is quite clear that in the premises in question, i.e. the ground floor of B-24, Cannaught Place, New Delhi, the defendants were not selling any other articles besides the products of the plaintiff since the year 1980. The defendants have not also claimed that they were selling any other items besides the products of the plaintiff in the premises in question. The documents and record also clearly show that all the furniture, show room equipments, the carpet and air-conditioning in that room is at the costs of the plaintiff. Thus, except the premises of the ground floor, all the equipment of the shop is of the ownership of the plaintiff. thereforee, in the above circumstances, the balance of convenience will lie in favor of the plaintiff to continue using the premises in dispute on condition to pay the defendants adequately for making use of their premises. Similarly, if the plaintiff is allowed to continue to make use of the premises on condition to pay an amount which would be exceeding Rs. 55,500/-per month the defendants would not suffer irreparable loss, which could not be compensated in terms of money. Before passing the final order I would like to deal with one of the contentions raised by Mr. Arun Mohan, learned senior counsel for the defendants. He contended before me that the plaintiffs have not filed reply to his application under Rule 4 of Order 39 and, thereforee, the order of injunction in favor of the plaintiff deserves to be rejected. In support of that submission he cited before me the case of Kaka Singh Chhabra v. Municipal Corporation of Delhi [1990 Vol.42 DLT 607], wherein it has been held by the learned Single Judge of this Court if the plaintiff has not filed any reply to the application under Order 39 Rule 4, CPC, the period allowed by the Court then the plaintiff cannot ask for continuation of the injunction and the same has to be vacated. From the report of the said case it is not possible to know as to what were the facts in the said case. The learned Judge has found that though the plaintiff was given sufficient time to file reply to the application under Order 39 Rule 4 plaintiff was not filing the same and was seeking more time and in these circumstances while granting more time to him the learned Judge was pleased to vacate the order of ad-interim injunction. In the instant case plaintiff has filed an application contending therein that the written statement filed by the defendant and which was the basis for his application under Order 39 Rule 4 is not as per the provisions of Order VI, CPC and he had prayed for striking off the same under Rule 16 of Order VI. That application of the plaintiff was ordered to be decided before this application by my learned predecessor. In these circumstances, the plaintiff has not filed reply to the application under Order 39 Rule 4 because of his contention under the provisions of Rule 16 of Order VI, CPC. thereforee, in view of the peculiar facts of the case as well as taking into consideration the provisions of Rule 4 of Order 39, I am unable to hold that merely because the plaintiff has not filed the reply to His application under Rule 4 of Order 39 it is not open for the plaintiff to rely on his original plaint and the documents produced by him as well as the documents produced by the defendants and to urge before the Court that in view of the material on record the defendant is not entitled to have either the discharge or modification or setting aside of the order in his favor.
Thus, I hold that from the material on record it is not possible to hold prima facie that the plaintiff was not in possession and occupation of the shop in question prior to 3.10.1994 and that they came in possession for the first time on 3.10.1994 by use of force. From the material on record it prima fade seems that the shop Intershoppe in the premises in question is being run by the plaintiff and it is plaintiffs business. thereforee, in these circumstances, the plaintiff is entitled to gel ad interim injunction in order to protect his business on the conditions as indicated above.
( 1 ) THIS application is filed by the defendant under Rule 4 of Order 39, Civil Procedure Code.
( 2 ) SUIT No. 2199/94 is filed by the plaintiff Intercraft Ltd. to get a decree of perpetual injunction to restrain the defendants from interfering in the peaceful possession of the shop bearing No. B-24, Cannaught Place, new Delhi and to further restrain them from disturbing the plaintiff in carrying on the business in the said shop and to get a declation that he is lawful tenant of the defendants.
( 3 ) PLAINTIFF has come before the Court alleging that plaintiff is a public limited company and is function under the name and style of Intershoppe. They are manufacturers and retailers of garments in India. They deal in radymade grments and related accessories. They have got international market and have got a very high reputation not only in India but throughout the world. They were interested in opening a retail outlet in Cannaught Place in the year 1980. At that time the defendants were also interested in giving their shop No. B-24, Cannaught Place, New Delhi, on rent. But the said shop, which was occupied and was in possesion of the defendants was in their possession and occupation as the tenants and, therefore, in view of the provisions of the Delhi Rent Control Act it was not possible to enter into a contract of sub-lease. Therefore, in order to avoid the clutches of the Rent Act they prepared a document showing that the transaction between the parties was that of principal and agent and they were maintaining record and documents in the nature of a contract of agency, but as a matter of fact, plaintiff got the possession of ground floor portion of the shop bearing No. B-24, Cannaugt Place, New Delhi and consisting of ground floor and mezannine floor. The defendants had their shop by the name of Capital Boot House and they were carrying on their business in the mezannine floor whereas the plaintiff started its business under the name and style of Intershoppe in the ground floor. However, in order to avoid any record of sub-lease created by the defendant in favour of the plaintiff the documents executed between them were of an agreements of agency and in the light of the said documents the record was being maintained. Initially, the agreement was executed on 15. 9. 1980 mentioning therein that it was for a period of three years. Thereafter, there were execution of documents on 16. 9. 1983, 19. 9. 1986, 16. 9. 1989 and 19. 9. 1991. Thus, from 1980 till the date of the suit plaintiffs are in possession of the said ground floor of shop No. B-24, Cannaught Place, New Delhi and they are running their business under the name and style of Intershoppe. After the expiry of the time mentioned in the last document through negotiations and talks took place between the parties for executing another fresh document, those talks failed. Thereafter on 27. 9. 1994 one of the defendants partners, viz. Sukhinder Pal Singh, visited the plaintiff s shop and created a scene by using unparliamentary language to the staff and threatened to put his locks to the premises and not to allow them to make use of the premises and to forcibly dispossess them and, therefore, the plaintiff filed the present suit on 3. 10. 1994.
( 4 ) ALONGWITH the suit the plaintiff file an interim application bearing IA. No. 8829/94 seeking ad- interim injunction. On the said application on 3. 10. 1994 my learned predecessor was pleased to pass an order directing the parties to maintain status-quo and an order to issue notice of the said application to the defendant was also passed. My learned predecessor was further pleased to appoint a Deputy Registrar of this Court as a Local Commission to visit the premises in question and to submit his report as to what extent the business was being carried on by the plaintiff in the shop.
( 5 ) ON 7. 10. 1994 the plaintiff moved another interim application viz. IA. 8976/94 alleging therein that the parties of defendant No.
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