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1994 Supreme(Del) 378

High Court Of Delhi
JWALA PERSHAD ASHOK ASHOK KUMARCHOPRA H.U.F. - Appellant
Versus
NATH TUBES PRIVATE LIMITED - Respondent
Interim Application 725 of 1993
Decided On : 05/24/1994

Advocates Appeared:
ALAKH KUMAR, ASHOK KASHYAP, P.R.BAHL, RAMAN DUGGAL, V.K.Makhija

The court has the power to order the payment or deposit of rent in fair exercise of its judicial discretion.

Headnote:

LANDLORD AND TENANT - RENT - PAYMENT - ORDER FOR DEPOSIT OF RENT - POWER OF COURT - ORDER FOR DEPOSIT OF RENT CAN BE PASSED BY THE COURT IN FAIR EXERCISE OF ITS JUDICIAL DISCRETION - ORDER 39 RULE 10 CIVIL PROCEDURE CODE - ORDER 12 RULE 1 CIVIL PROCEDURE CODE - SECTION 151 CIVIL PROCEDURE CODE.

Fact of the Case:

Plaintiff filed a suit for recovery of rent and damages for use and occupation of the premises let out to defendant No. 1. Defendant No. 1 claimed that the tenancy was transferred to defendants 3 and 4 and that they were not liable to pay rent. Defendants 3 and 4 claimed abatement of rent on the ground that the plaintiff had failed to carry out essential repairs.

Finding of the Court:

The court held that there was no dispute about the liability of defendants No. 3 and 4 to pay rent, whether in their capacity as tenants, tenants by holding over, or as guarantors. The court also held that the court had the power to order the payment or deposit of rent in fair exercise of its judicial discretion.

Issues: 1. Whether the court had the power to order the payment or deposit of rent? 2. Whether the defendants were liable to pay rent? 3. Whether the defendants were entitled to abatement of rent?

Ratio Decidendi: 1. The court has the power to order the payment or deposit of rent in fair exercise of its judicial discretion under Order 39 Rule 10 Civil Procedure Code, Order 12 Rule 1 Civil Procedure Code, and Section 151 Civil Procedure Code. 2. The defendants were liable to pay rent as there was no dispute about their liability. 3. The defendants were not entitled to abatement of rent as the premises were not rendered incapable of enjoyment.

Final Decision: The court directed the defendants to deposit an amount equal to the rent upto date minus Rs. 1,67,000.00 in the court. The defendants were also directed to continue to deposit Rs. 35000.00 every month in the court without prejudice to the rights and contentions of either party.

J. K. Mehra, J.

( 1 ) THIS is an application for direction to the defendantsto pay rent/damages for use and occupation of the premises, which was let out bythe plaintiff, H. U. F. to defendant No. 1.

( 2 ) IN the suit the plaintiff has alleged that the premises in dispute were let outto defendant No. l and that defendant no. 4 who is its Managing Director anddefendants 2 and 3, who are the Directors of defendant No. l had guaranteed thepayment of rent. It is further stated that at the time of institution of the suit theagreed rate of rent was Rs. 35000. 00 per month. Plaintiff has alleged that thedefendants had not been paying any rent.

( 3 ) THE position taken up by the defendants is that though defendant No. 1was the tenant initially, but subsequently at the time of renewal of the lease deedthe tenancy was transferred to defendants 3 and 4 and that defendant No. 1 is not liable to pay rent for the premises in dispute. The case of defendant No. 2 is also thatinitially the premises were let out to defendant No. 1 which was later on transferredto the name of defendants 3 and 4 who are the Director and Managing Directorrespectively of the company. The fact that defendants 3 and 4 were initially thesurety was not challenged at the bar before me. The defendants 3 and 4 have notdisputed the rate of rent but had pleaded further that the plaintiff is not entitledto rent as it had failed to carry out essential repairs which had to be carried out bydefendants 3 and 4 at their costs which cost the said defendants Rs. 1,67,000. 00. These defendants have further urged at the Bar that on the said account of failureof the plaintiff to carry out such repairs, there is abatement of rent and no orderfor payment can be passed against defendants Nos. 3 and 4. On furtherclarification, sought by Court on this plea to ascertain whether they claim totalabatement or partial, the Counsel claimed abatement to the extent beyondrs. 26,000. 00 p. m. , i. e. , the abatement claimed is @ Rs. 9,000. 00 p. m. The plaintiffhas, however, denied that there was any transfer of tenancy in favour ofdefendants 3 and 4 and he has alleged that subsequent leases are forgeries and hasasked for the production of the originals. Plaintiff maintains that the defendantno. l is the principal party liable for the rent while defendants 2 to 4 are liable assureties. In this case, the fact that the premises were let out by the plaintiff at therate of Rs. 35000. 00 per month is not in dispute. In the present case identity of thelandlord is not in dispute, while it is contended by the plaintiff that defendantno. l is the tenant and defendants 2 to 4 stood guarantee for the payment of the rentwhereas the plea of the defendants is that defendant No. 1 had ceased to be a tenantas on the expiry of the term of the first lease deed dated 1. 11. 89 on 1. 5. 91whereafter the tenancy was changed tothcnamcsofdefcndants3and4whohadbecome the tenants under the subsequent leases. Similar is the stand taken bydefendant No. 2. It is stated in the written statement of the defendants thatdefendants 2 and 3 are the directors of defendant No. 1, defendant No. 4 is themanaging Director and that the rent that was being paid was @ Rs. 34500. 00although defendants 3 and 4 have denied that the plaintiffs are the owners of theproperty. I find from the documents submitted by the defendants 3 and 4 beingphotocopies of the alleged lease deeds produced by the said defendants Nos. 3 and 4 and whereunder they are claiming to have become the tenants that the saidplaintiff HUF is shown as the landlord. As such, this plea of defendants Nos. 3 and4, prima facie, is lacking in bonafides. It is further to be noticed that Mr. Ashokchopra is clearly stated to be the Karta of the plaintiff HUF in the said lease deedrelied upon by defendants Nos. 3 and 4. The denial in the written statement isclearly belied by the documents produced by the said defendants.

( 4 ) COMING to the liability and the question of power of Court to






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