High Court Of Delhi
BIRLA INSTITUTE OF SCIENTIFIC RESEARCH - Appellant
Versus
UNION OF INDIA - Respondent
C.M. 2358 of 1993
Decided On : 07/12/1993
LANDLORD AND TENANT - EVICTION - MISUSE CHARGES - CALCULATION - FORMULA - SCHEDULE OF MARKET RATES OF RENT - APPLICABILITY - DELHI RENT CONTROL ACT, 1958 - SECTION 14(1)(K) - ORDER NO. 23/76, CLAUSE 8.
Fact of the Case:
The Birla Institute of Scientific Research, a Society registered under the West Bengal Society Registration Act, 1961, leased premises from Mrs. Santosh Chandiok in New Delhi. The lease agreement contained a clause prohibiting the use of the premises for any purpose other than a single-storeyed building consisting of one or two residential flats with a barsati on top. The Land and Development Office alleged that the Society was misusing the premises as an office, in violation of the lease agreement. Mrs. Chandiok filed an eviction petition against the Society under Section 14(1)(k) of the Delhi Rent Control Act, 1958, which allows eviction for breach of conditions imposed by the government or the Delhi Development Authority. The parties reached a settlement, and the Additional Rent Controller passed an order of eviction in terms of the settlement. The Society agreed to pay misuse charges to the Land and Development Office.
Finding of the Court:
The court held that the Society was bound by the admissions it made during the settlement negotiations and the order of eviction passed by the Additional Rent Controller. The court found that the Society had agreed to pay misuse charges without objection or protest. The court also found that the Land and Development Office had calculated the misuse charges in accordance with the formula and schedule of market rates prescribed by the government.
Issues: 1. Whether the Society was liable to pay misuse charges for using the premises for commercial purposes in violation of the lease agreement. 2. Whether the Land and Development Office had correctly calculated the misuse charges.
Ratio Decidendi: 1. The court held that the Society was liable to pay misuse charges because it had admitted to the misuse of the premises and the order of eviction passed by the Additional Rent Controller was final and binding. 2. The court held that the Land and Development Office had correctly calculated the misuse charges in accordance with the formula and schedule of market rates prescribed by the government.
Final Decision: The court ordered the Society to pay one percent of the misuse charges for the period from January 15, 1981 to October 22, 1982, as per Clause 8 of Order No. 23/76. The court left the parties to bear their own costs.
( 1 ) THE Birla Institute of Scientific Research, which is the petitioner before me, is a Society duly registered under the West Bengal Society Registration Act, 1961. By a lease agreement dated March 17, 1971 the Society took premises bearing No. 13, Mahatma Gandhi Road, Lajpat Nagar IV, New Delhi from Mrs. Santosh Chandiok, who is respondent No. 4 on a monthly rent of Rs. 4000. 00. Mrs. Chandiok had purchased the land underneath the said premises from one Mr. Sat Prakash Kapur. The original lessee was the President of India who had demised the same by a lease in writing dated April 3, 1959. One of the terms and conditions of the said lease and which is relevent for our purpose was as follows:
"1. The lessee doth to the intent that the burden of the covenants may run with the said land and may bind any permitted assignee thereof hereby covenant with the Lessor as follows:- (i ). . . . . . . . . . . . . . . . . . . (ii) ------------------ (iii ). . . . . . . . . . . . . . . . . . . (iv) ------------------- (v) ------------------- (vi) not without the written consent of the Chief Commissioner, Delhi to carry on or permit to be carried on, on the said land and buildings erected thereon during the said lease any trade or business whatsoever or use the same or permit the same to be used for any purpose other than of a single storeyed building consisting of one or two residential flats in all, with a barsati on top, as may be approved for the locality or as provided in the building already erected on the said land. "
( 2 ) IT so happened that after the letting to the Society notices were issued by the Land and Development Office to Mrs. Chandiok alleging that the entire premises were being misused as office by the Society and that the breach was in contravention of Clause (vi) of the lease deed. The Land and Development Office which is arrayed as respondent No. 3 before me also claimed miususe charges. consequent upon the said notices by the Land and Development Office, Mrs. Chandiok filed an eviction petition against the Society-under Clause (k) of Sub-section (1) of Section 14 of the Delhi Rent Control Act. That provision runs as follows:-
"14. Protection of tenant against eviction- (1) Notwithstaanding anything to the contrary contained in any other law or contract, no order or decree for the recovery of possession of any premises shall be made by any Court or Controller in favour of the landlord against a tenant: Provided that the Controller may, on an application made to him in the prescribed manner, make an order for the recovery of possession of the premises on one or more of the following grounds only, namely- (k) that the tenant has, notwithstanding previous notice, used or dealt with the premises in a manner contrary to any condition imposed on the landlord by the Government or the Delhi Development Authority, or the Municipal Corporation of Delhi while giving him a lease of the land on which the premises are situate. "
( 3 ) THE said eviction petition resulted in a settlement between the parties. In view of the compromise arrived at between the parties, the learned Additional Rent Controller recorded the statements of Counsel for the parties. The statement made by Counsel for the Society was as follows:
"we concede to the grounds for eviction of the petitioner. We be allowed four years time as per written compromise Ex. CX to vacate the premises in suit. The compromise is filed by Sh. Suresh J. Desai Director incharge of respondent No. 1 and Harish Chandra Adv. for respondent No. I as an Advocate for respondent No. 1. Respondent concedes the grounds of eviction set out in the petition and admit the notice got receipt mentioned under written para No. 18 (2 ). Eviction order be passed against this respondent No. 1 in terms of the compromise Ex. CX. Parties be left to bear their own costs. Ex. CY is correct. "this was followed by the statement of Counsel for the petitioner and profitably, I may reproduce the
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