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2006 Supreme(Del) 1835

High Court Of Delhi
T. S. THAKUR, S. L. BHAYANA
UCO BANK - Appellant
Versus
VYAS AQUA PRODUCTS PVT.LTD. - Respondents
CM 11019 Of 2005
Decided On : 10/10/2006

Advocates Appeared:
Hemant Malhotra, Rajesh Rattan

Fairness of trial procedures and the need for a fair opportunity to present evidence to support claims.

Headnote:

Rent Dispute - Lease Termination - Evidence - [TENANCY, RENT, COMPENSATION] - [Order XII Rule 6 of CPC, D. C. Oswal versus V. K. Subbain and Others, AIR 1992 SC 184] - The court discussed the termination of the lease, the determination of compensation for use and occupation, and the evidence presented. The court found that the trial court's decision was based on unsustainable inferences and unfair trial procedures, and set aside the judgment and decree, remanding the matter for further evidence.

Fact of the Case:

The plaintiff filed a suit for arrears of rent and compensation for unauthorized use and occupation of a property leased to the defendant. The trial court decreed the suit for a reduced amount of rent and compensation. The defendant appealed, alleging unfair trial procedures and lack of evidence to support the compensation claim.

Finding of the Court:

The court found that the trial court's decision was based on unsustainable inferences and unfair trial procedures, leading to a failure of justice. The defendant was not given a fair opportunity to adduce evidence, and the evidence presented did not support the compensation claim.

Issues: Unfair trial procedures, lack of evidence to support compensation claim

Ratio Decidendi: Fairness of trial is essential for a just decision. A fair opportunity to prove the cases set up by the parties is the essence of fairness. The court may set aside a verdict based on hasty or unfair procedures.

Final Decision: The court set aside the judgment and decree, remanding the matter back to the trial court for further evidence.


T. S. THAKUR, J, J.


( 1 ) IN this Regular First Appeal, the appellant calls in question the correctness of a judgment and decree dated 2nd May, 2005 passed by the additional District Judge, Delhi whereby the suit filed by the plaintiff-respondent for arrears of rent and compensation for unauthorized use and occupation has been decreed with costs @ Rs. 50,000/- per month as against Rs. 1 lakh per month claimed in the suit.

( 2 ) THE defendant-appellant herein was in occupation of a premises comprising the basement and ground floor of property No. 8357/2 (new), Model basti, Filmistan Cinema, Shiddipura, Delhi in terms of a registered lease deed dated 8th April, 1971. The tenancy was extended for a period of 15 years w. e. f. 7. 5. 1981 on a monthly rental of Rs. 9,000/- for the first five years, Rs. 10,800/-for the next five years and Rs. 12,960/- for the remaining period of five years. Since, according to the plaintiff, who had acquired the property from the erstwhile landlord, there was no further extension of the lease in favour of the defendant-appellant, its tenancy was terminated in terms of a notice dated 26th april, 1996. A suit for possession of the demised premises and for damages for unauthorized use and occupation thereof @ Rs. 1 lakh per month w. e. f. 15th february, 1996 till the date of handing over of the possession was accordingly filed by the plaintiff. A decree for arrears of rent at the agreed rate from 1st February, 1996 to 14th February, 1996 was also prayed for.

( 3 ) THE suit was contested by the defendant-appellant on several grounds including the ground that the lease stood extended up to 14th February, 1996 and that the defendant was not obliged to pay any damages for its occupation. An application under Order XII Rule 6 of the CPC was then filed by the plaintiff for a judgment on admissions. In the course of hearing of the said application, the Court was informed that the appellant had already handed over the possession of the demised premises to the plaintiff and all that remained to be considered was the claim for mesne profits/compensation for use and occupation of the premises. The Court accordingly framed the following three issues in that regard:-"1. To what amount the plaintiff is entitled on account of rent from 1. 2. 1996 to 14. 2. 1996" 2. Whether the plaintiff is entitled to damages for use and occupation of the property, if so at what rate and for what period" 3. Relief. "

( 4 ) IN support of its claim, the plaintiff filed the affidavits of pws Kamal Kumar and Ashok Kumar. The defendant"s evidence was closed on the 6th April, 2005 on a statement made to that effect by its counsel.

( 5 ) BY the judgment under appeal, the trial court found Issue No. 1 in favour of the plaintiff and held it entitled to an amount of Rs. 6480/-towards rent for the period between 1. 2. 96 to 14. 2. 96. As regards Issue No. 2, the trial court held that the lease deed stood validly terminated in terms of notice dated 25th January, 1996 sent by the plaintiff entitling it to claim damages for use and occupation of the premises beyond the date of termination of the tenancy. The Court also held that there was no evidence to substantiate the plaintiff"s claim that the market rent of the premises was Rs. 1 lakh per month during the relevant period. The Court noticed a copy of the lease deed relating to the adjoining property showing payment of rent @ Rs. 14. 61 per sq. ft. effective from 1. 1. 2003. The Court observed that although the rent in the year 1996 would have been less than what it was in the year 2003, yet in the absence of any evidence regarding market rent for the year 1996 it could be inferred that the rent in 1996 was approximately similar to that in the year 2003. We may usefully extract the passage in which the Court below has made those observations:"the copy of lease deed of adjoining property shows rent of Rs. 59,500/-calculated @ Rs. 14. 61 per sq. ft. The said rent is effective from 1. 1. 2003. T






















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