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2009 Supreme(Del) 29

IN THE HIGH COURT OF DELHI AT NEW DELHI
HONBLE MR. JUSTICE MUKUL MUDGAL, HONBLE MR. JUSTICE MANMOHAN, JJ.
M/S SOUTH DELHI CLUB LTD. - Appellant
versus
M/S LAL CHAND PUBLIC CHARITABLE TRUST - Respondent
RFA(OS) NO. 34/2002
Decided on : 9th January, 2009

Advocates appeared:
Mr. Rajat Aneja, Advocate.
Mr. A.S. Chandhiok, Sr. Adv. with Ms. Ekta Kapil, Ms. Sweta Kakad, Ms. Abhiruchi Mengi, Advocates.

Headnote:Transfer of Property Act, 1882 Section 114 - Provision is a beneficial provision giving protection to the tenant that in case the tenant deposits the rent during the pendency of the proceedings, no eviction decree could be passed against the tenant - Provision is a discretionary and equitable provision and the said discretion could only be allowed by the Court in favour of a party only when his conduct is not vexatious - Tenant violated the lease agreement by making unauthorized constructions in the suit property - Appellant had not only not paid the rent but when it became due and payable went on to the extent of challenging the title of the Respondent to pre-empt disposition by filing a suit being suit - Appellant does not deserve to be granted discretionary relief based on equitable consideration.

JUDGEMNT

MUKUL MUDGAL,J.

1. The present appeal arises out of the judgment and decree dated 22nd October, 2002 in IA No. 7085/2000 and 4681/2001 in Suit No. 518/1999 titled as M/s. Lal Chand Public Charitable Trust vs. M/s. South Delhi Club Limited wherein the learned Single Judge by way of the impugned judgment passed a decree for possession of the suit property against the appellant thereby allowing the application under Order 12 Rule 6 filed by the plaintiff-respondent herein. The learned Single Judge also dismissed the application filed by the appellant under Section 114 of the Transfer of Property Act, 1882 (hereinafter referred to as the Act) seeking relief against forfeiture.

2. The brief facts of the case are as follows: -(a) The appellant Club is a company registered under Section 25 of the Companies Act. The appellant has 1700 members and has 125 employees. (b) The respondent is a charitable trust constituted under a deed of declaration duly registered. (c) By a sub-lease dated 4th November 1965, the property described as Plot of land and building in Block-M, Greater Kailash, Part-I, New Delhi, was leased to the appellant for a period of 25 years (hereinafter referred to as the suit property). (d) The period of lease as specified in the original as well as in the supplementary deed expired on 3rd November, 1990. On expiry of the aforesaid period, the appellant requested the respondent for a further renewal. The aforesaid request of the appellant was considered by the respondent and after negotiations and discussions, the parties to the suit executed a fresh sub-lease dated 23rd September, 1992 for a period of 25 years with effect from 4th November 1990 on the terms and conditions as stipulated in the Agreement and the said lease was also duly registered in the office of the Sub-Registrar, Delhi. (e) One of the terms of the sub-lease was that the appellant shall pay quarterly to the respondent on account of monthly lease money by the 10th of the beginning of each quarter month, a sum equivalent to 14% of the monthly subscription paid or payable by the members of the Club to the Club on account of its monthly subscription which was calculated at Rs.81,778/-on the date of execution of the said sublease. It was also agreed that in case the lease money remains unpaid for two consecutive quarters and also on account of breach of any terms of the sub-lease, the plaintiff would be entitled to terminate the said sub-lease. (f) The respondent addressed letters dated 25th December, 1996, 14th January 1997 and 18th June 1997, calling upon the appellant to remit the lease money as payable by it to the plaintiff as per the terms of the lease. (g) The respondent served a legal notice dated 25th July 1997. By the said notice, the respondent called upon the appellant to pay the entire arrears of lease money failing which, the respondent would be left with no other option but to terminate the sub-lease.

(h) In spite of the said letter, no steps were taken by the appellant and accordingly a lawyers notice was issued by the respondent on 28th October, 1997, terminating the sublease between the parties by the end of the month, i.e., on the mid-night of 30th November, 1997 and further calling upon the defendant to hand over peaceful vacant possession of the entire property on/or before 30th November, 1997. The said notice was issued on 28th October, 1997. Subsequently, again another legal notice was issued by the respondent on 2nd December, 1997, intimating the appellant that its possession in the premises after 30th November 1997 is that of a unauthorized occupant. It was stated in the said notice that although the notice dated 28th October 1997, was served on the defendant and that although the defendant had failed to vacate the premises, a fresh notice is being served terminating the lease with effect from the mid-night of 31st December, 1997, further calling upon the appellant to hand over peaceful vacant possession of the entire propert





















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