SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2014 Supreme(Del) 1309

IN THE HIGH COURT OF DELHI AT NEW DELHI
RAJIV SAHAI ENDLAW, J.
M/S GESTURE HOTELS AND FOOD PVT. LIMITED – Appellant
Versus
THE NEW DELHI MUNICIPAL COUNCIL – Respondent
FAO (OS)219/2014
Decided on: 9th May, 2014

Advocates Appeared:
Mr. Arvind K. Nigam, Sr. Adv. with Mr. Abhijat, Mr. Manish Sangwan & Mr. Mayank Wadhwa, Advs.
Mrs. Rachna Golcha & Ms. Monisha Handa, Advs.

Headnote:

Easements Act, 1882 - Section 64 - NDMC Act, 1994 - Section 141(2) - Specific performance - Interim relief - Renewal of licence - Dismissal of application filed by the appellant for interim relief - Suit for the relief of specific performance by directing renewal of the licence - Rejection of the request of the appellant for renewal - Interim relief of restraining the respondent from dispossessing the appellant from licenced premises - Licence was granted licence to use space for a period of 10 years - Respondent as a licensor, was entitled to re-enter the premises on the expiry of the period of the licence and deal with it in the manner deemed fit - Renewal clause in the licence are, the renewal thereof was in the sole discretion of the respondent - Appellant cannot force the respondent to renew the lease - Entitlement of the respondent in the matter of renewal, to be in the absolute discretion of the respondent whether for right or wrong reasons - There is no merit in the appeal - Appeal is dismissed with costs.

JUDGMENT : -

RAJIV SAHAI ENDLAW, J.

Caveat No.397/2014

1. The counsel for the respondent NDMC / caveator appears.

2. The caveat stands discharged.

CM No.7825/2014 (for exemption)

3. Allowed, subject to just exceptions.

4. The application is disposed of.

FAO (OS)219/2014 & CM No.7824/2014 (for stay)

5. We have, with consent, heard the counsels finally at the stage of admission only.

6. The appeal impugns the order dated 22.04.2014 of the learned Single Judge of this Court (exercising Ordinary Civil Jurisdiction) of dismissal of the application filed by the appellant / plaintiff for interim relief in CS(OS) No.1914/2012. The suit filed is, a) for the relief of specific performance by directing renewal / extension of the licence granted by the respondent / defendant to the appellant / plaintiff vide Licence Deed dated 24.09.2002; and, b) for declaration of the letter dated 28.06.2012 issued by the respondent / defendant to the appellant / plaintiff of rejection of the request of the appellant / plaintiff for renewal / extension of the licence as void ab-initio I; and, c) for permanent injunction restraining the respondent / defendant from dispossessing the appellant/plaintiff from the licenced premises or from creating any impediments to the use by the appellant / plaintiff thereof. Interim relief of restraining the respondent / defendant from dispossessing the appellant / plaintiff or from causing any impediments to the use by the appellant / plaintiff of the licenced premises was claimed.

7. The appellant / plaintiff being the highest bidder in a tender floated by the respondent / defendant for grant of licence aforesaid, was on the terms and conditions contained in the Licence Deed dated 24.09.2002 granted licence to use space ad-measuring 9657 sq. ft. at ground / lower ground floor at Akbar Bhawan Annexe, behind Akbar Bhawan, Chanakya Lane, Chanakya Puri, New Delhi for a period of 10 years and on the terms and conditions contained therein. As per the said deed, the respondent / defendant as a licensor, was entitled to re-enter the premises on the expiry of the period of the licence and assume exclusive charge thereof and deal with it in the manner deemed fit and to auction the belongings if any remaining of the appellant / plaintiff in the said space, unless claimed within one month of assumption of such possession by the licensor. Clause 1 of the said Licence Deed is as under:

“1. That the licence shall be for a period of 10 years ending upto 11-7-2012 and thereafter it shall be entire discretion of the licensor to extend or not to extend the period of licence. In case it is decided by the licensor that the licence be renewed / extended, it shall be renewed / extended for a further period as decided by the licensor from the day following the date on which the term of the licence expires at a monthly licence fee payable under the present licence plus its 5% (or by the percentage as applicable under the policy of the council for the time being in force) as monthly licence fee of the renewed licence provided the licensee exercises his / her option for renewal of licence in writing for another term of 10 years within 60 days before the date of expiry of the present licence and the licensee completes all the required formalities for renewal of licence within the stipulated period of 60 days. In case the option for renewal is not so exercised and / or the formalities are not completed within the stipulated period to the satisfaction of the licensor, it shall be presumed that the licensee is not interested in further extension / renewal of his / her licence beyond the date of expiry of the term of the licence and in the event of the licensee not surrendering the vacant possession of the shop within the stipulated period under this deed, the licensee shall render himself / herself liable for action for eviction and recovery of damages under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971.”

8. The appellant / plaintiff claim

























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

SupremeToday

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top