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2015 Supreme(Del) 549

High Court of Delhi
J.R. MIDHA, J.
Pradeep Khanna – Appellant
Versus
Renu Khetarpal – Respondent
R.F.A. No. 638 of 2014
Decided On : 10-04-2015

Appearing Advocates:
For the Appellant: Vasudha Khanna, (Daughter of the appellant with appellant in person).
For the Respondent:Nitin Gupta, Chandra Nand Jha, Advocates.

In a suit for recovery of possession, the landlord is required to establish the existence of the jural relationship of landlord and tenant between the parties and the termination of the tenancy. If the relationship of tenant and landlord and termination are admitted by the tenant, the decree for possession cannot be denied on the ground that the tenant claims to have spent money on the renovation.

Headnote:

ORDER XII RULE 6 CPC - SUIT FOR POSSESSION - LANDLORD AND TENANT RELATIONSHIP - TERMINATION OF TENANCY - ADMISSION OF RECEIPT OF TERMINATION NOTICE - DECREE FOR POSSESSION - IMPOSITION OF COSTS.

Fact of the Case:

Appellant challenged the decree for possession of a flat passed against him under Order XII Rule 6 of the Code of Civil Procedure. A registered rent agreement was executed between the respondent and the appellant for a period of two years. A separate agreement was executed for user charges of the fittings and fixtures. Both agreements were to run simultaneously and termination of either would automatically terminate the other. The respondent notified the appellant that after the expiry of the two years' period of lease, the lease was orally renewed on a month-to-month basis upon increase of rent. The respondent demanded arrears of rent and hire charges along with interest and terminated the tenancy. The appellant admitted the rent agreement and the agreement of fittings and fixtures, as well as the increase in rent. He claimed that he had paid the rent and hire charges up to March 2012 and had spent Rs. 7 lakh on repair work, which he adjusted against the rent and hire charges. The appellant admitted the receipt of the termination notice but denied the respondent's claim of rent and hire charges. The appellant filed an application under Order XII Rule 6 of the Code of Civil Procedure for a decree of possession on the ground that the appellant had admitted the receipt of the termination notice. The appellant filed a reply denying the application and filed an application under Order VII Rule 11 of the Code of Civil Procedure on the ground that the respondent had no cause of action for filing the suit. The trial court allowed the respondent's application and dismissed the appellant's application. The appellant challenged the order in the instant appeal.

Finding of the Court:

1. The relationship of landlord and tenant was admitted by the appellant in his written statement before the Trial Court. 2. The appellant raised a frivolous objection that the rent agreement placed on record by the respondent was forged. 3. There is no merit in appellant’s objection to the validity of the notice of termination dated 26th October, 2013. 4. The appellant has not filed a counter claim to seek recovery of the expenditure on repairs from the respondent in the suit. 5. The appellant has referred to and relied upon judgments which do not support his case. 6. This case is squarely covered by the principles laid down by the Supreme Court in Payal Vision (supra), Asha Narang (supra) and by this Court in Sky Land International Pvt. Ltd. (supra).

Issues: 1. Whether the appellant admitted the relationship of landlord and tenant as well as the termination of tenancy by a valid notice? 2. Whether the appellant raised a frivolous objection that the rent agreement placed on record by the respondent was forged? 3. Whether there is any merit in appellant’s objection to the validity of the notice of termination dated 26th October, 2013? 4. Whether the appellant has filed a counter claim to seek recovery of the expenditure on repairs from the respondent in the suit? 5. Whether the appellant has referred to and relied upon judgments which do not support his case?

Ratio Decidendi: 1. In a suit for recovery of possession the landlord is required to establish the existence of the jural relationship of landlord and tenant between the parties and the termination of the tenancy. 2. If the relationship of tenant and landlord and termination are admitted by the tenant, the decree for possession cannot be denied on the ground that the tenant claims to have spent money on the renovation. 3. A suit for ejectment is different from a Title Suit for Possession against a trespasser. The dispute here is generally only on two counts. One, about assent to continuation in the case of lease for a fixed term which had expired by efflux of time, or in the case of a tenancy from month-to-month, about the valid termination thereof. In case the lessee claims a right of renewal under a clause therefore, he must bring a separate suit for specific performance of the renewal clause within the limitation prescribed for such a suit. 4. A notice dispatched to the defendant by registered post is presumed to be served under Section 27 of the General Clauses Act and a denial of the said notice by the defendant has no value. 5. False claims and defences are serious problems with real estate litigation, predominantly because of ever escalating prices of the real estate.

Final Decision: The appeal was dismissed with costs of Rs. 50,000/-. However, considering that the appellant did not have the assistance of a counsel and appears to have been misguided with respect to the correct position of law, the costs imposed be refunded if the appellant deposits the costs within 10 days before the Execution Court along with an undertaking to handover the vacant and peaceful possession of the suit property to the respondent by 31st May, 2015.

Judgment :-

1. The appellant has challenged the decree for possession of flat bearing No.123, First Floor, Vasundhra Apartments, Sector 9, Rohini, Delhi (hereinafter referred to as the “suit property”) passed by the learned Trial Court against the appellant under Order XII Rule 6 of the Code of Civil Procedure.

2. Vide registered rent agreement dated 26th September, 2007, the respondent let out the suit property to the appellant for a period of two years w.e.f. 1st October, 2007 to 30th September, 2009 at a monthly rent of Rs.8,500/-. The parties executed a separate agreement dated 26th September, 2007 whereby the appellant agreed to pay user charges of Rs.10,000/- per month for the fittings and fixtures. Clause 7 of the second agreement records that both the agreements shall run simultaneously and in case of termination of either one, the other shall automatically stand terminated.

3. Vide notice dated 26th October, 2013, the respondent notified the appellant that after the expiry of the two years’ period of lease under the lease agreement dated 26th September, 2007, the lease was orally renewed on month to month basis upon increase of rent and the last paid rent and hire charges for fittings and fixtures were Rs. 11,000/- and Rs.11,350/- per month respectively. The respondent notified the appellant that the rent has been paid upto March, 2012 and hire charges have been paid upto September, 2011. The respondent demanded Rs.2,20,000/- towards the arrears of rent from 01st April, 2012 upto 30th November, 2013 @ Rs.11,000/- per month and hire charges of Rs.2,95,100/- from 01st October, 2011 to 30th November, 2013 @ Rs.11,350/- per month along with the interest @ 18% per annum. The respondent also terminated the tenancy of the appellant w.e.f. 30th November, 2013 and called upon the appellant to hand over the vacant and peaceful possession of the suit property failing which the respondent shall claim damages for use and occupation of the suit property at the rate of the current market rent of Rs.35,000/- per month.

4. On 3rd January, 2014, the respondent instituted the suit for recovery of possession, recovery of Rs.6,17,234/- towards arrears of rent/hire charges and the future mesne profits @ Rs.35,000/- per month.

5. The appellant contested the suit by filing the written statement dated 29th April, 2014 in which he admitted the rent agreement as well as the agreement of fittings and fixtures both dated 26th September, 2007. The appellant further admitted that both the aforesaid agreements were for a period of two years. The appellant also admitted that initial rent of Rs.8,500/- per month and hire charges for fittings and fixtures of Rs.10,000/- per month. The appellant further admitted that the rent was increased from Rs.8,500/- per month to Rs.11,000/- per month and hire charges were increased from Rs.10,000/- per month to Rs.11,350/- per month w.e.f. December, 2012. The appellant further pleaded that the respondent had orally assured the appellant to renew the lease for another five years. The appellant pleaded that he has paid the rent and hire charges upto March, 2012. The appellant claimed that he approached the respondent for repair work in the suit property in the year 2011 whereupon the respondent permitted him to carry on the same and adjust against the monthly rent. The appellant claimed that he spent Rs.7 lakh on the repair work and adjusted the same against the rent and hire charges. The appellant admitted the receipt of the termination notice dated 26th October, 2013 but denied the respondent’s claim of rent and hire charges on the ground that appellant has lawfully adjusted the same against the repair work of Rs.7 lakh carried out by him.

6. On 27th May, 2014, the respondent filed an application under Order XII Rule 6 of the Code of Civil Procedure for decree of possession on the ground that the appellant has admitted the receipt of the termination notice dated 26th October, 2013. The appellant filed the reply to the











































































































































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