1. The appellant has challenged the judgment and decree for Rs.8,93,892/- along with interest thereon @ 9% per annum passed by the learned Additional District Judge in favour of the respondent and against the appellant.

2. The appellant was the landlord and the respondent was the tenant of the property bearing no. B-529, New Friends Colony, New Delhi. For the sake of convenience, the appellant and the respondent are referred to as the “landlord” and “tenant” respectively.

3. Relevant facts

3.1. Vide registered lease deed dated 27th April, 1998, the landlord leased out property bearing No.B-529, New Friends Colony, New Delhi (hereinafter referred to as the “suit property”) to the tenant for a period of three years with effect from 15th April, 1998 upto 14th April, 2001 at the monthly rent of Rs.1,85,000/- for the first two years and Rs.2,03,500/- for the third year. The tenant paid security deposit of Rs.12,21,000/- to the landlord refundable at the time of handing over of possession of the suit property.

3.2. On 26th March, 2001, the parties extended the lease upto 30th June, 2001. The terms of this extension are recorded in tenant’s letter dated 26th March, 2001, relevant portion whereof is reproduced hereunder:

“As agreed to by you during the discussions, the lease period is extended up to 30.06.2001 or till the premises are vacated, whichever is earlier, on the existing terms and conditions without any increase in rent.”

3.3. On 27th June, 2001, the parties further extended the lease for a period of three months upto 30th September, 2001. The terms of this extension are recorded in the tenant’s letter dated 27th June, 2001. The relevant portion of the said letter is reproduced hereunder:

“As agreed to by you during the discussions, the lease period is extended up to 30.09.2001 or till the premises are vacated, whichever is earlier, on the existing terms and conditions without any increase in rent.”

3.4. Vide letter dated 24th September, 2001, the tenant intimated the landlord that the suit property would be vacated on 30th September, 2001 and therefore, the landlord may depute his representative to take over the suit property. This letter was sent by the tenant to the landlord by courier. The landlord has denied the receipt of this letter. The letter dated 24th September, 2001 is reproduced hereunder:

“Shri H.S. Bedi, 24.09.2001 95,

Golf Links,

New Delhi-110003

Sub: Handover of the premises at B-529, New Friends Colony Sir,

Please refer to the Lease Agreement between you and M/s. National Highways Authority of India and Authority’s letter dated 27.06.2001 in connection with lease of the above mentioned premises. In this connection, it is to inform you that the premises will be vacated on 30.09.2001. Therefore, you may kindly depute your representative for taking over the premises.” (Emphasis supplied)

3.5. On 30th September, 2001, the tenant claims to have vacated the suit property and shifted to their own newly constructed office at Dwarka. However, the landlord did not turn up to take over the physical possession of the suit property.

3.6. Vide letter dated 1st October, 2001, the tenant intimated the landlord having vacated the suit property on 30th September, 2001 and once again requested the landlord to take the possession. The tenant further intimated the landlord that the tenant would not be liable to pay the rent and other charges w.e.f. 30th September, 2001. The letter dated 1st October, 2001 is reproduced hereunder:-

“Shri H.S. Bedi, 1.10.2001 95,

Golf Links,

New Delhi-110003

Sub: Handover of the premises at B-529, New Friends Colony

Sir,

Please refer to the lease agreement between and M/s. National Highways Authority of India and Authority’s letter of even no. Dated 27.6.2001 and 24.9.2001 in connection with lease of the above mentioned premises. In this connection, it is to inform you that we have vacated your building on 30.09.2001. The building have could not handover so far because your representative was not availabl