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2017 Supreme(Del) 4800

IN THE HIGH COURT OF DELHI AT NEW DELHI
YOGESH KHANNA, J.
Subodh Vir Raheja and Another – Petitioners
Versus
BDCS Media Vision Pvt. Ltd. – Respondent
O.M.P. (I) No. 19 of 2017
Decided On : 21-12-2017

Advocates Appeared:
For the Petitioners: Mr. Saurabh Seth and Ms. Sumeera Seth.

The court's decision was influenced by the application of Section 9 of the Arbitration and Conciliation Act 1996, which empowered the court to grant urgent interim relief.

Headnote:

Arbitration and Conciliation Act - Lease Agreement - Section 9 of the Arbitration and Conciliation Act 1996 - [Section 9] - The court directed the respondent to deposit an amount of Rs. 1,65,000/- within 30 days from the date of the judgment.

Fact of the Case:

The petitioner entered into a Lease Agreement with the respondent for a period of 11 months. The respondent defaulted in paying the monthly rent and other charges as per the agreement. The petitioner issued a termination notice and subsequently filed a petition under Section 9 of the Arbitration and Conciliation Act 1996 seeking urgent interim relief.

Finding of the Court:

The court found that the respondent was in clear breach of the terms of the Lease Agreement and directed the respondent to deposit an amount of Rs. 1,65,000/- in the Court within 30 days from the date of the judgment.

Issues: Default in payment of rent and other charges, termination of Lease Agreement, and the application of Section 9 of the Arbitration and Conciliation Act 1996.

Ratio Decidendi: The court relied on the judgment of M/s Value Source Mercantile Ltd. vs. M/s Span Mechnotronix Ltd. to support its decision under Section 9 of the Arbitration Act.

Final Decision: The respondent was directed to deposit an amount of Rs. 1,65,000/- in the Court within 30 days from the date of the judgment.

JUDGMENT :

YOGESH KHANNA, J.

1. The respondent is not present today. It has been served and an affidavit of service is filed by the petitioner herein stating the summons were sent at the registered office of the respondent Lift No. 7(G) Ashoka Estate, 24, Barakhamba Road, New Delhi 110001 as well as at the tenanted premises A-12, Sector 93-B, First Floor, Noida, Uttar Pradesh. On 16.12.2017 at the registered office. It is submitted the summons were served on the respondent by way of Registered AD Post and Speed Post. The copy of the tracking status showing Door locked-intimation served. In addition, the respondent also served through emails on its email id pratinidhi@pratinidhi.tv and hr@pratinidhi.tv. The email dated 14.12.2017 was sent to the respondent alongwith the copy of summons and the petition. None has appeared on behalf of the respondent, hence I proceed to decide.

2. This petition is under Section 9 of the Arbitration and Conciliation Act 1996 seeking urgent interim relief. The facts of the case are as under:

(a) On 01.05.2017 the petitioners and the respondent through Mr. Alok Kumar, who was duly authorized vide Board Resolution dated 25.04.2017 signed a Lease Agreement dated 01.05.2017 in respect of the leased Premises. The Lease Agreement contained detailed terms agreed between the parties and it was specifically agreed the lease would be for a period of 11 months starting from 01.05.2017 and ending on 31.03.2018. Thereafter notwithstanding the clear terms of the Lease Agreement and express covenants to pay the monthly rent and other charges, the respondent has defaulted in its obligations under the Lease Agreement. The company has not paid the monthly rental for the month of August 2017, September 2017 and October 2017 despite various demands from the petitioners and in addition other charges under the Lease Agreement have also not been paid.

(b) In the month of August and September 2017 the petitioners have made various attempts to contact/meet Mr. Alok Kumar through phone 2017 and personal visits to the leased premises however it appears that Mr. Alok Kumar is evading such meetings. Thus became clear to the petitioners that neither the respondent nor Mr. Alok Kumar have any intention to pay the outstanding amounts to the petitioners. In fact, numerous SMS's have been exchanged between the petitioner No. 1 and Mr. Alok Kumar demanding the outstanding payments. Mr. Alok Kumar assured the Petitioner No. 1 that all payments would be made or else the respondent would vacate the leased premises.

(c) Since the respondent was in clear breach of the terms of the Lease Agreement the petitioners on 25.09.2017 through their advocate, issued a termination notice dated 25.09.2017 terminating the Lease Agreement forthwith in terms of clause 6 of the Lease Agreement. The Respondent was accordingly called upon to hand over the vacant physical possession of the leased premises to the petitioners within 15 days of the termination notice.

(d) The Termination Notice was served on 26.09.2017 to the respondent by Regd. AD Post as well as by courier. The termination notice was also addressed at the Leased Premises i.e. A-12, Sector 93-B, First Floor, NOIDA, Uttar Pradesh, which stands served on 26.09.2017 by courier. However the Regd. AD Post on the same address has been returned undelivered.

(e) On 10.10.2017 period of 15 days as stipulated in the termination notice expired. Hence this petition.

3. Thus it is submitted by the learned counsel for the petitioner that per lease deed dated 01.05.2017 the premises was let out at the rate of Rs. 55,000/- per month. The respondent has paid the monthly rental for two months and it is outstanding since 01.08.2017 and that the respondent vacated the premises in early November 2017 and hence three months rent is required to be paid by the respondent herein which is admitted by the respondent per their SMS on 04.09.2017 at 4:42 PM to the petitioner as under:

“Not in a position to talk to u or commit u an






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