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

2019 Supreme(Del) 283

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN, J.
Anil Jain & Ors. - Petitioners
Versus
Gullus Bar-B-Que & Anr. - Respondents
CS(COMM) 894 of 2018
Decided On : 01-02-2019

Advocates Appeared:
For the Petitioners:Mr. Ankur Mahindro, Advocate with Mr. Jayant Mohan Varma, Advocate.

The court emphasized the importance of the Sub Lease Agreement, the provisions of the Limitation Act, 1963, and the deemed admission of averments in the plaint due to the defense being taken off record.

Headnote:

Recovery - Landlord-Tenant Dispute - Limitation Act, 1963 - Sub Lease Agreement - 7% per annum - [Rent, Landlord-Tenant Dispute, Limitation Act, 1963, Sub Lease Agreement]

Fact of the Case:

The landlord filed a suit for recovery of rent from the tenant for a specific period. The defendants failed to pay the rent and were proceeded ex parte. The plaintiffs claimed outstanding dues and limited their claim due to the Limitation Act, 1963.

Finding of the Court:

The court found that the defendants were liable to pay rent as per the Sub Lease Agreement and that the defence of the defendants was taken off record, deeming the averments in the plaint to have been admitted. The court decreed the suit in favor of the plaintiffs for the computed rent amount along with interest at 7% per annum and actual costs of litigation.

Issues: Non-payment of rent, Admissibility of claim under the Limitation Act, 1963, Default by the defendants, Admissibility of evidence

Ratio Decidendi: The court considered the Sub Lease Agreement, the non-payment of rent, and the provisions of the Limitation Act, 1963 to decide in favor of the plaintiffs. The defense taken off record was deemed as admission of the averments in the plaint.

Final Decision: The suit was decreed in favor of the plaintiffs for the computed rent amount along with interest at 7% per annum and actual costs of litigation.

JUDGMENT :

MANMOHAN, J.

1. Present suit has been filed for recovery by plaintiffs landlord-owner against defendants-tenant forRs.58,79,939/- (Rupees Fifty Eight Lakhs Seventy Nine Thousand Nine Hundred and Thirty Nine Only) along with pendente lite and future interest at 18% per annum on the following basis:-

Particulars

Amount

Rent form May, 2012 to August, 2013 @ Rs.3,40866/- p.m.

51,12,990/-

Interest @12% p.a. till the date of filing of the suit.

7,66,949/-

Total

58,79,939/-

2. The prayer clause in the present suit is reproduced herein below:-

“a. Pass a decree for a sum of Rs.58,79,939/- and future interest in favour of the Plaintiffs and against the Defendants on account of rent for the period May 2012 to August 2013:

b. Award the costs of the suit along with Court Fee, litigation expenses in favour of the Plaintiffs; and

Any other further order or relief which this Hon’ble Court deems fit and proper be awarded to the Plaintiffs and against the Defendants in the peculiar facts & circumstances of this case.”

3. On 15th September, 2017, this Court had imposed costs of Rs. 35,000/- on the defendant nos.1 and 6, payable to Lok Nayak Hospital, while condoning the delay in filing the written statement by the defendant nos.1 and 6. However, since the said defendants did not pay the aforementioned costs, this Court was constrained to take the written statement filed by the defendant nos.1 and 6 off the record vide order dated 12th September, 2018. Additionally, vide the same order, since none was appearing for defendant nos.2 to 5, they were proceeded ex parte.

4. The plaintiff shave filed their evidence by way of affidavit. However, thereafter, the defendant nos. 1 and 6 stopped appearing. Consequently, the defendant nos.1 and 6 are proceeded ex parte.

5. The contentions and submissions advanced by learned counsel for the plaintiffs are as under:-

i. The defendant no.1, a partnership firm comprising of defendant nos.2 to 6, had been inducted as a tenant in respect of commercial space admeasuring 1497 sq. ft. super built-up area bearing No. C-101, First Floor, Block C, Ansal Plaza, Hudco Place, New Delhi (hereinafter referred to as the ‘Suit Property’) by Ansal Properties and Industries Ltd. vide Sub Lease Agreement dated 13th November, 2001. (Ex. PW-1/2)

ii. On 28th September, 2004, the plaintiffs acquired the Suit Property from Ansal Properties and Industries Ltd.

iii. A Sub Lease Agreement dated 01st October, 2004 (Ex. PW-1/3) was executed between the plaintiffs and the defendant no.1. The relevant portion of the said lease agreement reads as under: -

“2. Duration

That the present Sub-Lease Agreement is for an initial period of three years out of which there will be an irrevocable period of 20 months (i.e. upto 31.5.2006) and the tenancy shall be deemed to commence with effect from 1st day October 2004. The sub-Lease agreement can be renewed at the option of the lesseee for a further period of 3 years with an escalation of 15% of the last paid rent. A fresh agreement will be stamped and got registered for the renewed term. After the expiry of above period the lease can be extended for further period at the option of the FIRST PARTY subject to mutually agreed terms and conditions by the SECOND PARTY every renewed term.

3: Rent

That the SECOND PARTY shall pay a sum of Rs.2,96,406/- (Rupees two lac ninety six thousand two hundred four only) per month as rent calculated at the rate of Rs.198/- per sq. ft. on super area basis per month to the FIRST PARTY for the demised premises of 1497 sq.ft. (super built up area).”

iv. The defendants were habitual defaulters and never tendered rent of the Suit Property in time.

v. The plaintiffs were constrained to adjust the outstanding dues of the defendants from the Security Deposit of the defendants in terms of Clause 7 of the Sub Lease A








Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top