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2021 Supreme(Del) 837

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Sh. Suraj Arora - Appellant
Versus
Smt. Taranjeet Chawla - Respondent
RSA 66 of 2021, CM Appls. 30468 of 2021, 30470 of 2021 and 30471 of 2021
Decided On : 21-09-2021

Advocates appeared:
Mr. Sanjeev Sagar and Ms. Nazia Parveen, Advocates with Appellant, for the Appellant; Mr. Manish Gandhi, Mr. Hemant Verma, Mr. Madhusodan Singh and Mr. Shri.pal Upadhyay, Advocate, Rajinder Chawla, for the Respondent.

Headnote:

Enhancement Agreement - Recovery of Possession and Arrears of Rent - Delhi Rent Control Act - [Section 50 of Delhi Rent Control Act] - The court upheld the Judgment and decree dated 18th November, 2019 passed by ld. Civil Judge-01, (West), Tis Hazari Courts, Delhi in favor of the landlady for recovery of possession and arrears of rent. The Defendant, a tenant, had taken the property on rent and an 'Agreement for Enhancement of Rent' was executed between the new owner and the Defendant, fixing the rent at Rs. 12780/-. The tenancy was terminated due to default in payment of the enhanced rent. The Defendant challenged the validity of the Enhancement Agreement and the ownership of the Plaintiff, but the court found the Defendant's conduct to be dishonest and dismissed the appeal, imposing a cost of Rs. 5 lakhs on the Defendant.

Fact of the Case:

The Defendant, a tenant, challenged the Judgment and decree dated 18th November, 2019 passed by the Trial Court in favor of the landlady for recovery of possession and arrears of rent. The Defendant had taken the property on rent and an 'Agreement for Enhancement of Rent' was executed between the new owner and the Defendant, fixing the rent at Rs. 12780/-. The Defendant challenged the validity of the Enhancement Agreement and the ownership of the Plaintiff.

Finding of the Court:

The court found the Defendant's conduct to be dishonest and an abuse of process of law. The Defendant had made a clear admission as to his signature on the Enhancement Agreement during his cross-examination, but repeatedly challenged its validity. The court dismissed the appeal, upholding the Judgment and decree of the Trial Court, and imposed a cost of Rs. 5 lakhs on the Defendant.

Issues: The issues included the validity of the Enhancement Agreement, ownership of the Plaintiff, and the conduct of the Defendant in delaying the final arguments and abusing the process of law.

Ratio Decidendi: The Defendant's conduct, including his admission of the Enhancement Agreement and subsequent attempts to challenge its validity, was found to be dishonest and an abuse of process. The court also noted the Defendant's repeated attempts to delay the final arguments and the execution of the decree. The court imposed a cost of Rs. 5 lakhs on the Defendant for his conduct.

Final Decision: The appeal was dismissed, upholding the Judgment and decree of the Trial Court, and imposing a cost of Rs. 5 lakhs on the Defendant. The possession of the suit property was ordered to be handed over to the Plaintiff within a period of four weeks, and the arrears of rent were to be paid by the Defendant by the same date.

JUDGMENT

Prathiba M. Singh, J.(Oral). - This hearing has been done through hybrid mode.

2. The present second appeal arises out of the impugned order dated 2nd February, 2021 passed by Ld. ADJ, West District, Tis Hazari Court, New Delhi {hereinafter "Appellate Court") in RCA No. 161/2019 titled Suraj Arora v. Taranjeet Chawla. By the impugned order, the Appellate Court upheld the Judgment and decree dated 18th November, 2019 passed by ld. Civil Judge-01, (West), Tis Hazari Courts, Delhi {hereinafter "Trial Court") in CS SCJ No. 611070/2016/14 titled Smt. Taranjeet Chawla v. Suraj Arora. The Trial Court had decreed the suit for recovery of possession and for recovery of arrears of rent and mesne profits in favour of Smt. Taranjeet Chawla, the landlady/Respondent herein {hereinafter "Plaintiff").

3. The background of the case is that the tenant/Appellant herein (hereinafter "Defendant"), Mr. Suraj Arora, had taken the property bearing No. WZ-48, out of Khasra No.26, admeasuring 75 sq. yds. situated at Tatarpur Village, Main Najafgarh Road, New Delhi - 110027 (hereinafter "suit property ") on rent from the erstwhile landlords of the suit property in the year 1989. The original rent fixed for the suit property was Rs. 300/- per month which was enhanced to Rs. 600/- per month w.e.f. March, 1991. The last paid rent to the erstwhile landlord is stated to be Rs. 968/- per month for the period from April, 2012 to June, 2012. Thereafter, the suit property which was earlier under the joint ownership of the erstwhile landlords, was purchased by the Plaintiff, vide Sale Deed dated 17th August, 2012 which was registered on 10th September, 2012. An "Agreement for Enhancement of Rent' (hereinafter"Enhancement Agreement") was executed on 2nd September 2012 between the new owner and the Defendant, by which the rent was fixed as Rs. 12780/-. The Defendant continued as the tenant in respect of the suit property, even after the purchase of the suit property by the Plaintiff. However, the tenancy was terminated vide Legal Notice dated 26th November, 2013, on account of default in payment of the monthly rent of Rs. 12,780/- from October, 2013 onwards. The Defendant replied to the said Legal Notice, vide Reply dated 26th November, 2013, claiming that the rent of the suit property was Rs. 1,065/- per month, and not Rs. 12,780/- per month. The Defendant also stated that he had already paid two years' rent at the rate of Rs. 12,780/- per annum, for the period from July, 2012-June, 2013 and July, 2013-June, 2014.

4. Accordingly, on 22nd January, 2014, the Plaintiff instituted the suit before the Trial Court seeking the reliefs of recovery of possession and for recovery of arrears of rent and mesne profits in respect of the suit property, on the strength of the Enhancement Agreement dated 2nd September, 2012. The Plaintiff averred that the said Enhancement Agreement having been entered into by the Defendant and having not paid the monthly rent, the tenancy was terminated. Evidence was led in the matter, and vide Judgment and decree dated 18th November, 2019, the Trial Court decreed the suit in the following terms:

"In view of the aforementioned findings and observations, the suit of the plaintiff is decreed on following terms:

    1. Defendant is directed to hand over the possession of the suit property i.e. Ground Floor, admeasuring 10-1/2x30 (feet) along with basement admeasuring 10-1/2x30 (feet) within one month of passing of this order.

    2. Plaintiff is entitled to arrears of rent for the month of October, November and December, 2013, at the rate of Rs.12,780/-p.m.

    3. Plaintiff is entitled to mesne profits @ Rs. 12,780/- w.e.f January, 2014 till vacation of the suit property.

    4. Plaintiff is entitled to interest @ 8% p.a. on the arrears of rent and mesne profits from January, 2014 till the vacation of the suit property by the defendant."

    5. The said Judgment and decree dated 18th November, 2019 was challenged in appeal by the Defendant. The said appeal was dismissed

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