2021 Supreme(Del) 2141
IN THE HIGH COURT OF DELHI AT NEW DELHI
Mukta Gupta, J.
Asha Dass & Ors. - Appellants
Versus
Prime Road Solutions Pvt. Ltd. & Ors. - Respondents
C.S. (Comm) No. 711 of 2017
Decided On : 06-07-2021
Rahul Gupta, Advocate, Megha Gupta, Advocate, Varun Kumar, Advocate, Raghuveer Kapur, Advocate, Shekhar Dasi, Advocate
The main legal point established is that disputes requiring evidence cannot be decided based solely on pleadings, and the entitlement of basic amenities to trespassers and tenants at sufferance.
Headnote:
Rent Dispute - Property Possession - Order XXXIX Rule 10 CPC, Order XIIIA CPC - [Rent Dispute] - [Order XXXIX Rule 10 CPC, Order XIIIA CPC] - The court discussed the dispute over rent arrears, possession of the property, and the termination of tenancy. The key legal provisions discussed include the rights and obligations of landlords and tenants, the status of tenant at sufferance, and the entitlement of basic amenities to trespassers. The court's decision was influenced by the interpretation of these provisions and the need for evidence before passing summary judgment.
Fact of the Case:
The plaintiffs sought possession of a property and recovery of rent arrears, while the defendants disputed the rent owed and claimed damages. The court analyzed the dispute over possession, rent arrears, and termination of tenancy.
Finding of the Court:
The court found that the dispute over the usability of the property and the disconnection of electricity required further evidence and could not be decided based solely on pleadings. The court also allowed the deletion of certain defendants from the case.
Issues: Dispute over rent arrears, possession of the property, termination of tenancy, and the usability of the property due to electricity disconnection.
Ratio Decidendi: The court held that the dispute regarding the usability of the property and electricity disconnection required evidence and could not be decided based on pleadings alone.
Final Decision: The court dismissed the plaintiffs' applications for summary judgment and allowed the deletion of certain defendants from the case.
JUDGMENT
Mukta Gupta, J. - I.A. 4893/2020 (under Order XXXIX Rule 10 CPC r/w Order XV-A Rule 1 CPC-by plaintiffs)
I.A. 2830/2020 (under Order XIIIA CPC-summary judgment-by plaintiffs)
I.A. 2831/2020 (under Order I Rule 10 (2) CPC-by defendant Nos.2 & 3 for deletion from the array of parties)
1. The present suit was filed by the plaintiffs impleading Prime Road Solutions Pvt. Ltd., Vivek Yadav, Inderjeet and Subramaniah Syamala Murthy as defendant Nos. 1 to 4. By the suit, the plaintiffs sought a decree of possession of the suit property and recovery of arrears of rent besides damages/mesne profits along with the interest thereon. Case of the plaintiffs is that the plaintiff Nos. 1 to 4 are the owners of the premises forming part of the property bearing No. 21A, Janpath, New Delhi i.e. front portion of the first floor admeasuring 2000 square feet covered area (in short, the 'suit property'). The suit property was let out to defendant No. 1 company vide the registered lease deed dated 9th September, 2015 for a period of three years effective from 1st July, 2015 upto 30th June, 2018. Though the possession of the suit property was handed over to the defendant No. 1 company on 1st June, 2015 for carrying out the interior works, however, the monthly rent was to start with effect from 1st July, 2015. The monthly rent of the premises was agreed and fixed at Rs. 5 lakhs less Tax Deducted at Source (TDS) payable quarterly and it was also agreed that any delay in the payment of rent beyond 7th day upto 15 days, shall attract 2% interest and beyond 30 days after service of notice, shall give the right to the owners to terminate the lease forthwith.
2. Learned counsel for the plaintiffs submits that after the present suit was filed, the possession of the premises was handed over on 31st May, 2018 and that arrears of rent started from 1st April, 2017. Further, legal notice was issued to the defendant No. 1 on 15th/16th May, 2017, terminating the tenancy with effect from 31st May, 2017. It is thus claimed that the defendant No. 1 owes arrears of rent for the months of April and May, 2017 amounting to Rs. 10 lakhs plus damages/mesne profits for a period of 12 months from 1st June, 2017 to 31st May, 2018 amounting to Rs. 60 lakhs. The arrears of TDS from 1st July, 2015 to 31st March, 2017 i.e. Rs. 10,50,000/- have since been deposited by the defendant No. 1, however, the service tax due amounting to Rs. 10,15,000/- from 1st April, 2016 to 31st May, 2017 is pending. The defendant No. 1 had deposited a security for a sum of Rs. 25 lakhs and further paid a sum of Rs. 13,50,000/- when the plaintiffs filed complaint under Section 138 Negotiable Instruments Act. It is thus claimed that out of the total amount due of Rs. 80,15,000/-, the balance amount due towards the defendants was Rs. 41,65,000/- with interest thereon.
3. Case of the defendants in the written statement is that from 17th October, 2017 to 18th March, 2018, the electricity to the suit premises was got disconnected at the instance of the plaintiffs and hence, the defendant No. 1 is not liable to pay the rent for the said period because defendant No. 1 could not utilize the premises. Hence the defendants are liable to pay no amount in view of the dues having been adjusted from the security deposit and the additional sum of Rs. 13,50,000/- paid. Further, defendant No.1 has filed a counter claim which is pending adjudication.
4. According to learned counsel for the defendants, the defendant No. 1 has already cleared the arrears of rent for the months of April, May and June, 2017 when it made payment of Rs. 13,15,000/- during the pendency of the complaint under Section 138 of the Negotiable Instruments Act. Further, since at the instance of the plaintiffs, the electricity at the suit premises was disconnected, the defendant No.1 could not utilize the suit premises with effect from 17th October, 2017 to 18th March, 2018 and hence, the defendant No.1 is not liable to make any payment for the said