IN THE HIGH COURT OF DELHI AT NEW DELHI
Manoj Kumar Ohri, J.
Rattan Mehta & Anr. - Appellantss
Versus
Gayatri Shah & Ors. - Respondents
FAO 37/2020 & CM. Appl. No.3126/2020
Decided On : 29-08-2022
Interrogatories - Non-compliance with Order for Discovery - Delhi Rent Control Act, 1958 - Section 50 - Babbar Sewing Machine Company v. Trilok Nath Mahajan (1978) 4 SCC 188; Sawhney Brothers v. Hong Kong & Shanghai Banking Corporation & Others (2001 SCC OnLine Del 795); Sh. Shravan Kumar Gupta v. Sh. Tara Chand Gupta & Ors. (2013 SCC OnLine Del 3623); Maj Retd Sukesh Behl & Anr. v. Koninklijke Philips Electronics NV (2016 SCC OnLine Del 352) - The defendants' answer to the interrogatories, in the manner it was given, i.e., denying entering into and execution of the Agreement, would attract consequences envisaged under Order 11, Rule 21 CPC. The impugned order dated 23.12.2019 passed by the Trial Court is liable to be set aside. The appeal is allowed and it is ordered accordingly. Miscellaneous application is disposed of as infructuous. The written statement filed by defendant Nos. 1 and 2 is directed to be taken on record. Mindful of the above observation, the Trial Court is directed to proceed with the suit in accordance with law.
Fact of the Case:
The respondents/plaintiffs preferred a suit for possession, mesne profits and damages claiming themselves to be owners of a property. The defendants created a sub-tenancy in favor of M/s Mahima Caps (P) Ltd. by entering into an Agreement dated 15.07.2004. The plaintiffs sought leave to deliver interrogatories to the defendants regarding the Agreement, which the defendants failed to answer. The Trial Court directed that defendants' defence in the suit be struck off and the written statement filed by the defendant Nos.1 and 2 was also directed to be taken off the record.
Finding of the Court:
The defendants' answer to the interrogatories, in the manner it was given, i.e., denying entering into and execution of the Agreement, would attract consequences envisaged under Order 11, Rule 21 CPC. The impugned order dated 23.12.2019 passed by the Trial Court is liable to be set aside. The appeal is allowed and it is ordered accordingly. Miscellaneous application is disposed of as infructuous. The written statement filed by defendant Nos. 1 and 2 is directed to be taken on record. Mindful of the above observation, the Trial Court is directed to proceed with the suit in accordance with law.
Issues: Non-compliance with Order for Discovery, Consequences of non-compliance with interrogatories, Striking off of defendant's defence
Ratio Decidendi: The defendants' answer to the interrogatories, in the manner it was given, i.e., denying entering into and execution of the Agreement, would attract consequences envisaged under Order 11, Rule 21 CPC. The impugned order dated 23.12.2019 passed by the Trial Court is liable to be set aside.
Final Decision: The appeal is allowed and it is ordered accordingly. Miscellaneous application is disposed of as infructuous. The written statement filed by defendant Nos. 1 and 2 is directed to be taken on record. Mindful of the above observation, the Trial Court is directed to proceed with the suit in accordance with law.
JUDGMENT
Manoj Kumar Ohri, J. - By way of present appeal filed under Order XLIII Rule 1(f) read with Section 151 CPC, the appellants have assailed the order dated 23.12.2019 passed by the learned ADJ-04, Patiala House Courts, New Delhi in CS No.55540/2016, whereby the appellants'/defendants' defence was struck off and the written statement filed by them was directed to be taken off the record.
2. Brief facts, in nutshell, to appreciate the challenge are that the respondents/plaintiffs preferred a suit for possession, mesne profits and damages. In the plaint, the respondents claimed themselves to be owners of property bearing No. 25-A, C Block, Vasant Vihar Market (Local Shopping Centre-1), New Delhi (hereinafter, referred to as 'the suit property'). It was further claimed that a shop on the ground floor of the suit property was leased to Smt. Anju Mehta and appellant No.1 vide Lease Deed dated 15.05.1984 at a monthly rent of Rs.1,500/-, whereafter the defendants created a sub-tenancy in favour of M/s Mahima Caps (P) Ltd. by entering into an Agreement dated 15.07.2004 (hereinafter, referred to as 'the Agreement'). The Agreement, a copy of which was filed alongwith the plaint, was statedly executed on behalf of defendants' partnership firm M/s Rain through Smt. Anju Mehta and her son Rattan Mehta-the appellant. Under the said Agreement, M/s Mahima Caps (P) Ltd. was required to pay Rs.1 lac per month as minimum guaranteed proceeds towards the profit/sale.
3. It was pleaded before the Trial Court that the defendants having created sub-tenancy were no longer entitled to protection under the Delhi Rent Control Act, 1995. In support of the averment, they had placed on record a copy of the Agreement and averred that the original Agreement was in possession of the defendants.
4. While the alleged sub-tenants were proceeded ex-parte, the appellants appeared and filed a written statement, wherein they admitted the partnership of their firm M/s Rain with M/s Mahima Caps (P) Ltd., but not the execution, existence and possession of the Agreement. On 30.01.2018, the issues were framed by the Trial Court and those relevant to the present controversy are extracted below:-
"1. Whether the suit of the plaintiff's is barred under Section 50 of the Delhi Rent Control Act, 1958? OPD 1 and 2.
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5. Whether the amount received as monthly minimum guaranteed profit of Rs.1,00,000/- by defendant no.l and Smt. Anju Mehta (since deceased now represented by defendant no.1 and 3) from defendant no.4 under the agreement dated 15.07.2004, was in the nature of the rent or not? OPP.
6. Whether the plaintiff's are entitled to a decree of possession of the suit premises in terms of prayer clause (a)? OPP.' (emphasis added)
5. An application came to be filed on behalf of the plaintiffs under Order 11 Rule 1 read with Section 151 CPC seeking leave to deliver following interrogatories to defendant Nos.1 and 2:-
"(a) Was not the agreement dated 15.07.2004, a true photocopy of which has been placed on record by the Plaintiffs, entered/executed between M/s. Rain, through its partners Smt. Anju Mehta w/o late Shri Surinder Mehta and Shri Rattan Mehta s/o late Shri Surinder Mehta (Defendant No.1 herein), and M/s. Mahima Caps Private Limited (Defendant No.4 herein), through its Managing Director Shri Dhiraj Arora, with respect to property No.25-A, situated in C Block, Vasant Vihar Market (local shopping Centre-I), New Delhi-110057, whereby M/s Mahima Caps Private Limited was to pay minimum guaranteed profit of Rs 1,00,000/- per month to M/s RAIN of which Smt Anju Mehta and Shri Ratan Mehta were partners."
6. The defendants filed a reply to the said application and did not admit the existence or their possession of the Agreement. The relevant portion of the reply is extracted below :-
"2. ...The plaintiffs are to prove the said documents in accordance with law and not by way of alleged interrogatory which is in the form of fishing enquiry. The original of the said document will speak
Babbar Sewing Machine Company vs. Trilok Nath Mahajan reported as (1978) 4 SCC 188
Shri M.L. Sethi vs. Shri R.P. Kapur reported as (1972) 2 SCC 427
Non-compliance with Order for Discovery - The defendants' answer to the interrogatories, in the manner it was given, i.e., denying entering into and execution of the Agreement, would attract conseque....
Trial court justified in striking out defence under Order XI Rule 21 CPC for willful non-compliance with unchallenged order to produce pleaded documents on oath.
Defendants must provide complete and truthful responses to interrogatories; failure to comply with court orders justifies correction by higher courts.
Point of Law : There is a landlord tenant relationship, the burden automatically falls upon the tenant to prove that he is not a defaulter in payment of rent.
The breach of a status-quo order and the execution of a Power of Attorney were considered, and the court upheld the Appellate Court's decision, directing the deposit of the Power of Attorney and rest....
If tenants fail to vacate said premises on expiry of tenancy period, tenants shall pay a sum of Rs.3,000/- per day towards penalty alongwith monthly rent to landladies.
Non-compliance with court orders can lead to severe consequences, including striking off of defenses, particularly in cases of willfulness.
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