IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Talwant Singh, JJ.
Manoj Gulshan & Anr. - Appellantss
Versus
Zee Learn Ltd - Respondent
First Appeal From Order (OS) (COMM) No. 5 of 2022, Civil Miscellaneous No. 1846-1848 of 2022
Decided On : 25-01-2022
arbitration and Conciliation act - Appellants filed appeal under Section 37 of the arbitration and Conciliation act, 1996 read with Section 13 of the Commercial Court act for modifying the impugned order dated 29.09.2021 passed by learned Single Judge in OMP (I) (COMM) No. 425/2020 titled as 'Manoj Gulshan & anr. vs. Zee Learn Limited' - Section 37, Section 13 of the Commercial Court act - The judgment discusses the application of Section 9 of the arbitration and Conciliation act, 1996 and the rights of the appellants to secure interest and damages from the respondent. The court also highlights the need for appointment of an arbitrator to adjudicate the main dispute between the parties. The judgment emphasizes the importance of securing the interest of the appellants and the need for proper adjudication of claims and counter-claims before the arbitrator.
Fact of the Case:
The appellants filed a petition under Section 9 of the arbitration and Conciliation act, 1996, seeking arrears of rent and damages from the respondent for the premises they owned. The respondent claimed to have vacated the premises, while the appellants disputed this. The court was concerned with securing the appellants' interest until proper adjudication of their claim and the respondent's counter-claim before an arbitrator.
Finding of the Court:
The court found that the learned Single Judge had rightly ordered the adjustment of the security deposit and secured the entire amount due till the date of the order. The court dismissed the appeal at the admission stage, emphasizing the need for proper adjudication of the disputes before the arbitrator.
Issues: The issues revolved around the termination of the lease agreement, vacation of the premises, and the need to secure the appellants' interest until proper adjudication of their claim and the respondent's counter-claim before an arbitrator.
Ratio Decidendi: The court emphasized the need to secure the interest of the appellants and the importance of proper adjudication of claims and counter-claims before the arbitrator. The court also highlighted the application of Section 9 of the arbitration and Conciliation act, 1996 in securing the interest of the appellants.
Final Decision: The appeal was dismissed at the admission stage, and the court ordered the need for proper adjudication of the disputes before the arbitrator.
JUDGMENT
Talwant Singh, J. - The appellants have filed the present appeal under Section 37 of the arbitration and Conciliation act, 1996 read with Section 13 of the Commercial Court act for modifying the impugned order dated 29.09.2021 passed by learned Single Judge in OMP (I) (COMM) No. 425/2020 titled as 'Manoj Gulshan & anr. vs. Zee Learn Limited', by which the learned Single Judge had disposed of the present appellant's petition filed under Section 9 of the arbitration and Conciliation act, 1996 (hereinafter referred to as 'the act').
2. In brief, the case of the appellant is that appellant no. 1 is the owner of the premises bearing No. a9/20, Ground Floor, Vasant Vihar, New Delhi-110057, which was given on a licence to the respondents for a period of ten years and the appellant no. 2 has done the furnishing and fittings in the said premises. The parties have entered into an agreement dated 06.02.2018 for a period of five years w.e.f. 01.02.2018. The rent was payable @ Rs.2,10,000/- per month from 01.03.2018 till 28.02.2019 and thereafter the rent was to be increased @5% annually.
3. as per the appellants, respondents had paid the rent till august, 2019 and thereafter no payments were made. The agreement was terminated by appellants by a letter dated 27.10.2019 and thereafter the respondent is liable to pay the user charges @ Rs.12,500 plus taxes per day. Since, the premises were not vacated, so they filed the petition under Section 9 of the act in this Court. The prayer clause of the said petition is reproduced hereunder:
1. 'Direct the Respondent to immediately pay to Petitioners arrears of ?59,02,918 [ RUPEES FIFTY NINE LaKH TWO THOUSaND NINE HUNDRED EIGHTEEN ONLY], on account of outstanding Invoices [Nos. 19-B Dt. 01.09.2019 to 32-B Dt. 01.10.2020] @ pre-settled 'Per Day Charges' for 425 days till 31.10.2020, Plus amounts becoming due till the Date of the Order.
2. Direct the Respondent to continue to deposit from the date of order in each succeeding month the consolidated charges each month @ ?12,500 per day Plus applicable Tax thereon, till the premises is 'Re-instated and 'handed-back to Petitioners';
3. In alternative direct the Respondent to vacate the premises forthwith after Reimbursing and clearing the following dues:-
(i) ?79,115=00 [RUPEES SEVENTY NINE THOUSaND ONE HUNDRED FIFTEEN ONLY], ON aCCOUNT OF UPaID ELECTRICITY BILLS PLUS 'ELECTRICITY REINSTaTEMENT CHaRGES) TO BE PaID TO BSES SERVICE PROVIDER;
(ii) ?95,35,903=00 [RUPEES NINETY FIVE LaKH THIRTY FIVE THOUSaND NINE HUNDRED aND THREE ONLY] on account of 'REINSTaTEMENT COSTS' as per Clause(s) V(a), V(f), besides others, of Contract Dt. 6.2.2018, payable by Respondent to Petitioner No 1/Owner/Licensor Mr. Manoj Gulshan.
(iii) ?22,70,650=00 [RUPEES TWENTY TWO LaKH SEVETY THOUSaND SIX HUNDRED FIFTY ONLY] 'REINSTaTEMENT COSTS' as per Clause(s) V(a), V(f), besides others, payable by Respondent to Owner/Licensor M/s. Mona International India/Petitioner no 2.
4. Direct the Respondent to secure and deposit before this Hon Court ?91,50,000=00 [RUPEES NINETY ONE LaKH FIFTY THOUSaND ONLY], on account of Mense profits / Damages claimed by Petitioners from Respondent, for illegally 'Sub-Letting and Misusing' the Premises for diverse Un-authorized Commercial activities and generating many fold Income by running these illegal activities from premises in question.
5. Pass Ex-Parte ad-interim Orders as interim measure for the preservation and protection of the Premises and items therein inundated in floodwaters and save / salvage the premises / items from irreparable loss and damage.
6. To restrain respondent from alienating or creating any third party rights or interest in the premises taken on License by the respondent from petitioner;
7. Pass award cots of the present proceedings for and in favour of Petitioners and against the Respondent herein.'
4. Notice in the petition under Section 9 of the act was issued by the learned Single Judge on 21.01.2020. although it has been
Permanand Verma & Anr vs. Vimal Chand Jain 1995 SCC Online Del326 : 59 (1995) DLT 515
Uttam Singh Duggal & Co. Ltd. vs. United Bank of India AIR 2000 SC 2740
The main legal point established in the judgment is the importance of securing the interest of the appellants and the need for proper adjudication of claims and counter-claims before the arbitrator.
The liability of the appellant to pay outstanding rent and maintenance charges was not restricted by a previous order, and the application under Section 9 of the Arbitration and Conciliation Act, 199....
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.
The main legal point established in the judgment is the court's reliance on the appellants' admissions regarding the landlord-tenant relationship, liability to pay rent, and termination of tenancy.
The liability of the defendant towards the admitted rent justified the Trial Court's exercise of power under Section 94 CPC read with Section 151 CPC to pass the impugned order of attachment.
A tenant cannot avoid payment obligations under a lease due to financial distress unless a clear force majeure clause exists, and prior conduct may preclude claims of non-liability.
Clear and unambiguous admissions by the defendant in a suit for possession can warrant a judgment on admission under Order 12 Rule 6 CPC. The expiration of a lease by efflux of time does not amount t....
The liability of tenants to pay arrears of rent and damages to the property, the burden of proof for repair costs, and the binding nature of counter claim awards.
The sufficiency of pleadings in a petition under section 9 of the Arbitration Act and the court's power to grant interim measures to secure a claim, considering the financial condition of the party a....
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