IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmeet Pritam Singh Arora, J.
Sonia Mehra - Petitioner
Versus
Hari Chand Verma - Respondent
RC. Rev. No.22 Of 2020
Decided On : 17-01-2023
Delhi Rent Control Act, 1958 - Section 25(B), 2(l) - Eviction order - Possession of tenanted premises - Seeking direction to Petitioner, to pay a sum of Rs.1,25,000/- per month as use and occupation charges from date of eviction order passed by Rent Controller, till date of actual handing over of possession of tenanted premises to Respondent – Held, Court has considered this dissimilarity and is of opinion that even if location of tenanted premises is on a 16 feet wide lane, variation in rent cannot be more than 25%, for similar sized shops, in same commercial market area - Tenant is accordingly, directed to pay use and occupation charges as per rate as stated at paragraph 11.4 of this order - Arrears shall be paid in four equal instalments - In case Tenant defaults in making payment of arrears and/or current use and occupation charges as directed by this Court, interim order granted shall stand vacated - Application allowed.
JUDGMENT :
[Manmeet Pritam Singh Arora, J.] :
CM APPL. 41155/2022 (Fixation of use and occupation charges)
1. The present application has been filed by the Respondent, Landlord, seeking a direction to the Petitioner, Tenant, to pay a sum of Rs.1,25,000/- per month as use and occupation charges from the date of eviction order i.e., 17.07.2019 passed by the Rent Controller, till the date of actual handing over of the possession of the tenanted premises to the Respondent.
2. Learned counsel for the Respondent relies upon rental amount, specified in the certified copies of two registered lease deeds, for similar sized shops located in the vicinity of the tenanted premises. She states that the use and occupation charges of the tenanted premises may be fixed at Rs.1,25,000/- per month being commensurate with the market rent.
3. She states that the Tenant is presently paying a meagre sum of Rs.974/- per month towards monthly rent, excluding all the taxes and charges. She states that the execution of the eviction order dated 17.07.2019 has been stayed by this Court vide interim order dated 15.01.2020. She states that with the passing of the eviction order, the tenancy stands terminated and the Tenant is liable to pay market user charges during the pendency of this petition. She relies upon the judgment of this Court in R.K Naith Through Rakesh Kainth, Guardian v. Swadesh Kumar Bhagi & Ors., 275 (2020) DLT 176.
4. In reply, learned counsel for the Petitioner states that the shop premises, which are subject matter of the registered lease deeds filed by the Landlord are situated on a 60 feet wide main road and therefore, have greater commercial viability. In contrast, he states that the tenanted premises is situated on a 16 feet wide lane and therefore, the user charges for the said premises cannot be fixed at Rs.1,00,000/- or Rs.1,25,000/- as stated in the application.
5. He states that however, without prejudice to her rights and contentions, the Tenant is willing to pay damages of Rs.10,000/- per month. He states the market rent cannot be awarded as contended by the Landlord and a reasonable amount should by fixed by the Court considering that the Tenant has filed the present revision petition in exercise of her statutory right under Section 25(B) of the Delhi Rent Control Act, 1958. He relies upon the judgment of the Supreme Court in Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd., (2005) 1 SCC 705, to contend that the user charges determined by this Court should be a reasonable amount in context of the rate of rent paid prior to passing of the eviction order.
6. He also relies upon the judgment of Hon’ble Supreme Court in State of Maharashtra and Another v. Super Max International Private Limited and Others : (2009) 9 SCC 772 to contend that the Tenant should be permitted to deposit the user charges with the Registry of this Court and there should be no direction to make payment to the Landlord.
7. In rejoinder, learned counsel for the Respondent states that both the submissions of the Tenant are contrary to the directions contained at paragraph 19 of Atma Ram Properties (P) Ltd. (supra). She further, states that the shop premises which are subject matter of the two registered lease deeds are located at a distance of 200 sq. yards from the tenanted premises and therefore the rent reserved therein is duly applicable.
8. This Court has heard the learned counsel for the parties and perused the pleadings in the application.
9. The shop premises which are subject matter of the said two lease deeds are located at Hauz Qazi, Chawri Bazar, Delhi – 110006.
9.1. The first lease deed annexed with the application is with respect to a shop admeasuring 24.86 sq. metre (267.5 sq. feet) and it is for the period of 36 months from 10.07.2018 till 09.07.2021. The rental reserved under the said lease deed is Rs.1,50,000/- per month for first 12 months, wit
Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd.
State of Maharashtra and Another v. Super Max International Private Limited and Others
The tenant must compensate the landlords for the loss occasioned by the stay granted by the Court on the execution of the eviction order, and the best indicator for fixing the compensation payable by....
Tenant cannot claim himself/herself to be tenant qua the premises in question after passing of eviction order and courts after passing of eviction order can always put the tenant of premises to terms....
The main legal point established in the judgment is that the tenancy terminated with the passing of the eviction order, and the tenants were liable to pay use and occupation charges to reasonably com....
The court emphasized the necessity of fixing user and occupation charges that reflect fair market rent as a reasonable compensation for landlords during the pendency of eviction appeals.
A tenant is required to pay use and occupation charges at the market rate of like premises till the final disposal of the Petition, and the determination of mesne profits or compensation depends on f....
The main legal point established is the requirement for a tenant to pay use and occupation charges at the market rate of similar premises till the final disposal of the petition, considering the fact....
Tenants must compensate landlords for use and occupation of premises at market rates post-eviction decree, irrespective of prior contractual agreements.
The main legal point established in the judgment is the determination of use and occupation charges based on the market rate of like premises, considering the location, size, and condition of the pro....
The main legal point established in the judgment is that the tenant is required to pay the use and occupation charges at market rate till the final disposal of the petition, as per the legal principl....
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