Facilitation of settlement based on the ex facie penal nature of a clause in the lease agreement.

JUDGMENT

[Physical Hearing/Hybrid Hearing (as per request)]

Rajiv Shakdher, J.: (Oral)

1. We had commenced hearing arguments in the appeal.

2. During the course of hearing, it was suggested to Mr Brijesh K. Tamber, who appears on behalf of the appellant, as to whether the appellant is still willing to make an offer for settlement, given the age of the respondent.

2.1. The respondent, who appears in-person, has also expressed his desire to close the matter.

3. As noticed in the very first order passed in the appeal on 21.02.2022, the appeal was confined to the relief which has been granted in the impugned judgment by the learned District Judge (Commercial Court)-02, as reflected in paragraph 52(B) of the said judgment.

3.1. The learned District Judge has awarded Rs.22,80,000/- towards damages at the rate of Rs.5,000/- per day for the period spanning between 01.02.2018 and 02.05.2019, albeit, after adjustment of rent which has been paid by the appellant at the rate of Rs.30,000/- per month till the date the subject premises were vacated and handed over to the respondent.

4. This relief was pivoted on Clause III (2) of the lease deed dated 08.04.2013 which had been executed between the parties. The said clause read as follows:

"III. IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1..........

2. If the lessee do not vacate the premises on the final date of lease i.e. by 31-01-2018 unless its further renewal by the Lessor. Than [sic - then] the lessee will by [sic - pay] a penalty Rs.5000/- per day till the lessee finally vacate the premises...."

5. Given the fact, that the clause was ex facie penal in nature, both parties have agreed to settle the dispute, instead of prolonging the litigation any further.

6. Mr Tamber says that has sought instructions from Mr Gopal Dixit, the Managing Director of the appellant.

6.1. Mr Tamber says, that Rs.3,00,000/- towards full and final settlement in satisfaction of the relief granted under paragraph 52(B) of the impugned judgment will be paid to respondent, within four (4) weeks commencing from today.

6.2. This offer has been accepted by the respondent, who is, as indicated above, present in-person.

7. The appeal is disposed of in the aforesaid terms, as agreed by the parties.

8. List the matter for compliance on 15.02.2023.

9. Before we conclude, we must record our appreciation for the assistance rendered in the matter by Mr Raghvendra M. Bajaj, Advocate on behalf of the respondent. We had to requisition the services of Mr Bajaj, as the respondent is nearly ninety years old.