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2023 Supreme(Del) 5232

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tara Vitasta Ganju, J.
Arun Gupta – Appellant
Versus
M/s Swami Hari Sharna Nand Charitable Trust – Respondent
RC.REV. 123 of 2020 & CM APPL. 8569 of 2020, CM APPL. 9346 of 2020 & CM APPL. 39547 of 2022
Decided On : 21-06-2023

Advocates appeared:
Mr. Sanchit Garg, Advocate, for the Petitioner.
Mr. Narayan Krishan, Advocate, for the Respondent.

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 principle established in Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd.

Headnote:

Eviction Order - Use and Occupation Charges - Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd. - [2005) 1 SCC 705, (2022) 8 SCC 527] - The court directed the tenant to pay use and occupation charges at market rate till the final disposal of the petition. The interim use and occupation charges were fixed at Rs.1,50,000/- per month from June, 2023 onwards, and at the rate of Rs.25,000/- per month for the period from the Eviction Order till 31.05.2023. The arrears were to be paid in instalments and all payments were to be made into the bank account of the landlord.

Fact of the Case:

The landlord filed an application seeking directions for the payment of use and occupation charges by the tenant for the demised premises from the date of the Eviction Order till the present Revision Petition is finally adjudicated by the Court. The tenant had obtained interim protection by the Court and had not paid the use and occupation charges.

Finding of the Court:

The Court found that the tenant was required to pay the use and occupation charges at market rate till the final disposal of the petition, as per the decision in Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd. The court fixed interim use and occupation charges at Rs.1,50,000/- per month from June, 2023 onwards, and at the rate of Rs.25,000/- per month for the period from the Eviction Order till 31.05.2023.

Issues: The issues involved the payment of use and occupation charges by the tenant for the demised premises, the interim protection obtained by the tenant, and the application of the legal principles established in Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd.

Ratio Decidendi: The court relied on the legal principle established in Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd. and held that the tenant was required to pay the use and occupation charges at market rate till the final disposal of the petition. The court also considered the nature of the demised premises and the commercial use by the tenant in determining the interim use and occupation charges.

Final Decision: The court disposed of the application by directing the tenant to pay the use and occupation charges at the specified rates and in instalments, and to continue the interim protection subject to the payment of arrears. The parties were instructed to act based on the digitally signed copy of the order, and the matter was listed for a future date.

JUDGMENT

Tara Vitasta Ganju. J.

CM APPL. 39547/2022[Application seeking directions for payment of use and occupation charges]

1. The present Application has been filed on behalf of the Respondent/landlord seeking directions to the Petitioner/tenant to pay use and occupation charges of the premises, i.e., One back hall at Ground Floor and One back Hall at Mezzanine Floor in Property bearing Plot no. 22, Block-E, Darya Ganj, South (Municipal No. 4961) Ward 11, Main Faiz Bazar Road, Netaji Subhash Marg, Darya Ganj, Delhi [hereinafter called "demised premises"] from the date of the Order dated 19.11.2015 [hereinafter called "Eviction Order"] till the present Revision Petition is finally adjudicated by the Court.

1.1. The record shows that the execution of the Eviction Order was stayed by the coordinate bench of this Court on 03.03.2020.

2. This Court had on 08.09.2022, directed the Petitioner/tenant to file a Reply to the present Application. Since no Reply was filed, by Order dated 17.01.2023, this Court had granted a last opportunity to the Petitioner/tenant to file a Reply within three weeks.

2.1. The matter was listed for the affixation of use and occupation charges qua the demised Premises on 19.05.2023. Since, the time for filing a Reply had expired on 08.02.2023 and no Reply had been filed till date, the Petitioner/tenant's right to file a Reply to the Application was closed on 19.05.2023.

3. Mr. Narayan Krishan, learned Counsel who appears on behalf of the Respondent/landlord, submits that the Petitioner/tenant is in occupation of the demised premises for more than the last 20 years.

3.1. Mr. Krishan, further submits that Petitioner/tenant has obtained the interim protection by this Court on 03.03.2020 and since then, no use and occupation charges are being paid by the Petitioner/tenant.

3.2. It was submitted by the Respondent/landlord that in terms of the decision of the Supreme Court in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd., (2005) 1 SCC 705, once the Eviction Order has been passed, the tenant is required to pay the use and occupation charges at market rate till the final disposal of the present Petition.

3.3. Mr. Krishan submits that the true copies of the registered lease deed of "like premises" have been filed along with CM Appl. 44832/2022 in the present matter.

4. I have heard the learned Counsel and have perused the record.

5. The law as laid down by the Supreme Court in Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd. (supra) has been re-affirmed by the Supreme Court in Martin and Harris Private Limited and Another v. Rajendra Mehta and Others, (2022) 8 SCC 527, where it has been held that the direction to pay mesne profits or compensation will depend on the facts and circumstances of each case, including on the location of the property whether it is in a village, city, or metropolitan area as well as its nature whether it is a commercial or residential area and the standard rate of rent serving as guiding factors in the facts of each case.

6. An analysis of the information given by the Respondent/landlord qua the lease agreement for similarly situated premises can be conveniently set forth in terms of the tables below:

6.1. Lease Deeds placed by the Respondent/landlord on record:

Property E-23, GF, Netaji Subhash Marg, Daryaganj, Delhi-110002
Size2078 Sq. Ft. Carpet Area.
NatureCommercial
Description/detailsPremises are let out for the functioning of Domino's pizza restaurant chain. (adjoining tenanted premises)
RentRs,4,00,000/- per month
PropertyGround floor, E-24, Netaji subhash marg, Darya Ganj, New Delhi-110002
Size1200 Sq. Ft. Carpet Area
NatureCommercial
Description/DetailsPremises are let out for retail premises relating to Convenience/General store.
RentRs.3,00,000/- to Rs.3,45,000/- per month

6.2. No Sample Lease Deeds have been placed by the Petitioner/tenant on record.

6.3. For the purpose of comparison, the demised Premises can be described in the following manner:

Property One bac

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