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2023 Supreme(Del) 3850

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tara Vitasta Ganju, J.
Juglal Ram Chander – Appellant
Versus
Sh. Surinder Pal Jain – Respondent
RC.REV. No. 500 of 2019 & CM Appl.38094 of 2019
Decided On : 10-08-2023

Advocates appeared:
Mr. P.K. Rawal, Mr. Tarun Agarwal & Mr. Rishabh Sharma, Advocates, for the Petitioner.
Mr. S.S. Jain and Mr. Nikesh Jain, Advocates, for the Respondent.

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 property.

Headnote:

Eviction Order - Use and Occupation Charges - Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd., (2005) 1 SCC 705, Martin and Harris Private Limited and Another v. Rajendra Mehta and Others, (2022) 8 SCC 527 - The court discussed the application seeking directions to pay use and occupation charges, referencing the law laid down in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd., (2005) 1 SCC 705 and the recent judgment in Martin and Harris Private Limited and Another v. Rajendra Mehta and Others, (2022) 8 SCC 527. The court considered the market rate of like premises, the location of the property, and the nature of the area in determining the use and occupation charges.

Fact of the Case:

The Respondent/landlord filed an application seeking directions to the Petitioner/tenant to pay use and occupation charges of a big Shop from the date of the Eviction Order till the Revision Petition is finally decided. The Respondent claimed that the demised Shop is in a prime commercial area and should earn more than Rs.1,00,000 per month, while the Petitioner argued that the user charges cannot be more than Rs.10,000 per month due to the old and dilapidated condition of the building and the narrow lane access.

Finding of the Court:

The court found that the demised Shop, being in a prime commercial area, should earn a higher use and occupation charge. It fixed the user charges at the rate of Rs. 25,000 per month, considering the size and location of the demised Shop, but discounted the rate due to the old and dilapidated building.

Issues: The main issue was the determination of the use and occupation charges for the demised Shop, considering its location, size, and the condition of the building.

Ratio Decidendi: The court relied on the law laid down in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd., (2005) 1 SCC 705 and the recent judgment in Martin and Harris Private Limited and Another v. Rajendra Mehta and Others, (2022) 8 SCC 527 to determine that the tenant is required to pay the use and occupation charges at the market rate of like premises till the final disposal of the Petition, considering the location of the property and its nature.

Final Decision: The Petitioner/tenant was ordered to pay use and occupation charges at the rate of Rs. 25,000 per month, with arrears of rental payment and subsequent payments to be made as specified by the court. The interim order for protection was continued subject to timely payment, and any default in payment would dissolve the interim protection.

JUDGMENT

Tara Vitasta Ganju, J.

CM Appl.12463/2023[Application seeking directions to pay use and occupation charges]

1. This is an Application filed by the Respondent/landlord seeking directions to the Petitioner/tenant to pay use and occupation charges of the premises i.e., a big Shop bearing no. 4332 (area admeasuring about 100 sq. mts.) situated on the ground floor, Gali Bahuji, Bahadurgarh Road, Sadar Bazar, Delhi-110006 [hereinafter referred to as the "demised Shop"] from the date of the Eviction Order dated 19.02.2019 [hereinafter referred to as "Eviction Order"] till the Revision Petition is finally decided by this Court/date of vacation of the demised Shop.

Contentions on behalf of the learned Counsel for the Respondent/landlord are as follows:

2. Learned Counsel appearing on behalf of the Respondent/landlord submits that:

    (i) The predecessor-in-interest of Petitioner/tenant has been a tenant and in occupation of the demised Shop since 1935, and upon inheriting the tenancy rights of the demised Shop, the Petitioner/tenant was paying rent at the rate of Rs.22 and 13 Anna. The last rent paid was Rs. 33/- per month on 23.12.2017, as deposited before the Trial Court.

    (ii) The execution of the Eviction Order was stayed by this Court on 26.08.2019.

    (iii) It is contended that the demised Shop is a very large shop, having a covered area of about 100 sq. mts. on the ground floor, situated in a commercial area at Sadar Bazar, Delhi-110006. The demised Shop is in wholesale market area and on a wide road with ample space for parking for commercial loading and unloading by trucks and tempos. Reliance is placed on the photographs of the demised Shop as well as on shops in the vicinity which are annexed at Annexure R5 with the present Application [at page nos. 46 and 47].

    (iv) The Respondent/landlord is regularly paying property tax on the Unit Area Method of property tax levied/collected by MCD in terms of which, the rental for the demised Shop should be more than Rs. 1,00,000. The Petitioner/tenant cannot be allowed to enjoy the demised Shop without the payment of any user and occupation charges.

    (v) Learned counsel for the Respondent/landlord, with this Application has placed on record two registered lease deeds of the "like premises" with the following details:

    (a) Lease Deed - 13.02.2018

NatureGround Floor
UseCommercial
Area23.5 Sq. Mts.
RentRs. 10,000/- + GST (per month)
Description/detailsThe tenant in this property is running a shop for sale of ladies pears and artificial jewellery.
AddressProperty Bearing No. 2488-89 situated at Bahadurgarh Road/Teliwara Road, Delhi-110006

    (b) Lease Deed - 04.01.2018

NatureFirst Floor
UseCommercial
Area58.52 Sq. Mts.
RentRs. 45,000/- (per month)
Description/DetailsNot Mentioned
AddressProperty bearing No. 53, situated at New Qutab Road, Sadar Bazaar Delhi - 110006

    (vi) Since the demised Shop is on the ground floor of the demised Premises, it would not earn less than Rs.1,00,000/- per month.

Contentions on behalf of the learned Counsel for the Petitioner/tenant are as follows:

3. Learned Counsel appearing on behalf of the Petitioner/tenant submits that the Eviction Order was obtained by playing a fraud on the Trial Court.

3.1. Learned Counsel for the Petitioner/tenant further submits that the construction of the demised Shop is more than 85 years old; building is in a dilapidated condition; there is heavy seepage problem from the first floor as well; property is situated in a very narrow lane of width of approximately 10 to 15 ft. due to which heavy commercial vehicles are permanently restricted and only light commercial vehicles can use the said lane and property is situated not on any main road but in a narrow road which is not easily accessible to the public.

3.2. Learned Counsel for the Petitioner/tenant avers that so far as concerns the lease deeds filed by the Respondent/landlord, the demised Shop is situated in the main road of Sadar Bazar, New Delhi at a prime location of 1.5 kilometres away, and hence no

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