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IN THE HIGH COURT OF DELHI
Asha Menon, J.
S.R. Duggal (Ex-Director of M/s ICRI Pvt. Ltd. in Liquidation) - Appellant
Versus
Vijay Pal Kaushik - Respondent
CM(M) 482 of 2021 & CM Appl. 22396 of 2021 (by the petitioner u of S 151 CPC for stay), 22397 of 2021 (Exemption), 22398 of 2021 (by the petitioner u of S 5 of the Limitation Act for condonation of delay)
Decided On : 27-07-2021




A suit for possession under Section 6 of the Specific Relief Act requires actual physical possession, which the Ex-Director could not claim independently from a company in liquidation.

Headnote:(A) Specific Relief Act, 1963 - Section 6 - The petitioner filed a suit for possession, claiming illegal dispossession from property while serving as Ex-Director of the company under liquidation - The Trial Court rejected the plaint on grounds of lack of locus standi to maintain suit - The court emphasized that actual physical possession is essential for bringing a suit under Section 6, citing relevant Supreme Court precedent. (Paras 1-4)

(B) Misinterpretation of Dispossession - The Trial Court held that the petitioner, though an Ex-Director, could not claim possession independently from the company which is in liquidation - There is no clause in the Rent Agreement that grants exclusive rights to the petitioner for possession. (Paras 4-7).

Findings of Court:
The High Court dismissed the petition for lack of merit, stating that the plaintiff must pursue claims through the Official Liquidator, as the company is in liquidation and the petitioner does not hold exclusive rights. (Paras 8)

Issues: The core issue was whether the petitioner had the locus standi to file a suit for possession under Section 6 of the Specific Relief Act after being dispossessed when the property was held by a company in liquidation.

Ratio Decidendi: The court reasoned that to maintain a suit under Section 6, the plaintiff must demonstrate actual physical possession, which the lack of handled any claim through the Official Liquidator made untenable.

Result: Petition dismissed.

Table of Content
1. petition filed against rejection of plaint (Para 1 , 2)
2. contention regarding locus standi of plaintiff (Para 3 , 5)
3. court's analysis of possession and rent agreement (Para 4 , 6 , 7)
4. dismissal of petition with no merit found (Para 8 , 9)

ORDER

[VIA VIDEO CONFERENCING]

CM APPL. 22397/2021 (Exemption)

Allowed, subject to all just exceptions.

The application stands disposed of.

CM(M) 482/2021, CM APPLs. 22396/2021 (by the petitioner u/S 151 CPC for stay)& 22398/2021 (by the petitioner u/S 5 of the Limitation Act for condonation of delay)

1. This petition under Article 227 of the Constitution of India has been filed by the plaintiff before the learned Trial Court, being aggrieved by the rejection of his plaint under Order VII Rule 11 CPC by the Senior Civil Judge (South East District), Saket Courts, New Delhi.

2. The petitioner/plaintiff had filed a suit for possession under Section 6 of the SPECIFIC RELIEF ACT claiming to have been illegally dispossessed from property bearing No.318, Sant Nagar, East of Kailash, New Delhi i.e. the suit premises. The learned Trial Court rejected the plaint on the ground that the petitioner/plaintiff had no locus standi to file the same.

3. Mr. Sunil Chaudhary, learned counsel for the petitioner/plaintiff submits that the view taken by the learned Trial Court was completely erroneous inasmuch as it had overlooked all the averments made in the plaint which clearly disclosed that the petitioner/plaintiff had filed the suit under Section 6 of the SPECIFIC RELIEF ACT , 1963 in his personal capacity as also in the capacity of the Ex-Director of the company M/s. ICRI Research Pvt. Ltd. Learned counsel for the petitioner/plaintiff also drew attention to the Rent Agreement placed as Annexure `C' in the e-file, to point out that the Rent Agreement had been signed by the petitioner/plaintiff as the Director of the said company. Therefore, the petitioner/plaintiff could maintain the suit, having been illegally dispossessed by the son of the respondent/defendant by snatching the keys from the employee of the petitioner/plaintiff, who had been called to the spot on the plea of cleaning and attending to the water logging in the suit premises. Learned counsel for the petitioner/plaintiff submitted that the petitioner/plaintiff was the one running an office from the premises in question, which had remained closed on account of the Covid-19. Thus, since, it was he, who had been illegally dispossessed, he alone could file the suit under Section 6 of the SPECIFIC RELIEF ACT , 1963 to be put back in possession immediately.

4. The learned Trial Court vide the impugned order observed that a suit under Section 6 of the SPECIFIC RELIEF ACT , 1963 could be filed only by a person, who was in actual physical possession of the property and, if such person, who was in possession, was an agent or an appointee or deputee of another, the actual physical possession would be of the person appointing or deputing him. Reliance was placed on the judgment of the Supreme Court in A. Shanmugam v. Ariya Kshatriya Rajakula Vamsathu Madalaya Nandhavana Paripalanai Sangam, (2012) 6 SCC 430. It was also observed that the Rent Agreement had been executed between the company, M/s. ICRI Research Pvt. Ltd. and the respondent/defendant through the then Director i.e., the petitioner/plaintiff. It was held that on this score also, it could not be said that it was the petitioner/plaintiff, who was in possession of the suit property. It also noticed that the High Court of Delhi had vide order dated 25th September, 2018, appointed an Official Liquidator as the company, M/s. ICRI Research Pvt. Ltd admittedly, had gone into liquidation.

5. When queried as to how these observations were incorrect, learned counsel for the petitioner/plaintiff insisted that he had sued, not only in his individual capacity but also in the capacity of an Ex-Director of the company which was no doubt, under liquidation. There was no convincing

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