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IN THE HIGH COURT OF DELHI
Gaurang Kanth, J.
Punchip Associates Pvt. Ltd. - Appellant
Versus
Bibi Alape Kaur - Respondent
RFA 487 of 2022 & CM Appl. 44122 of 2022 (Stay)
Decided On : 25-11-2022




Landlords are entitled to claim arrears of rent deposited by a subtenant, as the tenancy was properly terminated, and the claim is within the limitation period.

Headnote:(A) Delhi Rent Control Act, 1958 - Sections 14(1)(b), 106, and relevant orders of the High Court - Lease and tenancy - Determination of rights of landlords after the expiry of lease - Tenancy became month-to-month and was properly terminated through legal notice. (Paras 10, 40, 46, 51)

(B) Limitation - The suit filed by the landlords for recovery of arrears of rent was within the limitation period, as rights to the amount deposited arose only upon the dismissal of previous appeals. (Paras 50, 51)

(C) Order II Rule 2 CPC - The trial court correctly found that the current suit was not barred by this provision, as it dealt with a distinct cause of action regarding rent arrears. (Paras 46, 49)

Facts of the case:
The appellant, a tenant under the original lease, sublet the premises without consent. After the lease expired in 1991, the tenancy was terminated in 1995. Following eviction proceedings, the landlords claimed the deposited rent left by the subtenant.

Findings of Court:
The trial court found that the landlords are entitled to the release of the deposited rent based on their rightful ownership and the timing of the claim being valid.

Issues: The court addressed whether the initial suit was valid, if it was time-barred, and the applicability of Order II Rule 2 CPC.

Ratio Decidendi: The court ruled that the landlords had a right to claim the deposited rent, emphasizing that the conditions under which these rights arise were duly acknowledged.

Result: Appeal dismissed.

Table of Content
1. facts surrounding the lease and eviction. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 20 , 21)
2. appellants' arguments against the decree. (Para 27 , 28 , 29 , 30 , 31 , 33 , 34)
3. court's analysis of the issues presented. (Para 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 49 , 51)
4. legal principles applied related to limitation. (Para 48 , 50)
5. final order of dismissing the appeal. (Para 54)

JUDGMENT

Gaurang Kanth, J. (Oral)

CM APPL. 44022/2022 (Exemption)

1. Exemption allowed, subject to all just exceptions.

2. Applications stand disposed of.

CM APPL. 44023/2022, (Delay of 99 days in re-filing the appeal)

3. Present application has been filed by the appellant seeking condonation of delay of 99 days in re-filing the present appeal.

4. For the reasons stated in the present application, the same is allowed. Delay of 99 days in re-filing the present appeal is condoned.

5. Application stands disposed of.

CM APPL 44123/2022 (Application for impleading the legal heirs of deceased R-2)

6. This is an application filed by the legal heirs of Smt. Bimla Malik (Original Defendant No.2). Learned counsel for the Appellant submitted that Smt. Bimla Malik expired on 15.05.2020 due to Covid-19. However, said fact was not within the knowledge of the counsel for the original Defendant No.2 and hence no steps were taken to implead the legal heirs before the learned Trial Court. However, after the passing of the impugned Judgment, counsel tried to contact Smt. Bimla Malik and then came to know that she is no more.

7. The legal heirs wish to challenge the impugned Judgment along with other Appellants. Hence seeking the permission of this Court to get themselves impleaded as Appellants in place of late defendant No.2.

8. For the reasons stated in the application, the same is allowed. Legal Heirs of Original Defendant No.2 i.e. Ms. Anju Malik d/o late Ms. Bimla Malik and Mr. Surinder Malik s/o late Ms. Bimla Malik are hereby allowed to pursue the present Appeal.

9. Application stands disposed of.

RFA 487/2022 & CM APPL. 44122/2022 (Stay)

10. The Appellants are aggrieved by the Judgment and Decree dated 12.04.2021 ("Impugned Judgment") passed by the ADJ-04, Patiala House Courts, New Delhi in CS No.59197/2016 titled as Bibi Alape Kaur Vs M/s Punchip Associates Pvt. Ltd. & Ors., Vide the said impugned Judgment, the learned Trial Court was pleased to decree the suit for declaration filed by Respondent Nos.1 to 3 herein (Original Plaintiff No.1-3). Learned Trial Court held that Respondent Nos.1 to 3 are entitled for the release of an amount of Rs.1,29,11,700/- or any other amount deposited by Respondent No.4 (Original Defendant No.5) with the Registry of this Court with the interest accrued thereon.

Facts relevant for the disposal of the present case are as follows:

11. Respondent Nos.1 to 3 are the owners of the property bearing no. G- 72, Connaught Circus, New Delhi admeasuring approx. 7063 sq. feet ("suit property"). The suit property was let out by Respondent Nos.1 to 3 and/or their predecessor in interest to Appellant No.1 vide lease deed dated 18.09.1986 registered on 20.09.1986 @ Rs.189.50p per month excluding water and electricity charges. The said lease deed was executed for a term of 5 years. The relevant clauses of the said lease deed are as follows:

    "Clause 1(g)

    Tenant shall be entitled to sub let, assign or otherwise part with the possession of the whole or any part of the tenancy harmless to any person/persons. This power can be exercised by the Tenant as many number of times as the Tenant May desire. The Tenant shall be bound to keep the Landlords informed of the subletting, and assignments by registered A.D. post within one month of the same.

    Clause 2 XXX XXX XXX

    That the Tenant or his successors in interest shall be entitled to renew the lease in respect of the tenancy premises for similar terms of Five Years each subject to such increase in the rent as permitted, by the Rent Control Acts or increas

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