A lease can be extended based on mutual consent, factoring in market rates and rental changes, promoting cooperation between parties.

JUDGMENT

Najmi Waziri, J. (ORAL)

The hearing has been conducted through hybrid mode (physical and virtual hearing). CAV 375/2022(Caveat)

1. Since the learned counsel for the Caveator/respondent has entered appearance, the caveat stands discharged.

CM APPL. 49673/2022 (exemption)

2. Allowed, subject to all just exceptions.

3. The application stands disposed-off.

RFA(COMM) 92/2022 & CM APPL. 49671/2022(delay), CM APPL. 49672/2022 (stay)

4. Issue notice. The learned counsel named above accepts notice on behalf of the respondent. At request, the case is taken up for disposal.

5. Without prejudice to the rights and contentions, the learned Senior Counsel for the appellant states that in a spirit of cooperation with the respondent with whom the appellant had good business relations, some more time is sought to vacate the premises. A period of one-year is sought. This long time is not amenable to the respondent. Six months more time is deemed to be appropriate for vacation of the leased premises.

6. On 01.07.2020, the monthly rental for the premises occupied by the appellant i.e., half of the undivided area of 10,700 sq. ft. of the godown/warehouse was fixed at Rs.3,50,000/- inclusive of GST. The lease has expired. More than twenty-nine months have gone by since the fixation of the said rental. The respondent/landlord states that in the interregnum the rentals have increased and the same may be factored-in.

7. The appellant offers to pay the original rent that was fixed at Rs.3,88,000/- per month inclusive of GST w.e.f. August, 2022 till 30.06.2023. The said arrears shall be deposited in the respondent's bank account within two weeks. The premises shall be vacated on or before 30.06.2023. An undertaking to this effect shall be filed by the appellant within a week from today. This is without prejudice to the rights and contentions to the parties, the order has been passed with their consent.

8. The undivided 50% area of the premises which was leased by the appellant's associate, Mr. Om Prakash, is stated to have been vacated by the latter. The appellant assures the Court that it will ensure that the said vacated premises i.e. 50% of the leased area (equivalent of 10,700 sq. ft.) is made available to the respondent within a week from today and that the appellant shall cooperate in delineating the area and making available and handing over peaceful vacant physical possession of the said vacated premises within two weeks from today.

9. In view of the above, the respondent states that no precipitate measures shall be taken in terms of the impugned order dated 03.08.2022 passed in CS (COMM) No. 434/2021.

10. The learned counsel for the respondent, on instructions, submits that monies have been received only upto the month of March, 2022, therefore, the amounts would be payable for the months of April, May, June and July, 2022 as well.

11. The learned counsel for the appellant states that if such monies are payable, these too shall be paid within a week.

12. With consent, the present appeal, along with pending applications, if any, stands disposed-off.