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2023 Supreme(Ker) 446

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K.NARENDRAN, P.G. AJITHKUMAR, JJ.
Ashok Harry Pothen, S/o Harry Pothen – Appellant
Versus
Premlal, Late K.A.Krishnan – Respondent
O.P.(RC) No. 119 of 2023
Decided on : 14-07-2023

Advocates:
Advocate Appeared:
For the Appellant : S.EASWARAN, K.V.RAJESWARI, P.MURALEEDHARAN (IRIMPANAM)
For the Respondent: G.RAJEEV, AJITH KUMAR.S

Point of Law: The employer was at liberty to allot any other flat to the employee on his transfer to another station and assign the premises fallen vacant by virtue of transfer to any other employee.

Headnote:

Constitution of India, 1950 - Article 227 - Kerala Buildings (Lease and Rent Control) Act, 1965 - Section 11(2) (b) and 11(3) - Seeking eviction - Rent Control - Licence deed - Whether the transaction in Ext.P1 is a lease or licence - There was an agreement between employer and employee under which occupation of the employee in premises was to cease not only on termination of his employment but also on his transfer from one station to another and on his death. (Para 11).

Finding of the Court :

Petitioner is a seasoned businessman and the respondent is the owner of a premises having such a vast extent. They have sufficient ability to understand the difference between lease and licence as can be gathered from the clauses included in Ext.P1. When such persons with open eyes enter into a transaction by executing a document fixing the period as 10 years in a stamp paper worth Rs.100/-, it can only be said that their intention was to create a licence alone and not a lease. If they intended to create a lease for such a period, they would have executed a registered document, which is the insistence of law. Taking all such matters into account, we are of the view that the jural relationship created by virtue of Ext.P1 is that of a licence and not a lease.

Result: Original Petition allowed.

JUDGMENT :

P.G. Ajithkumar, J.

The respondent-tenant in R.C.P.No.35 of 2022 on the file of the Rent Control Court (Additional Munsiff), Thiruvananthapuram, has filed this Original Petition under Article 227 of the Constitution of India. He is aggrieved of Ext.P7 order of the Rent Control Court in I.A.No.1 of 2022 in that rent control petition.

2. Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent.

3. R.C.P.No.35 of 2022 was filed by the respondent seeking eviction of the petitioner under Section 11(2)(b) and 11(3) of the Kerala Buildings (Lease and Rent Control) Act, 1965. The respondent contended that the petition schedule premises was let out to the petitioner on a monthly rent of Rs.1,65,000/-as per a lease agreement dated 15.07.2015. There was stipulation for yearly enhancement of rent by 10%.

The respondent filed I.A.No.1 of 2022 alleging that the petitioner defaulted payment of rent and as on February, 2022, an amount of Rs.1,32,69,902/-remained to be paid towards arrears of rent. It is further averred by the respondents that although an agreement for sale of the petition schedule building was entered into between the parties on 23.03.2017, the sale did not get through for the fault of the petitioner. Hence the advance sale consideration paid by the petitioner was adjusted against the rent. Adding the subsequent arrears till 15.10.2022 the rent amount due is Rs.1,04,74,693/-. On the said premises the respondent filed I.A.No.1 of 2022.

4. The petitioner took the stand that he was not a tenant, but a licensee. The document dated 15.07.2015 is a licence deed. The description of the petition schedule premises is different from what has been described in the said licence deed. The premises were handed over to the petitioner for a specific purpose of conducting a car showroom and parking facilities. The liability to pay rent as claimed by the respondent was refuted by the petitioner. He contended that on executing agreement for sale dated 22.03.2017, the possession of the premises was handed over to the petitioner. Rs.25,00,000/-which was paid as advance sale consideration and the deposit amount paid at the time of executing the licence deed on 15.07.2015 are with the respondent. In such circumstances, he has no liability to pay the licence fees as agreed to in the said document.

5. Since the respondent did not come forward to execute the sale deed in terms of the agreement dated 22.03.2017, the petitioner issued notice to the respondent and his sister asking them to execute the sale deed after receiving the balance sale consideration. There occurred mediation talks in that regard, but the same was not fruitful. The period of licence is 10 years, which will be over only by September, 2025. For those reasons the petitioner denied his liability to pay the rent. He, however, did not claim that he paid the rent after August, 2017.

6. The Rent Control Court received in evidence Exts.A1 to A3 and Exts.B1 to B11 for the purpose of deciding I.A.No.1 of 2022. After considering the said documents and also the submissions by either side, the Rent Control Court took the view that Ext.A1, document dated 15.07.2015 is predominantly a rent agreement and the plea of the petitioner was not tenable. Accordingly, the petitioner was directed to deposit Rs.1,65,97,286/- being the arrears of rent admitted to be due for the period from 31.03.2017 to 15.03.2023 within a period of four weeks from the date of that order. The petitioner was further directed to deposit the rent for the future periods as well.

7. The learned counsel appearing for the petitioner would submit that Ext.P1 is a licence deed in every sense, and therefore, finding entered into by the Rent Control Court is incorrect. After referring to various clauses in Ext.P1, the learned counsel would submit that the petitioner was given permission to occupy the premises for the specific purpose of conducting a car showroom and related operation

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