The liability of tenants to pay arrears of rent and damages to the property, the burden of proof for repair costs, and the binding nature of counter claim awards.

JUDGMENT

(Prayer: This Appeal is filed under Section 13(1) of Commercial Courts Act, praying to set aside the Judgment and Decree dated 02.08.2022 made in C.O.S.No.166 of 2022 on the file of Commercial Court at Egmore, Chennai and allow this appeal.)

P. Dhanabal, J.

1. This Appeal has been preferred as against the Decree and Judgment passed in C.O.S.No.166 of 2022 on the file of Commercial Court, Egmore dated 02.08.2022, whereby the trial Court dismissed the suit and allowed the counter claim in part by directing the plaintiff to pay a sum of Rs.3,73,390/- (Rupees three lakh seventy three thousand three hundred and ninety only) to the defendant with interest at the rate of 12% per annum from the date of plaint (i.e. 13.8.2018) till the date of decree (i.e., 2.8.2022) and thereafter with subsequent interest at the rate of 6% per annum .

2. As against the said Decree and Judgment the plaintiff has filed this appeal.

The gist of the plaint averments:

The plaintiff is the owner of the premises of an extent of 4743 sq.ft in Plot No.1, Poomagal Street, Ekkattuthangal, Chennai. The second defendant is the Head Office and its Branch Office is the first defendant. The defendants were inducted as a tenant in the year 2006 and after a decade, the lease period was extended for five years commencing from 31stMarch, 2016. The defendant had made a security deposit of Rs.13,50,000/- and the plaintiff had accepted it. Further the rent was fixed at Rs.90,000/- in the year 2006 which was periodically enhanced and finally it was at Rs.1,81,500/- per month from 1st April 2017.

(i) The defendants have not paid rent from August 2017 to January 2018 for a period of six months which comes to the tune of Rs.10,89,000/-. after deducting 10% of TDS Rs.1,89,000/-. The defendant is liable to pay a sum of Rs.1,59,860/- towards water and Rs.13,200/- towards electricity charges. While so, the plaintiff issued a letter on 28.8.2017, terminating the lease agreement and informed that they shall vacate the premises on 28.10.2017. But the defendants did not vacate and handed over the premises on 28.10.2017 as mentioned in the notice.

(ii) Per contra, the defendants handed over the physical portion of the property only in the month of January 2018. On inspection, the plaintiff came to know that the defendants have extensively damaged the building and the plaintiff carried out the repairs, after informing the defendants through letter dated 9.1.2018 and spent a sum of Rs.18,95,300/-. The above said repair works were done through M/s.Nandhini Building Contractor and the amount was paid to the said contractor after deducting TDS of Rs.18,960/-. Therefore, the defendants are liable to pay a sum of Rs.17,02,060/- to the plaintiff towards damages, after deducting the amount in the security deposit of Rs.13,50,000/-. Hence the plaintiff claimed a sum of Rs.17,02,060/- together with further interest at the rate of 24% per annum from the date of plaint till the realisation and for costs. The plaintiff issued a notice to the defendants on 27.02.2018 through his advocate and the same was acknowledged by the defendants and then the defendants also issued a reply on 12.03.2018 with false averments.

3. The gist of written statement averments:

The defendants filed written statement stating that the suit is not maintainable and it is wholly misconceived and filed against non existent persons in Aramex India Private Limited. The Aramax India Private Limited was inducted as a tenant and an advance of Rs.13,50,000/- paid as refundable interest free security deposit in favour of the plaintiff and the plaintiff is liable to refund the security deposit after the expiry of lease. The lease was terminated on 28.8.2017 by the defendants by notice sent to the defendants and the premises was vacated on 4.12.2017. At the time of handing over the property to the plaintiff, he has not raised any objections regarding the alleged damages