SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Mad) 784

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SENTHILKUMAR, J.
Faisal Khan – Plaintiff
Versus
Leena Paulose – Defendant
C.S(COMM DIV) No. 280 of 2023
Decided On : 05-01-2026

Advocates Appeared:
For the Plaintiff : Mr. K.M. Aasim Shehazd for M/s. B.F.S. Legal.
For the Respondent: Mr. K.S. Ilangovan for M/s. Achari and Antoni Associates.

Unlawful occupation post-termination of lease grants landlords the right to claim rental arrears, damages, and interests, reinforcing the validity of lease agreements under pertinent tenant laws.

Headnote:(A) Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 - Rental Agreement dated 07.03.2019 - Tenant's obligations - Tenant failed to pay rent from July 2021, leading to claims for rental arrears, damages, and GST - Landlord's legal notices for eviction under Clause 19 of the rental agreement were acknowledged but not acted upon by the tenant. (Paras 2, 7, 18, 20)

(B) Lease Termination - The court held that upon failure to pay rent for three consecutive months, the landlord is entitled to terminate the tenancy without notice and seek recovery of possession. (Para 24)

(C) Unlawful Occupation - Continuing occupation after termination constitutes unlawful use, and the tenant is liable for damages. (Para 23)

(D) Interest Rate - Future interest at 18% on rental arrears and damages was deemed appropriate. (Para 25)

Facts of the case:
The plaintiff, the property owner, leased premises to the defendant for 5 years at a rent of Rs. 5,50,000. The tenant defaulted on rent payments from July 2021 and failed to vacate despite termination notices and pending criminal proceedings against her. (Paras 2, 3, 7)

Findings of Court:
The defendant was ordered to pay rental arrears, damages, GST, and handover possession of the property. Claims for future mesne profits were rejected. (Paras 25, 26)

Issues: The court addressed the legality of the lease termination, entitlement to rental arrears, damages for unlawful occupation, GST liability, and future interests. (Paras 18, 23)

Ratio Decidendi: The court ruled that the landlord's termination of the tenancy was valid due to the tenant's chronic default and continued unlawful occupation is subject to damages. The landlord was entitled to the claims specified. (Paras 20, 24)

Result: Civil Suit decreed in favor of the Plaintiff to the extent specified, with no costs awarded.

Table of Content
1. relief sought by plaintiff (Para 2)
2. defendant's claims and statements (Para 3)
3. arguments from both parties (Para 4 , 5 , 6 , 7 , 8 , 9 , 10 , 16)
4. court's observations and evidence analysis (Para 12 , 13 , 19 , 20 , 21 , 23 , 24)
5. legal decisions based on findings (Para 17)

JUDGMENT :

N.SENTHILKUMAR, J.

The present suit has been filed for the following reliefs:-

a) directing the defendant to handover vacant possession of the Schedule Mentioned Property to the Plaintiff;

b) Directing the defendant to pay the plaintiff, a sum of Rs.1,54,04,334/- towards rental arrears of Rs.1,31,63,334/- from 01.07.2021 till 28.06.2023 along with interest of Rs.22,41,000/- at 18% per annum from the due date till 28.06.2023;

c) directing the defendant to pay the plaintiff a sum of Rs.1,17,88,084/- towards damages of Rs.1,04,13,334/- for unlawful use and occupation from 01.12.2021 to 28.06.2023 along with interest of Rs.13,74,750/- at 18% per annum from the due date till 28.06.2023;

d) directing the defendant to pay the plaintiff a sum of Rs.49,07,595/- towards GST of Rs.42,43,800/- from 01.07.2021 to 28.06.2023 along with interest of Rs.6,63,795/- at 18% per annum from the due date till 28.06.2023;

e) directing the defendant to pay the plaintiff future mesne profits towards damages for illegal use and occupation of the schedule mentioned property from 29.06.2023 till the date of handing over of possession at the monthly rent of Rs.11,00,000/- per monthly;

f)directing the defendant to pay future interest at the rate of 18% on the rental arrears of Rs.1,31,63,334/- being the principal sum from 29.06.2023 till the date of actual realisation;

g)directing the defendant to pay future interest at 18% per annum on the damages for unlawful use and occupation amount to Rs.1,04,13,334/- being the principal sum from 29.06.2023 till the date of actual realisation;

h) directing the defendant to pay future interest at 18% per annum on the GST of Rs.42,43,800/- being the principal sum from 29.06.2023 till the date of actual realisation;

i)grant the costs of the suit.

2. The averments made in the plaint are as follows:-

(a) The plaintiff is the absolute owner of the property situated in Old.Nos.40/1, 40/A, 40/B, New Door No.176, Eldams Road, Teynampet, Chennai-600 018 admeasuring 3361 sq.ft., comprised in R.S.No.1548/7, block No.30, Mylapore, Chennai, more fully described in the schedule of property.

(b) In the year 2019, the defendant approached the plaintiff to take on lease the schedule mentioned premises for a period of 5 years for commercial purposes. The defendant assured the plaintiff that she would be prompt in payment of monthly rents. The plaintiff agreed and the schedule mentioned properties was leased to the defendant for a period of 5 years vide Lease Deed dated 07.03.2019 for carrying on her commercial activities. The monthly rent was fixed at Rs.5,50,000/- with effect from 07.03.2019 with a provision for enhancement by 12% after 3 years. GST was payable by the defendant which was in addition to the monthly rents.

(c) Post the execution of the Rental Agreement on 07.03.2019, the rented premises (Schedule mentioned property) was handed over to the defendant. The tenancy commenced from 07.03.2019 and the defendant promised to pay the rent in full on the 5th day of every succeeding English calendar month. The defendant paid monthly rents from 01.05.2019 till 30.06.2021. Since 01.07.2021, the defendant has been a wilful and chronic defaulter in payment of monthly rents. The plaintiff states that as per Clause 19 of the rental agreement, if the tenant fails to pay rent for three consecutive months, the landlord may terminate the tenancy without giving any notice.

(d) In terms of Clause 19 of the Rental Agreement, the plaintiff issued a notice dated 23.11.2021 terminating the tenancy of the defendant with immediate effect. The defendant was called upon to hand over keys of the schedule mentioned premises to the plaintiff's representative Mr.Shakee

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top