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2025 Supreme(Online)(Del) 1697

IN THE HIGH COURT OF DELHI AT NEW DELHI
RAJ KUMAR GUPTA HUF – Appellant
Versus
N SQUARE HOSPITALITY LLP & ORS. – Respondent
FAO (COMM)-189/2024



$~14 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 26.03.2025 + FAO (COMM) 189/2024 RAJ KUMAR GUPTA HUF .....Appellant Through: Mr Shiv Chopra, Mr Sharvan Pandey, Ms Surbhi Arora and Mr Siddharth Arora, Advocates.

Versus N SQUARE HOSPITALITY LLP & ORS. .....Respondents Through: None.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA VIBHU BAKHRU, J. (Oral

1. The appellant [plaintiff] has filed the present appeal, inter alia, impugning an order dated 12.07.2024 [impugned order] passed by the learned Commercial Court in CS (COMM.) No. 271/2023 captioned Raj Kumar Gupta HUF v. M/s. N-Squire Hospitality LLP & Ors., whereby the plaintiff’s application seeking deposit of arrears of rent as well as mesne profits and future rent in respect of the property described as “Third Floor of building bearing No.F-19, Preet Vihar, Delhi-110092” [suit property] was declined on the ground that the respondents [defendants] have not filed their written statement.

2. The plaintiff (appellant), a Hindu Undivided Family [HUF], had filed the said commercial suit [CS (COMM.) No. 271/2023], inter alia, praying as under:

“a. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to hand over peaceful FAO (COMM) 189/2024 Page 1 of 10 Signature Not Verified Digitally Signed and vacant possession of property bearing number F-19, Third Floor, Preet Vihar admeasuring approximately 3,000 square feet to the Plaintiff;

b. Pass a decree of permanent injunction in favour of the Plaintiff and against the Defendants directing the Defendants not to create any third-party rights in property number F-19, Third Floor, Preet Vihar admeasuring approximately 3,000 square feet;

c. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff Rs.18,99,007/- (Rupees Eighteen Lakhs Ninety-Nine Thousand and Seven) being the total outstanding rent from 16th September 2022 to 21st April 2023 along with interest and GST;

d. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff interest at the rate of 1.5% per month on Rs.14,34,000 (Rupees Fourteen Lakhs and Thirty Four Thousand) being the outstanding rent owed to the Plaintiff from 16th September 2022 to 21st April 2023 from 30.09.2023 till realization;

e. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff damages of Rs.23,63,334/- (Rupees Twenty-Three Lakhs Sixty-Three Thousand, Three Hundred and Thirty-Four) for not handing over vacant possession of F-19, Third Floor, Preet Vihar from 21.04.2023 to 30.09.2023;

f. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff Rs.4,10,000/- (Rupees Four Lakhs and Ten Thousand) per month from 30.09.2023 till date of handling over of possession as damages for not handing over vacant possession of the suit property;

g. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay costs of the present proceedings to the Plaintiff;”

3. It is the plaintiff’s case that he is the owner of the suit property and FAO (COMM) 189/2024 Page 2 of 10 Signature Not Verified Digitally Signed had leased the suit property to respondent no.1 [the defendant], a limited liability partnership, through its constituent partners respondent nos.2 and 3 in terms of a registered lease deed dated 08.07.2022 [the lease deed]. In terms of the lease deed, the suit property was leased to the defendant for a period of nine years commencing from 16.08.2022 for running a restaurant in the name and style of Bigg Boss Cafe & Restaurant. It was agreed between the parties that the initial term of the lease would be thirty-six [36] months, which would also be considered as the Lock-in period. It was agreed that the monthly lease rent would be ₹2,00,000/- plus GST for the first year and would be increas

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