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2009 Supreme(Online)(Del) 27

DELHI HIGH COURT
Hima Kohli, J.
Hyundai Motor India Ltd. (M/s.) v. M/s. Opal Metal Engineering Pvt. Ltd.
I. A. No. 1262 of 2007 in C. S. (O. S.) No. 2379 of 2006



The court emphasized the need to consider the entirety of the plaint, ruling that a rejection based on a specific clause cannot invalidate the entire action without examining all claims.

Headnote:(A) Indian Stamp Act, 1899 - Section 35 - Rejection of plaint - The defendant sought rejection of the plaint on grounds of an unregistered lease agreement barring the suit. Court clarified that even if part of the lease was invalid, the entirety cannot be dismissed under O. 7, R. 11, C. P. C. (Paras 1, 13, 18)

(B) Transfer of Property Act, 1882 - Sections 108(q) and 116 - Tenancy status - The relationship of landlord and tenant can be established through consistent rent payments even in cases of unregistered leases, emphasizing the need for full consideration of plaint. (Paras 5, 14, 16)

Facts of the case:
The plaintiff filed a suit seeking injunction and declarations relating to a lease agreement expired in December 2006, asserting continuing rights despite the defendant's claims of eviction.

Findings of Court:
The court found the rejection of the plaint unjustified as the plaint disclosed a valid cause of action irrespective of the unsupported claims about invalid lease terms.

Issues: The court addressed whether the suit could be dismissed as barred by law due to the status of the lease deed and the nature of relief sought.

Ratio Decidendi: The Court ruled that even if part of a plaint may be barred, a rejection cannot solely be based on such grounds without considering the entirety of the plaint.

Result: The application for rejection was denied, allowing the suit to proceed.

Table of Content
1. defendant's application to reject the plaint on lease grounds. (Para 1 , 18)
2. plaintiff's claims of continuing rights post-lease expiration. (Para 2 , 4 , 5)
3. court's examination of the validity of claims under law. (Para 3 , 6 , 11)
4. opposing arguments about tenancy status and claim legitimacy. (Para 7 , 10 , 14)
5. rationale behind allowing the plaint to proceed. (Para 8 , 12 , 16)

1. By this order the Court proposes to dispose of an application filed by the defendant under O. 7, R. 11, C. P. C., where under the defendant has sough rejection of the plaint on the ground that the plaintiff cannot file any proceedings seeking to hold the suit property after expiry of the lease period i.e. after 31-12-2006 and that as the lease agreement is an unregistered document, and is hit by the provisions of S.35 of the Indian Stamp Act, 1899 (in short 'the Stamp Act'), the suit is barred by law.

2. In brief reference to the facts of the case is necessary before dealing with the present application. The plaintiff has instituted the present suit against the defendant praying inter alia for the following reliefs : -
"(a) for a permanent injunction restraining the defendant, its men or agents, and all other persons acting on its behalf from preventing and / or interfering with the plaintiffs peaceful enjoyment and possession of the suit schedule property situated at Plot No. H - 4, Block B - 1, Mohan Co - operative Industrial Estate, Mathura Road, New Delhi - 110044.
(b) For a declaration that the plaintiff cannot be evicted from the aforesaid suit schedule property except by the due process of law.
(c) direct the defendant for specific performance of the Agreement / Lease Deed dated 15-12-2003 by extending the Lease period of the suit schedule property till 31-12-2009, as sought for in letter dated 29-9-2006.
(d) any other order or relief in favour of the plaintiff and against the defendant which this Hon'ble Court deems fit and proper in the circumstances of the case."




3. It is the case of the plaintiff that the plaintiff approached the defendant who is the owner of a property situated at Plot No. H - 4, Block B - 1, Mohan Co - operative Industrial Estate, Mathura Road, New Delhi - 110044, for taking on lease, an area measuring 22,950 sq. ft. A lease deed dated 15-12-2003, was executed between the parties in respect of the suit property. Art.1.1 of the lease deed stipulated the term of the lease for a period of three years w.e.f. 1-1-2004. Art.1.3 provided for renewal of the lease deed with escalation of the rent @ 15% over the last paid rent while the other terms and conditions of the renewal were agreed to be mutually decided by the parties. By letter dated 29-9-2006, the plaintiff approached the defendant for renewal of the lease for a further period of three years and agreed to increase the rent by 15% per annum, over the last paid rent. The said letter was replied to by the defendant vide letter dated 20-10-2006, stating inter alia that the defendant was willing to renew the lease for a further period of three years only on the prevailing market rent. The plaintiff rejoined to the aforesaid reply of the defendant vide letter dated 14-11-2006, reiterating its offer for renewal of the lease at the increased rent of 15% p.a. but not at the prevailing market rent. It is averred in the plaint that as the plaintiff apprehended that the defendant might take coercive steps to dispossess it from the suit property, it approached this Court by way of the present suit stating inter alia that the action of the defendant in insisting upon demanding the prevailing market rate as the rent for the suit property is contrary to the lease agreement dated 15-12-2003, entered into between the parties.

4. Notice was issued in the aforesaid suit on 20-12-2006. While appearance was entered on behalf of the defendant on 6-2-2007, the present application came to be filed prior thereto, on 3-2-2007. The stand of the defendant in its application is




























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