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* IN THE HIGH COURT OF DELHI AT NEW DELHI

% Judgment reserved on: 09.12.2025

Judgment pronounced on: 23.12.2025

Judgment uploaded on: 23.12.2025

+ RFA(OS) 53/2012

ATMA RAM BUILDERS PVT LTD .....Appellant

Through: Mr Ramesh Singh, Senior

Advocate with Mr. Amit Sethi,

Advocate.

versus

EMBASSY RESTAURANT & ANR .....Respondents

Through: Mr. Sonal Anand, Mr. Aayush

Sai & Ms. Surbhi Singh,

Advocates for R-1.

Mr. T. P. Singh, Senior Central

Govt. Counsel for R-2/UOI.

CORAM:

HON'BLE MR. JUSTICE ANIL KSHETARPAL

HON'BLE MR. JUSTICE HARISH VAIDYANATHAN

SHANKAR

J U D G M E N T

ANIL KSHETARPAL, J

1. The Appellant/Plaintiff assails the correctness of the judgment

dated 16.03.2012 passed in I.A. No.7775/2008 in CS(OS)

No.1971/2006 [hereinafter referred to as ‘Impugned Judgment],

whereby his plaint has been rejected by the learned Single Judge,

while exercising the enabling power under Order VII Rule 11 of the

Code of Civil Procedure, 1908 [hereinafter referred to as ‘CPC’].

2. For the sake of convenience, the parties shall be referred to by

their status and rank in the suits, i.e., CS(OS) No.1422/2006 and

1971/2006.

Signature Not Verified

Signed By:SAVITA

PASRICHA

Signing Date:23.12.20R25FA(OS) 53/2012 Page 1 of 15

12:59:21

FACTUAL MATRIX:

3. In order to comprehend the issues involved in the present case,

relevant facts, in brief, are required to be noticed.

I. In CS(OS) No. 1422/2006

4. The Plaintiff claims to be the owner and landlord of the

premises bearing no.11-D, Atma Ram Mansion, Connaught Circle,

New Delhi [hereinafter referred to as ‘first suit property’]. The

Plaintiff rented the first suit property, measuring about 6,000 sq. ft., to

the Defendant on lease with effect from 01.01.1962 at a monthly rent

of Rs.820/-. It is further claimed that even today, the monthly rent

payable by the Defendant to the Plaintiff is approximately Rs.1,060/-.

II. In CS(OS) No.1971/2006

5. In the second suit, Plaintiff claims to be the owner of the

building situated at Plot No.3, D Block, Connaught Place, New Delhi

[hereinafter referred to as ‘second suit property’]. The Plaintiff rented

the second suit property, consisting of the ground floor and the

mezzanine floor, to the Defendant in the year 1947. The area occupied

by the Defendant is approximately 2500 sq.ft. The monthly rent for

the premises is approximately Rs.312.69 per month. This is the last

agreed rent with respect to the second suit property. The Plaintiff filed

a suit for recovery of rent at the market rate @ Rs. 10 lakhs per

month.

6. It is claimed by Defendants that Sections 4, 6 and 9 of the Delhi

Rent Control Act, 1958 [hereinafter referred to as the ‘DRC Act’]

Signature Not Verified

Signed By:SAVITA

PASRICHA

Signing Date:23.12.20R25FA(OS) 53/2012 Page 2 of 15

12:59:21

were declared unconstitutional and consequently struck down by a

Division Bench of this Court in Raghunandan Saran Ashok Saran

(HUF) v. Union of India, 2002 SCC OnLine Del 58

7. The Plaintiff, while asserting entitlement to market rent, sought

the following reliefs:

“28. That the plaintiff prays for the following reliefs:-

a) A decree for Rs. 40,00,000/- being arrears of rent for the period

from 1-6-2006 to 30-9-2006 be passed in favour of the plaintiff and

against the defendant;

b) A decree for the recovery of rent for the period from 1-10-2006

at the rate of Rs. 10,00,000/- p.m. till the final

determination/adjudication of the controversies involved may also

be passed in favour of the plaintiff and against the defendant;

c) A decree for Rs. 7,20,000/- as interest for the period from 1-7-

2006 to 30-9-2006 on the arrears of rent of Rs. 40,00,000/

calculated at the rate of 12% p.a. may be passed in favour of the

plaintiff and against the defendant and a further decree for the

payment of interest at that rate from 1-10-2006 till actual payment

of the amounts in facts and circumstances of the case. The plaintiff

undertakes to pay additional court fee on such amounts as per the

direction passed by this Hon'ble Court;

d) Such other relief/s which this Hon'ble Court deems fit