IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 18.11.2025 M/s. Mahesh Pal and Company ...Appellant(s)

Vs.

Punjab State Warehousing Corporation and another...Respondent(s)

CORAM: HON’BLE MS. JUSTICE NIDHI GUPTA Present:- Mr. Aalok Jagga, Advocate and Mr. Karan Inder Singh, Advocate for the appellant.

Mr. Jastej Singh, Advocate for the respondents.

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NIDHI GUPTA, J.

Plaintiff is in second appeal against the concurrent judgments and decrees of the learned Courts below, whereby suit filed by the appellant for recovery of Rs.2,67,511/-, has been dismissed by both the Courts below.

2. The facts as pleaded by the appellant in the plaint are that the suit is filed by M/s. Mahesh Pal and Company through Mahesh Pal, who is stated to be one of the co-owners of the plaintiff-Company. It was averred that a Pre-Rent Agreement dated 03.03.1995 was entered into between the parties, in pursuance to which appellant had constructed open plinths for 11850 MTs capacity. Thereafter, parties formalised a written Rent Agreement dated 01.04.1995 as per which respondent- Corporation could store their Grains in the plinths at the agreed rate of rent of 16 paise per bag per month. The said Agreement was for a period of 5 years commencing from 01.04.1995. It was pleaded that before the expiry of stipulated period, plaintiff-Company sent a letter dated 11.02.2000 Ex.P1 to Regional Manager of the respondent-Punjab Warehousing Corporation, Ferozepur informing him about the expiry of five years period and further requested for execution of new Agreement. In the said letter, plaintiff also requested that the rent be now paid @ 25 paise per bag per month; or in the alternative the plinths may be vacated. However, Defendant No.1 vide order dated 24.04.2000 Ex.P10 sanctioned that w.e.f. 01.04.2000 respondent shall continue to be pay rent @ 16 paise per bag per month only as was being heretofore received by the plaintiff- Company. It is pleaded that however, in the month of April 2003, plaintiff Company was given a cheque of Rs.15,163/- which was received on 15.07.2003. As the said amount was on the lower side, plaintiff Company had approached defendant No.2 to know the reason but no plausible answer was forthcoming. Accordingly, plaintiff had served legal notice dated 30.07.2003 upon the respondents requesting the defendants to either pay agreed rate of rent @ 16 Paise per bag per month or in the alternative vacate the open plinths. It was further pleaded that the defendants slept over the matter and did not even reply to the legal notice. The plaintiff-Company again sent a letter to defendant No.2 but the defendants again did not respond to the plaintiff. Ultimately plaintiff filed CWP No. 10157 of 2004 before this Court, which was disposed of vide order dated 13.7.2004 directing the defendants to take a decision on the legal notice dated 30.07.2003 by passing a speaking order. Pursuant thereto, Managing Director of the respondent-Corporation passed order dated 10.09.2004 stating that rate of rent was previously fixed at 16 paise per bag per month on “general hiring basis”; however, vide order dated 28.05.2003, payment of rent by the Corporation had been changed to “actual storage basis”. Vide the said order dated 10.09.2004, plaintiff was further informed that plaintiff’s plinths had been vacated by the defendants w.e.f. 21.08.2004. It was pleaded in the plaint that the said order passed by defendants was against the law and spirit of the Agreements entered into between the parties. Accordingly, present suit was instituted on 16.03.2005 for recovery of Rs.2,67,511/- as rent for the period of 01.04.2003 till 21.08.2004.

3. Upon appraisal of the pleadings and the evidence led by the parties, the learned Civil Judge (Senior Division), Ferozepur had dismissed the suit of the plaintiff vide judgment and decree dated 15.09.2011. The Civil appeal filed by the plaintiff was also dismissed by the learned District Judge, Ferozepur vide judgment and de