Neutral Citation Number: 2022/DHC/004925

RFA(OS)(COMM) 1/2022

Page 1 of 19

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 16^th NOVEMBER, 2022

IN THE MATTER OF:

+

RFA(OS)(COMM) 1/2022 & CM APPLs. 18826/2022, 18827/2022

SKIPPER PROPERTIES PRIVATE LIMITED & ANR.... Appellants

Through:

Mr. Suraj Prakash, Advocate

versus

SUNRISE PROPERTY DEVELOPERS PRIVATE LIMITED & ORS

..... Respondents

Through:

Mr. Rajesh Yadav, Sr. Advocate with

Ms. Ruchira, Advocate

CORAM:

HON’BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

JUDGMENT

SUBRAMONIUM PRASAD, J

1.

The present Appeal has been filed under Section 13(1A), Commercial

Courts Act, 2015 read with Section 131 of the Civil Procedure Code, 1908

against the order and part decree passed by the Ld. Single Judge in CS (OS)

(COMM) 387/2019 and the order passed in the Review Petition No. 18/2020

in CS (OS) (COMM) 387/2019.

2.

The facts leading up to the filing of this Appeal are that the Appellant

No. 1/Skipper Properties/Appellant-lessor is a company registered under the

Companies Act, 1956, which operates in the domain of constructing and

developing commercial retail spaces/properties. The Appellant-lessor is the

absolute owner of the premises in dispute.

Digitally Signed

By:SHAZAAD ZAKIR

Signing Date:17.11.2022

19:53:03

Signature Not Verified

Neutral Citation Number: 2022/DHC/004925

RFA(OS)(COMM) 1/2022

Page 2 of 19

3.

The Appellant-lessor entered into a lease agreement with the

respondent-lessee for the premises at No. 26, Ground Floor, Janak Cineplex

located inside Plot No. 3, Community Center, Block-C, Janak Puri, New

Delhi 110058, with a carpet area of 1100 sq ft. (hereinafter referred to as

‘the Premises’) on 31.01.2015, for a period of 15 years with applicable rent

at the rate of Rs. 312 per square feet of super area (being 2000 square feet),

with an increment of 10% per annum after 3 years. Clause 16 stipulates the

rent commencement period as being the 121^steither from the date the lessee

is in receipt of the Completion Certificate issued by the DDA/MCD, or on

the date of completion of the work order as stipulated in clauses 10 and 11,

whichever date would be later.

4.

Pursuant to the requirements of clauses 5 and 6, the Respondent-

lessee deposited Rs 37,44,000/- in lieu of refundable and interest free

security deposit, and Rs. 74,88,000/- as advance rent for a period of 15

years, respectively. The combined total of these payments is Rs.

1,12,32,000/-. The Respondent-lessee’s payment of the aforestated amount

is recorded in Clause 7, while Clause 15 states that the lessee is entitled to

obtain a refund of the interest free and refundable security deposit at any

time, subject to payment of three month’s rent, or after having served a

notice period of 3 months. The relevant clauses of the lease agreement are

reproduced below for reference:

or Completion of Lessor’s Scope of Work, which ever

Digitally Signed

By:SHAZAAD ZAKIR

Signing Date:17.11.2022

19:53:03

Signature Not Verified

Neutral Citation Number: 2022/DHC/004925

RFA(OS)(COMM) 1/2022

Page 3 of 19

Digitally Signed

By:SHAZAAD ZAKIR

Signing Date:17.11.2022

19:53:03

Signature Not Verified

Neutral Citation Number: 2022/DHC/004925

RFA(OS)(COMM) 1/2022

Page 4 of 19

16. The “Rent Commencement Date” shall be the 121^st

Digitally Signed

By:SHAZAAD ZAKIR

Signing Date:17.11.2022

19:53:03

Signature Not Verified

Neutral Citation Number: 2022/DHC/004925

RFA(OS)(COMM) 1/2022

Page 5 of 19

5.

At the time of entering the lease agreement, construction work for the

premises located in Janak Cineplex remained incomplete, for which the

Appellant-lessor had undertaken to complete work by 31.12.2015.

6.

As per the lease agreement, the date of completion of work orders and

handing was on or before 31.12.2015. A pre-requisite to successfully obtain

the L-10 liquor license was to be in possession of a premises in respect of