1. Ejectment suit by landlord seeking possession of commercial premises from tenant. (Para 13 , 14 , 15 , 16 , 17 , 18 )
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HIGH COURT OF DELHI
Navin Chawla, J
Riveria Commercial Developers Ltd – Appellant
Versus
Brompton Lifestyle Brands Pvt Ltd – Respondent
CS(COMM) 640/2022 | CS(COMM.) No. 266/2021 | CCP(O) 76/2022
Advocates:
For the Appellants/Petitioners: Rajiv Nayar, B.B. Gupta, Meghna Mishra, Tarun Sharma, Achal Gupta, Aishwariya Chaturvedi
For the Respondents: Gaurav Gupta, Nikhil Kohli, Rahul Sinha, Akshaya Ganpath, Kritika Khurana
For the Appellants/Petitioners: Rajiv Nayar, B.B. Gupta, Meghna Mishra, Tarun Sharma, Achal Gupta, Aishwariya Chaturvedi
For the Respondents: Gaurav Gupta, Nikhil Kohli, Rahul Sinha, Akshaya Ganpath, Kritika Khurana
Important Points
An unregistered lease deed creates a month-to-month tenancy regardless of internal terms. Furthermore, suits contemplating urgent interim relief under the Commercial Courts Act, 2015, are exempt from the mandatory pre-institution mediation requirement under Section 12A.
Subject
Civil Law - Property Law
Act Referred
Headnote
(A) Code of Civil Procedure, 1908 - Order XII Rule 6, Order VII Rule 11(d), Order VI Rule 15A, Order XIII-A Rule 3 - Commercial Courts Act, 2015 - Section 12A - Delhi Rent Control Act, 1958 - Transfer of Property Act, 1882 - Sections 106 and 107 - Registration Act, 1908 - Section 49 - Stamp Act - Section 35 - Eviction of tenant - Unregistered Lease Deed - Pre-institution mediation - In a suit for ejectment, the plaintiff must establish the landlord-tenant relationship, that the tenancy is not protected under the Delhi Rent Control Act, that no registered subsisting lease agreement exists, and that the tenancy has been terminated. (Paras 14, 32)
(B) Transfer of Property Act, 1882 - Sections 106 and 107 - Registration Act, 1908 - Section 49 - An unregistered lease deed for a term exceeding one year is deemed to be a 'month-to-month' tenancy. The terms of an unregistered instrument cannot be relied upon to claim or enforce rights under the lease, except for collateral purposes. (Paras 35, 38)
(C) Commercial Courts Act, 2015 - Section 12A - Mandatory pre-institution mediation is not required for suits that contemplate urgent interim relief. The determination of whether a suit involves urgent relief is based on the pleadings and the relief sought by the plaintiff. (Paras 49, 50)
Facts of the case:
The plaintiff sought a decree for the possession of a commercial shop located in 'The Chanakya' building. The defendant admit the landlord-tenant relationship but contested the eviction, arguing that the lease deed's terms should be respected despite its non-registration. Furthermore, the defendant challenged the maintainability of the suit on the grounds that the plaintiff failed to undergo mandatory pre-institution mediation as required by the Commercial Courts Act after the suit was converted into a commercial suit.
Findings of Court:
The court found that since the lease deed was unregistered and insufficiently stamped, it could only be treated as a month-to-month tenancy. The termination notice served by the plaintiff, and the filing of the suit itself, were sufficient to terminate the tenancy. Regarding the Commercial Courts Act, the court held that since the plaintiff had prayed for and been granted urgent interim relief, the requirement for pre-institution mediation under Section 12A was not applicable.
Issues: Whether a decree of possession could be passed on admissions under Order XII Rule 6 of the CPC; whether an unregistered lease deed provides protection for a fixed term; and whether the suit was barred for lack of pre-institution mediation under Section 12A of the Commercial Courts Act.
Ratio Decidendi: An unregistered lease deed results in a month-to-month tenancy by operation of law, rendering the specific terms of the deed unenforceable. Additionally, the bar of pre-institution mediation under the Commercial Courts Act does not apply where the plaintiff seeks urgent interim relief.
Result: Application for decree of possession allowed; application for rejection of plaint dismissed.
(B) Transfer of Property Act, 1882 - Sections 106 and 107 - Registration Act, 1908 - Section 49 - An unregistered lease deed for a term exceeding one year is deemed to be a 'month-to-month' tenancy. The terms of an unregistered instrument cannot be relied upon to claim or enforce rights under the lease, except for collateral purposes. (Paras 35, 38)
(C) Commercial Courts Act, 2015 - Section 12A - Mandatory pre-institution mediation is not required for suits that contemplate urgent interim relief. The determination of whether a suit involves urgent relief is based on the pleadings and the relief sought by the plaintiff. (Paras 49, 50)
Facts of the case:
The plaintiff sought a decree for the possession of a commercial shop located in 'The Chanakya' building. The defendant admit the landlord-tenant relationship but contested the eviction, arguing that the lease deed's terms should be respected despite its non-registration. Furthermore, the defendant challenged the maintainability of the suit on the grounds that the plaintiff failed to undergo mandatory pre-institution mediation as required by the Commercial Courts Act after the suit was converted into a commercial suit.
Findings of Court:
The court found that since the lease deed was unregistered and insufficiently stamped, it could only be treated as a month-to-month tenancy. The termination notice served by the plaintiff, and the filing of the suit itself, were sufficient to terminate the tenancy. Regarding the Commercial Courts Act, the court held that since the plaintiff had prayed for and been granted urgent interim relief, the requirement for pre-institution mediation under Section 12A was not applicable.
Issues: Whether a decree of possession could be passed on admissions under Order XII Rule 6 of the CPC; whether an unregistered lease deed provides protection for a fixed term; and whether the suit was barred for lack of pre-institution mediation under Section 12A of the Commercial Courts Act.
Ratio Decidendi: An unregistered lease deed results in a month-to-month tenancy by operation of law, rendering the specific terms of the deed unenforceable. Additionally, the bar of pre-institution mediation under the Commercial Courts Act does not apply where the plaintiff seeks urgent interim relief.
Result: Application for decree of possession allowed; application for rejection of plaint dismissed.
Legal Category Hierarchy
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practice and procedure
-
civil procedure
- pleadings
- commercial courts
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transfer of proceedings
- transfer of suits (Para 11)
- property law
-
civil procedure
Table of Contents
2. Tenant opposed decree on grounds of mandatory pre-suit mediation, defective affidavit, and estoppel due to unregistered lease deed. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 )
3. All ingredients for eviction decree made out based on tenant's admissions; unregistered lease creates month-to-month tenancy. (Para 27 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 )
4. Unregistered lease deed for term exceeding one year creates month-to-month tenancy under Section 106, Transfer of Property Act. (Para 35 , 36 , 37 , 38 )
5. Decree for possession passed in favor of plaintiff; defendant's applications dismissed. (Para 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 )
6. What is the effect of an unregistered lease deed on the nature of tenancy?
An unregistered lease deed for a term exceeding one year creates a month-to-month tenancy under Section 106 of the Transfer of Property Act. (Para 35 , 36 , 37 , 38 )
7. Is pre-institution mediation mandatory before filing a commercial suit that seeks urgent interim relief?
No, pre-institution mediation under Section 12A is not mandatory if the suit contemplates urgent interim relief, as determined by the plaint. (Para 47 , 48 , 49 , 50 , 51 )
8. Can a landlord's acceptance of rent after a termination notice constitute waiver of the notice?
No, acceptance of rent or exploring amicable settlement after termination notice does not constitute waiver of the notice. (Para 44 , 45 )
I.A. 21806/2022
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1. The learned senior counsel for the plaintiff/non-applicant does not oppose this application seeking condonation of delay, filed by the defendant/applicant.
2. Accordingly, the delay of 55 days in filing of the Written Statement by the defendant/applicant is condoned. The same be placed on record, de hors the Office Objection.
3. The application stands allowed.
I.A. 21783/2022
4. The defendant/applicant is granted a period of two weeks to deposit the deficient Court Fees before the Registry of this Court.
5. The application is disposed of in the above terms.
I.A. 21785/2022
6. This application has been filed by the defendant/applicant under Section 10 of the Code of Civil Procedure, 1908 (in short, 'CPC') praying for the stay of the present suit till the adjudication of the suit filed by the defendant/applicant, titled as Brompton Lifestyle Brands Pvt. Ltd. v. Riveria Commercial Developers Limited, registered as CS (COMM.) No. 266/2021 pending adjudication before the learned District Judge (Commercial Court)-01, Patiala House Courts, New Delhi (in short, 'learned District Judge').
7. Issue Notice.
8. Notice is accepted by Ms.Meghna Mishra, the learned counsel on behalf of the plaintiff/non-applicant. She waives her right to file any reply to the application.
9. She submits that the suit filed by the defendant/applicant and pending adjudication before the learned District Judge, prays for the following relief:-
"(a) Pass a decree of Permanent Injunction in favour of the Plaintiff and against the Defendant whereby permanently restraining the Defendant from dispossessing the Plaintiff from the suit shop i.e. shop bearing number G-5A, situated at ground floor of the building namely, 'The Chanakya', situated at Yashwant Place Commercial Complex, opposite Chanakyapuri Post Office, Chanakyapuri, New Delhi- 110021, without following due process of law;"
10. She submits that, in fact, the plaintiff/non-applicant has no objection to the said suit being decreed, inasmuch as the plaintiff/non-applicant has already instituted the present suit, which is 'due process of law' for inter alia seeking the eviction of the defendant/applicant from the suit premises, that is, the shop bearing number G-5A, situated at the ground floor of the building, namely, 'The Chanakya', situated at Yashwant Place Commercial Complex, opposite Chanakyapuri Post Office, Chanakyapuri, New Delhi- 110021 (hereinafter referred to as the ' suit premises').
11. In view of the statement made by the learned counsel for the plaintiff/non-applicant and exercising the powers under Section 24 of the CPC, the suit, being CS (COMM.) No. 266/2021 titled Brompton Lifestyle Brands Pvt. Ltd. v. Riveria Commercial Developers Limited, is transferred to this Court from the Patiala House Courts, New Delhi; and is decreed in terms of the prayer which has been reproduced hereinabove.
12. In view of the above, the present application is also dismissed as having been rendered infructuous.
I.A. 18886/2022
13. This application has been filed by the plaintiff praying for a decree against the defendant, directing the defendant to hand over the actual and vacant physical possession of the suit premises.
Submissions on behalf of the learned senior counsel for the plaintiff
14. The learned senior counsel for the plaintiff, placing reliance on the judgments of this Court in Geeta v. Mohd. Raza and Another , 2019 SCC OnLine Del 11385, and Assochem v. Y.N. Bhargava , 2011 SCC OnLine Del 2880, submits that in a suit for ejectment, the plaintiff has to establish that:-
(i) There is a relationship of landlord and tenant between the parties;
(ii) The tenancy is not a 'protected tenancy' under the Delhi Rent Control Act, 1958;
(iii) There is no registered subsisting lease agreement; and
(iv) The tenancy has been terminated and the respondent-tenant has failed to hand over possession.
15. He submits that in the present case, there is no dispute about the existence of the relationship o
