Delhi High Court - Orders
Nandini Impex Private Limited And Ors vs Sincere Securities Private Limited & ... on 22 March, 2022
Author: C.Hari Shankar
Bench: C.Hari Shankar
$~31(Appellate Side-2022 List)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CM(M) 255/2022, CM APPL. 13806/2022 & CM APPL.
13807/2022
NANDINI IMPEX PRIVATE LIMITED AND ORS
..... Petitioners
Through: Mr. Sachin Jain, Adv. with Mr.
Shobhit Jain and Ms. Harsh Lata, Advs.
versus
SINCERE SECURITIES PRIVATE LIMITED & ANR.
..... Respondents
Through: Mr. Vivek Jain, Adv.
CORAM:
HON'BLE MR. JUSTICE C.HARI SHANKAR
ORDER
% 22.03.2022 CM APPL. 13807/2022 (for exemption)
1. Exemption allowed, subject to all just exceptions.
2. The application stands disposed of.
CM(M) 255/2022 & CM APPL. 13806/2022 (for stay)
3. This petition under Article 227 of the Constitution of India impugns an order dated 9th December, 2021, passed by the learned District Judge (Commercial Court), to the extent of the direction contained in the said order on the application of the respondent under Order XV-A of the Code of Civil Procedure, 1908 ('CPC') applicable to Delhi.
Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI CM(M) 255/2022 Page 1 of 6 Signing Date:24.03.2022 15:24:144. According to the case set up by the respondent, as the plaintiff in CS (COMM) 1290/2020, in which the impugned order has come to be passed, the respondent was the owner of the suit property.
5. The suit property, which was earlier owned by the petitioner, was mortgaged to the respondent on 20th February, 2019, followed by transfer of the property to the respondent on 27th February, 2020 by a Conveyance Deed.
6. The deed dated 27th February, 2020 also contained a covenant whereby the petitioner agreed to pay licence fee of ₹ 6 lakh per month to the respondent.
7. On the ground of default, on the part of the petitioner, in payment of the said licence fee w.e.f. 27th February, 2020, the respondent terminated the licence on 8th May, 2020. On 8th May, 2020, the respondent issued a legal notice demanding license fee.
8. Thereafter, the respondent filed CS(COMM) 1290/2020 before the learned trial court, seeking possession, arrears of rent, mesne profit and injunction.
9. Along with the said plaint, the respondent also filed an application under Order XV-A and Order XIII-A read with Order XII, Rule 6 of the Code of Civil Procedure, 1908. The impugned order has rejected the respondent's application under Order XIII-A read with Order XII, Rule 6 of the Code of Civil Procedure, 1908, and the petitioner has no grievance against such dismissal, the petitioner Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI CM(M) 255/2022 Page 2 of 6 Signing Date:24.03.2022 15:24:14 however aggrieved by the further directions, contained in the said order on the petitioner's application under Order XVA.
10. The learned trial court has held that, on facts, the petitioner was the tenant, and the respondent was the landlord of the suit property.
11. Having recorded the various allegations of the appellant regarding the Conveyance Deed having been executed by fraud etc. the learned Trial Court has held that, nonetheless, that as the appellant continued to be in possession of the suit premises, it would have to pay licence fee of ₹ 6 lakh per month, being the licence fee envisaged in the agreement dated 27th February, 2020 supra.
12. The prayer for mesne profits was rejected.
13. Mr. Sachin Jain, learned Counsel for the petitioner submits that there could be no justification for directing the petitioner to pay the licence fee at the rate of ₹ 6 lakh per month after the termination of the licence fee on 8th May, 2020.
14. He has invited my attention, in this context, to paras 14 to 16 of the plaint, as filed before the learned trial court, which read thus:
"14. That the Plaintiffs claim the arrears of license Fee from the defendant being the License Fee for the period from 27.02.2020 to 30.04.2020 along with interest at 18% per annum. The interest @ 18% p.a. is being claimed by the Plaintiffs for the month of March/April 2020 only on the said principal amount. The defendant company was put to notice regarding the liability to pay interest. The principal amount of arrears of License fee is Rs. 12,62,069/- and the interest @ 18% p.a. calculated as mentioned herein above amounts to Rs. 37,862/. The total amount of arrears including interest @ 18% p.a. is Rs.12,99,931/-.Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI CM(M) 255/2022 Page 3 of 6 Signing Date:24.03.2022 15:24:14
15. That since the Leave and License Agreement dated 27.02.2020 as well as the License arising therefrom of the defendant has been terminated by the plaintiffs vide legal notice dated 08.05.2020; the plaintiffs also claim possession of the suit premises from the defendant company. The defendants have failed to vacate the suit premises bearing No. 1/18-201 Ground Floor (part of Front Portion), Rani Jhansi Road, White House, New Delhi despite in receipt of the Legal Notice dated 08.05.2020 wherein a period of 15 days was, granted to the Defendants to vacate and handover the peaceful and vacant possession of the premises in question.
16. That the plaintiffs submit that the defendant is in unauthorised occupation of the suit premises from May 24, 2020. The plaintiffs claim mesne profits from the defendant 'from 1st June, 2020 at the rate of Rs. 100/- per square feet (excluding the applicable GST), which is the prevailing market rate of License Fee/rent in the locality. The plaintiffs claim mesne profits from the defendant at Rs. 2,40,000/- (Rupees Two Lakhs Forty Thousand) per month (excluding the applicable GST) from 1st June, 2020, till such time, the possession of the suit premises is obtained by the plaintiffs. The plaintiffs also claim interest at the rate of 18% per annum on the amount of mesne profits, which interest is to form part of mesne profit."
15. A reading of paras 14 to 16, submits Mr. Jain, indicates that, for continued occupation of the suit premises by the petitioner after termination of the licence, the respondent was seeking only mesne profit at the rate of ₹ 2,40,000/- per month.
16. The prayer for mesne profits having been rejected by the learned trial court, Mr. Jain submits that there could be no justification for trial court directing the petitioner to pay₹ 6 lakhs per month for continued occupation of the property.
17. Mr. Jain has also relied, challenging the finding of the learned trial court to the effect that the relationship between the petitioner and the respondent were of landlord and tenant, on the judgment of the Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI CM(M) 255/2022 Page 4 of 6 Signing Date:24.03.2022 15:24:14 Division Bench of this Court in Ashok Chaudhary v. Dr (Mrs.) Inderjeet Sandhu1.
18. At this stage, Mr. Jain, on instructions, agrees to deposit, with ₹ 12 lakhs as representing the the Registrar General of this Court, amount towards the arrears claimed for the period prior to termination of the licence and the amount computed ₹of 1,20,00 0/- per month from June, 2020 till date, by way of a demand draft/crossed cheque with the Registrar General of this Court within eight weeks from today.
19. In the circumstances, issue notice.
20. Notice is accepted, on behalf of the respondent, by Mr. Vivek Jain.
21. Reply, if any, be filed within four weeks from today with advance copy learned Counsel for the petitioner, who may file rejoinder thereto, if any, before the next date of hearing.
22. Subject to the above, till the next date of hearing, there shall be a stay of operation of the impugned order dated 9th December, 2021 insofar as it rejects the respondent's application under Order XV-A CPC.
23. It is made clear that the observation contained in this order shall not influence the court in any manner at the time of final hearing of the petition.
11998 SCC Online 405 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI CM(M) 255/2022 Page 5 of 6 Signing Date:24.03.2022 15:24:14
24. Given the limited issue involved, no extension of time for filing of reply/rejoinder would be granted.
25. List for disposal of appeal on 25th May, 2022 alongwith CM(M) 252/2022.
C.HARI SHANKAR, J MARCH 22, 2022 SS Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI CM(M) 255/2022 Page 6 of 6 Signing Date:24.03.2022 15:24:14