Bangalore District Court
M/S Pleasnat Valley Development ... vs M/S New Deccan International on 10 September, 2025
Com.OS.No.418/2024
KABC170008462024
IN THE COURT OF LXXXV ADDL. CITY CIVIL & SESSIONS
JUDGE, AT BENGALURU (CCH-86) (Commercial Court)
THIS THE 10th DAY OF SEPTEMBER 2025
PRESENT:
SRI.ARJUN. S. MALLUR. B.A.L.LL.B.,
LXXXV ADDL. CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
Com.OS.No.418/2024
BETWEEN:
M/S Pleasnat Valley Development Private Limited,
A Company registered under the
provisions of the Companies Act,
Having its registered office at 102,
Embassy Palace, Cunninghm Road,
Bangalore - 560052
Rep. By Its Authorized Signatory
Mr.Jagadish V
: PLAINTIFF
(By Sri.Guru Prasanna.S, Advocate)
AND
1. M/S New Deccan International,
A Proprietorship Concern,
Having its office at No.42,
2nd Main Road, Dollars Layout,
4th Phase, JP Nagar,
1
Com.OS.No.418/2024
Bangalore-560078
Rep. By Mr.Ravindra H.P
Also At:
No.825, Das Commercial Complex
Kanakapura Road, 7thBlock,
Jayanagar, Bangalore - 560082
2: M/S Lemon Pepper Hospitality Pvt Ltd
A Company Registered under the provisions of
The Companies Act 2013,
Having its office at No.30,
Old No.1, 2nd Floor,
Church Street, Civil Station,
Bangalore -560001
: DEFENDANTS
(By Sri.Sandeep Patil, Advocate for D1
Sri. Harish V S, Advocate for D2)
Date of Institution of the suit 18.03.2024
Nature of the suit (suit on
pronote, suit for declaration & Suit for Eviction and Recovery
Possession, Suit for injunction of Arrears of rent and
etc.) damages.
Date of commencement of 11.11.2024
recording of evidence
Date on which judgment was 10.09.2025
pronounced
Total Duration Year/s Month/s Day/s
01 05 23
(ARJUN. S. MALLUR)
LXXXV Addl.City Civil & Sessions Judge,
Bengaluru.
2
Com.OS.No.418/2024
JUDGMENT
Suit for directing the defendants to quit and deliver vacant possession of the schedule B property and directing defendants jointly and severally to pay the arrears of rent with common area maintenance charges and GST at 18% p.a. for the period 01.06.2020 to 31.05.2021 amounting to Rs.42,57,034/ and for payment of premium for illegal occupation of the schedule property by the defendants from 01.06.2020 to 31.01.2024 amounting to Rs.1,23,93,927/- and for compensation of Rs.10,00,000/- per month for illegal occupation of the schedule B property from the date of suit till handing over of possession and also to pay the interest at 18% p.a. from the date of suit till realization on arrears of rent.
2. The case of the plaintiffs in brief is as under:-
The plaintiff is the absolute owner of the commercial building bearing No.30(old No.1), Church Street, Civil Station, Bengaluru comprising for basement, ground floor, first floor, second floor and third floor totally measuring 21,872 sq.ft. The same is described as A schedule property. The plaintiff had leased out an area of measuring 3451sq.ft in the second floor under a registered lease deed dated 02.04.2016 to defendant No.1 which is 3 Com.OS.No.418/2024 described as schedule B property. The said lease was for a period of five years commencing from 02.04.2016. The defendant No.1 had agreed to pay monthly rent of Rs.2,24,315/- for the first year commencing from 02.04.2016 with common area maintenance charges of Rs.15,000/- per month. The defendant No.1 also had agreed to pay escalated rents by 10% for the first year and 5% in the 2nd and subsequent years. The rent was required to pay on or before 10th of every month.
It is submitted that on 05.04.2017 there was an amendment to the earlier lease deed and a registered amendment lease deed came to be executed under which the rights and obligations of the lessee i.e., defendant No.1 with respect to B schedule property came to be assigned by defendant No.1 in favour of defendant No.2. To the said registered amended lease deed the plaintiff, defendant No.1 and defendant No.2 are the signatories. By way of amended lease deed dated 05.04.2017 the lease that was entered between plaintiff and defendant No.1 was attorned in favour of defendant No.2. By virtue of the amended lease deed the defendant No.2 became liable to pay the rents with respect to the B schedule property directly to the plaintiff and defendant No.2 was bound by all other terms of the original lease dated 4 Com.OS.No.418/2024 02.04.2016.
It is submitted that as per the terms of registered lease deed dated 02.04.2016 and amended lease deed dated 05.04.2017 the defendant Nos.1 and 2 were jointly and severally liable to pay the rents with respect to the B schedule property. It is submitted that the defendants committed default in payment of rents and inspite of several requests thorough mail, orally and over phone the defendants deliberately failed to pay the rents regularly. It is submitted that the period of lease was for 5 years which got expired on 31.05.2021. It is submitted that from 01.06.2020 to 31.05.2021 the defendants are liable to pay rent at the rate of Rs.2,85,638/- per month with common area maintenance charges of Rs.1,80,000/- per month with GST at 18% totally amounting to Rs.42,57,034/-. After the expiry of lease by 31.05.2021 there was no subsequent renewal of the lease and defendants became trespassers in the schedule property in illegal occupation of the same. For the period 01.06.2021 to 31.05.2022 by way of damages the defendants are liable to pay rent at the rate of Rs.2,99,920/- per month with common area maintenance charges Rs.1,80,000/- per month and GST at 18% per annum totally amounting to Rs.44,59,267/-. Similarly from 06.06.2022 to 31.05.2023 for the schedule 5 Com.OS.No.418/2024 B property rent at t he rate of Rs.3,14,916/- per month with common area maintenance charges at Rs.1,80,000/- per month and GST at 18% per annum the defendants have become liable to pay a sum of Rs.46,71,611/-. Similarly from 01.06.2023 to 31.01.2024 the defendants are liable to pay rent at the rate of Rs.3,30,662/- per month for 8 months with common area maintenance charges of Rs.1,20,000/- per month for 8 months with GST at 18% per annum totally amounting to a sum of Rs.32,63,049/- by way of damages.
Upon expiry of lease period and as the defendants failed to quit, handover, vacate vacant possession of the schedule B property the plaintiff issued legal notice calling upon the defendants to vacate the premises and pay the arrears of rent. The defendants assured to pay the rents but never made any payments. Thereafter plaintiff issued another legal notice dated 05.04.2023 calling upon the defendants to vacate the property and deliver the same and also pay the arrears of rent to which no reply has been caused. It is submitted that despite the service of legal notices the defendants have failed to quit and deliver vacant possession of the schedule premises and have remained in illegal occupation of the same. The plaintiff instituted PIM proceedings in PIM No.1632/2023 in 6 Com.OS.No.418/2024 which the defendants though appeared were not ready to go for mediation. Hence the suit.
3. On service of summons the defendant No.1 appeared before the Court through its counsel. The defendant No.1 failed to file the written statement within the stipulated period of 120 days thereby forfeiting its right of written statement. Defendant No.2 had remained absent and had been placed exparte. Defendant No.2 had filed an application for setting aside the order of exparte which vide order dated 20.12.2024 has been rejected. Subsequently vide order dated 07.07.2025 passed in W.P.No.6181/2025 the Hon'ble High Court of Karnataka permitted defendant No.2 to come on record and put forth his defence subject to deposit of 40% of the arrears of rent before this Court within 6 weeks. And the parties were directed to cooperate for expeditious disposal of the suit. Pursuant to the orders of Hon'ble High Court the defendant No.2 though appeared through counsel failed to deposit 40% of the arrears of rent within 6 weeks as directed by the Hon'ble High Court and also did not file the written statement. The defendant No.2 preferred an appeal against the order of the Hon'ble High Court passed in the above writ petition before the Hon'ble Apec Court in 7 Com.OS.No.418/2024 Special Leave to Appeal (C) No.23262/2025 which the Hon'ble Apex Court vide order dated 20.08.2025 has dismissed the same.
4. The Authorized signatory of plaintiff examined himself as P.W.1 and got marked documents at Ex.P.1 to P.13. Though the defendant No.1 had forfeited his right to file the written statement the Hon'ble High Court vide its order dated 18.12.2024 in W.P. No.33631/2024 permitted defendant No.1 to cross-examine P.W.1 on the plaint averments. Accordingly P.W.1 has been cross-examined by defendant No.1.
5. Heard the Learned Counsel appearing for the plaintiff. Counsel for defendant No.1 has submitted written submissions. Perused the material on record.
6. Now the points that arise for my consideration are:
1) Whether plaintiff proves that the defendants Nos.1 and 2 are liable to quit, vacate and hand over vacant possession of the schedule B property upon expiry of the lease?
2) Whether the plaintiff proves that the defendants Nos.1 and 2 are jointly and severally liable to pay a sum of 8 Com.OS.No.418/2024 Rs.42,57,034/- as arrears of rent with common area maintenance charges and with GST at 18% p.a. for the period 01.06.2020 to 31.01.2021?
3) Whether the plaintiff proves that the defendants Nos.1 and 2 are jointly and severally liable to pay premium by way of damages for illegal occupation of the schedule B property from 01.06.2020 to 31.01.2024 with common area maintenance charges and GST at 18% p.a. totally amounting to Rs.1,23,93,927/-?
4) Whether the plaintiff proves that the defendants Nos.1 and 2 are jointly and severally liable to pay compensation of Rs.10,00,000/- per month for illegal occupation of the schedule B premises from the date of suit till handing over of possession with interest at 18% p.a.?
5) What order or decree?
7. My answers to the above points are as under:
Point No.1:- Partly in the Affirmative Point No.2:- Partly in the Affirmative Point No.3:- Partly in the Affirmative Point No.4:- Partly in the Affirmative 9 Com.OS.No.418/2024 Point No.5:- As per the final Order for the following;
REASONS
8. POINT Nos.1 to 4:- These points are interlinked with each other and to avoid repetitions of facts and evidence they are taken up together for answering.
The authorized representative of the plaintiff in support of the plaint averments has examined himself as P.W.1 reiterating the averments made in the plaint and has got marked documents at Ex.P.1 to P.13. Ex.P.1 is the board resolution authorizing P.W.1 to depose. Ex.P.2 certified copy of the registered lease deed dated 02.04.2016. Ex.P.3 is the certified copy of the registered amended lease deed dated 05.04.2017. Ex.P.4 is the office copy of the legal notice dated 05.04.2023 terminating the tenancy and calling upon the defendants to quit and handover vacant possession and also pay the arrears of rent. Ex.P.5 is the postal receipts. Ex.P.6 are the undelivered postal covers returned as unclaimed. Ex.P.7 is the corrigendum notice dated 21.06.2023. Ex.P.8 is the postal receipt. Ex.P.9 is the postal acknowledgment regarding service of the corrigendum notice. Ex.P.10 is the non-starter report in PIM No.1632/2023. Ex.P.11 is the statement of amounts due payable by the defendants.
10Com.OS.No.418/2024 Ex.P.12 is the master data of defendant No.2 downloaded from the MCA website. Ex.P. 13 is the certificate under sec.63(4)(c) of BSA 2023 with respect to Ex.P.2, 3 and 12.
9. As mentioned above the defendant No.1 though forfeited his right to file the defence has cross-examined the P.W.1 on the plaint averments. In the course of cross- examination P.W.1 deposes that the sanction plan, commencement and completion certificate with respect to the schedule premises has been obtained from the BBMP and for the suggestion that they have not been provided to the defendant P.W.1 deposes that the defendant No.1 had not asked for the same. P.W.1 in the cross- examination denied any memorandum of settlement with defendant No.2 dated 25.03.2019. However by virtue of the order passed on I.A.No.10 the plaintiff has been directed to produce the memorandum of settlement dated 25.03.2019. The same has been produced to the Court by the plaintiff along with certified copy of the order sheet in CC No.2670/2018 together with the said document the memorandum of settlement 25.03.2019 has been produced to the Court. Further in the course of cross- examination of P.W.1 also under took to produce the sanction plan, commencement and completion certificates 11 Com.OS.No.418/2024 but the same has not been produced to the Court. Further in the cross-examination P.W.1 denies having the tenancy being attorned in favor of defendant No.2 and no liability accrues on defendant No.1. On the other hand P.W.1 deposes that both defendant Nos.1 and 2 are jointly and severally liable to pay the suit claims.
10. It is the specific case of the plaintiff that the lease which was entered on 02.04.2016 with defendant No.1 was for a period of 5 years which got lapsed by efflux of time by 01.05.2021. It is submitted that in the meanwhile defendant No.2 has been inducted into the schedule property and the lease hold rights have been assigned by defendant No.1 to defendant No.2 under a registered amended lease dated 05.04.2017 and the tenancy has been attorned in favour of defendant No.2. The plaintiff himself contends that by virtue of the amended lease deed it is the liability of the defendant No.2 to pay the required rents with respect to the schedule premises till vacations or till expiry of the lease period. In the course of evidence the plaintiff has produced certified copy of the registered lease deed dated 02.04.2016 which is with respect to lease entered into between plaintiff and defendant No.1. The lease was for a period of five years 12 Com.OS.No.418/2024 commencing from 02.04.2016 and the rents are payable from May 2016. Subsequently there was an amendment to this lease by way of an amended lease deed dated 05.04.2017 to which the present plaintiff is also one of the signatory. Under the amended lease deed all the lease hold rights held by defendant No.1 with respect to schedule B property has been duly transferred by way of a registered amendment of lease and assigned in favour of defendant No.2. Further clause 4(ii)(e) of the registered lease deed came to be amended and upon assignment of the lease in favour of defendant No.2 there is attornement of tenancy to defendant No.2 and the defendant No.2 is held liable to pay all the rents, common area maintenance charges and all other statutory expenses to the plaintiff directly. Therefore with effect from 05.04.2017 there was no obligation created under the registered instrument for the defendant No.1 to pay any rent, maintenance charges and other expenses. By virtue of a registered instrument all the lease hold rights have been assigned in favour of defendant No.2. The tenancy is also attorned in favour of defendant No.2 and therefore by virtue of registered amended lease dated 05.04.2017 with effect from that date the tenancy of the defendant No.1 on the schedule B property also did not exist. Same has been the written 13 Com.OS.No.418/2024 submissions of counsel for defendant no.1. When all the lease hold rights together with obligation to pay rent and other statutory charges being attorned and assigned in favour of defendant No.2 calling upon defendant No.1 to vacate and handover the schedule B premises and making defendant No.1 also liable to pay the arrears of rent, maintenance charges with GST and other expenses is not sustainable under law. In other words the defendant No.1 is neither required to vacate the premises as the tenancy has been assigned and attorned in favour of defendant No.2 and therefore no liability accrues upon defendant No.1 to either vacate the premises as he no longer remains in possession of the schedule B premises as a tenant under plaintiff and consequently no liability can be casted upon defendant No.1 to pay the arrears of rent and maintenance charges, damages as claimed in the suit.
11. Also the plaintiff except the self serving affidavit evidence of it authorized signatory has not placed on record any evidence to show that defendant No.1 continued to remain in possession of the tenanted premises even after assigning lease hold rights to defendant No.2 and attornment of tenancy to defendant No.2 14 Com.OS.No.418/2024
12. As evident from the registered amended lease deed dated 05.04.2017 and by virtue of attornment of the tenancy and assignment of the lease hold right the defendant No.2 becomes liable to quit, vacate and handover vacant possession and also pay the arrears of rent and maintenance charges. In the course of proceedings by virtue of the orders passed on I.A.No.10 the plaintiff has produced certified copy of the memorandum of settlement dated 25.03.2019. The said settlement has been produced in CC.No.2671/2018 which was a cheque bounce proceedings initiated by the present plaintiff against the present defendants in which proceedings with respect to dishonor of 4 cheques amounting to Rs.2,39,315/- each has been initiated and in the said memorandum of settlement it has been mentioned that the accused No.2 i.e. representative of the present defendant No.2 has paid the amounts in the said cheque. The settlement is with respect to the cheques which were issued subsequent to the attornement of tenancy. Therefore the amount of rents due under the cheques has been duly paid by defendant No.2. The terms of the memorandum of settlement also substantiates that it is the defendant No.2 who is currently in illegal occupation of the schedule B premises as the lease has 15 Com.OS.No.418/2024 expired by afflux of time from May 2021 and therefore the defendant No.2 becomes liable to quit, vacate and handover vacant possession of the schedule premises and also pay the arrears of rent, maintenance charges, damages and other expenses. The plaintiff is also seeking for awarding a sum of Rs.10,00,000/- per month towards illegal occupation of the schedule B property from date of suit till handing over of possession. The claim of payment of compensation at Rs.10,00,000/- is without any basis and also no evidence is forthcoming on part of the plaintiff. It is a fact that defendant No.2 has remained in illegal occupation of the premises subsequent to expiry of lease by efflux of time. Therefore it would be just and proper to award compensation payable by defendant No.2 at the rate of last due rent as compensation. Accordingly for the aforesaid reasons I answer Point Nos.1 to 4 partly in the Affirmative.
13. Point No.5:- For the aforesaid reasons, I pass the following.
ORDER Suit of the plaintiff is decreed in part with costs.
The defendant No.2 is directed to
16
Com.OS.No.418/2024
quit vacate and handover vacant
possession of the schedule B property which is a part of schedule A property as described in the plaint within 30 days from the date of this order.
Failure to which plaintiff is at liberty to initiate appropriate proceedings in accordance with law.
The defendant No.2 shall pay a sum of Rs.42,57,034/- arrears of rent with common area maintenance charges with GST at 18% p.a. for the period 01.06.2020 to 31.05.2021.
The defendant No.2 shall also pay by way of premium/damages amounting to Rs.1,23,93,927/- for illegal occupation of the schedule B property from 01.06.2020 to 31.01.2024 including the common area maintenance charges with GST at 18% p.a. The defendant No.2 shall also pay a sum of Rs.3,30,662/- as compensation per month with interest at 18% p.a. from the date of suit till handing over of 17 Com.OS.No.418/2024 vacant possession of schedule premises.
Suit of the plaintiff against defendant No.1 is dismissed.
Draw decree accordingly.
Office to send soft copy of the judgment to respective parties on their email if furnished.
[Dictated to the Stenographer Grade-III, transcribed by her, corrected and signed by me then pronounced in the Open Court, dated this the 10th day of September 2025] (ARJUN. S. MALLUR) LXXXV Addl.City Civil & Sessions Judge, Bengaluru.
ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF PLAINTIFF:
PW-1 Sri. Jagadeesh V LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Board resolution.
Ex.P.2 Certified copy of the lease deed dated 02.04.2016.
Ex.P.3 Certified copy of the amended lease deed dated 05.04.2017.
Ex.P.4 Office copy of legal notice dated 05.04.2023.
Ex.P.5 Postal receipts 18 Com.OS.No.418/2024 Ex.P.6 Undelivered postal covers returned as unclaimed. Ex.P.7 Corrigendum notice dated 21.06.2023. Ex.P.8 Postal receipt. Ex.P.9 Postal acknowledgment regarding service of the corrigendum notice. Ex.P.10 Non starter report in PIM No.1632/2023. Ex.P.11 Statement regarding dues payable by the defendant. Ex.P.12 Printout of master data of defendant No.2 from MCA website. Ex.P.13 Certificate u/S 63(4)(c) of BSA, 2023 with respect to Ex.P.2, P.3 and P.12.
LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT D.W.1 Nil LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT Nil (ARJUN. S. MALLUR) LXXXV Addl.City Civil & Sessions Judge, Bengaluru.
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