Bangalore District Court
Smt. P. Bharathi vs M/S. Arr Precision Works Pvt. Ltd on 16 December, 2017
[C.R.P. 67] Govt. of Karnataka
Form No.9 (Civil)
Title Sheet for
Judgment in
Suits (R.P.91)
IN THE COURT OF THE XLIII ADDL. CITY CIVIL
& SESSIONS JUDGE, BENGALURU. (CCH 44)
Dated: This the 16th day of December, 2017
PRESENT
Sri. V.H. WADAR, B.A., LL.B.(Spl.),
XLIII ADDL. CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
O.S. No.6728/2016
PLAINTIFF : Smt. P. Bharathi,
Aged about 64 years,
W/o Late S.N.Parthasarathy,
R/at No.463, Ground Floor,
1st E Cross, 8th Main, 4th Block,
3rd Stage, Basaveshwara Nagar,
Bengaluru-560 099
(By Sri K.K. Vasanth, Advocate)
VS.
DEFENDANTS : 1. M/s. ARR Precision Works Pvt. Ltd.
A Private Limited Company,
And also registered as Small Scale
Industrial Unit,
No.53/2, Magadi Main Road,
Kamakshipalya, Bengaluru-560 079
Represented by its Managing Director
Sri T.N. Rajanna,
2 O.S.No.6728/2016
2. Sri T.N. Rajanna,
Aged about 60 years,
S/o Narayanappa
Managing Director,
ARR Precision Works Pvt. Ltd.,
No.53/2, Magadi Main Road,
Kamakshipalya, Bengaluru-560 079.
(Exparte)
Date of Institution of the suit: 19/09/2016
Nature of the Suit (Suit for
pronote, suit for declaration and Suit for Ejectment
possession, Suit for injunction,
etc,) :
Date of the commencement of 02/08/2017
recording of the Evidence:
Date on which the Judgment was 16/12/2017
pronounced:
Total Duration : Year/s Month/s Day/s
01 02 27
(V.H. WADAR)
XLIII ADDL. CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
JUDGMENT
Plaintiff has filed suit to direct the defendants to quit, vacate and handover vacant possession of schedule property to 3 O.S.No.6728/2016 the plaintiff, free from all encumbrances, direct the defendants to pay the arrears of rent of Rs.57,532/- TDS of Rs.26,801-60 and the sum of Rs.8,460/- towards the interest on the security deposit to the plaintiff together with interest at Rs.12% p.a. and to hold enquiry for mesne profit from 01/09/2016 at the rate of 35,000/- per month till the date of delivery of vacant possession of the schedule property.
2. The brief facts of the case are as under:
Plaintiff contends that she is the absolute owner and landlady of the premises bearing Kaneshumari No.3182/3609/53/2 measuring east to west 35 feet and north to south 70 feet consisting of industrial shed and having RCC roof, which is described in the schedule and also having 20 + 20 HP sanctioned power in the name of the plaintiff. The defendant No.1 being a private limited company and registered as small scale industry represented by its Managing Director T.N. Rajanna, is the tenant in respect of schedule property under the plaintiff on a monthly rent of Rs.19,144/- per month exclusive of water and 4 O.S.No.6728/2016 electricity charges payable on or before 5th of every consecutive month as the tenancy being a month to month tenancy commencing from 1st of every English calendar month. The defendant No.2 is the managing director of the defendant No.1 and he is made as one of the defendants.
The plaintiff further contends that the defendants are carrying on business in the schedule premises under the name and style ARR Precision Works Pvt. Ltd., manufacturing press tools, lamination tools, plastic mould, sub-assemblies and precision components by utilizing 20 + 20 HP sanctioned power standing in the name of the plaintiff.
The defendants used to deposit monthly rent after deducting TDS to the account of the plaintiff standing with Karnataka State Co-operative Apex Bank Ltd. Vijayanagar Branch, Bengaluru at their whims and fancies. The defendants never used to inform or intimate the plaintiff with regard to deposit of rents except saying on enquiry that monthly rent deposited by them after deducting TDS. However, the defendants neither 5 O.S.No.6728/2016 informed the plaintiff nor furnished the TDS particulars, despite the request and demands made thereof. The defendants deposited monthly rents of Rs.17,230/- after deducting TDS till the end of March 2015 and thereafter failed and neglected to deposit the monthly rents as and when the same accrued due and as such the plaintiff caused a legal notice on 06/02/2016 calling upon the defendants to pay the monthly rents at Rs.17,230/- (by mistake the monthly rent was shown in the notice as Rs.17,365/-) after deducting TDS from April 2015 till December 2015 and also January 2016 intimating them to pay service taxes and also quit, vacate and handover the vacant possession of the schedule property to her on 01/09/2016, as the said 6 months period would expire on 31/08/2016 and terminated the tenancy with effect from 31/08/2016 and also called them to pay arrears of rent claiming mesne profit at the rate of Rs.35,000/- per month commencing from 01/09/2016, if the defendants failed to quit, vacate and handover vacant possession of the schedule property to the plaintiff on 01/09/2016. In the said notice it is also made clear to the defendants that any amount that may be deposited 6 O.S.No.6728/2016 by the defendants to the account of the plaintiff after 01/09/2016 would be treated as mesne profits without prejudice to the right to seek for ejectment and also claim mesne profit at the rate of Rs.35,000/- per month from 01/09/2016. The said notice was served on the defendants through email and also personally on 13/02/2016 and defendant No.2 being managing director of the defendant No.1 has acknowledged the receipt of the legal notice on 13/02/2016 and put his signature with seal of the defendant No.1. Thus the legal notice dated 06/02/2016 is valid one terminating the tenancy with effect from 31/08/2016 calling upon the defendants to quit, vacate and handover the vacant possession of the schedule property on 01/09/2016. The defendant No.1 claiming to be the lessee of the schedule property for manufacturing purpose, 6 months time as contemplated U/Sec.106 of T.P. Act has been given to the defendants to vacate the schedule premises on 01/09/2016. Having received the notice of termination of tenancy, the defendants neither caused any reply not complied with the demands made thereof. On the other hand, the defendants are 7 O.S.No.6728/2016 squatting on the schedule property even after 01/09/2016 making huge profits.
The plaintiff further contends that there is no lease agreement between the plaintiff and the defendants and there is no advance amount or security deposit with the plaintiff.
The plaintiff contends that though the defendants deducted TDS for the year 2015-16 at 10% on the monthly rent of Rs.19,144/- have not uploaded the same nor issued any certificate thereof having paid the amount deducted under TDS. The defendants every month have deducted a sum of Rs.1,914.40 for the year 2015-16 have not remitted to the PAN of the plaintiff. However, the plaintiff has been assessed to pay tax on the rental income. Thus the defendants are liable to pay a sum of Rs.22,972-80 to the plaintiff towards the amount withheld by them from the monthly rent payable. Even for the month of April and May 2016, the defendants have deducted TDS at the rate of 1914.40 and they are liable to pay a sum of Rs.3,828.80 to the plaintiff. Thus in all Rs.26,801-60 towards the amount deducted 8 O.S.No.6728/2016 and withheld by the defendants without remitting the said TDS amount or uploading the same to the PAN No. of the plaintiff and thereby they have made the plaintiff to pay the income tax on the rental income twice.
The plaintiff further contends that the 20 + 20 HP sanctioned power standing in the name of the plaintiff is being utilized by the defendants for their manufacturing purpose. The plaintiff has already deposited a sum of Rs.35,650/- with BESCOM as security deposit and after receipt of notice from BESCOM, the defendants paid a sum of Rs.26,240/- towards security deposit and deducted the same from the monthly rent payable to the plaintiff. The BESCOM declares the interest payable on the security deposit every year at the rate of Rs.4,230/- and for the year 2014-15 and 2015-16, the total amount declared is at Rs.8,460/-. The plaintiff is entitled for the said interest. However the defendants have taken advantage of the bills issued adjusting the said interest and paid the consumption charges. As such the defendants are liable to pay the said sum of Rs.8,460/- to the plaintiff. 9 O.S.No.6728/2016
The plaintiff further contends that the defendants after receipt of the legal notice dated 06/02/2016 have deposited a sum of Rs.51,690/- on 04/07/2016 being the rent for the month of March, April and May 2016 at the rate of Rs.17,230/- per month after deducting TDS of Rs.1,914.40 per month out of total monthly rent payable at Rs.19,144/- exclusive of water and electricity charges. Thus the defendants are liable to pay the monthly rent at the rate of Rs.19,144/- per month for the month of June, July and August 2016 amounting to Rs.57,432/- as they are not entitled to deduct TDS, in view of not uploading or paying the same in the name of the plaintiff.
The defendants are liable to pay to the plaintiff as follows:-
a) TDS amount withheld by the defendants for the year 2015-16 at Rs.1,914-40 per month amounts to 22,972.80.
b) TDS amount withheld by the defendants for the month of April and May 2016 at the rate of Rs.1,914-40 per month amounts to Rs.3,828.80
c) Interest on the security deposit for the year 2014-15 and 2015-16 at the rate of Rs.4,230/- per year amounts to Rs.8,460/-10 O.S.No.6728/2016
d) The arrears of rent for the month of June, July and August 2016 at the rate of Rs.19,144/- per month amounts to Rs.57,432/-.
In all Rs.92,693.60.
The cause of action for the suit arose on 06/02/2016. hence this suit.
3. Inspite of service of summons, the defendant Nos.1 and 2 remained absent, hence placed exparte.
4. The plaintiff herself examined as P.W.1, Ex.P.1 to P.4 got marked and closed plaintiff's side.
5. The following points arise for my consideration:
1. Whether the plaintiff is entitled for the reliefs as prayed in the suit?
2. What order?
6. Heard the arguments.
7. My findings on the above points are:-
Point No.1: In the affirmative Point No.2: As per final order for the following :-11 O.S.No.6728/2016
REASONS
8. Point No.1:- It is the case of the plaintiff that plaintiff is absolute owner and land lady of the suit schedule property and the defendant No.1 being private limited company and a small scale industry represented by its Managing Director the defendant No.2 is tenant under the plaintiff in respect of the schedule property on a monthly rent of Rs.19,144/- per month exclusive of water and electricity charges. The defendants are carrying on the business under the name and style 'ARR Precision Works Pvt. Ltd.' manufacturing press tools, lamination tools, plastic moulds etc., by utilizing 20 + 20 HP sanctioned power standing in the name of the plaintiff.
9. The plaintiff further contends that defendants used to deposit the monthly rent after deducting TDS to the account of the plaintiff and they are defaulters in payment of rent. Hence the plaintiff got issued legal notice to the defendants on 06/02/2016 calling upon both the defendants to pay the monthly rent of Rs.17,230/- after deducting the TDS from April 2015 till 12 O.S.No.6728/2016 December 2015 and also January 2016, intimating them to pay service taxes and also quit, vacate and handover the vacant possession of the schedule property to the plaintiff on 01/09/2016 as the said 6 months period would expire on 31/08/2016 and also called them to pay arrears of rent and also mesne profit at the rate of Rs.35,000/- per month commencing from 01/09/2016, if the defendants failed to quit, vacate and handover vacant possession of the schedule property to the plaintiff. The notice was served upon the defendants. But the defendants have failed to pay the arrears of rent and quit and vacate the schedule property. Hence the plaintiff has filed the suit for recovery of arrears of rent, TDS amount, as the defendants have failed to upload the said TDS amount deducted by them in the monthly rent to the Income Tax department, for mesne profit and possession of the schedule property.
10. The plaintiff herself examined as P.W.1 and has reiterated the plaint averments. The plaintiff has produced the certified copy of the sale deed at Ex.P.3 which reveals that plaintiff has purchased the suit property on 26/02/1992 and tax 13 O.S.No.6728/2016 paid receipt for the year 2015-2016. The sale deed reveals that the plaintiff is owner of the suit schedule property.
11. The plaintiff has produced the bank statement, which is marked at Ex.P.2 to show that defendants have deposited the rent in the bank account of the plaintiff. This reveals that the defendants are tenants under plaintiff. The plaintiff has also produced legal notice issued against the defendants and the same is marked at Ex.P.1 and the said notice is duly served on the defendants, as the defendant No.2 endorsed on the said notice, which is marked at Ex.P.1(a). In the said notice the plaintiff has demanded the defendants to pay arrears of rent and also quit, vacate and handover the possession of schedule premises to the plaintiff. The defendants have not replied to the said notice. The evidence of P.W.1 remained unchallenged. Hence there is no any reasons to disbelieve the evidence of P.W.1. Hence the plaintiff has proved and established that she is owner of the suit schedule property, defendants are tenants under her and she is entitled for arrears of rent and possession of the schedule property. The plaintiff is also entitled 14 O.S.No.6728/2016 to mesne profits at the rate of Rs.19,144/- per month from 01/09/2016 till delivery of possession of the suit schedule premises. Hence I answer the point No.1 in the 'affirmative'.
12. Point No. 2:- For the reasons discussed above and in view of findings given on the above point, I proceed to pass the following:-
ORDER The suit of the plaintiff is hereby decreed. The defendants are directed to quit, vacate and handover vacant possession of the schedule property to the plaintiff within 3 months from the date of this judgment.
The defendants are jointly and severally liable to pay an amount of Rs.92,693/-, being arrears of rent, TDS and interest on security deposit to the plaintiff.
The defendants are directed to pay Rs.19,144/- per month from 01/09/2016 till delivery of vacant possession of the schedule property to the plaintiff. 15 O.S.No.6728/2016
No order as to costs.
(Dictated to the Stenographer, computerized by her, corrected and then pronounced by me in Open Court on this the 16th day of December, 2017.) (V.H. WADAR) XLIII ADDL. CITY CIVIL & SESSIONS JUDGE, BENGALURU.
ANNEXURE List of witness examined for the plaintiff/s:-
P.W.1 : P.Bharathi List of witness examined for the defendant/s:-
NIL List of documents marked for the plaintiff/s:-
Ex.P.1 : Legal notice Ex.P.1(a) : Endorsement of defendant No.2 Ex.P.2 : Bank statement Ex.P.3 : Certified copy of sale deed Ex.P.4 : Tax paid receipt 16 O.S.No.6728/2016 List of documents marked for the defendant/s:-
NIL (V.H. WADAR) XLIII ADDL. CITY CIVIL & SESSIONS JUDGE, BENGALURU.