Indian Kanoon - Search engine for Indian Law

CM APPL. 10848/2020

1. This is an application for exemption from filing the duly affirmed affidavit and the requisite court fee. With an undertaking to deposit the court fee within 72 hours from the date of resumption of regular functioning of this Court, exemption is allowed, subject to all just exceptions. Undertaking filed by the Appellants is accepted.

2. Application is disposed of.

Brief Facts

3. The urgent application under consideration, raises various issues relating to suspension of payment of rent by tenants owing to the COVID-19 lockdown crisis and the legal questions surrounding the same. The COVID- 19 pandemic has had large-scale implications for human life. Contractual relationships and jural relationships between parties are severely affected due to the lockdown. The question as to whether the lockdown would entitle tenants to claim waiver or exemption from payment of rent or suspension of rent, is bound to arise in thousands of cases across the country. Though there can be no standard rule that can be prescribed to address these cases, some broad parameters can be kept under consideration, in order to determine the manner in which the issues that arise can be resolved. Background facts

17. Needless to state that the aforesaid payments are subject to the final adjudication of this petition and are repatriable in the event of the petitioners succeeding in this petition.

18. CM No.35119/2017 is disposed of.

19. List on 29th November, 2017."

The petition has thereafter remained pending for hearing.

6. Following the outbreak of COVID-19, an application for suspension of rent has now been moved, during the lockdown period. The stand of the Tenants is that due to the lockdown, there has been complete disruption of all business activities, including the business of the Tenants. It is pleaded that the circumstances are force majeure and beyond the control of the Tenants. Thus, it is claimed that the Tenants are entitled to waiver of the monthly payment directed vide order dated 25th September, 2017, or at least some partial relief in terms of suspension, postponement or part-payment of the said amount.

Submissions of parties

7. Mr. Rajiv Talwar, ld. counsel for the Tenants, submits that he has moved the present application by way of abundant caution as, vide the interim order dated 25th September, 2017 this Court had directed that any default in payment would lead to execution of the eviction decree. Ld. counsel submits that his clients are willing to make part-payment of the monthly amount. Alternatively, he prays that the rent be suspended for at least one month. He submits that since there has been no business during the lockdown period, his clients are entitled to some form of remission.

9. On behalf of the Tenants, it is submitted that some rebate may be given only for the period of the lockdown and that otherwise the Tenants are willing to regularly make the monthly payments.

Analysis and Findings

10. This Court has considered the submissions of the parties. The relationship between a Landlord and Tenant, a Lessor and Lessee and a Licensor and Licensee can be in multifarious forms. These relations are primarily governed either by contracts or by law. In the realm of contracts, the respective rights and obligations of the parties would be determined by the terms and conditions of the contract itself.