RAM CHARAN AGGARWAL (DECEASED) THROUGH LEGAL HEIR vs PREM LATA & ANR.
$~18
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment Pronounced on: 03.01.2024
+ RC.REV. 36/2022 & CM APPL.12426/2022, CM APPL. 26358/2022 and 38327/2022
RAM CHARAN AGGARWAL (DECEASED) THROUGH LEGAL HEIR ….. Petitioner
versus
PREM LATA & ANR. ….. Respondent
Advocates who appeared in this case:
For the Petitioner : Mr. Siddhant Nath, Adv. with Mr. Ram Bhakt Agrawal, LR of the Petitioner in-person.
For the Respondent : Mr. P.S. Bindra, Sr. Adv. with Mr. Amit Gupta and Mr. Shiv Verma, Advs. with Respondent No. 2 in- person.
CORAM:
HON’BLE MS JUSTICE TARA VITASTA GANJU
[Physical Court Hearing/ Hybrid Hearing]
JUDGMENT
TARA VITASTA GANJU, J.:
CM APPL.26358/2022[Application seeking payment of use and occupation charges]
1. This is an Application filed on behalf of the Respondent/landlord seeking directions to the Petitioner/tenant to pay the use and occupation charges for the premises at 1375, Gali Lehswan, Chandni Chowk, Delhi-110006 [hereinafter referred to as demised Premises].
2. Notice in this Application was issued on 31.05.2022 and, subsequently, on 01.09.2022, the Petitioner/tenant was granted time to file his Reply. No effective hearing took place for almost a year till 02.08.2023. On 02.08.2023, the parties also sought time to file documents in support of this Application and on 06.12.2023, this Court passed the following directions:
1. Learned Counsel for the Respondents/landlord has handed over a brief note as was directed by this Court by its order dated 02.08.2023. A hard copy of the same has been handed over to the learned Counsel for the Petitioner/tenant.
2. In brief, it is contended by the learned Counsel for the Respondents/landlord that the use and occupation charges are not being paid by the Petitioner/tenant. It is contended that a sum of Rs. 3.65 lakhs per month is applicable as market rent/use and occupation charges to be paid during the pendency of the present Petition in terms of the judgment of the Supreme Court in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd. reported as (2005) 1 SCC 705.
2.1 Interim protection was granted to the Petitioner/tenant on 11.03.2022.
3. It is further contended by the learned Counsel for the Respondents/landlord that the Petitioner/tenant has in Rejoinder to the present Application admitted to a rental in the sum of Rs. 75/- per sq. ft. per month for like premises in the vicinity of the demised Premises and even based on that figure, the rental would be in the range of Rs. 2 lakhs per month approximately to be paid after the passing of the Impugned Order.
4. Learned Counsel for the Petitioner/tenant seeks an accommodation to obtain instructions in this regard
..
3. Both parties have since filed their written submissions/short notes on their respective contentions on user charges. Consequently, the judgment in the Application was reserved on 18.12.2023.
4. The Supreme Court in a Judgment titled Martin and Harris Private Limited and Another v. Rajendra Mehta and Others1, has upheld the law laid down by the Supreme Court in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd.2 that once an Eviction Order has been passed, the tenant is required to pay the use and occupation charges at market rate of like premises in the vicinity of demised Premises till the final disposal of the Petition. It has been held that the direction to pay mesne profits or use and occupation charges will depend on the facts and circumstances of each case including on location of the property whether it is in a village, city, or metropolitan area as well as its nature whether it is a commercial or residential area and the standard rate of rent serving as guiding factors in the facts of each case.
5. Learned Counsel for the parties have filed one lease deed each, of properties which are located in the vicinity of the demised Premises.
6. The Respondent/landlord has submitted that the demised Premises is a commercial property/shop on the ground floor in Chandni Chowk, Delhi and close to the Chandni Chowk Metro Station. The lane in front of the property has an extremely high footfall as it is next to the famous eateries including Natraj Bhalla Corner of Chandni Chowk, Delhi. It is further contended that the area of the demised Premises is approximately 250 sq. mtrs./2700 sq. ft.
6.1 The Respondent/landlord has filed a lease deed dated 08.03.2021. The details are set forth below:
Nature
Ground floor
Use
Commercial
Area
20.53 sq. mtrs.
Rent
Rs. 30,000 /- (per month)
Description/details
Shop Bearing Pvt. No.106, on Ground Floor without its roof /Terrace Rights, situated at Moti Bazar, Chandni Chowk, Delhi -110006.
6.2 Relying on this lease deed, it is submitted by the learned Senior Counsel for the Respondent/landlord that the rental for the area of approximately 20 sq. mtrs. is Rs. 30,000/- per month two years ago totalling to Rs. 1461 per sq. mtr. per month (approx.) . Thus, the demised Premises which is 250 sq. mtrs./2700 sq. ft. would fetch a rental of Rs. 3,65,319/- per month [Rs. 1461 X 250sq. mtrs.].
6.3 It is further submitted that the demised Premises is being used by various persons for their businesses including business in the name of Vardhman Suit Collection and Shri Arham Textiles.
6.4 Lastly, learned Counsel for the Respondent/landlord has further contended that the Petitioner/tenant in its Reply to CM APPL.26358/2022 admitted that the rental of Rs. 75/- per sq. ft. per month is applicable in the said area and even based on the Petitioner/tenants calculations, the rental would be Rs. 2,02,500/- [75 X 2700 sq. ft.]. Thus, a rental of Rs. 2 lakhs per month should be paid.
7. Learned Counsel for the Petitioner/tenant, on the other hand, has relied on a lease deed dated 06.09.2022 with the following details:
Nature
Ground floor
Use
Commercial
Area
11.2 sq. metres (120 sq. ft.)
Rent
Rs. 9,000/-(per month)
Description/Details
1124, Chandni Chowk, Delhi-·110006, Ground floor.
7.1 Relying on a leased deed annexed along with Reply to CM APPL.26358/2022, it is contended that the area of the demised Premises is to be taken as 1600 sq. ft. and not 2700 sq. ft. It is contended that although, the ground floor of the demised Premises measures about 250 sq. metres, however, 55-60 sq. metres, is open to the sky and unusable as shop area. Out of the remaining 185-190 sq. metres, 30 sq. metres are passage, toilet and service areas for electricity and inverter and fire equipments etc. Thus, it is contended that the usable floor area is 155-160 metres only or 1600 sq. ft. approximately. It is thus, averred that the rental of the demised Premises should be Rs.1.2 lakhs per month [Rs. 75 per sq. ft. X 1600 sq. ft.].
7.2 It is further contended by the Petitioner/tenant that the lease deed relied upon by the Respondent/landlord cannot be taken into consideration as the lease deed relied upon by the Respondent/landlord is for a newer premises at a better location while the demised Premises is in a side lane/Gully and not on the main Chandni Chowk road.
7.3 The Petitioner/tenant has also filed the photographs of the demised Premises which show that the demised Premises is in a dilapidated condition, however, these photographs are admittedly of the year 2001. The Petitioner/tenant has further contended that the Petitioner had to spend millions to renovate the suit premises and make it habitable and usable as a commercial property.
8. The demised Premises is admittedly a premises on the ground floor in Chandni Chowk area, at Gully Lehswan, admeasuring 250 sq. mtrs./2700 sq. ft. It is being used for commercial purposes and the Petitioner/tenant is stated to be in the business of goods related to bridal fashion from these premises.
8.1 While the Respondent/landlord submits that the rental is about Rs.1461/- per sq ft. per month, the Petitioner/tenant has admitted it to being approx. Rs. 75 per sq. ft. per month. The Petitioner/tenant has also attempted to discount the user by submitted that the price of open area is to be discounted as parts of the area is common space, open verandah, etc. However, it is not disputed that the entire area of 250 sq. mtrs./2700 sq. ft. is in the use and occupation of the Petitioner/tenant. Since the demised Premises is not on a main road but on an inner road/ gully, the use and occupation charges need to be discounted.
9. In these circumstances, without prejudice to the rights and contentions of the parties, the directions as set forth below are passed.
9.1 The Petitioner/tenant shall pay to the Respondent/landlord use and occupation charges in the following manner during the pendency of the Revision Petition:
(i) The use and occupation charges for the period from 16.03.2022 to 31.12.2023 shall be paid by the Petitioner/tenant at the rate of Rs.1,50,000/- per month;
(ii) The use and occupation charges from 01.01.2024 onwards, shall be paid by the Petitioner/tenant at the rate of Rs. 1,60,000/- per month;
(iii) The use and occupation charges as set forth in paragraphs 10.1(i) shall be paid by the Petitioner/tenant to the Respondent/landlord in four equal instalments, i.e., 31.01.2024, 31.03.2024, 31.05.2024 and 31.07.2024.
(iv) The payment of use and occupation charges for the month of January, 2024, shall be paid by the Petitioner/tenant on or before 15.01.2024;
(v) The payment of use and occupation charges from February, 2024 onwards shall be paid on or before 7th day of each calendar month.
10. All payments shall be made into the bank account of the Respondent/landlord. The details of the bank account shall be provided by the learned Counsel for the Respondent/landlord to the learned Counsel for the Petitioner/tenant on his email address within three days.
11. It is clarified that the use and occupation charges as affixed hereinabove are tentative and subject to the final outcome of the present Petition.
12. Needless to add, in the event that there is any default in the payment of use and occupation charges on behalf of the Petitioner/tenant, interim protection as granted by this Court on 11.03.2022 shall automatically stand dissolved.
13. The Application is accordingly closed.
14. Parties will act based on the digitally signed copy of the judgment.
RC.REV. 36/2022 & CM APPL.12426/2022 & CM APPL. 38327/2022
15. List before the Roster Bench on 10.01.2024.
TARA VITASTA GANJU, J
JANUARY 03, 2024/SA
1 (2022) 8 SCC 527
2 2005) 1 SCC 705
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RC.REV. 36/2022 Page 8 of 8