2013 (12) TMI 1720 - HC - Indian Laws

Summary

Issues Involved:
1. Determination of rent payable.
2. Termination of tenancy.
3. Entitlement to possession.
4. Entitlement to use and occupation charges.
5. Alleged concealment of material facts.
6. Relief.

Summary:

1. Determination of Rent Payable:
The primary issue was whether the rent of the premises was Rs. 60,000/- per month or Rs. 40,000/- per month as per the registered lease deeds. The Trial Court had held the rent to be Rs. 60,000/- per month based on three lease deeds, two registered and one unregistered. However, the High Court found this to be incorrect, stating that the terms of a registered lease deed cannot be varied by an unregistered document. The unregistered lease deed was inadmissible as evidence due to non-registration, and thus, the rent was determined to be Rs. 40,000/- per month as per the registered lease deeds.

2. Termination of Tenancy:
The respondents/plaintiffs had terminated the tenancy via notice dated 08.01.2007, effective from 28.02.2007. The appellants/defendants did not respond to this notice, making their possession unauthorized from 01.03.2007.

3. Entitlement to Possession:
The Trial Court had passed a decree of ejectment on 03.09.2008, which was complied with, and possession was delivered on 13.02.2009. The High Court upheld this decree.

4. Entitlement to Use and Occupation Charges:
The Trial Court had awarded mesne profits/damages at Rs. 6,000/- per day from 01.07.2008 till 13.02.2009 based on a clause in the lease deeds. The High Court found this erroneous, citing the absence of evidence for mesne profits and the principle that penalty clauses cannot be enforced without proof of actual loss. Thus, the High Court awarded mesne profits at the rate of Rs. 40,000/- per month from 01.12.2006 to 13.02.2009.

5. Alleged Concealment of Material Facts:
The Trial Court found no concealment of material facts by the respondents/plaintiffs, and the High Court did not overturn this finding.

6. Relief:
The High Court set aside the Trial Court's judgment and substituted it with a decree for recovery of arrears of rent/mesne profits at Rs. 40,000/- per month from 01.12.2006 to 13.02.2009, with interest at 9% per annum from 13.02.2009 till payment. The matter was remanded to the Registrar General for determination of the amounts paid by the appellants/defendants and the amounts due to the respondents/plaintiffs. The deposited amount of Rs. 15,00,000/- was to be adjusted accordingly.