Arun Gupta Vs M/S Swami Hari Sharna Nand Charitable Trust

Tara Vitasta Ganju, J

CM APPL. 39547/2022[Application seeking directions for payment of use and occupation charges]

1. The present Application has been filed on behalf of the Respondent/landlord seeking directions to the Petitioner/tenant to pay use and occupation charges of the premises, i.e., One back hall at Ground Floor and One back Hall at Mezzanine Floor in Property bearing Plot no. 22, Block-E, Darya Ganj, South (Municipal No. 4961) Ward 11, Main Faiz Bazar Road, Netaji Subhash Marg, Darya Ganj, Delhi [hereinafter called “demised premises”] from the date of the Order dated 19.11.2015 [hereinafter called “Eviction Order”] till the present Revision Petition is finally adjudicated by the Court.

1.1 The record shows that the execution of the Eviction Order was stayed by the coordinate bench of this Court on 03.03.2020.

2. This Court had on 08.09.2022, directed the Petitioner/tenant to file a Reply to the present Application. Since no Reply was filed, by Order dated 17.01.2023, this Court had granted a last opportunity to the Petitioner/tenant to file a Reply within three weeks.

2.1  The matter was listed for the affixation of use and occupation charges qua the demised Premises on 19.05.2023. Since, the time for filing a Reply had expired on 08.02.2023 and no Reply had been filed till date, the Petitioner/tenant’s right to file a Reply to the Application was closed on 19.05.2023.

3. Mr. Narayan Krishan, learned Counsel who appears on behalf of the Respondent/landlord, submits that the Petitioner/tenant is in occupation of the demised premises for more than the last 20 years.

3.1 Mr. Krishan, further submits that Petitioner/tenant has obtained the interim protection by this Court on 03.03.2020 and since then, no use and occupation charges are being paid by the Petitioner/tenant.

3.2 It was submitted by the Respondent/landlord that in terms of the decision of the Supreme Court in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd. (2005) 1 SCC 705, once the Eviction Order has been passed, the tenant is required to pay the use and occupation charges at market rate till the final disposal of the present Petition.

3.3 Mr. Krishan submits that the true copies of the registered lease deed of “like premises” have been filed along with CM Appl. 44832/2022 in the present matter.

4. I have heard the learned Counsel and have perused the record.

5. The law as laid down by the Supreme Court in Atma Ram Properties(P) Ltd. vs. Federal Motors (P) Ltd. (supra) has been re-affirmed by the Supreme Court in Martin and Harris Private Limited and Another v. Rajendra Mehta and Others (2022) 8 SCC 527, where it has been held that the direction to pay mesne profits or compensation will depend on the facts and circumstances of each case, including on the 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.

6. An analysis of the information given by the Respondent/landlord qua the lease agreement for similarly situated premises can be conveniently set forth in terms of the tables below:

6.1 Lease Deeds placed by the Respondent/landlord on record:

6.2 No Sample Lease Deeds have been placed by the Petitioner/tenant on record.

6.3 For the purpose of comparison, the demised Premises can be described in the following manner:

7. From a review of the lease deeds as filed by the Respondent/landlord, it can be seen that the shops which are on commercial streets, the rents are in range from approximately Rs. 192/- sq. ft. to Rs. 291/- per sq. ft. depending on various factors such as location, condition of the premises, amenities available etc.

7.1  Admittedly, the tenancy is almost 20 years old. However, the location of the demised premises is in a prime commercial area and the fact that the Petitioner/tenant is using the demised premises for a commercial purposes in as much as he is running a Health Club under the name of “M/s. Shiv Gym Health Club” makes the demised premises a valuable one. In these circumstances, the interim use and occupation charges are being fixed at Rs.1,50,000/- per month by this Court from June, 2023 onwards.

8.2 However, the interim user charges for the period from six months pursuant to the Eviction Order till 31.05.2023, the user charges shall be paid at the rate of Rs. 25,000/- per month.

9. Without prejudice to the rights and contentions of the parties, 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 arrears of rental payment, if any, up to the date of passing of the Eviction Order shall be paid to the Respondent/landlord prior to the next date of hearing;

(ii) Use and occupation charges from 19.05.2016 to 31.05.2023 shall be paid at the rate of Rs. 25,000/- per month. These arrears shall be paid in four equal instalments on 31.08.2023; 30.11.2023; 29.02.2024 and 31.05.2024;

(iii) Use and occupation charges from June 2023 onwards shall be paid to the Respondent/landlord at the rate of Rs. 1,50,000/- per month, on or before 7th day of each Calendar month during the pendency of the Revision Petition; and

(iv) The charges for June, 2023 shall be paid latest by 30.06.2023.

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 one week.

10.1 It is clarified that the use and occupation charges as affixed hereinabove are tentative and subject to the final outcome of the present petition.

11. CM APPL. 39547/2022 is accordingly, disposed of.

12. All rights and contentions of both the parties in the main Revision Petition are kept open.

RC.REV. 123/2020 & CM APPL. 8569/2020[Application seeking interim relief]

13. Subject to the deposit of the arrears of rent and the use and occupation charges as aforesaid, the Interim Order dated 03.03.2020 shall continue till the pendency of the present Revision Petition.

13.1 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 shall automatically stand dissolved.

14. Parties will act based on the digitally signed copy of the order.

15. List the matter on 23.11.2023.