DELHI HINDUSTANI MERCANTILE ASSOCIATION v. DHARAMVIR JAIN & ANR

1. This is an Application filed on behalf of the Respondents/landlords seeking directions to the Petitioner/tenant to pay use and occupation charges. Notice in this Application was issued on 28.10.2024 when the Court had directed the Petitioner/tenant to file Reply within three weeks. 1.[1] The parties were also directed to file lease deeds/documents and photographs in support of their respective contentions qua use and occupation charges. The Petitioner/tenant has neither filed any reply nor any documents.

2. Learned Counsel for the Respondents/landlords submit that the subject premises is a hall on the second floor, admeasuring approximately 715 sq. ft./79 sq. yds. in property bearing No.1213, Eastern Side, Main Chandni Chowk, Delhi-110006 [hereinafter referred to as “subject premises”]. He further submits that the subject premises is on the main road in the Chandni Chowk, New Delhi. 2.[1] Learned Counsel for the Respondents/landlords submits that rental for the similar premises in this area is ranging between Rs. 2 to 3 lakhs. He seeks to rely upon two registered lease deeds which are in vicinity of the subject premises. The details of the lease deeds are given below:

(i) Lease deed dated 04.10.2023

Nature Upper Ground Floor/first floor Area 22 sq. yds. Rent Rs. 1,50,000/- Description/Details Part of Shop M.C. No. 1387, Chandni Chowk, Delhi-110006

(ii) Lease deed dated 27.07.2022

Nature Ground Floor Area 38 sq. yds. Rent Rs. 2,20,500/- Description/Details Shop bearing MPL No. 1400 Main Road Chandni Chowk, Delhi-110006 2.[2] Learned Counsel for the Respondents/landlords submits that lease deed dated 04.10.2023 which is for the first floor is 1/3rd in size of the subject premises. He submits that the condition of the subject premises is good. It is thus, the contended that the rental for the subject premises should be in the range of Rs. 3 lakhs per month.

3. Learned Counsel for the Petitioner/tenant disputes the contentions of the Respondents/landlords and submits that the subject premises is in a dilapidated condition. Learned Counsel for the Petitioner/tenant further submits the subject premises are being used for the office of a registered association. He further submits that the subject premises would not fetch a rent of more than Rs.15,000/- per month. However, no record in support of these contentions has been placed on record by the learned Counsel for the Petitioner/tenant.

4. This Court has thus examined the lease deeds that have been placed on record by the Respondents/landlords. It is not disputed that the subject premises are in the commercial hub in the Chandni Chowk area. It is also not disputed that the subject premises are being used by the Petitioner/tenant for the purpose of an office of a registered trader’s association. The subject premises is on the second floor, thus the rental value is to be substantially lesser than as compared to the premises on ground floor. However, the area of the premises is larger, almost double in size than the lease deeds filed.

5. The subject premises admeasures approximately 79 sq. yds. and the rentals in the area are high, however given that the premises are on the second floor, the rental would need to be discounted as such. Relying on the lease deeds filed and given the fact that the condition of the subject premises as stated by the learned Counsel, it is deemed apposite to fix user charges at the rate of Rs.1,00,000/- per month for the present period.

6. Accordingly, without prejudice to the rights and contentions of the parties, the following directions are passed:

(i) The use and occupation charges for the period from 06.10.2018 to

(ii) The use and occupation charges from 01.04.2020 to 31.03.2022, shall be paid by the Petitioner/tenant at the rate of Rs.85,000/- per month;

(iii) The use and occupation charges from 01.04.2022 to 30.11.2024, shall be paid by the Petitioner/tenant at the rate of Rs.1,00,000/- per month;

(iv) The user and occupation charges from 01.12.2024 onwards, shall be paid by the Petitioner at the rate of Rs.1,00,000/- per month, on or before 7th day of each calendar month;

(v) The use and occupation charges as set out in (i) to (iii) above shall be paid by the Petitioner/tenant with the Registry of this Court in three equal instalments, i.e., 31.12.2024, 15.02.2025 and 31.03.2025. The charges for the month of December 2024 shall be paid on or before 10.12.2024.