M/S ITH HYDROLICS PVT LTD v. M/S PRABHDIT ASSOCIATES PVT LTD

1. The matter is fixed for affixation of use and occupation charges.

2. The order dated 07.11.2023 shows that the learned Counsel for the Petitioner/tenant has contended the following:

3. Learned Counsel for the Petitioner/tenant seeks to rely upon a lease deed dated 02.09.2019 wherein the rental for the premises at first floor and second floor of Property bearing municipal no 1281 situated at main road, Kashmere Gate, Delhi-110006 is Rs. 2,72,250/- for the period of 2023-24 for 182.83 sq. mtrs (1967.96 sq.ft) for each floor which totals 365.66 sq mts. (Rs. 744.[5] per sq. mtr.) It is contended that based on this deed, the monthly rent for the demised premises will be about Rs. 6600/- (approx). 3.[1] Learned Counsel for the Petitioner/tenant further submits that the said premises is on the main road and the demised Premises is on an inner road, hence, the rental for the demised Premises would be less.

4. Learned Counsel for the Respondent/landlord, on the other hand after examining the document filed by the Petitioner/tenant, submits that the lease deed relied upon by the Petitioner/tenant is for a premises situated on the first floor and second floor while and the demised Premises is on the ground floor. 4.[1] Further, it is reiterated that the demised premises is in a wholesale market for motor parts and the Petitioner/tenant is using the demised premises for commercial purposes. He accordingly, submits that the rental for the demised Premises will be higher and in the range of Rs. 30,000/- per month.

5. The size of the demised Premises, admeasures 8.91 sq. mtrs. approximately, and it is a shop on the ground floor situated in an automobile parts and accessories wholesale market. Admittedly, the Petitioner/tenant is utilising the demised Premises for commercial purpose. 5.[1] The Petitioner/tenant has relied on a lease deed dated 02.09.2019 where, the rent for the property situated on the first and second floor was approximately Rs 744.[5] per sq. mtr. The details of this Lease deed filed are below: (i). Lease deed dated 02.09.2019 Nature Commercial Use Motor sales Area 365.66 sq mts. Rent Rs. 2,72,250/- per month (Rs. 744.[5] per sq mt.) Description/Details 1371, Ground Floor, Kashmere Gate, Delhi-110006 5.[2] The lease deed filed by the Respondent/landlord shows a rental of Rs 4921 per sq.mtr. or Rs. 43,855.66/- per month. The Respondents/landlord has annexed lease deeds details of which are reproduced below: (i). Lease Deed dated 16.02.2018 Use Canara Bank Area 2586.38 sq. fts. (240.[2] sq mts) Rent Rs. 3,70,592/- per month (Rs 1542.[8] per sq mtr) Description/Details 1371, Ground Floor, Kashmere Gate, Delhi-110006 (ii). Lease Deed dated 27.11.2018 Use Kotak Mahindra Bank Area 1250 Sq.ft (116.[1] sq mts) Rent Rs 2,64,500 per month (Rs 2278.2per sq mtr) Description/Details Shop No.2694 & 2695 Part of Prop No.790/5 Ward No.I Lothian Road Kashmere Gate, Delhi (iii). Lease Deed dated 15.06.2022 Nature Residential Use Not mentioned Area 9.30 sq mtrs. (100.[1] sq ft.) Rent Rs 40,000 per month (Rs 4301.07 per sq mtr) Description/Details Shop no. 7 in Municipal No. 1/2784 Krishna Motor Market, Lothian Road, Kashmere Gate, Delhi. (iv). Lease Deed dated 04.07.2022 (v). Lease Deed dated 09.12.2022 5.[3] From an analysis of the Lease deeds, it seems apparent that the market rental in the vicinity of the demised premises, for the commercial purposes [not being banks] would be atleast Rs. 750/- to Rs. 13,500/- per sq. mtr. as per the Lease Deeds filed by the parties. The Lease deed filed by the Petitioner/tenant is however for the first & second floor, the rental of the first floor is always lesser than the rental on the Ground Floor. The Learned Counsel for the Respondent/Landlord has however contended that the rental would be atleast Rs. 30,000/- per month for the demised premises.

6. The record shows that the matter has been adjourned on three Area 3.72 sq mtrs (40.04 sq ft.) Rent Rs 50,000 per month (Rs 13,440.86 per sq mtr) Description/Details Shop Pvt no. 22 part of Prop no.2782/3 and 2762 Lothian Road, Kashmere Gate Delhi-110006 Area 15.55 sq mtrs Rent Rs 50,000 per month (Rs 3215.43 per sq mtr) Description/Details Shop no. 2648 ground floor ward no. 1 Ram Lal Chandhok Marg (opp. Minerva cinema) Kashmere Gate, Delhi-110006 occasions, i.e., 30.10.2023, 07.11.2023 and 20.11.2023 at the request of the Petitioner/tenant. On two dates, i.e., 07.11.2023 and 20.11.2023, this Court had adjudicated use and occupation charges in the matter, however, at the request of the learned Counsel for the Petitioner/tenant, the matter was adjourned. 6.[1] In response to a query posed to the learned Counsel for the Petitioner/tenant today by this Court, regarding their ability to pay market rent, learned Counsel for the Petitioner/tenant, on instructions from the authorised signatory of the Petitioner, who is present in Court, once again submits that, the Petitioner/tenant is unable to pay use and occupation charges beyond Rs. 5,000 per month.

7. The Supreme Court in a Judgment titled Martin and Harris Private Limited and Another v. Rajendra Mehta and Others reported as (2022) 8 SCC 527, has upheld the law laid down in Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd. reported as (2005) 1 SCC 705 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 till the final disposal of the Petition. It has been held however that, the direction to pay mesne profits or compensation 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.

8. Accordingly, without prejudice to the rights and contentions of the parties, the use and occupation charges shall be paid by the Petitioner/tenant to the Respondent/landlord as below:

(i) The use and occupation charges for the period from 15.09.2019 to

(ii) The use and occupation charges for the period from 01.04.2020 to

(iii) The use and occupation charges for the period from 01.04.2022 to

(iv) The use and occupation charges from 01.12.2023 onwards, shall be paid by the Petitioner/tenant at the rate of Rs.20,000/- per month;