M/S. Ashoka Promoters (P) Ltd. vs Captain Virender And Anr.

Citation : 2012 Latest Caselaw 6832 Del
Judgement Date : 29 November, 2012

Delhi High Court
M/S. Ashoka Promoters (P) Ltd. vs Captain Virender And Anr. on 29 November, 2012
Author: Valmiki J. Mehta
*              IN THE HIGH COURT OF DELHI AT NEW DELHI

+                           CS(OS) No.1611/2000

%                                                        November 29, 2012

         M/S. ASHOKA PROMOTERS (P) LTD.          ...... Plaintiff
                       Through: Mr. S.N.Gupta with
                                Mr. D.P.Gupta, Advs.



                            VERSUS

         CAPTAIN VIRENDER AND ANR.              ...... Defendants
                      Through: Mr. Baldev Malik with
                               Mr. Arjun Malik, Advs.

CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA

    To be referred to the Reporter or not?


VALMIKI J. MEHTA, J (ORAL)

1.

The subject suit has been filed by the plaintiff/landlord for recovery of mesne profits against the defendants, and essentially against the defendant no.3 which is the Union of India through the Excise Department. It is not disputed that defendant no.3 was the tenant and liability will be of it to pay under the decree. The suit property is G-80, Preet Vihar, Delhi comprising of basement, ground floor, mezzanine floor, first floor, second floor and third floor totalling 14,010 sq.ft. It is undisputed before me that I CS(OS) No.1611/2000 Page 1 of 7 have to calculate the mesne profits from 1.5.1997 to 11.11.2004 with respect to the suit premises.

2. The following issues were framed on 13.5.2010:-

"(1) Whether the plaintiff is entitled to damages for the period from 01.5.1997 to 31.10.1999 @ `4,50,000/- and 01.11.1999 to 11.11.2004 @ `7,00,000/-, if so to what effect? OPP (2) Relief."

3. On behalf of the plaintiff evidence has been led to prove the rate of rent of similar premises in the area in terms of the lease deeds Ex.PW1/10 to Ex.PW1/12. On behalf of the defendants, lease deeds filed have not been exhibited and proved, however, counsel for the plaintiff agrees that the said lease deeds filed on behalf of the defendants can be looked into.

4. A reading of the lease deeds filed on behalf of the plaintiff brings out the following position:-

i) Ex.PW1/10 is a lease deed for the property bearing No.G-83, Preet Vihar, Delhi with respect to the ground floor premises where the rate of rent was fixed by the lease deed dated 17.8.2001 at Rs.1,60,000/- for an area of 2,700 sq.ft. per month (translating to Rs.59.20 per sq. ft. Per month).
CS(OS) No.1611/2000 Page 2 of 7
ii) The lease deed, Ex.PW1/11 is with respect to the ground floor of the property bearing no.C-61, Preet Vihar, Delhi and the rate of rent fixed by this lease deed dated 22.10.2001 is Rs.1,20,000/- w.e.f. 22.10.2001 for an area of 2,588 sq.ft. per month on the ground floor (translating to Rs.46.36/- per sq.ft. per month).
iii) The lease deed, Ex.PW1/12 dated 23.2.2000 is a lease for the premises bearing no.F-12, Preet Vihar, Delhi for the ground floor portion of 2,600 sq.ft. at a rent of Rs.98,800/- sq.ft. per month (which translates to Rs.38/- per sq.ft. per month).

5. The chart elucidating the necessary details of the various lease deeds proved by the plaintiff is as under:-

Details of plaintiff's lease deed

     S.  Lease Deed     Date     of Property         Rent agreed Area under Rate of
     No.                Lease Deed demised           upon (p.m.)   Lease       rent
     1.  Ex.PW1/10      17.8.2001   G-83,    Preet   Rs.1,60,000/- 2700 sq.ft. 59.20
                                    Vihar, Delhi                               sq.ft.
                                    (Ground
                                    Floor)
     2.     Ex.PW1/11   22.10.2001 C-61,     Preet   Rs.1,20,000/-   2588 sq.ft.   46.36
                                    Vihar, Delhi                                   sq.ft.
                                    (Ground
                                    Floor)
     3.     Ex.PW1/12   23.02.2000 F-21,     Preet   Rs.98,800/-     2600 sq.ft.   38/
                                    Vihar, Delhi                                   sq.ft.
                                    (Ground
                                    Floor)

6. So far as the lease deeds which have been filed on behalf of the CS(OS) No.1611/2000 Page 3 of 7 defendants, the same are as under:-

a) Lease deed dated 14.1.1999 for the ground floor of 9, Rajdhani Enclave, Delhi comprises an area of 2,100 sq.ft. The rate of rent translates to Rs.31/- per sq.ft. per month.
b) Lease deed dated 14.1.1999 for the mezzanine floor above basement and first floor of the same premises being 9, Rajdhani Enclave, Delhi at Rs.58,000/- per month for a total areas of 2590 sq.ft. and which translates to about Rs.22/- of the ground floor portion.
c) Lease deed dated 14.1.1999 for the basement of 9, New Rajdhani Enclave, Delhi at Rs.35,000/- per month for an area of 1,910 sq. ft.

Other lease deeds filed by the defendants are of the subsequent years 2004 and 2005 and hence not relevant.

7. The chart elucidating the necessary details of the various lease deeds filed by the defendants is as under:-

Details of defendants' lease deed

     S.        Date    of Property          Rent        Area    under Rate of
     No.       Lease Deed demised           agreed      lease         rent
                                            upon (p.m.)
     1.        14.1.1999    Ground Floor of 65000       2100sq.ft.    31/sq.ft.
                            9, New Rajdhani
                            Enclave, Delhi-
                            92
CS(OS) No.1611/2000                                                     Page 4 of 7
      2.   14.1.1999   Mezzanine          58000      940 sq.ft. at 22/sq.ft.
                      above basement                basement &
                      and first floor of            1650 sq.ft. at
                      9, New Rajdhani               the first floor.
                      Enclave, Delhi-
                      92
     3.   14.1.1999   Basement of 9, 35000          1910 sq. ft.   18.32
                      New Rajdhani                                 sq.ft.
                      Enclave, Delhi-
                      92



8. There is always involved some amount of reasonable guess works in the exercise of computation of mesne profits inasmuch as rent of exactly similar premises cannot be calculated to the last square feet and to the last rupee. In the facts of the present case there is no lease deed of the year 1996, from when I have to start calculation of mesne profits. Considering all the above documents which have been filed on behalf of both the parties, and considering the fact that the plaintiff itself has prayed for rent from 1996 to 1999 at Rs.32/- per sq.ft. per month and from 1.11.1999 to 30.4.2000 at Rs.50/- per sq.ft. per month, and since the rate of rents proved by the different lease deeds (of course for a different period) varies from Rs.18.32/- per sq.ft.(only for basement) to Rs.60/- per sq.ft (for the ground floor), I am of the opinion that the rate of rent for the purpose of grant of mesne profits should be fixed at Rs.30/- per sq.ft. per month for the leased premises of 14,010 sq.ft. with effect from 1.11.1996. I am fixing this CS(OS) No.1611/2000 Page 5 of 7 rate by factoring in various aspects including the aspects of the lease deeds filed and proved on record being of different years than 1996, the lease deeds being only of the ground floor or basement, since not being of the same neighbourhood and so on. I also note that the suit premises comprise of basement, ground floor, mezzanine, first floor, second floor and third floor.

9. Since the premises were let out for non-residential purposes of an office, in terms of my judgment in the case of M.C. Agrawal (HUF) vs. Sahara India Pvt. Ltd. 183 (2011) DLT 105 I grant 15% cumulative yearly increase every twelve months from 1.5.1998 till the premises were vacated on 11.11.2004.

10. The plaintiff will also be entitled to interest at the rate of 9% per annum simple on the arrears of mesne profits i.e. on the arrears remaining after giving adjustment for any amount which would have been paid by the defendant no.3 to the plaintiff during the relevant period thereafter. Interest on the arrears of mesne profits are granted in terms of the judgment of the Supreme Court in the case of Indian Oil Corporation vs. Saroj Baweja 2005(12)SCC 298.

Relief.

11. In view of the aforesaid discussion, the issues framed are CS(OS) No.1611/2000 Page 6 of 7 decided by holding that the suit of plaintiff will stand decreed against the defendant no.3 for rent at Rs.30/- per sq.ft. per month as on 1.5.1997 for the leased premises comprising of 14,010 sq.ft. situated at G-80, Preet Vihar, Delhi. Plaintiff will be entitled to 15% cumulative increase in the rate of mesne profits after every twelve months i.e. from 1.5.98, 1.5.99 and so on till 11.11.2004. The plaintiff will also be entitled to interest on the arrears of mesne profits at 9% per annum simple from the end of the month from which mesne profits are payable till payment. The defendant No.3 will be entitlement to adjustment for the amount which it has paid to the plaintiff for the period for which mense profits are decreed. Parties are left to bear their own costs. Decree sheet be prepared.

VALMIKI J. MEHTA, J NOVEMBER 29, 2012 ak CS(OS) No.1611/2000 Page 7 of 7