Friday, 01, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Metal Box India Ltd. vs T.K. Sehgal & Sons (Huf) & Ors.
2016 Latest Caselaw 4019 Del

Citation : 2016 Latest Caselaw 4019 Del
Judgement Date : 26 May, 2016

Delhi High Court
Metal Box India Ltd. vs T.K. Sehgal & Sons (Huf) & Ors. on 26 May, 2016
*                 HIGH COURT OF DELHI AT NEW DELHI

+      RFA 97/2012
                                       Pronounced on: 26th May, 2016

       METAL BOX INDIA LTD.                 ..... Appellant
               Through: Mr. Amit Sibal, Senior Advocate with
                         Mr. Jugal Wadhwa, Adv
                         Ms. Malvika Trivedi,Adv. ,
                         Mr. Ghanshyam Joshi, Adv. &
                         Mr. Chirag Joshi, Adv.

                        versus
       T.K. SEHGAL & SONS (HUF) & ORS.      ..... Respondents
                 Through: Mr. H.L. Narula, Adv. with
                           Mr. Bhupesh Narula, Adv.

+      CM(M) 439/2013

       METAL BOX INDIA LIMITED                     ..... Petitioner
               Through: Mr. Harish Malhotra, Senior Advocate
                           with Mr. Akhil Sibbal, Adv.,
                           Ms. Malivika Trivedi, Adv.,
                           Mr. Jugal Wadhawa, Adv. &
                           Mr. G. Joshi, Adv.
                    versus

       T. K. SEHGAL & SONS (HUF) & ORS.     ..... Respondents
                 Through: Mr. H.L. Narula, Advocate

+      CONT.CAS(C) 434/2013

       METAL BOX INDIA LIMITED                  ..... Petitioner
                    Through: Mr. Navim R. Nath, Advocate with
                             Ms. Malvika Trivedid, Adv. &
                             Mr. G.Kandpal, Adv. &
                             Mr. G. Joshi, Adv.
                    versus




RFA 97/2012 Etc                                       Page 1 of 36
        T K SEHGAL & SONS (HUF) AND ORS ..... Respondents
                     Through: Mr. H.L. Narula, Advocate

+      CONT.CAS(C) 504/2013

       PANKAJ K. SAHGAL                               ..... Petitioner
                     Through:        Ms. Malvika Trivedi, Adv. with
                                     Ms. Malvika Prasad, Adv.
                         versus

       V. KRISHNA & ORS.                               ..... Respondent
                     Through:        Mr. H.L. Narula, Advocate

+      CONT.CAS(C) 452/2014

       SH. PANKAJ K SAHGAL                            ..... Petitioner
                     Through:        Ms. Malvika Trivedi, Adv. with
                                     Mr. G. Kandpal, Adv. &
                                     Ms. Malvika Prasad, Adv.
                     versus
       SH. V KRISHNA & ANR                       ..... Respondents
                     Through:        Mr. H.L. Narula, Advocate

CORAM:
HON'BLE MR. JUSTICE V.K. SHALI

V.K. SHALI, J.

1. These are three contempt petitions, one CM (Main) and one

Regular First Appeal which are being taken up together as the

present order will effect almost all these cases. Arguments were

actually heard only on the application being CM APPL.30021/2015

and other pending applications in the main matter bearing RFA

No.97/2012.

2. Before giving the facts of the present case I am tempted to

reproduce the saying that 'Fool Makes Houses and Wiseman live in

it'. This is the most apt saying in the context of the present batch of

petitions. How it is apt and fitting most appropriately to the facts

of the case will be reflected by the facts of the stance taken by the

parties. It would be pertinent here to reproduce the brief facts of the

case first.

3. One T.K. Sehgal and sons (HUF) through its Karta

Respondent/plaintiff No.1 (herein) filed a suit for possession and

damages against Metal Box India Limited, formerly known as

Metal Box of India Limited, registered office at Allahabad Bank

Building, 2nd Floor, 17, Parliament Street, New Delhi claiming the

possession of the Northern portion of the property No.4, Sardar

Patel Marg, New Delhi, comprising ground floor, first floor and

Barsati floor along with four servant quarters and two garages, etc.

on a monthly rent of Rs.4360/- exclusive of water and electricity

charges. In addition to this, a decree for a sum of Rs.50,000/- by

way of damages for use and occupation was also claimed for the

period from 01.06.1991 to 30.06.1991 as well as future

damages/mesne profits at the aforesaid rate till the actual

possession of the premises is delivered. It was the case of T.K.

Sehgal and Sons and they had let out the aforesaid property to the

appellant/Metal Box on a monthly rent of Rs.4360/- and the

tenancy month was to commence from first of each English

calendar month and to end with the last day of English Calender

month. The respondent/plaintiff had terminated the tenancy of the

appellant/Metal Box vide notice dated 07.04.1991 which was duly

served on them on 13.04.1991 by registered post the tenancy had

been terminated w.e.f. 31.05.1991 and since they failed to vacate

the premises, a suit for possession was filed and damages at the

rate of Rs.50,000/- were claimed.

4. The appellant/Metal Box denied the ownership of T.K. Sehgal and

Sons (HUF). It has taken the plea that the rent was being paid

regularly. It was denied that the rent was Rs.4360/-. It was stated

that the rent of Rs.2760/- with an interest of Rs.1600/- per month

and therefore the jurisdiction of the Civil Court is barred. The

damages @ Rs.50,000/- were also contested.

5. On the basis of the pleadings of the parties, an application under

Order 12 Rule 6 CPC was moved by the Respondent/plaintiff.

Reply to the said application was called for and the learned trial

Court after hearing the arguments passed a decree of eviction on

the basis of admission holding that the rent of the premises was

Rs.4,360/-. Prima facie, from the documents placed on record by

the respondent/plaintiff although the defendant was claiming that

the rent was only 2760/- per month and a sum of Rs.1600/- was

paid on account of interest on the fixed deposit. The notice of

termination was not denied by the appellant and since all the basic

requirements were satisfied in order to sustain a judgment on the

basis of admission, the Court passed a decree.

6. Against this decree, the Appellant/defendant/Metal Box filed RFA

No.97/2012 which came up for hearing for the first time on

28.02.2012 and since there was a caveat filed by the landlord T.K.

Sehgal & Sons (HUF), a copy of the paper book was supplied to

him and the the matter was adjourned to 06.03.2012 on the request

of Mr. Parag Tripathi and Mr. Neeraj Kishan Kaul, learned senior

counsel on 06.03.2012 the matter was again adjourned to

07.03.2012. On 07.03.2012, the following order was passed by the

Court:-

"After arguments were heard in this appeal it is agreed that the appeal can be disposed of by granting time of two years from today to the appellant to vacate the suit premises and the appeal is not being pressed on merits. The appellant agrees to pay a sum of Rs.1,00,000/- per month as mesne profits from the date of the impugned judgment and decree for a period of one year from today to be paid every month and thereafter a sum of Rs.2,00,000/- per month every month for the second year. Any amount already paid for this period by the appellant to the respondents can be adjusted towards payment required to be made of the aforesaid amount of mesne profits. The payment of mense profits is without prejudice to the respective rights and contentions inasmuch as the issue of mense profits is pending disposal before the Trial Court. The appellant will also clear all electricity and water charges payable with respect to the suit premises till the premises are vacated. It is clarified that the period of two years is the outer limit and the appellant can vacate the premises earlier if its wants to. Let the appellant file an undertaking in the aforesaid terms in this Court within a period of two weeks from today. On the appellant filing and complying with the terms of the aforesaid undertaking, execution of the impugned judgment and decree dated 4.2.2012 is stayed for a period of two years from today or earlier till the premises are vacated Appeal is disposed of accordingly.

Sd/-

VALMIKI J. MEHTA, J March 07, 212."

7. In terms of the order dated 07.03.2012 one thing is clear that the

learned Judge would have heard the appeal but for the fact that the

learned two senior counsels appearing for the appellant had prayed

for grant of two years time to vacate the premises and they would

not press their appeal, this relief was granted by the court and the

appeal was disposed of subject to the appellant agreeing to pay a

sum of Rs.1,00,000/- per month as the mesne profits from the date

of order and for a period of one year and thereafter at the rate of

Rs.2,00,000/- per month for the second year. Further an

undertaking was to be filed on behalf of the appellant Metal Box.

8. This undertaking was also filed by one Rohit Kumar Sharma, aged

about 67 years as the constituted attorney of the appellant/ Metal

Box. I am tempted to reproduce the exact language of the

undertaking which reads as under:-

"UNDERTAKING ON BEHALF OF THE APPELLANT"

I, Rohit Kumar Sharma, aged about 67 years, Son of Late J.S. Sharma, working for gain at 4 Scindia House, Ist Floor, Connaught Place, New Delhi-110001, do hereby solemnly affirm and state as follows:

1. That I am the Constituted Attorney of the Appellant Company and am fully conversant with the facts and

circumstances of the case and am competent to depose by way of the present undertaking on behalf of the Appellant.

2. That I am filling the present undertaking on behalf of the Appellant, in compliance of order dated 7.3.2012 passed by this Hon'ble Court in the present appeal.

3. That the Appellant Company undertakes that it shall vacate the suit premises within a period of two years from the date of passing of the aforesaid order disposing of the present appeal viz. on or before 6.3.2014.

4. The Appellant Company also agrees to pay to the Respondent, T.K. Sehgal & Sons (HUF) form the date of the impugned judgment (4.2.2012), every month, till the date of vacation, over the aforesaid period; a sum of Rs.1,00,000/- (Rupees One Lakh only) per month from the date of the impugned judgment viz 4.2.2012, till the period of one year from the date of this Hon'ble Court's Order dated 7.3.2012 i.e. till 6.3.2013 and thereafter from 7.3.2013 till 6.3.2014 a sum of Rs.2,00,000/- (Rupees Two Lakhs only) per month for the second year. The amounts already deposited by the appellant in Tis Hazari Courts in favour of the respondent(s) for the period 4.2.2012 to 31.12.2012 shall be adjusted from the first payment to be made for the period 4.2.2012 to 31.3.2012. As per the Order dated 7.3.2012 passed by this Hon'ble Court, the said payments are without prejudice to the rights and contentions of the Appellant in respect of pending litigation.

5. The appellant also agrees to clear all electricity and water charges payable with respect to the suit premises till the premises are vacated.

Sd/-

DEPONENT VERIFICATION:

Verified by me at New Delhi on this, the 19th day of March 2012 that the contents of the above Undertaking are true and correct to the best of my knowledge and belief. That no part of it is false and nothing material has been concealed therefrom.

Sd/-

DEPONENT"

9. Before the undertaking could be formally accepted, certain

discrepancies were pointed out by the counsel for the Respondent/

landlord because of which the constituted attorney was directed to

appear and get his statement recorded. On 23.08.2012, the

constituted attorney did not appear and a request for adjournment

was made on the ground that counsel will be changed. In the

meantime the appellant/tenant paid mesne profits/damages at the

rate of Rs. One lac for the month of April, 2012 to August, 2012.

Thereafter, the matter kept on adjourning for one reason or the

other on the ground that the stand taken by the appellant/tenant is

that the undertaking is in compliance to the order dated 07.03.2012

while as the counsel for Respondent/landlord has raised certain

objections with regard to the undertaking. As a consequence of this

the appellant filed number of successive applications stating that

the appeal be decided on merits, for stay of eviction, etc. Similarly,

the respondent also filed applications seeking execution of the

decree.

10. I have heard Mr. Amit Sibal, the learned senior counsel for the

appellant and Mr. Narula, the learned counsel for the respondent.

Mr. Sibal has contended that the order dated 07.03.2012 is an order

which is unenforceable on account of the fact that the

appellant/tenant had filed CM No.30021/2015 praying therein that

the appeal be heard and decided finally on merits. It has been

contended that the aforesaid application for decision of the appeal

on merits was filed by the appellant on account of the fact that the

respondent/plaintiff had raised objections to the undertaking having

been filed on behalf of the appellant. Further, the purported

compromise which was made as a base for deciding the appeal was

not a compromise which was enforceable in law. In order to

supplement this argument, Mr. Sibal contended that the appeal can

be disposed of in three manners, firstly on merits, secondly by

withdrawal under Order 23 Rule 1 CPC and thirdly, by a

compromise under Order 23 Rule 3 CPC. It was contended that the

order dated 07.03.2012 was neither an order recording withdrawal

of the RFA by the appellant nor could it be treated as a disposal of

the appeal on merits.

11. It was next contended that the order could also not be treated as an

order passed on the basis of a compromise in terms of Order 23

Rule 3 CPC. The learned counsel further contended that when an

appeal or a suit is disposed of in terms of compromise, the

provisions of Order 23 Rule 3 CPC have to be strictly complied

with as the same are mandatory in nature. Reliance was sought to

be placed on the judgment of the Apex Court in Jagdish Manohar

Singh vs. M/s. South Delhi Builders Pvt. Ltd., ILR (2008) Supp. (9)

Delhi, Para 8, wherein in Para 8 it has been observed as under:-

"8. The procedure for compromise as may be noticed is outlined in Order 23 Rule 3 CPC and in the opinion of this Court, is not merely a procedure, but also obliges the parties and the Court to follow a particular discipline in regard to the recording of settlement, which would result in a binding decree. The decision of the Supreme Court in Ajad Singh (supra) and indeed the earlier decisions are sufficiently clear on this aspect, that, any decree which is opposed to the letter and procedure of Order XXIII R.3 CPC cannot be sustained so far as those who do not participate in it. It is axiomatic that where the law prescribes a mode of doing something, no other

procedure or mode of its performance is lawful. Therefore, the Court has to adhere to the parameters of Order 23 in disposing of a suit-either permit its withdrawal (Rule 1) or record a lawful compromise (Rule 3). In the latter event, a decree is also drawn in terms of the compromise. The Supreme Court in Ram Narang vs. Ramesh Narang, (2000) 11 SCC 44, held that an order under Order 23 Rule 3 is composed of both a command and a contract, consent of the parties being an essential component of such an order. Such a consent needs to be obtained in the form prescribed in the said rule, failing which it cannot be treated as valid or binding".

12. It was contended that for the purpose of compromise under Order

23 Rule 3 CPC there has to be an agreement in writing, signed by

all the parties and only then it should be treated as a valid

compromise and anything which is in derogation of the same is not

enforceable. To support his contention, the learned counsel has

placed reliance on Gurpreet Singh vs. Chatur Bhuj Goel, (1988) 1

SCC 27; Kamla Devi vs. Prabhat Chand, 1997 (40) DRJ (DB);

Bhai Swinder Singh vs. Ram Kishore & Anr., 66 (1997) Delhi Law

Times 575; Shyam Telelink Ltd. Vs. UOI, (2010) 10 SCC 165.

13. The learned counsel has also referred to the legislative history of

Order 23 Rule 3 CPC to indicate that before amendment to the

CPC in the year 1976 condition of compromise being in writing

and signing by the parties was not there and therefore the same was

amended by the legislature in its wisdom to avoid any confusion.

14. This aspect of the matter was contested by Mr. Narula, the learned

counsel for the respondent. He contended that the language of

Order 23 Rule 3 CPC is not applicable to the facts of the present

case and no help can be drawn from the same by the

appellant/tenant.

15. It has been contended by Mr. Narula that the conduct of the

authorized representative of the appellant is nothing but

reaffirmation of the order which has been passed by the Court on

the basis of the statement having been made by the learned

counsels appearing for the parties. It is stated that pursuant to the

order dated 07.03.2012 the two senior counsel who were appearing

on behalf of the appellant, they did not press the appeal and both

the parties representing their respective clients had agreed that the

appellant shall be given two years time to vacate the premises

subject to its paying use and occupation charges @ Rs. 1,00,000/-

for the first year and Rs.2,00,000/- for the second year. It is stated

that these charges were actually paid and deposited by appellant

with the Registrar General as per the orders dated 06.05.2015 and

18.09.2015 and further an undertaking was also filed in compliance

to the order dated 07.03.2012 which was indicative of the fact that

the appellant had accepted the terms and conditions and enjoyed

the benefit in terms of order and later on it cannot be permitted to

retrace its steps.

16. I have carefully considered the submissions made by the respective

sides and gone through the order and the record.

17. At the outset it is stated that under Section 80 of the Evidence Act

a presumption of correctness is attached to the judicial orders.

Meaning thereby, not only the judicial orders are correctly recorded

but there is a certain amount of sanctity to the judicial orders is to

be attached and in case such a sanctity is not imparted to judicial

orders then any litigant can toss around a judicial order simply

raising false, frivolous and meritless pleas after taking the

advantage in terms of the said order. It is to be noted that any

counsel who appears in Court has an authorization in his favour by

way of vakalatnama to represent the said client. The present appeal

has been filed on behalf of the appellant through Ms. Indira

Sawhney, Mr. J.K. Seth and Mr. Lakshya Saharia, Advocates and

their vakalatnama is on record. The appellant was also represented

by two reputed senior counsels, namely, Mr. Neeraj Kishan Kaul

and Mr. Parag Tripathi of this Court who only appeared on the

instructions of the briefing counsel. Similarly, the

respondent/landlord was also represented by the counsel. The

appeal came up for the first time on 28.02.2012 when the counsel

for the respondents were present as caveator. Copy of the paper

book was supplied to them and the matter was adjourned to

06.03.2012. On which date at request of the learned senior counsel

the matter was adjourned to 07.03.2012. On the next date, i.e. on

07.03.2012 after arguments were heard in the appeal, it was agreed

that the appeal can be disposed of by granting time of two years to

the appellant to vacate the suit premises from that particular date

and also on the condition that appellant would not press the appeal

on merits. Thereby meaning that the proposal of the grant of time

of two years to the appellant though may have emanated from

either of the counsel but it was accepted by both the parties.

Obviously the said proposal could not have been accepted without

the instructions of the counsel whose power of attorney was on

record and further on account of the said grant of time of two years,

the learned counsel for the appellant decided not to press their

appeal on merits. This is a statement of fact recorded in the order

sheet and it does not need any further hair splitting. Any

vakalatnama if perused carefully, clearly incorporate a condition

that any admission or concession which is made by a counsel for

and on behalf of his client will bind him and he has no occasion to

raise a grievance about the same. If there is a grievance raised by a

client on that score that his counsel had made a concession or an

admission on question of fact which he was not authorized to do or

for which no instructions were given to him, it must be matched

with a contemporaneous conduct of the client. This

contemporaneous conduct of the client would be reflected by

sending a protest letter either to the counsel or in an extreme

situation by making a complaint to the professional body against

the counsel. There is no such grievance raised in the present case of

that nature. Therefore, this concession of accepting the period of

two years as a period for vacation of the premises is full and final

and a grievance cannot be raised about it by the counsel for the

appellant now. Not only this concession was made and accepted

by the learned senior counsel appearing for the appellant but the

conduct of the party itself is further confirming that it was done by

them voluntarily and without any reservation in as much as they

further paid damages @ Rs.1 lac per month from April, 2012 to

August, 2012, that is for five months which is not a small period.

Acceptance of the order dated 07.03.2012 and the grant of time of

two years further gets fortified by the fact that the appellant was

directed to file an undertaking in this Court in terms of order dated

07.03.2012 which was filed by one Rohit Kumar Sharma in the

capacity of a constituted attorney of the appellant. All these facts

persuade the Court to draw only one irresistible conclusion that not

only the order dated 07.03.2012 was loud and clear but it was also

accepted by them in letter and spirit but was also complied with by

the appellant/tenant. It is a different matter that the respondent on

account of its foolishness started raising objections with regard to

the contents or the modalities of the undertaking. But the fact of

the matter remains that the appellant did draw the benefit in terms

of the order dated 07.03.2012 twice over that is to say though he

was to occupy the property only for two years but even after expiry

of four years from the date of passing the order he continues to be

in possession. The credit for all this goes to the respondent counsel

and ingenuity of the counsel for the appellant/tenant. And in the

process sufferer is the poor owners of the house.

18. Undertaking which a party files has to be accepted by the court

though the opposite side may point out the deficiencies in the same

but if in the process of pointing out the deficiencies, he crosses the

limit a cantankerous, unscrupulous litigant is bound to exploit the

situation. This precisely has happened in the present case. Record

shows that the appellant is the tenant in respect of this posh

property on Sardar Patel Marg since 1966 that is as on date for

nearly 50 years. The appellant only wants to perpetuate his

possession of the property in question by raking up all frivolous

plea by taking the advantage of the conduct of the counsel for the

respondent. The respondent which is an HUF and is headed by a

Karta.

19. So far as the contention of Mr. Sibal is concerned, I do not find any

fault with the said contention. In normal circumstances, the appeal

would be decided on merits. This is not a case where the appeal

has been decided on merits. As regards Order 23 Rule 3 CPC that

is a case where a compromise is arrived between the parties in a

suit or an appeal and that compromise has to be in writing and

signed by the parties. Certainly it is a visualizing case where a

compromise may be arrived at between the parties in the Court

itself or outside the Court where the Court feels that the

compromise deserve to be placed on record in writing that the

parties will be drawing a compromise by signing it and filing it in

court along with the affidavit to certify its veracity and the court

will dispose of the matter. In appropriate cases the Court may

record the statement of the parties in Court itself to bind them.

But, certainly the present case does not fall in the said category.

20. Thus, we are left with only Order 23 Rule 1 CPC. Order 23 Rule 1

CPC talks about abandoning or withdrawal of a claim or a part

thereof. Now this could be on certain terms and conditions or it

could be without reservation. In the present case it could be very

authentically said that when the arguments were heard something

transpired due to which either the Court was not inclined to grant

relief to the appellant or the Court was inclined to grant time to the

appellant only or alternatively decide the appeal by dismissing the

same to which both the parties were reluctant and an offer for grant

to time was made by the counsel for the respondent which was

accepted by the counsel for the appellant and on account of

acceptance of this offer by the appellant it gave up its claim of

challenging the impugned order on merits. So in that sense it was

an abandoning of a relief of raising a challenge to the impugned

order on merits subject to its being granted two years time. So far

as this is concerned, it became final outcome. The appellant or the

respondent cannot to permitted to retrace their steps once this is

recorded in the judicial order. This is not a type of order or a

compromise or an agreement which is required to be in writing as

is contended by Mr. Sibal. The appellant has chosen voluntarily

without any threat, coercion or inducement not to press his appeal

on merits, subject to grant of two years time which has been

granted by the Court. This concession or admission is irreversible.

It is for the court to see how to ensure its compliance.

21. Then the question arises as to how to give shape to modalities in

which the parties would be bound by the terms and conditions of

settlement. It is in this context that the learned counsel for the

appellant had also agreed to pay a sum of Rs.1 lac as mesne profits

for the first year and Rs.2 lac for the second year and further also

filed undertaking. Undertaking also suggests all these terms and

conditions which are part of the order were complied with. It is a

fact that the appellant after the order did pay to the respondent at

the rate at which it was so directed by this Court. In the light of

this it became conclusive and the appellant was stopped from

retracing his steps from the same by contending that a formal

decree has not been passed or that objections were raised by the

respondent. These are all frivolous objections to wriggle out of the

order dated 07.03.2012. This kind of attitude on the part of the

appellant who seems to have turned dishonest and unscrupulous

cannot be permitted to be done and thus it could not only harm the

respondent because of its foolishness raising objections to the

terms and conditions of the undertaking but also the Court because

if this is permitted to be done then there will be no sanctity or

credibility attached to the orders passed by the Court and the Court

will be tossed around by litigants of such hue.

22. I am not at all impressed by the judgments which have been cited

by the learned counsel for the appellant. Reliance has been placed

by the appellant on Mrs. Jagdish Manohar Singh vs. M/s South

Delhi Builder P. Ltd; ILR(2008) Supp.(9) Delhi 89, wherein it was

laid down that when a law requires a particular thing to be done in

a manner then it has to be done in the said manner and no others.

The present case was not a case where the compromise was

required to be signed and verified in terms of Order 23 Rule 3 CPC

because it was compromise arrived at during the course of

arguments and the Court in its wisdom did not grant time to the

parties to file a compromise in terms of Order 23 Rule 3 CPC nor

did the parties asked for a time to comply with the said order and

the rule. Further, it is not necessary that every compromise be

reduced into writing and signed by the parties, especially the one

which the parties strike of their own or at the intervention of the

Court during the course of arguments. Moreover, it was a case

here that the appeal was not being pressed on merits by the

appellant.

23. If the contention of Mr. Sibal is to be accepted then practically

every compromise of the nature as is arrived in the present case

will not have to be accepted as a compromise under Order 23 Rule

3 of the CPC. Nor can it be said that such compromise are

enforceable. The argument of Mr. Sibal that a decree ought to have

been drawn mandatorily on the basis of the said compromise also

does not impress me because the very fact that the appellant

pursuant to the compromise did not press his appeal on merits

subject to it being given time of two years to vacate the premises

which actually it enjoyed and coupled with the fact that its conduct

of paying the use and occupation charges on enhanced rate

continuously for five months and giving an undertaking of it's

authorized representative to vacate the premises after enjoying the

same for two years estopps now to say that compromise is

withdrawn. Such an unprincipled and unscrupulous plea of the

appellant cannot be allowed, consequently, the appellant can also

not be permitted to take advantage of the order and then retrace its

steps. Such an argument is being advanced by the appellant only to

perpetuate the possession of the premises in a posh locality like

Sardar Patel Marg.

24. Similarly, the judgment in Gurpreet Singh vs. Chatur Bhuj Goel,

Kamla Devi, Bhai Swinder Singh (supra) are not applicable to the

facts of the case.

25. One of the arguments which Mr. Amit Sibal, the learned senior

counsel has advanced was that the respondent relying on the

deposits made by the appellant in the month of April to August,

2012 in terms of order dated 07.03.2012 or the deposits made

pursuant to the order dated 06.05.2015 and 18.09.2015 is

misplaced as subsequent conduct or the events cannot come to the

aid of the respondent after 1976 amendment of the CPC. It is

further contended that the deposits were made by the appellant in

pursuance to orders dated 06.05.2015 and 18.09.2015 only in order

to show his bona fides and without prejudice to the rights and

contention of the appellant to the merits of the case. It is also

contended that the Court took judicial notice of the objections filed

by the respondent and called upon the appellant to file its response

to the objections by order dated 05.09.2012 and which negates the

compromise dated 07.03.2012 as being enforceable.

26. I do not agree with this contention of Mr. Sibal except to the extent

that the orders dated 06.05.2015 and 18.09.2015 by virtue of which

the appellant was directed to deposit the use and occupation

charges are not being referred to. The said orders were necessitated

on account of the fact that the Court had to balance the equities.

The appellant could not have been permitted to use the luxurious

premises in a posh area of Sarder Patel Marg and yet deny paying

the amount at least in terms of the use and occupation charges

which he had agreed to pay vide order dated 07.03.2012.

Therefore, this contention of Mr. Amit Sibal that orders dated

06.05.2015 and 18.09.2015 are not being looked at except that

these orders were passed to balance the equities between the

parties. So far as the filing of the response by the appellant to the

objections filed by the respondent are concerned, these are also

inconsequential. The reason for this is that the point which is

under consideration of the Court is as to whether despite the

objections having been raised by the respondent, did the Court

categorically negate the contents of the order dated 07.03.2012.

The answer to this question is emphatic no. The reason for saying

so is that the order dated 07.03.2012 is in two parts. The first part

of the order clearly records the statement of the learned senior

counsel representing the appellant that they do not want to press

their appeal, subject to their being given two years time to vacate

the premises. This two years time was not only granted by the

counsel for the respondent and accepted by the appellant

voluntarily but it was also accepted by the appellant that it would

pay a sum of Rs.1 lac for the first year and a sum of Rs.2 lacs for

the second year as use and occupation charges. The factum of the

order having been accepted voluntarily by the appellant by his

conduct also gets reflected by the fact that for the period of five

months from April to August, 2012 he made a payment of Rs.1 lac

to the respondent. Therefore, once he did that he was estopped

now for retracing his steps. The acceptance of the terms and

conditions of not pressing its appeal get further fortified by the fact

that the appellant was called upon to file an undertaking which he

did file through his authorized representative of the appellant.

Now to say that the compromise ought to have been in writing or

that the objections were filed or that he filed reply to the objections

or that the compromise was unenforceable is nothing but an

unscrupulous and unprincipled plea raised by the appellant only to

perpetuate his occupation of the premises.

27. I have already observed that the aforesaid occasion would not have

arisen but for the foolishness of the respondent that who merely

because the respondent being foolish in raking up the issue which

was not at all relevant because enforcement of the undertaking is

between the Court and the person who is furnishing the

undertaking. The respondent had absolutely no right to rake in the

same. Therefore, I feel that it is too late in the day that instead of

having enjoyed the premises for four years instead of two years

which it had sought, cannot be permitted to the appellant to

contend today that the order dated 07.03.2012 is unenforceable on

account of the so-called technicality that the compromise was not

signed by the parties or decree was not drawn or that objections

were raised with regard to the modalities of furnishing an

undertaking or that he had filed reply to the objections of the

respondent. This kind of technical objection by the appellant

deserves to be not only to be curbed but also outrightly rejected.

28. Another subsidiary argument to the aforesaid argument which was

advanced by Mr. Amit Sibal that he was not permitted to utilize the

premises peacefully. This is again a lame duck excuse by the

appellant that it was not able to enjoy the premises peacefully. On

the contrary, as a matter of fact, the appellant being a company and

having plenty of resources of engaging counsel it has embroiled the

respondent a poor individual or a Hindu undivided family in totally

unwarranted litigation so as to ensure that he is not able to retrieve

the possession of the premises in question. I, therefore, reject this

contention of Mr. Sibal also.

29. For the reason mentioned above, I feel that the applications of the

appellant, CM APPL 6638/13 seeking stay of impugned order

dated 04.02.2012 passed by the Ld. ADJ in Civil suit No.95 of

2010 and CM APPL 30021/15 for hearing and final adjudication

of the appeal on merits is totally misconceived and they are

accordingly dismissed and it is held that the order dated 07.03.2012

by virtue of which the appellant had not pressed his appeal on

merits, subject to it being given two years time, which not only has

been enjoyed in full measure by the appellant but in fact it was

enjoyed double of the said period and by his conduct made the

payment to the respondent for the month of April to August, 2012

and also filed an undertaking, therefore, by his conduct also he

accepted the terms and conditions of the order dated 07.03.2012

and he has to comply with the said order. The said order is fully

enforceable.

30. The objections which have been now raised by virtue of the various

applications by the appellant are only ploy by the appellant to

perpetuate his holding the possession of the suit premises

endlessly. All these application are accordingly dismissed and the

appellant is given three months time from today to vacate the

premises, failing which the respondent shall be free to file the

execution petition for retrieval of the possession of the premises

which has been their occupation for the last 50 years. Direction is

also issued to the executing court that the executing court shall

provide in the first instance itself the necessary police aid to

retrieve the possession of the premises.

31. Along with the present appeal there are three contempt petitions.

The appellant had filed a contempt petition No 434/13, wherein it

was stated that the Respondents are in contempt of order dated

28.09.2012 and 07.11.2012 of this court as the Respondents have

malafidely filed and pressed an execution petition seeking

execution of a decree of possession before the learned trial court

inspite of the fact that status quo orders were passed by this court.

While as Contempt Petition No. 452/14 and 504/ 13 was filed by

the respondent wherein the respondents has sought initiation of an

action on the part of the appellant on account of having not

complied with the order dated 07.03.2012 for vacating the premises

and on account of withdrawal of undertaking dated 19.03.2012 of

one Rohit Sharma, filed in pursuance of order dated 07.03.2012

respectively.

32. I am not incline to take any action against the appellant or even the

respondent for the reason that the contempt is between the alleged

contemnor and the Court. Further, the parties have essentially filed

the contempt petitioner during the pendency of the applications in

the main matter RFA No.97/2013 in order to bring to bear pressure

on the opposite side. That is not the purpose of the contempt. The

purpose is to see that majesty of the Court is not lowered. Since

this Court has already rejected the objections/applications filed by

the appellant for hearing the appeal on merits, therefore, I am not

inclined to further multiply the litigation before this Court by

initiating the action against the appellant or the respondent by

initiating action for contempt. Therefore, all the three Contempt

Petitions are rejected.

CM(M) 439/2013

33. So far as the present CM (Main) 439/2013 is concerned, the

appellant has challenged the order dated 04.04.2013 by virtue of

which the application of the appellant under Order 18 Rule 17 CPC

was rejected.

34. Order 18 Rule 17 CPC confers a discretion on the Court to recall

any witness at any stage of a suit, who has been examined and put

such questions to him as the court may think fit. Therefore, the

Order 18 Rule 17 CPC confers, firstly, a discretion on the court

which may be exercised suo motu or an application of either of the

parties. But, it cannot be invoked by a party as a matter of right.

Secondly, the purpose of Order 18 Rule 17 CPC is to recall a

witness and the questions which could be put to him are by the

court under Section 165 of the Evidence Act. The whole purpose of

the aforesaid provision is to remove any ambiguity or seek

clarification which the court may require and which may further

the interest of justice. Normally this power would not be exercised

by the court at the instance of the party to fill up the lacuna in case

the witness has already been examined or it had sufficient

opportunity to do so.

35. In the backdrop of aforesaid provisions, the appellant had filed an

application under Order 18 Rule 17 CPC for recalling PW-3 and

PW-4 for further cross-examination in the suit. The issue which

was involved in the suit was that in a suit for possession and for

grant of damages/mesne profits for the use and occupation a decree

was passed in favour of the plaintiff/respondent under Order 12

Rule 6 CPC which has been assailed in RFA No.97/2013. The

appeal was also not pressed vide order dated 07.03.2012 and the

only surviving issue arises in the suit was with regard to payment

of future damages/mesne profits and it was in that context that the

evidence was being produced by the parties.

36. It may also be pertinent here to mention that the case which was set

up by the Respondent /plaintiff in the suit was that the appellant is

a tenant at the rate of Rs.4360/- while as the stand of the appellant

was that he was paying rent at the rate of Rs.2760/- along with

interest @ Rs.1600/- It was in this context the appellant had

contended that its registered office was in Kolkata which was

vacated in January and July, 1988 and during this period the

documents lying were shifted and dumped without clear

demarcation and the operation was completely halted in Delhi in

1995 due to no electricity at Barlow House, Delhi for six months.

Because of this reason they were unable to access the documents. It

is stated that now they were able to lay their hand on documents

which was in the nature of correspondence exchanged between

T.K. Sehgal, Karta of the plaintiff/respondent and the appellant

company. It had been contended that these documents clearly

showed that there was certain transactions between the

appellant/tenant and the respondent/landlord in the nature of loan-

cum-deposit arrangements. It was also contended that these

documents were permitted to be placed on record by the trial court,

subject to payment of cost of Rs.50,000/-. It has been stated that

these documents deserve to be put by the appellant to the

respondent in cross-examination.

37. This was opposed by the respondent/plaintiff on the ground that the

application is an abuse of process of law in as much as the

appellant is indulging in dilatory tactics. It was also contended that

the intention of the appellant in recall of PW-3 and PW-4 is to only

prolong the cross-examination and perpetuate his possession. The

learned trial court rejected the application of the appellant as an

abuse of the process of law as a consequence of which the present

CM (Main) has been filed by the appellant.

38. I have considered the impugned order and gone through the record.

39. I find myself into full agreement with the reasons for rejection of

the application of the appellant. First of all, as has been stated

above, Order 18 Rule 17 CPC confers a discretion on the Court and

the question which have to be put to the witnesses whose cross

examination has already been recorded is to be done by the court

under Section 65 of the Evidence Act and not by the parties

normally. Therefore, the provisions of Order 18 Rule 17 CPC is

essentially a discretion conferred on the court in furtherance of

administration of justice and cannot be claimed as a matter of right

by any of the parties.

40. Secondly, the purpose of filing the application by the appellant is

to recall PW-3 and PW-4 and confront them with the additional

documents which have been filed by the appellant after the closure

of the evidence. These additional documents as a matter of fact

could not have been taken on record because the appellant is trying

to place on record by way of evidence, documents of which he was

aware of, though he is claiming that these documents were not

previously known to him. Order 18 Rule 17A CPC which deals

with the production of evidence which are not previously known or

which could not be produced despite due diligence has been

deleted by the legislature in its wisdom by an amendment Act of

1999. The purpose of deletion of this provision is essentially that it

was being used as a fertile ground for trying to prolong the trial, as

has been done in the instant case. The respondent is right in

contending that the production of the documents by the appellant in

the instant case will have absolutely no bearing to the facts of the

present case because what is in issue in the suit is with regard to

quantum of money to be paid as damages/mesne profits for the user

of the premises and the decree under Order 12 Rule 6 has already

been passed while as the entire effort of the learned counsel for the

appellant is that to assail the decree of possession itself.

41. For the aforesaid reasons, I feel the trial court was absolutely right

in observing that the appellant is indulging in dilatory tactics and

has rightly rejected the application. There is no illegality,

jurisdictional error or impropriety in rejecting the application of the

appellant. Accordingly, the present petition is also totally

misconceived and the same also deserves to be dismissed. Ordered

accordingly. In view of the above order, stay granted to the

appellant stands vacated and accordingly pending applications has

become infructuous.

V.K. SHALI, J.

MAY 26, 2016 vk

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter