Full Judgment Text
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
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Reserved on:- 3 May, 2024
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Date of Decision:-3 July, 2024
+ CS(COMM) 125/2023, I.As. 9443/2020, 9444/2020, 20903/2022 &
3760/2023
AJAY GUPTA & ANR. ..... Plaintiff
Through: Ms. Sonali Chopra and Ms. Shristhi
Boobna, Advs. (M. 8294279930)
versus
M/S GREENWAYS ..... Defendant
Through: Mr. Praveen Kumar, Adv. (M.
9999099325)
CORAM:
JUSTICE PRATHIBA M. SINGH
JUDGMENT
1. This hearing has been done through hybrid mode.
I.A. 20903/2022 & CS(COMM) 125/2023
2. The present application has been filed on behalf of the Plaintiffs under
Order 12 Rule 6 seeking possession of the property in question i.e., open
courtyard admeasuring 15x6 ft. located at E-20, Connaught Place, New
Delhi– 110001 in favour of the Plaintiffs and injunction against the Defendant.
BACKGROUND FACTS:
3. This is a suit for decree of possession and other reliefs, filed by the
Plaintiffs - Ajay Gupta and Sanjay Gupta, in respect of the open courtyard
space admeasuring 15x6 ft. located at E-20, Connaught Place, New Delhi–
110001(hereinafter ‘ suit property ’).
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4. The present suit involves the Plaintiffs, who are the sons of late Mr.
Y.N. Gupta, and the Defendant, who is a permissive user of the suit premises.
The Defendant was inducted as a tenant in the front and rear portions of the
property in the years 1968 and 1980 respectively, and has been running a shop
under the name GREENWAYS. The Plaintiffs’ father had permitted the
Defendant to use an open space at the rear of the tenanted shops, admeasuring
15x6 ft. to keep the generator set on a license fee for ₹3,000/- per month since
the year 2000. The said space was used by the Defendant to place air
conditioning equipment and a generator for power backup for the retail store.
After Mr. Gupta – the owner, passed away on 12th January, 2019, the
Defendant continued to use the open courtyard space in the suit property.
5. The Defendant was paying license fee of ₹3,000/- per month till March,
2017 however, thereafter, the Defendant stopped paying the license fee.
Therefore, the present suit has been filed seeking a decree of possession,
injunction and mesne profits in respect of the suit property.
6. As per the plaint, on 19th June, 2020, the Plaintiffs revoked the
Defendant’s license to use the suit property and has thereafter sought
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possession. Summons were issued on 16 October, 2020 and the Defendants
were restrained from creating any third- party rights or alienating the open
courtyard space admeasuring 15x6 ft. used for keeping the gen-set in the
following terms:
“6. Grievance of the plaintiffs is that after the plaintiffs
cordoned off that area by a temporary structure with the
result both the defendant’s and the plaintiffs’ generator
sets could be placed, the defendant has now put his own
lock on that area and is not permitting the plaintiffs or
their tenants or their nominees to put his generator.
When the plaintiffs issued a notice for revoking the
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permission to use the open courtyard and remove the
genset asking the defendant to vacate in the month of
June, 2020, the defendant sent a cheque for the period
w.e.f. April, 2017 till June, 2020 claiming that the open
space was on rent and hence the plaintiffs have not
deposited the said cheque .
7. Considering the averments in the plaint as also the
documents filed therewith, this Court finds that the
plaintiffs have made out a prima facie case in their
favour and in case no ex-parte ad-interim injunction
is granted the plaintiffs will suffer an irreparable loss.
Balance of convenience also lies in favour of the
plaintiffs. Consequently, till the next date of hearing,
the defendant is restrained from creating any third
party rights or alienating the open courtyard space
admeasuring 15x6 ft. which was permitted to be used
by the defendant for keeping the gen-set to any third
party.
8 . Directions in respect of the keys to the open space
will be considered on the next date of hearing in the
presence of the defendant.
9. Compliance under Order XXXIX Rule 3 CPC be made
within one week.”
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7. Thereafter, the matter was referred to mediation on 12 March, 2021,
however the same was closed as “not-settled” as per the mediation report
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dated 22 June, 2021. Further, an attempt was again made in the year 2023,
to resolve the dispute, but the same remained unresolved.
8. I.A. 3760/2023 was filed by the Defendant under Order VII Rule 11,
CPC, 1908, seeking rejection of the Plaint on the ground that the suit is barred
under section 50 of the Delhi Rent Control Act, 1958, as also that the subject
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matter of the dispute is a ‘commercial dispute’. Vide order dated 24
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February, 2023 the Court directed the present suit to be re-numbered as a
Commercial Suit in the following terms:
“5. I have considered the submissions of the learned
counsels for the parties on the above two issues raised
by the learned senior counsel for the
defendant/applicant.
6. In view of the submissions made by the learned
counsel for the plaintiffs that the present suit may be
treated as a Commercial Suit, and relying upon the
Judgment of this Court in Rachit Malhotra v. One97
Communications Limited, 2018 SCC OnLine Del 12410,
followed in Apnaghar Builders Pvt. Ltd. (supra), in my
opinion, the plaint cannot be rejected only because it
has been filed as an Ordinary Suit. The suit can always
be re-numbered as a commercial suit, which is an
administrative exercise, and the plaintiffs can be
directed to make up the deficiencies that would arise
on the suit being treated as a Commercial Suit .
7. As far as the objection of Section 12A of the Act is
concerned, it is first to be noted that the judgment of the
Supreme Court in Patil Automation Private. Limited,
and Others . v. Rakheja Engineers Private. Limited 2022
SCC OnLine SC 1028 has been expressly stated to be
prospective in nature. The present suit has been filed
prior thereto.
8. Even otherwise, as held by the Division Bench of this
Court in Chandra Kishore Chaurasia (supra), a suit
which contemplates urgent interim relief is excluded
fiom the rigors of Section 12A (1) of the Commercial *
Courts Act. The plaintiffs seeking to institute a suit
praying for urgent interim reliefs is not required to
exhaust the remedy of pre-institution mediation. There
is no provision under Section 12A of the Act, which
requires the plaintiffs to file an application seeking
exemption from pre-institution mediation where the suit
involves urgent interim relief. It has further been held
that the question whether a suit involves any urgent
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interim relief is to be determined solely on the basis of
the pleadings and reliefs sought by the plaintiffs. If
plaintiffs seek any urgent interim relief, the suit cannot
be dismissed on the grounds that the plaintiff has not
exhausted the remedy of pre-institution mediation. The
Court may or may not grant an urgent interim relief, but
this is not relevant to determine whether the plaintiff
was to first exhaust the remedy of pre-institution
mediation. The question whether the suit involves any
urgent interim relief is not contingent on whether the
Court accedes to the plaintiffs' request for urgent
interim relief.
9. In the present case, the plaintiffs did pray for urgent
ad-interim injunction. Whether the plaintiffs ought to
have filed an application seeking interim relief in spite
of the defendant having already stated that it would not
create any third-party rights, is to be left for the
judgment of the plaintiffs and the merit of such
application is to be considered by the Court. However,
once such an application has been filed, it cannot be
said that the plaintiffs are not entitled to the exemption
from instituting pre-suit mediation. In fact, this Court
had granted an ad-interim ex-parte injunction in favour
of the plaintiffs.
10. I, therefore, find no merit in the above two objections
raised by the defendant to have the plaint rejected under
Order VII Rule 11 CPC.
11. However, before proceeding with the other
objections of the defendant no.l, the Registry is directed
to re-number the present suit as a Commercial Suit. The
plaintiffs are also directed to make up the deficiencies
in the suit to make it in conformity with the requirement
of a Commercial Suit, within a period of one week from
today.”
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SUBMISSIONS:
9. Ms. Sonali Chopra, ld. Counsel appearing on behalf of the Plaintiff
submits as under:
i. that there is no rent receipt which has been produced by the Defendant
and only a letter is the basis of the claim of the tenancy.
ii. that insofar as the property which is under the possession of the
Defendant is concerned, the front portion is under a protected tenancy,
however for the rear portion of the tenancy, a decree has already been
passed which is subject matter of an appeal. The Defendant has not
satisfied the Court that there is any tenancy and the Defendant can at
best be a permissive user.
iii. that no occupation charges have been paid from April 2017 till June
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2020 by the Defendant. It is for the first time on 16 June, 2020 after
the Plaintiff had orally informed the Defendant that the permissive user
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is being withdrawn, that the letter dated 16 June, 2020 was issued by
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the Defendant. The Plaintiff then issued a letter dated 19 June, 2020
by way of a legal notice.
10. On behalf of the Defendant, ld. Counsel has made the following
submissions:
i. that there is no license which has been shown by the Plaintiff. Moreover,
the plaint proceeds on the presumption that the Plaintiff and two
brothers are the only legal heirs and two sons of Late Mr. Y.N. Gupta -
however, there is another daughter-Mrs. Anjeli Vaid who is claiming
partition of this very suit property. The suit itself is not validly instituted
as no consent was sought from the sister. In fact, reference is made to
the application filed by the sister under Order I Rule 10 CPC i.e., I.A.
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10275/2020 where she categorically makes an averment that she was
not informed of the filing of the present suit.
ii. that the consent of the sister cannot be presumed and if the institution
is invalid, subsequent consent by the sister does not regularize the
institution of the suit. Reliance is placed upon on a decision of learned
Single Judge of this Court in Ranbir Yadav vs. Life Insurance
Corporation of India, 2018 SCC On Line Del 11287 .
iii. initially an objection was raised by the Defendant that on the date of
filing of the suit all the co-owners have not given consent. The suit
was filed on 10th October, 2020 on which date the filing was non-est
filing as Plaintiff No.3-sister of the Plaintiffs, was not a party. In fact
Plaintiff No.3 has filed a suit for partition prior to the institution of this
suit seeking her share from her brothers. The brothers in fact, rely upon
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an alleged WILL dated 28 January, 2016 to claim complete title to the
property. Thus there is a clear dispute between the parties and in view
thereof, the suit itself is not maintainable. In addition to Ranbir Yadav
vs. Life Insurance Corporation of India (supra) , he also relies upon
Navin Chander Anand vs. Union Bank of India & Ors., 2018 SCC
On Line Del 9902.
iv. The second submission on behalf of the Defendant is that the suit is not
properly valued. As per the suit valuation, the stand of the Plaintiff is
that the value of the suit property is Rs.2,05,00,000/-. The said
valuation is an incorrect valuation as the same has been done only to
approach this Court. In fact in terms of Section 7(11) of the Court Fees
Act,1870, in the case of a landlord and a tenant the valuation has to be
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on the basis of rent and not on the basis of the market value of the
property.
v. Further it is submitted that whether the Defendant is a tenant or not is
itself a factual issue which would require trial and the issues are yet to
be framed. He submits that the letter dated 16th June, 2020 sent, by the
Defendant where the Defendant takes a position that he is a tenant,
deserves to be looked into.
vi. On the contrary, the Plaintiff’s letter dated 9th June, 2020 addressed the
issue as revoking license and withdrawal of permission to occupy a
portion of 15ft. x 6ft. in the suit premises after issuance of the
Defendant’s letter.
vii. On the proposition that the valuation of the suit is to be on the basis of
the valuation of the relief and not on the value of the property, learned
counsel relies upon Kamleshwar Kishore Singh vs. Paras Nath Singh
& Others (2002) 1 SCC 304.
viii. Further ld. Counsel relies on Bharat Bhushan Gupta vs. Pratap
Narain Verma and Another (2022) 8 SCC 333, to argue that if the suit
is valued on the market value of the property it will render the Court
Fee Act haywire.
ix. The last submission of the ld. Counsel for the Defendant is that the
subject property is a building in terms of the Delhi Rent Control Act.
Reliance is placed on Section 2(i) which defines the word ‘premises’
as included even grounds. The definition of building is very wide to
include a space which is an open ground without any construction as
well. The courtyard is not an open land and is covered by walls on all
three sides. Thus, the same would constitute ‘building’ under the Delhi
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Rent Control Act. The judgments relied upon are Edward Keventers
(Successors) Pvt. Ltd. vs. Union of India, etc. paragraph 19, as per
which it is argued that any structure enclosing the space with walls,
with or without roof designed for the purposes of shelter, storage, trade
etc. , can be considered as a building. Reliance is also placed on A.
Satyanarayan Shah vs. M. Yadgiri (2003) 1 SCC 138 , to argue that the
Court observed therein that a roofless structure falls under the
definition of building.
11. Ld. Counsel for the Plaintiff in rejoinder has made the following
submissions:
i. that on the issue of co-owner not being impleaded, she submits that
the sister has been impleaded as Plaintiff No.3 and she never had
any objection against the institution of this suit against the
Defendant. Reliance is placed on the decision in Khanna Jewellers
& Ors. v. Kapil Tandon & Ors. 278(2021) DLT 333 which deals
with the judgment in Ranbir Yadav v. Life Insurance Corporation
of India. Paragraph 25, 26, 30 to 34 and 41 are relied upon.
ii. On the issue of overvaluation, it is the submission of ld. Counsel
that the valuation of the property in such a case would be in terms
of Section 7(5)(e) of the Court Fees Act, 1870 and the basis of the
valuation would have to be the market value of the property. In any
event, she submits that the valuation of a suit cannot be based upon
a defence to be raised by the Defendant. Reliance is placed upon
Sushma Tehlan Dalal v. Shivraj Singh Tehlan, 2011:DHC:1339,
paragraph 12 to argue that that if a partition is with respect to one
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portion of the suit property and the other co-owner possess other
part of it, then it will be deemed to be in joint possession and subject
matter of partition and would fall under the ambit of Article 7 (iv)
of the Court-Fess Act. The decision in Renu Nagar v. Anup Singh
Khosla and Ors. 2009 SCC On Line Def 46, is also relied upon on
the proposition that the suit should be valued according to the
market value of the property, after the termination of license.
iii. On the last issue as to whether the present premises would constitute
a building under the DRC Act, 1958 ld. counsel submits that the
premises concerned is roofless. It was given for putting out a
generator. It was let out separately and not with any building. The
decision in A. Satyanarayan Shah v. M Yadgiri, (2003) 1 SCC 138
relies upon the Black’s Law Dictionary 5th Edition, however, in
Sanjay Gupta v. Sunil Kumar Gupta MANU/DE/4041/2018 the
Court has distinguished A. Satyanarayan Shah (supra) and has
relied upon Black’s Law Dictionary 8th Edition, to the effect that if
a premises does not have a walls or a roof or a permanent structure
then the same would not be constituting a building. Reliance is also
placed upon Surender Kumar v. Hari Singh (Deceased) Thr. LRS
& Ors,; RSA No. 288/2015 DHC which in turn relies upon Gobind
Sahai v. Narain Dass Ors., ILR (1972) 1 DELHI to argue that a
roofless structure would ordinarily not constitute a
building. Reliance is also placed upon Kamla Devi. v. Laxmi Devi,
AIR 2000 SC 1640.
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12. In sur-rejoinder, ld. Counsel for the Defendant seeks to distinguish the
judgments cited by the Plaintiff in the following manner:
i. In Khanna Jewellers (supra) according to ld. Counsel the co-owners
were mentioned in the plaint, however, in the present case, the Plaintiffs
have merely filed suit as the owners on the basis of a Will. There was
no mention made in the plaint of the sister at all.
ii. Insofar Renu Nagar (supra) is concerned, it is the admitted case of a
license and, therefore, the valuation was upheld.
iii. In Sushma Tehlan Dalal (supra) , the application was under Order VII
Rule 11 CPC, wherein the defence need not be seen, however, this
proposition cannot apply when a decree is being sought by the Plaintiff
on the ground that no issue exists for adjudication. In the present case,
the question clearly arises as to whether the premises is a building or
not or whether the premises are given on tenancy or on a license basis.
iv. Ld. Counsel submits that the premises in question is a courtyard and,
therefore, any premises described as courtyard has to be apportionment
to a building and, therefore, within the definition of a “building” under
Section 2(i) of the Rent Control Act, 1958. Thus, the present suit would
be barred under Section 50 of the DRC Act, 1958.
v. Lastly, it is submitted by ld. Counsel that in in Surender Kumar
(supra) , the observation of the Bench is that a roof structure would
ordinarily not constitute a building, however, this is with a caveat that
it could be established that the same could be used for a building
without a roof such as an open air restaurant or a swimming pool. This
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proof can only be adduced at the stage of trial and not at the stage of an
application under Order XII Rule 6 CPC.
ANALYSIS & DISCUSSION
13. The Court has heard the ld. Counsel for the parties and is presently
considering an application under Order XII Rule 6 CPC i.e., I.A.20903/2022
and the question is whether the suit is liable to be decreed on the basis of the
admitted position revealed in the pleadings.
14. The stand of the Plaintiffs in the plaint is that the premises in question
is an open courtyard admeasuring approximately 40 Feet x 12 Feet, is not
denied in the written statement. In paragraph 2 of the written statement, the
Defendant describes the same as a roofless structure but claims that the
premises would be covered under the Delhi Rent Control Act, 1958
( hereinafter DRC “Act ”). The Defendant also admits in paragraph 4 that it
was inducted as a tenant in the open courtyard but claims that the courtyard is
part of the building where Shop Nos. E-15, E-16 & E-17 are located.
15. On the nature of the premises, in the opinion of this Court, the images
speak for themselves. The photographs of the suit property i.e., the courtyard
where the equipment/gen-set are kept, are extracted herein below:
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16. A perusal of the photographs would show that this is a courtyard area
where certain gen-sets and units attached to the split air conditioners have
been put. It is not exclusive to the Defendant. The lock on the premises with
a tin gate is also in the nature of a semi covering which the Defendant appears
to have recently installed around the time of filing of the suit.
17. A perusal of the letters at pages 8 to 29 of the Documents folder issued
while tendering occupation charges, would make it clear as to what is the
nature of the premises. The text used in these letters while tendering the
occupation charges is quite standardized and the sample text of the letter is
set out below:-
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18. There are various such letters wherein an amount of Rs.3,000/- per
month has been tendered by Defendant to the Plaintiffs’ father. On a query by
the Court to the ld. Counsel during arguments, it was specifically admitted by
ld. Counsel that these documents are not in dispute. A perusal of the above
letter would show that the terminology used is “ charges for the use of space
for placing of generator and split AC ”. This standard terminology is found to
be used, even in letters dating back to the year 2002 onwards. These
documents being admitted documents, the legal issues raised by the
Defendant would have to be considered in the light of these documents.
19. The issues which have been raised by the Defendants are:-
i) that the suit property falls within the ambit of premises defined
under Section 2(i) of the DRC Act;
ii) the Defendant’s tenancy is a protected tenancy;
iii) that the suit is not maintainable due to non-impleadment of the
sister;
iv) that the suit is not properly valued.
20. In order to decide these issues, the Defendant and Plaintiffs have
referred to various decisions. However, one main feature that deserves to be
noticed is that in none of the letters which are placed on record, there is any
mention of the word “rent” only the word “charges” are used. Irrespective of
the terminology, the understanding of both parties, therefore, was clearly that
these are permissive user charges or occupation charges. So, to term the
Defendant as a tenant would itself be incorrect as there is no tenancy
agreement, neither there are any terms of lease which are agreed upon. At best,
the Defendant is a permissive user on a month to month basis who is paying
Rs.3,000/- as occupation charges. The amount being paid is Rs.3,000/- and
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the Defendant’s submission, therefore, as to whether the area constitutes
premises needs to be considered.
21. The definition of premises under section 2(i) of the DRC Act, 1958 is
as under:-
2 (i) “premises” means any building or part of a building which is, or
is intended to be, let separately for use as a residence or for
commercial use or for any other purpose, and includes,--
(i) the garden, grounds and outhouses, if any, appertaining to such
building or part of the building;
(ii) any furniture supplied by the landlord for use in such building or
part of the building; but does not include a room in a hotel or lodging
house;
This definition of ‘premises’ has been considered in several decisions:-
22. Koti Saroj Anamma and Another v. Jonnalagada Malleshwara Rao,
(1995) 3 Supreme Court Cases 347.
In this case the Supreme Court was considering whether a shed which was
adjunct to the main leased property, would fall under the definition of building.
The Court observed that the zinc sheet shed covering the machinery will not
fall in the ambit of the definition of building and can neither be called a house
or even a hut. It was let out along with the Saw Mill land and machinery and
the shed was only an accessory thereto. The dominant purpose was of leasing
out the saw mill machinery, and therefore the premises would continue to be
a commercial premises under Andhra Pradesh Building Lease and Eviction
Control Act 1960. The relevant portion of the judgment is set out below:
“ 7.Looking to this evidence, it is clear that the shed,
which has a zinc sheet roof, was erected only to protect
the saw mill machinery. What was leased out to the
respondent was substantially the saw mill machinery for
the purpose of carrying on timber/saw mill business.
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The shed was merely erected to shelter the machinery.
The dominant purpose of the lease was to lease out the
saw mill machinery. In order that the lease should be
covered by the Andhra Pradesh Buildings (Lease, Rent
and Eviction) Control Act, 1960, the lease should be of
a building as defined in Section 2(iii). It should,
therefore, be a lease of any house or a hut or a part of a
house or a hut let for residential or non-residential
purposes . It would include gardens, grounds, garages
and outhouses appurtenant to such a house or a hut.
In the present case, however, the lease is not of any
house or a hut or part of a house or a hut. The lease is
of saw mill machinery which is covered by a zinc sheet
shed. The dominant purpose of the lease is to lease out
the machinery. The shed is only an adjunct. It is also
pointed out that a covering over the machinery in the
shape of a structure consisting of zinc sheets supported
on poles can hardly be called a house or even a hut. In
any case, looking to the dominant purpose of the lease,
the two courts below have rightly come to the
conclusion that the lease is not covered by the
provisions of the Andhra Pradesh Buildings (Lease,
Rent and Eviction) Control Act, 1960.
8. The respondent relied upon a decision of a Full Bench
of the Andhra Pradesh High Court in the case of Mohd.
Jaffer Ali v. S. Rajeswara Rao [(1971) 1 Andh WR 194 :
AIR 1971 AP 156 : (1971) 1 Andh LT 217] . In that case,
there was a lease of the cinema theatre. The Court held
that the lease was essentially a demise of the building
with accessories like furniture and machinery, the
dominant purpose of the demise was to lease the cinema
theatre building and hence, the provisions of the Andhra
Pradesh Buildings (Lease, Rent and Eviction) Control
Act, 1960 apply to such a lease . In the present case, the
dominant purpose is clearly to lease out the saw mill
machinery. A zinc sheet shed which has been erected
merely to cover the machinery cannot be a
predominant reason for the lease. The High Court,
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therefore, was not right in coming to the conclusion
that the lease was governed by the provisions of
Andhra Pradesh Buildings (Lease, Rent and Eviction)
Control Act, 1960 .
23. Ajit Singh V. Ram Saroopi Devi, RSA No. 202/82, 1996 SCC OnLine
Del 214.
In this case, the Delhi High Court while considering Section 2(i) of the DRC
Act held that garden, ground or outhouses independently cannot be called
premises. T he Court observed that when the property was let out it was
merely an open plot surrounded by a boundary wall, the existence of a tin
shed came later on and therefore the term used is “open land with tin shed”.
Hence, the tenancy was of an open land and the same will not fall within the
purview of building neither the tin shed appurtaining to the open land will
be considered as premises. The Court further relied upon the decision of Koti
Saroj Anamma (supra) and observed that only the building which is given
on rent would constitute premises and any such area which is appurtenant to
the building would not amount to premises. The relevant portion is set out
below:
“15 . Reading of this Section show that garden, grounds
or out houses independently cannot be a premises. It is
only the building which when given on rent would
constitute premises. Appurtenant to the building would
not amount to premises. It is so held by the Supreme
Court.
16. In almost identical facts Supreme Court in the case
of Koti Saroj Anamma v. Jonnalagada Malleswara Rao,
1995 (2) Scale page 445, observed that shed being only
an accessory to the main lease it would not come within
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the purview of Rent Control Act. It was only an adjunct.
Such a shed meant to cover the Saw Mill machinery can
hardly be called a house or even a hut. Hence dominant
purpose of the lease was to let out vacant site with Saw
Mill Machinery. The facts of that case were the landlord
let out land together with Saw Mill and accessories
attached to the Saw Mill covered by Zinc Doria Rakulu
shed was leased out to the respondent. The Trial Court
concluded that in mere fact that the machinery was
housed in a zinc sheet shed will not make the lease that
of a non-residential building within the meaning of
Section 2 of the Andhra Pradesh Buildings (Lease, Rent
and Eviction) Control Act, 1960. The Appellate Court in
appeal upheld this decision. Relying on the observations
of the Supreme Court in this case Mr. Kohli contended
that in the case in hand also the dominant purpose of the
lease was vacant piece of land the shed could not be a
predominant purpose of the lease. That is the reason in
the rent receipts also despite that land was let though
these receipts do mention about the shed. But the said
shed was not there at the inception of the lease or at the
time of inducting the appellant as tenant. No
documentary evidence has been produced to show that
shed existed at the time of inducting the appellant as
tenant. This Court in the case of Sobha Singh v. Sant
Dass 35 (1988) DLT page 341 held that where on a
leased plot of land temporary structure was raised,
removable or termination of tenancy, the plot of land
does not become premises as defined in Section 2(i) of
D.R.C. Act and suit for possession will have to be tried
by Civil Court and not by the Rent Controller. The
observation of this Court in Sobha Singh case (supra)
on all force apply to the facts of this case. From the
documentary evidence placed on record it becomes
clear that the lease was of vacant land and shed was
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only appurtenant thereto hence the dominant purpose
was open plot and not the shed. In the case of Prabhat
MIG Society v. Banwari Lal, 37 (1989) DLT 437
Supreme Court observed on the analogy of the
principles of various decisions that what the Rent
Control Act contemplates is a building let out qua
buildings, may be with appurtenant land, but not a
land let out for use as land merely because there may
be a small building on it. The relevant question is what
was the dominant subject matter of the allotment - the
land or the building - and this is a question which can
only be decided in the respondent's favour (not
necessary to consider this as we are satisfied that the
property allotted to the society in respect of which it was
tenant initially under the Custodian and later under the
plaintiff was only a plot of land). In that case the tenant
society raised a temporary structure and installed some
machines in it. The society was a tenant under the
Custodian, who sold the plot by auction to the plaintiff.
There was chequered history of litigation involving
contradictory pleas by the society. Part of the super
structure was evacue and some portion consisted of
temporary shed. It was in these facts the Supreme Court
made the above observations. Aptly these observations
apply to the facts in hand. The tin shed could not have
been there on 4th January, 1957 when this plot was sold
to the respondent by Mr. Nandu Mal Jain vide
Ex.AW.1/1. Shri Shiv Dayal is signatory to the same.
Ex.D.1 to D.33 indicate open plot leased out with tin
shed. There it can be inferred that tin shed was only
appurtenant to the open land and the open land vas the
pre-dominant purpose of lease. In the case of Moti
Lal v. Yunus Ali, 1972 RCR page 475 the Madhya
Pradesh High Court held that the inclusion of the word
“hut” in the rent receipt cannot change the terms of the
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lease. Terms of tenancy cannot be built on rent receipts.
It was for the appellant to have proved that tenancy was
of shed and land was only appurtenant thereto which, to
my mind, he miserably failed to prove. In the case
of Krishna Psumba v. Dattaraja, AIR 1966 SC 1024 it
has been held that the subject matter of the letting for
which rent was payable by the tenant was “open land
with a Khatta”. It was further held that Khatta is not a
building. The dominant purpose of letting was open land.
Similarly, in the present case even the rent receipts
produced and relied by the appellant show that “open
land with tin shed” was let out. Tin shed cannot be
called building. The reading of these receipts show that
subject matter for letting was open land and tin shed was
only an adjunct. Allahabad High Court in the case
of Abdul Soni v. Mohd. Noor, AIR 1966 Allahabad page
39 held that construction of Chhappar and latrine is
neither accommodation nor part of building. On parity
of reasonings the tin shed in the case in hand cannot be
called a building or part of building. It was not intended
to let out separately for use as a residence or for
commercial use or for any other purpose. This tin shed
was not appertaining to any such building or part of
building. In fact it was not separately let out for either
commercial purpose or for any other purpose. This open
plot was let out which according to rent receipts Ex.D.1
to D.33 had a tin shed. Mere mention of tin shed to open
land does not mean tin shed was let out for being used
for commercial purposes. In the case of Sobha
Singh (supra) this Court relying on the decision
reported in 1979 (2) RCR 314 observed that:
“the landlord purchasing the property already occupied
by the tenant becomes a landlord by operation of law on
the same terms and conditions as the original lease. The
mere fact that the respondent/plaintiff has purchased the
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property knowing very well that there existed structure
constructed by the appellant on the said plot does not
mean that he had agreed to any change in the terms and
conditions of the tenancy. The relationship of landlord
and tenant came into existence by operation of law, on
the same terms and conditions on which the tenant was
holding the property under the Custodian. So the only
conclusion possible is that the appellant always
remained tenant in the plot and did not become tenant
in any premises.”
17. It was incumbent on the appellant to have proved
what was let to him when he was inducted as tenant in
1956 which he has miserably failed to prove. On the
contrary respondent vide the registered sale deed
Ex.AW-1/1 dated 4th January, 1957 proved that as on
January, 1957 it was only a piece of open land
surrounded by boundary wall. There was no tin shed
existing. The appellant neither got the existence of the
tin shed proved by summoning the landlord Mr. Nandu
Mal Jain nor produced the rent deed which he stated
was executed. Therefore, the inference can be drawn
that the “open land” was let out to him by the erstwhile
landlord and between the time the property was sold
and purchased by the respondent tin shed came into
existence. That is the reason in the rent receipts
Ex.D.,1 to D.33 the word used are “open land with tin
shed” i.e. when the rent receipt Ex.D.1 was issued for
the months from 1st November, 1957 to March, 1972,
there existed tin shed. That shows when respondent
purchased the property and became owner/landlord by
operation of law the tenancy was to be governed by the
same terms and conditions on the basis of which
appellant was inducted as tenant by Shiv Dayal or Mr.
Nandu Mal Jain as the case may be. Except Ex.DW-1/1
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no other rent receipt produced. Ex.DW-1/1 I have
already said cannot be relied upon.
18. For the reasons stated above, I am of the considered
view that the tenancy consisted of “open land” which
does not fall within the purview of Section 2(i) of the
D.R.C. Act and cannot be called building. Even if for
the arguments sake it is presumed that tin shed existed
and was appurtaining to the open land, it would not
fall in the definition of “premises”. Hence, the Civil
Court was the competent Court to try the suit for
possession and not the Court of Rent Controller. This
was the only point on which the Supreme Court
remanded the case. The question is answered in favour
of the respondent. The appeal is accordingly dismissed
with costs. ”
24. A ld. Division Bench of this Court in Surinder Kumar Jhamb v. Om
Parkash Shokeen, 1999 (51) DRJ 704 (DB) took a similar view. The relevant
portion of the said judgement is as under:-
“10……Even otherwise as per appellant's own showing
out of an area of 2 bigha 10 biswas less than 10,000 sq.ft.
was the covered area where temporary structure had
been raised i.e. one tin shed, one room and a hall . The
built up area being a temporary structure cannot be
called premises nor the vacant plot can be adjunct of
this temporary structure. It can hardly be called
premises. The dominant portion of the property let out
as emerged from the evidence was vacant piece of land
at best with temporary structure standing on iron
pillars. That could be adjunct to the vacant plot. This
temporary structure was raised by the appellant as
admitted by him vide Exhibit PW-2/1. It was his
requirement of running his business which he was to
remove on the expiry of the lease period. As the
construction was raised by the appellant after the
property was let hence by no means it could be said that
property let out to the appellant was premises as
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defined under Section 2(1) of DRC Act. Thus suit was
properly instituted and was not hit by the provisions of
Delhi Rent Control Act. ”
25. In Kamla Devi v. Laxmi Devi, AIR 2000 SC 1640 , the Supreme Court
observed that the form and the substance of the transaction has to be taken
into consideration. In the said case, though there were some structures on the
land, it was held that what was let out was the land and not the structures. The
relevant portion of the said judgement is as under:-
“15. In Krishnapasuba Rao, Kundapur v. Dattatraya
Krishnaji Karani [AIR 1966 SC 1024 : (1966) 1 SCJ 601]
a three-Judge Bench of this Court considered the
question whether the premises are land or whether they
are a building or garden, grounds, etc. appurtenant to
the building. In that case, as in the present case, the land
was given on rent to the tenant who constructed building
at his own costs before the execution of the rent note.
The question arose under Section 13(1) of the Bombay
Rents, Hotel and Lodging House Rates Control Act (for
short “the Bombay Act”); if the demised land was
“premises” within the meaning of the Bombay Act, the
landlord was entitled to recover its possession for
construction of the building on satisfying the court that
he required it reasonably and bona fide for construction
of a building. On consideration of the definition of
“premises” which is similar to the definition of the term
in the Delhi Act, it was held that it referred to the
subject-matter of letting for which rent was payable and
in respect of which there was a relationship of landlord
and tenant and, therefore, the land alone was the
subject-matter of letting and “premises” within the
meaning of Section 13(1)(i) of the Bombay Act.
It was held that in determining the question whether
the lease was of a vacant land or a building within the
meaning of the Madras Act the court must take into
account both the form and substance of the
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transaction; the landlord was aware that there were
certain structures on the land but what was let out was
not the structures but the land. Consequently, the
appeal of the tenant was dismissed on the ground that
the Madras Act was not applicable and the suit was
maintainable in the civil court.”
26. In A Satyanarayan Shah v. M. Yadgiri, (2003) 1 Supreme Court Cases
138, the question was whether, a wooden structure which is in the nature of a
permanent structure standing on the land having walls and roof would
constitute a building. The Court observed that the structure needs to have
some sort of permanency and should be capable of some use either residential
or non-residential, and in any case, the same depends on facts and
circumstances of each case. The relevant portion is set out below:
“8. The learned counsel for the appellant has placed
reliance on a decision of this Court in Suryakumar
Govindjee v. Krishnammal [(1990) 4 SCC 343] wherein
pari materia definition of “building” contained in
clause (ii) of Section 2 of the Tamil Nadu Buildings
(Lease and Rent Control) Act, 1960, came up for the
consideration of this Court wherein the structure was
described as “kaichalai”, a Tamil word denoting a
structure or a roof put up by hand. This Court held that
whatever may be the precise meaning of the term
“kaichalai”, it was clearly included in the definition of
building. The expression “hut” cannot be restricted
only to huts or cottages intended to be lived in. It will
also take any shed, hut or other crude or third-class
construction consisting of an enclosure made of mud or
by poles supporting a tin or asbestos roof that can be
put to use for any purpose — residential or non-
residential, in the same manner as any other first-class
construction. Certain observations made by this Court
in Ashok Kapil v. Sana Ullah [(1996) 6 SCC 342] are
also apposite, wherein the term “building” as defined in
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the U.P. Urban Buildings (Regulation of Letting, Rent
and Eviction) Act, 1972 came up for the consideration
of this Court. The definition is not similarly worded.
However, during the course of its order, this Court
quoted with approval Stroud's Judicial Dictionary (Vol.
1, 5th Edn.) stating that “what is a building must
always be a question of degree and circumstances”.
Again citing with approval Victoria City Corpn. v.
Bishop of Vancouver Island [(1921) 2 AC 384 : 90 LJPC
213 (PC)] and quoting therefrom this Court approved
(at SCC p. 346, para 11) the observation of a celebrated
lexicographer that “the ordinary and natural meaning
of the word building includes the fabric and the ground
on which it stands”. Black's Law Dictionary (5th Edn.)
was also cited with approval, which gives the meaning
of the building as “a structure or edifice inclosing a
space within its walls, and usually, but not necessarily,
covered with a roof”. A roofless structure was held to
be a building.
“9. On the authority of the abovesaid decided cases, it
can be concluded that the term “building” has to be
interpreted liberally and not narrowly. In our opinion,
a wooden structure, which is in the nature of a
permanent structure standing on the land and which has
walls and roof though made of wood, would fall within
the definition of building as defined in clause (iii) of
Section 2 of the Act. In the context in which the term
“building” has been used and keeping in view the
purpose of the Act, the term “building”, as defined,
ought to be so interpreted as to include therein a
structure having some sort of permanency and capable
of being used for residential or non-residential
purpose.
10. For two reasons, we are clearly of the opinion that
the High Court has erred in disposing of the revision in
the manner it has done. Firstly, the High Court was not
right in holding the permanent wooden structure
standing on the land falling outside the definition of
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building. Secondly, whether the wooden structure
forming the subject-matter of tenancy premises in the
present case, fell within the definition of building or not,
was a mixed question of law and fact. That it was not a
building within the meaning of Section 2(iii) of the Act
and, therefore, the proceedings for eviction therefrom
did not lie before the Controller was not the plea taken
in the written statement and never even up to this Court
when vide order dated 31-7-1998, this Court remanded
the matter to the High Court. The plea should not have
been allowed to be raised for the first time before the
High Court in the revision petition and that too at such
a belated stage.”
27. In Harish Chandra Narula & Anr. v. Shri Purshotam Lal Gupta,
2011 SCC OnLine Del 1185 , the ld. Single Judge of this Court held that since
there was only a temporary structure, at the very best, the Defendant cannot
be said be a tenant so as to get protection of the DRC Act. In Surinder Kumar
(supra) , the ld. Single Judge relied upon the decision of the Delhi High Court
in Gobind Sahai v Narain Dass Ors. ILR (1972) 1 Delhi which held that
whether a property is building or not depends on facts and circumstances of
each case. The Court further observed that a vacant piece of land, if
appurtaining to and forming part of a building, is included within the
definition of ‘premises’ while an open and vacant land not so appurtaining
cannot constitute a building and is outside the connotation. The relevant
portion is as under:-
“As a result of the analysis of the provisions of the Rent
Act and study of the authorities mentioned above, my
conclusions on the subject are summarised as follows:
1. Whether or not a property is a building is primarily a
question of fact depending upon the circumstances of
each case and upon the form and substance of each
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transaction of letting. Still certain guidelines may
broadly be adopted.
2. Premises is a building or part of a building which is
separately let out for use. A building consists of a piece
of land with super-structures which are habitable and
are let out for a useful purpose like residence,
commercial use or other normal and reasonable
purposes.
3. A vacant piece of land, if appertaining to and forming
part of a building, is included within the definition of
‘premises’ while an open and vacant land not so
appertaining cannot constitute a building and is outside
the connotation.
4. The land bounded by walls and covered by a roof and
capable of being used for a useful purpose is normally
a building.
5. The existence of boundary walls is not decisive of the
matter as they may be erected to demarcate the
boundaries of the land or to support a shed or a roof or
for any other purpose.
6. A roofless structure would ordinarily not constitute
a building unless it is established as a fact that the
same was capable of being and was intended to be used
as such without a roof, for example, an open air
restaurant, a swimming pool etc .
7. The erection of superstructures by a tenant after the
letting is irrelevant for determination of the question as
to whether what had been let out by the landlord
constitutes premises.”
28. In the above case, a plot of land was given out on rent, which only had
a boundary wall and there was no construction on the same. The ld. Trial
Court held that the same would not constitute premises for the purpose of
protection under the DRC Act. This decision was upheld by the first Appellate
Court as also by this Court.
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29. In ELCEE Plastic Industries & Ors. v. Harkishan Dass (Since
Deceased) through its Lrs., 2017:DHC:5662 a land which had a boundary
wall built was again held to be not a premises under the DRC Act. The Court
observed that premises under the DRC necessarily has to be a constructed
building and merely a built up boundary wall around the land will not make
it a premise. The relevant portion of the judgment is extracted below:
“9.(i) In my opinion, the argument urged on behalf of
the appellants/defendants that what is let out to them are
premises under the Delhi Rent Control Act is a totally
frivolous argument. It is seen that the
appellants/defendants/tenants are in a completely
dishonest manner contesting the subject suit for
possession which was filed way back on 12.10.1993, i.e
soon after expiry of the 20 years period of the lease deed
in terms of the lease deed entered into between the
parties, and today we are in the year 2017 i.e 24 years
later. For 24 years, dishonest tenants such as the
appellants/defendants have harassed and illegally
prevented taking of possession by the
respondents/plaintiffs of the suit premises. In my
opinion, the argument urged on behalf of the
appellants/defendants/tenants is puerile that if there is a
boundary wall constructed along with a land than what
is let out is premises as the Delhi Rent Control Act
because for this reason of construction of boundary wall
there comes into existence a premises under the Delhi
Rent Control Act. Obviously, this Court expects no
differently from dishonest tenants who somehow or the
other want to continue in possession of the tenanted
premises after expiry of a lease deed and are using the
delays of litigations for their benefit. Merely because
the lease deed uses the expression “premises” will not
mean that there will exist a premises under the Delhi
Rent Control Act because premises under the Delhi
Rent Control Act necessarily has to be a constructed
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building. The terms of the lease deed clearly show
that what is let out is only land. Merely because a
boundary wall is built around the land there will not
exist a premises. ”
30. A similar view was taken in Sanjay Gupta v. Sunil Kumar Gupta, 2018
SCC OnLine Del 12266, where the Court held that a structure without walls
and only an open tin shed will not fall under the definition of building. The
same was observed in the following terms:-
“10. Hence, a structure with walls specially which is a
permanent structure would normally qualify to be a
building. In the present case as noted above, the
building comprises only an open tin shed and nothing
more. It has no walls. It has no permanent structure.
15. What follows from the above is that where an open
land is given on rent which may also include some
temporary khoka or structure the same would not
amount to a premises within the meaning of Section 2
(i) of the Delhi Rent Control Act. The DRC Act would
not be applicable to such premises. Open land is not a
subject matter of the Delhi Rent Control Act.
18. Hence, in those facts the court came to the
conclusion that the tenancy consisted of an open land
which does not fall within the purview of section 2(i)
of the DRC Act and cannot be called a building. Even
if it is presumed that a tin shed existed and it was
appertaining to the open land it would not fall within
the definition of premises . The Court further concluded
that any hut or shed which is only adjacent,”
31. In Edward Keventers ( Successors) Private Limited v. Union of India
etc, 1983 SCC OnLine Del 30, the Court has clearly observed that the
question is as to whether a particular structure is a building or not would have
to be decided on the facts of each case. The Court went on to observe as under-
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“19. Considering all these citations, it seems to me that
the question whether a structure is a building or not is
a question to be answered on the facts of each case . It
can not have a fixed connotation and varies from
country to country, from place to place according to the
climatic conditions, availability of materials for
building purpose and the habits and notions of the
people with regard to their residence: Dalchand v. Debi
Prasad, AIR 1966 S.C. 1998 (34). And in the facts of this
case, I am unable to subscribe to the argument that the
temporary tin shed or construction without foundation
and without brick and stone will strictly not be a
building. To my mind, the ordinary and usual meaning
which is contemplated by the lease deed will be any
structure enclosing the space within its walls with or
without roof, if the structure is designed for
inhabitation or shelter, storage, trade. Manufacture,
worship business, teaching and the like .”
32. The principles that can be carved out from the above decisions clearly
is that a roof may not be required for any property to constitute the premises
or a building, however, open spaces cannot constitute premises. Sense of
permanency is required for any property to be termed as a “premises” or a
“building”. Moreover, it is crucial to consider the condition and structure of
the property at the time of leasing. This includes assessing whether any
structures existed at the commencement of the tenancy agreement, or if any
were erected after the agreement was executed. This consideration is essential
for determining what constitutes a “building” and “premises” under the DRC
Act. Ultimately, it would depend upon facts and circumstances of each case.
33. In the present case, the parties themselves understood the property to
be a ‘space’. The term “space” refers to an open area with no specific
boundary or demarcation. The space which was given is admitted i.e., it is
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merely 15/6 ft. There is neither any roof nor any covering. It is just an area to
keep a gen-set or some equipment related to the Air-conditioning units. Such
a space cannot by any stretch of imagination, be argued as constituting a
premises or a building. It cannot be used for any other purpose except for the
purposes of placing a genset or installing some outdoor units connected to
split Air conditioners. It is not even a storage area or a storage space. The
property in question, therefore, does not fall within the purview of DRC Act.
34. In addition, the relationship between Plaintiffs and the Defendant was
not that of landlord and tenant. As far as this space is concerned, the
Defendant is merely a permissive user of the property. As held in Mohd.
Farooq v. Mubassara and Anr., 2014:DHC:997 RSA No. 107/2013 , a
permissive user of this nature would not constitute tenant and would only be
a licencee. The relevant portion of the said judgment is set out below:-
“ 2. The only issue which was to be decided was as to
whether the appellant/defendant was a licencee or was
a tenant as contended by him.
The first appellate court has referred to the fact that
neither there was any rent agreement nor any rent
receipt relied upon by the appellant/defendant.
The first appellate court also notes conflicting defences
raised by the appellant/defendant as to whether rent
included electricity and water charges or not, noting
that in the pleadings the appellant/defendant pleaded
that rent was exclusive of other charges, however, in the
evidence he took up a case that rental charges included
electricity and water charges. So far as the issue of
exclusive possession is concerned, the first appellate
court relied upon various judgments of this Court and
held that exclusive possession in the facts of the present
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case is not such to hold that tenancy rights existed in
favour of the appellant/plaintiff. The relevant
observations of the first appellate court are contained in
paras 12 to 17 of the impugned judgment and which
read as under:-
“12….
13. In the case of Prem Pal Singh versus Jugal
Kishore Gupta (supra), the plaintiff therein had
contended that the defendant was a licensee but the
defendant contended that he was a tenant under the
plaintiff and that the suit for possession was barred
under section 50 of the Delhi Rent Control Act. Issue
No.2 framed in the said matter was whether the
defendant was a tenant in the suit premises and the
suit was barred under section 50 of the Delhi Rent
Control Act. The defendant did not produce any rent
agreement or rent receipt and the learned Trial Court
concluded that the relationship was of licensor and
licensee and decided the said issue against the
defendant. In appeal the Division Bench of the
Hon'ble High Court upheld the finding of the learned
Trial Court and held in para 3 as under:
"3. As noted above, on the second issue the defendant
has not led any documentary evidence except his own
statement that he was the tenant. He admits that he
has no document to show that he was tenant in the
premises. Tenancy rights are created by contract
under the statute being the Transfer of Property
Act and Court has to be satisfied that there in fact a
tenancy existed, and when landlord denies the same a
mere statement of the tenant may not be enough. Mr.
Chopra has also referred to a judgment of the
Calcutta High Court in shore note in Satinath
Mukherjee V. Satlendra Nath Sen alias Aailen Sen.
AIR 1991 NOC 55 (Calcutta), to contend that to
prove the tenancy it is not necessary to prove an
agreement, That of course, will depend up to the
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facts of each case and the evidence that may be led
in a case. In the present case the defendant has been
unable to prove that he had been a tenan t."
(emphasis added)
14. The judgment in the case of Prem Pal
Singh (supra) was followed by the Hon'ble High
Court in the cases of Praveen Narang (supra) in
which the Hon'ble High Court in para 18 reiterated
that a "mere statement of the defendant that he is a
tenant in the suit property without producing any
document in support thereof cannot be accepted as
sufficient proof of tenancy." In the case of Mahabir
Prasad Jain versus Ganga Singh (supra) the
Hon'ble Supreme Court was pleased to hold in para
14 that "exclusive possession by itself will not give
rise to any presumption of tenancy . ”
35. For both these reasons the DRC Act would not apply. The suit property
does not fall within the definition of ‘premises’ under Section 2(i) of the DRC
Act and the Defendant is also a mere permissive user of the suit property.
Whether the suit is not maintainable due to non-impleadment of the sister?
36. The second issue raised by the Defendant is that all the co-owners were
not made a party in this suit. This is a completely untenable plea as the owner
was Late Mr. Y.N. Gupta, who had three children. Two sons were initially the
Plaintiffs. Thereafter, an application was filed by Mrs. Anjeli, daughter of
Late Shri Y.N. Gupta seeking impleadment in the present suit. This
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application was allowed on 11 December, 2023 and she was impleaded as
Plaintiff No. 3. In the said application, she categorically asserts that she is a
necessary party being the daughter of Late Shri Y.N. Gupta. During oral
submissions, it is submitted by ld. Counsel for Plaintiff No. 3 that she has
supported the eviction of the Defendant.
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37. Defendant has relied upon Shri. Ranbir Yadav v. Life Insurance
Corporation of India, 2018 SCC OnLine Del 11287 , to argue that the suit
which is not supported by all co-owners is not maintainable. Reliance is also
placed upon Navin Chander Anand v. Union Bank of India & Ors. 2018
SCC OnLine Del 9902 to the effect that one co-owner cannot terminate a
tenancy. However, in this very decision, the Court has considered the
judgment in Om Prakash & Anr. v Mishri Lal (2017) 5 SCC 451 and
observed as under:-
9. The argument urged on behalf of the
appellant/plaintiff by placing reliance upon the
judgment in the case of Om Prakash (supra) is
completely misconceived because the judgment of the
Supreme Court in the case of Om Prakash (supra) as
also the judgments which are referred to in para 32 in
the judgment, only lay down the ratio that one co-owner
can file a suit for eviction against a tenant if there is
no opposition of the other co-owners/co-landlords.
This is the settled law because in the proceedings for
eviction under various Rent Control Acts, any one co-
owner can seek possession of the tenanted premises in
case there is no opposition to the sole
petitioner/plaintiff taking possession of the tenanted
premises from the tenant by the other co-owners/co-
landlords of the property. However in the present case
the other co-owners, being defendant nos. 2 to
5/respondent nos. 2 to 5, have in fact opposed the
termination of tenancy and also of the appellant/plaintiff
seeking possession and mesne profits of the tenanted
premises through the subject suit. Therefore, what will
apply in the facts of the present case will be the ratio of
the judgments of the Supreme Court in the cases of Sk.
Sattar Sk. Mohd. Choudhari (supra) and Jagdish Dutt
(supra) and not the ratio of the judgment in the case of
Om Prakash (supra).
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38. Moreover, recently, in Khanna Jewellers and Ors. v. Kapil Tandon
and Ors.,RC.Rev. 599/2018 , 2021:DHC:88 the judgment in Shri. Ranbir
Yadav(supra) has been clearly distinguished. In Khanna Jewellers, the Court
rejected the contention that all co-owners should be Plaintiffs and observed as
under-
“30. Coming to the contention of the TENANT that the
Eviction Petition was not maintainable in the absence of
the consent of the other co-owners, the Rent Controller,
in the impugned judgment, has noticed that the legal
position, that even one of the co-owners/co-landlords
can file a suit for eviction of a tenant, has not been
disputed by the TENANT. The argument raised was that
the filing of the Partition Suit between the co-owners
showed that the consent, which is usually presumed
amongst co-landlords to file an eviction against a tenant,
stood dispelled.
31. The Rent Controller further held that, from the
proceedings before the Hon'ble High Court, it was
clear that all the parties to the Partition Suit were well
aware of the pendency of this Eviction Petition and
none had opposed or objected to these eviction
proceedings. The Rent Controller has further noticed
that Rajiv Tandon, the CO-OWNER, who was
impleaded in the Eviction Petition, neither objected to
the maintainability of the petition nor contended that
the eviction of the TENANT was not desired by him
also.
32. The Supreme Court of India in Kanta Goel versus
B.P. Pathak, (1977) 2 SCC 814 has held “that a co-
owner is as much an owner of the entire property as any
sole owner. Therefore, there is no substance in the
contention that the absence of the other co-owners
disentitled the 1st respondent from suing for eviction”.
33. In Dhannalal versus Kalawatibai, (2002) 6 SCC 16,
India Umbrella Manufacturing Co. versus Bhagabandei
Agarwalla (dead) by LRs Savitri Agarwalla, (2004) 3
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SCC 178 the Supreme Court of India held “that consent
of co-owner is assumed, unless it is shown that other
co-owner is not agreeable to eject the tenant and the
proceedings for ejectment are inspite of the
disagreement”.
34. The Supreme Court in Mohinder Prasad Jain versus
Manohar Lal Jan (2006) 2 SCC 724 has held that “a
suit filed by a co-owner, thus, is maintainable in law. It
is not necessary for the co-owner to show before
initiating the eviction proceedings before the Rent
Controller that he had taken option or consent of the
other co-owners. However, in the event a co-owner
objects thereto, the same may be a relevant fact.”
XXXX
41. The judgment in Ranbir Yadav versus Life Insurance
Corporation of India (supra), relied upon by learned
senior counsel for the TENANT, is not applicable to the
facts of the present case. As noticed above the CO-
OWNER has not objected to the eviction of the TENANT.
The stand of the CO-OWNER is only that exclusive
possession cannot be given to the EVICTION
PETITIONERS. Opposing eviction of the TENANT is
different from seeking joint or exclusive possession of
the tenanted premises, post eviction of the TENANT.”
39. A perusal of this decision would show that it is only when a co-owner
objects to the eviction that the plea as raised by the Defendant would be
tenable. The Defendant, who does not have any rights in the property cannot
be seen to take advantage of disputes between the co-owners to resist the suit
or the eviction. There may be a partition suit pending between the brothers
and the sister which may include the present suit property as well, but the
same would not permit the Defendant to take advantage of such inter se
disputes between co-owners. The daughter i.e., Plaintiff No.3 does not oppose
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the eviction of the Defendant. Thus, the contention of the Defendant is
meritless.
Valuation of the suit:
40. The last and final submission of the Defendant is that the suit has been
over valued only to maintain it before this Court. Reliance is placed upon the
decision of the ld. Supreme Court in Bharat Bhushan Gupta v. Pratap
Narain Verma and Another (2022) 8 SCC 333 , to argue that it is the nature
of relief claimed in the plaint which determines the valuation of suit. The
relevant observation is set out below:
“ 24. It remains trite that it is the nature of relief
claimed in the plaint which is decisive of the question
of suit valuation. As a necessary corollary, the market
value does not become decisive of suit valuation merely
because an immovable property is the subject-matter
of litigation. The market value of the immovable
property involved in the litigation might have its
relevance depending on the nature of relief claimed
but, ultimately, the valuation of any particular suit has
to be decided primarily with reference to the
relief/reliefs claimed .”
41. In Renu Nagar v. Anup Singh Khosla and Ors., 2009 SCC On Line
Del 46 , the Court was dealing with a property in Defence Colony and a suit
for mandatory injunction seeking removal of the Defendant from the premises
was filed. The Court observed that the suit has to be valued as pet the market
value of the property. The relevant portion of the judgment is extracted below:
“ 4. The observations of the trial court that the valuation
of the suit is mixed question of law and facts in this case
is very vague observations. The trial court had not given
reasons nor those facts involved in the case affecting the
valuation of the suit. The present suit has been filed by
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the plaintiff/respondent seeking mandatory injunction
for the petitioner to vacate the premises and hand over
the same to the respondent. It is obviously a suit for
possession and has to be valued accordingly. The
judgment of Division Bench of this Court in Ashok
Chaudhary v. Dr. (Mrs.) Inderjit Sandhu, 1998 AD
Delhi 917 : 1998 (47) DRJ 575 (DB) was brought to the
notice of the trial court. The trial court mentioned this
judgment in its order but did not follow the ratio of the
judgment. It is categorically stated in this judgment that
where a suit is filed by the owner against a licensee after
termination of license, the suit has to be valued on the
basis of market value of the property. The facts in Ashok
Chaudhary's case (supra) were similar to the facts of the
present case. In Ashok Chaudhary's case also the
licensee was a friend who occupied the premises with
promise to vacate on demand but later on he refused to
vacate the premises. This Court observed that the relief
of recovery of possession and declaration in a suit for
mandatory injunction cannot be considered a surplus-
age but it was a substantive relief. Therefore, Section
7(v) (e) of the Court Fees Act would be attracted to the
substantive relief and the suit has to be valued
accordingly i.e. the market value of the property.”
42. In Sushma Tehlan Dalal v. Shivraj Singh Tehlan & Ors.,
2011:DHC:1339 , the Court categorically holds that the averments in the
plaint has to be seen for the purposes of determining the valuation. The
relevant portion of the Plaint reads:
“12. In the present case, the plaintiff has specifically
alleged that she is in exclusive possession of house No.
2/28, Roop Nagar, Delhi and in joint possession of
certain other parts of the aforesaid house. Thus, the
plaintiff has undisputedly claimed joint possession with
respect to one of the properties in respect of which
partition has been sought by her. In my view, in order to
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constitute joint possession, it is not necessary that the
plaintiff should claim to be in joint possession of each of
the properties in respect of which partition is sought by
him/her. If she claims to be in joint possession of even
one of the properties either wholly or partly, that would
be sufficient to bring the case within the ambit of Article
7(iv) of Court-fees Act, because what is relevant is joint
possession of the estate in respect of which partition is
sought. The plaintiff is seeking partition not with respect
to any one property, but with respect to all the
properties which were owned by her late parents. If
partition is sought in respect of more than one property
and one of the co-owners possesses one property or a
part of it and the other co-owners possess the remaining
properties, all of them will be deemed to be in joint
possession of the properties subject matter of partition.
In this regard, the following observations made by this
Court in Sudershan Kumar Seth vs. Pawan Kumar Seth
& Ors. 124 (2005) DLT 305:
13. It is settled that in order to decide as to what relief
has been claimed by the plaintiff, the whole of the plaint
has to be read. From the perusal of the plaint if it can
be inferred that the plaintiff is in possession of the any
of properties to be partitioned, then the court fees shall
be payable under Article 17 (6) of Schedule II of the
Court fees Act i.e. fixed court fees at the time of
institution of the suit but if the conclusion is that the
plaintiff is not in possession of any part of the properties
then the plaintiff has to pay Court fees under section
7(iv)(b) of the Court fees Act i.e. on the value of
plaintiff's share.”
The ld. Supreme Court in Bharat Bhushan Gupta v.
Pratap Narain Verma and Another (2022) 8 SCC 333
has clearly observed that market value would be relevant
depending on the nature of the relief claimed.
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43. In Kamleshwar Kishore Singh vs. Paras Nath Singh & Others (2002)
1 SCC 304 the Court observed that the Court Fee has to be paid as per the
framed plaint and not how plaint ought to have been framed . The relevant para
reads as under:-
“8. It is well settled that the court fee has to be paid
on the plaint as framed and not on the plaint as it
ought to have been framed unless by astuteness
employed in drafting the plaint the plaintiff has
attempted at evading payment of court fee or unless
there be a provision of law requiring the plaintiff to
value the suit and pay the court fee in a manner
other than the one adopted by the plaintiff . The
court shall begin with an assumption, for the
purpose of determining the court fees payable on
plaint, that the averments made therein by the
plaintiff are correct. Yet, an arbitrary valuation of
the suit property having no basis at all for such
valuation and made so as to evade payment of court
fees and fixed for the purpose of conferring
jurisdiction on some court which it does not have, or
depriving the court of jurisdiction which it would
otherwise have, can also be interfered with by the
court. It is the substance of the relief sought for and
not the form which will be determinative of the
valuation and payment of court fee. The defence
taken in the written statement may not be relevant
for the purpose of deciding the payment of court fee
by the plaintiff. If the plaintiff is ultimately found to
have omitted to seek an essential relief which he
ought to have prayed for, and without which the
relief sought for in the plaint as framed and filed
cannot be allowed to him, the plaintiff shall have to
suffer the dismissal of the suit. These principles of
law were overlooked by the trial court in passing the
impugned order which was put in issue before the
High Court. We are further of the opinion that
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| though the revision preferred by the plaintiff was | |
|---|---|
| directed against the order dated 1-3-1997, the real | |
| question arising before the High Court was to find | |
| out whether the suit was properly valued and proper | |
| court fee was paid thereon in accordance with law. | |
| While doing so if the High Court was required to | |
| examine the correctness or otherwise of the order | |
| dated 17-12-1996 it should not have felt inhibited | |
| from doing so. In the facts of the present case we are | |
| clearly of the opinion that the High Court was not | |
| justified in dismissing the revision on the ground that | |
| the order dated 1-3-1997 was an order correcting a | |
| clerical or typing error only.” |
tenant but merely a licensee or a permissive user who is occupying some space.
Unless there is a complete lack of basis for valuation, the plaint cannot be
rejected. The initial space which was allotted was merely for keeping the gen
set. The Defendant has, thereafter locked up the premises without permission
by installing a tin gate with locks. The Defendant is nothing but an
unauthorised occupant and not a protected tenant. The photographs show that
the Defendant has illegally taken/ tried to claim possession of the courtyard
which was a common space, in an illegal manner. Any space of this nature,
especially, located in the prime commercial area of Connaught Place in New
Delhi is of immense monetary value. The valuation paragraph of the plaint
reads as under:-
“33. That the valuation of the present suit for the
purposes of Court Fee and jurisdiction is assessed as
under:
a) For the relief of Possession of said portion of the
Open Courtyard, the suit is valued at Rs. 2,05,00,000/-
(Rupees Two Crores Five Lakhs Only), being the
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present market value of the Suit Property, on which the
ad-valorem Court fee of Rs. 2,02,424/- has been paid;
b) For the relief of Permanent Injunction, the Suit is
valued at the fixed jurisdictional value of Rs. 130, on
which the prescribed Court fee has been affixed.
c) For the relief of Damages/Mesne Profits along with
interest claimed thereon, the Plaintiffs undertake to pay
the Court fee at the time of passing of the Decree.
The Plaintiffs have affixed a total Court Fees of Rs.
2,04,000/- (Rupees Two
Lakhs Four Thousand Only).”
45. A perusal of the above would show that the Plaintiffs have valued the
property as Rs. 2,05,00,000/- which in the opinion of the Court cannot be
termed as a case of forum-shopping. As argued by the Plaintiffs, the market
rate of such a space would be relevant in view of Section 7 (5) (e) of the Court-
Fees Act, 1870. The Court does not find this to be a case where valuation has
been done arbitrarily. The market value of the property would be much above
Rs.2 crores, of which judicial notice can be taken. The contention of the
Defendant is, accordingly, rejected. The prayers sought in the plaint are as
under:-
“i. Pass a Decree of POSSESSION in favour of the
Plaintiffs and against the Defendant in respect of said
portion of the Open Courtyard i.e. the portion
admeasuring approximately 90 Sq. Ft. (15 Feet x 6 Feet),
forming part of the Open Courtyard (40 Feet x 12 Feet),
situated behind the properties bearing No. E-15, E-16
& E-17 at E-Block, Connaught Place, New Delhi -
110001, as shown in 'Red' colour in the site plan
annexed herewith;
ii. Pass a Decree of PERMANENT INJUNCTION in
favour of the Plaintiffs and against the Defendant, its
agents, servants, nominees, executors, administrators or
anybody acting on its behalf thereby restraining them
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from sub-letting, parting with possession or inducting
any third party or creating any interest in favour of
anybody else or from carrying out any construction
and/or additions/alterations in the Suit Property, i.e. the
said portion of the Open Courtyard, shown in Red
Colour in the Site Plan annexed herewith, until handing
over of the peaceful vacant possession thereof to the
Plaintiffs;
iii. Pass a Decree of MESNE PROFITS/Damages at the
rate of Rs. 1,00,000/- (Rupees One Lakh Only) per
month in favour of the Plaintiffs and against the
Defendant, from the date of institution of the present suit
till the date of delivery of vacant peaceful possession of
the said portion of the Open Courtyard;”
46. The application i.e., I.A. 20903/2022 along with the suit is, accordingly,
decreed in terms of prayer 1 and 2 of the plaint. Let the possession be
handed over by the Defendant to the Plaintiffs of the space which is in its
possession within 4 weeks, failing which the Plaintiffs are permitted to seek
appointment of a Local Commissioner for taking possession of the suit
property. List the suit on 30th July, 2024 for further proceedings.
I.A. 9443/2020
47. The present application has been filed on behalf of the Plaintiffs under
Order XXXIX Rules 1 and 2 seeking interim injunction against the Defendant
from creating any third-party rights as also any other inter alia reliefs in the
suit property.
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48. In the present application the order dated 16 October, 2020 restraining
the Defendant from creating any third-party rights or alienating the suit
property is confirmed till possession is handed over by the Defendant to the
Plaintiff as directed above.
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I.A. 3760/2023
49. This is an application filed on behalf of the Defendant seeking rejection
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of the plaint. The present application was disposed vide order dated 24
February, 2023, wherein the suit was re-numbered as a Commercial Suit. The
said application be not listed further.
I.A. 9444/2020 IN CS(COMM) 125/2023
50. This application has been filed on behalf of the Plaintiffs under Order
XV-A seeking deposit of Rs. 1,00,000/- per month by the Defendant during
pendency of the present suit. The present application be listed before the roster
bench along with the suit.
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51. List on 30 July, 2024 for further proceedings.
PRATHIBA M. SINGH
JUDGE
JULY 03, 2024
mr/ks
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