M/S ESPIRE INFOLABS PVT LTD vs. SADHANA FOUNDATION

Case Type: Civil Appeal

Date of Judgment: 09-12-2019

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Full Judgment Text

NON­REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(S). 9265 OF 2019
(@SPECIAL LEAVE PETITION (CIVIL) NO. 3885 OF 2018)
M/S ESPIRE INFOLABS PVT LTD…APPELLANT(S)
Versus
SADHANA FOUNDATION…RESPONDENT(S)
J U D G M E N T Deepak Gupta, J.
Leave granted.
2.The present appeal arises from a claim of the landlord –
respondent herein, claiming rent for the period 01.11.2015 to 31.01.2017.  We may point out that another petition was filed by the   landlord   claiming   rent   for   the   period   01.01.2013   to 30.10.2015.   The landlord claimed rent @ Rs.18,43,900/­ per month relying upon the lease deed dated 01.01.2013.  The stand 1 of the tenant – appellant herein, is that, in fact, there was a subsequent   registered   lease   deed   dated   01.09.2015   which   is effective from 01.03.2015 in which the rent is @ Rs.7,50,000/­ per month.  In addition thereto, it is claimed that as per Clause 1(c) of the registered lease deed dated 01.09.2015, the tenant was entitled to spend an amount of Rs.9 crores for developing the infrastructure   in   the   tenanted   premises   and   was   entitled   to adjust the same against the rent.
3.In the eviction petition the Rent Controller determined the
provisional rent @ Rs.7,50,000/­ per month.   The Punjab and Haryana High Court confirmed the order of the Rent Controller and the SLP filed against the same was dismissed by this Court. As far as the registered lease deed of 2015 is concerned, Clause 1(c) of the same reads as follows:­
“1(c)In order to avoid any dispute it is hereby agreed
by and between the parties to these presents, that as
mentioned hereinabove, the Lessor had handed over the
said premises to the Lessee or bareshell basis and THE
LESSEE has agreed to do all the internal work in the
Demised Premises including furnitures and fixtures, air
conditioning, lighting, flooring, false ceiling, bathroom
etc. so as to bring it to the standard of and International
Class IT Office. It has been agreed between the Lessor
and the Lessee that the Lessee shall bear the cost of the
same which shall be approximately 9 Crores. This
amount will be payable by the Lessor to the Lessee and
the Lessee shall adjust the same from the rent due to the
Lessor till the entire amount is paid. Hence the Lessee
will not be liable to pay any rent to the Lessor unless it
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has recovered the entire amount of approximately 9
Crores from the rent due to Lessor.”
After the first petition was decided, the second petition was filed claiming rent for the period, 01.11.2015 to 31.01.2017.  The Rent Controller again fixed the provisional rent @ Rs.7.50 lakhs per month and the High Court relying upon the earlier orders has upheld the same.  This order is in challenge before us.
4.Mr. Maninder Singh, learned senior counsel for the
appellant submits that as per Clause 1(c), the tenant is entitled to adjust the amount payable to the landlord and that by now more than Rs. 3 crores have been paid, and in case the entire amount is paid, the appellant will have no way of recovering this amount, if it is finally held that the tenant is entitled to adjust the rent against the  amount spent.    He  also urged  that in the   earlier petition the tenant had not placed on record any material to show the amount of money spent for developing the infrastructure but in this petition such material has been placed on record. He also made various other submissions with regard to the relationship between the parties but we are not going into the same.  On the other hand, Mr. Prashant Bhushan, learned counsel appearing for the respondent submits that the lease deed of 2013 should be 3 relied upon and  cannot be ignored at  this stage.   He  further submits that even if rent of Rs.7.50 lakhs has to be paid, the respondent   Trust   cannot   be   deprived   of   this   rent.     He   also submits that the second lease deed was executed on behalf of the Trust by one Shri Ajay Sharma.  According to him, Ajay Sharma is the same person who had signed the lease deed of 2013 and Ajay  Sharma  was   removed  as   the   Trustee   of   the   Trust  much before the lease deed of 2015 was executed and registered.  On the other hand, Mr. Maninder Singh contends that, in fact, Ajay Sharma’s removal is not proper and he is fully empowered to execute and register the sale deed.  
5.There are various disputed issues involved. At the outset,
we may  note  that the  lease deed  of 2013 relied upon by the landlord is an un­registered one, and we are not sure if it is properly stamped and, therefore, at this stage the said lease deed cannot be relied upon, being inadmissible in evidence. The first issue is whether the lease deed of 2013 or the lease deed of 2015 will govern the rights of the parties.  The second issue is whether Shri Ajay Sharma was a trustee and entitled to execute the lease deed of 2015.  The third issue would be that even if the lease deed of 2015 governs the rights of the parties, what amount has been 4 spent by the appellant.  Here, it would be pertinent to add that whereas in the first petition the appellant had led no evidence to show   that   he   had   spent   any   amount,   in   this   petition   some material has been placed on record.  However, all this will have to be tested by leading evidence.  We are of the view that all these contentious issues cannot be decided at this stage.  Evidence will have to be led by the parties to prove their case.  Equities must be balanced at this stage, and we feel that the equities must be balanced in such a manner that when the final petition is decided both the parties should not be put to loss.
6.In view of the above, we dispose of this appeal with the
following directions :­
(i)That after the period of the first eviction petition in
which it has been held that Rs.7.50 lakhs per month should be paid   by   the   tenant   as   provisional   rent,   we   direct   that   w.e.f. 01.11.2015, the tenant shall be liable to pay rent @ Rs.3.75 lakhs per month;
(ii)This order shall be complied with till the proceedings
are finally disposed of by the Rent Controller and the landlord shall not be required to file any separate eviction petition for the subsequent periods; 5
(iii)We direct that the tenant shall deposit rent @ Rs.3.75
lakhs   per   month   from   01.11.2015   till   30.11.2019,   after adjusting   any   payment   which   may   have   been   made   by 31.01.2020.
(v)The tenant shall also furnish tangible surety in a sum
of Rs.3 crores to the Rent Controller so that if the case is decided against the tenant, the landlord does not have to run after him to collect the money.
(vi)The Rent Controller is directed to take up the matter
on an urgent basis and, if necessary, try the same on day­to­day basis and dispose of the same within 6 months from today.
7.With the above directions, the Civil Appeal stands disposed
of.  Pending application(s) if any, shall also stand disposed of.
…………………………….J.
(S. ABDUL NAZEER)
……………………………..J.
(DEEPAK GUPTA)
New Delhi
December 09, 2019
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