Facts
The parties entered into a Leave and Licence Agreement dated 27 July 2018 for operation of The Connaught hotel.
Source reference: para. 2–4The Plaintiff claimed that COVID-19 restrictions and related circumstances triggered the Agreement’s force majeure clause, excusing payment of licence fees for specified periods and extending the licence term.
Source reference: para. 2–4It sought declarations concerning those rights and adjustment of amounts already paid.
Source reference: para. 2–4The Defendant applied under Order VII Rule 11 CPC to reject the plaint, alleging, among other grounds, failure to give notice under Section 385 of the New Delhi Municipal Council Act, 1994 (NDMC Act), limitation, the bar under Section 15 of the Public Premises (Eviction of Unauthorized Occupants) Act, 1971, and failure to seek consequential relief under Section 34 of the Specific Relief Act, 1963.
Source reference: para. 6–7The Plaintiff had sent a notice dated 14 November 2025, labelled as a notice under Section 80 CPC.
Source reference: para. 19Issues
1. Whether the notice dated 14 November 2025 satisfied the requirements of Section 385 of the NDMC Act despite being labelled as a notice under Section 80 CPC.
Source reference: para. 19–252. Whether the plaint was liable to be rejected as barred by limitation, including under Section 385(2) of the NDMC Act and Article 58 of the Limitation Act, 1963.
Source reference: para. 26–303. Whether the suit was barred by Section 15 of the Public Premises Act or was defective for failure to claim consequential relief under Section 34 of the Specific Relief Act.
Source reference: para. 31–324. Whether, on the plaint and material considered at this stage, any ground for rejection under Order VII Rule 11 CPC was established.
Source reference: para. 33–35Law Applied
Section 385(1) of the NDMC Act requires prior written notice stating the cause of action, relief sought, compensation claimed, and plaintiff’s name and residence before a suit concerning an act done or purportedly done under the Act may be instituted; Section 385(2) prescribes a six-month period for such suits, subject to its stated exceptions.
Source reference: p. 8The substance and contents of a notice, rather than its label, determine whether it meets statutory requirements.
Source reference: para. 23–24Under Order VII Rule 11 CPC, the plaint must be read as a whole, and rejection is justified only where a statutory ground is established from its averments; the defendant’s case cannot substitute for that inquiry.
Source reference: para. 34Limitation may involve a mixed question of law and fact where the asserted cause of action depends on later events.
Source reference: para. 29The Court also considered Clause 20.3 of the Agreement, requiring an attempt at amicable resolution, and the statutory provisions invoked under the Public Premises Act and Specific Relief Act.
Source reference: para. 27, 31–32Reasoning
The Court found that the 14 November 2025 notice set out the dispute, cause of action, relief sought, and Plaintiff’s particulars, and therefore met Section 385’s substantive requirements despite its Section 80 CPC label.
Source reference: para. 19, 23–25On limitation, although the Defendant relied on an earlier rejection in 2022, the record referred to subsequent correspondence and amicable-resolution efforts, including communications in 2025.
Source reference: para. 27–30Whether those events gave rise to a fresh cause of action was not determinable at the rejection stage and was left for trial.
Source reference: para. 27–30The Court held that the suit concerned enforcement of contractual rights, not eviction proceedings, so Section 15 of the Public Premises Act was not attracted.
Source reference: para. 31It also accepted that, on the Plaintiff’s case, the amount remained to be crystallised following the declaration sought and no relevant demand notice had been issued, so the proviso to Section 34 did not warrant rejection at this stage.
Source reference: para. 32Applying the restrictive Order VII Rule 11 standard, the Court declined to reject the plaint.
Source reference: para. 33–35Holding
The Court held that the notice substantially complied with Section 385 of the NDMC Act and that limitation could not be conclusively determined on the application; the other asserted bars did not justify rejection of the plaint at this stage.
The Defendant’s Order VII Rule 11 application was rejected, and the suit was directed to be listed before the Roster Bench on 2 November 2026.
Source reference: para. 36–37Acts & Sections Cited
8 provisions across 6 statutes referred to in this judgment. Each provision opens on LawLens.
Code of Civil Procedure, 19081
Delhi Municipal Corporation Act, 19572
Limitation Act, 19631
New Delhi Municipal Council Act, 19942
Public Premises (Eviction of Unauthorised Occupants) Act, 19711
Specific Relief Act, 19631
Original Court PDF
The Indian Hotels Company LtdvsNew Delhi Municipal Corporation
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