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Delhi High Court Affirms Eviction Order in Delhi Rent Control Act Dispute, Rejects Petition on Bona Fide Requirement Claim

Delhi High Court Affirms Eviction Order in Delhi Rent Control Act Dispute, Rejects Petition on Bona Fide Requirement Claim 

Case Name: Scon Financial Services Pvt Ltd v. S C Kaura  

Case No.: RC.REV. 358/2023 

Dated: May 15,2024 

Quorum:  Justice Girish Kathpalia  

 

FACTS OF THE CASE: 

The present respondent filed an eviction petition against the petitioner under Section 14(1)(e) of the Act, claiming to be the owner of the ground floor flat at 49, Basant Enclave, New Delhi (henceforth referred to as “the subject premises”). The petitioner claimed that, by virtue of a rent agreement, the petitioner (previously known as M/s Sarein Consultants Pvt. Ltd.) was inducted as a tenant in the subject premises with effect from 01.12.1988 for the general manager, Mr. Shiv Kumar Vasesi, for residential purposes.  

The rent for the petition was Rs. 2,420/-per month, excluding water and electricity charges. He currently has a legitimate need for the subject premises as a place to live and doesn’t have access to a suitably adequate substitute. Due to his marital strife, he had been living with his sister in the government housing that was assigned to her. 

 However, on December 31, 2004, when she retired, they moved into her Dwarka flat. He wedded Ms. Promila on July 23, 2005, following the breakdown of his first marriage, and he retired from the military on August 31, 2005. He had been living in several rented properties with his wife since May 2011, during which time she also passed away.  

The tenant/petitioner submitted an application for leave to contest after receiving the summons in the prescribed format. In it, they made a wide claim that the respondent/landlord had hidden not only his property but also all other properties, including his dwelling property in New Delhi. The respondent/landlord’s demonstration of a non-genuine demand for the subject premises is demonstrated by the concealing of the additional accommodations that are available to him.  

After considering all sides of the argument, the petitioner/tenant submitted a rebuttal to the application for leave to contest. The learned Additional Rent Controller then issued the contested order, denying the petitioner/tenant the opportunity to appeal the proceedings. 

 LEGAL PROVISIONS: 

  • Section 25B(8) of the Delhi Rent Control Act- Vacant possession to landlord. In spite of any other laws that may be in place, if a tenant’s interest in a property is determined for any reason and an order is made by the Controller under this Act to recover possession of the property, all parties who may be occupying the property must abide by the terms of section 18, and the landlord will obtain vacant possession of the property by evicting all such parties from it. However, nothing in this section will apply to any parties who have an independent title to the property. 

 CONTENTIONS OF THE APPELLANTS:  

The learned counsel for the appellant argued that from a legal standpoint, the contested order cannot stand. The petitioner, who is also the tenant, contended that the petition is not legitimate since the landlord, who is the respondent, failed to reveal his affiliation with the Green Park property. The respondent, or landlord, filed rent deeds displaying his dwellings in leased premises, but the learned counsel for the tenant/petitioner further contended that as the documents were not registered or stamped, the learned Additional Rent Controller should have seized them. 

He also contended that the contested order is unsustainable. On behalf of the petitioner/tenant, it was contended that the petition lacked genuineness because the landlord/respondent failed to reveal his relationship to the Green Park property. The learned attorney representing the tenant/peter further contended that since the respondent/landlord’s rent deeds, which list his houses on leased property, are not stamped or registered, the learned Additional Rent Controller should have seized them. 

 CONTENTIONS OF THE RESPONDENTS: 

The learned counsel for the respondents argued that the current petition is without merit and backed the contested eviction decision. After walking me through the opposing pleadings, the learned counsel for the respondent/landlord cited the order dated 18.12.2023 of the previous bench in support of his argument that the petitioner/tenant had not presented any evidence at all to support a leave to contest request, even though notice of the current proceedings had been given to them on the limited portion of the Green Park property.  

To bolster his contention that a tenant cannot be granted permission to contest based solely on unsubstantiated allegations, the landlord’s/respondent’s knowledgeable legal representative cited numerous court rulings, such as Abid-Ul-Islam vs. Inder Sain Dua, 2022 (6) SCC 30; Hari Shankar vs. Madan Mohan Gupta, 111 (2004) DLT 534; and Suresh Chand vs. Vijay Shankar, 2024.  

Even though the petitioner/tenant had been informed of the current proceedings on the limited portion of the Green Park property, the learned counsel for the respondent/landlord cited the order dated 18.12.2023 of the previous bench to support his argument that they had not provided any evidence at all to support a leave to contest request. 

COURT’S ANALYSIS AND JUDGMENT: 

The court reviewed in terms of the legal position, the respondent/landlord claims that merely making bald assertions without providing any evidence is insufficient to allow permission to challenge the issues of a bona fide requirement and the existence of a reasonably appropriate alternative lodging.  

The court further pronounced that the petitioner/tenant contends that only the allegations made in the affidavit requesting permission to contest are sufficient to create a triable issue; in support of this claim, the petitioner/tenant’s skilled counsel cited the ruling made by the Honourable Supreme Court.  

The tenant’s averments in the affidavit requesting leave to contest must be supported by some credible evidence, according to the court’s considered opinion. If this were not the case, clever affidavit drafting would inevitably result in the grant of leave to contest, defeating the very purpose for which Chapter IIIA was added to the Act in 1976. 

Regretfully, our judicial system does not guarantee the prompt determination of cases. Under the Delhi Rent Control Act, a tenancy lawsuit may take over ten years, or even longer, to get a final verdict.  

Regarding the Green Park property, the petitioner/tenant entered into the record of the current proceedings a few carefully chosen documents from previous court cases involving the Green Park property and Smt. Promila, the now-deceased wife of the respondent/landlord, who was a party to those cases.  

Lean legal counsel for the petitioner/tenant attempted to portray the respondent/landlord as having acquired a stake in the Green Park property following the death of his wife by using those handpicked documents.  

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Judgment reviewed by Riddhi S Bhora 

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Allegations of Illegal Eviction Remain Unresolved: Supreme Court

Case title: Sanjay Maruti Jadhav v. Amit Tatoba Sawant

Case no: Civil appeal No. 72 of 2012

Dated on: April 26,2024

Quorum: Justice Vikram Nath.

Facts of the case:
A Leave and License Agreement was entered between the Appellants and the Respondent. The Appellants are the owners of the property, which was the subject matter of the Suit. The Respondent herein had filed Suit against the Appellant for illegal and unauthorized eviction from the Suit Schedule property which was decreed by the Trial Court and further concurred by the High Court as well. Appellant, aggrieved by the Orders of the High Court, preferred Civil Appeal wherein the Supreme Court had reserved the matter for orders on 18.01.2024. The Supreme Court, left it open for the parties to move appropriate application within a period of two weeks, in case there is any probability for settlement. However, as three months elapsed and since no such application was filed, the Hon’ble Supreme Court proceeded to decide the matter on merits.
Contentions of the appellant:
The Appellants contended that the Suit under Section 6 of The Specific Relief Act not being maintainable. The subject property was handed over voluntarily by the Respondent and to prove the said contention the Appellant relied on the Possession Receipt.
Contentions of the respondent:
The Respondent filed a suit, within six months of dispossession, under Section 6 of the Specific Relief Act, 1961 by alleging that they were illegally and unauthorizedly by use of force, evicted by the Appellant.
Issues:
Whether any merit is there in the Appeal preferred and whether any interference is required?
Legal Provisions:
Section 6 of the Specific Relief Act: Suit by person disposed of immovable property.
Courts judgement and analysis:
The Trial Court decreed the suit of the Respondent disbelieving the contentions of the Appellants that the subject property was handed over voluntarily by the Respondent thereby not talking into consideration the possession receipt relied upon by the Appellant. The Trial Court rejected the appellant’s plea of non-maintainability of the suit under Section 6 of the Specific Relief Act. Appellant, aggrieved by the decision preferred a Revision Petition before the High Court, which was also dismissed. The High Court also found that the plea of maintainability of the suit raised by the appellant was devoid of merits and further concurred with the finding of the Trial Court that the Respondent was illegally dispossessed by the Respondent. The Appeal is accordingly dismissed as there are concurrent findings, based upon the evidence on record and findings of fact.

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Delhi High court passed an order directing the Petitioner/tenants to pay use and occupation charges.

Title: MURARI CHAUHAN & ANR vs KAILASH NARAIN MALHOTRA

Decided on: 21.06.2023

+ RC.REV. 174/2019 & CM APPL. 13057/2019 and CM APPL. 40082/2019

CORAM: HON’BLE MS JUSTICE TARA VITASTA GANJU

Introduction

The Delhi High court passed an order on an application seeking directions to pay use and occupation charges by the petitioner/tenants from the date of the eviction order dated 20.09.2018 till the revision petition is finally decided by this court.

Facts of the case

Learned Counsel appearing on behalf of the Respondent/landlord submits that the Petitioner/tenant is in occupation of the demised premises for many years and the execution of the Eviction Order was stayed by this Court on 19.03.2019.

The present Application was filed on 03.08.2019 and the Notice in the Application was issued on 13.03.2020. On 13.03.2020, learned Counsel appearing on behalf of the Petitioner/tenant had sought time to file a Reply to the present Application. The Reply has not been filed despite the last opportunity granted by this Court on 25.01.2023. On 01.05.2023, learned Counsel appearing on behalf of the Petitioner/tenant, sought more time to file a Reply to the present Application.

Respondent/landlord has opposed the grant of any further time to file the Reply, as no Reply has been filed for almost 4 years. He further submits that the Petitioner/tenant has obtained Interim Orders from this Court and thereafter no use and occupation charges are being paid by the Petitioner/tenant.

In these circumstances, the Orders in this Application were reserved, and the Parties were given leave to file their respective written submissions.

Analysis and Decision of the court

The Delhi High Court held that the Supreme Court in its recent judgment in Martin and Harris Private Limited and Another v. Rajendra Mehta and others confirmed Atma Ram Properties (P) Ltd. vs. Federal Motors (P) Ltd. in the event that after the eviction is accepted, the tenant is obliged to pay the usage fees and usage fee of the respective sites based on the market rate until the application is finally removed. However, it has been found that the tendency to pay benefit or compensation depends on the facts and circumstances of each case, including the location of the property, whether it is in a village, town or city, and its character, whether commercial or residential and the circumstances of each case are governed by the usual rate of rent. It is noted that in relation to rentals at:

 (i) It is a newly constructed building and therefore not applicable;

 (ii) It is 2600 sq. ft. property with a rent of Rs. 72,000/- so at that price the occupancy charges for this space can be around Rs. 27.70 per square meter foot;

 (iii) Located far from the destroyed sites in a more expensive location.

The applicant/tenant has not registered leases. In the circumstances of the case, the order of the rental agreement no. (ii), above, viz. property measuring 258 square meters @ Rs.72,000/- seems most suitable for comparison considering that the destroyed premises is a shop on the ground floor.

In addition, since the location of the demolished premises is in a prime commercial area and the fact that the applicant/tenant uses the demolished premises for commercial purposes as much as he is engaged in the sale of shoes for daily use must also be borne. in mind However, since the demolished space is located in an old and dilapidated building, the price has been reduced. Therefore, without prejudice to the rights and claims of the parties, the applicant/tenant shall pay the occupancy and accommodation fees to the defendant/landlord and all payments shall be made to the bank account of the defendant/landlord.

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Written By – Shreyanshu Gupta

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