Mahesh Shantilal Dharod And Ors vs. Nittany Trading Pravite Limited Thr. Director Vinay P. Gupta.

Held

The Court held that the Petitioners were not entitled to concessions in license fees for the Covid-19 period. It reasoned that as an elite international school, there was no evidence on record to suggest that the school fees were suspended during the pandemic. Furthermore, the Court noted that the Trial Court had already shown leniency by directing the deposit of license fees at the base rate of Rs.12,00,000/- per month, even though the escalated rate of Rs.13,80,000/- per month was applicable from April 2022. Regarding the vacation of premises, the Court found that the Petitioners' claim of vacating on 15 September 2023 was unsubstantiated. The Court relied on the possession receipt dated 29 March 2024, signed by all four Petitioners, as conclusive evidence that possession was actually handed over on that date. The letter dated 15 September 2023 merely indicated willingness to handover possession. Consequently, the Court found no reason to interfere with the impugned orders. The Petitioners were directed to deposit arrears of license fees at Rs.12,00,000/- per month plus GST from April 2020 till March 2024 within four weeks to have their defence restored. The observations were declared prima-facie, and the Trial Court was directed to expedite the suit.

Facts

The Petitioners, Mahesh Shantilal Dharod & Ors., challenged an order dated 4 October 2025 by the Appellate Bench of the Small Causes Court, which upheld a Trial Court order dated 24 February 2022. The Trial Court directed the Petitioners to deposit arrears of license fees at Rs.12,00,000/- per month plus GST from April 2020 until the pendency of the Suit. The license fee was Rs.12,00,000/- per month until March 2022, escalating to Rs.13,80,000/- from April 2022. The Petitioners disputed concessions for the Covid-19 period and claimed the premises were vacated on 15 September 2023. The Court noted the Petitioners run an international school and found no evidence of fee suspension during Covid-19. The Court also found that possession was handed over on 29 March 2024, as evidenced by a possession receipt, not on 15 September 2023.

Key Issues

1. Whether the Petitioners are entitled to concessions in license fees for the Covid-19 period, considering the nature of their business (an elite international school) and the absence of evidence of fee suspension during the pandemic. This issue turns on the interpretation of the license agreement and general principles of fairness in contractual obligations during extraordinary circumstances. 2. Whether the liability for license fees should be frozen as of 15 September 2023, given the Petitioners' claim of vacating the premises on that date, or if it should extend until the actual date of possession handover. This issue hinges on the interpretation of evidence presented, specifically a letter of willingness to hand over possession versus a formal possession receipt. Petitioner's Contentions: The Petitioners argued for concessions in license fees during the Covid-19 period and contended that their liability ceased on 15 September 2023, when they expressed willingness to vacate. They relied on a letter dated 15 September 2023. Revenue/State's Contentions: The judgment does not record specific contentions from the Respondent (Nittany Trading Private Limited) regarding these issues, other than implicitly supporting the Trial Court's order.