Shreeved Consultancy LLP vs. Friends Motels PVT. LTD.

Held

The Court held that the learned Single Judge rightly declined to consider the written statement filed by the appellants/defendants as it was filed beyond the statutory period of 90 days, and no application for condonation of delay was filed along with it. The appellants failed to demonstrate any sufficient cause or extraordinary circumstances to justify condoning the delay beyond 90 days. The Court found no merit in the plea regarding the electricity meter, as the appellants did not prove they had requested a commercial meter from the respondent. The Court upheld the learned Single Judge's finding that the appellants had breached the lease deed by defaulting in rent payments from September 2018 and failed to cure the default within the stipulated period. The Court also noted that the appellants' request for 45 days to deposit outstanding dues was not bona fide, given their prolonged default. Consequently, the appeal was dismissed as meritless, upholding the impugned judgment.

Facts

The appellants/defendants are appealing a judgment from the learned Single Judge that decreed a suit filed by the respondent/plaintiff. The suit sought possession of a built-up premises, arrears of rent amounting to Rs. 1,20,17,858/-, damages, and payment of unpaid electricity and water bills, service tax, TDS, and GST. The learned Single Judge directed the appellants to hand over vacant possession within one month, clear rent arrears for September, October, and November 2018 at Rs. 18,00,000/- per month, pay damages from December 2018 at the same rate with 9% interest, and clear electricity dues until April 30, 2019, water dues until possession is handed over, and other statutory dues including GST. The appellants' written statement was filed 117 days after summons, beyond the permissible 90-day period, without a condonation of delay application. The High Court noted the appellants' default in rent payments from September 2018 and their failure to cure the breach after receiving a legal notice.

Key Issues

1. Whether the learned Single Judge erred in passing the impugned judgment without considering the written statement filed by the appellants/defendants, which was filed beyond the statutory period of 90 days. 2. Whether the appellants/defendants have established sufficient cause or extraordinary circumstances to warrant condonation of delay in filing their written statement beyond 90 days. 3. Whether the appellants/defendants have breached the material terms and conditions of the lease deed by defaulting in paying the monthly rent and other statutory dues. Contentions of the Appellants/Defendants: The appellants argued that the learned Single Judge erred by not considering their written statement, which was filed within 120 days. They contended that the delay in filing the written statement should have been condoned. They also raised a plea regarding the electricity meter being for domestic rather than commercial consumption, which they claimed was required for running a guest house. Contentions of the Respondent/Plaintiff: The respondent/plaintiff argued that the written statement was filed beyond the permissible period of 90 days without a proper application for condonation of delay. They highlighted the undisputed default in rent payments from September 2018 and the appellants' failure to cure the breach after receiving a legal notice. The respondent also contended that the appellants failed to demonstrate they approached the respondent for a commercial electricity meter before or immediately after occupying the premises.