M/S Miniso Life Style PVT. LTD. vs. Smt. Uma Sharma & Anr.

Facts

The appellant, M/s Miniso Life Style Private Limited, is appealing against orders concerning rent payments for its rented premises during the nationwide COVID-19 lockdown. The appellant sought a waiver of rent for 45 days when it was legally prevented from opening its shop due to government directions. The respondents, the landlady and her sons, initially objected but proposed a settlement. The settlement involved the appellant paying rent for the entire period except for the 45 days of absolute lockdown. A key condition of the settlement, as argued by the respondent's counsel, was that the appellant would also pay all applicable taxes, including GST, for the 45-day period. The appellant's counsel, on instructions, agreed to this proposal. The court was informed that arbitration proceedings would not be pursued as the lis had been settled.

Held

The Court held that the appellant is directed to pay all monies and rents for the entire period until the date of the order, with the exception of the 45 days of the nationwide lockdown that commenced on March 25, 2020. The payment of these monies is to be made directly into the bank accounts of the respondents where the appellant has been depositing rent. Crucially, the Court also directed that taxes, including GST, as due, shall be paid by the appellant in the manner they were being paid previously. The entire payment is to be completed on or before August 25, 2020. A cost of Rs. 25,000/- is imposed on the appellant in case of any default in payment, either in quantum or schedule. The appeals, along with pending applications, were disposed of in terms of this settlement.

Key Issues

1. Whether the appellant is entitled to a waiver of rent for the 45-day period of absolute nationwide lockdown, during which it was prevented by law from operating its business? 2. Whether the appellant is liable to pay GST and other taxes for the 45-day period of absolute nationwide lockdown? The petitioner (appellant) argued that due to the nationwide COVID-19 pandemic lockdown, it should be granted a waiver of rent for the 45 days when it was prevented by law from opening its shop. The respondents (landlady and her sons) argued that if the appellant agreed to pay rent for the remaining period up to the current month, they would have no objection to settling the dispute. However, the respondents' counsel also contended that all taxes, including GST, for the 45-day period should be paid by the appellant. The appellant's counsel agreed to this proposal.