Reena Jain Malhtora vs. Lawyers Chamber Allotment Committe & Anr

Facts

The plaintiff, Atma Ram Properties Pvt Ltd, filed a suit against the defendants, Hillarious Hospitality Pvt Ltd & Ors, for arrears of rent and use and occupation charges. The parties had entered into a lease deed on 01.06.2016 for a showroom, with rent initially set at Rs.12 lakhs per month plus service tax. From 15.09.2017, the rent increased to Rs.14 lakhs plus GST at 18% per month. The plaintiff claimed arrears of rent and taxes totaling Rs. 5,99,999/- as of 03.03.2018, after adjusting the security deposit. The plaintiff further sought deposit of use and occupation charges from 03.03.2018 till 14.05.2018, amounting to Rs.46,19,865/-. The defendants failed to appear and file a written statement. The plaintiff filed an application under Order 15A CPC for directions to deposit these arrears.

Held

The Court allowed the application filed by the plaintiff under Order 15A CPC. The Court directed the defendants to deposit the arrears of rent and use and occupation charges amounting to Rs.46,19,865/- within four weeks. This amount represented the dues from 03.03.2018 till 14.05.2018. Furthermore, the defendants were ordered to continue depositing the use and occupation charges at the agreed rate of Rs.14 lakhs plus GST at 18% per month (totaling Rs.16,52,000/-) from 15.05.2018 onwards, on a month-to-month basis, by the 10th day of each succeeding month, until the final decision of the suit. The Court found that the defendants were neither appearing nor had filed their written statement, and the plaintiff had established a prima facie case for the interim relief sought based on the lease deed.

Key Issues

1. Whether the Court has the power under Order 15A CPC to direct the defendants to deposit arrears of rent and use and occupation charges, including GST, pending the decision of the suit, considering the lease agreement and the amounts claimed by the plaintiff? Petitioner's Arguments: The plaintiff argued that the defendants had failed to appear and file their written statement, and were in arrears of rent and use and occupation charges as per the lease deed. They relied on the lease deed which stipulated a monthly rent of Rs.14 lakhs plus GST at 18%, totaling Rs.16,52,000/- per month. The plaintiff sought directions for the deposit of arrears up to 14.05.2018 and for continued monthly deposits of future charges. Revenue/State's Arguments: The judgment does not record any specific arguments made by the revenue or state in this matter, as it primarily concerns a civil dispute between a landlord and tenant regarding contractual obligations and interim relief.