Raj Kumar Gupta HUF vs N Square Hospitality LLP & Ors.

“a. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to hand over peaceful and vacant possession of property bearing number F-19, Third Floor, Preet Vihar admeasuring approximately 3,000 square feet to the Plaintiff;

b. Pass a decree of permanent injunction in favour of the Plaintiff and against the Defendants directing the Defendants not to create any third-party rights in property number F-19, Third Floor, Preet Vihar admeasuring approximately 3,000 square feet;

c. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff Rs.18,99,007/- (Rupees Eighteen Lakhs Ninety-Nine Thousand and Seven) being the total outstanding rent from 16^th September 2022 to 21^st April 2023 along with interest and GST;

d. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff interest at the rate of 1.5% per month on Rs.14,34,000 (Rupees Fourteen Lakhs and Thirty Four Thousand) being the outstanding rent owed to the Plaintiff from 16^th September 2022 to 21^st April 2023 from 30.09.2023 till realization;

e. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff damages of Rs.23,63,334/- (Rupees Twenty-Three Lakhs Sixty-Three Thousand, Three Hundred and Thirty-Four) for not handing over vacant possession of F-19, Third Floor, Preet Vihar from 21.04.2023 to 30.09.2023;

f. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay the Plaintiff Rs.4,10,000/- (Rupees Four Lakhs and Ten Thousand) per month from 30.09.2023 till date of handling over of possession as damages for not handing over vacant possession of the suit property;

g. Pass a decree in favour of the Plaintiff and against the Defendants directing the Defendants to pay costs of the present proceedings to the Plaintiff;”

“1. TERMS OF THE LEASE:

a)

The Lessor has agreed to let out, and the lessee has agreed to take on lease the said area measuring 3000 Sq. Fts. Approx. of the said Third Floor upto celling level of Property No.F-19, situated at Preet Vihar, Delhi-110092, together with the Rights to use common entrance, passages, staircase and other common facilities provided therein the said building for a period of 9 (nine) years, which shall commence with effect from 01.07.2022 (rent free fit-out period shall be given for 45 days i.e. 01.07.2022 to 15.08.2022) hereinafter referred to as fit-out period. However, it has been agreed that the liability of the Lessee to pay rent shall commence w.e.f. 16.08.2022.

b)

The lease can be renewed for another term beyond 9 (nine) years, with the mutual consent of both the parties on the mutually agreed terms and conditions, provided the Lessee gives to the Lessor 3 (months) advance notice in writing, of its intention to renew the same.

c)

It is also agreed between the Parties that the Demised Premises is leased by the Lessor to the Lessee on “as is where is” basis and upon the execution of this Lease Deed, the Lessee shall carry out the fit-outs of the Demised Premises, at its own cost and expenses, to the exclusion of the lessor. It is agreed that the Lessee shall not claim any amount, on any account, whatsoever. The premises shall be used by the Lessee exclusively for running a restaurant under their Limited Liability Partnership Firm in the name of “BIGG BOSS CAFÉ AND RESTAURANT”.

d)

It is agreed that the initial 36 (thirty-six) months i.e. 3 (three years) of the agreed term shall constitute as the ‘Lock-in-Period’. In case, the Lessee decides to terminate the lease within the lock-in period, the Lessee shall be liable to pay the agreed rent for the balance period of the lock-in-period plus security of the Lessee will be forfeited by the Lessor and the Lessee shall not have any kind of objection for the same in any manner whatsoever. Further, the Lessee, even if it wants to terminate the lease after the expiry of the lock-in period, can do so only after giving the Lessee, e (three) months’ notice in writing. And if the Lessor wants to terminate this lease deed after the completion of lock-in period then the Lessor will also be liable to serve 3 month’s notice in advance to the Lessee.

2. RENT, SECURITY DEPOSIT & MAINTENANCE CHARGES:

(a)

It is agreed that the monthly lease rent payable during the initial 1 (First) year starting w.e.f. 16.08.2022 shall be Rs. 2,00,000/- (Rupees Two Lakh only), for the Demised Premises, plus the GST and further any other taxes/ levies as may be applicable during the subsistence of the lease. And a sum of Rs.2,16,000/- has been paid as advance lease rent vide Chq. No. 001018, Dated 16.08.2022, drawn on ICICI Bank, Yamuna Vihar, Delhi.

(b)

It is further agreed that the monthly rent shall, thereafter, stand increased by 5% (Five percent) of the last rent paid, after the completion of every year, plus GST / applicable taxes / levies. Accordingly, the monthly rent payable during the term of the lease shall be as under:

“Term of the Lease	Monthly Rent Payable
16.08.2022 to 15.08.2023	Rs.2,00,000/- + GST
16.08.2023 to 15.08.2024	Rs.2,10,000/- + GST
16.08.2024 to 15.08.2025	Rs.2,20,500/- + GST
16.08.2025 to 15.08.2026	Rs.2,31,525/- + GST
16.08.2026 to 15.08.2027	Rs.2,43,101/- + GST
16.08.2027 to 15.08.2028	Rs.2,55,256/- + GST
16.08.2028 to 15.08.2029	Rs.2,68,019/- + GST
16.08.2029 to 15.08.2030	Rs.2,81,420/- + GST
16.08.2030 to 15.08.2031	Rs.2,95,491/- + GST”

(c)

That notwithstanding the fact that the term of lease is agreed to have been commenced with effect from 01.07.2022 (fit-out period of 45 days given i.e. upto 15.08.2022), the liability to pay rent shall commence from 16.08.2022 (the paid Rent Commencement date).

(d)

That the lessee shall pay the agreed monthly rent, in advance, by 25^th day of every month, regularly and punctually. In case of delay in payment of rent, the lessee shall be liable to pay interest @ 1.5% Per Month on the amount of unpaid rent for the delayed period, till payment in full of the rent due. Notwithstanding, the payment of agreed Interest on the unpaid amount of rent for the delayed period, the default in payment of rent regularly and in time, shall nevertheless constitute a breach of an essential term of the lease, and the lessee shall be liable to the consequences resulting from such default as provided in this Lease deed. xxxx xxxx xxxx

(g)

The lessee has paid the security deposit amount of Rs.6,00,000/- (Rupees Six Lakh Only) equivalent to 3 (three) months' rent to the Lessor through Two RTGS, first RTGS for Rs.5,00,000/- ICICR42022070600510326, Dated 06.07.2022, second NEFT for Rs.1,00,000/- vide NEFT UTR No. 000125156305, Dated 07.07.2022, both issued from ICICI Bank. Yamuna Vihar, Delhi. xxxx xxxx xxxx

8. NOTICE:

(a)

That any notice in terms of this Agreement by either Party will be in writing and will be given at their addresses stated herein.

9. TERMINATION:

(a)

Without prejudice to the rights and obligations of the respective parties hereto as herein above provided, including the agreed term/earlier determination of lease, it is agreed that the Lessee, after the expiry of the lock-in period, may terminate the lease at any time during its subsistence, by serving upon the Lessor a 3 (three) months notice in writing, served either personally or through registered/ speed post a/d, at the address as provided herein above. It Is further reiterated that during the lock-in period, the lease cannot be terminated by the lessee.

It is expressly agreed between the Parties that in the case of nonpayment of Lease Rent for a period of 2 (two) consecutive months and/or such default is made on 2 (two) occasions in any financial year during the tenure of the lease, including the lock-in period, the Lessor shall give 15 days written notice to the Lessee requiring the Lessee to pay the outstanding rent within the notice period being the curing period. Even if during the curing period the Lessee does not pay the outstanding Lease Rent, Lessors would have the right to terminate the lease immediately on the expiry of the said curing period and the lessee shall hand over the physical vacant possession of the Demised Premises to the Lessor, without any delay or demur. xxxx xxxx xxxx

(b)

The Lease can also be terminated by the Lessor on Lessee committing material breach of any of the terms/provisions/clause of this Lease Deed.”

“a. Direct the defendants to stop creating third party right or interest in respect of the Rented property and subletting the Rented Property; and

b. Direct the defendant to stop illegal activities on the Rented Property; and

c. Direct the defendant vacate the Rented Property immediately; and

d. Pass any other proper and further order (s) which this Hon'ble Court deems fit in the peculiar circumstances of the present case.”

“ORDER XXXIX TEMPORARY INJUNCTIONS AND INTERLOCUTORY ORDERS

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10.

Deposit of money, etc., in Court.—Where the subject-matter of a suit is money or some other thing capable of delivery and any party thereto admits that he holds such money or other thing as a trustee for another party, or that it belongs or is due to another party, the Court may order the same to be deposited in Court or delivered to such last-named party, with or without security, subject to the further direction of the Court.”

“Delhi.–After Order XV, insert the following order, namely:–

ORDER XV-A STRIKING OFF DEFENCE IN A SUIT BY A LESSOR

(A)

"In any suit by a owner/lessor for eviction of an unauthorized occupant/lessee or for the recovery of rent and future mesne profits from him, the defendant shall deposit such amount as the court may direct on account of arrears upto the date of the order (within such time as the court may fix) and thereafter continue to deposit in each succeeding month the rent claimed in the suit as the court may direct. The defendant shall continue to deposit such amount till the decision of the suit unless otherwise directed.

In the event of any default in making the deposit as aforesaid, the Court may subject to the provisions of sub-rule (2) strike off the defence.

(2)

Before passing an order for striking off the defence, the court shall serve notice on the defendant or his Advocate to show cause as to why the defence should not be struck off, and the Court shall consider any such cause, if shown in order to decide as to whether the defendant should be relieved from an order striking off the defence.

(3)

The amount deposited under this rule shall be paid to the plaintiff owner/lessor or his Advocate and the receipt of such amount shall not have the effect of prejudicing the claim of the plaintiff and it would not also be treated as a waiver of notice of termination.”