NON­REPORTABLE

IN THE SUPREME COURT OF INDIA  CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO(S). 9265  OF 2019 (@ SPECIAL LEAVE PETITION (CIVIL) NO. 3885 OF 2018)

M/S ESPIRE INFOLABS PVT LTD …APPELLANT(S)

Versus

SADHANA FOUNDATION             …RESPONDENT(S)

J U D G M E N T

Deepak Gupta, J.

Leave granted.

2. The present appeal arises  from a claim of the  landlord –

respondent  herein, claiming  rent for the  period  01.11.2015  to

31.01.2017.  We may point out that another petition was filed by

the landlord claiming rent for the period 01.01.2013 to

30.10.2015.  The  landlord  claimed  rent  @ Rs.18,43,900/­  per

month relying upon the lease deed dated 01.01.2013.  The stand

1

of the tenant  –  appellant  herein, is that, in fact, there  was a

subsequent registered lease deed dated 01.09.2015 which is

effective from 01.03.2015 in which the rent is @ Rs.7,50,000/­

per month.  In addition thereto, it is claimed that as per Clause

1(c) of the registered lease deed dated 01.09.2015, the tenant was

entitled to spend an amount of  Rs.9 crores  for  developing the

infrastructure in the tenanted premises and was entitled to

adjust the same against the rent.

3. In the eviction petition the Rent Controller determined the

provisional rent @ Rs.7,50,000/­ per month.   The Punjab and

Haryana High Court confirmed the order of the Rent Controller

and the SLP filed against the same was dismissed by this Court.

As far as the registered lease deed of 2015 is concerned, Clause

1(c) of the same reads as follows:­

“1(c) In order to avoid any dispute it is hereby agreed by  and between  the  parties to these  presents, that  as mentioned hereinabove, the Lessor had handed over the said premises to the Lessee or bareshell basis and THE LESSEE has agreed  to do all the  internal  work  in  the Demised Premises including furnitures and fixtures, air conditioning, lighting, flooring, false ceiling, bathroom etc. so as to bring it to the standard of and International Class IT Office.   It has been agreed between the Lessor and the Lessee that the Lessee shall bear the cost of the same which shall be approximately 9 Crores.   This amount will be payable by the Lessor to the Lessee and the Lessee shall adjust the same from the rent due to the Lessor till the entire amount is paid.   Hence the Lessee will not be liable to pay any rent to the Lessor unless it

2

has recovered the entire amount of approximately 9 Crores from the rent due to Lessor.”

After the first petition was decided, the second petition was filed

claiming rent for the period, 01.11.2015 to 31.01.2017.  The Rent

Controller again fixed the provisional rent @ Rs.7.50 lakhs per

month and the High Court relying upon the earlier orders has

upheld the same.  This order is in challenge before us.

4. Mr. Maninder Singh, learned senior counsel for the

appellant submits that as per Clause 1(c), the tenant is entitled to

adjust the amount payable to the landlord and that by now more

than Rs. 3 crores have been paid, and in case the entire amount

is paid, the appellant will have no way of recovering this amount,

if it is finally held that the tenant is entitled to adjust the rent

against the  amount spent.  He  also  urged that in the earlier

petition the tenant had not placed on record any material to show

the amount of money spent for developing the infrastructure but

in this petition such material has been placed on record. He also

made various other submissions with regard to the relationship

between the parties but we are not going into the same.  On the

other hand, Mr. Prashant Bhushan,  learned counsel appearing

for the respondent submits that the lease deed of 2013 should be

3

relied  upon and  cannot  be ignored  at this stage.  He further

submits that even if  rent of  Rs.7.50 lakhs has to be paid,  the

respondent Trust cannot be deprived of this rent.   He also

submits that the second lease deed was executed on behalf of the

Trust by one Shri Ajay Sharma.  According to him, Ajay Sharma

is the same person who had signed the lease deed of 2013 and

Ajay  Sharma  was removed  as the  Trustee of the  Trust  much

before the lease deed of 2015 was executed and registered.   On

the other hand, Mr. Maninder Singh contends that, in fact, Ajay

Sharma’s removal is  not  proper  and he is fully empowered  to

execute and register the sale deed.   

5. There are various disputed issues involved.   At the outset,

we  may  note that the lease  deed  of  2013 relied  upon by the

landlord is  an un­registered  one,  and we  are  not  sure if it is

properly stamped and, therefore, at this stage the said lease deed

cannot be relied upon, being inadmissible in evidence. The first

issue is whether the lease deed of 2013 or the lease deed of 2015

will govern the rights of the parties.  The second issue is whether

Shri Ajay Sharma was a trustee and entitled to execute the lease

deed of 2015.  The third issue would be that even if the lease deed

of 2015 governs the rights of the parties, what amount has been

4

spent by the appellant.   Here, it would be pertinent to add that

whereas in the first petition the appellant had led no evidence to

show that he had spent any amount, in this petition some

material has been placed on record.  However, all this will have to

be tested by leading evidence.   We are of the view that all these

contentious issues cannot be decided at this stage.  Evidence will

have to be led by the parties to prove their case.  Equities must be

balanced at this  stage,  and we feel that the  equities  must  be

balanced in such a manner that when the final petition is decided

both the parties should not be put to loss.

6. In  view of the  above,  we  dispose  of this  appeal  with the

following directions :­

(i) That after the period of the first eviction petition in

which it has been held that Rs.7.50 lakhs per month should be

paid by the tenant as provisional rent, we direct that  w.e.f.

01.11.2015, the tenant  shall  be liable to  pay  rent  @ Rs.3.75

lakhs per month;

(ii) This order shall be complied with till the proceedings

are finally disposed of by the Rent Controller and the landlord

shall not be required to file any separate eviction petition for the

subsequent periods;

5

(iii) We direct that the tenant shall deposit rent @ Rs.3.75

lakhs per month from 01.11.2015 till 30.11.2019, after

adjusting any payment which may have been made by

31.01.2020.

(v) The tenant shall also furnish tangible surety in a sum

of Rs.3 crores to the Rent Controller so that if the case is decided

against the tenant, the landlord does not have to run after him

to collect the money.

(vi) The Rent Controller is directed to take up the matter

on an urgent basis and, if necessary, try the same on day­to­day

basis and dispose of the same within 6 months from today.

7. With the above directions, the Civil Appeal stands disposed

of.  Pending application(s) if any, shall also stand disposed of.

…………………………….J. (S. ABDUL NAZEER)

……………………………..J. (DEEPAK GUPTA)

New Delhi December 09, 2019

6