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2018 DIGILAW 238 (HP)

P. S. Bakshi v. Eih Associated Hotels Ltd.

2018-03-01

SANJAY KAROL

body2018
JUDGMENT Sanjay Karol, A. C. J. - M/S EIH Associated Hotels Ltd. (hereinafter referred to as the landlord) and Mrs. Neema Bakshi (hereinafter referred to as the tenant) have filed the instant petitions, under the provisions of Section 24(5) of the H. P. Urban Rent Control Act, 1987 (hereinafter referred to as the Act). 2. The landlord is the owner of demised premises, i. e. Flats No. 229, 230, 231, 232 and Quarter No. 12 of Block No. 8 of the Cecil Hotel State, Chaura Maidan, Shimla. Undoubtely, the said premises were let out to the tenant. 3. Both the landlord and the tenant are aggrieved of order dated 6. 7. 2017, passed by the Appellate Authority-II, Shimla, Himachal Pradesh, in Rent Applications No. 98-S/6 of 2017 & 107-S/6 of 2017 (in Rent Appeal No. 9-S/13(b) of 2017), subject matter of challenge in the present proceedings, whereby the tenant stands directed to deposit a sum of Rs. 24,000/- per month as use and occupation charges, w. e. f. 31. 3. 2017. 4. Before this Court, the parties have amicably resolved their dispute. The tenant has agreed to hand over the entire rented accommodation, consisting of six rooms, three bath rooms, one kitchen in Cecil Hotel Annexe; one Servant Quarter No. 12 in Block No. 8, Cecil Hotel Estate, Chaura Maidan, Shimla. This she shall do so on or before 31. 3. 2019. Undertaking, by way of affidavit, to this effect is taken on record. 5. This Court, in terms of the present order, accepts the undertaking of the tenant and allows her to hand over the vacant and peaceful possession of the said demised premises to the landlord on or before 31. 3. 2019. 6. Further, the tenant undertakes not to sublet or part with the possession or transfer rights, if any, in the demised premises in favour of third party. The tenancy stands extinguished and as such, is not heritable, nor the legal heirs have any right over the same. 7. In terms of the undertaking, the landlord and the tenant have agreed for payment of a sum of Rs. 24,000/- per month as use and occupation charges, w. e. f. 1. 4. 2017. A sum of Rs. 2,88,000/-, as use and occupation charges, for the period 1. 4. 2017 to 31. 3. 7. In terms of the undertaking, the landlord and the tenant have agreed for payment of a sum of Rs. 24,000/- per month as use and occupation charges, w. e. f. 1. 4. 2017. A sum of Rs. 2,88,000/-, as use and occupation charges, for the period 1. 4. 2017 to 31. 3. 2018 has been agreed to be paid by the tenant to the landlord, within a period of four weeks from today. This she shall do through electronic transfer, directly into the bank account of the landlord, particulars whereof shall be supplied by the learned counsel for the landlord to the learned counsel for the tenant. In the same manner, the tenant shall continue to pay use and occupation charges, w. e. f. 1. 4. 2018 till the time the premises are occupied by her, i. e. prior to 31. 3. 2019. 8. However, the matter does not end here. The issues, which require adjudication, are (a) as to what would happen if the tenant fails to handover the peaceful and vacant possession of the demised premises to the landlord, in terms of her undertaking, on or before 31. 3. 2019; (b) the amount, which the tenant would be liable to pay, as use and occupation charges, in the event of her not handing over such possession as per her undertaking. 9. Answer to the first issue is simple and clear. The tenant has furnished an undertaking, which stands accepted by the Court. She has been made aware of the consequences of breach thereof, including initiation of proceedings for having committed contempt of court. 10. Insofar as the other issue is concerned, it is mutually agreed that till and so long the tenant abides by the undertaking, the amount of use and occupation charges would be Rs. 24,000/- per month. This Court is of the considered view that only in the event of the tenant not abiding by the same, would she be liable to pay use and occupation charges of higher amount to be determined, in terms of the settled position of law, more so in terms of orders passed with respect to other premises of the landlord, occupied by similarly situated tenants/persons. 11. This Court in Civil Revision No. 189 of 2015, titled as Kunta Devi v. EIH Associated Hotels Ltd. , decided on 6. 1. 11. This Court in Civil Revision No. 189 of 2015, titled as Kunta Devi v. EIH Associated Hotels Ltd. , decided on 6. 1. 2016, in the case of tenant, occupying the premises in the very same complex, has determined the use and occupation charges to be Rs. 6,000/- per month. Well, this is for one Quarter No. 35, Block No. 4, Cecil Hotel, Chaura Maidan, Shimla. 12. Further, in relation to the very same building, while dealing with yet another tenant, this Court in Civil Revision No. 79 of 2017, titled as Diwakar Dutt Kukreti v. EIH Associated Hotels Ltd. & another, decided on 18. 9. 2017, has determined similar amount, qua each quarter. Since the said tenant was in occupation of three quarters, he was directed to pay use and occupation charges at the rate of Rs. 18,000/- per month. 13. Adopting the very same formula, this Court is of the considered view that Rs. 75/- per square foot (worked out on the basis of Rs. 6,000/- per month) would be fair and reasonable amount as use and occupation charges to be paid by the tenant. 14. Now in the instant case, the total area under occupation of the tenant is not in dispute. The area of entire tenanted premises, including the servant quarter, comes to 1480 square feet. As such, in view of settled position, a sum of Rs. 75/- per square foot can fairly be assessed as use and occupation charges. Thus, the amount payable would work out to be Rs. 1,10,000/- (1480 X 75) per month. 15. This Court, therefore, holds that only in the event of the tenant not complying with the undertaking, the landlord would be entitled to a sum of Rs. 1,10,000/- per month, as use and occupation charges till the time vacant and peaceful possession of the premises is handed over to the landlord. It stands clarified that such amount would be due and payable from the date already determined by the authority below. Abundantly, it is clarified that with the tenant complying with the terms of the undertaking, the landlord would be entitled to use and occupation charges only at the rate of Rs. 24,000/- per month, w. e. f. 31. 3. 2017, till the time of handing over of possession. Both the petitions stand disposed of, in the aforesaid terms. Pending application(s), if any, stand disposed of.