Leave and Licence Agreement – Order XV-A and Order XXXIX Rule 10 of CPC – Powers of Court to order deposit licence fees at the interim stage in a suit other than for eviction.
Judgment dated 22.12.2023 in Wework India Management Private Limited Vs. M/s. KGS Investments – Writ Petition No.840 of 2022 with connected matter.
By the leave and license agreement dated 17.5.2019 read with the Rectification Deed dated 30.9.2019, the plaintiffs granted licence to the defendant no.1 for use and occupation of the building from ground to 8th floors for 10 years with lock-in period of 60 months.
However, the 9th floor was to be given on receipt of occupancy certificate.
By the order dated 20.3.2020, the Corporation asked for closure of establishments in view of pandemic.
By the notice dated 21.3.2020, the defendant no.1 invoked the clause of force majeure as per clauses 22.1 and 22.4 of the L&L agreement. The plaintiffs replied the said notice and informed that failure to make payment of license fees and other charges will result in breach.
On 12.8.2020, the plaintiffs filed suit for arrears of licence fees and other charges for April to 7th June 2020, etc.
The Small Causes Court held that the defendant no.1 is not liable to pay in view of lockdown and that Order XV-A CPC is not applicable as the suit is not for eviction. Revisional Court had reversed the finding.
HELD that the statutory provisions of Order XV-A and Order 39 Rule 10 of CPC permit order of deposit of rent arrears or licence fees in a suit other than for eviction and it cannot be said that final relief has been granted at interim stage.
Order 39 Rule 10 refers to the admission of the party that the money belongs or is due to another party. Where a defendant admits that he is a tenant, he impliedly admits that the property belongs to the plaintiff and money for use thereof is due to him. Order 39 Rule 10 of CPC are an extension of Order 12 Rule 6 of CPC
