HOTEL KINGS Vs. SARA FARHAN LUKMANI

JUDGEMENT

(1.) Leave granted in both the special leave petitions.

(2.) Respondent Nos. 1 to 4 in both the special leave petitions are the owners of a plot of land measuring about 2739.50 sq.yds. bearing survey No. 37, situated at Juhu, Greater Bombay. The said land was leased to one M/s.H. Bloch Engineering Pvt. Ltd. by a registered deed of lease dated 3rd November, 1966. By a deed of assignment dated 8th June, 1970, the said lessee transferred and assigned the demised property to M/s. Yashdhir Hotels Pvt. Ltd., a company registered under the Companies Act. The original lease was for 98 years commencing from 1st November, 1966. By virtue of the deed of assignment dated 8th June, 1970, M/s.Yashdhir Hotels Pvt. Ltd. became the lessee of the said land for the unexpired period of the lease and became a tenant under the respondent Nos. 1 to 4. The lease rent was initially fixed at Rs. 3,215/- per month, but was thereafter increased to Rs. 3,450/- per month. As M/s. Yashdhir Hotels Pvt. Ltd. defaulted in payment of rent for more than six months, the respondent Nos. 1 to 4 issued a notice dated 1st February, 1983 to M/s. Yashdhir Hotels Pvt. Ltd. It appears that on receipt of the notice, M/s. Yashdhir Hotels Pvt. Ltd. tendered rent to the lessors for a period of fourteen months but the same was refused as the same did not constitute the entire arrears of rent payable by the lessees. It was also the claim of the lessors that the lessee had unlawfully sublet the demised property.

(3.) Having refused to accept the rent for fourteen months tendered by the lessee, the lessors filed a suit, being R.A.E.No. 732/2538/1983, claiming possession on the ground that the lessee had defaulted in payment of the rents. Apart from the lessee, certain other parties were made defendants in the suit on the allegation that the suit property had been sublet by the lessee in their favour. The defendants filed their written statements and while admitting that M/s.Yashdhir Hotels Pvt. Ltd. had become the tenant of the leasehold premises by virtue of the deed of assignment, denied that the lessee was in arrears of rent as alleged. According to the defendants, the lease rent, which was initially fixed at Rs. 3,215/- per month and was thereafter enhanced to Rs. 3,450/- per month, was payable after every six months and not monthly as claimed by the lessors. It was also contended that although the rent had been tendered by cheque along with a letter dated 23rd April, 1983, the same had been wrongly refused by the lessors. It was also contended that since the period of lease was 98 years which was still subsisting, and there was no breach of any of the terms and conditions of the lease, the lessors were not entitled to get possession of the suit property. It was the specific case of the defendant Nos. 2 to 5 that under the deed of lease, the lessee was entitled to let out the structure erected on the leasehold property or any part thereof.