DAEWOO ANCHOR ELECTRONICS LIMITED Vs. S L BHALLA

JUDGEMENT

(1.) The present Suit has been filed for recovery, declaration and permanent injunction by the plaintiff, inter-allia, praying for the following relief :-

(2.) The defendant filed an application under Order 7 that same does not disclose any cause of action. It was contended before me by Mr. Jaitley learned counsel appearing for the applicant that the Lease Deed dated 25/4/1998 was not registered in terms of the Registration Act and the same was a void document on account of non- registration. It was contended that a void document cannot be the basis for filing a suit either for declaration or for injunction or for relief of recovery of amount. It was contended that the Lease Deed dated 25/4/1998 was for a period of three years commencing from 1/4/1998. Under the said Lease Deed, the plaintiff paid a sum of Rs. 19,44,000.00 to the defendant being monthly advance rent for nine months which was adjustable in 36 equal instalments of Rs.44,000.00 each, rent being Rs. 2,16,000.00 per month for initial 25 months. Further amount of Rs. 25,92,000.00 was paid by the plaintiff as interest free, security deposit refundable when the plaintiff hand over the possession of premises on the expiry of the alleged Lease Deed or on its earlier determination.

(3.) Under Clause 14 of the alleged Lease Deed either party could terminate or determine the lease by giving three months' notice. The controversy arose as the plaintiffs issued notice dated 28/1/2000 terminating the lease from 1/5/2000. The said notice of termination was received by the defendant on 4/2/2000. The defendant replied to the said notice by a letter dated 16/2/2000 which is at page 22 of the plaint, inter-alia, stating that as the notice dated 28/1/2000 was received by the defendant on 4/2/2000, the same does not given three months' notice of termination under the Agreement and, therefore, the notice was not valid and demand to pay Rs.6,48,000.00 was not correct and it would be much less. After receipt of the letter, for the reasons best known to the plaintiff, the plaintiff sent a letter dated 12/4/2000 stating that in case the defendant feels that the notice dated 28/1/2000 was not sufficient, defendant may extend the date till 5/5/2000 for refunding the security deposit of Rs. 25,92,000.00 and Rs.5,94,000.00 This is how the letter dated 12/4/2000 reads under paragraph 6 at page 25.