UBOEROI SONS MACHINES LIMITED Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Plaint unfolds that the ground and mezzanine floors of premises bearing No.21, Community Centre, New Friends Colony, New Delhi comprising two halls and three toilets, as indicated in the site plan, were let out to New Bank of India by means of a registered lease agreement dated 21st August, 1989 for a period of nine years at a monthly rent of Rs.1,10,000.00. The lease was to expire on 31st August, 1998. The possession of the leased premises was delivered on 1st August, 1989. With effect from 1st August, 1994, the rent of the premises was to be increased to Rs.1,38,750.00.

(2.) The New Bank of India amalgamated with Punjab National Bank during the currency of tenancy period. Punjab National Bank, thus, became tenant in relation to suit premises by operation of law.

(3.) The lease deed did not contain any renewal clause. The defendant was thus to deliver back the peaceful and vacant possession of the suit premises after expiry of lease period on 31st July, 1998. Though the tenancy had come to an end on 31st July, 1998 by efflux of time, by way of abundant caution, the plaintiff sent a notice on 9th July, 1998 to the defendant bank requiring it to deliver the possession of the suit premises on or before 1st August, 1998. This notice was duly served on the defendant. The defendant however, failed to deliver back the possession of the suit premises. In the notice, the petitioner claimed from the defendant bank use and occupation charges w.e.f. 1.8.1998 as an unauthorised occupant, at the rate of Rs.7 lacs per month being the prevalent market rent at the relevant time.