ALLAHABAD BANK Vs. K KISHORE

JUDGEMENT

(1.) M/s. K. Kishore (HUF) is the tenant in respect of Flat No.29 (First Floor), Regal Building, Connaught Place, New Delhi, measuring 2200 sq. yds. It, however, had the requisite permission from the landlord to sub-let these premises. M/s. Smarts Private Limited, likewise, is the tenant in the same Flat No.29, Regal Building, First Floor, described as mezzanine and storage lofts. It also enjoys the right to sub-let the said premises. M/s. United Industrial Bank Limited (hereinafter referred to as the 'UIB') took on rent the aforesaid premises, by way of sub-letting, from both the tenants. In the first case, lease was executed for a period of 10 years and in the second case, licence agreement was executed for the same period, which was co-terminus with the first lease. UIB was subsequently taken over by the Allahabad Bank for which necessary notification was issued by the Government of India, Ministry of Finance (Department of Economic Affairs). Prior to this takeover, notification issuing moratorium of UIB was passed. This resulted in non-payment of rents to both M/s. K. Kishore (HUF) and M/s. Smarts Private Limited. They served notice of termination of lease/licence agareement and filed suits for recovery of possession, arrears of rent and damages for alleged wrongful use and occupation of the premises by Allahabad Bank. Suit of M/s. K. Kishore, which was filed on the original side of this Court, has been decreed vide judgment and decree dated 15.12.2005. Suit filed by M/s. Smarts Private Limited, which was dealt with by Smt. Sunita Gupta, Additional District Judge, Delhi, has also been decreed vide judgment and decree dated 5.11.2005. Allahabad Bank has filed appeal against both the judgments. M/s. K. Kishore and Company has also filed appeals against the judgment rendered by the learned Single Judge of this Court challenging the quantum of mesne profits awarded and the period for which it is awarded. This is how all these three appeals were taken up together for argument and we propose to dispose of these appeals by this common judgment.

(2.) For the sake of convenience, facts as appear on the record of RFA (OS) No.15/2006 are stated hereinafter. RFA (OS) No. 15/2006

(3.) As pointed out above, M/s. K. Kishore (HUF) (hereinafter referred to as the 'respondent') entered into sub-lease for a period of 10 years with M/s. UIB. This sub-lease dated 18.5.1987 was duly registered with the Sub-Registrar. Lease deed commenced with effect from 1.2.1987 and was to expire on 31.1.1997. It was agreed that rent would be paid in the following manner:- 1st 3 years from 1.2.98 to 31.1.90 Rs.10,500/- per month Next 3 years from 1.2.90 to 31.1.93 Rs.16,000/- per month Next 4 years from 1.2.93 to 31.1.97 Rs.22,500/- per month