VEERAN DEVI Vs. S SUBHASH

JUDGEMENT

(1.) THE plaintiff-Smt. Veeran Devi, has filed the present suit against mr. S. Subhash, the defendant, for recovery of possession of a portion of premises No. 30, Village Hauz Khas, New Delhi and for recovery of Rs. 28,36, 025/- (Rupees twenty eight lacs thirty six thousands and twenty five only)alongwith future dues and mesne profits.

(2.) IT is admitted by the parties that they had entered into a memorandum of Understanding dated 5th August, 2000, Exhibit P-1. The said document was admitted by the defendant at the time of admission/denial of documents. The Memorandum of Understanding relates to the property and stipulates that approximately 12 thousand square feet area consisting of the basement, ground floor and the first floor shall be given on lease to the defendant for a period of nine years. It was agreed that the defendant would be liable to pay 20 % of the gross sales per month for use and occupation of the property after deducting the Sale Tax liability, as rent with the minimum guarantee charges/rent of Rs. 1,50,000/- (Rupees one lac and fifty thousand)per month for a period of first three years. Thereafter with effect from 1st january, 2004, the defendant was liable to pay enhanced amount of 25% of the gross sales with a minimum guarantee of Rs. 2,00,000/- (Rupees two lacs) per month. With effect from 1st January, 2007, the defendant was liable to pay 30 % of the gross sales with the minimum guarantee of Rs. 2,50,000/- (Rupees two lacs fifty thousand) per month. The Memorandum of Understanding is however an unregistered document.

(3.) IT is admitted case of the parties that the defendant had deposited rs. 5,00,000/- (Rupees five lacs) as a security deposit with the plaintiff. It is also an admitted case that rent @ Rs. 1,50,000/- (Rupees one lac fifty thousand) per month with effect from 1st January, 2001, onwards was paid for a period of eight months i. e. up to 31st August, 2001. For the month of September, rent was not paid. However, an amount of Rs. 72,000/- (Rupees seventy two thousand) towards TDS was deducted from the rent due for September, 2001.