SRR HOSPITALITIES PVT. LTD. Vs. BALINA SRIMANNARAYANA

JUDGEMENT

(1.) All these Civil Revision Petitions are being disposed of by this common order as they arise out of the same Original Suit which is pending between the parties.

(2.) The petitioner herein is the defendant in OS No.173 of 2013 on the file of the VII Additional District Judge -cum -Family Court, Ongole. The suit was filed by the respondent herein for recovery of an amount of Rs.2,05,11,560/ - with subsequent interest at 36% pa., seeking vacation of the defendant from plaint A schedule property and hand over vacant possession of the same.

(3.) The suit was filed alleging that the suit schedule property of an extent of 2020 sq. meters located in Survey Nos.11/1, 11/2, 10/2A and 10/2B in RTC Bus Stand premises in Ongole Town within the Municipal Corporation Limits of Ongole belongs to APSRTC. The APSRTC advertised inviting bids for developing the said property in the month of October 2005 and the plaintiff was the only successful bidder. After accepting the bid, a development agreement was entered for development, construction, operation and management on 02.05.2006. As per the said development agreement, the plaintiff is entitled to sub -lease the built up space to any third party during the license period of 30 years commencing from 02.05.2006. The plaintiff constructed a multi -storied commercial complex under the name and style of Jyothi Plaza and the defendant approached the plaintiff for utilization of an extent of 41,764.88 sq. feet of built up area situated in Shop Nos.26, 31 and 37 in ground floor and balance extent in first floor, second floor and third floor as described in plaint B schedule. A lease and license agreement was entered between the plaintiff and the defendant for carrying on hotel and hospitality services on 09.02.2009. The license is for a period of 10 years commencing from 01.04.2009. In pursuance of the said licence, the property was delivered to the defendant. It was alleged that though the defendant commenced its business, it failed in payment of license fee regularly as per the terms of the agreement. One of the terms of the license stipulates that in case of default, the penal interest at 36% per month on the over due license fee (rent) shall be paid and in case of continuous default for a period of three months the license stands cancelled. The defendant committed default and the amounts paid by the defendant were adjusted till 01.11.2010. The plaintiff got issued a notice through his counsel to the defendant on 23.08.2011 and 10.11.2011 and after receipt of the notices, it paid one month rent. Though the defendant committed default in payment of rent for a continuous period of three months, he allowed the defendant to continue in possession at its request. Though the plaintiff referred the dispute to an Arbitrator through a letter on 18.10.2012 requesting him to act as an Arbitrator between the plaintiff and the defendant and the Arbitrator though expressed his consent on 20.10.2012, the defendant did not accept. There were exchange of notices between the plaintiff and the defendant, which ultimately lead to the filing of the above suit.