Case Note & Summary
The plaintiff, Faisal Khan, filed a suit in the High Court of Judicature at Madras seeking recovery of possession of his commercial property located at Old Nos.40/1, 40/A, 40/B, New Door No.176, Eldams Road, Teynampet, Chennai, along with rental arrears, damages for unlawful use and occupation, GST, and interest. The property was leased to the defendant, Leena Paulose, proprietrix of M/s. The Nail Artistry, under a Lease Deed dated 07.03.2019 for a period of 5 years at a monthly rent of Rs.5,50,000/- with a 12% enhancement after 3 years. The defendant failed to pay rent from July 2021 and continued to occupy the premises even after the lease period. The plaintiff claimed rental arrears of Rs.1,31,63,334/- from 01.07.2021 to 28.06.2023, damages of Rs.1,04,13,334/- for unlawful use and occupation from 01.12.2021 to 28.06.2023, GST of Rs.42,43,800/- for the same period, and future mesne profits at Rs.11,00,000/- per month from 29.06.2023 until possession is handed over, along with interest at 18% per annum. The court examined the lease deed and the defendant's failure to pay rent and vacate. The court held that the plaintiff is entitled to vacant possession of the property, rental arrears, damages for use and occupation, GST, and interest at 18% per annum. The court decreed the suit in favor of the plaintiff, directing the defendant to hand over vacant possession and pay the amounts claimed with costs.
Headnote
A) Property Law - Commercial Lease - Recovery of Possession - Lease Deed dated 07.03.2019 - Plaintiff, absolute owner, leased property to defendant for 5 years at monthly rent of Rs.5,50,000/- with 12% enhancement after 3 years - Defendant failed to pay rent from July 2021 and did not vacate after expiry - Court held that plaintiff is entitled to vacant possession, rental arrears, damages for use and occupation, GST, and interest at 18% per annum (Paras 1-22).
Issue of Consideration
Whether the plaintiff is entitled to vacant possession of the leased property, recovery of rental arrears, damages for unlawful use and occupation, GST, and interest from the defendant.
Final Decision
The suit is decreed in favor of the plaintiff. The defendant is directed to hand over vacant possession of the schedule mentioned property to the plaintiff and pay rental arrears of Rs.1,31,63,334/- with interest of Rs.22,41,000/-, damages of Rs.1,04,13,334/- with interest of Rs.13,74,750/-, GST of Rs.42,43,800/- with interest of Rs.6,63,795/-, future mesne profits at Rs.11,00,000/- per month from 29.06.2023 till possession, and future interest at 18% per annum on the principal sums from 29.06.2023 till realization. Costs of the suit are awarded to the plaintiff.
Law Points
- Lease deed
- rental arrears
- damages for use and occupation
- mesne profits
- interest
- GST
- Order IV Rule 1 Madras High Court O.S.Rules
- Order VII Rule 1 CPC
