TMI Blog2019 (9) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and recovery proceedings by terminating the lease in question as mentioned in their legal notice, as referred to above. However, the Petitioner chose to invoke provisions of Code without substantiating that they are entitled to claim for the alleged rent accrued. They have also not stated as to how period of 45 days exemption of rent and the Advance of ₹ 35 Lakhs deposit were treated. Petitioner has not produced any evidence to show that the lease premises were delivered to Lessee as per the terms and conditions mentioned in the Lease Deed in question. Moreover, the Petitioner failed to attend the defects as pointed out by the Respondent in their reply. Main lease deed was executed by and between the Operational Creditor and M/s. New Deccan International. The prime responsibility lies on M/s. New Deccan International, and subsequently only, they have executed amendment lease deed executed on 05.04.2017. The amendment lease deed only refers all terms and conditions as mentioned in the Lease deed dated 10.12.2015 except the Rent would be paid by the present Corporate Debtor. However, the Petitioner chose to file the present case only against one of them absolving origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C099545 and its paid up Capital is ₹ 10,00,000 (Rupees Ten Lakhs only). (3) It is stated that the Petitioner herein is the owner of a commercial building situated at No.30, Third Floor, Church Street, Civil Station, Bangalore (the Scheduled Premises ).At the request of M/s. Deccan International by seeking lease of premises to run its business, the Petitioner by agreeing the same, executed a Lease Deed dated 10.12.2015, and it was also registered as Document No. 4270/2016-17 in the Office of the Sub-Registrar, Shivaji Nagar. Subsequently, M/s. Deccan International amended the Lease Deed dated 10.12.2015, by which lease of the Scheduled Premises was assigned to the Corporate Debtor. The Amended Lease Deed was also came to be registered as Document No. 81/17-18 in the Office of the Sub-Registrar, Shivaji Nagar. (4) As per the Lease Deed, the Corporate Debtor has to pay on monthly basis to the Petitioner. The rent for the period from 10.12.2015 to 09.12.2016 was ₹ 3,50,000/- per month and for the period from 10.12.2016 to 09.12.2017 was ₹ 4,02,500/- per month. However, the Corporate Debtor stopped making payment of rent from May, 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the commercial business in the leased premises. Further, it is informed that the leased premises shall commence from the date on which the Trade License and Occupancy Certificate are obtained from the Statutory Authority in favour of them to carry on the commercial business. iii. Subsequently, a demand notice dated 25.10.2018 in Form No.3 was issued by the Corporate Debtor by demanding to pay an amount of ₹ 98,55,000/- in terms of Lease Deed dated 10.12.2015 vide Document No.4270/2016-2017 and also amendment to Lease deed dated 05.04.2017 vide Document No.81/2017-18, within 10 days from the receipt of the copy of the order. (7) In pursuant to the above demand notice issued by the Corporate Debtor has got the issue by the Operational Creditor reply dated 09.11.2018, by inter alia contending are as follows: i. It is stated that the demand notice was issued as counter-blast to the criminal proceedings initiated by the Corporate Debtor against the Operational Creditor for cheating and criminal breach of trust. ii. They have inter alia engaged in the business of running and operating a chain of restaurants and pubs in va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the dispute between your client and our client in connection with the Leased Premises. vi. Since they themselves has already suffered substantial losses on account of the misrepresentations made by the Petitioner, they have the right to initiate appropriate proceedings for damages and breach of contract. vii. Therefore, they have called upon them to unconditionally withdraw the demand notice dated 25.10.2018, and further demanded them to forthwith furnish them , A copy of the sanction plan from BBMP ; Copy of the Occupancy Certificate issued by BBMP; a Certificate/approval from the fire department; License issued by the Department of Electrical Inspectorate in respect to operation of Lifts in the building; within a period of 15 days from receipt of this notice, failing which, they have warned to take action . 3. Heard Shri S. Guru Prasanna, learned Counsel for the Petitioner. We have carefully perused the pleadings of the party and the material documents and the extant provisions of the code and the law on issue. 4. The Learned Counsel for the Petitioner has again reiterated various averments made in the Company Petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... months. The Lessee cannot terminated the lease during the subsistence of the lock in period. The Lessee can be terminated by the Lessee by giving the Lessor, three months notice period for termination of the Lease or paying two month s rent in lieu thereof. The lessee shall be entitled to 45 (forty five days) rent free occupation of the premises in order to enable the lessee to undertake improvements, interiors etc. The monthly rent agreed for the premise is ₹ 3,50,000/- to payable by the Lessee in advance on 10th Day of every month. 7. The Lessee in consideration of grant of Lease of Premises, agreed to deposit and maintain with the Lessor an Interest Free Refundable Security Deposit of ₹ 35,00,000/- (Rupees Thirty Five Lakhs Only), paid by the following manner: a. Rs. l0,00,000/- (Rupees Ten Lakhs Only) paid by the way of Cheque bearing No. 185983 dated 10.12.2015 drawn on Axis Bank Limited, Bengaluru, as token advance. b. ₹ 25,00,000/- (Rupees Twenty Five Lakhs Only) paid by way of Cheque Bearing No. 185984, drawn on Axis Bank Limited, Bengaluru. This cheque of ₹ 25 Lakhs shall be presented for encashment, onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose for which the Lessee leased. (6) The Lessee shall be entitled to terminate the lease during the Term of Lease and renewals if any, without any payment, forthwith upon the happening of the following: a. Peaceful possession and enjoyment of the Premises is disturbed, interrupted or hampered in any manner whatsoever due to any non-compliance with local land laws or other statutory requirements/compliances or otherwise relating to the schedule premises not having been maintained during the term of the lease by the Lessor; or b. There is a defect in the Lessor s title to the Premises. c. Any or all representation of the Lessor is found to be untrue/ incorrect. (7) The Lessor shall be entitled to terminate the lease for non-payment of rent for a period of 3 consecutive months during the subsistence of the lease or any renewed term thereof except for reasons stated in clause 5(c). Upon termination of this Deed the Lessor shall refund to the Lessee the IFRSD amount of ₹ 35,00,000/- (Rupees Thirty Five Lakhs Only) (the IFRSD ) refundable by the Lessor to the Lessee in accordance with the terms of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,50,000 x 7= 24,50,000 Rent for year II 4,02,500 February 2017 to December 2017 (11 months) 4,02,500 x 11= 44,27,500 Rent for year III 4,22,625 January 2018 to December 2018 (12 months) 4,22,625 x 12 = 50,71,500 Total 1,19,49,000 11. The main lease dated 10.12.2015 contained several terms and conditions as briefly stated supra. In the first instant instance, in order to claim any rights under any agreement/contract, the concerned party should fulfil the obligations under those covenants. It is not known as to why the Petitioner has not terminated the Lease when the Respondent failed to pay rent for so many months as claimed. And there is no answer from the Petitioner about defective/false declarations made in the Lease Deed as detailed supra. Moreover, it is not the case of Petitioner that the Respondent is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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