IN THE COURT OF THE ADDITIONAL SENIOR CIVIL JUDGE
AT MAHABUBNAGAR
Monday, the 17th day of April, 2023
Present:- Smt.M.K.Padmavathi Prl. Senior Civil Judge, FAC. Addl.Senior Civil Judge, Mahabubnagar
O.S. No. 147 of 2013
Between:-
Padmashali Seva Sangham Trust, Mahabubnagar ….Plaintiff
And
1.The District Tribal Welfare Officer, Mahabubnagar.
2.The Commissioner, Tribal Welfare Department, Hyderabad.
3.The State of A.P., through the District Collector, Mahabubnagar.
….Defendants
Sub:- Suit for recovery of money towards agreed rents.
* * *
This suit is coming before me for final hearing in the presence of Sri K.Anil Kumar, Advocate for the Plaintiff and Asst. Govt. Pleader for defendants, and having stood over for consideration till this day, the Court delivered the following Judgment:-
J U D G M E N T
1.This is a suit filed by the plaintiff trust against the defendants seeking direction to pay Rs.3,76,310/- with future interest @ 18 % PA on the due amount from the date of suit till realisation.
Page 2 of 18 OS.No. 147 of 2013, dt. 17.04.2023
2.The gist of the plaint averments is as follows: The plaintiff is a registered trust with Registration No. 12/90, situated in
Mahabubnagar. The trust owns properties near Ashok Talkies,
Mahabubnagar, which consist of a carpet area of 443 square feet spread across two floors. Defendant No. 1 approached the plaintiff seeking accommodation to establish their office at the premises of
Padmashali Seva Sangam Trust, Padmashali Kalyana Mandapam, near Ashok Talkies, Mahabubnagar. Defendant No. 1 provided an assurance to stay in the said premises of two floors for a duration of two years, and the plaintiff accepted the offer.
a). Defendant No.1 requested the plaintiff to make various modifications and provide additional facilities through a letter dated 19.9.2011. These included a cardboard partition, attached toilets, white washing, repairs, glass fittings for windows and ventilators, 18 fans, 28 tube lights, and other necessary amenities on the two floors. In response, Defendant No. 1 assured the plaintiff in a letter
dated 14.10.2011 that they would occupy the premises for
two years if the mentioned amenities were provided.
Believing that Defendant No. 1 would stay for the agreed period, the plaintiff spent around 4 lakhs on the modifications. Defendant No. 1 occupied the premises in
November 2011. The Rent and Building (R&B) department
Page 3 of 18 OS.No. 147 of 2013, dt. 17.04.2023 validated the rent for a total area of 4881.83 square feet at a rate of Rs. 26,850 per month, as per GOMs.No.63, dated 18.4.2012.
b). However, without prior notice, Defendant No. 1 suddenly started vacating the premises on 10.09.2011, claiming Vastu non-compliance. They completely vacated both floors by 15.09.2012 without paying any rent. This unilateral action by Defendant No. 1 violated the terms of the lease and their earlier assurance. The plaintiff, who had made substantial investments in the modifications, expected to receive rental income for at least two years to cover the expenses.
c). In response, the plaintiff issued a legal notice on 17.09.2013 under Section 80 of the Code of Civil Procedure, exposing the defendants' illegal activity and demanding payment of rent for the promised two-year period, along with compensation for falsely blaming the premises. While all the defendants received the notices, Defendant No. 2 returned a copy of the letter to Defendant No. 1, as confirmed by CTW memo RC.No.D3/8605/2012, dated 25.10.2012. Defendant No. 1 then sent a letter to the plaintiff, through RC.No.A7/1025/11, dated 25.9.2012, acknowledging the vacation of the second floor on
Page 4 of 18 OS.No. 147 of 2013, dt. 17.04.2023 10.09.2012, while retaining the first floor and promising rent payment upon budget availability.
d). Later, Defendant No. 1 sent a cheque (No. 231287,
dated 24.11.2012) worth Rs. 2,69,395/- to the plaintiff as
rent for the period from 10.11.2011 to 10.09.2012, as mentioned in the letter RC.No.A1/1025/11, dated 24.11.2012. Subsequently, Defendant No. 3 informed the plaintiff through a letter (No.A7/1025/11, dated 28.2.2013) that the first floor was also vacated on 28.02.2013, with rent payment dependent on the budget availability. The plaintiff observed that Defendant No. 1 had removed 29 tube lights, worth Rs. 1,305/-, installed by the plaintiff during the process of vacating the premises. The defendants' act of vacating the premises without terminating the lease, contrary to their agreement to stay for two years, is deemed illegal and unilateral.
e). The plaintiff made significant modifications to the premises at considerable expense to meet the defendants' requirements, anticipating that it would be offset by the rental income over two years. However, due to the premature vacation of the premises, the plaintiff suffered substantial financial losses and mental distress. As a result, the plaintiff is seeking to recover an amount of Rs.
Page 5 of 18 OS.No. 147 of 2013, dt. 17.04.2023 3,76,310/- from the defendants, along with interest.
Therefore, the plaintiff has filed this lawsuit.
3.Defendant No.1 filed a written statement, while defendant
No.2 and defendant No.3 submitted an adoption memo. In their statement, defendant No.1 mentioned that they proposed to use the premises as an office cum warehouse for two years, but no agreement on stamp paper was executed. They took possession of the building on 10.11.2011. The District Collector's endorsement questioned the staff strength and the need for a 4881 square feet area. Based on this, the defendants claimed that they vacated the premises for the following reasons:
1.The building has three floors, with the office on the first floor and the second floor used for storing materials. Transporting items from the ground floor to the second floor was challenging and required labor.
2.The building's proximity to a motor workshop line and three film theaters caused inconvenience and disrupted the office atmosphere due to noise and disturbance.
3.The presence of a Lord Shiva temple on the ground floor created discomfort for staff and the public, as walking on the temple premises was considered a matter of sentiment. This situation also led to health problems among staff members. Considering these circumstances, the defendants decided to vacate the building.
a). They further submitted that the rent was fixed by
E.E., R& B, Mahabubnagar as per GOMs.No.63, dt.18.04.2011 @ Rs.26,850/- per month and the amount was paid to vacation of building from 14.11.2011 to 10.09.2012 through cheque No.231287 for Rs.2,69,395/- and cheque No.258920 for Rs.76,075/-. Thus, in all the
Page 6 of 18 OS.No. 147 of 2013, dt. 17.04.2023 defendant has paid Rs.3,46,010/-. They further submitted that they vacated the premises as per the order of the
District Collector. Already they have paid entire rent amount to the plaintiff through the cheques and they are not due for any amount. They are not responsible for missing of 29 tube lights as contended by the plaintiff.
There is no written agreement to stay for two years. Hence question of recovery of rent for a period of two years from this defendant does not arise. Hence, prayed to dismiss the suit.
4.Basing on the pleadings, my predecessor in the office framed the following issues for consideration.
i) Whether there is any agreement of lease between the plaintiff and D1 for a period of two years?
ii) Whether the plaintiff is entitled to recover the rents for the period of two years as per agreement?
iii) Whether the plaintiff is entitled for a decree against defendant for a sum of Rs.3,76,310/- with future interest 2 18% p.a. as prayed for?
iv) To what relief?
5.In support of their contention, the plaintiff examined
Secretary of the plaintiff trust, K. Laxminarayana, as PW1.
Through him, they presented and marked documents as Exs. A1 to A12. On behalf of the defendants, district Tribal welfare officer,
Page 7 of 18 OS.No. 147 of 2013, dt. 17.04.2023
Mahabubnagar, Mudavath Chatru was examined as DW1. No documents were marked during his testimony.
6.Heard the plaintiff and defendants. Perused the record.
Issue Nos.1 to 3:-
7.To avoid repetition and for the sake of convenience, this court intends to discuss issues 1 to 3 collectively. In this case, the plaintiff called the Secretary of the plaintiff's trust as PW1 to support their claims and through him, they marked documents
Exs. A1 to A12. The chief examination affidavit of PW1 reflects the same assertions as those made in the plaint. Pw1 contended that defendant No.1 approached them seeking accommodation for their office at the premises of Padmashali Seva Sangam Trust,
Padmashali Kalyana Mandapam, near Ashok Talkies,
Mahabubnagar. Defendant No.1 assured the plaintiff that they would occupy the two floors for a period of two years, and the plaintiff accepted this offer as confirmed in letter Ex.A1. The letter also mentioned that the Tribal Welfare office, Mahabubnagar, had inspected the Padmashali Seva Bhavan located at Ashok Talkies and found it suitable for office use. Furthermore, defendant No.1 requested the plaintiff to undertake certain necessary actions to prepare the building for their occupancy, including installing a cardboard partition for staff, attaching toilets, conducting white washing and minor repairs, and fitting glass to the windows,
Page 8 of 18 OS.No. 147 of 2013, dt. 17.04.2023 among other tasks. It is also mentioned that the rent will be paid in accordance with government orders. Additionally, in letter
Ex.A2 addressed by M. Saraswathi, DTWO Mahabubnagar, to the
President of Padmashali Bhavan, Mahabubnagar, dated 4.10.2011, it states, "We are ready to occupy your building for office purposes for a period of two years on a rental basis if you are willing to create partitions in the second floor and close the ventilators, and construct a bathroom for official use. The rent will be paid as per the R&B rates and will be adjusted as per the prevailing rules." Ex.A3 is the acknowledgment of materials received by the DTW Officer, Mahabubnagar, dated 9.1.2012, acknowledging the receipt of materials from Padmashali Bhavan,
Mahabubnagar, including 18 fans, 28 tube lights, and 1 tube light without a tube. Ex.A4 is the office copy of the legal notice issued by Padmashali Seva Sangam Trust, along with the plaintiff, to defendant Nos. 1 to 3. The notice directs them to pay rent for the premises for the agreed period of two years, amounting to
Rs.6,44,400/- at the rate of Rs.26,850/- per month. The notice also includes a demand for interest at 18% per annum, in addition to the Rs.4 lakhs paid by the plaintiff for modifications as per instructions, and Rs.5 lakhs as compensation for the defendants' illegal and unilateral vacation of the premises, which has caused damage to the plaintiff's reputation in the public.
Ex.A5 is the postal acknowledgement, while Ex.A6 is the original
Page 9 of 18 OS.No. 147 of 2013, dt. 17.04.2023 letter addressed by DTWO to the plaintiff, dated 25.9.2012. In the letter, DTWO informs that, as per the order of the District
Collector, the 2nd floor of Padmashali Bhavan on Ashok Talkies road, belonging to Padmashali Seva Sangam Trust,
Mahabubnagar, has been vacated by the District Tribal Welfare
Officer on 10.9.2012. It is mentioned that only the 1st floor is now occupied from 10.09.2012 onwards. The letter assures that the rent for both the 1st and 2nd floors, from 10.11.2011 to 10.9.2012, as well as the rent for the 1st floor from 10.9.2012, will be paid soon after receiving the budget from the
Commissioner to Tribal Welfare, as per the proposal of the District
Collector, Mahabubnagar. Ex.A7 is the letter addressed by the
DTW Officer, Mahabubnagar, dated 24.11.2012, accompanied by cheque No.231287 as payment for rent from 10.11.2011 to 10.09.2012. Ex.A8 is the proceedings of the District Collector,
dated 28.11.2012, instructing the DTW Officer, Mahabubnagar, to
arrange for monthly payment of rent through a Demand Draft (DD) in favor of the plaintiff. The proceedings also authorize the
DTW office to continue occupying the plaintiff's building, with a monthly rent of Rs.26,850/-, and instructs them to debit the expenditure to the relevant head of account. Ex.A9 represents the rejoinder legal notice issued by the plaintiff to defendants 1 to 3.
It is accompanied by Ex.A10, the postal acknowledgement.
Furthermore, Ex.A11 consists of a letter addressed by the District
Page 10 of 18 OS.No. 147 of 2013, dt. 17.04.2023
Collector to the plaintiff on 28.2.2013. This letter informs the plaintiff about the vacation of the 1st and 2nd floors of the plaintiff's premises by the DTW Officer on 28.2.2013 due to budget constraints. The letter also assures the payment of rent for the 1st floor from 11.9.2012 to 28.2.2013, based on the availability of the budget. Lastly, Ex.A12 is an authorization letter.
8.Upon reviewing Exs.A1 and A2, it becomes evident that the
DTW officer, Mahabubnagar, approached the plaintiff with a request to accommodate their office on the 1st and 2nd floors.
The correspondence also mentioned that they had inspected the building and found it suitable for the District Tribal Welfare office in Mahabubnagar. They requested and assured to stay in the premises for a period of two years, subject to the plaintiff providing the requested amenities. Ex.A3 confirms that the plaintiff made the necessary arrangements, which were acknowledged by the DTW Office in Mahabubnagar. Additionally,
Ex.A8 reveals that the rent for the building was fixed at
Rs.26,850/- per month, as stated in the proceedings of the
District Collector under RC.No.A7/1025/11, dated 24.11.2012.
9.The defendants in this case specifically contend that there is no written agreement between the plaintiff and themselves regarding a two-year stay in the plaintiff's building. Consequently, they argue that they are not legally bound to pay rent for the
Page 11 of 18 OS.No. 147 of 2013, dt. 17.04.2023 aforementioned two-year period. However, as previously discussed, Ex.A2, a letter issued by the DTW officer, explicitly states their willingness to occupy the building for office purposes on a rental basis for a duration of two years, contingent upon the provision of specific amenities as requested. Moreover the defendants do not dispute the fact that the plaintiff failed to fulfill the requested amenity requirements outlined in letters Exs.A1 and A2. The defendants state that they vacated the building for several reasons. Firstly, the building had three floors, with defendant No.1's office on the first floor and the second floor used for storing notebooks, clothes, and materials from APCO, APTPC.
The defendants faced challenges in transporting cloth bales and notebooks between the ground floor and second floor, leading to labor difficulties. Additionally, the building's proximity to motor workshops and its location opposite three cinema theaters caused inconvenience, resulting in a lack of office ambiance and constant disturbance. Moreover, the presence of a Shiva temple on the ground floor, combined with the office's location on the first floor, inconvenienced both staff and the public, causing health problems. These factors led to their decision to vacate the premises. As previously stated, in letter Ex.A1, the DTW officer explicitly mentioned that they had visited the plaintiff's building near Ashok Talkies and determined it to be suitable for the office of the DTW office, Mahabubnagar. They proceeded to propose
Page 12 of 18 OS.No. 147 of 2013, dt. 17.04.2023 occupying the building only after confirming its suitability, contingent upon the fulfillment of specific amenities.
Consequently, the defendants' assertion in the written statement regarding the building's unsuitability for their office purpose is entirely baseless and lacks clarity.
In this case the counsel for the defendants extensively cross-examined PW1, but no evidence was uncovered to discredit his testimony. In fact, PW1 confirmed that no rental agreement was executed between the parties, but they did receive a letter,
Ex.A2, indicating their permission to stay in the premises for a duration of two years. He further stated that their building comprises three floors, and they have leased out the 1st and 2nd floors to the Tribal Welfare department. PW1 also stated that the
Tribal Welfare department took possession of the building on 10.11.2011, utilizing the 1st floor for office purposes and the 2nd floor as a godown. It is further stated that the plaintiff did not receive monthly rent from the defendants since the commencement of the tenancy. On 24.11.2012, the defendants issued a cheque with No.231287 amounting to Rs.2,69,395/- as rent for the period from 10.11.2011 to 10.9.2012. Subsequently, they issued another cheque with No.258920 for Rs.76,075/- covering the period from 11.09.2012 to 28.02.2013 at a rate of
Rs.13,425/- per month. The defendants vacated the 1st floor on
Page 13 of 18 OS.No. 147 of 2013, dt. 17.04.2023 10.09.2012 and the 2nd floor on 28.02.2013. The plaintiff entered into a two-year agreement with them and incurred significant expenses to provide the required amenities for the building. The plaintiff invested a substantial amount in modifications, under the belief that they would receive income for at least two years to offset the costs. However, before the expiration of the agreement, the defendants prematurely vacated the premises, resulting in financial loss for the plaintiff.
10.On the contrary, the defendants, in order to refute the plaintiff's claim and establish that they never made a promise to stay in the premises for a two-year period, presented DTW officer, Mahabubnagar Mudavath Chatru as DW1. The chief examination affidavit of DW1 mirrors the contents of the written statement. During cross-examination, DW1 acknowledged that they typically visit premises when they require a rental building, and after confirming its suitability, they request modifications. He further stated that the Collector serves as the final authority
before occupying any premises. Generally, when the government
rents a building, they enter into an unregistered lease agreement with the landlord. He added that in this case, they issued a letter to the plaintiff regarding the lease agreement as per Ex.A2. Their office records reveal that prior to renting the premises, they inspected the property, obtained permission from the Collector,
Page 14 of 18 OS.No. 147 of 2013, dt. 17.04.2023 and determined the rental amount. According to Ex.A2, the lease agreement is valid for a two-year period. Additionally, in Ex.A1, the defendants specified certain modifications required for the premises. They further mentioned that they sent two letters to the plaintiff at the time of vacating the premises, as evidenced by
Ex.A6. It is worth noting that Ex.A6 does not contain any statement indicating that they are vacating the premises due to the landlord's failure to make the modifications mentioned in
Ex.A1. The defendants' argument for vacating the premises is based on the unsuitability of the building for office rental purposes, citing the presence of motor workshops, theaters, and a temple within the building, which cause significant inconvenience and disturbance to their business operations.
During the cross-examination, DW1 acknowledged that the presence of the Lord Shiva temple in the suit premises predates their occupation. Similarly, the cinema theaters and motor workshops were already in the vicinity before they rented the premises. He also admitted that they visited the premises and obtained permission from the Collector, fixing the rent, only after confirming its suitability. Once they acknowledged the premises as suitable, they cannot now disregard their own admission in an attempt to conceal their shortcomings. Additionally, DW1 acknowledged that as per Ex.A2, they had agreed to occupy the premises for a two-year period, but they prematurely vacated the
Page 15 of 18 OS.No. 147 of 2013, dt. 17.04.2023 premises before the completion of the agreement. Consequently, the plaintiff issued a legal notice to them under Ex.A4. Based on
DW1's admission, it is evident that they had agreed to occupy the premises as outlined in Ex.A2, and they cannot refute their obligation to comply with its terms. The fact remains that defendant No.1 vacated the premises well in advance of the two- year agreement.
11.The court noted that defendant No.1 acquired the suit premises, specifically the 1st and 2nd floors, under a single letter with a monthly rent of Rs.26,850/-. However, as per the letter
Ex.A6, they vacated only the 2nd floor and continued to occupy the 1st floor, paying rent for the period from 11.9.2012 to 28.2.2013 at a rate of Rs.13,425/- per month, totaling
Rs.76,075/-. This action is in direct contradiction to their original agreement. Regardless of the circumstances, defendant No.1 approached the plaintiff through letters Exs.A1 and A2, expressing their intention to rent the plaintiff's building for their office on the first and second floors, at a monthly rate of
Rs.26,850/-. Based on their request, the plaintiff provided amenities to the building, investing a significant amount, with the expectation that the defendants would occupy the premises for a duration of two years. It is worth noting that the defendants have not denied receiving the amenities as requested in letters Exs.A1
Page 16 of 18 OS.No. 147 of 2013, dt. 17.04.2023 and A2. However, Ex.A3 reveals that the DTW Office received materials such as 18 fans and 28 tube lights (excluding one tube) from Padmashali Bavan, Mahabubnagar, which were duly acknowledged. Despite availing themselves of the provided amenities and utilizing the building, they abruptly vacated the premises before completing the agreed two-year period, causing financial loss to the plaintiff. Taking into consideration the aforementioned factors, this court concludes that the defendants are responsible for paying rent for the plaintiff's premises for a duration of two years, as agreed upon, at the rate of Rs.26,850/-, totaling Rs.6,44,400/-. The available records indicate that defendant No.1 has already made a payment of Rs.2,69,395/- through cheque No.231287, covering the period from 10.11.2011 to 10.09.2012. Additionally, they paid Rs.76,075/- via cheque
No.248920 for the period from 11.09.2012 to 28.02.2013 at a rate of Rs.13,425/- per month, as stated in cheque No.258920.
However, no agreement was reached regarding maintenance charges between the plaintiff and defendant for the 1st floor at the rate of Rs.13,425/-. Since defendant No.1 vacated the premises well before the agreed-upon date, they are liable to pay the entire rent for the period from 11.09.2012 to 28.02.2013.
Considering that defendant No.1 has already paid Rs.3,45,470/-, they still owe the plaintiff an amount of Rs.2,98,930/-, along with applicable interest. As mentioned above, since defendant No.1
Page 17 of 18 OS.No. 147 of 2013, dt. 17.04.2023 has violated the terms of the contract, they are obligated to pay
Rs.2,98,930/- to the plaintiff. Therefore, the plaintiff prevails over the defendants with regard to issues 1 to 3.
Issue No.4:-
12.In the light of findings in the issue Nos. 1 to 3, the plaintiff is entitled for the relief as prayed for.
13.In the result, the suit is partly decreed against the defendants directing them to pay Rs.2,98,930/- to the plaintiff @ 18% p.a., from the date of suit till realisation, with costs. The defendants further directed to pay the above said amount to the plaintiff within a period of three months, failing which the plaintiff is at liberty to recover the same through due process of law.
Dictated to Stenographer, transcribed by him, corrected and
pronounced by me in open court on this the 17th day of April, 2023.
Prl. Senior Civil Judge, FAC. Addl. Senior Civil Judge, Mahabubnagar
APPENDIX OF EVIDENCE
Witnesses examined
Plaintiff:
Page 18 of 18 OS.No. 147 of 2013, dt. 17.04.2023
PW1K.Laxminarayana
Defendant/s:
DW1Mudavath Chatru
Exhibits marked Plaintiff:
Ex.A1Original Lr. Address to the plaintiff by DTW Officer,
dt. 29.9.2011
Ex.A2Original Lr. Addressed to the plaintiff by District tribal welfare officer, dt. 14.10.2011 Ex.A3Acknowledgement of Materials by DTW office, dt. 19.1.12
Ex.A4Original letter addressed to the plaintiff by DTWO,
dt. 25.09.2012
Ex.A5Postal acknowledgement cards -2
Ex.A6Original Lr. Addressed to the plaintiff by DTWO, dt. 25.09.12
Ex.A7Original Lr. Addressed to the plaintiff by DTWO dt, 24.11.12 Ex.A8Proceedings of the District Collector, dt. 24.11.12
Ex.A9Office copy of rejoinder legal notice 17.1.12
Ex.A10Postal ack. Cards -2
Ex.A11Original letter addressed to the plaintiff by Dist. Collector,
dt. 28.02.13
Ex.A12Authorization letter by plaintiff, dt. 8.4.2013
Defendant/s:
-Nil-
Prl. Senior Civil Judge, FAC. Addl. Senior Civil Judge, Mahabubnagar