IN THE COURT OF LD.

DISTRICT JUDGE (COMMERCIAL

COURT) WEST DISTRICT, TIS HAZARI COURTS, NEW
DELHI

COMMERCIAL COURT JURISDICTION

COMMERCIAL SUIT NO. ____OF 2022

IN THE MATTER OF:-

DAVENDER SINGH & ANR. …PLAINTIFFS

VERSUS

GENERATION X & ORS. …DEFENDANTS

COMMERCIAL SUIT U/S 6 OF THE COMMERCIAL COURTS ACT,

2015, FOR POSSESSION AND RECOVERY OF ARREARS OF RENT
AND USER CHARGES/DAMAGES/MESENE PROFIT/DAMAGES FOR
RS. 44,85,000/- (RUPEES FORTY FOUR LAKHS EIGHTY FIVE
THOUSAND ONLY) ALONG-WITH PENDE-LITE AND FUTURE
INTEREST @ 18% PER ANNUM AND PERMANENT INJUNCTION

VALUE FOR THE PURPOSE OF COURT FEE AND JURISDICTION RS.

_______ON RECOVERY OF RENT AND RS. __________ON RELIEF OF
RECOVERY OF POSSESSION. TOTAL COURT FEE PAID
___________________

MOST RESPECTFULLY SHOWETH THAT :

1. Plaintiffs are the joint owners of Entire Second Floor (without roof/terrace
rights), which is a part of Freehold built up property bearing no. 13C,
situated at North West Avenue, Club Road, Punjabi Bagh, New Delhi-
110026 (hereinafter called ‘Suit Property’). The site plan of the suit
property is filed along-with the present suit as Annexure-1.
2. Defendants no. 2 & 3 are the partners of a partnership firm namely
‘Generation X’, which is arrayed as defendant no.1 in the present suit.
Defendant no.2 had approached the plaintiffs for taking Suit Property on
rent. The defendants shared partnership deed dated 18 th July 2021, which
reveal that the defendants no. 2 & 3 run the business of Hospitality/Bar &
 Restaurant, under the name and style ‘Addiction Cafe’. The defendant
no.2 is the majority shareholder of the profit and losses. The partnership
deed dated 18th July 2021, shared to the plaintiffs is filed along-with the
present suit as Annexure-2.
3. Defendants were carrying the business of ‘Restaurant, Bar & Café’, in the
Suit Property prior to its purchase by the plaintiffs and tendering rent to its
previous owners. It is significant to mention that the Suit Property is
located on a road declared commercial by the competent authority and any
commercial activity can be legally carried out in the same.
4. The Suit Property was purchased by the plaintiffs on 22 nd October 2021.
The defendants approached the plaintiffs, to take on rent the Suit Property,
so as they could continue with the Restaurant, Bar & Café Lounge
business in the same premises. The plaintiffs agreed to the proposal of the
defendants. It is worth mentioning that defendant no.2 was the key person,
who negotiated the rent and promised to tender the same, within time.
5. Apropos agreement between parties, a Lease Agreement was duly
executed between them on 28 th December 2021. The Lease commenced
from 1st January 2022, to subsist till 31 st December 2024, for three (3)
years. As per the Lease Agreement, the defendants were to carry the
business of RESTAURANT, BAR & CAFÉ LOUNGE under the name
and style of “ADDICTION CAFÉ”. Excluding electricity and water
charges, amount of monthly rent was fixed as below:-
PERIOD AMOUNT OF MONTHLY RENT
FROM 1ST January 2022 to 31st Rs. 2,50,000/- (Rupees Two Lacs
December 2022 Fifty Thousand only) + 18% GST
(if applicable)
FROM 1ST January 2023 to 31st Rs. 2,62,500/- (Rupees Two Lacs
December 2023 Sixty-Two Thousand Five Hundred
only) + 18% GST (if applicable)
FROM 1ST January 2024 to 31st Rs. 2,75,625/- (Rupees Two Lacs
December 2024 Seventy-Five Thousand Six
Hundred Twenty-Five only) + 18%
GST (if applicable)
 The said Lease Agreement was duly registered on 28.12.2021, in the Sub-
Registrar’s office IIA, Subdivision Punjabi Bagh, vide Registration No.
7,995 in Book No. 1 Vol. No. 4,367 on pages 184 to 193. The copy of the
Lease Agreement dated 28th December 2021 is filed along-with the present
suit as Annexure-3.
6. As per the agreed terms of the Lease, defendants were liable to pay the
rent in advance, on or before every 10 th day of the calendar month (Clause
2). It was initially agreed that the defendants would deposit three (3)
months security, equivalent to three (months) rent, which was to be
refunded by plaintiffs upon expiry of the Lease. However, later defendants
requested to reduce it to two (2) months, citing some law in that regard. It
is significant to mention that the Three months security deposit mentioned
in the Lease Agreement is inadvertent. From the amount reflecting in the
Lease Agreement, it is evident that the security amount of two (2) months
was tendered by the defendants. Hence, a security amount of Rs. 500,000/-
(Rupees Five Lakhs only) along-with the advance rent of Rs. 250,000/-
(Rupees Two Lakhs Fifty Thousand only) for the month of January 2022
was agreed to be paid together.
7. However, the said amount of Rs. 750,000/- towards two (2) months
security and advance rent for the month of January 2022 (split equally
between the plaintiffs) could be paid by the defendants, only on
22.02.2022 & 28.02.2022. The account statements issued by the bankers
of the plaintiff no.1 & 2, evidencing the same is filed along-with the
present suit as Annexures-4 (Colly). Not only that the defendants delayed
security deposit payments, there was a delay of 44 days in tendering the
rent for the month of January 2022.
8. The defendants did not follow financial discipline, starting from the lease
period. The plaintiffs had to chase them every now and then, for the
monthly rents. No rent was paid for the months of February, March &
April 2022. After lot of follow ups by the plaintiffs, defendants issued
cheques bearing nos. 000006 & 000007, dated 19.04.2022 & 09.05.2022,
drawn on HDFC Bank, New Rohtak Road, Sarai Rohilla, Anand Parvat,
Karol Bagh, New Delhi-110005, each for an amount of Rs. 112,500/-
(Rupees One Lakh Twelve Thousand Five Hundred only) in favour of
plaintiffs no.1 & 2 respectively. To the dismay of plaintiffs, when the said
 cheques were presented for encashment, they were returned by their
Bankers with the remarks “Funds Insufficient”. Constrained with the
above, the plaintiffs were compelled to issue Legal Notice dated
27.06.2022 to the defendants. Copy of the said legal notice is filed along-
with the present notice as Annexure-5.
9. The money under cheques were finally credited into the accounts of
plaintiffs, in the month of July on 11th July 2022, after presenting the
cheques multiple times. It is stated that rent amount of the month of
February 2022 was paid by the defendants, with a delay of 137 days.
Further an amount of Rs. 250,000/- (Rupees Two Lakhs Fifty Thousand
only) towards rent for the month of March was paid to the plaintiffs i.e. an
amount of Rs. 125,000/- (Rupees One Lakh Twenty-Five Thousand only)
to each plaintiff, only on 03.08.2022. There is thus delay of 136 days in
the same.
10. There haven’t been any rents paid for the months of April till August
2022. Hence the defendants are in arrears of rents for the said months, as
well as the penalty, on account of failure to pay monthly advance rent,
agreed in Clause 2 of the Lease Agreement. The Clause 2 of the said
Lease Agreement is reproduced as under:-

“That the above said premises has been let out by the LESSORS to the
LESSEES on fixed and agreed monthly lease rent to be paid regularly in
advance on or before every 10th day of each English Calendar month by
way of CHEQUE/RTGS/NEFT by the LESSEES to the LESSORS. The
penalty for failure of monthly advance rent after 15th day of each month
will be Rs. 5,000/- per day strictly, which has to be paid by the LESSEES
to the LESSORS fully before the next month rent is due.”

11. The penalty payment liability mentioned in Clause 2 is in addition to the

arrears of the monthly rents. The arrears of the rents and penalties, due and
payable by the defendants are delineated as under: -
Month & Rent amount of Rs. Delay Total amount
Year 250,000/- Paid on Days payable (Delays
days x penalty
amount of Rs. 5000
 + Monthly rent)
January 2022 22.02.2022 (Rs. 125,000/- 44 44x5000 =
to plaintiff no.1) & Rs. 220,000/-
28.02.2022 (Rs. 125,000/-
to plaintiff no.2
February 11.07.2022 (Rs. 112,500/- 150 150x5000 =
2022 to plaintiff no.1) & Penalty delay Rs.
14.06.2022 (Rs. 112,500/- 750,000/-
to plaintiff no.2)
March 2022 03.08.2022 (Rs. 125,000/- 138 138x5000=
to plaintiff no.1) & Penalty delay Rs.
03.08.2022 (Rs. 125,000/- 690,000/-
to plaintiff no.2)
April 2022 Not paid till the filing of 120 120x5000 = Penalty
the suit delay Rs. 600,000 +
Rent amount Rs.
250,000/- totalling
to Rs. 850,000/-
May 2022 Not paid till the filing of 90 90x5000 = Penalty
the suit delay Rs. 450,000 +
Rent amount Rs.
250,000/- totalling
to Rs. 700,000/-
June 2022 Not paid till the filing of 60 60x5000 = Penalty
the suit delay Rs. 300,000 +
Rent amount Rs.
250,000/- totalling
to Rs. 550,000/-
July 2022 Not paid till the filing of 30 30x5000 = Penalty
the suit delay Rs. 150,000 +
Rent amount Rs.
250,000/- totalling
to Rs. 400,000/-
August 2022 Not paid till the filing of 15 15x5000 = Penalty
the suit delay 75000 + Rent
 amount Rs.
250,000/-, totalling
to Rs. 325,000/-
GRAND TOTAL Rs. 4,485,000/-
(Rupees Forty-
Four Lakhs
Eighty-Five
Thousand only)

12. Apart from their liability to pay the amount mentioned above, the
plaintiffs are also liable to be evicted from the Suit Premises. The
plaintiffs are in breach of Clause 22 of the Lease Agreement that is
reproduced here under: -
“That in case of default or non-payment of advance rent for two
consecutive months, the agreement will automatically stand terminated
and the LESSEES shall be under obligation to vacate the premises and
handover vacant possession immediately to the LESSORS.”
In view of the express stipulation in the lease deed, the lease executed
between the plaintiffs & defendants stand terminated.
13. The plaintiffs got issued legal notice dated 27 th June 2022, through their
advocates, seeking from defendants, the rent arrears and penalty amount.
Defendants were also asked to handover the peaceful possession of the
Suit Property, within 15 days of the receipt of the Legal Notice.
Defendants have not complied with the said notice, as they are still in
arrears (mentioned above) and also not delivered the peaceful possession
of the Suit Property. On account of the arrears of rent for consecutive two
(2) months and also through Legal Notice dated 27 th June 2022, the
tenancy of the defendants stood terminated. The defendant’s status in the
Suit Property is of trespassers. Notice for recovery of arrears and seeking
eviction of the Suit Premises is filed as Annexure-6. The said legal notice
stood duly served upon the defendants.
14. In light of the facts mentioned above, the plaintiffs are constrained to
bring the present suit before this Hon’ble Court. The defendants have no
right to remain in occupation of the Suit Property. Since the tenancy stood
terminated as per clause 22 of the lease deed, due to the non-payment of
 rents, the defendants are also liable to make payment of Rs. 5000/- per day
for each day’s delay and occupation, more particularly given in para 11 of
the plaint and till the date of actual vacant peaceful and physical
possession of the Suit Property to the plaintiffs, besides electricity and
other charges. The said entitlement of the plaintiffs is without prejudice to
their rights seeking possession of the Suit Property and not a contrary
submission.
15. The plaintiff no.1 recently met the defendants, in the middle of the month
of August 2022, with a request to vacate the Suit Property and pay the
arrears. At this the defendants openly challenged him that they will neither
pay rent nor vacate the Suit Property. Defendants told plaintiff that the
Suit Property would soon become a disputed property as they would
introduce sub-tenants or put anti -social elements in the same. The
plaintiffs are scared that their hard-earned money would be wasted if the
defendants are allowed to succeed in their design. Recently plaintiff has
received information from the neighbours that the defendants have
declared that they will sub-let and outsource their business to some third
party. The defendants have challenged that they would remove all their
valuable goods without paying the arrears.
16. The cause of action for filing the present suit arose firstly when the
defendants approached plaintiffs for taking the Suit Property on rent. It
further arose when the Lease between them was duly registered on
28.12.2021. The cause of action also arose on all such dates when rents for
the months of January, February & March 2022 were tendered with delay
(mentioned in Clause 2 of the Lease Agreement). The cause of action for
filing the present arose on 27th June 2022, when the counsel for the
plaintiffs issued legal notices under section 138 Negotiable Instruments
Act, 1881 and another notice of the even date for demanding arrears of
rent & peaceful possession of the Suit Property. The cause of action again
arose when the defendants openly challenged plaintiffs that they will
neither pay rent nor vacate the Suit Property. It further arose when
Defendants told plaintiff that the Suit Property would soon become a
disputed property as they would introduce sub-tenants or put anti -social
elements in the same. The cause of action for filing the present suit still
 subsists and continue, since the defendants have neither paid the arrears
nor handed over the peaceful possession of Suit Property.
17. That this Hon’ble Commercial Court has jurisdiction to try and entertain
the present suit, as the Suit Property lies in the territorial jurisdiction of
this Hon’ble Court. All other cause of actions like registration of Lease
Agreement and non-payment of rent is also the jurisdictional subject of
this Hon’ble Court. This Hon’ble Court has territorial as well as pecuniary
jurisdiction to try and adjudicate the present suit.
18. The value of the present suit for the purpose of Court fee and jurisdiction
is valued as under:-
a. For the relief of possession of the Suit Property, the present suit is
valued at the annual rental value i.e. Rs. 30,00,000/- (Rupees Thirty
Lakhs only) on which ad-valorem court fee of Rs. _______is
applicable.
b. For the relief of recovery of arrears of rent along-with the mesne
profits/damages totalling to amount of Rs. 4,485,000/- (Rupees Forty-
Four Lakhs Eighty-Five Thousand only) on which ad-valorem court fee
of Rs. _______is applicable.
c. For the relief of Permanent Injunction, the present suit is valued at
fixed court fee of Rs. 130/- and fixed court fee of Rs. 13/- is applicable
Consolidated court fee of Rs. ___________is thus affixed with the
present suit. The plaintiffs undertake to pay further any deficient court
fee, should this Hon’ble Court find the same.
19. That the subject matter of the present suit is in the nature of a Commercial
Dispute as defined under Section 2 (c) (vii) of the Commercial Courts,
Commercial Division and Commercial Appellate Division of High Courts
Act, 2015, and is liable to be heard and adjudicated by the Commercial
Division of this Hon’ble Court, in view of the provisions of the
Commercial Courts, Commercial Division and Commercial Appellate
Division of High Courts Act, 2015.
20. There is no delay in filing the present suit and it is filed within the
limitation period prescribes under the Limitation Act.

PRAYER:
In view of the submissions made in the preceding paragraphs and in the
interest of justice, it is most respectfully prayed to this Hon’ble Court that
this Hon’ble Court may be pleased to: -
A. Pass a decree for possession of the Suit Property i.e. Entire Second
Floor, part of Freehold built up property bearing no. 13C, situated at
North West Avenue, Club Road, Punjabi Bagh, New Delhi- 110026
(more specifically shown in red in the annexed site plan) against the
defendants and in favour of the plaintiffs thereby directing the
defendants and their representatives, servants, , assignees, agents,
associates, successors or any other person acting on their behalf to
handover the vacant and physical possession of the suit property to the
Plaintiffs;
B. Pass a decree for an amount of Rs. 4,485,000/- (Rupees Forty-Four
Lakhs Eighty-Five Thousand only) towards the arrears of rent and
penalty for use and occupation/mesne profits/damages as detailed in
para 11 of the plaint, against the defendants and in favour of the
plaintiffs; along with pendent lite and future interest @ 12 % per
annum besides electricity, water and other charges in favour of the
Plaintiffs and against the Defendants;
C. Pass a decree of Permanent Injunction in favour of the plaintiffs and
against the Defendants thereby permanently restraining the
Defendants, their legal heirs, attorneys, servants, representatives,
assignees, agents, associates, successors or any other person acting on
their behalf from sub-letting, creating any third party interest or any
other parting with the possession of the suit property (more
specifically shown in the red colour in the annexed site plan) without
the consent of the Plaintiffs or from removing their stock/goods from
the suit premises without paying the arrears of rent and the dues
towards User, Charges/Mesne Profit Damages/penalty for illegally
using and occupying the suit property along-with due interest besides
electricity, water and other charges to the Plaintiffs;
D. Award the cost of the suit including Ad-Valorem Court Fee, Counsel
Fee and other charges.
E. Pass such other relief(s) or order(s) as this Hon’ble Court may deem fit
and proper under the facts and circumstances of the case in favour of
the plaintiffs, and against the defendants, in the interest of justice.

PLAINTIFFS

THROUGH

NAVEEN RAHEJA
ENROL. NO. – D/2124/2005
OFFICE: 413, TOWER-2, MOUNT KAILASH APPTT.
EAST OF KAILASH, NEW DELHI- 110065
MOBILE NO.- 9810129691
E-MAIL- [email protected]

PLACE: NEW DELHI

DATE: ___/08/2022

VERIFICATION: Verified at New Delhi on this the __day of August

2022 that the contents of the paragraphs nos. 1 to 15 are true and
correct to my/our knowledge and the contents of the paragraphs nos. 16
to 20 are believed to be correct as per the legal advice received. Last
paragraph is the humble prayer to this Hon’ble Court.

PLAINTIFF(S)