M/S Vasanth Colour Laboratories Pvt ... vs Smt Divya
- Citation2016 SCC OnLine Kar 248
Ratio decidendi
The rule this decision rests on
Where a compromise petition is entered into under Order 23 Rule 3 CPC in execution of a decree for ejectment, and the party agrees to vacate and deliver possession by a specified date, and obtains the benefit of any extension of time, that party is thereafter bound by the compromise and cannot contend that a fresh tenancy has been created, nor can it resist execution of the decree on that ground. Where a judgment debtor has provided an undertaking in affidavit form to vacate premises by a specified date, and has obtained the benefit of extension of time pursuant to that undertaking, the judgment debtor cannot withdraw that undertaking after availing of such benefit, and is bound to execute the undertaking. Where a judgment debtor files a memo withdrawing an application for extension of time and expressly indicates knowledge of a pending execution petition, and later refuses to receive the cause notice by courier service which the Executing Court has directed to be served through multiple modes including Courier, the Executing Court is entitled to hold that service of the cause notice has been sufficiently effected, particularly where the judgment debtor has been evading and avoiding service. A compromise petition entered into by parties in a suit for ejectment, where the party bringing the ejectment suit has agreed to further terms by compromise, does not amount to creation of a fresh lease but only to settlement of the parties' rights and obligations under the original lease or tenancy, and the test is the intention of the parties to such compromise.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Judgment debtor in Execution No.1094/2015 is
seeking for quashing of the order dated 15.10.2015 -
Annexure-F, whereunder the Executing Court has ordered
for issuance of delivery warrant.
2. I have heard the arguments of Sriyuths S Shaker
Shetty, learned Advocate appearing for writ petitioner -
judgment debtor and H.S.Dwarakanath, learned Advocate
appearing for respondent - decree holder.
3. Parties are referred to as per their rank before the
Executing Court.
:3 :
4. Decree holder filed the execution petition in
question i.e., Execution Case No.1094/2015 for the relief of
issuance of delivery warrant in respect of the property
bearing No.35-A, situated at Kengal Hanumanthaiah Road,
Bengaluru, morefully described in the schedule to the
Execution Petition contending interalia that as per the
compromise decree, judgment debtor had not vacated the
property and undertaking given has been violated and hence,
in order to enjoy the fruits of the compromise decree,
execution case as noticed herein above, came to be laid by
the decree holder before the City Civil Court, Bengaluru
(CCH-9).
5. The Executing Court by order dated 26.05.2015
issued cause notice to the judgment debtor. Subsequently
by order dated 24.08.2015 cause notice was ordered to be
issued to the judgment debtor through special Bailiff. On
04.09.2015 Executing Court permitted the decree holder to
take notice to judgment debtor through Registered Post :4 :
Acknowledgment Due and by Courier service. Thereafter, by
order dated 09.10.2015 held notice of service sufficient and
after hearing the learned Advocate appearing for decree
holder posted the matter for orders to 15.10.2015 and on
15.10.2015 ordered for issuance of delivery warrant. On the
same day, learned Advocate appearing for judgment debtor
filed an application under Section 47 of CPC for which
opportunity was extended to the decree holder to file
objections and the Executing Court reiterated the issuance of
delivery warrant as per order already passed.
6. Thereafterwards, matter has been preponed by
Executing Court and after receiving the application filed by
the Objector under Order 21 Rule 27 CPC, adjourned the
matter for pronouncing orders, after hearing the arguments
of advocates. On the next date i.e., on 31.10.2015, an
application under Order 21 Rule 97 CPC was filed by the
Objector and matter was adjourned from time to time. In the
meanwhile, the judgment debtor has filed the present :5 :
petition calling in question the impugned order dated
15.10.2015 - Annexure-F whereunder Executing Court has
issued delivery warrant.
7. It is the contention of Sri Shaker Shetty, learned
Advocate appearing for the judgment debtor that order
passed by this Court in C.P.No.60/2011 dated 12.11.2011-
Annexure-E would create a new tenancy. He would also
contend that earlier notice of termination issued by the
decree holder terminating the tenancy is wiped out on
account of new tenancy created and thereby a fresh lease
had been created. Therefore, execution proceedings is bad in
law. He would also submit when an application under
Section 47 CPC is filed before Executing Court, a duty is cast
on the Executing Court to examine the said application and
consider all questions raised therein and without
adjudicating the said application, delivery warrant could not
have been issued and Executing Court would have no
jurisdiction to issue delivery warrant in such circumstances. :6 :
7.1) He would also elaborate his submission by
contending that a new lease came to be created under the
doctrine of Novatio since earlier contract had come to an end
i.e., on 30.04.2015 and after expiry of two years from
01.05.2011, petitioner having started to pay enhanced rent of
5% over and above ` 1,50,000/- per month and till the said
new lease created after 01.05.2011 and continued till
30.04.2015 is terminated by issuance of fresh notice, the
decree for ejectment obtained would not be executable. He
would further submit that affidavit of undertaking submitted
by the petitioner that he would deliver vacant possession on
30.04.2015 stood waived in C.P.No.60/2011 since the time
was extended in C.P.No.60/2011 till 30.06.2015 and thereby
there is alteration.
7.2) He would also contend that cause notice issued
by the Executing Court and dispatched by Registry through
Registered Post Acknowledgment Due was not returned but
purported notice dispatched through Courier has been :7 :
returned with endorsement 'refused' and such declaration
cannot be made by the Court and only if notice is dispatched
through post with correct address, proper stamp and if same
is not returned within 30 days, then only presumption can
be drawn under proviso to Rule 5 of Order 9 CPC, as
otherwise, not.
In support of his submissions, he would rely upon the
following judgments:
(1) (2014)5 SCC 660 VASU P SHETTY vs HOTEL VANDANA PALACE AND OTHERS.
(2) (2014)3 SCC 678 VINOD KUMAR vs STATE OF KERALA
(3) AIR 2002 SC 2370 SUSHIL KUMAR SABHARWAL vs GURPREET SINGH AND OTHERS
(4) AIR 1959 SC 620
TRIVENIBAI AND ANOTHER vs SMT.LILABAI
(5) AIR 1979 SC 1745 V DHANAPAL CHETTIAR vs YESODAI AMMAL
(6) AIR 2004 CALCUTTA 267 M/S.SARASWAT TRADING AGENCY vs UNION OF INDIA :8 :
(7) AIR 2002 SC 251 N.S.S.NARAYANA SARMA AND OTHERS vs M/S.GOLDSTONE EXPORTS (P) LTD AND OTHERS
(8) (2005)7 SCC 653 DEVASAHAYAM (DEAD) BY L.RS. vs P.SAVITHRAMMA AND OTHERS
(9) AIR 1967 SC 155 GOPALAKRISHNA PILLAI AND OTHERS vs MEENAKSHI AYAL AND OTHERS
(10) AIR 1981 SC 1829 AIR INDIA vs NARGESH MEERZA AND OTHERS
(11) AIR 1989 SC 1510 MODERN HOTEL, GUDUR,REP. BY M.N.NARAYANAN vs K.RADHAKRISHNAIAH AND OTHERS
(12) (2007)6 SCC 401 M.VENKATARAMANA HEBBAR (DEAD) BY L.RS. vs M.RAJAGOPAL HEBBAR AND OTHERS
(13) AIR 1994 ANDHRA PRADESH 197 PARUCHURU NARASIMHA RAO vs NUNE PANDU RANGA RAO AND ANOTHER
(14) AIR 1982 BOMBAY 532 KALYANDAS MANILAL SHAH vs S.M.KANKARIA AND ANOTHER
(15) AIR 1988 ALLAHABAD 225 UNION OF INDIA vs S.B.SINGH
(16) AIR 1978 SC 22 SMT.NAI BAHU vs LALA RAMNARAYAN AND OTHERS :9 :
(17) AIR 1977 SC 1201 SUNDER DASS vs RAM PARKASH
(18) (1976)1 KAR.L.J. 35 PADMAVATHI BAI vs PARVATHIAMMA
(19) (1994)3 SCC 375 THARUMAL AND ANOTHER vs MASJID HAJUM PHAROSAN VA MADRASSA TALIMUL ISLAM, MIRZA IZSMAIL ROAD, JAIPUR
(20) JT 1993(2) S.C. 341 CHIRANJILAL SHRILAL GOENKA (DECEASED) THROUGH L.RS. vs JASJIT SINGH & OTHERS
8. Per contra, Sri H.S.Dwarakanath, learned
Advocate appearing for respondent - decree holder would
support the impugned order and contends that order dated
15.10.2015 has got spent itself and as such, writ petition
does not survive for consideration.
8.1) He would further elaborate his submission by
contending that when co-ordinate Bench of this Court has
passed the order in C.P.No.60/2011 on 15.06.2015 -
Annexure-D, correctness or otherwise of the said order
cannot be gone into since said order came to be passed at the
instance of the judgment debtor, either to challenge the said : 10 :
order or to contend that said order is not required to be
implemented by either of the parties particularly, when the
judgment debtor having had the benefit flowing from such
order.
8.2) On the issue of service of cause notice, he would
submit judgment debtor was fully aware about the pendency
of execution petition since the judgment debtor himself had
filed a memo dated 15.06.2015 in C.P.No.60/2011 seeking
permission of this Court to withdraw I.A.No.1/2015 (filed by
judgment debtor for extension of time) and indicating in the
said memo about execution petition No.1094/2015. Said
memo dated 15.06.2015 - Annexure-R2 will establish that
judgment debtor had knowledge of execution petition
No.1094/2015. He would contend that said memo is duly
signed by the authorised signatory of judgment debtor -
company and it has been never objected to. As such, he
would contend that judgment debtor cannot be heard to
contend he had no knowledge of execution petition pending : 11 :
or on account of non delivery of cause notice, its right has
been prejudiced.
8.3) He would also elaborate his submission by
contending that question of waiver does not arise since
decree holder - landlord has not accepted about creation of
new tenancy under the compromise petition. It is also
contended that notice of termination issued at the first
instance had got converted itself into a decree and as such,
waiver on the part of decree holder of his notice of
termination of tenancy would not arise at all. He would also
submit that this Court exercising jurisdiction under Article
227 of the Constitution of India should not grant any relief in
matters where orders came to be passed on the basis of
undertaking affidavit furnished agreeing thereunder to vacate
the suit schedule premises and when there is no error of
jurisdiction committed by Executing Court, present writ
petition is liable to be dismissed.
: 12 :
In support of his submission, he has relied upon the
following judgments:
(1) (2008)10 SCC 802 CHAND KHAN vs VAHID KHAN AND OTHERS
(2) (2015)5 SCC 423 RADHEY SHYAM AND ANOTHER vs CHHABI NATH AND OTHERS
(3) 1982 SCR (3) 201 SMT.KALLOO AND OTHERS vs DHAKADEVI AND OTHERS
(4) 1968 SCR (2) 559 KONCHADA RAMAMURTHY SUBUDHI & ANOTHER vs GOPINATH NAIK
(5) 1978 SCR (1) 723 NAI BAHU vs RAMNARAYAN & OTHERS
(6) LAWS (DLH)-1984-5-34 SARDARI LAL vs RAMRAKHA
(7) AIR 1999 SC 2607 DELTA INTERNATIONAL LIMITED vs SHYAM SUNDAR GANERIWALLA & ANOTHER
(8) AIR 2015 SC 3558 THE BOARD OF TRUSTEES OF THE PORT OF MUMBAI vs NIKHIL N. GUPTA & OTHERS : 13 :
9. Sri Shaker Shetty, learned Advocate appearing for
petitioner - judgment debtor has contended that undertaking
given has stood wiped out on account of extension of time
granted by this Court in C.P.No.60/2011 and fresh
undertaking had to be given by the judgment debtor which
was not furnished and as such, all orders passed by
Executing Court subsequently is a nullity. He would hasten
to add that Executing Court may be directed to hold an
enquiry on the application filed by judgment debtor under
Section 47 of CPC within a time frame for which the
judgment debtor would fully co-operate with the Executing
Court. On these grounds, he prays for allowing the writ
petition and moulding the relief accordingly.
10. Having heard the learned Advocates appearing for
parties and on perusal of original records secured from the
Executing Court, this Court is of the considered view that
following points would arise for consideration:
: 14 : (1) Whether order dated 15.10.2015 -
Annexure-F suffers from any jurisdictional error calling for interference?
(2) What order?
BACKGROUND OF THE CASE:
11. Decree holder is the owner of the suit schedule
property and same was taken on lease by the judgment
debtor. On expiry of lease period, decree holder filed a suit
O.S.NO.836/1981 against the judgment debtor for ejectment
from suit schedule property. Judgment debtor also filed a
suit in O.S.No.3396/1996 seeking specific performance of
the contract, contending interalia that under the lease deed
there is a specific clause for extension to be given for another
14 years after the expiry of stipulated period and same was
not extended. Judgment debtor also filed another suit
O.S.No.62/2006 seeking for extension of the period of lease
of the suit schedule property.
: 15 :
12. Since above referred three suits were pending in
different Courts of City Civil Court, Bengaluru, judgment
debtor filed a Civil Petition No.60/2011 under Section 24
CPC for clubbing/connecting/consolidating all the suits to be
tried in one Court. While examining said prayer for
clubbing/consolidating the suits, a compromise came to be
entered into between the parties, which was placed on record
and all the suits were ordered to be placed before City Civil
Court, CCH-9, Bengaluru and directed the said Court to
receive the compromise petition and pass the decree
accordingly. In that view of the matter, trial Court
adjudicating O.S.No.836/1981 heard the Advocates, recorded
presence of the parties and accepted compromise petition
and pursuant to the same, decree has been drawn in
O.S.No.836/1981 in terms of the compromise. On account
of judgment debtor not vacating suit schedule property as
agreed to in the compromise petition, decree holder filed
Execution Petition No.1094/2015 and after issuing cause : 16 :
notice to judgment debtor and holding service sufficient, by
impugned order dated 15.10.2015 has ordered for issuance
of delivery warrant. Same is questioned in the present writ
petition.
RE: POINT NO.(1):
13. When said matter i.e., C.P.No.60/2011 was
pending before this Court, a compromise petition in
Misc.Civil No.8517/2007 under Order 23 Rule 3 read with
Section 89 and 151 CPC came to be filed whereunder parties
reported of having settled their dispute by compromise and
hence, this Court directed that all the three suits to be called
on 19.04.2011 in City Civil Court, Bengaluru in Court Hall
No.9 for receiving said compromise petition which had been
entered into between the parties and directed the trial Court
to dispose of all the three suits in terms of said compromise
petition and accordingly disposed of C.P.No.60/2011 by
order dated 12.04.2011 - Annexure-E. It was also recorded
in the said order that judgment debtor should vacate and : 17 :
hand over vacant possession of the suit property to the
decree holder on or before 30.04.2015. The direction issued
by this Court in C.P.No.60/2011 read as under:
"5. The City Civil Court (CCH-9) is directed to dispose of all three suits in terms of the said compromise petition, granting time to the petitioner herein, namely, M/s.Vasantha Color Laboratories Limited to vacate and handover the vacant possession of suit property in all the three suits to the first respondent, Smt.Divya Devi on or before 30.04.2015."
(emphasis supplied)
It was also made clear by this Court that further extension of
time should not be sought for by the judgment debtor.
14. Pursuant to said order passed in C.P.No.60/2011,
compromise petition came to be filed by the parties under
Order 23 Rule 3 CPC read with Section 151 CPC was taken
on record and directed judgment debtor to pay rent of
`1,50,000/- per month with single default clause
commencing from 01.05.2011 and subject to 5% : 18 :
enhancement once in two years on the last paid rent and also
directed the judgment debtor to vacate and deliver vacant
possession of the suit schedule property to the decree holder
on or before 30.04.2015 without seeking for further
extension of time and without forcing the landlord/decree
holder to file execution petition to secure vacant possession
of the suit schedule property as had been agreed to by
judgment debtor under the compromise petition.
Accordingly, decree also came to be drawn in
O.S.No.836/1981 in terms of compromise. Undisputedly, all
the parties to the compromise petition have acted upon the
compromise petition.
15. However, before expiry of the period agreed by the
judgment debtor to vacate the premises i.e., 30.04.2015, an
interlocutory application - I.A.1/2015 came to be filed in
C.P.No.60/2011 seeking for extension of time by three years
beyond 30.04.2015. Said application was supported by the
affidavit of the Managing Director of the judgment debtor. : 19 :
However, a memo came to be filed by the learned Advocate
appearing for the petitioner i.e., judgment debtor in
C.P.No.60/2011 seeking permission to withdraw I.A.1/2015,
since decree holder had already filed an execution petition to
execute the decree passed in O.S.No.836/1981 in terms of
compromise. Said memo was accepted partially by
dismissing the application - I.A.1/2015 as withdrawn and
expressly rejecting the prayer sought for by the judgment
debtor to agitate all the grounds before the Executing Court
by reiterating its order dated 12.04.2011, by order dated
15.06.2015 - Annexure-D. It has been specifically observed
in said order as under:
"5. Therefore, this Court while accepting the memo and dismissing the application in I.A.1/2015 refuse to reserve any kind of liberty to either petitioner or to respondents and would say that the order dated 12.04.2011 in every sense is final order. The order passed by the trial Court pursuant to order dated 12.04.2011 is the final order which cannot be subjected to disturbance or variance by this Court. As stated supra, the extension till 30.06.2015 is only with an intention to provide one more opportunity to the parties at the request of : 20 :
counsel for petitioner and merely because such extension is allowed for one month, will not give any edge to petitioner to make use of the same to demonstrate that there is dilution to the earlier order.
With this clarification, memo is accepted and application in I.A.1/2015 is dismissed."
16. Perusal of the orders passed in C.P.No.60/2011
on 12.04.2011 and 15.06.2015 would clearly indicate that in
paragraph 6 of the order dated 12.04.2011 passed in
C.P.No.60/2011 it was clearly indicated by this Court that
there would be no scope for any opposition by the judgment
debtor for decree holder taking possession of the suit
schedule property. Order dated 15.06.2015 would indicate
while accepting the memo and rejecting the application -
I.A.1/2015, extension was granted to judgment debtor till
30.06.2015 so as to facilitate the parties come to a common
platform to seek extension and it was explicitly made clear
thereunder that such extension shall not be construed as
diluting its earlier order dated 12.04.2011. : 21 :
17. At this juncture itself, it would be appropriate to
note the contention raised by Mr.Shaker Shetty, learned
Advocate appearing for petitioner regarding non-issuance of
cause notice in Execution Case No.1094/2015 has resulted
in proceedings being vitiated. Said contention requires to be
examined with utmost circumspection for reasons more than
one. Firstly, when I.A.1/2015 was filed in C.P.NO.60/2011
seeking for extension of time, said application came to be
withdrawn by filing a memo indicating thereunder that
landlord - decree holder - respondent had filed an execution
petition and as such, to urge all contentions in pending
execution petition, judgment debtor wanted to withdraw
I.A.1/2015. Hence, said memo was filed. Perusal of said
memo dated 15.06.2015 - Annexure-R2 would clearly
establish that judgment debtor had full knowledge of
pendency of Execution Petition No.1094/2015. It is apt to
note at this juncture itself that memo dated 15.06.2015 -
Annexure-R2 was duly signed by the authorised signatory of : 22 :
the judgment debtor and at no point of time, till date,
contents of it has been disputed. Judgment debtor has stated
in the said memo to the following effect:
"Hon'ble Court was first pleased to issue notice on the application for extension of time given to surrender vacant possession of premises. First respondent has already filed Execution Petition No.1094/2015 in which cause notice is not yet served (since the decree is more than 2 years old). First respondent xxx 29.04.2015."
(emphasis supplied)
In view of the above fact, the irresistible conclusion which
has to be drawn is, that judgment debtor was fully conscious
of the execution petition having been filed by the decree
holder and this was well within the knowledge of judgment
debtor when memo for withdrawal of I.A.1/2015 came to be
filed on 15.06.2015. Hence, judgment debtor cannot be
heard to contend that he was unaware of execution petition
1094/2015 pending. Secondly, when cause notice of
execution was sent by Courier , judgment debtor has refused
to receive the same. Sub-rule (3) of Rule 9 of Order 5 CPC
provides for delivering or transmitting summons by : 23 :
Registered Post Acknowledgment Due or by Speed Post or by
such Courier services and Rule 9A of Order 5 CPC enables
the Court to permit the plaintiff to effect service of summons
on such defendant by Courier in addition to service of
summons provided under Rule 9 of Order 5 CPC. In this
background, when the order sheet of Executing Court is
perused, it would indicate that Executing Court on
04.09.2015 while ordering issuance of cause notice to
judgment debtor by Registered Post Acknowledgment Due
has also permitted notice to be taken through 'Blue Dart
Courier' and only on 09.10.2015 when advocate for decree
holder produced a copy of the track details of notice sent
through Blue Dart Couriers obtained from the website of
"Blue Dart" which indicated that judgment debtor has
refused to receive cause notice, has held service of notice as
sufficient on being satisfied that judgment debtor had been
evading and avoiding service of cause notice. In that view of
the matter, contention raised in this regard stands rejected
for the reasons stated supra.
: 24 :
18. Yet another contention which has been raised by
Mr.Shaker Shetty, learned Advocate appearing for petitioner
is that tenancy created earlier had resulted in termination by
the decree holder by issuance of notice and thereafter
compromise had been entered into and same resulted in
fresh tenancy being created or doctrine of Novatio would be
applicable. Said contention requires to be rejected out
rightly. The contention regarding determination of lease not
being in accordance with the provisions of Transfer of
Property Act, 1882 on the premise that under the
compromise entered into between the parties, fresh lease is
created and as such, yet again, there should be a
determination of lease on account of fresh tenancy having
been created is also liable to be rejected, inasmuch as, there
was no creation of fresh tenancy and as could be seen from
the orders passed in C.P.No.60/2011 on 12.04.2011 and
15.06.2015 - Annexures-E and D respectively, it can be
safely concluded that by virtue of a compromise petition filed : 25 :
under Order 23 Rule 3 CPC read with Section 89 and Section
151 CPC which was received on the file of this Court and
was ordered to be placed in the pending suit
O.S.NO.836/1981 for drawing up of the decree in terms of
said compromise petition did not amount to creation of fresh
lease. It is not in dispute that pursuant to such direction
issued, decree came to be drawn in O.S.No.836/1981 and as
such, to enjoy its fruits, decree holder has filed the execution
petition in question.
19. Under identical circumstances, Hon'ble Apex
Court in the case of KONCHADA RAMAMURTHY SUBUDHI
AND ANOTHER vs GOPINATH NAIK reported in AIR 1968
SC 919, has held the intention of the parties in a
compromise petition is a decisive test which will have to be
adopted to ascertain as to whether parties intended to revive
the tenancy or create new tenancy under compromise
petition. It has been further held that in spite of the fact that
word 'rent' being used in the compromise petition would not : 26 :
be a ground to contend that it amounts to a fresh lease
having been created. Hon'ble Apex Court therein was
examining as to whether the compromise deed constitute
creation of a lease or licence and held that when the decree
holder has brought a suit for ejectment of the judgment
debtor and a compromise being entered into in that suit, is
important and it would be difficult to impute to such decree
holder that he had intention to create a fresh tenancy while
the fact that he brought the suit for ejectment itself shows
that his intention was to eject the judgment debtor after
having terminated the tenancy. Hence, contention raised by
learned Advocate appearing for petitioner - judgment debtor
in this regard stands rejected.
20. In the light of aforestated discussion, this Court is
of the considered view that contention raised by Mr.Shaker
Shetty, learned Advocate appearing for petitioner relating to
Executing Court ought to have examined the application filed
by the judgment debtor under Section 47 CPC by recording : 27 :
evidence and giving a finding on such evidence is without
merit and deserves to be rejected. The issue regarding
'creation of fresh tenancy' by virtue of compromise petition
having been entered into between the parties not amounting
to said creation, directing the parties to lead evidence or
examining such a frivolous application, would only be an
exercise in futility and particularly in the facts obtained in
the present case.
21. As could be seen from the records on hand, the
judgment debtor pursuant to the decree passed in
O.S.No.836/1981 and the order passed in C.P.No.60/2011
has filed an affidavit of undertaking whereunder he has
undertaken at paragraph 5 to the following effect:
"5. I further undertake to voluntarily vacating the schedule property on or before 30.04.2015 without forcing the plaintiff to initiate any Execution against the first defendant
- lessee."
Thus, judgment debtor having entered into a compromise
under Order 23 Rule 3 CPC agreeing thereunder to quit, : 28 :
vacate and hand over vacant possession to the decree holder
and pursuant to same, having filed an undertaking in the
form of affidavit and sought extension in C.P.No.60/2011
and obtained the benefit of such extension granted by this
Court, cannot be now heard to contend that these factual
aspects are required to be ignored or it would become
inconsequential on the premise that fresh tenancy has been
created. Said contention is purely an after-thought and has
been raised with sole intention of dragging on the
proceedings.
22. In fact, the Hon'ble Apex Court in SOM DUTT
(DEAD) BY L.RS vs GOVIND RAM reported in (2000)9 SCC
345 somewhat under similar circumstances, held that even if
a new tenancy is created under the compromise, still parties
are bound by such compromise and further held though a
person is not a party to the compromise, even in such
circumstances, where his name is found in the compromise
petition and such person has taken benefit flowing from the : 29 :
terms of the compromise, cannot be heard to contend there
is creation of new tenancy. It has been held by the Hon'ble
Apex Court to the following effect:
"4. We do not agree with the reason given by the High Court in reversing the decision of the executing court. It is not in dispute that the premises in question were in the occupation of Bishandas, the father of Govind Ram (respondent). By virtue of the compromise which was entered into in 1981 before the appellate court, the son of the tenant who was already in possession was allowed to continue for a period of 10 years. Even if there be a creation of tenancy, the compromise between the parties including Govind Ram was that Govind Ram would vacate the premises on 31-12-1990. It is on that basis that the compromise was arrived at and the order passed by the appellate court. Apart from anything else, Govind Ram is clearly estopped from filing any application objecting to the execution of the decree. On this ground alone, Govind Ram has to be non- suited."
23. A person who has obtained benefit of a
compromise petition and has enjoyed the benefit flowing from
such compromise, cannot be heard to contend that the
intention of the parties to such compromise was something
else or it was intended to create a new contract, particularly
based on such compromise when undertaking has been : 30 :
given. The Hon'ble Apex Court in the case of THE BOARD
OF TRUSTEES OF THE PORT OF MUMBAI vs NIKHIL N
GUPTA (AIR 2015 SC 3558) has held that a party may be
permitted to withdraw the undertaking provided it is within
reasonable time and before availing any benefit pursuant to
the said undertaking. It is held as under:
"In the given facts and circumstances of the case, Court may permit a party to withdraw an undertaking provided it is within reasonable time and before the party has availed the benefit of the order pursuant to said undertaking. Based on the undertaking, the respondent obtained the benefit of extension of time for vacating and handing over vacant possession; the respondents are duty bound to vacate the premises voluntarily. In this case, application to withdraw the undertaking was filed only in May, 2014 after the respondents have availed the benefit of extension of time."
24. Keeping the principles laid down by the Hon'ble
Apex Court noticed herein above in mind, when the facts on
hand are examined, the contents of the compromise petition
- Annexure-R3 would clearly indicate that judgment debtor
has agreed to quit, vacate and deliver actual vacant physical
possession of the schedule property to the decree holder free : 31 :
from all encumbrances and the tenancy claims on or before
30.04.2015 without claiming any further extension of time.
Thus, judgment debtor has clearly undertaken that he would
not claim any fresh tenancy and pursuant to said
compromise entered into, he has filed the affidavit of
undertaking to vacate and has now attempted to wriggle out
of such undertaking, that too, without withdrawing the
undertaking. Hence, these facts would clearly indicate the
intention of the judgment debtor is to drag on the
proceedings and hang on to the suit schedule property, with
an attitude 'come what may'.
25. For these myriad reasons indicated herein above,
this Court is of the considered view that impugned order
does not suffer from any infirmity whatsoever either in law or
on facts calling for interference. Hence, point No.(1) is
answered in the negative i.e., against the petitioner and in
favour of respondent.
: 32 :
RE: POINT NO.(2)
25. As noticed herein above, petitioner has adopted
dilatory tactics to postpone the handing over vacant
possession of the suit schedule property to decree holder
despite giving an undertaking. The normal rule is costs
should follow the cause. Petitioner is a private Limited
Company carrying on business in the suit schedule property
from long number of years and respondent - decree holder
having filed a suit for ejectment way back in the year 1981
and hoping to secure possession of suit schedule property at
the earliest, has entered into compromise with the writ
petitioner - judgment debtor on 23.04.2011, whereunder the
respondent-decree holder has agreed to grant time to the
petitioner - judgment debtor till 30.04.2015. Despite such
undertaking being given, judgment debtor has not vacated
the suit schedule property and has ventured to drag on the
proceedings by filing frivolous applications and postponing
delivery of possession of suit schedule property to respondent
- decree holder. As such, this Court is of the considered view : 33 :
that writ petitioner would be liable to pay exemplary costs to
the respondent - decree holder.
Hence, I proceed to pass the following:
ORDER
(1) Writ Petition is hereby dismissed with costs.
(2) Order dated 15.10.2015 passed in Execution
Case No.1094/2015 by 27th Addl.City Civil Judge,
Bengaluru - Annexure-F stands affirmed.
(3) Writ petitioner to pay respondent cost of
` 10,000/- within two weeks from today, failing
which, the respondent - decree holder would be at
liberty to recover said amount from judgment
debtor in the pending execution proceedings i.e.,
Execution Case No.1094/2015.
Ordered accordingly.
Sd/-
JUDGE
*sp
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