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Jindal Dyechem Industries Pvt. Ltd. v. Pahwa International Pvt. Ltd.
Structured Summary of the Opinion (S.L. Bhayana, J.)
Factual and Procedural Background
The plaintiff filed a suit for eviction of the defendant from premises bearing No. C-42, Wazirpur Industrial Area, New Delhi, and for recovery of Rs. 15,00,000 as damages for illegal use and occupation and for future damages from the date of filing until the decree. The plaintiff also filed an application under Order XII Rule VI CPC for judgment on admission based on alleged admissions as to (a) landlord-tenant relationship, (b) rate of rent, and (c) termination of tenancy by notice.
The plaintiff's pleaded case was that the premises were let by oral agreement at a monthly rent of Rs. 2,11,000 (excluding water/electricity), on a month-to-month basis (15th to 14th of each English calendar month). The plaintiff says tenancy was terminated by a legal notice dated 09.10.2007 under Section 106 of the Transfer of Property Act (TP Act) and by another communication dated 24.10.2007, that thereafter the plaintiff did not accept rent, and the defendant failed to hand over possession.
The defendant denied service of the termination notice and contended that the lease ran for six years from 01.04.2004 at the same monthly rent and thus continued to subsist; the defendant also alleged the plaintiff deliberately refused to accept rent since November 2007.
The court heard an application (IA No. 5765/09) under Order XII Rule VI CPC and recorded evidence and submissions relating to service of notice and the existence of admitted facts relied upon for a decree on admission.
Legal Issues Presented
- Whether, on admitted facts (landlord-tenant relationship, rate of rent exceeding Rs. 3,500 per month, and termination by notice), the plaintiff is entitled to judgment under Order XII Rule VI CPC (i.e., judgment on admission).
- Whether the notice dated 09.10.2007 (and related communication dated 24.10.2007) was validly served on the defendant so as to constitute termination of tenancy for the purposes of the application.
Arguments of the Parties
Plaintiff's Arguments
- The landlord-tenant relationship, the rate of rent (Rs. 2,11,000 per month) and termination by notice are established facts supporting judgment on admission under Order XII Rule VI CPC.
- The plaintiff placed on record: copy of the notice dated 09.10.2007; original postal receipt for 09.10.2007; original AD (acknowledgment) card; copy of letter dated 24.10.2007 and original postal receipts for that letter — all addressed correctly to the defendant.
- Given the dispatch by registered post to the correct address and return of the AD card, the presumption under Section 27 of the General Clauses Act arises and the defendant's bare denial is not sufficient to rebut it.
Defendant's Arguments
- The defendant denied service of the termination notice; specifically challenged the AD card produced by the plaintiff as lacking the receiver's signature and disputed service of an earlier notice dated 27.07.2007 (no AD card produced by plaintiff for that notice).
- Invoked Section 27 of the General Clauses Act to emphasize that the presumption of service by registered post is rebuttable and contended that by denying receipt in pleadings and affidavit the defendant discharged the initial burden; the plaintiff must now prove valid service by leading evidence.
- Relied on authorities (Tele Tube Electronics Ltd. and Ram Murthi v. Bhola Nath) to support the proposition that the presumption can be rebutted and on the need for the plaintiff to prove actual service beyond mere reliance on postal documents.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Laxmikant Shrikanth HUF v. M.N. Dastoor, 71 (1978) DLT 564 : 1998 (44) DRJ 502 | Three admissions entitling plaintiff to decree under Order XII R.6 (relationship, termination, rate of rent over Rs.3,500). | Used to support the proposition that where specified admissions exist the plaintiff may obtain judgment on admission. |
| K. Kishore & Construction HUF v. Allahabad Bank, 71 (1978) DLT 581 : 1998 (44) DRJ 596 | Same principle as above regarding three admissions and entitlement to judgment under Order XII R.6. | Referenced alongside Laxmikant to establish the doctrinal basis for decrees on admission in eviction matters. |
| Uttam Singh Duggal v. Union of India, AIR 2000 SC 2740 | Object and scope of Order XII Rule 6 CPC — enabling speedy judgment on admitted claims. | Cited for the legislative intent and judicial interpretation that the Rule should not be narrowly construed and permits speedy judgment where clear admissions exist. |
| Delhi Jal Board v. Surendra P. Malik, 104 (2003) DLT 151 : 2003 (68) DRJ 284 (DB) | Application of Order XII R.6 in eviction contexts. | Relied on as precedent of this court dealing with similar issues. |
| Rajiv Sharma & Anr. v. Rajiv Gupta, AIR 2004 DEL 248 : 2004 (72) DRJ 540 | Application of Order XII R.6 in eviction suits; treatment of admissions/denials. | Referred to as another local precedent addressing the same rule and factual matrix. |
| Tele Tube Electronics Ltd. v. Delhi Sales Tax, 2002 (101) DLT 337 (DB) : 2003 (67) DRJ 68 (DB) | Authority on rebuttable presumption of service under Section 27 General Clauses Act. | Relied upon by the defendant to argue that the presumption of service can be rebutted; noted by the court as part of the defendant's submissions. |
| Ram Murthi v. Bhola Nath, 1982 (22) DLT 426 | Support for the principle that presumption of service is rebuttable. | Invoked by the defendant to challenge the sufficiency of postal documents alone. |
| Ms. Rama Ghai v. UP State Handloom Corporation, 91 (2001) DLT 386 : 2001 (59) DRJ 58 | Courts should scrutinise pleadings in totality and ignore evasive/unspecific denials when invoking Order XII R.6. | Adopted by the court to justify treating the defendant's denial of service as sham/bald and insufficient to displace the presumption arising from postal documents. |
| Rajiv Saluja v. Bhartia Industries Ltd. & Anr., AIR 2003 Del 142 : 2002 (64) DRJ 569 | Reaffirmation that mere denial of receipt is outweighed by postal receipts and postal authority certificates. | Used to support the view that documentary evidence of dispatch and receipt can outweigh a bare denial. |
| Green View Radio Service v. Laxmibai, AIR 1990 SC 2156 | Legal presumption that properly addressed communication sent by post is received; presumption of AD card authenticity unless rebutted. | Quoted for the principle that postal acknowledgment supports proof of service, and absence of sufficient rebuttal means presumption remains. |
| Rail India Technical & Economic Service Ltd. v. I.M. Puri, 2000 (52) DRJ 538 | Authority referenced on issues of service and evidentiary presumptions (contextual). | Mentioned as supporting case law on service presumption (court referenced it in its discussion). |
| M. Nar Singh Rao v. State of Andhra Pradesh, AIR 2001 SC 318 | Authority referenced in context of evidentiary presumptions regarding service. | Referred to as part of the jurisprudence supporting presumptions of service by post. |
| Harihar Banerji v. Ramshashi Roy, AIR 1918 PC 102 | Classic authority that registered post with produced receipt gives rise to strong presumption of service even if signed by someone other than addressee. | Quoted to strengthen the view that production of registered post acknowledgement raises a strong presumption of service. |
| Atma Ram Property Ltd. v. Pal Property Pvt. Ltd., 91 (2001) DLT 438 : 2002 (62) DRJ 623 | Demonstrates that production of postal receipts and acknowledgment addressed correctly suffices; bare denial is insufficient. | Applied to show that the facts in the present case (postal receipt and AD) demonstrate service and that bare denial is of no avail. |
| Shimla Development Authority v. Smt. Santosh Sharma, JT 1996 (11) SC 254 | Authority on the insufficiency of bare denial where documentary proof of service exists. | Referred to in support of the principle that documentary proof of dispatch/acknowledgement is strong evidence of service. |
| Madan & Co. v. Wazir Jaivir Chand, AIR 1989 SC 630 | Authority cited for similar evidentiary principles regarding postal service. | Referenced by the court as part of supportive case law. |
| Charanjit Lal Mehra v. Kamal Saroj Mahajan, 118 (2005) DLT 396 (SC) | One of the authorities relied upon by the plaintiff covering the instant issues. | Relied on by plaintiff and noted by the court as directly supportive of the application. |
| Surjit Sachdev v. Kazakhstan Investment Services Pvt. Ltd. & Ors., 66 (1997) DLT 54 (DB) | Authority cited by plaintiff in support of his case on admissions and service matters. | Listed by the court as part of plaintiff's supporting authorities. |
| Amar Chand Talwar v. Export Promotion Council, 1999 RLR 166 | Authority cited by plaintiff for similar propositions. | Noted by the court as relied upon by the plaintiff. |
| Deenar Builders v. Khoday Distilleries, 2000 RLR 50 : 2000 (52) DRJ 372 | Authority cited by plaintiff on the issues before the court. | Relied upon by plaintiff and recorded by the court as supportive precedent. |
| Interocean Shipping v. Lt. Col. Y.R. Puri, 1991 RLR (N) 138 | Authority cited by plaintiff. | Included among the authorities relied upon by the plaintiff and recorded in the opinion. |
Court's Reasoning and Analysis
The court proceeded in stages, applying statutory presumptions and the doctrine governing judgment on admission:
- Identification of admitted facts: The court recorded that the landlord-tenant relationship and the rent amount (above Rs. 3,500 per month) were undisputed. These two admissions, together with establishment of termination by notice, form the triad of admissions that can entitle a plaintiff to judgment under Order XII Rule VI CPC.
- Central contested factual issue: The only remaining factual dispute was whether the termination notice dated 09.10.2007 had been served on the defendant. The defendant denied service and challenged the authenticity or sufficiency of the postal acknowledgment (AD card).
- Application of statutory presumption (Section 27, General Clauses Act, 1897): The court noted that where a document is properly addressed, prepaid and posted by registered post, service is deemed to be effected unless the contrary is proved. The court emphasized that this is a rebuttable presumption but, unless successfully rebutted, it amounts to proof of service.
- Evaluation of evidentiary material: The plaintiff had produced the notice, original postal receipts (showing dispatch to the defendant's correct address), and the original AD card. The court found these documents to bear the correct address of the defendant and to indicate dispatch and return of acknowledgment.
- Assessment of the defendant's rebuttal: The defendant's denial was characterized by the court as a "bald and interested denial" and specifically ascribing to the AD card an alleged signature defect did not sufficiently rebut the statutory presumption. The court held that such an evasive or unspecific denial does not displace the onus.
- Reliance on authority: The court cited and applied multiple precedents (including Green View Radio Service, Harihar Banerji, Atma Ram, Rama Ghai, Rajiv Saluja and others) establishing that production of postal receipts and acknowledgments raises a strong presumption of service and that mere denial without cogent evidence will not rebut the presumption.
- Conclusion on entitlement to judgment on admission: Having found that (a) the relationship of landlord and tenant and the rate of rent were admitted, and (b) that the presumption of service under Section 27 was not successfully rebutted, the court concluded that the requirements of Order XII Rule VI CPC were satisfied and judgment on admission could be entered in favour of the plaintiff for recovery of possession.
- Approach to damages: The court did not determine damages at the stage of judgment on admission but ordered an inquiry under Order XX Rule 12 CPC to assess rate and quantum of damages for illegal use and occupation.
Holding and Implications
Holding: The court allowed IA No. 5765/09 (the plaintiff's application under Order XII Rule VI CPC) and decreed the suit insofar as recovery of the suit premises is concerned. A decree for possession of premises No. C-42, Wazirpur Industrial Area, New Delhi was directed to be passed in favour of the plaintiff and against the defendant.
Implications:
- Direct effect on the parties: The plaintiff obtains a decree for possession of the disputed premises. The defendant is ordered to be dispossessed pursuant to the decree of possession.
- Damages: The question of damages is postponed for detailed enquiry. The court ordered an inquiry under Order XX Rule 12 CPC to determine rate and quantum of damages; the matter was listed before the Joint Registrar on 19 January 2009 for that purpose.
- Precedential effect: The court applied existing authorities and statutory presumptions in reaching its decision; the opinion does not record that any new legal principle or binding precedent was created — it applies and relies upon established case law and statutory presumptions to resolve the application.
- Disposition of applications: The application under Order XII Rule VI CPC was allowed and the application(s) stand disposed of in the terms recorded.
Note: This summary is strictly based on the content of the provided opinion and does not add factual or legal material beyond the opinion's text.
S.L Bhayana, J.:— By this order, I propose to dispose of the plaintiff's application under Order XII Rule VI CPC for judgment on admission in respect of the suit property in view of the admission as to relationship of landlord and the tenant, rate of rent, and termination of tenancy by way of notice.
2. The plaintiff has filed the suit for eviction of the defendant from the suit property bearing number C-42, Wazirpur, Industrial Area, New Delhi and for recovery of rupees fifteen lakhs as damages for illegal use and occupation and future damages from the date of filing of suit till the date of decree.
3. Briefly stating the case set up by the applicant/plaintiff in the suit is that:
(i) By way of oral agreement suit premises were let out to the Non applicant/defendant at a monthly rent of rupees two lakhs and eleven thousand excluding water and electricity charges.
(ii) The tenancy in respect of suit property was month to month according to English calendar starting from 15th day of each English calendar month and was to expire on the 14th day of the subsequent English calendar month.
(iii) Vide legal notice dated 09/10/07 under section 106 TPA tenancy was terminated by the plaintiff and the defendant was called upon to hand over the peaceful and vacant possession of the suit property.
(iv) Another communication dated 24.10.07 was also sent to the defendant regarding the termination of the tenancy.
(v) After initial notice plaintiff does not accept any rent for use and occupation. Since the defendant failed to hand over the possession of the suit property, relief has been sought through instant suit.
4. The defendant resisted the instant suit by contending that the plaintiff has let out the suit premises for a period of six years commencing from 01.04.04 at a monthly rental of rupees 2,11,000/- and thus lease between the plaintiff and defendant is still subsisting and the plaintiff is deliberately refusing to accept rent since November 2007. The defendant has specifically disputed the fact of service of notice of termination of tenancy.
5. In a matter pertaining to ejectment of tenant in Delhi three admissions are sufficient to entitle the plaintiff to a decree on admission where:
(i) The relationship of tenant and landlord is admitted.
(ii) Termination of tenancy is admitted.
(iii) Rate of rent is admittedly more than Rs. 3,500/- per month, Defendants would be entitled to judgment under order 12 R.6 (see Laxmikant Shrikanth HUF v. M.N Dastoor, 71 (1978) DLT 564 : 1998 (44) DRJ 502 and K. Kishore and Construction HUF v. Allahabad Bank, 71 (1978) DLT 581 : 1998 (44) DRJ 596).
6. As regards the provision of Order XII Rule VI CPC is concerned, it is well settled that a decree can be passed either on admission of facts or on question of law. Dealing with objective and scope of Order XII Rule VT CPC, Supreme Court has observed in Uttam Singh Duggal v. UOI, AIR 2000 SC 2740 as under:
“As to the object of the Order XII Rule 6, we need not say anything more than what the Legislature itself has said when the said provision came to be amended. In the objects and reasons set out while amending the said rule, it is stated “where a claim is admitted, the court has jurisdiction to enter a judgment for the plaintiff and to pass a decree on admitted claim. The object of the Rule is to enable the party to obtain a speedy judgment at least to the extent of the relief to which according to the admission of the defendant, the plaintiff is entitled.” We should not unduly narrow down the meaning of this Rule, as the object is to enable a party to obtain speedy judgment. Where other party has made a plain admission entitling the former to succeed, it should apply and also wherever there is a clear admission of facts in the face of which, it is impossible for the party making such admission to succeed.”
7. This issue has also been dealt by this court in the case of Delhi Jal Board…Petitioner v. Surendra P. Malik…, 104 (2003) DLT 151 : 2003 (68) DRJ 284 (DB); and Rajiv Sharma & Anr.… v. Rajiv Gupta…, AIR 2004 DEL 248 : 2004 (72) DRJ 540.
8. Coming back now to the facts of this case there is no dispute as to the relationship of the landlord and the tenant between the parties, it is also not disputed fact that the rate of rent was more than Rs. 3500/- per month. The only fact, which is disputed by the defendant, is about the service of termination Notice.
9. The moot question which arises for consideration in this application is whether notice dated 09.10.2007 would amount to be served upon the defendant/non applicants or not?
10. Learned Counsel of the defendant has denied the service of notice of termination of tenancy, it is contended by the defendant that the AD card that has been produced by the plaintiff does not bear any signature of the receiver. Further with respect to the notice dated 27.07.2007 no AD card has been filed by the plaintiff. Ld. Counsel has further contended that in terms of section 27 of the General Clauses Act, 1897 the presumption of service by registered post is a rebuttable presumption. To support his contention he has relied upon the judgment of Tele Tube Electronics Ltd. v. Delhi Sales Tax, 2002 (101) DLT 337 (D.B) : 2003 (67) DRJ 68 (DB) and Ram Murthi v. Bhola Nath, 1982 (22) DLT 426 and further contended that the defendant has discharged the initial burden of proof by denying the receipt of the notice in its written statement, accompanied by an affidavit, the burden to prove the valid service and the receipt of notice now shifts on the plaintiff, which can only be discharged by leading evidence in this regard.
11. In support of proof of service of Notice of termination of tenancy plaintiff has placed on record the copy of notice dated 09.10.2007, original postal receipt in respect of the notice dated 09.10.07, original AD, Copy of the letter dated 24.10.07, original postal receipts in respect of the above letter. I have perused the record and found that all the documents placed on record are bearing correct address of the defendant.
12. In view of the record placed by the plaintiff and in light of the fact that the notice was dispatched to the defendant's correct address through registered post and the AD card was also received back from the defendant, the denial in respect of the said notice by the defendant has no value. The rebuttal in this case, does not go beyond a bald and interested denial of service of the notice by the defendant, which does not displace the onus to rebut the presumption of service. I am unable to accept the arguments advanced by the defendant before this court that by merely saying the AD card bears somebody else's signature, they have discharged the initial burden to rebut the presumption.
13. In my considered view all the requirement of Order XII Rule VI C.P.C are satisfied, as far as the factum of landlord and the tenant relationship; and the factum of amount of rent is above Rs. 3,500/- both is undisputedly admitted by the defendant and in view of the documents placed on record by the plaintiff, the denial of service of termination of notice is sham and false denial, it was observed by this court that such kind of bald denial should be ignored in such kind of circumstances. This was so observed in the case of Ms. Rama Ghai v. State Handlun Corporation, 91 (2001) DLT 386 : 2001 (59) DRJ 58 Para 16 and similar view is reiterated by this Court in the case of Rajiv Saluja.Plaintiff; v. Bhartia Industries Limited & Anrdefendants., AIR 2003 Del 142 : 2002 (64) DRJ 569, which reads as under:
“16. Though in the instant case the service of notice under Section 106 of the Act was not at all necessary because the tenancy had expired by efflux of time by virtue of Section 111-A of the T.P Act but to be on the safer side the plaintiff served notice under Section 106. Mere denial of receipt of such notice cannot come to the rescue of defendant No. 2. Denial is far outweighed by not only postal receipts proving the dispatch at all the addresses of the defendant but also through a certificate from the postal authorities as to the receipt of the notice by the defendants at the suit premises.
17. I have taken a view in Rama Ghai v. UP State Handloom Corporation, 2001 4 AD (Del.) 471 : 2001 (59) DRJ 58 that in order to invoke the provisions of Order 12 Rule 6 CPC the Court has to scrutinise the pleadings in their totality and ignore the evasive and unspecific denials either as to the relationship or as to the service of notice or as to the nature of tenancy.
18. If the landlord either under the legal advice or by way of abundant precaution sends notice for termination of tenancy under Section 106 of the T.P Act after the expiry of tenancy by way of efflux of time his intention is not to terminate the tenancy but to insist and impress upon the tenant to hand over the possession after the expiry of agreed period of tenancy.”
14. In any case, the documentary evidence assembled by the plaintiff is sufficient to raise a strong presumption of section 27 of General Clauses Act that notice had been properly served by the applicant. It would be appropriate to reproduce the language of S.27 General Clauses Act, 1897, as under:
“27.—Meaning of service by post.—Where any (Central Act) or Regulation made after the commencement of this Act authorizes of requires any document to be served by post, where the expression “serve” or either of the expressions “give” or “send” or any other expression in used, then, unless a different intention appears, the service shall be deemed to be effected by properly addressing pre-paying and posting by registered post, a letter containing the document, and unless the contrary is proved, to have been effected at the time at which the letter would be delivered in the ordinary course of post.”
15. It is apparent from the reading of the section that service shall be deemed to be effectuated by properly addressing, pre paying and posting by registered post, a letter containing the notice. This presumption is no doubt rebuttable but unless it is disproved, dispelled or rebutted, the court can treat the presumption as tantamounting to proof.
16. In Green View Radio Service v. Laxmibai, AIR 1990 SC 2156, the Supreme Court observed as under:
“There is a legal presumption that the communication sent by post properly addressed to the addressee is received by him in due course of business and that the acknowledgment was received back from the post office duly signed with the recipient's signature and that acknowledgment is on record. The notice was sent by the respondent-landlord's advocate and the acknowledgment was received at his office. The court further held that Amarjeet Singh, the proprietor of the premises was in the habit of changing his signature from time to time and had signed different documents in different styles. The appellant further did not lead sufficient evidence to rebut the presumption of service. It was admitted by Amarjeet Singh that either he himself or his brother or his employee would always be present in the suit premises. Although he came out with an alibi that he was not present in the premises on the date on which the postal acknowledgment is signed, he has not stated that nobody else was present in the shop on that day and hence nobody could have received the said notice on behalf of the appellant. The courts, therefore, held that the service of the notice on the appellant was proved. Since the rent was admittedly not paid within thirty days of the receipt of the said notice, according to the mandatory provisions of the Act, the appellant was liable to be evicted.”
17. Reference may also be made to Rail India Technical & Economic Service Ltd. v. I.M Puri, 2000 (52) DRJ 538, and M. Nar Singh Rao v. State of Andhra Pradesh, AIR 2001 SC 318.
18. It would be appropriate to appreciate locus classicus on the issue in Harihar Banerji v. Ramshashi Roy, AIR 1918 PC 102 wherein it was observed by Lord Atkinson:
“A letter sent under Registered post was held to be giving rise to a stronger presumption especially when a receipt for the letter is produced, even when signed on behalf of addressee by some person other than the addressee himself.”
19. Similarly, in Atma Ram Property Ltd. v. Pal Property Pvt. Ltd., 91 (2001) DLT 438 : 2002 (62) DRJ 623, this court has observed:
“13. Coming to the service of the notice, the plaintiff has placed on record the copy of the notice sent to the defendants under Section 106 of the Transfer of Property Act. The plaintiff has also placed on record the postal receipt in original by which notice was sent by registered post to the defendants. The plaintiff has also produced on record the original acknowledgement received back which is addressed to Pal Properties India Pvt. Ltd. Address is rightly mentioned as H-72, Connaught Circus, New Delhi. It bears stamp and is signed by some person acknowledging the receipt of the letter.
14. In view of these documents on record it cannot be said that the defendants did not receive the notice. Bare denial would not serve any purpose. [Ref.: Shimla Development Authority v. Smt. Santosh Sharma, JT 1996 (11) SC 254; Madan and Co., v. Wazir Jaivir Chand, AIR 1989 SC 630.”
20. To support this application learned counsel of the plaintiff has relied upon the following judgments which squarely covers the instant case:
(a) Charanjit Lal Mehra v. Kamal Saroj Mahajan, 118 (2005) DLT 396 (SC);
(b) Surjit Sachdev… v. Kazakhstan Investment Services Pvt. Ltd. & Ors.…, 66 (1997) DLT 54 (DB);
(c) Amar Chand Talwar v. Export Promotion Council, 1999 RLR 166;
(d) Deenar Builders v. Khoday Distilleries, 2000 RLR 50 : 2000 (52) DRJ 372;
(e) Interocean Shipping… v. Lt. Col. Y.R Puri…., 1991 RLR (N) 138.
21. In the net result, IA No. 5765/09, filed by the plaintiff is allowed. The suit of the plaintiff is decreed in so far as recovery of the suit premises is concerned. A decree of possession of the suit premises bearing No. C-42, Wazirpur, Industrial Area, New Delhi be passed in favour of the plaintiff and against the defendant.
22. As far as recovery of damages is concerned let an enquiry under Order XX Rule 12 CPC be held to determine the rate and quantum thereof.
23. List before Joint Registrar on 19th January, 2009 for holding an enquiry under Order XX Rule 12 CPC to determine the rate and quantum of damages.
24. The applications stands disposed of.
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