Delhi HC rendered it’s decision while dispensing rejection order of the tenants application for ‘suspension of rent’ during the pandemic:-

In the present scenario as the escalating issue of the COVID-19 pandemic strikes our doors the relations between landlords and tenants turned out to be deteriorating. The waiver’s of monthly rents is being craved by the tenants as the economy is seemed to be going south and liquidity of the country being diluted in accordance with the restriction imposed on trade and business for the protection of inhabitants.

As the pickle of tenants and landlords seems to reverberate the Delhi HC decision whether tenants being entitle to claim waiver or suspension of rent or exemption from payment of rent.

The Delhi HC proffered it’s decision in Ramanand & Ors. vs. Dr. Girish Soni & Anr., RC Rev 447, 2017; where impact on contractual relations between landlords and tenants due to lockdown had been discussed. While the court referred the sections 32 & 56 of the Indian Contract Act,1872 and section 108(B) of the Transfer of Property Act, 1882, and entitled the tenants exemption from payment of rent or calling waiver of the same as a relaxation for the lockdown.

The attributes of the present case were that the tenants ran a Shoe Store in the Khan Market and the landlord is a Dentist. They had a lease functioning from 1st February,1975 on commercial aspects at a Rs.300 per month. The respondents in 2008 logged an eviction petition and was passed in 2017 in accordance with Section 14(1)(e), Delhi Rent Control Act,1958. The petition for eviction had been stayed and on 25 September,2017 on certain grounds and the case is pending since then for hearing.

As the lockdown striked the edge and due to the economic crisis the tenants approached the courts for claiming relief for the non payment or waiver of rent and the business had gone south.

The tenants claimed that the circumstances are Force majeure and beyond the control of the tenants and are entitled to claim the waiver of the rent or any partial relief in the monthly payment in relation with the order issued on September,2017.

The Court rejecting the tenants’ application ruled that said doctrine of Force majeure cannot be the basis of suspension of rent and impermissible in these facts, some relaxation or postponement in lieu of the lockdown shall be granted.

The tenants shall now pay the use and occupation charges for the month of March,2020 on or before 30th May,2020 and for the months of April and May,2020 by 25th June,2020 and from the month of June,2020 the payments shall be strictly be followed as per the interim order dated 25th September,2017. The further application was disposed of by the High Court.

By Rajat Verma of MMDU