The Delhi High Court on Thursday held that Tenants’ plea is for extension of the doctrine of suspension of rent to cases which are covered by lockdown due to COVID-19 is not maintainable and tenancies are not governed by Section 56 of Indian Contract Act, 1872.
The tenant filed the revision petition challenging the eviction decree passed by the Rent Controller. Following the outbreak of COVID-19, an application for suspension of rent has now been moved, during the lockdown period. The stand of the Tenants is that due to the lockdown, there has been complete disruption of all business activities, including the business of the Tenants. It was pleaded that the circumstances are force majeure and beyond the control of the Tenants. Thus, it is claimed that the Tenants are entitled to waiver of the monthly payment directed vide order dated 25th September, 2017, or at least some partial relief in terms of suspension, postponement or part-payment of the said amount.
Acting upon the plea, the Single judge bench of Justice Pratibha M. Singh, observed that the relationship between a Landlord and Tenant, a Lessor and Lessee and a Licensor and Licensee can be in multifarious forms. These relations are primarily governed either by contracts or by law. In the realm of contracts, the respective rights and obligations of the parties would be determined by the terms and conditions of the contract itself. Where there is a contract, whether there is a force majeure clause or any other condition that could permit waiver or suspension of the agreed monthly payment, would be governed by the contractual terms. If, however, there is no contract at all or if there is no specific force majeure clause, then the issues would have to be determined on the basis of the applicable law.
In circumstances such as the outbreak of a pandemic, like the current COVID-19 outbreak, the grounds on which the tenants/lessees or other similarly situated parties could seek waiver or non-payment of the monthly amounts, under contracts which have a force majeure clause would be governed by Section 32 of the Indian Contract Act, 1872.
The High Court placed reliance on the Judgement of Supreme Court passed in Raja Dhruv Dev Chand v. Raja Harmohinder Singh, AIR 1968 SC 1024, wherein it was held that a lease is a completed conveyance though it involves monthly payment and hence, Section 56 cannot be invoked to claim waiver, suspension or exemption from payment of rent.
The High Court held that the Tenants’ application for suspension of rent is thus liable to be rejected inasmuch as while invoking the doctrine of suspension of rent on the basis of a force majeure event, it is clear from the submissions made that the Tenants do not intend to surrender the tenanted premises. While holding that suspension of rent is not permissible in these facts, some postponement or relaxation in the schedule of payment can be granted owing to the lockdown.
Thus, while granting relaxation the High Court directed the tenant to deposit the rent for month of March, 2020 on or before 30th May,2020 and the rent of April, 2020 on or before 25th June, 2020. The High Court disposed the revision petition.
-India Legal Bureau