Supreme Court Disposes of Long-Standing Rent Dispute as Parties Reach Amicable Settlement.
09 May 2025
Civil Appeals >> Civil & Consumer Law | Rent >> Property & Real Estate
A protracted legal battle concerning the user and occupation charges of a commercial property in South Extension Market, Part-I, New Delhi, has concluded following an amicable settlement between the tenant and landlord. The Supreme Court of India, which was hearing appeals challenging Delhi High Court orders regarding the fixation of these charges, disposed of the appeals and the original litigation based on a settlement deed dated April 23, 2025.
The dispute centered around premises bearing No. G-18-A, South Extension Market, Part-I, New Delhi. The appeals were filed by the appellant (tenant) against orders from the Delhi High Court, including one from October 11, 2023, that fixed the user and occupation charges, and another from October 20, 2023, which dismissed the tenant's application for modification.
During the pendency of the appeals, the Supreme Court had issued several directions regarding the deposit of interim occupational charges. Ultimately, a mutual agreement was reached between the parties, leading to the signing of a comprehensive settlement deed.
Key Terms of the Settlement:
- Vacation of Premises: The tenant has voluntarily agreed to vacate the ground floor shop and hand over peaceful physical possession, along with the keys, to the landlord. During the Supreme Court hearing, the keys to the demised premises were handed over to the landlord's counsel.
- Rent Revision and Exclusion from Rent Control Act: The parties acknowledged that the rent, initially fixed at ?2,50,000 per month by the Supreme Court from January 1, 2025, was mutually revised to ?1,00,000 per month effective March 1, 2025. This revised rent officially excludes the shop from the purview of the Delhi Rent Control Act, 1958, under Section 3(c) thereof. The tenant confirmed depositing the March 2025 rent directly with the Supreme Court registry.
- Waiver of Arrears: As part of the settlement, the landlord has agreed not to claim any arrears of rent, mesne profits, or user occupation charges whatsoever (past, present, or future) from the tenant, subject to the handover of possession. The landlord also confirmed that they have no objection to the amount already deposited with the Supreme Court being released in their favor.
- Withdrawal of Litigation: The tenant has undertaken to file appropriate applications to withdraw the pending R.C. Rev. No. 123/2022 before the Delhi High Court and the current Special Leave Petitions (SLP(C) Nos. 24789-24790/2023) before the Supreme Court. The parties also agreed to cooperate in withdrawing all other pending litigation related to the shop.
- Binding Agreement: Both parties affirmed that the settlement was reached voluntarily, without any coercion, and they are bound by its terms and conditions.
In light of this comprehensive settlement, the Supreme Court disposed of both the present appeals and the original litigation (R.C. Rev. No. 123 of 2022) that was pending before the Delhi High Court. The settlement deed has been made a part of the Supreme Court's order, ensuring its enforceability and bringing a definitive end to the long-standing dispute.