{"id":6136,"date":"2020-11-14T13:44:01","date_gmt":"2020-11-14T13:44:01","guid":{"rendered":"https:\/\/lexforti.com\/legal-news\/?p=6136"},"modified":"2021-01-17T05:12:53","modified_gmt":"2021-01-17T05:12:53","slug":"payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business","status":"publish","type":"post","link":"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/","title":{"rendered":"Payment of rental charges is a compulsion for occupancy despite non-working of business"},"content":{"rendered":"\n<p>Payment of rental charges is a compulsion for occupancy despite non-working of business written by Diksha Sharma student of Government Law College, Mumbai<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-6a223cf1a6dbb\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-6a223cf1a6dbb\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Ms_Arun_Kumar_Kamal_Kumar_vs_Ms_Selected_Marble_Home\" title=\"M\/s Arun Kumar Kamal Kumar vs M\/s Selected Marble Home\">M\/s Arun Kumar Kamal Kumar vs M\/s Selected Marble Home<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Facts\" title=\"Facts:\">Facts:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Issues\" title=\"Issues:\">Issues:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Legal_Provisions\" title=\"Legal Provisions:\">Legal Provisions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Appellants%E2%80%99_Contention\" title=\"Appellants\u2019 Contention:\">Appellants\u2019 Contention:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Respondents%E2%80%99_Contention\" title=\"Respondents\u2019 Contention:\">Respondents\u2019 Contention:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Observations_of_the_Court\" title=\"Observations of the Court:\">Observations of the Court:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lexforti.com\/legal-news\/payment-of-rental-charges-is-a-compulsion-for-occupancy-despite-non-working-of-business\/#Judgment\" title=\"Judgment:\">Judgment:<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ms_Arun_Kumar_Kamal_Kumar_vs_Ms_Selected_Marble_Home\"><\/span>M\/s Arun Kumar Kamal Kumar vs M\/s Selected Marble Home<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Facts\"><\/span>Facts:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The appellants owned a brand name called Nathu\u2019s Sweets and had entered into two separate license agreements, wherein it was decided that the appellants would run and operate the business in the respondents\u2019 premises and the other being payment of commission on sales to the respondents. The dispute arose when the business had come to a halt owing to an incomplete installation of a required electricity connection, which was 2.5 KV, by the respondents. Consequent to this, the operations of the business were discontinued from March 1991 to October 1995.<br>A suit was filed in the Delhi High Court under section Section 20 of the Arbitration Act, 1940 on grounds of non-payment of commission along with the failure of handing over of the vacant premises to the owner. The court-appointed an arbitrator to adjudicate upon the case, according to whom calculations relating to the commission were incorrect and deliberate, but the issue which came up was \u2018whether the respondents were entitled to any damages ?\u2019. The award was challenged by the appellants in the <a href=\"https:\/\/lexforti.com\/legal-news\/case-finder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Supreme Court<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issues\"><\/span>Issues:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whether respondents were entitled to rent and any damages arising out of the course of business?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Provisions\"><\/span>Legal Provisions:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\u2022 Section 20 of The <a href=\"https:\/\/indiankanoon.org\/doc\/121041548\/\" target=\"_blank\" rel=\"noreferrer noopener\">Arbitration Act, 1940<\/a><br>\u2022 Section 108 of The <a href=\"https:\/\/indiankanoon.org\/doc\/515323\/\" target=\"_blank\" rel=\"noreferrer noopener\">Transfer of Property Act,1882<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appellants%E2%80%99_Contention\"><\/span>Appellants\u2019 Contention:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The learned counsel submitted that there was no clause in the agreement mentioning any payment of damages on account of the occupation of the premises even when the business was not under any operation. The agreement was confined to payment of commission on gross sales. The erroneous calculations made inadvertently, if resolved, would have arrived at a lesser amount of compensation payable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Respondents%E2%80%99_Contention\"><\/span>Respondents\u2019 Contention:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The learned counsel for the respondent submitted that no mistake was made in the statement of accounts and learned Single Judge of the High Court did not err in concluding that the appellants are liable to pay the damages inclusive of the period when business was not running.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Observations_of_the_Court\"><\/span>Observations of the Court:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The court after considering the submission from both sides observed that the vacant premises had not been handed over to the respondents until the commencement of arbitral proceedings. In view of the judgment made by Single learned judge, if the respondents were supposedly the tenants then under Section 108 of The <a href=\"https:\/\/lexforti.com\/legal-news\/any-transfer-or-transaction-in-respect-of-an-evacuee-property-is-not-valid-unless-it-is-made-with-the-previous-approval-of-the-custodian\/\" target=\"_blank\" rel=\"noreferrer noopener\">Transfer of Property Act,1882<\/a>, they would have been liable for payment of rent, despite non-working of the business. Therefore, no error was made by the Single Judge and the arbitrator.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Judgment\"><\/span>Judgment:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The court stuck to the decision rendered by the Division Bench of High Court of reducing the interest rate from 16% per annum to 9% per annum payable from the date of the award till the date of the judgment which is to be duly completed by the appellants inclusive of interest accruing out of the same.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Payment of rental charges is a compulsion for occupancy despite non-working of business written by Diksha Sharma student of Government Law College, Mumbai M\/s Arun Kumar Kamal Kumar vs M\/s Selected Marble Home Facts: The appellants owned a brand name called Nathu\u2019s Sweets and had entered into two separate license agreements, wherein it was decided [&hellip;]<\/p>\n","protected":false},"author":167,"featured_media":6138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[58,106,26],"tags":[2618,2617],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - 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