Who will pay rent for lockdown period?

Ban on sale of Liquor? Full Salary to employees for lockdown period?

Friends, I have been very candid and clear in my previous email letter to you on the twin issue of ban on liquor sale by the government and paying of salaries to employees for lockdown period.

First, I told you legally MHA, government of India, has no power to ban the sale of liquor, this being the state subject and also forming the list of essential food items, as per the Food Safety Standard Act, 2006 and now you can see that sale of liquor was not only allowed but it is delivered to your home.

In my article on, How to avoid paying of wage for lockdown period , I very clearly told that there is no law under which government can compel to pay salaries for the lockdown period. Now, MHA was compelled to withdraw its advisory asking to pay full salary to your employees and that too on time, otherwise be ready for legal action.

Now, the question is what is going to happen to rental for the period of lockdown, when you were not able to operate from your rental premises?

Let’s assume the followings.
1)Unnatural Situation Clause, Doctrine of Frustration, not covered in rental agreement
2)Unnatural Situation Clause, Doctrine of Frustration, covered in rental agreement
3)No rent agreement or lease deed
4)Protection granted by MHA, GOI.
5)Possible Relief

In a notable judgement, the Delhi High Court has ruled that the doctrine of frustration under section 56 of Indian Contract Act is not applicable to lease agreement. Hence, there will be no respite from paying full rent for lock down period.

The ruling in the case of Ramanand Vs Dr Gireesh Soni, was based on SC precedents which held that Section 56 is applicable only to “executory contracts” and not to “executed contracts”.

A contract for lease whereunder the lessee obtains possession from lessor is an executed contract, noted the HC, from a Division Bench judgement of the Delhi HC in Hotel Leela Venture Ltd v. Airports Authority of India.

The order has come in the application which sought suspension of rent citing the COVID-19 lockdown.

Principle Under Section 32 of the Contract Act no applicable
Referring to SC decision in Energy Watchdog v. CERC and Ors, (2017) 14SCC 80, the HC observed that in case the contract itself contains and express or implied term relating to a force majeure condition, the same shall be governed by Section 32 of the ICA.

“The force majeure clause in the contract could also be a contingency under Section 32 which may allow the tenant to claim that the contract has become void and surrender the premises. However, if the tenant wishes to retain the premises and there is no clause giving any respite to the tenant, the rent or the monthly charges would be payable”, the Court Observed.

No rent agreement or lease deed
However, if there is no rent agreement, as in this case and hence the Court held that Section 32 was not applicable.

“There is no rent agreement or lease deed between the parties and hence Section 32 of the ICA has no applicability. The case is governed by the provisions of the Delhi Rent Control Act, 1958. Section 56 of the ICA does not apply to tenancies. The Tenants also do not urge that the tenancy is void under section 180 (B) (e) of the TPA.

Temporary non-use of property will not render the lease void
The court also held that temporary non-use of premises due to the lockdown which was announced due to the COVID outbreak cannot be construed as rendering the lease void under Section 108 (B) (e) of the Transfer of Property Act. The tenant cannot also avoid payment of rent in view of Section 108 (B)(I).

Mere non-use may not always entitle the tenant for suspension of rent, the Court said, referring to Raichurmatham Prabhakar and Ors. V. Rawatmal Dugar, (2004) 4 SCC 766.

The court also observed that the case was not covered by the protective orders passed by the Ministry of Home Affairs during lockdown, as they were intended for the benefit of migrants, students and other stranded persons occupying rented premises.

Possible Relief
Among them is Begum Noor Bano, the wife of Zulfiquar Ali Khan, who set the ball rolling in the courts when he challenged his brother, the Nawab’s oldest son, Murtaza Ali Khan, 47 years ago. And also Talat Fatima Hasan, the granddaughter of Raza Ali Khan, who took the battle further.

56


More updates


Insurance Claim Settlement


News You Can Use.


कोरोना में पैरेंट्स को राहत:सुप्रीम कोर्ट ने कहा- स्कूल चलाने का खर्च कम हुआ, इसलिए ऑनलाइन क्लासेस की फीस घटानी चाहिए


Big Day: Big News


रेमडेसिविर की कालाबाजारी में प्रख्यात न्यूरो सर्जन सहित 3 गिरफ्तार, इंजेक्शन की बड़ी खेप और 36 लाख रुपये बरामद


Are you ready?


Can winking and Blowing kisses land you in Jail ?


Setback for Britannia Industries as Delhi HC junks trademark infringement plea against ITC Limited


नोएडा, गाजियाबाद से दिल्ली में लग रहे जाम पर सुप्रीम कोर्ट हुआ सख्त, जारी किया नोटिस


UNHOLY HOLI, Will Holi land you in Jail ?


क्रिप्टोकरेंसी को सरकार ने किया स्वीकार! कंपनियों को देना होगा हर लेन-देन का हिसाब


Reservation more than 50 per cent is need of hour: Maharashtra


आईटीआर में खामी रह जाने पर इनकम टैक्स 7 तरह के नोटिस जारी करता है, जानिए इनका मतलब


Person Who Has Not Drawn The Cheque Cannot Be Prosecuted U/s 138 NI Act Even In Case Of Joint Liability: Supreme Court


Didda Copyright Row: दिद्दा कॉपीराइट विवाद पर मुश्किल में कंगना, कोर्ट के आदेश पर एक और FIR दर्ज


फैसला: सुप्रीम कोर्ट ने किराएदार पर लगाया एक लाख का जुर्माना, अद्भुत मामला दिया करार


चेतावनी! 15000 रुपए का कटेगा चालान और 2 साल की होगी जेल, अगर गाड़ी में किया यह काम


Oyo lost arbitral battle


पत्नी कोई गुलाम या संपत्ति नहीं, पति के साथ रहने के लिए मजबूर नहीं किया जा सकता- सुप्रीम कोर्ट


किसी को शादी के लिए झूठा वादा नहीं करना चाहिए, चाहे पुरुष हो या महिला: सुप्रीम कोर्ट


How to jump the corporate ladder by selling Gossip at 15 Crore ?


सुप्रीम कोर्ट की बड़ी टिप्पणी: जीवनसाथी की प्रतिष्ठा को ठेस पहुंचाना मानसिक क्रूरता के समान


सुप्रीम कोर्ट की बड़ी टिप्पणी: जीवनसाथी की प्रतिष्ठा को ठेस पहुंचाना मानसिक क्रूरता के समान


पिता की संपत्ति में मिलता है बराबरी का हिस्‍सा, हर बहू-बेटी को पता होने चाहिए अपने ये अधिकार


उत्तराधिकार पर सुप्रीम कोर्ट का बड़ा फैसला, महिला का मायका पक्ष भी परिवार का हिस्सा


Act beyond Act: CSR


स्किन से स्किन टच के बिना सेक्सुअल असॉल्ट का मामला नहीं... हाई कोर्ट के इस फैसले के खिलाफ महिला आयोग सुप्रीम कोर्ट पहुंची


Decriminalisation of the Limited Liability Partnership Act


Budget 2021: Key changes in GST to help small and medium- sized businesses


1 to 5 crore loan without colletral made easy: Budget 2021


Is GST is becoming a headache for you.


Moment of rare pride


बिहार पुलिस के सर्कुल ने बिहार प्रेस बिल की याद दिला दी है


Italy court orders Facebook to pay $5 million in damages for copying app


Foreigner To Deposit Cash Amount For Bail


How legal is COVID-19 vaccine ?


WhatsApp's private chat leaked on Google, anyone can read your personal talks


Do you know 18 must Laws for every Indian?


Why should I trust you or your business?


Do you need clearance from your RWA to employ your maid?


क्या तलाकशुदा पत्नी घरेलू हिंसा अधिनियम के तहत निवास के अधिकार का दावा कर सकती है?


SC grants Woman's Right to Residence Under the Domestic Violence Act


Corporate War: Cookie King who fought with TATA and Ambani


HINDU MARRIAGE ACT : DIVORCE GRANTED TO HUSBAND ON THE GROUND OF MENTAL CRUELTY CAUSED BY WIFE


Facebook love or chat can land you in Jail


Financer can take way Car in case of payment default


18000 Crore Company, 8000 Crore personal worth, wife & sons living in street


Do you love your wife and children?


When the second marriage of a married woman / man becomes an offense under section 494


Is Rhea Chakraborty guilty?


Daughters have equal right in ancestral property


Is second wife entitled for share in Property?


How to save your hard-earned wealth from legal hassles?


What will happen to property of Hindu after his death?


Are you safe at home?


Can sex with your own wife land you in jail ?


Can you land in jail for sharing Obscene Message online in private?


Legally speaking who discovered America?


47 years old legal dispute finally decided


Are you a victim of Covid-19 Goonda Raj? Part-2


Are you a victim of Covid-19 Goonda Raj ?


Can RWA stop your maid from coming to your home?


Can you escape Contractual Obligation under Covid-19?


Coronavirus: Is vaccine found for India Inc?


Is Wife Entitled to Maintenance Even If She Runs A Business & Earns Income?


Legal consequences of being whatsapp group admin

Click for more updates

© 4C Supremelaw Int.