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of <h1>Lease deed restricts rent increase to new lease grant post 90 years</h1> <h3>Delhi Development Authority Versus Durga Chand Kaushish</h3> The Supreme Court affirmed the Delhi High Court's decision that the lease deed did not permit rent enhancement within the 90-year period but only upon the ... - Issues Involved:1. Interpretation of lease deed regarding the enhancement of rent within the 90-year lease period.2. Applicability of Section 53(B)(2) of the Delhi Development Act.3. Requirement of notice under Section 80 C.P.C. upon the Union of India.Issue-wise Detailed Analysis:1. Interpretation of Lease Deed Regarding the Enhancement of Rent Within the 90-Year Lease Period:The core issue was whether the lease deed dated 17-9-31 allowed for the enhancement of rent within the 90-year lease period or only upon the grant of a fresh lease after the expiry of the initial 90 years. The plaintiff contended that the annual rent of Rs. 365/- could not be enhanced during the 90-year lease period. The defendants argued that the deed allowed for rent enhancement within this period.The judgment emphasized that the lease deed explicitly stated the term as 90 years at an annual rent of Rs. 365/-. The defendants admitted this term but contended that the enhancement clause applied within the 90 years. The court found that the lease deed's covenants, particularly covenants 9 and 10, indicated that rent enhancement was conditional upon the grant of a fresh lease after the initial 90 years. The court held that the initial lease term of 90 years could not co-exist with renewals within the same period, and thus, enhancement could only occur upon renewal after the 90 years.The court concluded that the words of demise in the lease deed for a 90-year period at Rs. 365/- per year were clear and unambiguous, and the proviso to covenant 9 could not override this. The court rejected the defendants' interpretation, which would lead to absurd results and conflict with the lease's operative part.2. Applicability of Section 53(B)(2) of the Delhi Development Act:The defendants argued that the suit was barred by Section 53(B)(2) of the Delhi Development Act. However, this issue was decided against the defendants by both the single judge and the Division Bench of the Delhi High Court. The Supreme Court did not address this issue in detail as it was not argued before them.3. Requirement of Notice Under Section 80 C.P.C. Upon the Union of India:The defendants also contended that the suit was barred due to the lack of notice under Section 80 C.P.C. upon the Union of India, a co-defendant. This issue was similarly decided against the defendants by the Delhi High Court at both stages, and it was not a matter for decision before the Supreme Court in this appeal.Conclusion:The Supreme Court affirmed the decision of the Division Bench of the Delhi High Court, holding that the lease deed did not allow for rent enhancement within the 90-year period. The enhancement could only occur upon the grant of a fresh lease after the initial 90 years. The appeal was dismissed with costs.
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