Contractual lease-rental allocation upheld where payment records showed the other lessor's share was included and payable.

Separate contractual entitlements under a lease deed were recognised for the Corporate Debtor and the other lessor, and the lessee's payment break-up showed that the outstanding rent had been adjusted and remitted in line with those shares. The record also showed that an earlier order directing payment of the rent for the relevant period had attained finality, leaving no basis to dispute the allocation. On that material, the amount paid to the Corporate Debtor was treated as including the other party's contractual share, so release of that share was upheld and the challenge failed.

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Issues: Whether the Respondent No. 1 was entitled to receive its contractual share of lease rentals from the amount paid by the lessee to the Corporate Debtor, and whether the impugned direction to release that share was liable to be interfered with.

Analysis: The lease deed fixed separate monthly entitlements for the Corporate Debtor and the Respondent No. 1. The lessee had also remitted advance amounts separately to both. The record showed that the outstanding rent for the relevant period was paid by the lessee after adjusting the security deposit in terms of the lease deed, and the payment intimation with break-up reflected the respective shares. The earlier order directing payment of the rent claimed for that period had not been challenged and had attained finality. On the material placed, the amount paid to the Corporate Debtor included the Respondent No. 1's contractual share, and no basis was shown to deny release of that share.

Conclusion: The impugned direction to release the Respondent No. 1's fair share was upheld and the challenge by the Appellant failed.

Final Conclusion: The appeal was found to be without merit and the dismissal left the direction in favour of the Respondent No. 1 undisturbed.

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