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Civil Property & InheritanceSupreme Court of India

Rajesh Chugh v. Batuk Prasad Jaitly

Civil Appeal · 2018 INSC 416Decided 25 Apr 2018
Civil Appeal No. 4419 of 2018
Justice Kurian Joseph · Justice Mohan M. Shantanagoudar · Justice Navin Sinha

Background

The appellants were tenants running a small, roughly 33-square-foot book shop at Nai Sarak, New Delhi, who had lost before the Rent Controller and were appealing the reversal of that order. While the appeal was pending, the tenants and the landlord reached a mutually agreed settlement.

Decision Breakdown

Under the signed Memorandum of Settlement dated 25.04.2018, the tenants agreed to vacate and hand over physical possession of the premises by 31.08.2018, not create any third-party rights in the property in the meantime, and the landlord agreed to pay the tenants Rs. 20 lakh upon handover of possession. The Supreme Court took the settlement on record, disposed of the appeal in its terms, directed both parties to strictly comply (on pain of contempt proceedings for non-compliance), and commended the parties and counsel for reaching an amicable resolution.

Lesson Learnt

Tenancy disputes, even small ones, can be resolved through a negotiated settlement that gives both sides certainty, a fixed moving-out date and a lump-sum payment, rather than prolonging litigation, and once such a settlement is recorded by the court, breaching it can attract contempt proceedings.

Rajesh Chugh v. Batuk Prasad Jaitly – Legal Case Shots | LegalAware