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Jagdish Kumar Arora vs. Dinesh Mittal

Regular First Appeal · 2026:DHC:8466Decided 29 Sept 2026New Delhi Bench
RFA 553/2025CNR: DLHC010379602025
Justice Neena Bansal Krishna

Background

The appellant, a teacher planning to run a coaching institute, negotiated to rent the respondent's basement in Ashok Vihar for Rs. 64,500-67,000/month, paid a Rs. 2,50,000 security deposit, was handed the keys, and carried out substantial fit-out/renovation work (spending several lakhs), but a formal registered lease deed was never executed, partly due to COVID-19 lockdown delays and disputes over terms. The landlord sued for possession (and separately for rent arrears) after the tenant stopped paying and sought to walk away from the arrangement; the tenant argued no concluded tenancy or possession had actually been created.

Decision Breakdown

The trial court decreed possession in the landlord's favour on admission under Order XII Rule 6 CPC, since the tenant's own pleadings admitted he had been given the keys, carried out fit-out work, and agreed (even if not formally executed) to pay rent. The High Court upheld this, relying on the Supreme Court's ruling in Anthony v. K.C. Ittoop & Sons that a lease can arise from conduct and delivery of possession even without a registered deed, and that a person who admittedly received possession and agreed to pay rent cannot resist a possession decree merely because the formal registration never happened. The appeal was dismissed, though the tenant's separate claims regarding rent liability and recoveries were left open for the pending companion suit.

Lesson Learnt

Occupying commercial premises, taking the keys, and carrying out renovation work can create tenant-like possession obligations even without ever signing a formal registered lease: verbal/WhatsApp-documented agreements plus conduct can be enough to lose a possession dispute.

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