VidhiSangh

Supreme Court of India · 19/04/2022

EVERGREEN LAND MARK PVT. LTD versus JOHN TINSON & COMPANY PVT. LTD. & ANR

[2022] 4 S.C.R. 879 · 2022 INSC 445

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Summary

A restaurant-bar lessee challenged an interim direction to secure all rent for March 2020–December 2021 despite its unresolved contractual force-majeure defence. The Court modified the deposit order to exclude the two periods of complete lockdown within that span, while requiring the balance. It did not decide whether rent was ultimately payable for the excluded periods. The force-majeure issue and all contentions remained for arbitration, to be concluded preferably within nine months subject to cooperation.

Issues

  1. Whether the interim rent deposit should include complete-closure periods before adjudication of the force-majeure defence.

Provisions considered

Held

Result

Appeal partly allowed. The rent-deposit direction for March 2020–December 2021 was modified to exclude 22 March–9 September 2020 and 19 April–28 June 2021, subject to final arbitration. The balance was to be secured in the directed fixed deposits. Arbitration was to conclude preferably within nine months, subject to cooperation. No order as to costs.

Judgment PDF: Supreme Court of India, [2022] 4 S.C.R. 879.