In Shalimar Paints Ltd & Anr. vs. M/S Phelps and Company Pvt Ltd, the Delhi High Court upheld an eviction order against a tenant occupying a prime commercial space in Connaught Place. Justice Amit Sharma dismissed the revision petition, ruling that the respondent-landlord had established a genuine bona fide requirement to expand its art business wing, “The Biv”. The Court reaffirmed that a landlord is the best judge of their own requirements and the tenant cannot dictate how the landlord should utilize available space or adjust their business operations. The Court found no merit in the tenant’s claims regarding alternate accommodation or forged documents, concluding that the Rent Controller’s decision to refuse “leave to defend” was legally sound.
- Factual Background
The petitioners (tenants) challenged an order dated November 6, 2025, passed by the Rent Controller, which had dismissed their application for leave to defend and passed an eviction order for property No. 9-A, First Floor, Inner Circle, Connaught Place. The respondent (landlord), a private company, sought the premises under Section 14(1)(e) of the Delhi Rent Control (DRC) Act for the expansion of its art business, which involves curating and exhibiting paintings and artifacts.
- Landlord’s Bona Fide Requirement
The landlord argued that its current operations on the third floor and terrace were unsuitable due to lack of adequate space for displays and meetings, and because that area was only accessible via the “middle circle,” which has lower commercial visibility and footfall. They intended to remove a common wall between an existing director’s office and the tenanted premises to create a larger gallery and storage area.
- Tenant’s Grounds for Defense
The petitioners raised several triable issues in their leave to defend application:
- Alternate Accommodation: They alleged the landlord concealed approximately 7,500 sq. ft. of available commercial space on the upper floors.
- Mala Fide Intentions: They claimed the landlord’s actual goal was to evict them and re-let the property at a higher rent.
- Forged Documents: The tenants alleged that certain challans/invoices submitted by the landlord to prove its art business activities were fabricated, pointing to inconsistencies in serial numbers and dates.
- Legal Maintainability: They argued that a company cannot seek eviction under Section 14(1)(e) and must instead invoke Section 22 of the DRC Act.
- Court’s Findings and Analysis
- Landlord as the Best Judge: The Court emphasized the settled legal principle that a tenant cannot dictate terms to a landlord regarding the suitability of alternate premises. The landlord’s preference for the first floor due to its strategic entrance from the inner circle was deemed a valid business decision.
- Suitability of Upper Floors: The Court noted that the third floor was already utilized for co-working operations and suffered from diminished foot traffic and visibility, making it an unsuitable alternative for a high-end art gallery.
- Genuineness of Challans: Upon perusal, the Court found that the continuity of item numbers across different dates supported the validity of the invoices. It held that minor date inconsistencies did not create a triable issue regarding the landlord’s bona fide intent.
- Legal Status of Companies: The Court dismissed the challenge regarding Section 22 of the DRC Act, noting that it is well-settled that a body corporate is not barred from invoking Section 14(1)(e).
- Limited Scope of Revision: Under Section 25B(8), the High Court’s role is not to act as an appellate body but to ensure the Rent Controller’s order is “according to law”. Finding no illegality or jurisdictional error, the Court declined to interfere.
- Final Conclusion
The revision petition was dismissed. The Court directed the petitioners to vacate and hand over peaceful possession of the premises forthwith, noting that the statutory six-month grace period under the DRC Act had already lapsed.
2026 DHC 5384
Shalimar Paints Ltd & Anr. vs. M/S Phelps and Company Pvt Ltd,(D.O.J. 06.07.2026)



