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Tenant Claims 10 Lakh Mortgage and Fake Rent Deal, but Court Demands Proof — Delhi HC

24 Oct 2026

Tenant Claims 10 Lakh Mortgage and Fake Rent Deal, but Court Demands Proof — Delhi HC
Source (official court record): Siddhanth Mendiratta vs Madhu Chawla & Anr, Delhi High Court

Court: Delhi High Court

Appeal dismissed — ruling against Siddhanth Mendiratta (Appellant)

In Short

A tenant fought a property recovery and rent suit filed by his landlords, claiming he had paid a massive cash mortgage of 10 lakh rupees and that his rent was only 2,900 rupees per month. The trial court and the Delhi High Court both rejected his defense because he failed to prove the cash payment and could not invalidate the signed rent agreement. The court upheld the eviction, rent arrears, and damages ordered against him.

The Parties

Party A: Siddhanth Mendiratta

Party B: Madhu Chawla and Sanjay Chawla

Advocates & Judges

For Party A: Learned Advocate Mr. Sahil Kakkar

For Party B: None listed in record

Judge(s): Hon'ble Justice Neena Bansal Krishna

What the Case Was About

This case started as a civil property dispute over a commercial shop space in Tilak Nagar, New Delhi. The landlords, Madhu Chawla and Sanjay Chawla, rented out a shop measuring nearly 238 square feet to Siddhanth Mendiratta. Initially, the rent was 25,500 rupees per month back in 2014. Later, a fresh rent agreement was made in 2018 raising the monthly rent to 29,000 rupees.

When the tenancy period expired and the landlords wanted the shop back, they sent a legal notice terminating the arrangement. The tenant refused to leave and stopped paying rent properly. Instead, he claimed he had given a huge cash amount of 10 lakh rupees as a mortgage, which dropped his monthly rent to a tiny sum of 2,900 rupees. The landlords filed a formal recovery suit for possession, unpaid rent, and damages, which the lower court decided in their favor. The tenant then brought the matter before the Delhi High Court through an appeal.

Judgment Date

28 September 2026

The Outcome

The Delhi High Court dismissed the tenant's appeal, confirming the lower court judgment that ordered him to hand over vacant possession of the shop, clear rent arrears, and pay damages for unauthorized occupation.

What the Court Looked At

"The Defendant was thus, held liable to pay the rent... and continued to be so at the given rate."

What This Means For You

Entering into oral understandings, cash adjustments, or handshake deals regarding commercial property can destroy your legal standing if a dispute arises. In this case, the tenant relied heavily on verbal claims that he handed over 10 lakh rupees in cash as a mortgage to lower his rent, but he had zero paper trail or valid receipts to back it up. When property disputes reach court, written agreements and clear banking records always outweigh verbal claims and unverified accusations. If you find yourself tangled in a stressful commercial property or landlord-tenant dispute and need help understanding your options without the confusion of complex legal terminology, Setback Solutions is here to help you navigate your next steps plainly and clearly.

You Still Have Options

Dealing with an unexpected eviction notice, a disputed property claim, or an unfavorable court ruling can feel overwhelming when you do not know where to turn. You do not have to face these confusing civil battles alone, as you can still explore second opinions, review your case paperwork, or seek non-judicial guidance to map out a better path forward. Reach out to Setback Solutions today to get plain-language help understanding your choices and coordinating your next steps. Setback Solutions is not a law firm, does not provide legal advice, and never promises specific outcomes, but we are ready to offer calm, practical guidance when you need it most.

⚠️ This is an AI-generated article. AI can make mistakes. Please double-check the facts by reading the real order/source linked above rather than relying completely on this article.

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