Insurance News: HMT to pay Rs. 33.8 mn damages to LIC: Reports

According to the estate officer’s January 10, 2010 order, HMT Ltd had vacated its rented office in Jeevan Tara building in May 2010

A New Delhi court has asked HMT Ltd to pay around Rs. 33.8 million damages to LIC (Life Insurance Corporation of India) for not vacating its rented premises, according to media reports.

The court upheld an estate officer’s order to HMT Ltd to vacate LIC’s office at Jeevan Tara building in Parliament Street, New Delhi as its lease agreement was not extended and also to pay Rs. 33.8 million, the media reports added.

According to the estate officer’s January 10, 2010 order, HMT Ltd had vacated its rented office in Jeevan Tara building in May 2010. But, HMT had challenged the order on the basis that the officer had not taken consideration the Public Premises Rules while fixing the damages. HMT said that the life insurance company was seeking huge increase in the rent.

The court refused the HMT’s submission. It added that both LIC and HMT are government organisations, so LIC could not have any malafide intention. The HMT had taken 4,495 sq feet and 198 sq.ft. (garage) in Jeevan Tara building, hardly half a kilometre from the Parliament, in 1960 at Rs. 40,887 per month (excluding electricity and water charges). HMT should have taken into account the rent in the area has increased with the passage of time, the court said.

The lease of the building was last extended in 1995 for three years. Thereafter, when the HMT did not vacate the premises, a notice of termination of tenancy was issued in 2001 and 2002 and damages were also claimed by the LIC, Jeevan Bharti Building at Connaught Place, the reports said.