REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.7544-7546 OF 2008

BHAGIRATH AGARWAL APPELLANT(S)                                 VERSUS

M/S SIMPLEX CONCRETE & PILES (I) PVT. LTD.  & ORS. RESPONDENT(S)

WITH C.A. NOS. 7552-7554/2008

J U D G M E N T KURIAN, J. C.A. NOS. 7544-7546/2008

1. The  appellant  is  aggrieved  since  he  has  been denied interest for the arrears of rent vide order dated 22.05.2006 passed by the City Civil Court at Calcutta in the Ejectment Suit No.717 of 1992.  To the extent relevant, the order reads as follows:-

“That  the  petitions  filed  by  the defendant under Section 17(2) and 17(2A) (b) of the West Bengal Premises Tenancy Act are allowed on contest without any cost.   The  petition  filed  by  the

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defendant  for  abatement  of  rent  is dismissed on contest.  The defendant is a defaulter  in  payment  of  rent  since November, 1990 @ Rs.19,000/- per month. Thus the total defaulting period is 186 months  i.e.  since  November,  1990  to April, 2006.  Thus the total amount of rent  payable  by  the  defendant  is Rs.19,000/- x 186 = Rs.35,34,000/-.  From the submission of the ld. Lawyer it is available that the defendant already paid Rs.5 lakhs as per order of the Hon'ble Court.  So  the  due  amount  is Rs.35,34,000/-  -  Rs.6,00,000/-  = Rs.29,34,000/-.   The  defendant  is directed  to  pay  the  above  said  arrear rents  by  ten  monthly  installments  @ RS.3,00,000/- per installment along with current rent.  The last installment will be Rs.2,34,000/-.  Each installment is to be paid within the last working day of each month.  The first installment is to be paid by 30th June, 2006.”

2. Since  the  appellant  was  denied  interest,  the matter was pursued before the High Court.  However, the High Court declined to interfere with the order passed by the City Civil Court and hence this appeal. 3. It is not in dispute that the respondent/tenant was  permitted  to  pay  the  arrears  of  rent  in installments.  No doubt, there was a defence taken by

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the respondent that the default in payment of  the arrears of rent was on account of the conduct of the appellant/landlord in denying amenities.  Yet  the City Civil Court has directed the respondent/tenant to pay the arrears of rent in installments and there was  no  appeal  at  the  instance  of  the respondent/tenant. 4. The view adopted by the City Civil Court seems to be that there is a discretion vest in the Court and in exercise of that discretion, taking note of the conduct of the landlord, the City Civil Court thought it fit to deny interest and permitted payment of only the defaulted arrears. 5. We  are  afraid,  the  view  cannot  be  sustained. Section 17(2A) of the West Bengal Premises Tenancy Act, 1956 reads as follows:-

“Provided that where payment is permitted by installments, such sum shall include all  amounts  calculated  at  the  rate  of rent for the period of default including the  period  subsequent  thereto  upto  the end  of  the  month  previous  to  that  in which the order under this sub-section is to  be  made  with  interest  on  any  such amount calculated at the rate specified in  sub-section  (1)  from  the  date  when such amount was payable upto the date of

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such order.”

6. The statutory provision is very clear.  Whenever payment of rent including arrears is permitted to be paid in installments, the Statute contemplates that the beneficiary shall be granted interest.  This is irrespective of the justification or explanation, if any, available for the non-payment.  No doubt, under Section  34  in  case  the  landlord  has  refused  to provide the amenities and in case the tenant spent money for providing the amenities, the said amount, subject to the conditions therein, can be set off. Though, there is such a case set up by the tenant, yet no set off has been granted by the Trial Court, and  the  tenant  was  permitted  to  pay  the  dues  in installments.  Once the arrears are permitted to be paid  in  installments,  there  is  no  discretion available with the Court to deny interest.  It is not a discretionary relief; it is the statutory right and entitlement of the landlord to get interest. 7. Therefore, this appeal is allowed.  It is made clear  that  the  appellant  shall  be  entitled  to interest under the West Bengal Premises Tenancy Act, 1956.  No costs.

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C.A. NOS. 7552-7554/2008 8. In  view  of  the  order  passed  in  C.A.  Nos. 7544-7546/2008, these appeals are disposed of.  No costs.

.......................J.               [KURIAN JOSEPH]  

.......................J.               [R. BANUMATHI]  

NEW DELHI; MARCH 23, 2017.

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