Skip to main content

Landlord Entitled To Get Interest On Rent Arrears Paid In Instalments

The Supreme Court, in Bhagirath Agarwal vs M/s Simplex Concrete & Piles (I) Pvt. Ltd, has held that once the court permits the tenant to pay arrears of rent in installments, there is no discretion available with the court to deny interest of the same to the landlord.

A bench comprising Justice Kurian Joseph and Justice R Banumathi set aside the order of the trial court that denied interest for the arrears of rent payable to the landlord and allowed the tenants to pay the arrears in installments.

Referring to Section 17(2A) of the West Bengal Premises Tenancy Act, 1956, the bench said 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, the bench added. The court also observed that though under Section 34, the said amount can be set off, in case the landlord has refused to provide amenities, but in the instant case, 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, the bench added.

Article referred: http://www.livelaw.in/landlord-entitled-get-interest-court-allows-tenant-pay-rent-arrears-installments-sc/

Comments

Most viewed this month

Deposit Of Minimum 20% Fine/Compensation U/s 148 NI Act Mandatory

In OP(Crl.).No.348 OF 2019, T.K.SAJEEVAN vs FRANCIS T.CHACKO, the appeal was filed against the order of the lower court to deposit 25% of the fine before filling of appeal. The appellant argued that the deposit introduced through the Section 148 of the NI Act after amendment was directory in nature as it used the term 'may' while mentioning the issue of deposit. The Kerala High Court however disagreeing held that in view of the object of the Legislature while incorporating Section 148 into N.I. Act, the word 'may' will have to be read as 'shall'. The imposition of payment contemplated under Section 148 N.I. Act cannot be restricted to some prosecutions and evaded in other prosecutions. Since the amount directed to be deposited being compensation, undoubtedly, it is liable to be ordered to be deposited irrespective of the nature of the prosecution. Therefore, the word 'may' can only be taken to have the colour and meaning of 'shall' and there

NCLT - Mere admission of receipt of money does not qualify as a financial debt

Cause Title : Meghna Devang Juthani Vs Ambe Securities Private Limited, National Company Law Tribunal, Mumbai, CP (IB) No. 974/MB-VI/2020 Date of Judgment/Order : 18.12.2023 Corum : Hon’ble Shri K. R. Saji Kumar, Member (Judicial) Hon’ble Shri Sanjiv Dutt, Member (Technical) Citied:  Carnoustie Management India Pvt. Ltd. Vs. CBS International Projects Private Limited, NCLT Swiss Ribbons Pvt. Ltd. & Anr vs. Union of India & Ors. (2019) Sanjay Kewalramani vs Sunil Parmanand Kewalramani & Ors. (2018) Pawan Kumar vs. Utsav Securities Pvt Ltd 2021 Background Application was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 alleging loan of Rs, 1.70 cr is due. The Applicate identified herself as the widow and heir of the lender but could not produce any documents proving financial contract between her Late husband and the CD but claimed that the CD has accepted that money was received from her husband. The applicant subsequently filed rejoinder claiming the debt t

Vanishing promoters and languishing shareholders

Over Rs 60,000 crore of shareholders’ wealth is stuck in 1,450 companies suspended by the stock exchanges. More importantly, near 100 per cent pledging of promoter holding appears to be common in many of these companies. This, almost rules out any chance of the companies bouncing back. The suspension is for non-compliance of the listing norms. Vanishing Companies - Definition As per the definition stipulated by SEBI, any listed company, which raised moneythrough initial public offer and, thereafter, stopped operations, did not file returnseither with the RoC or SEBI and did not exist on the registered premises wastermed as vanishing.There are provisions under Companies Act under which companies are termedvanishing companies on satisfying certain conditions. it is provided a companywould be deemed to be a vanishing company, if it satisfies all the conditions given below : a) Failed to file returns with Registrar of Companies (ROC) for a period of two years; b) Failed to fil