IMPORTANT POINT
One cannot draw advantage of his own fault.

JUDGMENT

R.M. Lodha, J. —

Leave granted.

2. The short question for consideration in this appeal, by special leave, is whether the Single Judge of the Madras High Court was justified in directing the 2nd appellant to pay interest @ 12% per annum on the arrears of rent from September 9, 1998 to the date of decree dated March 24, 2008.

3. Brief facts leading to the present controversy are these. The respondent—S. Kamalaveni Sundaram (hereinafter referred to as ‘the landlady’) let out ground floor of her property situate at MRC Nagar, South Beach Avenue, Chennai to the 2nd appellant (hereinafter referred to as ‘the tenant’) in the month of February, 1990 on a monthly rent of Rs. 5600/- payable according to the English calendar month. The tenancy was for non-residential purposes viz., for running the banking business. The landlady filed the suit for fixation of fair rent against the tenant in 1996. The Small Causes Court, Chennai vide its order dated March 27, 1998 fixed the fair rent at Rs. 32,356/- per month with effect from October 28, 1996. In September 1998, the tenant vacated the leased premises. However, the tenant was in arrears of rent at the time of vacation of premises. The landlady sent a notice through her lawyer and called upon the tenant to pay a sum of Rs. 5,71,832/- towards difference in rent upto May, 1998 and also rent for the months June, July and August, 1998 after giving adjustment of sum of Rs. 33,600/- paid by the tenant in advance. The tenant failed and neglected to comply with the notice sent by the landlady.

4. The landlady then filed a suit in the month of December, 1998 against the tenant for recovery of Rs. 6,83,346/- in the City Civil Court, Chennai. The landlady also claimed interest @ 18% per annum on Rs. 5,71,832/- (the principal amount of rent) due against the tenant.

5. The plaint filed by the landlady suffered from certain defects and the same was returned to her on January 20, 2000 for the rectification of defects. The landlady, however, re-presented the plaint after a gap of more than five years, to be precise on July 20, 2005. Initially an ex-parte decree was passed against the tenant in the suit but later on the tenant was permitted to contest the suit after the ex-parte decree was set aside.

6. After contest, the III Additional Judge, City Civil Court, Chennai passed a decree on March 24, 2008 in favour of the landlady and directed the tenant to pay to her the arrears of rent amounting to Rs. 5,71,832/- with interest at the rate of 6% per annum from September 9, 1998 to January 21, 2000 and from July 21, 2005 to the date of payment. The tenant was given three months’ time to pay the amount from the date of the decree.

7. The landlady challenged the judgment and decree dated March 24, 2008 before the High Court of Judicature at Madras. The Single Judge of the High Court after hearing the parties allowed the appeal preferred by the landlady in part and directed the tenant to pay interest @ 12% per annum from the date of the filing of the suit, i.e., from September 9, 1998 until March 24, 2008 and @ 6% per annum from March 25, 2008 till the date of realization of the principal amount of rent.

8. On July 26, 2010, while issuing notice in the petition for special leave to appeal, the following order was passed by us:

“Counsel for the petitioners submits that there was no justification for the High Court to grant interest for the period January 20, 2000 to July 20, 2005, when the plaint had been returned to the plaintiff for removal of certain defects.

Issue notice.

The execution of the decree as per the High Court Judgment shall remain stayed, provided the petitioners deposit a sum of Rs. 7.5 lakhs before the Court below, within four weeks from today.”

9. The landlady—sole respondent—has filed counter affidavit and justified the order of the High Court principally on the ground that on the admitted facts and circumstances of the case, the High Court has struck the balance on equity as between the