Back
2015 Supreme(Cal) 432
IN THE HIGH COURT OF CALCUTTA
SOUMEN SEN, J.
Pilani Investment And Industries Corporation Limited – Petitioner
Vs.
Steel Authority of India Limited – Respondent
G.A. No.2900 & 2904 of 2011 & C.S. No. 74 of 2011
Decided On : 07-10-2015
Advocate Appeared:
For the Petitioner: Mr. Jayanta Kr. Mitra, Sr. Adv., Mr. Sabyasachi Chowdhury, Ms. Nikita Jhunjhunwala.
For the Respondent: Mr. Anindya Kr. Mitra, Sr. Adv., Mr. Abhrajit Mitra, Sr. Adv., Mr. Abhijit Gangopadhyay, Mr. Supriya Dubey, Ms. Shilpi Ganguli.
All payments made for occupation of the property would constitute rent.
Headnote:
In a suit for eviction of a monthly tenant, the plaintiff claimed rent, service charges, service tax, occupier’s share of corporation tax, and surcharge thereon as part of the rent. The defendant disputed the claim, alleging that the rent was not inclusive of corporation taxes and surcharge thereon, and that the various heads of claim had been deliberately included and presented as rent to attract the jurisdiction of the City Civil Court. The court held that all payments made for occupation of the property would constitute rent, and that the various heads of claim mentioned in the bill raised every month would constitute rent. The court also held that the plaintiff was entitled to a summary judgment for recovery of possession of the suit premises and a decree for the amount due and payable by the defendant to the plaintiff as on August 31, 2015.
Fact of the Case:
The plaintiff, the owner of an office space, filed a suit for eviction of the defendant, a monthly tenant, for non-payment of rent. The plaintiff claimed rent, service charges, service tax, occupier’s share of corporation tax, and surcharge thereon as part of the rent. The defendant disputed the claim, alleging that the rent was not inclusive of corporation taxes and surcharge thereon, and that the various heads of claim had been deliberately included and presented as rent to attract the jurisdiction of the City Civil Court.
Finding of the Court:
The court held that all payments made for occupation of the property would constitute rent, and that the various heads of claim mentioned in the bill raised every month would constitute rent. The court also held that the plaintiff was entitled to a summary judgment for recovery of possession of the suit premises and a decree for the amount due and payable by the defendant to the plaintiff as on August 31, 2015.
Issues: Whether the various heads of claim mentioned in the bill raised every month would constitute rent.
Ratio Decidendi: The court held that all payments made for occupation of the property would constitute rent, and that the various heads of claim mentioned in the bill raised every month would constitute rent.
Final Decision: The court allowed the plaintiff's suit in part and decreed the suit for the amount due and payable by the defendant to the plaintiff as on August 31, 2015.
Soumen Sen, J.
The plaintiff has filed this application under Chapter XIIIA of the Rules of the Original Side praying inter alia for a decree of eviction.
The plaintiff is the owner of a office space having an area measuring about 8350 Sq. Ft on the 5th floor of the premises situated on a industry House, 10 Camac Street, Kolkata 700017 (herein after referred to as the suit premises). The defendant was a monthly tenant under the plaintiff in respect of the suit premises paying monthly rent as agreed by and between the parties from time to time along with service charges at an agreed rate of 9.55 per Sq. Ft. for the tenanted premises as also service tax as statutorily fixed from time to time. Over and above the aforesaid charges the defendant also agreed to pay occupier’s share of corporation tax and surcharge thereon as levied from time to time. The plaintiff used to raise consolidated bills on the defendant every month in respect of charges on account of monthly rent, service charges and service tax as agreed between the parties and the occupier’s share of corporation tax and surcharge there on. The last of such bills raised by the plaintiff for the month of March 2010 dated 12th March 2010 was for a sum of Rs. 1,31,965/-.
The particulars of the bill dated 12th March 2010 as disclosed in the affidavit are indicated below:-
Being the rent for 5th Floor measuring 8350 Sq.ft. of Premises No.10, Camac Street, Kolkata, @ Rs. 2.53 per Sq.ft. For the month of March, 2010
Rs. 21,125.50
Service Charge @ Rs. 9.55 per Sq.ft. Measuring 8350 sq.ft.
Rs. 79,742.50
Service Tax @ 10.30% on Rs. 1,00,868.00
Rs. 10,389.00
Occupier’s Share of Corporation Tax @ Rs. 1.24 Paise per sq.ft.
Rs. 10,354.00
Surcharge on Corporation Tax @ Rs. 1.24 Paise per sq.ft.
Rs. 10,354.00
Total
131,965.00
The defendant agreed that the plaintiff would raise a consolidated monthly bill containing the aforesaid sums on account of monthly rent, service charges, service tax, occupier’s share of Corporation Tax and surcharge thereon month by moth for payment by the defendant for the use and occupation of the suit premises by the defendant. The defendant agreed that all the aforesaid ingredients would from part of the rent. The plaintiff on the aforesaid basis raised bills and received payments till March 2010. The plaintiff however, did not accept any rent from the defendant thereafter as the parties could not reach any agreement as to the quantum of rent. The plaintiff thereafter 21st February, 2011, issued a notice under Section 106 of the Transfer of Property Act terminating the monthly tenancy of the defendant with the expiry of 15 days from the date of receipt of the notice and has claimed vacant and peaceful possession of the suit property. The defendant replied to the said notice on 21st March, 2011. The defendant however, did not hand over the possession of the suit premises and has remained in wrongful occupation on and from 21st March 2011.
Under such facts and circumstances the plaintiff has filed the instant suit for recovery of possession, arrears of rent and mesne profits at the rate of Rs. 150/- per sq.ft. the particulars of the claim are indicated in paragraph 10 of the plaint which is set out herein in below:
There is due and payable by the defendant to the plaintiff an amount of Rs. 14,51,615/- (Rupees fourteen lakhs fifty one thousand six hundred fifteen only) towards outstanding rent inclusive of corporation taxes and surcharge thereon from the month of April 2010 up to February 2011 as per the following particulars:-
PARTICULARS
(i) Rent for the said premises inclusive of service charges and service tax per month being Rs. 1,11,257/-for 11 months
Rs. 12,23,827/-
(ii) Occupiers share of corporation tax and surcharge there
