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2022 Supreme(Mad) 3048
IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.A. NAKKIRAN, J.
M.R. Junaitha Begum Plaintiff - Appellant
Versus
M/s. India Tourism Development Corporation Limited, Represented by its Deputy General Manager (South), Chennai - Respondent
CS. No. 553 of 2017
Decided On : 29-07-2022
For the Plaintiff:M.V. Vijayabaskar, Advocate. For the Defendant:C. Franco Louis, Advocate.
The main legal point established in the judgment is the entitlement of the Plaintiff to recover rent arrears and the determination of interest on the arrears.
Headnote:
Rent Arrears - Fair Rent Fixation - Civil Procedure Code - Order VII Rule 1 - Original Side Rules - Fair Rent Proceedings - Rent Controller - Rent Control Appellate Authority - Compliance with Court's Order - Interest on Arrears - Decree for Recovery - [RENT ARREARS] - [FAIR RENT FIXATION] - [Civil Procedure Code - Order VII Rule 1, Rent Control Act] - The court discussed the fair rent fixed by the Rent Controller and the Rent Control Appellate Authority, the compliance with the court's order, and the interest on arrears. The court permitted the Plaintiff to withdraw a sum of Rs.1,00,00,000/- deposited in the Court and decreed the Defendant to pay a sum of Rs.2,17,95,500/- with interest at 6% p.a. from the date of the plaint till the date of realization.
Fact of the Case:
The Plaintiff filed a Civil Suit seeking recovery of rent arrears from the Defendant. The Defendant, a Central Government Undertaking, contested the suit on the grounds of fair rent fixation and compliance with the court's order.
Finding of the Court:
The court found that the fair rent was fixed by the Rent Controller and the Rent Control Appellate Authority, and the Defendant had complied with the court's order by depositing a sum of Rs.2 crores. The court permitted the Plaintiff to withdraw a portion of the deposited amount and decreed the Defendant to pay the remaining arrears with interest.
Issues: The issues included the entitlement of the Plaintiff to a decree for recovery of the sum, entitlement to interest, and the need to await final orders in related cases.
Ratio Decidendi: The court decided that the Plaintiff was entitled to recover a sum of Rs.2,17,95,500/- with interest at 6% p.a. from the date of the plaint till the date of realization. The court did not consider the need to await final orders in related cases due to their disposal.
Final Decision: The Civil Suit was partly decreed, and the Defendant was directed to pay a sum of Rs.2,17,95,500/- with interest at 6% p.a. from the date of the plaint till the date of realization.
JUDGMENT
(Prayer: This Civil Suit has been filed, under Order VII Rule 1 of CPC read with order IV Rule 1 of the Original Side Rules, for the relief as stated therein.)
1. This Civil Suit has been filed, seeking judgement and decree, directing the Defendant to pay the Plaintiff a sum of Rs.4,73,50,000/- (Rupees Four Crores Seventy Three Lakhs and Fifty Thousands only) with interest at the rate of 12% p.a. from the date of the plaint till the date of realisation and for costs.
2. The case of the Plaintiff is that the Defendant is the landlord of the premises at No.29, Dr.P.V.Cherian Crescent, Ethiraj Salai, Egmore, Chennai-8, measuring about 5252 sq.ft. and the Defendant is the tenant therein. The tenancy is only for non residential purpose. A sum of Rs.74,175/- was paid as rental advance and the monthly rent was Rs.45,150/-, exclusive of the electricity charges and the monthly rent had to be paid on the first day of every succeeding month. Till March 2013, the rent was paid. On 2.4.2013, the Plaintiff initiated fair rent proceedings in RCOP.No.585 of 2013, on the file of the XIII Small Causes Court, Chennai and from April 2013, the Defendant stopped paying the rent. On 20.4.2017, the Rent Controller fixed a sum of Rs.9,47,000/- as fair rent per month from 2.4.2013. The Plaintiff had also preferred an appeal against the same. The Defendant had also filed RCOP.No.1881 of 2014 for depositing the contractual monthly rent from April 2013 and it is pending. The Defendant has to pay the fair rent arrears from April 2013 till May 2017 (50 months). The Plaintiff is entitled to collect the entire arrears to the tune of Rs.4,73,50,000/- with interest at 12% p.a. from the date of the order dated, 20.4.2017 made in the RCOP. The Plaintiff had issued a legal notice dated 14.06.2017 to the Defendant demanding the said amount with interest. Non payment of the rental arrears is wilful and wanton. Hence, this Civil Suit has been filed, seeking the reliefs, as stated above.
3. The case of the Defendant, as set out in the written statement, is that the Defendant Corporation is a Central Government Undertaking and is in the business of hospitality industry/ travel service and it was functioning at No.29, Dr.PV.Cherian Crescent, Ethiraj Salai, Egmore, Chennai-8 till the premises was vacated by the Defendant and handed over to the Plaintiff on 2.7.2018. The Defendant was a tenant on a monthly rent of Rs.45,150/- at the time of filing RCOP.No.585 of 2013 by the Plaintiff for fixation of fair rent. The fair rent was fixed at Rs.9,47,000/- p.m by the Rent Controller. Against the order of the Rent Controller, both the Plaintiff and the Defendant have filed RCA.Nos.538 of 2017 and 463 of 2017 respectively. The Rent Control Appellate Authority, by order dated, 1.9.2018 reduced the fair rent to Rs.8,81,060/- p.m. dismissing the appeal filed by the Plaintiff. The Defendant had preferred CRP.No.678 of 2019 against the order of the Rent Control Appellate Authority and it is pending and the Plaintiff had also filed CRP.No.519 of 2019 and the same is also pending. The Defendant vacated and handed over the premises to the Plaintiff on 2.7.2018 and deposited a sum of Rs.2 crores as per the order of this Court, dated 16.07.2018 and by order dated, 19.9.2018, compliance of the said order was recorded. The Plaintiff is entitled to the suit claim only when the monthly fair rent payable is finally fixed by this Court. The suit is premature. In such circumstances, the suit is liable to be dismissed.
4. On the pleadings of the parties and other materials on record, the following issues were framed:-
(1) Whether the Plaintiff is entitled to a decree for recovery of a sum of Rs.4,73,50,000/- as prayed for in the plaint, especially when the fair rent fixed by the learned Rent Controller is yet to reach finality?
(2)Whether the Plaintiff is entitled to interest and if so at what rate and from when?
(3)On the tenant vacating the premises on 2.7.2018 and also depositing R
