The court held that a Trial Court may use discretion under Order XV-A of the Code of Civil Procedure to determine interim payments, adjusting for damages and compensation while ensuring fairness in pending disputes.

JUDGMENT

1. In the present appeal, Appellant has challenged order dated 4th January 2021 passed by Joint Civil Judge Senior Division, Thane thereby allowing Plaintiff’s Application at Exhibit 5 and rejecting Appellant/Defendant’s Application at Exhibit 16. By allowing Plaintiff’s Application at Exhibit 5, the Trial Court has directed the Appellant/Defendant to deposit/pay to the Plaintiff an amount of Rs. 37,61,606/- per month towards license fees and compensation from 1st September 2020 either till decision of the suit or till handing over possession of the suit premises, whichever is earlier. The Trial Court has granted exemption for payment of license fees for a period of 78 days during COVID with a further direction to adjust the amount of security deposit paid by the Defendants in the amount of arrears of license fees and compensation. The Defendants are also restrained from subletting or assigning the license premises till decision of the suit. The Trial Court has also awarded interest @ 15% p.a. for delay in payment of license fees. Appellants/Defendants are aggrieved by the order dated 4th January 2021 passed by the Trial Court and have filed the present appeal.

2. Facts of the case are in a narrow compass. Plaintiff- Rupani Spinning Mills Private Limited is a private limited company engaged in the business of spinning, weaving and furnishing of textiles. Appellant-Defendant-Kavis Fashions Private Limited is a company engaged in the business of tanning, dressing of leather, manufacture of luggage, hand bags, saddlery and harness. Plaintiff is lessee in respect of Plot No. B-2, Mira Industrial Area, Mira Taluka, Thane admeasuring 6254 square meters, in pursuance of lease dated 18th August 1990 executed in its favour by Maharashtra Industrial Development Corporation. Plaintiff has constructed RCC shed admeasuring 35,500 square feet and mezzanine floor admeasuring 5200 square feet on the said plot. Plaintiff and Defendant entered into registered Leave and License Agreement dated 17th March 2015, by which Plaintiff granted license to the Defendant in respect of ground floor premises at license fees at Rs. 12,00,000/- per month and mezzanine floor by similar leave and license agreement dated 19.03.2005 granted license in respect of premises at Rs. 2,00,000/- per month. Both agreements contained provision for enhancement of license fees at compound rate of 4% for each subsequent years. By the year 2019- 2020, which was a 5th year of tenure of license, the license fees in respect of both the premises was collectively Rs. 19,32,606/-. It is Plaintiff’s case that the Defendant started delaying payment of license fees after December 2019 and the Plaintiff granted some credit to the Defendant for payment of license fee for the months of December 2019 in January 2020 without levy of interest. That, the Defendant defaulted on paying license fees on account of outbreak of COVID-19 pandemic. Lock-down was announced from 23rd March 2020 on account of which, Defendant did not pay license fees to Plaintiff. Some correspondence took place between the Plaintiff and Defendant due to non-payment of license fees by Defendant who sought waiver for period of three months and also reduction of license fees for the remainder of the license period. Plaintiff granted waiver of license fees for the months of April, May and 15 days in the month of June on certain conditions, which included payment of fixed costs to be paid to MIDC for subletting the premises. Defendant paid an amount of Rs.10,00,000/- on 10.06.2020 and another sum of Rs.9,32,607/- on 30.07.2020. The Defendant demanded further reduction of license fees. Thereafter several developments and correspondence occurred between the Plaintiff and Defendant, details of which need not be narrated, considering the limited controversy involved in the present appeal. Suffice it to state that on 18th September 2022, Plaintiff lodged Special Civil Suit No. 278 of 2020 against the Defendant in the Cour