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2026 Supreme(Online)(Del) 14429
IN THE HIGH COURT OF DELHI AT NEW DELHI
V. Kameswar Rao, Manmeet Pritam Singh Arora, JJ
Ashwani Dewan – Appellant
Versus
Miniso Life Style Private Limited – Respondent
RFA(COMM) 308/2023 | CS(COMM) 363/2020
For the Appellants/Petitioners: Shreshtha Kumar, Rahul Ranjan Verma
For the Respondents: Varun Sharma
Landlords are entitled to the contractually agreed interest rate on arrears of rent, even when such amounts are deposited with the court, if the payment is received belatedly.
Headnote:(A) Lease Agreement - Arrears of Rent - Interest - Where a registered lease deed stipulates a specific interest rate for arrears of rent, the landlord is entitled to such interest on amounts deposited belatedly with the court, as these amounts constitute admitted arrears. (Para 9)
Issues: Whether the Appellants are entitled to interest at 18% per annum on the sum of Rs. 50 lakhs deposited by the Respondent with the Trial Court.
MANMEET PRITAM SINGH ARORA, J.
1. The present Regular First Appeal [‘RFA’] has been filed against the judgment and decree dated 05.10.2023 [‘impugned order’] passed by the District Judge, Commercial Court–051South-East District, Saket Court, in CS(COMM) 363/2020 titled Ashwani Dewan and Anr. V. M/s Miniso Life Style Pvt. Ltd.
Factual Matrix
2. Appellant nos. 1 and 2 are joint owners and landlord of property bearing no. J-II/25, AB Lajpat Nagar II, New Delhi-11 0024 [‘property’].
2.1 It is stated that the ground floor and basement of the said property was let out to the Respondent vide registered lease deed dated 14.12.2017 for a monthly rent of Rs. 13 lakhs.
2.2 It is stated that the rent for the said property, until the month of March, 2020 was duly paid by the Respondent, and admittedly received by the Appellants.
2.3 It is stated that disputes arose between the parties from April, 2020, onwards.
2.4 It is stated that the Respondent vide email dated 18.06.2020 agreed to pay 50% rent for April 2020 and May 2020 however, paid 50% rent for the month of April, 2020 only and did not pay for the month of May. Therefore, when the Respondent defaulted in making payments of rent, Appellants filled the suit for recovery of arrears of rent on 24.08.2020.
2.5 It is stated that even though, there was a lock-in period as per the lease deed until 05.01.2021, during the subsistence of the suit proceedings the Respondent unilaterally terminated the lease deed on 15.10.2020 and vacated the premises on 05.11.2020.
2.6 It is stated that, upon an application filed by the Appellant under Order XXXIX Rule 10 of the Code of Civil Procedure [‘CPC’], the Trial Court vide order dated 27.10.2020 directed the Respondent to deposit a sum of Rs. 50 lakhs provisionally towards arrears of rent with the Trial Court in the form of Fixed Deposit Receipt [‘FDR’].
2.7 The Respondent assailed the aforesaid order dated 27.10.2020 in FAO(COMM) 45/2023 and the High Court vide order dated 07.12.2020 directed the Respondent to deposit part-sum or Rs. 30 lakhs with the Trial Court and directed the parties to explore settlement. However, the settlement talks failed and the said appeal was dismissed by the High Court on 13.04.2023 with a direction to the Respondent to further deposit the remaining sum of Rs. 20 lakhs with the Trial Court.
2.8 Respondent states that in compliance of the aforesaid orders it deposited a sum of Rs. 30 lakhs on 27.01.2021 and a further sum of Rs. 20 lakhs on 13.04.2023. It is stated that the said amounts were deposited with the Trial Court.
2.9 Appellants contend that the aforesaid amount of Rs. 30 lakhs and of Rs. 20 lakhs, deposited with the Trial Court, was received by the Appellants on 10.07.2023. It is clarified that along with Rs. 50 lakhs, the Appellants also received a nominal amount of Rs. 68,972 as interest earned on the FDR.
2.10 Appellants filed an application under Order XIII – A Rule 3 read with section 151 CPC before the Trial Court seeking recovery of rent for the period of May, 2020 till 05.01.2021 [i.e., expiry of the lock-in period]. The Appellants sought recovery of rent, GST and 18% interest on the delayed payment. The total amount due for this period was calculated at Rs. 1,33,36,430. In this application, the Appellants after adjusting the security deposit of Rs. 50 lakhs sought recovery of balance Rs. 83,36,430 inclusive of 18% interest on late payment.
2.11 The Trial Court vide impugned order partially allowed the claim and returned the following findings: -
i. The Appellants were held entitled to rental for the period May, 2020 to 07.11.2020. The Trial Court rejected the claim for the period 08.11.2020 to 05.01.2021.
ii. The Trial Court calculated arrears of rent, GST and due interest w.e.f. May, 2020 till October, 2020 at Rs. 99,52,927. The Trial Court calculated the arrears of rent, GST and due interest for the seven (7) days of November, 2020 at Rs. 3,70,670.
iii. The Trial Court calculated the sum total
