This application has been filed in the appeal, inter alia, for
clarification of the order passed by this Court on 7th September, 2006
to include payment of interest on all amounts which were directed to
be paid by way of rent till the date of actual payment, and not for the
period i.e. August, 1992 to March, 2000 mentioned in the aforesaid
order.
In the order dated 7th September, 2006 we had indicated as follows:-
“...In this factual background,
the respondent agrees to deposit the entire
amount representing the arrears of rent at
the aforesaid rate together with interest @
15% per annum from August, 1992 to
March, 2000 before the Trial Court....”
The aforesaid direction has been interpreted on behalf of the
respondent to mean that even the interest accruing on the arrears of
rent would be payable upto March, 2000 and not till the date of
actual payment.
We are unable to accept the submission which has been made
on behalf of the respondent, and we agree with the applicant that
our intention in the said order was that arrears of rent for the period
in question was to be deposited together with interest @ 15% per
annum which was not restricted to the period of arrears but till the
date of actual deposit of the arrears in the Trial court. It was not the
intention of the Court that accrual of interest would cease on 5th
October, 2006, no matter when the principal amount was paid.
Ultimately, the amounts were deposited on 5th October, 2006, which
means that interest on the amounts are still payable from the month
of April, 2000 till 5th October, 2006, when the deposits were made.
Mr. Ranjit Kumar, learned senior counsel appearing in support of
the application submitted that the subsequent period from 5th
October, 2006 till date has also to be taken into consideration.
In all fairness, it must, however, be stated that during the
pendency of the matter, the proceedings for determining standard
rent had also been concluded before the Rent Controller and the
standard rent was assessed @ Rs.60,175/- per month as against the
sum of Rs.3,90,240/- per month which was the basis on which the
deposits
had been directed to be made. In fact, in our order of 7th September,
2006, we had also indicated that the order would be subject to the
ultimate result of the standard rent proceeding.
Having regard to the above, since it was not our intention to
disentitle the applicant of interest payable on the arrears with
effect from the month of August, 1992 to March, 2000, it must be
held that the direction for payment of interest would continue to
operate till actual payment of the dues. Accordingly, we clarify
that our order of 7th September, 2006, will include the interest on
the arrear rents from April, 2000, till the date of actual deposit in
the trial court.
Having regard to the standard rent fixed and the amount
already deposited, which is subject of course to the pending appeal,
it is quiet obvious that the amounts already deposited would be
sufficient to cover any amounts that may be payable as interest after
5th October, 2006.
Accordingly, we make no observations regarding payment of
interest for the said period, but we grant liberty to the applicant to
raise the said question before the court of Small Causes, at Bombay,
where the matter is pending in appeal.
The application is disposed of, with the observations made
hereinabove.
(MARKANDEY KATJU) NEW DELHI; September 02, 2008.