Legal Reference Library

The Supreme Court, in Bhagirath Agarwal vs M/s Simplex Concrete & Piles (I) Pvt. Ltd, has held that once the court permits the tenant to pay arrears of rent in installments, there is no discretion available with the court to deny interest of the same to the landlord. A bench comprising Justice Kurian Joseph and Justice R Banumathi set aside the order of the trial court that denied interest for the arrears of rent payable to the landlord and allowed the tenants to pay the arrears in installments. Referring to Section 17(2A) of the West Bengal Premises Tenancy Act, 1956, the bench said whenever payment of rent, including arrears, is permitted to be paid in installments, the statute contemplates that the beneficiary shall be granted interest This is irrespective of the justification or explanation, if any, available for the non-payment, the bench added. The court also observed that though under Section 34, the said amount can be set off, in case the landlord has refused to provi...

The Supreme Court in M/S PARK STREET PROPERTIES (PVT) LTD.  VS. DIPAK KUMAR SINGH & ANR has held that the phrase ‘contract to the contrary’ in Section 106 of the Transfer of Property Act means a ‘valid contract’ and it cannot be read to mean that the parties are free to contract out of the express provisions of the law, thereby defeating its very intent. Apex Court Bench comprising of Justices V. Gopala Gowda and Adarsh Kumar Goel restored the Judgment of Trial Court which had decreed the suit of Landlords for recovery and Khas possession. As per the agreement, the landlord was entitled to terminate the tenancy only in case there was a breach of the terms of the agreement or in case of non-payment of rent for three consecutive months and the tenants failed to remedy the same within a period of thirty days of the receipt of the notice. The notice issued by Landlord requiring it to vacate the premises was contested by the Tenants terming it as illegal. This contention, though ini...