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Supreme Court of India 2017-03-23 allowed

Bhagirath Agarwal vs Simplex Concrete & Piles (I) Pvt. Ltd. & Ors

Bench: 2 — Kurian

In Brief

A landlord appealed against an order denying him interest on arrears of rent when the tenant was permitted to pay in installments. The City Civil Court had denied interest, considering the tenant's defense that the landlord had withheld amenities. The Supreme Court held that under Section 17(2A) of the West Bengal Premises Tenancy Act, 1956, interest on arrears is a statutory right and entitlement to the landlord, not a discretionary relief. Once arrears are permitted to be paid in installments, courts have no discretion to deny interest regardless of the tenant's justifications. The appeal was allowed and the landlord was declared entitled to interest.

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Landlord and Tenant Tenancy Law Interest on Arrears West Bengal Premises Tenancy Act Civil Procedure

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