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BHAGIRATH AGARWAL versus M/S. SIMPLEX CONCRETE & PILES (I) PVT. LTD. & ORS.

Citation: [2017] 3 S.C.R. 698 · Decided: 23-03-2017 · Supreme Court of India · Bench: KURIAN JOSEPH · Disposal: Disposed off

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Judgment (excerpt)

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[2017) 3 S.C.R. 698 . 
BHAGIRATH AGARWAL 
v. 
M/S. SIMPLEX CONCRETE & PILES (I) PVT. LTD. & ORS. 
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(Civil Appeal Nos. 7544-7546 of2008) 
. MARCH 23, 2017 
[KURIAN JOSEPH AND R. BANUMATHI, JJ.] 
FVest Bengal Premises Tenancy Act, 1956 - ss.17(2A), 34 -
Denial 1~[ interest for arrears of rent to be paid in installment -
Propriety of - Default in payment of rent by respondent-tenant -
Ejectment suit by appellanl-landlord - City civil court directed 
respondent-tenant to pay arrears of rent in installments, howeve1; 
without any interest thereon - Challenge by appellant in High Court, 
rejected - On appeal, held: The statutory provision is very clear -
Whenever payment of rent including arrears is permitted to be paid 
in instal/Juents, the statute contemplates 'that the beneficiary shall 
be granted interest - Thus, once the rent including the arrears is 
permitted to be paid in i11stall111ents, there is no discretion available 
with the Court to deny interest - It is the statutory right and 
entitle111ent of the landlord to get interest - This is irrespective of the 
iustification or expla11atio1t, if any, available ,for the non-
payment - Appella111 shall be entitled to interest. 
Disposing of the appeals, the Court 
HELD: 1.1 The statutory provision of Section 17(2A) of 
the West Bengal Premises Tenancy Act, 1956 is very clear. 
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. No doubt, 
under Section 34 of the Act in case the landlord has refused to 
provide the amenities and in case the tenant spent money for 
p~oviding the amenities, the said amount, subject to the conditions 
therein, can be set off. Though, there is such a case set np by the 
tenant, yet no set off has been granted by the Trial Court, and the 
tenant was permitted to pay the dues in installments. Once the 
arrears arc -l1ermitted to be paid in installments, there is no 
discretion available with the Court to deny interest. It is not a 
698 
BHAGIRATH AGARWAL v. M/S. SIMPLEX CONCRETE & 
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PILES (I) PVT. LTD. 
discretionary relief; it is the statutory right and entitlement of 
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the landlord to get interest. Th~ appellant sh~ll be entitled to 
interest. [Para 6] · [700-F-H; 701-A] 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 7544-
7546 of2008. 
From the Judgment and Order dated 29.11.2007 of the High Court 
at Calcutta in C. 0. No. 2503 of2006 with C. 0. No. 3811 of2006 with 
C. A. N. No. 7802 of2006 
WITH 
C. A. Nos. 7552-7554 of2008. 
S.B. Upadhyay, Sr. Adv., Pawan Upadhyay, Mrs. Anish Upadhyay, 
P. Mishra, Nishan Kumar, Ms. Sharmila Upadhyay, Syed Ali,Ahmad, 
Syed Tanweer Ahmad, S.S. Bandyopadhyay, Mohan Pandey, Ms. Daisy 
Hannah, Shekhar Kumar, Adv.s. for the appearing parties. 
The Judgment of the Court was delivered by 
KURIAN, J. C. A. Nos. 7544-7546/2008 
I. The appellant is aggrieved since he has been denied interest 
for the arrears of rent vide order dated 22.05.2006 passed by the City 
Civil Court at Calcutta in the Ejectment Suit No. 717 of I 992. To the 
extent relevant, the order reads as follows:-
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"That the petitions filed by the defendant under Section I 7(2) 
and I 7(2A)(b) of the West Bengal Premises.Tenancy Act are 
allowed on contest without any cost. The petition filed- by the 
defendant for abatement of rent is dismissed on contest. The 
defendant is a defaulter in payment of rent since November, 
[email protected] 9,000/-permonth. Thus the total defaulting period· 
is 186 months i.e. since November, 1990 to April, 2006. Thus . 
the total amount ofrent payable by the defendant is Rs.I 9,000/-
x 186 = Rs.35,34,000/-. From the submission of the Id, Lawyer 
it is available that the defendant already paid Rs.5 lakhs as per 
order of the Hon'ble Court. So the due amount is Rs.35,34,000/-
- Rs.6,00,000/- = Rs.29,34,000/-. The defendant is directed to · 
pay the above said arrear rents by ten monthly installments @ 
RSJ,00,000/- per installment along \\'.ith current rent. The last 
installment wil1 be Rs.2,34,000/-. Each installment is to be paid 
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SUPREME COURT REPORTS 
[2017] 3 S.C.R. 
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within the last working day of each m'onth. The first installment 
is to be paid by 301h June, 2006." 
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2. Since the appellant was denied interest, the matter was pur

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