Full Judgment Text
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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
I.A.NO. 4
IN
CIVIL APPEAL NO.3975 OF 2006
SATYAWATI R. RUIA Appellant (s)
VERSUS
NEW INDIA ASSURANCE CO. LTD. Respondent(s)
O R D E R
I.A.NO.4
This application has been filed in the appeal, inter alia, for
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clarification of the order passed by this Court on 7 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.
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In the order dated 7 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
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intention of the Court that accrual of interest would cease on 5
October, 2006, no matter when the principal amount was paid.
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Ultimately, the amounts were deposited on 5 October, 2006, which
means that interest on the amounts are still payable from the month
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of April, 2000 till 5 October, 2006, when the deposits were made.
Mr. Ranjit Kumar, learned senior counsel appearing in support of
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the application submitted that the subsequent period from 5
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
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had been directed to be made. In fact, in our order of 7 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
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that our order of 7 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,
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it is quiet obvious that the amounts already deposited would be
sufficient to cover any amounts that may be payable as interest after
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5 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.
....................J.
(ALTAMAS KABIR)
....................J.
(MARKANDEY KATJU)
NEW DELHI;
September 02, 2008.