Case Note & Summary
The petitioners (defendants in the suit) challenged an order dated 01/01/2019 passed by the Small Causes Court, Nagpur, which partly allowed their application under Order XV-A CPC and directed the respondent (plaintiff) to pay Rs.10,000/- per month as licence fees. The dispute arose from a Leave and Licence agreement dated 01/10/2011, under which the respondent occupied the petitioners' property. The agreement stipulated a monthly licence fee of Rs.10,000/- with a 7.5% annual increase after every eleven months. Additionally, a separate maintenance agreement dated 10/10/2011 required the respondent to pay Rs.25,000/- per month for amenities. The respondent filed a suit alleging that its servants were being prevented from enjoying the property due to non-payment of licence fees and maintenance charges. The petitioners filed a written statement and counter-claim for possession and arrears. During the suit, the petitioners moved an application under Order XV-A CPC seeking direction to the respondent to deposit arrears of licence fees and maintenance charges, claiming a total of Rs.40,446/- per month. The trial court partly allowed the application, directing payment of only Rs.10,000/- per month as licence fees, without considering the escalation clause or the maintenance agreement. The High Court held that the trial court erred in ignoring the escalation clause and the separate maintenance agreement. It modified the order, directing the respondent to pay licence fees at Rs.10,000/- per month with a 7.5% annual increase from 01/10/2011, and maintenance charges at Rs.25,000/- per month from 10/10/2011. The court also directed the respondent to pay arrears within four weeks and continue paying current amounts. The writ petition was partly allowed.
Headnote
A) Civil Procedure - Order XV-A CPC - Interim Deposit of Licence Fees - The court considered an application under Order XV-A CPC for direction to deposit arrears of licence fees and maintenance charges - Held that the trial court ought to have considered the escalation clause in the agreement and the separate maintenance agreement while determining the amount payable - The order was modified to direct payment of licence fees at Rs.10,000/- per month with 7.5% annual increase from 01/10/2011, and maintenance charges at Rs.25,000/- per month from 10/10/2011 (Paras 1-9).
Issue of Consideration
Whether the trial court erred in fixing the licence fees at Rs.10,000/- per month without considering the escalation clause and maintenance charges under Order XV-A CPC.
Final Decision
The writ petition is partly allowed. The impugned order is modified to direct the respondent to pay licence fees at Rs.10,000/- per month with 7.5% annual increase from 01/10/2011, and maintenance charges at Rs.25,000/- per month from 10/10/2011. Arrears to be paid within four weeks, and current amounts to be paid regularly. Rule made absolute in those terms.
Law Points
- Order XV-A CPC
- Leave and Licence Agreement
- Licence Fees
- Maintenance Charges
- Escalation Clause
- Interim Application
