Case Note & Summary
The dispute arose from a lease agreement dated 09.07.1980 between the plaintiff-landlord (respondent) and the defendant-tenant (appellant), a District Consumer Cooperative Wholesale Stores. The lease was for three years at a monthly rent of Rs.6,500 with an advance of Rs.20,000. The plaintiff filed a suit for eviction (O.S.No.95/1990), which was decreed on 08.02.1995 directing the defendant to vacate and pay compensation of Rs.15,000 per month for three years prior to the suit. The defendant appealed (A.S.No.714/1995), and during the appeal, an understanding was reached: the defendant would vacate within six months and pay Rs.50,000 per month for that period. The High Court reserved liberty to the plaintiff to file a separate suit for higher damages. The defendant vacated in November 2003. The plaintiff then filed O.S.No.37/2007 seeking damages at Rs.89,000 per month for the period 14.07.2000 to 14.07.2003 (three years prior to vacating). The Trial Court, applying Section 4 of the Tamil Nadu (Lease and Rent) Control Act, computed fair rent at Rs.1,08,929 per month but decreed the suit for Rs.89,000 per month, totaling Rs.26,98,367, plus Rs.3,56,000 for future loss and costs. The High Court dismissed the defendant's appeal (A.S.No.811/2009). The Supreme Court, while noting that the claim was legally justified, considered the special circumstances: the defendant is a cooperative society serving members, had already paid Rs.10 lakhs towards the decree, and had complied with the earlier order. The Court held that imposing the full decretal amount would be an undue burden. Balancing equities, the Court modified the decree to limit damages to Rs.50,000 per month for the three-year period, totaling Rs.18,00,000. After adjusting the Rs.10,00,000 already paid, the defendant was directed to pay the balance of Rs.8,00,000 within eight weeks. The award of future loss and costs was set aside. The appeal was partly allowed.
Headnote
A) Property Law - Landlord-Tenant - Damages for Use and Occupation - Section 4 of Tamil Nadu (Lease and Rent) Control Act - The plaintiff-landlord sought damages at Rs.89,000 per month for the period the defendant-tenant remained in possession after eviction decree. The Trial Court, applying the Rent Control Act, computed fair rent at Rs.1,08,929 per month but decreed the suit for the limited claim of Rs.89,000 per month. The High Court affirmed. The Supreme Court held that while the claim was justified, considering the defendant is a Consumer Cooperative Society and had already paid enhanced rent of Rs.50,000 per month during the six-month period granted to vacate, the decretal amount should be reduced to Rs.50,000 per month for the three-year period to balance equities. (Paras 7-15) B) Civil Procedure - Decree - Modification - Equitable Jurisdiction - The Supreme Court, in the interest of justice, modified the decree to limit the decretal amount to Rs.50,000 per month for the period 14.07.2000 to 14.07.2003, totaling Rs.18,00,000, with the defendant already having paid Rs.10,00,000, leaving a balance of Rs.8,00,000 to be paid within eight weeks. The Court also set aside the award of future loss and costs. (Paras 15-16)
Issue of Consideration
Whether the defendant-tenant is liable to pay damages at the rate of Rs.89,000 per month for the period of three years prior to vacating the premises, and whether the quantum of damages awarded by the Trial Court and affirmed by the High Court is justified.
Final Decision
The Supreme Court partly allowed the appeal. It modified the judgment and decree of the Trial Court and High Court, reducing the monthly damages from Rs.89,000 to Rs.50,000 for the period 14.07.2000 to 14.07.2003, totaling Rs.18,00,000. After adjusting the Rs.10,00,000 already paid, the defendant was directed to pay the balance of Rs.8,00,000 within eight weeks. The award of future loss and costs was set aside. No order as to costs.
Law Points
- Damages for use and occupation
- Fixation of fair rent under Rent Control Act
- Liberty to file separate suit for higher damages
- Equitable modification of decree
