Bijay Kumar Manish Kumar HUF vs. Ashwin Bhanulal Desai
Background
The landlord (petitioner) had moved the Calcutta High Court and then the Supreme Court by way of Special Leave Petitions over a dispute on whether the West Bengal Tenancy Act or the Transfer of Property Act governed a landlord-tenant relationship involving four tenancies, after the tenant allegedly stopped paying rent and the landlord sought eviction. While the main SLPs remained pending, the landlord filed interlocutory applications (IAs) asking the Court to direct the tenant to pay rent and other dues accruing during the litigation.
Decision Breakdown
The Court did not decide the main tenancy-law question, which remains pending. Instead, ruling only on the interlocutory applications, it accepted the landlord's calculation of dues (rent, interest and related amounts) and directed the tenant-respondent to deposit Rs. 5,15,05,512 with the Supreme Court Registry within four weeks, to be kept in an interest-bearing fixed deposit, with an affidavit of compliance to follow. The Court clarified this interim payment direction is without prejudice to, and subject to, the final outcome of the pending Special Leave Petitions, which were listed to be taken up again in July 2024.
Lesson Learnt
Even while a larger legal dispute (such as which tenancy law applies) remains unresolved, courts can order a tenant in continued occupation to deposit accruing rent/mesne profits during the pendency of litigation, so that the landlord is not left without recourse merely because the final decision is delayed.