Infinity Infotech Parks Limited v. Shiva Jute Mills Private Limited
Background
The petitioner, a lessee of a commercial building in Kolkata, had sub-leased a floor which eventually came into the occupation of the respondent (a further sub-lessee) in 2012. The respondent occupied nearly 30,000 sq. ft. of space for over seven years without paying any lease rent, maintenance, or electricity charges, prompting the petitioner to disconnect the electricity supply. The Calcutta High Court ordered the petitioner to restore electricity without requiring any payment from the respondent, and the petitioner challenged that order before the Supreme Court.
Decision Breakdown
The Supreme Court set aside the High Court's order, holding that a tenant who has not paid a single rupee for years cannot simply demand restoration of electricity without payment. Without deciding the underlying contractual disputes on merits (which it left for the trial court/arbitral tribunal), the Court worked out an equitable interim arrangement: it computed approximate lease rent, maintenance charges (at a 50% discount since no air-conditioning was provided), and minimum electricity demand charges, arriving at a total of roughly Rs. 3.24 crore. It directed the respondent to pay Rs. 1 crore within a month (after which electricity would be restored) and the balance in three monthly instalments, with ongoing monthly billing and an affidavit of compliance, while leaving the final determination of exact amounts and other claims to the appropriate forum.
Lesson Learnt
A sub-tenant cannot withhold all payments indefinitely and still insist on restoration of a cut-off utility connection: courts will fashion a practical, pay-as-you-go arrangement to balance both sides' interests pending final resolution of the underlying contractual dispute.