1

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  

clarification of the order passed by this Court on 7th 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.  

2

In the order dated 7th 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  

intention of  the  Court  that  accrual  of  interest  would cease  on 5th  

October,  2006,  no  matter  when  the  principal  amount  was  paid.  

Ultimately, the amounts were deposited on 5th October, 2006, which  

means that interest on the amounts are still payable from the month  

of April, 2000 till 5th October, 2006, when the deposits were made.  

Mr. Ranjit Kumar, learned senior counsel appearing in support of

3

the  application  submitted  that  the  subsequent  period  from  5th  

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

had been directed to be made.  In fact, in our order of 7th 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  

that our order of 7th 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,

4

it is  quiet obvious  that the amounts already deposited would be  

sufficient to cover any amounts that may be payable as interest after  

5th 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.