The High Court recently passed a significant order in the case of Infinity Infotech Parks Limited against Actual Names concerning the non-payment of lease rent, maintenance charges, and electricity charges. The court directed the petitioner to pay specific amounts for the restoration of electricity, outlining a payment schedule to be followed. Find out more about this case and the court’s decision.
Facts
- Petitioner, Infinity Infotech Parks Limited, filed a petition against the High Court of Calcutta’s order dated 31.07.2019 in C.O. No.541 of 2019.
- Respondent No. 1 has not paid any lease rent, maintenance charges, or electricity charges for the property occupied on the 16th floor of the building.
- The 16th floor, divided into 3 offices, was sub-leased to M/s. Pearl Studios Pvt. Ltd., who further sub-leased to Respondent No. 1 since 01.02.2012.
- Petitioner claims Rs.7,29,240/- as lease rent up to 02.12.2019 from Respondent No. 1.
- Disputes between the petitioner and M/s. Pearl Studios Pvt. Ltd. are subject to arbitration proceedings, not commented on in this judgement.
- An objection raised that the sub-lease to Respondent No. 1 is unregistered and insufficiently stamped, warranting impoundment.
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Analysis
- Petitioner claims that Actual Names has not paid maintenance charges as per the lease deed, which includes a rate of Rs.15 per sq. ft. for the first year with a rebate for the initial two months.
- Actual Names contends that since no air-conditioning is provided, the rate of Rs.15 per sq. ft. is not applicable.
- The court, as an interim measure, directs Actual Names to pay a minimum of Rs.1,10,000 per month for maintenance charges.
- The court calculates minimum demand charges at Rs.1,00,000 per month based on the sanctioned load of 266.43 KVA.
- Actual Names is deemed liable to pay minimum demand charges despite claims of lower rates.
- The court brings attention to bills of Rs.5,33,132 paid by another party, indicating payment should be made by Actual Names.
- Actual Names’ claim of only paying Rs.10,000 for electricity charges is rejected.
- The court sets maintenance charges at Rs.7.50 per sq. ft. due to the absence of air conditioning.
- For the premises of 29,445 sq. ft., the maintenance charges amount to Rs. 2,20,000 per month.
- The petitioner’s claim for minimum demand charges at Rs. 384 per KVA per month is acknowledged.
- The court notes that Actual Names must pay maintenance charges inclusive of taxes for office areas.
- The court finds Actual Names liable to pay lease rent of Rs.7,29,240.
- Actual Names’ argument of only paying for actual electricity consumption is disregarded.
- The lease deed specifies that Actual Names is to bear expenses for repairs, maintenance, and air-conditioning charges based on actual costs.
- The court emphasizes that Actual Names must pay for common services, maintenance, and air-conditioning charges as outlined in the lease deed.
- The respondent did not pay any rent, maintenance, or electricity charges.
- The petitioner disconnected electricity due to non-payment of dues.
- The High Court erred in directing restoration of electricity without ensuring payment.
- No order passed regarding other charges like water charges at this stage.
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Decision
- Petitioner is directed to pay specific amounts for the restoration of electricity as follows: Lease Rent of Rs.7,29,240, Maintenance charges of Rs.2,11,20,000, Electricity charges of Rs.1,05,60,000.
- Petitioner must pay Rs.1,00,00,000 within one month and the rest in three equal instalments.
- Upon payment of Rs.1,00,00,000, electricity shall be restored within 3 days.
- No order for payment of interest has been passed at this stage.
- The liability only for minimum electricity charges from 01.02.2012 to 31.01.2020 is Rs.1,05,60,000.
- Petitioner to raise bills for lease rent, electricity charges, maintenance charges, and other charges by the 10th of each month.
- Chief Executive of Petitioner to file an affidavit within 2 weeks undertaking compliance with the directions.
- In case of violation of conditions, Petitioner can disconnect electricity.
- First bill to be raised on 10 March 2020, to be paid by 20 March 2020.
- Pending applications are disposed of.
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Case Title: INFINITY INFOTECH PARKS LIMITED Vs. SHIVA JUTE MILLS PRIVATE LIMITED THROUGH CHIEF EXECUTIVE (AUTHORISED SIGNATORY) (2020 INSC 152)
Case Number: SLP(C) No.-021341 / 2019
