Contract interpretation limits added words in a lease, but arrears interest may still be recoverable as a public demand.
A lease term cannot be enlarged by implication where the deed, read as a whole, shows that the parties deliberately used different language: because clause (xii) omitted the words "per annum" while clause (xv) used them, interest on arrears of rent under clause (xii) could not be demanded on an annual basis. The court applied expressio unius est exclusio alterius and rejected any added contractual wording to justify a higher demand. The demand was nevertheless recoverable as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914, because the lease contemplated recovery through that mechanism and the statutory definition covered arrears and interest chargeable thereon.
Issues: (i) Whether interest on arrears of rent payable under clause (xii) of the lease deed could be demanded on a per annum basis; (ii) Whether the demand was recoverable as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914.
Issue (i): Whether interest on arrears of rent payable under clause (xii) of the lease deed could be demanded on a per annum basis.
Analysis: The lease deed had to be read as a whole, and effect had to be given to the words actually used by the parties. Clause (xv) expressly used the expression "per annum", while clause (xii) did not. The two clauses dealt with different categories of land and different commercial settings, and the omission of the words "per annum" from clause (xii) was held to be deliberate. The principle of expressio unius est exclusio alterius applied, and the State could not add words to the contract to support a higher demand.
Conclusion: The demand for interest on a per annum basis under clause (xii) was invalid and unsustainable.
Issue (ii): Whether the demand was recoverable as a public demand under the Bihar and Orissa Public Demands Recovery Act, 1914.
Analysis: The lease deed itself contemplated recovery of arrears through the Public Demands Act. A public demand includes arrears or money mentioned in Schedule I and the interest chargeable thereon. Item No. 7 of Schedule I covers demands payable by a person holding an interest in land where such demand is a condition of use and enjoyment of the land. On that basis, interest on rent payable for the lands fell within the statutory definition of public demand.
Conclusion: The demand was a public demand and was recoverable under the Act.
Final Conclusion: The appeal failed, the High Court's setting aside of the enhanced interest demand was sustained, and the recovery proceedings were held maintainable under the Public Demands Act.
Ratio Decidendi: A contractual term cannot be enlarged by implication where the contract, read as a whole, shows that the omission of words was deliberate; and a demand for interest on rent may constitute a recoverable public demand where the governing statute so defines arrears and the lease permits recovery through that mechanism.
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