Interim occupation charges and utility payments aligned to contractual rates and actual consumption, while substantive rights remained intact.
The Calcutta HC modified an interim order fixing occupation-related dues below the contractual rates, holding that rent or occupation charges and CAM charges should be paid at least at the contractual monthly rates, without prejudice to the parties' substantive rights. It further held that electricity and AC charges should be assessed on actual consumption rather than as fixed sums, and clarified that the respondent must also discharge applicable statutory liabilities, including GST. The modification operated only on interim monetary obligations and left the substantive claims, including eviction proceedings, unaffected.
Issues: (i) Whether the rent or occupation charges and CAM charges fixed in the impugned order were liable to be enhanced to the contractual rate. (ii) Whether electricity and AC charges were liable to be directed on actual consumption basis, with statutory liabilities to be paid by the respondent.
Issue (i): Whether the rent or occupation charges and CAM charges fixed in the impugned order were liable to be enhanced to the contractual rate.
Analysis: The contractual monthly rate for rent or occupation charges and the CAM charges stood at a higher figure than the amounts directed by the impugned order. The reduced rates were found to be infirm, and the respondent was held to be liable, on an interim basis and without prejudice to the parties' rights and contentions, to pay at least the contractual rates.
Conclusion: The reduced rent or occupation charges and CAM charges were modified and the respondent was directed to pay the contractual rates from March 2024.
Issue (ii): Whether electricity and AC charges were liable to be directed on actual consumption basis, with statutory liabilities to be paid by the respondent.
Analysis: The direction for fixed electricity and AC charges was found to be flawed, since such charges ought to have been linked to actual consumption. The order was also clarified to preserve the respondent's obligation to discharge statutory liabilities, including GST.
Conclusion: The respondent was directed to pay electricity and AC charges on actuals and to discharge the applicable statutory liabilities.
Final Conclusion: The appeal succeeded in part by modifying the impugned order on interim monetary obligations, while leaving the substantive rights of the parties, including the eviction proceedings, unaffected.
Ratio Decidendi: Where an interim order fixes occupation-related dues below the contractual rate without adequate basis, the court may modify the arrangement to align payments with the contractual terms and actual consumption, without affecting the parties' substantive claims.
TaxTMI 
AI Drafter ✕
TaxTMI 
