UNION BANK OF INDIA Vs. MADHAVA RAO BROS

JUDGEMENT

(1.) The tenant-Bank is the appellant which has been directed to pay the rent for the premises in question at the rate of Rs. 1.25 Ps. per Sq.Ft. till the disposal of the Appeal AS 187/1995, vide order in CMP No. 2988/1997.

(2.) Looking to the question involved in this appeal and with the consent of the parties to it, this appeal has been heard on merits and is being disposed of finally at the admission stage.

(3.) The facts are jejune. The respondent filed a suit against the appellant- Bank and its two Officers for recovery of arrears of rent amounting to Rs. 38,139.90 in O.S.No. 51/1989 on the file of the Subordinate Judge, Mahabubnagar, alleging that the appellant-Bank had agreed to enhance the initial monthly rent of Rs. 595/- after a period of five years from the date it was inducted as a tenant in the premises in question, but it did not pay the agreed enhanced rent at the rate of Rs. 1.25 ps. per Sq. Ft. with effect from 1-1-1985 as also the agreed house tax which comes to Rs. 1,500/- per month. The defendant unsuccessfully resisted the suit. The Subordinate Judge, Mahabubnagar, on 5-9-1994 passed a decree for the amount of Rs.32,580/- with interest at the rate of 18% per annum from the date of the suit, that is 25-4-1991, till the date of the decree, that is 5-9-1994, and awarded interest at the rate of 6% per annum from the date of the decree till realisation of the decretal amount and also ordered the appellant-Bank to pay proportionate costs.