NANCHAPPA GOUNDAN Vs. VATASARI ITTICHATHARA MANNADIAR

JUDGEMENT

(1.) This is a Letters Patent Appeal from the judgment of Mr. Justice Phillips. The question raised is whether the defendants are liable to pay interest on the rent due by them under a written lease. The learned Judge has held that the Interest Act (XXXlI of 1839) is not applicable but that interest is nevertheless payable on general equitable grounds. The case has been argued fully on both sides and numerous authorities have been cited. To my mind, the case presents no difficulty, although the state of the law is not satisfactory, and I shall briefly deal with the points raised without burdening my judgment with needless citation of cases.

(2.) The effect of the lease deed is thus stated in the judgment of Mr. Justice Phillips: It is clear from the terms of the document that the payment of rent to the plaintiff is to commence as soon as the lands are assessed. The lease is an improvement lease under which the lands are to be gradually brought under cultivation and until they are so brought under cultivation nothing would be payable either to the Government or to the jenmi.

(3.) Again, the learned Judge refers to a clause in the lease, Under which the tenant agrees to pay, from the year in which Gov-ernment revenue is paid, rent at the rate of three-fourth of a para for one para seed area.