Chinnu vs. The Principal Secretary TO Govt

Facts

The petitioners, lessees of shops from the Tamil Nadu Housing Board (TNHB), filed writ petitions seeking to prevent eviction until their appeals against rent demands were concluded. They also sought details of rent arrears and tariffs to settle their dues. The Court had previously granted an interim order, directing petitioners to deposit 25% of the demanded amount, and injuncted TNHB from eviction. The petitioners complied with this interim order. The TNHB subsequently provided details of the accumulated rent arrears. The petitioners acknowledged the arrears and requested time to pay them in installments, citing their reliance on the shops for livelihood. The TNHB had calculated significant arrears, including penal interest from 1998.

Held

The Court held that there was no dispute regarding the necessity for the petitioners to clear the accumulated rent arrears as calculated by the Housing Board. The pending appeals before the first respondent would not absolve the petitioners of their legal obligation to pay these arrears to continue their occupation. The Court acknowledged the petitioners' plea for time to pay, recognizing their reliance on the shops for livelihood, but also emphasized the need to safeguard the Housing Board's rights. Regarding the rent fixation and the alleged failure of officials to demand rent regularly, the Court held that the rent fixation was not the subject of these writ petitions and that petitioners were duty-bound to pay rent monthly, not waiting for demands. The Court also held that it could not interfere with the penal interest as it formed part of the agreement, but allowed petitioners to make a representation for modification or waiver, which the Housing Board was directed to consider. The Court directed the petitioners to pay the total rental arrears in three equal monthly installments, starting from December 2023. It also ordered the petitioners to make a representation for modification/waiver of penal interest within one week, and the Housing Board to decide on it within four weeks. If penal interest is modified, GST would be calculated on it from June 2007, and the amount paid within twelve weeks of communication. Failure to comply would allow the Housing Board to proceed with eviction.

Key Issues

1. Whether the Court should direct the respondents to provide details of rent arrears and tariffs to the petitioners to enable them to ascertain and settle their dues? (Mixed question of law and fact, concerning the right to information and contractual obligations). 2. Whether the petitioners should be granted time to pay the accumulated rent arrears in installments, considering their financial dependence on the shops? (Question of fact and equity). 3. Whether the penal interest charged by the Housing Board on the rent arrears is liable for modification or waiver? (Question of law and fact, concerning contractual terms and equitable relief). Petitioner's arguments: The petitioners argued that they needed clear details of rent and tariffs to settle dues. They also sought time to pay arrears in installments, emphasizing their livelihood depended on the shops. They further contended that the TNHB officials' delay in demanding rent contributed to the accumulation of arrears and sought modification or waiver of penal interest. They also raised a point regarding the nature of the lease in one specific case (W.P.(MD).No.15185 of 2020), disputing the claim of sub-lease. Revenue/State's arguments: The respondents (TNHB) presented the calculated arrears and sought to recover the dues. They did not explicitly argue against providing details but focused on the necessity of clearing arrears for continued occupation. They also did not record arguments regarding the modification or waiver of penal interest, but the court addressed it based on the petitioners' plea.