Rent includes all charges paid by tenant: Calcutta HC

Rent includes the payment made towards using the rented property along with the area attached to it along with furnishing, electrical installations and other amenities, says HC.  

The term rent includes all charges a tenant pays to his landlord as agreed upon in the rent agreement, the Calcutta High Court has ruled. In an order passed in December 2022, the high court said that rent not only includes the payment made towards using the rented property along with the area attached to it but also furnishing, electrical installations and other amenities.

The observation by the HC is in line by various orders passed by Indian courts, including a landmark verdict by the apex court in 1956. While giving its judgment in the Karnani Properties Ltd versus Augustin case on November 9, 1956, the Supreme Court had ruled the term rent  was comprehensive enough to include all payment agreed by the tenant to be paid to his landlord for the use and occupation not only of the building and its appurtenances but also of furnishings, electric installations and other amenities to be provided by and at the cost of the land-lord

Giving its verdict in the TE Thomson & Company Limited versus Rajshri Productions Private Ltd case, the Calcutta HC considered commercial surcharge and municipal taxes as part of the rent.

The HC was hearing an eviction petition filed under Chapter XIIIA of the Original Side Rules. The property in question was rented out for commercial purposes. The petitioner sought for recovery the suit property and mesne profits under the Transfer of Property Act, 1882. The court said that as the last rent paid was in the excess of Rs 10,000, the matter was beyond the purview of the West Bengal Premises Tenancy Act, 1997, and the commercial agreement was governed under the provisions of the Transfer of Property Act.

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