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Issues:
1. Justification of directing the 2nd Appellant to pay interest on arrears of rent. 2. Validity of interest rates awarded by the High Court. 3. Interpretation of Section 34 of the Code of Civil Procedure regarding the award of interest. Analysis: Issue 1: The primary issue in this appeal was whether the Single Judge of the Madras High Court was correct in directing the 2nd Appellant to pay interest on the arrears of rent. The dispute arose from a tenancy agreement for non-residential purposes, where the tenant vacated the premises but was in arrears of rent. The landlady filed a suit for recovery of rent, and the trial court passed a decree in her favor. Issue 2: The High Court modified the trial court's decree by directing the tenant to pay interest at different rates for specific periods. The Supreme Court, upon review, found that the High Court's award of interest for the period from January 20, 2000, to July 20, 2005, was not justified. The Court emphasized that interest should be awarded based on equitable considerations and not as a matter of course. The Court noted that the landlady's delay in re-presenting the plaint after it was returned for defects did not warrant interest for that period. Issue 3: The Court delved into the legal framework provided by Section 34 of the Code of Civil Procedure, which empowers courts to award interest from the date of the suit to the date of the decree and from the date of the decree to the date of payment. The Court clarified that pre-suit interest is not covered under this provision and typically depends on contractual agreements, statutory provisions, or mercantile usage. In this case, the Court concluded that the landlady was not entitled to interest for the period when the plaint was not re-presented promptly. In conclusion, the Supreme Court partially allowed the appeal, setting aside the High Court's direction for interest on rent arrears for the period of delay in re-presenting the plaint. The Court upheld the rest of the High Court's decree, emphasizing the importance of equitable considerations in awarding interest and interpreting the provisions of the Code of Civil Procedure.
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