Question Summary:
Can I use interest money to pay municipality bills?

Question Detail:

The municipality bill is in the name of the landlord and the landlord must pay the bill. The tenant fails to pay his rental to the landlord for an extended period. The landlord then instructs the municipality to cut the supply of water/electricity as he does not have the rental income to cover the account. After the municipality has cut the water/electricity supply, the tenant illegally reconnects the supply via illegal connections. This occurs repeatedly: the landlord instructs the municipality to cut. The tenant reconnects illegally resulting in a high account.
Can the landlord use the interest he has to pay this huge account?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, the tenant is responsible to pay for his water/electricity bills. The landlord should instruct the tenant to pay the bills. If the tenant fails to pay the bills, the landlord should evict the tenant and not allow him to stay there to continue his fraudulent activities.
 If the landlord is caught up in any situation where he is required to pay the bill, that will be a form of oppression on him. The landlord may use interest money to avert such oppression.[1]
And Allah Ta’āla Knows Best                                       
Ismail Desai,
Student Darul Iftaa
Durban, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.