Judgment

SHAH, AG. C. J.: The Legislature of the State of Madras enacted the Madras Buildings (Lease and Rent Control) Act, 1960. Section 4 of the Act (insofar as it is relevant) provides:

"(1) The Controller shall, on application by the tenant or the landlord of a building and after holding such inquiry as the Controller thinks fit fix the fair rent for such building in accordance with the principles set out in sub-section (2) or in sub-section (3), as the case may be, and such other principles as may be prescribed.

(2) * * * *

(3) (a) The fair rent for any non-residential building shall be at nine per cent, gross return per annum on the total cost of such building.

(b) The total cost referred in clause (a) shall consist of-

(i) the cost of construction as calculated according to such rates for such classes of non-residential building as may be prescribed less the depreciation at such rates as may be prescribed:

(ii) the market value of that portion of the site on which the non-residential building is constructed;

and shall include such allowances as may be made for considerations of locality in which the non-residential building is situated, features of architectural interest, accessibility to market, nearness to the railway station and such other amenities as may be prescribed and of the purpose for which the non-residential building is used.*(?)

Provided that such allowances shall not exceed twenty-five per cent of the cost of construction as calculated in the manner specified in sub-clause (i)."

Section 34 confers upon the State Government power to make rules to carry out the purposes of the Act. Pursuant to the authority conferred by the Act, the State Government has published rules. Rules 11 to 14 deal with classification of non-residential buildings, calculation of the cost of construction of the different classes of non-residential buildings, allowance for amenities in respect of non-residential buildings and calculation of depreciation of non-residential buildings. Rule 11 provides:

"R. 11 - "(1) Non-residential buildings shall be classified into two categories, namely:-

(i) Factories and godowns; and

(ii) other non-residential buildings".

"(2) The non-residential buildings belonging to the category specified in sub-rule (1) (ii) shall be classified into four different classes according to the classifications laid down in rule 8 in respect of residential buildings".

R. 12 - "(1) The cost of the construction of non-residential buildings belonging to the category specified in rule 11 (1) (i) shall be calculated at the rate of 62 naye Paise per cubic foot of the cubical content of the building.

(2) The cost of construction of the different classes of non-residential buildings belonging to the category specified in rule 11 (1) (ii) shall be calculated at the rates specified below:

Class I - Ground floor - Rs. 16 per square foot of plinth area.

First floor - Rs. 13 per square foot of plinth area.

Second floor - Rs. 12 per square foot of plinth area.

Class II - Ground floor - Rs. 13 per square foot of plinth area.

First floor - Rs. 10 per square foot of plinth area.

Second floor - Rs. 9 per square foot of plinth area.

Class III - Single storeyed - Rs. 10 per square foot of plinth area.

Class IV - Single storeyed - Rs. 5 per square foot of plinth area.

Note - In case of every additional floor higher up, the rate per square foot shall be one rupee less than the rate per square foot for the floor immediately below."

R. 13 - "When calculating the cost of construction of non-residential buildings, allowances shall be made for the following amenities in addition to those specified in Section 4 (3) -

(1) air-conditioning;

(2) lifts;

(3) electric fans;

(4) tube-lights;

(5) number of electric points;

(6) fans;

(7) ventilators;

(8) electric pump for water;

(9) flush-outs;

(10) fixed wash-basins;

(11) stair-cases;

(12) out-houses;

(13) cattle-sheds;

(14) garden or vacant ground appurtenant to the building enjoyed by the tenant; and

(15) usufructs of trees, if any, enjoyed b