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2009(6) Supreme 121
SUPREME COURT OF INDIA
R.V. Raveendran & J.M. Pachal, JJ.
National Sample Survey Organisation & Anr. — Appellants
versus
Champa Properties Ltd. & Anr. — Respondents
Civil Appeal No. 4153 of 2009
(Arising out of SLP(C) No. 1234 of 2007)
Decided on : 07-07-2009
(1975) 2 SCC 436 – Relied upon
(b) Tenancy Laws – Assessment or determination of rent by the Hiring Committee is an expert advice to the lessee and nothing more – Determination of rent by the Hiring Committee is not statutory or contractually binding on the parties – In absence of an agreement to abide by the fixation of rent by the Hiring Committee, neither party can insist or require the other party to abide by the rent so assessed. (Para 16)
A.P.O. No.243-244/1996 – Distinguished
Facts of the case:
1. The appellant was the tenant under the respondent in respect of a building constructed in 1925 with a carpet area of 16157 sq. ft.
2. The premises was taken on lease on 1.6.1972 on a monthly rent of Rs. 13,733/- (at the rate of Rs 0.85 per sq. ft.). On a request by respondent for increase in rent, the appellant made a reference to the Hiring Committee for reassessment on 1.4.1986. Based on its recommendation, the rent was increased to Rs.74,645/- per month (that is Rs.4.62 per sq. ft.) with retrospective effect from 3.8.1983 and the increase was communicated as per the appellant’s letter dated 27.7.1988.
3. The very next day (28.7.1988), the respondent wrote to the appellant again requesting for reassessment of the rent for the period commencing from 3.8.1988 by referring the matter to the Hiring Committee. Acting on the said request, the appellant again made a request to the Hiring Committee, by letter dated 25.10.1988 for re-assessment of rent.
4. The Hiring Committee reassessed and recommended a rent of Rs.13.10 per sq.ft. of carpet area (inclusive of all municipal taxes) with effect from 3.8.1988. The appellant found the increase suggested by the Hiring Committee to be unreasonably high and therefore requested for reviewing the reassessment.
5. As the premises was old and lacking in amenities and as the respondent was not interested in carrying out repairs/improvements in view of its intention to demolish and reconstruct the building, and as the appellant was unwilling to pay a higher rent, the appellant, by its letter dated 16.3.1992, notified the respondent of its intention to vacate the premises. In pursuance of it, the appellant vacated and delivered vacant possession of the premises to the respondent on 25.6.1992.
6. The Hiring Committee refused to review its decision.
7. The respondent filed W.P. High Court.
8. A Learned Single Judge, by order dated 22.8.2002, directed the appellant to pay the rent in regard to the period 3.8.1988 to 25.6.1992, to the respondent in accordance with the recommendations of the Hiring Committee, within 6 weeks with interest at the rate of 8.33% from 1998 till date of payment and in default to make payment within 6 weeks, pay interest at 10% per annum.
9. The appeal by the appellant disposed of by Division Bench.
Finding of the Court:
The respondent is not entitled to the reliefs sought in the writ petition.
Result : Appeal allowed.
JUDGMENT
R.V. Raveendran, J.—
1. Leave granted. Heard the learned counsel.
2. The National Sample Survey Organization, the appellant herein was the tenant under the first respondent (for short the ‘respondent’) in respect of premises No.25A, Shakespeare Sarani, Calcutta, a building constructed in 1925 with a carpet area of 16157 sq. ft. The premises was taken on lease on 1.6.1972 on a monthly rent of Rs. 13,733/- (at the rate of Rs 0.85 per sq. ft.). On a request by respondent for increase in rent, the appellant made a reference to the Hiring Committee for reassessment on 1.4.1986. Based on its recommendation, the rent was increased to Rs.74,645/- per month (that is Rs.4.62 per sq. ft.) with retrospective effect from 3.8.1983 and the increase was communicated as per the appellant’s letter dated 27.7.1988. The very next day (28.7.1988), the respondent wrote to the appellant again requesting for reassessment of the rent for the period commencing from 3.8.1988 (that is, from the date of expiry of five years from the date of last increment) by referring the matter to the Hiring Committee. Acting on the said request, the appellant again made a request to the Hiring Committee, by letter dated 25.10.1988 for re-assessment of rent.
3. The Hiring Committee (consisting of three members - (i) Superintending Engineer, Calcutta Central Circle No.II, CPWD, (ii) the Estate Manager, and (iii) Surveyor of Works cum Executive Engineer, Calcutta Central Division No.IV CPWD) by its proceedings dated 6.6.1989, reassessed and recommended a rent of Rs.13.10 per sq.ft. of carpet area (inclusive of all municipal taxes) with effect from 3.8.1988. The appellant found the increase suggested by the Hiring Committee was unreasonably high and therefore initiated correspondence with the Hiring Committee for reviewing the reassessment. When the matter was pending, the respondent, by letter dated 27.6.1989, requested the appellant to fix the rent at Rs. 19/- per sq.ft. plus municipal taxes.
4. In the meanwhile, the respondent landlord entered into lease agreements every year, with the appellant on 11.4.1989, 10.5.1990 and 29.4.1991 each for a duration of one year, on a monthly rent of Rs.74,645.34.
5. As the premises was old and lacking in amenities and as the respondent was not interested in carrying out repairs/improvements in view of its intention to demolish and reconstruct the building, and as the appellant was unwilling to pay a higher rent, the appellant, by its letter dated 16.3.1992, notified the respondent of its intention to vacate the premises. In pursuance of it, the appellant vacated and delivered vacant possession of the premises to the respondent on 25.6.1992. The respondent however went on representing for revision of rent with effect from 3.8.1988. The appellant was not agreeable for the rent recommended by the Hiring Committee, and wrote to the Hiring Committee on 22.5.1992 and 5.11.1993 to review the reassessment of rent, and furnished several documents in support of its request. The Hiring Committee sent a reply dated 4.2.1994 stating that its recommendation in regard to rent will not be reviewed.
6. When matters stood thus, the respondent filed W.P. No.1675/1995 in the Calcutta High Court for the following reliefs : (i) a direction to respondents to reassess the rent from 3.8.1988 in accordance with the guidelines contained in the Government order dated 13.6.1985 and related orders/circulars; and (ii) to give effect to the decision of the Hiring Committee recommending Rs.13.10 per sq. ft. with effect from 3.8.1988 by way of interim reassessment of rent subject to final assessment.
7. In the said proceedings, by interim order dated 6.2.1998 and 24.2.1998, the High Court directed the appellant to pay Rs.5.08 (that is the rent of Rs.4.62 plus 10% increase) for the period 3.8.1988 to 25.6.1992. The appellant paid the rent accordingly. The writ petition was allowed by a Learned Single Judge, by order dated 22.8.2002, directing the appellant t
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