The main legal point established in the judgment is the arbitrariness and unjust treatment of landlords under S. 14 of the Karnataka Rent Control Act, leading to its declaration as unconstitutional under Art. 14 of the Constitution.

( 1 ) THESE two writ petitions filed challenging the constitutional validity of S. 14 (6) and S. 14 of the Karnataka Rent Control Act, 1961 (hereinafter called the 'act'), are consolidated for the purpose of disposal by a common order.

( 2 ) ). In W. P. No. 9499/88 the constitutional validity of S. 14 (6) of the Act is challenged on the ground that the provision is arbitrary, and has, in any event, after a long lapse of time, become unrelated to the realities of life and cannot be sustained. In W. P. No. 22249/90 the validity of S. 14 of the Act is challenged on the same ground that the determination of the fair rent in relation to a situation existing as on 1947, has by lapse of time, become arbitrary and is productive of negative income to the landlord.

( 3 ) SECTION 14 of the Act reads as follows :section 14 : Fixation of fair rent etc. :- (1) The landlord or tenant of any building, other than a building in respect of which the fair rent has been fixed either before or after the coming into operation of this Act, may make an application to the controller for fixing the fair rent of the building. (2) On receipt of an application under sub-section (1), the Controller shall, after holding such inquiry as he thinks fit, fix the fair rent for such building. On fixing the fair rent for any building part of which has been lawfully sub-let, the Controller may also fix the fair rent of the part sub-let. (3) In fixing the fair rent under this section the Controller shall have due regard- (a) to the prevailing rates of rent in the locality for the same or similar accommodation in similar circumstances during the twelve months prior to the first day of April, 1947; (b) to the rental value as entered in the property tax assessment book of the local authority concerned relating to the period mentioned in clause (a); (c) to the circumstances of the case, including any amount paid by the tenant by way of premium or any other like sum in addition to rent after the first day of April, 1947. (4) In fixing the fair rent of a residential building the Controller may allow- (i) if the rate of rent or rental value referred to in sub-section (3) does not exceed fifty rupees per mensem, an increase not exceeding twenty-five per cent on such rate or rental value; (ii) if the rate of rent or rental value exceeds fifty rupees per mensem, an increase not exceeding fifty per cent of such rate or rental value. Explanation: For purposes of this section 'residental building' includes building let out for the purpose of a public hospital, an educational institution, a public library, reading room or orphanage. (5) In fixing the fair rent of a non-residential building, the Controller may allow- (i) if the rate of rent or rental value referred to in sub-section (3), does not exceed fifty rupees, an increase not exceeding fifty per cent of such rate or rental value; (ii) if the rate of rent or rental value exceeds fifty rupees per mensem, an increase not exceeding one hundred per cent of such rate of rental value. (6) In fixing the fair rent of a building which has been constructed after the first day of April, 1947, the Controller may take into consideration the rental value of the building as entered in the property tax assessment book of the local authority for the year in which the building was constructed :provided that where no such records are available, the Controller may fix the fair rent calculated on the basis of six per cent per annum of the aggregate amount of the reasonable cost of construction and the market price of the land comprised in the building on the date of the commencement of the construction. (7) In fixing the fair rent of any building under this section, the Controller shall fix the fair rent thereof in an unfurnished state and may also determine an additional charge to be payable on account of any fittings or furniture supplied by the landlord. (8) In fixing the fair rent of any building under this section,