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2024 Supreme(Bom) 689

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Britannia Industries Ltd. - Applicant
Versus
Maya Sunil Alagh - Respondent
Civil Revision Application No. 372 Of 2019 With Civil Revision Application No. 373 Of 2019
Decided On : 08-08-2024

Advocates Appeared:
For the Applicant :Mr. Navroz Seervai, senior advocate with Mr. Jay Zaveri and Ms. Tarleen Saini i/b Crawford Bayley & Co.
For the Respondent:Mr. Surel Shah, Senior advocate with Ms. Pooja Tukrel i/by. Mr. Raj Baid.

The Maharashtra Rent Control Act does not allow fixation of standard rent for premises let after October 1, 1987; hence disputes in these instances are adjudicated based on Section 8's provisions allowing court intervention.

Headnote:(A) Maharashtra Rent Control Act, 1999 - Section 7(14) and Section 8 - Rent fixation - The court examined the validity of standard rent fixation for premises let after 1 October 1987, determining that the Act does not confer authority to fix standard rent for such tenancies and concluded the standard rent at Rs. 805/- with a 4% annual increase must be upheld. (Paras 1, 2, 7, 116, 118)

(B) Jurisdiction - Standard rent cannot be fixed for tenancies initiated post-1 October 1987, per statutory provisions but the court maintains jurisdiction to resolve disputes regarding rent increases under Section 8. (Paras 64, 82, 116)

(C) Legislative Intent - The court noted the intention behind the MRC Act to exempt tenancies after the cutoff date from statutory rent regulation, as per legislative reports. (Paras 28, 60, 110)

(D)

Findings of Court:
The standard rent determined by the Appellate Bench was legally sound and reaffirmed the need for a fair approach in rent arbitration. (Paras 32, 96) (E)

Result: Revision Applications dismissed confirming that standard rent is Rs. 805/- per month with subsequent annual increases. (Paras 117, 118)

Table of Content
1. standard rent determination process outlined. (Para 1 , 2 , 3)
2. background facts of tenancy and issues presented. (Para 4 , 5 , 6 , 7)
3. arguments regarding jurisdiction of small causes court. (Para 12 , 13 , 14)
4. judicial emphasis on balance between tenant protection and landlord rights. (Para 38 , 40)
5. discussion on legislative intent behind rent control act. (Para 39)
6. legislative history and its relevance to standard rent determination. (Para 41 , 42)
7. historical context of rent control legislation in maharashtra. (Para 44 , 45)
8. court acknowledges the ability to address disputes over standard rent despite legislative omission post-1987. (Para 82 , 117)
9. final decision on standard rent affirmed with clear direction. (Para 103 , 107)

JUDGMENT :

(SANDEEP V. MARNE, J.)

A. INTRODUCTION

1) India’s biscuit giant Britania(Britannia Industries Ltd., Revision Applicant in both Revision Petitions), is piqued by fixation of standard rent of a swanky apartment in IL Pallazo building located at upmarket area of Malabar Hill in Mumbai City at Rs. 805, when, according to Britania, the apartment can easily fetch monthly market rent of at least Rs. 6,00,000/-. Britania is engaged in a fierce battle over fixation of rent with its tenant Maya Alagh(Maya Sunil Alagh, Respondent in both Revision Applications), a television and film actress and wife of Britania’s former Managing Director. Britania propounds a case, which possibly has not been put forth by any landlord in State of Maharashtra yet, that standard rent cannot be fixed by a Court in respect of premises let after 1 October 1987 and that therefore Britania is justified in demanding market rent in respect of the flat let to its tenant.

2) Whether standard rent can be fixed under the provisions of Maharashtra Rent Control Act, 1999 in respect of premises let after 1st October 1987 is the issue that this Court is tasked upon to decide in these two Revision Applications. It is Revision Applicant’s contention that the Legislature has consciously omitted provision for fixation of standard rent in respect of premises let after 1st October 1987 considering the judgment of the Apex Court in Malpe Vishwanath Acharya : (Malpe Vishwanath Acharya and others Versus. State of Maharashtra and Anr (1998) 2 SCC 1) and that therefore Small Causes Court does not have jurisdiction to entertain application for fixation of standard rent in respect of such premises. If the main issue is to be answered in the affirmative, the next issue is about manner of fixation of standard rent in respect of premises let during gap period of 1 October 1987 and 30 March 2000 i.e. the date before coming inti force of Maharashtra Rent Control Act 1999.

B. THE CHALLENGE

3) These two Revision Applications are filed invoking revisionary jurisdiction of this Court under Section 115 of the Code of Civil Procedure, 1908 challenging the common judgment and order of the Appellate Bench of Small Causes Court dated 21 February 2019 dismissing Revision Application No. 312 of 2017 filed by the Applicant-Landlord and partly allowing the Revision Application No. 62 of 2018 filed by the Respondent-Tenant. The Appellate Bench has set aside the direction Nos. (2) and (3) of the judgment and order of the Small Causes Court, Mumbai in R.A.N. Application No. 75/SR of 2005 dated 3 October 2017. The Small Causes Court had allowed the R.A.N. Application No.75/SR of 2005 filed by Respondent by fixing standard rent of the premises at Rs. 10,880/- per month alongwith 4% annual increase and all the leviable charges including taxes and society charge on the application premises. The Appellate Bench has instead directed that standard rent in respect of application premises would be basic rent plus society maintenance charges and lease rent as agreed between the parties, while letting out the application premises to the Respondent. In short, the Appellate Bench has fixed Rs. 805/- as the standard rent in respect of the suit premises. A

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