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
| 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
Malpe Vishwanath Acharya and others Versus. State of Maharashtra and Anr (1998) 2 SCC 1)
Leelabai Gajanan Pansare and others Versus. Oriental Insurance Company Limited and others
Falcon Tyres Ltd. Versus. State of Karnataka and Ors.
Commissioner of Sales Tax, State of Gujarat Versus. M/s. Union Medical Agency
Bhasker and Another Versus. Ayodhya Jewellers
Kalpana Mehta and Others Versus. Union of India and Others
Feroze N. Dotivala Versus. P.M. Wadhwani and Others
Commissioner of Customs (Import), Mumbai Versus. Dilip Kumar and Company and Others
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 all....
The court reaffirmed that a landlord's contractual rent rate is valid unless proven excessive, emphasizing the ineffectiveness of arbitrary rent reductions in commercial leases under the Bombay Rent ....
The court upheld that standard rent, defined by agreed terms, must guide rateable value assessments and cannot exceed set limits until judicial review occurs.
The power to direct the tenant to deposit or pay rent can be exercised only in a suit for recovery of rent between the landlord and the tenant.
While making fixation rent of a building procedure prescribed has to be followed.
The court established that once eviction proceedings are dismissed, landlords can claim contractual rents despite interim rates being set.
when a suit is filed for eviction of a tenant for being a defaulter in payment of rent, can the tenant thereafter file an application for fixation of rent.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.