The Commissioner was bound to fix the fair rent as on the date of the application and should not have taken into account subsequent events during the pendency of the litigation to fix the fair rent.

1. The Food Corporation of India-appellant herein, is the tenant, whereas M/s Shri Bhagwati Hosiery Private Limited is the landlord, which owns godown and office block in the town of Bhagalpur. Same was given on rent to the tenant for a period of five years by agreement dated 6th of September, 1979 at the monthly rental calculated on the basis of 50 paise per sq. ft. After the expiry of the aforesaid period of tenancy, the tenant filed application before the House Controller under Section 5 of the Bihar Buildings (Lease, Rent & Eviction) Control Act, 1982, hereinafter referred to as the Act, for determination of the fair rent. The House Controller called for a report from the Executive Magistrate. The Executive Magistrate submitted his report, inter alia, stating that the rate though is Rs. 2/- per sq.ft., but in his opinion, Rs. 1.60/- shall be the fair rent. The House Controller, by order dated 16th March, 1988, fixed the fair rent at the rate of Rs. 1.15/- per sq. ft. The tenant, aggrieved by the same, preferred appeal. The appellate Court, by order dated 14.4.1994 dismissed the appeal. The tenant then preferred revision. The revisional authority, by order dated 19.6.1995, reduced the fair rent at the rate of Rs. 0.62 ½ per sq.ft. on the premise that the rent cannot be enhanced more than 25 per cent of the existing rent. The landlord, aggrieved by the same, preferred writ application before this Court, which was registered as C.W.J.C. No. 4568 of 1995 (M/s Shri Bhagwati Hosiery Pvt. Ltd. vs. State of Bihar & Ors.). A Division Bench of this Court, by order dated 14th May, 1997, set aside the order of the Commissioner and remitted the matter back for reconsideration of the revision application in the light of the order of a Division Bench of this court in the case of Saraswati Devi & Ors. vs. Commissioner of Bhagalpur Division, 1996(1) PLJR 924. The relevant portion of the aforesaid order reads as follows:

"4. In these circumstances, we allow this writ petition to the extent that we set aside the impugned order passed by the Commissioner and remit the matter back to him to consider the revision in the light of the law declared by the Division Bench of this Court in Saraswati Devis case (supra). It will be open to the parties to urge all contentions before him apart from the question as to the extent to which the enhancement in rent can be allowed. We also direct respondent no. 7 to deposit the rent upto date at the rate determined by the Rent Controller under the Act within a period of two months from today. If any amount has been deposited to respondent no. 2 by way of rent pending the revision before the Commissioner, the petitioner will be entitled to withdraw the case."

2. The tenant, aggrieved by the same, preferred Special Leave to Appeal No.12902 of 1997 (Food Corporation of India vs. M/s Shri Bhagwati Hosiery Pvt. Ltd.) before the Supreme Court. The Supreme Court, by order dated 30.7.1997, dismissed the Special Leave Petition. While doing so, it observed as follows:

"We are unable to appreciate such an SLP being filed by a public sector undertaking as to agitate a point which on the facts of this case should not have been a matter of serious concern for a public sector undertaking. It would not be surprising if the expense incurred by the public sector undertaking in this litigation is worth the relief which is sought. Even otherwise, the decision does appear to be fair at least factually."

3. The Commissioner, in the light of the order of the Division Bench referred to above, decided the revision application and fixed the fair rent as follows:

"The House Controller had fixed fair rent @ Rs. 1.15 per sq.ft. w.e.f. 11.9.87 to 22.11.91 from 23.11.91 the enhancement of rent was to be increased by 25% for every three years. Thus following this formula the rate of fair rent fixed after 25% increase after every three years is as follows: 23.11.91 to 22.11.94 @ Rs. 1.44 per sq.ft.

23.11.94 to 22.11.97 @ Rs.1.30 per s