HIGH COURT OF CALCUTTA
K. C. Chunder
RAMRICHPAL JHUNJHUNWALLA - Appellant
Versus
JAGADISH PROSAD, LALOO PROSAD - Respondent
Civil Rule 1434 Of 1952
Decided On : JULY 25, 1952
RENT CONTROL ACT - SECTION 9 (1) (F) - APPLICABILITY - PREMISES - DEFINITION - CONSTRUCTION - ENTIRE BUILDING OR PART OF BUILDING - SEPARATE LETTINGS - PROVISO - INTERPRETATION.
Fact of the Case:
The landlord filed a revision petition against the appellate judgment of the Small Causes Court, Calcutta, which reversed the order of the Rent Controller and directed the fixation of rent under Section 9 (1) (f) of the Rent Control Act. The landlord contended that Section 9 (1) (f) did not apply to the case.
Finding of the Court:
The court held that Section 9 (1) (f) of the Rent Control Act applies to the case of fixation of rent of all buildings constructed wholly or substantially after 31-12-1949. The court further held that the proviso to Section 9 (1) (f) does not apply to the case of letting out of an entire building newly constructed as one tenancy or to the case of letting out of separate parts of an entire building which is still under construction.
Issues: Whether Section 9 (1) (f) of the Rent Control Act applies to the case of fixation of rent of all buildings constructed wholly or substantially after 31-12-1949.
Ratio Decidendi: The court interpreted the definition of 'premises' in Section 2 (8) of the Rent Control Act and held that it includes the entire building or part of a building or any hut or part of a hut let separately. The court further held that the main body of Section 9 (1) (f) will apply to the case of letting out of an entire building newly constructed as one tenancy or to the case of letting out of separate parts of an entire building which is still under construction, but the proviso to Section 9 (1) (f) will not apply to such cases.
Final Decision: The court discharged the rules with costs.
( 1 ) THESE are two petitions in revision by a landlord against two appellate judgments of the Judge of the Sixth Bench of the Court of Small Causes Calcutta, reversing in appeal an order of the First Additional Rent Controller.
( 2 ) AN application was filed before the Rent Controller by the tenant for fixation of standard rent. The premises in question, it is admitted by both parties, form part of a larger building not yet entirely constructed and those premises and the portion of the building up to now constructed were all constructed after 31-12-1949. The Rent Controller directed fixation of rent under Sections 9 (1) (e) or 9 (1) (g ). As I have already pointed out in another decision, two sub-clauses of the same section cannot be applied to the same proceeding In the proceedings it is not clear whether he actually applied Clause (e) or Clause (g) of Section 9 (1 ).
( 3 ) BOTH the landlord and tenant appealed. There were two appeals. Hence two revisions. In both the appeals the appellate Court directed that the fixation must be under Section 9 (1) (f) and remanded the case for the purpose of such fixation.
( 4 ) THE point now raised by the landlord in both the revision cases is that Section 9 (1) (f) does not apply.
( 5 ) SECTION 9 (1) (f) has to be applied in the case of fixation of rent of all buildings constructed wholly or substantially after 31-12-1949. The actually completed work of construction may be at the time of either the entire building or of a part of the building. Again the word used in Section 9 (1) (f) is "premises". Premises has been defined in Section 2 (8) as being either the whole building or part of a building or any hut or part of a hut let separately and including certain other things mentioned therein. The main point to be noticed in connection with Section 2 (8) is the separate letting. Whatever forms the subject-matter of one tenancy or letting is the premises and this may be the entire building or it may be only a part of it. If it is a separate tenancy or letting of a part of a building, it will still be premises according to the definition.
( 6 ) REMEMBERING this definition of the word 'premises' in Section 2 (8), we get three different cases of actually completed and letting out under that section. The first case is when the entire building has been completely constructed and is let out wholly to one person. In such a case there can be no question that Section 9 (1) (f) will apply and the proviso has no application. Section 9 (1) (f) runs thus. "where any premises have been wholly or are substantially constructed after 31-12-1949, by fixing the standard rent payable for one year at a rate equal to six per centum of the actual cost of construction as determined by the Controller added to the market price as on 31-12-1949, of the land included in the premises or to the market price of the said land as on the date of completion of the construction, whichever is less: provided that where the premises whose standard rent is to be fixed form a part of the construction the standard shall be fixed at a rate which is fairly proportionate to the total standard rent of the entire construction. "
( 7 ) IT is clear that the main body of the sub-clause will apply, and the proviso cannot apply in the case of letting out of an entire building newly constructed as one tenancy.
( 8 ) THE second case will be where the construction of the entire building has been completed but it has been let out separately in parts, to separate tenants that is there are separate tenancies, or as it is sometimes called "several lettings. " Then also it is clear that the whole of Section 9 (1) (f) will have to be applied namely the main sub-clause will apply as also the proviso.
( 9 ) THE third class of cases is like the present case, where proof has been given that the entire construction when completed will be a six storied building, the plinth is constructed for that purpose and the sanctioned Municip
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