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2006 Supreme(Cal) 483

High Court Of Calcutta
Bhaskar Bhattacharya And Arun Kumar Bhattacharya, JJ.
FOOD CORPORATION OF INDIA - Appellant
Versus
ANURAG PROPERTIES PVT.LTD. - Respondent
A. P. O. 571 Of 2003
Decided On : 08/04/2006

Advocates Appeared:
DEBOL BANERJI, HIRAK MITRA, KAMAL KR.CHATTOPADHYAY, PUJA DAS CHAUDHARY, RADHIKA SINGH, S.N.MULICK, SOUMEN SEN, SUBIR KUMAR SAHA

Headnote:

WEST BENGAL PREMISES TENANCY ACT - [SECTION 4(3), 13] - RENT CONTROL LEGISLATION - A writ application is not maintainable to direct a State-tenant to assess the fair rent of the property by itself and to pay the same to the landlord. Rent Controller has exclusive jurisdiction in the matter of fixation of fair rent and even a Civil Court is not competent to decide such question. Any amount in excess of the fair rent is not recoverable by the landlord.

Fact of the Case:

The respondent No. 1/writ petitioner is the owner of a building and in a part thereof, the present appellant is a premises-tenant. The tenancy was created in the early seventies by the predecessor-in-interest of the writ petitioner. After the writ petitioner became the owner of the property, the appellant accepted the writ petitioner as its landlord and started paying rent at the same rate. There was, however, no increase of rent from the very induction and the writ petitioner made repeated requests to the present appellant for increasing the rate of rent of the tenanted portion in conformity with the rent paid by other tenants of the property. As the appellant did not increase the rate of rent, the writ petitioner, in the past, came up with another writ application thereby praying for direction upon the present appellant to pay rent at the rate of Rs. 40/- per sq. ft. as according to it, the said rate was the prevailing letting-out-value in the locality.

Finding of the Court:

The appellant, admittedly, being a "state" within the meaning of Article 12 of the Constitution of India is bound to act rationally and not arbitrarily and therefore, notwithstanding the provisions contained in the West Bengal Premises Tenancy Act, a Writ court has the right to pass direction upon the appellant to act reasonably in impartial manner thereby directing the appellant to pay fair rent which is usually paid by other Government agency as rent in respect of similar accommodation in the area.

Issues: 1. Whether a landlord of a premises where the tenancy is governed by the West Bengal Premises Tenancy Act can file a writ application against his tenant who is a statutory Corporation doing public utility services and can be termed as "state" within the meaning of Article 12 of the Constitution of India for the purpose of rendering its public-utility service, for a direction upon it to assess the fair rent of the property by itself and to pay the same to the landlord. 2. Whether a writ application is at all maintainable in the facts of the present case and whether the Food Corporation of India can be forced to assess fair rent of the premises where it is itself a tenant of the property.

Ratio Decidendi: 1. If the landlord and tenant enter into any agreement as regards increase of rent during the subsistence of the tenancy under the provision of West Bengal Premises Tenancy Act, 1956, the same cannot be enforced, if the same is inconsistent with the provision contained in the said Act. 2. A writ application is not maintainable to direct a State-tenant to assess the fair rent of the property by itself and to pay the same to the landlord. Rent Controller has exclusive jurisdiction in the matter of fixation of fair rent and even a Civil Court is not competent to decide such question. 3. Any amount in excess of the fair rent is not recoverable by the landlord.

Final Decision: Appeal allowed. Order impugned is set aside. In the facts and circumstances, there will be, however, no order as to costs.

BHASKAR BHATTACHARYA, J.

( 1 ) THIS mandamus appeal is at the instance of a respondent in a writ application and is directed against the order dated 10th September, 2003 passed by a learned Single Judge of this Court thereby disposing of a writ application by directing the Zonal Magager of the present appellant to reconsider the prayer of the writ petitioner for enhancement of rent afresh in the light of the observations made in the body of the order.

( 2 ) THE respondent No. 1/writ petitioner is the owner of a building and in a part thereof, the present appellant is a premises-tenant. The tenancy was created in the early seventies by the predecessor-in-interest of the writ petitioner. After the writ petitioner became the owner of the property, the appellant accepted the writ petitioner as its landlord and started paying rent at the same rate. There was, however, no increase of rent from the very induction and the writ petitioner made repeated requests to the present appellant for increasing the rate of rent of the tenanted portion in conformity with the rent paid by other tenants of the property. As the appellant did not increase the rate of rent, the writ petitioner, in the past, came up with another writ application thereby praying for direction upon the present appellant to pay rent at the rate of Rs. 40/- per sq. ft. as according to it, the said rate was the prevailing letting-out-value in the locality. The said writ application was disposed of by a learned Single Judge of this Court thereby directing the Zonal Manager of the present appellant to consider the said writ application as a representation of the landlord and to dispose of the same by a reasoned order.

( 3 ) PURSUANT to such direction given by the learned Single Judge, the zonal Manager of the appellant by the order dated 29th March, 2003 disposed of the representation by holding that the existing rate of rent should be enhanced from the initial rent of Re. 1 per sq. ft. to Rs. 5/ - per sq. ft. with effect from 1st February, 1999.

( 4 ) BEING dissatisfied, the respondent No. 1 preferred a fresh writ application being W. P. No. 1163 of 2003 before the learned Single Judge thereby praying for setting aside the order dated 29th March, 2003 and for a direction upon the present appellant to pay rent at the rate of Rs. 40/- per sq. ft. as the existing rate of rent in that locality. The writ petitioner further prayed for a direction upon the appellant to release a sum of Rs. 69,47,766/- as arrears rent at the enhanced rate as mentioned in paragraph 16 of the writ application.

( 5 ) THE aforesaid writ application was opposed by the present appellant and ultimately, a learned Single Judge of this Court by the order dated 10th september, 2003 has allowed the writ application thereby setting aside the order dated 29th March, 2003 and directing the Zonal Manager of the appellant to reconsider the matter afresh including the claim of the writ petitioner for enhancement of rent from the year 1972. The learned Single Judge expressed the desire that the authority should exercise its power properly and reasonably after taking into account the facts and circumstances prevailing at the moment while arriving at the rate. His Lordship further directed the Zonal Manager of the appellant to pass a reasoned order in accordance with law within a specified period.

( 6 ) BEING dissatisfied, the tenant has come up with the present mandamus appeal.

( 7 ) MR. Banerjee, the learned senior Advocate appearing on behalf of the appellant, before entering into the merit, has advanced a pure question of law in support of this appeal. According to Mr Banerjee, admittedly, there being an existing relationship of landlord and tenant between the parties governed by the provision of West Bengal Premises Tenancy Act, the learned single Judge erred in law in entertaining the writ application and directing the Zonal Manager of the tenant to assess the fair rent of the property which is within the e













































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