IN THE HIGH COURT AT CALCUTTA
HARISH TANDON, PRASENJIT BISWAS, JJ.
Rajshri Productions Private Limited - Appellant
Versus
T.E. Thomson And Company Limited – Respondent
APDT No.1 of 2023 with CS No.257 of 2018, IA No: GA/1 of 2023
Decided On : 03-02-2023
rent - interpretation of West Bengal Premises Tenancy Act, 1997 - Section 3(f)
Fact of the Case:
The case involved a dispute over the interpretation of the word 'rent' in the West Bengal Premises Tenancy Act, 1997, and its application to a tenancy for non-residential premises within the Kolkata Municipal Corporation limits.
Finding of the Court:
The court found that the premises, due to the rent exceeding the specified cap, fell outside the purview of the Act, allowing the landlord to seek recovery of possession under the Transfer of Property Act.
Issues: The key issue was the interpretation of the word 'rent' in the Act of 1997 and its application to the specific tenancy in question.
Ratio Decidendi: The court relied on the definition of 'rent' as inclusive of non-variable components paid for use and enjoyment of facilities, and held that the property tax and surcharge, when accepted as part of the rent, rendered the premises exempt from the Act.
Final Decision: The court dismissed the appeal, allowing the landlord to proceed with the recovery of possession under the Transfer of Property Act.
JUDGMENT :
The Court: An interesting point is raised in the instant appeal relating to the definition of a “rent” which has not been defined in the Act itself. The undisputed facts unfurled from the record is that a suit for recovery of possession under the Transfer of Property Act was filed after the expiry of period provided for in the notice under Section 106 of the said Act. It is also not in dispute that at one point of time, the tenancy was protected under the West Bengal Premises Tenancy Act, 1956 as it does not make any distinction on the score of the quantum of rent but after the promulgation of West Bengal Premises Tenancy Act of 1997, the tenancy which fetches a rent above the cap mentioned therein may not come within the peripheral of the West Bengal Premises Tenancy Act, 1997. Section 3 of the Act of 1997 containing an exemption clause whereunder certain premises are excluded from the purview of the West Bengal Premises Tenancy Act, 1997. Such distinction can be seen from the aforesaid provision that if any premises is let out for non-residential purpose carrying more than Rs.10,000/- as monthly rent in respect of the premises included within the limits of the Kolkata Municipal Corporation or the Howrah Municipal Corporation, as the case may be, shall not be protected or regulated by the provisions of the Act of 1997. The dispute which hinges in the instant matter pertains to the interpretation of the provision contained in Clause 5 of Section 3 of the Act of 1997 and it would be profitable and relevant to quote the aforesaid provision which runs thus:
(i) three thousand rupees as monthly rent in the areas included within the limits of the Calcutta Municipal Corporation or the Howrah Municipal Corporation, or
(ii) one thousand and five hundred rupees as monthly rent in other areas to which this Act extends.
Explanation. – Where any premises is let out partly for residential purpose and partly for non-residential purpose, the provisions of clause (f) shall apply to such premises in proportion to respective areas.”
2. It is to be borne in mind that the exemption is not in respect of the tenancy but in respect of a premises which does not come within the circumference of the Act of 1997 and, therefore, the important factor which requires consideration is whether the premises let out for nonresidential purpose fetches a rent more than Rs.10,000/-, provided the said premises is situated within the Kolkata Municipal Corporation, shall come within the ambit of the said Act. There is no cavil of doubt in our mind that the non-residential premises let out by the landlord fetching more than Rs.10,000/- if situated within the limits of the Kolkata Municipal Corporation, the provisions or the protections under the said Act shall not be available to the tenant. Obviously, the moment the premises is exempted from the purview of the said Act, the recovery of possession can be sought under the Transfer of Property Act which does not contain any provisions relating to protection of the tenant. We are not unmindful of the proposition of law that the West Bengal Premises Tenancy Act, 1997 is a welfare piece of legislation and protects the tenant from being evicted by an unscrupulous landlord. The aforesaid observations can be fortified from the language employed in Section 6 of the Act of 1997 which starts with a non-obstante clause that no decree or order for recovery of possession of any premises shall be made by the civil judge having jurisdiction in favour of the landlord against the tenant except on a suit being instituted by such landlord on one or more of the following grounds enumerated therein. The Transfer of Property Act is silent on such score and Section 111 of the said Act envisages the determination of a lease on the eventualities incorporated therein. The expiry of period of the statutory notice under Section 106 of the Transfer of Prop
The main legal point established is that the interpretation of the word 'rent' in the Act of 1997 is inclusive of non-variable components paid for use and enjoyment of facilities, and the acceptance ....
Rejection of plaint – Civil suit cannot be maintained by overriding statutory embargo.
The definition of 'rent' under tenancy law includes essential service charges, thereby altering tenancy governance based on total payable amount.
Municipal tax is distinct from rent in tenancy agreements unless explicitly included; failure to pay municipal tax does not constitute default in rent payments if rent obligations are met.
The central legal point established in the judgment is the interpretation of lease determination and the inclusion of municipal taxes in rent under the West Bengal Premises Tenancy Act, 1956 and 1997....
Municipal taxes are considered part of the rent under the West Bengal Premises Tenancy Act, 1997, and non-payment leads to eviction.
The court established that tenancy rights under the West Bengal Premises Tenancy Act, 1997 are not inheritable beyond five years from the original tenant's death, particularly in non-residential tena....
The Court's power to dismiss a suit under Order VII, Rule 11 of the Code of Civil Procedure, 1908 is limited to cases where there is no definite evidence with regard to the quantum of monthly 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.