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1984 Supreme(Del) 330

High Court Of Delhi
ALLIED ENGINIRS - Appellant
Versus
HARBAKSH GILL - Respondent
SECOND APPEAL 135 of 1984
Decided On : 12/03/1984

Advocates Appeared:
A.K.Bhasin, M.L.SHARMA

Headnote:Delhi Rent Control Act, 1958 - Section 4 — A clause in the lease agreement provided that on every successive renewal of lease for a period of three years, the rent will be increased by 10% of the last rent paid

       Held:

       Tenant is liable to pay rent only at the initial rate even for the renewed term of the tenancy.

Sultan Singh, J.

( 1 ) THIS second appeal under Section 39 of the Delhi Rent Control Act, 1958 (for short the Act ) challenges the judgment and order dated 2nd April, 1984 of the Rent Control Tribunal confirming the order dated 6th March, 1984 of the Additional Rent Controller directing the tenant appellant to deposit the amount of Rs. 2362. 50 as rent for the period ending 31st December, 1982 and arrears at Rs. 2887. 50 per month from 1st January, 1983 onwards in accordance with Section- 15 (1) of the Act.

( 2 ) THE facts are that the respondent-landlady let out flat No. 13, 2nd floor, new Delhi House 27, Barakhamba Road, New Delhi to the appellant for running an office with effect from 20th March; 1976 in terms of a lease deed dated 18th March, 1976 on a monthly rent of Rs. 2625. 00. The. initial period of lease was three years. It was renewed by mutual consent of the parties as per Clause 2, Part III of the said lease deed enhancing the rent by 10 per cent of the last paid rent. The monthly rent was thus increased to Rs. 2887. 50.

( 3 ) THE respondent on 2nd August, 1983 filed a petition under Section 14 (1) (a) of the Act alleging that the appellant had neither paid nor tendered the arrears of rent in spile of service of a notice of demand dated 14th April, 1983. The respondent alleged that a sum of Rs. 2362. 50 was due as arrears of rent at Rs. 262. 50 per month for the period April, 1982 to December, 1982 and further rent was due at Rs. 2887. 50 per month from 1st January, 1983. The respondent admitted that the appellant had deposited rent at Rs. 2625. 00 per month for the period from April, 1982 to April, 1983 under Section 27 of the Act.

( 4 ) THE appellant has resisted the eviction application on various grounds. He alleges that the petition on ground of non-payment of rent is not maintainable as there were no arrears of rent when the notice of demand is alleged to have been issued; that the lease deed dated 18th March, 1976 being unregistered is not admissible in evidence, that the last paid rent was Rs. 2625. 00 , that the clause regarding 10 per cent increase of the last paid rent on renewal after every three years is illegal, without jurisdiction under the provisions of the Act; that the rent cannot be increased under any circumstances. The appellant pleads that the rent at the rate of Rs. . 2625. 00 per month from April, 1982 to April, 1983 was deposited by it under Section 27 of the Act in the office of the Rent Controller. The Controller and the Tribunal held that the last paid rent was Rs. 2887. 50 and therefore directed the appellant-tenant to deposit Rs. 2362. 50 as arrears for the period ending 31st December, 1982 and further monthly rent Rs. 2887. 50 per month from 1st January, 1983 in accordance with Section 15 (1) of the Act.

( 5 ) LEARNED counsel for the appellant submits that the lease deed dated 18th March, 1976 is not admissible in evidence as the same required registration but was not registered under Section 107 of the Transfer of Property Act read with Section 17 of the Indian Registration Act; that the last paid rent legally payable is Rs. 2625. 00 per month and not Rs. 2887. 50; that the periodical increase by 10 per cent of the last paid rent after every three years at the time of renewal of lease is in violation of Section 4 of the Act and therefore the landlord cannot recover the same; that the increase is not lawful within the meaning of Section 7 of the Act and no notice under Section 8 of the Act was ever issued or served by the landlady and therefore the agreed rent of Rs. 2625. 00 cannot be enhanced. Learned counsel for the respondent on the other hand submits that the appellant paid initially rent @ Rs. 2625. 00 per month and subsequently the rent was increased to Rs. 2887. 50 in terms of lease deed and paid the same for the period from April, 1979 to March, 1982, that the last paid rent was accordingly Rs. 2887. 50; that the deposit under Section 27 of the Act at Rs. 2625. 00 per mo










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