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1962 Supreme(Guj) 84

Gujarat High Court
Judgename :V.B.RAJU
LABHABHAI VITHALDAS - Appellant
Versus
LAXMIDAS VITHALDAS - Respondent
Civil Revision 1009 of 1960
Decided On : 08/29/1962

Advocates Appeared: B.J.BHATT, MAFATLAL V.SHAH

Headnote:

Bombay Rents Hotel and Lodging House Rates Control Act , 1947 – Section – 12(2) - Transfer of Property Act , 1882 – Section 106 - Bombay Rent Restriction Act ,1939 - Bombay Rents Hotel Rates and Lodging House Rates (Control) Act 1944 –Section 5 (10) and 11 - Application is when a notice under which will hereinafter be referred to as the Act is given for the payment of arrears of rent not at the rate of contractual rent but at a rate higher than standard rent the notice itself becomes invalid and in such a case no suit can be filed as provided in sec. 12 (2) of the Act - It shall not be lawful to claim or receive on account of rent for any premises any increase above the standard rent unless the landlord was before the coming into operation of this Act entitled to recover such increase under the provisions - Entitled to recover such increase under the provisions or is entitled to recover such increase under the provisions of this Act –Held, Act does not contemplate two different standard rents one according to fixation by landlord and the other according to the fixation by the Court – Act only one standard rent and the definition of Standard Rent of the Act - If we adopt the view that the demand of rent under sec. 12 (2) of the Act must strictly conform to this definition and not otherwise the notice would be bad - Second and third points urged are that the notice must also terminate the tenancy at the end of year of the tenancy of the Transfer of Property Act and that the tenancy being of immovable property for manufacturing purposes should be terminated by six months notice - But having regard to the decision where court have held that this view it is not necessary to discuss this question again and no reasons have been advanced for the re-consideration of that view - Application is therefore rejected with costs - Application rejected.

V. B. RAJU, J.

( 1 ) THE first point urged in this revision application is that when a notice under sec. 12 (2) of the Bombay Rents Hotel and Lodging House Rates Control Act 1947 which will hereinafter be referred to as the Act is given for the payment of arrears of rent not at the rate of contractual rent but at a rate higher than standard rent the notice itself becomes invalid and in such a case no suit can be filed as provided in sec. 12 (2) of the Act. In order to decide this question it is necessary to refer to the relevant provisions of the Act Sec. 7 of the Act reads as follows:-EXCEPT when the rent is liable to periodical increment by virtue of an agreement entered into before the first day of September 1940 it shall not be lawful to claim or receive on account of rent for any premises any increase above the standard rent unless the landlord was before the coming into operation of this Act entitled to recover such increase under the provisions of the Bombay Rent Restriction Act 1939 or the Bombay Rents. Hotel Rates and Lodging House Rates (Control) Act. 1944 or is entitled to recover such increase under the provisions of this Act.

( 2 ) SECTION 5 (10) of the Act defines standard rent as follows:-STANDARD rent in relation to any premises means (a) where the standard rent is fixed by the Court and controller respectively under the Bombay Rent Restriction Act 1939 or the Bombay Rents Hotel Rates and Lodging House Rates (Control) Act 1944 such standard rent; or (b) where the standard rent is not so fixed subject to the provisions of sec 11. (i) the rent at which the premises were let on the 1st day of September 1940 or (ii) where they were not let on the first day of September 1940 the rent at which they were last let before that day or (iii) where they were first let after the first day of September 1940 the rent at which they were first let or (iv) in any of the cases specified in sec. 11 the rent fixed by the Court.

( 3 ) SUB-SECTIONS (1) and (2) of sec 12 of the Act read as follows:- (1) A landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays or is ready and willing to pay the amount of the standard rent and permitted increases if any and observes and performs the other conditions of the tenancy in so far as they are consistent with the provisions of this Act. (2) No suit for recovery of possession shall be instituted by a landlord against a tenant on the ground of nonpayment of the standard rent or permitted increases due until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant in the manner provided in sec. 106 of the Transfer of Property Act 1882

( 4 ) EXPLANATION to sec. 12 of the Act reads as follows:-IN any case where there is a dispute as to the amount of standard rent or permitted increases recoverable under this Act the tenant shall be deemed to be ready and willing to pay such amount if before the expiry of the period of one month notice referred to in sub-sec. (2) he makes an application to the Court under sub-sec. (3) of sec. 11 and thereafter pays or tenders the amount of rent or permitted increases specified in the order made by the Court.

( 5 ) THE scheme of the Act is to provide that recovery of any amount in excess of standard rent or permitted increases is illegal. It also provides that no suit can be filed by landlord for the recovery of possession on account of the fact that rent is in arrears unless a notice is given that rent is in arrears and the suit must be filed after the expiry of one month next after notice in writing. But the Act itself recognises that there can be a dispute as to the standard rent and has therefore enacted the explanation to sec. 12.

( 6 ) IN cases where the standard rent is fixed by the Court and therefore there can be no dispute as to the amount of standard rent there is no difficulty. In cases where the standard rent is not fixe







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