Judges : C.A.VAIDIALINGAM
AUTO TRANSPORT UNION (P.) LTD. - Appellant
Versus
CARDAMOM MARKETING CO LTD. - Respondent
Case No : C. R. P. No. 38 of 1966
Decided On : 23/02/1966
Advocates Appeared :
T. M. Mhaalinga Iyer; For Petitioner T. C. N. Menon; K. R. Panicker; For Respondent
fair-rent - Kerala Buildings (Lease and Rent Control) Act, 1959 (Act ZVI of 1959) - S.5
Fact of the Case:
The tenant-petitioner challenged the orders of the subordinate courts fixing fair-rent for the properties under a common lease. The petitioner claimed the fair rent to be fixed at Rs. 53/-per month based on the municipal assessment at the time of letting in 1124. The respondent urged that the fair-rent should be fixed at Rs. 200/-, based on the reconstructed shed and the total annual assessment for the three items. The Rent Controller fixed the fair-rent at Rs. 146.66 per month, which was enhanced to Rs. 186.87 by the District Judge.
Finding of the Court:
The court found that the Rent Controller and the District Judge had erred in their approach to fixing the fair-rent, as they did not adhere to the mandatory provisions of S.5(2) of the Act. The court held that the fair-rent should be fixed at Rs. 116.15 per month, based on the municipal assessment and the maximum increase allowed under the proviso to sub-section (2) of S.5.
Issues: The main issue was the correct method of fixing fair-rent under the Kerala Buildings (Lease and Rent Control) Act, 1959, and whether the subordinate authorities had followed the statutory provisions in their approach.
Ratio Decidendi: The court held that the Rent Controller and the District Judge had failed to adhere to the mandatory provisions of S.5(2) of the Act, which required them to consider the property tax or house tax fixed for the building and allowed a maximum increase of 15 per cent. The court emphasized the importance of relying on the municipal assessment and following the statutory provisions in fixing fair-rent.
Final Decision: The court modified the orders of the subordinate authorities and fixed the fair-rent at Rs. 116.15 per month.
1. In this revision on behalf of the tenant-petitioner, Mr. T. M. Mhaalinga Iyer, learned counsel, challenges the orders of the two subordinate courts fixing fair-rent, making a different approach, for the properties in question.
2. There is no controversy that the petitioner has taken, under a common lease, the three items concerned; and according to the petitioner the contract rent is a sum of Rs. 200/-per month.
3. The petitioner filed an application under S.5 of the Kerala Buildings (Lease and Rent Control) Act, 1959 (Act ZVI of 1959) as amended, hereinafter to be referred to as the Act, for fixation of fair-rent for the
building. It was the claim of the petitioner that the buildings were originally given municipal numbers, as Nos. 144,145 and 146, by the Alwaye Municipality; and later on the items after being renumbered as 220, 202 and 203 respectively now bear the municipal numbers 229, 230 and 232.
4. The petitioner no doubt wanted the fair rent to be fixed at Rs. 53/-per month on the basis that the municipal assessment for these properties at the time of letting in 1124 was Rs. 200/-,146/-and 100/-respectively. No doubt he has made certain other claims regarding adjustment to be made, of what according to him, are excess payments stated to have been made.
5. There is also no controversy, that the present respondent in the revision, has acquired title to the properties concerned and that being a company, it contested the claim of the petitioner on various grounds. They have referred to the fact that an application for eviction had already been filed and that a suit for recovery of arrears had also been instituted in the District Court. More than all these, so far as the claim of the petitioner was concerned, the respondent urged that what was originally a shed in item 1 was reconstructed in 1956-57; and the monthly rent for all the properties was fixed at Rs. 250/- with an arrangement entered into to the effect that a sum of R.50/-is to be adjusted, from and out of the rent, towards the amount stated to have been borrowed by the original first respondent in the R. C. P. 4/62, from the revision petitioner.
6. After referring to the original municipal door numbers of these buildings and the re-numbering of the buildings later on, the respondent accepted that the municipal assessment, as it now stands for the three buildings is Rs. 315/-,360/- and 540 respectively. But they also urged that the shed in item 1, has been reconstructed at an expense of about Rs. 600/-and therefore the municipal assessment for item 1, which no doubt as found in the municipal registers as Rs. 315/-, will have to be added on to the Rs. 600/-thus making a total assessment of Rs. 915/-. On this basis, the respondent urged that the total annual assessment for these three items will be Rs. 1215/-; and therefore they urged that the sum of Rs. 200/-which is the contract rent payable by the petitioner is proper and that amount can be fixed by the Rent Controller as the fair-rent. The respondent had instituted in the Additional District Court at Parur, a suit O. S.45/61 as against the petitioner, for recovery of arrears of rent at the contract rate for the period 24 3 59 to 22 c 61; and they claimed rent at the same rate for the future also.
7. That suit appears to have been decreed; but that was the subject of appeal by the petitioner, in this Court, as A. S.287/63. That appeal was dealt with by my learned brothers, Mr. Justice Joseph and Mr. Justice Raghavan by their judgment dated 5th October 1964; a certified copy of the judgment has been marked in these proceedings as Ext. D 10. The only aspect that now requires to be noted and decided by the learned judges in that appeal, is regarding the first point that arose for decision, before the learned judges. The learned judges have stated, that in decreeing the claim of the plaintiff at the contract rate, the lower court has missed to take note of the amendment effected to S.8 (2) of the Act; and fi
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