RAJASTHAN HIGH COURT
Prakash Gupta, J.
M/s National Silk Palace, Bapu Bazar, Jaipur - Appellant
Versus
M/s Golecha Cinetalk Private Limited - Respondent
S.B. Civil First Appeal No. 105 of 2020 Connected with S.B. Civil First Appeal No. 307 of 2020
Decided On : 15-12-2021
Rent - Standard Rent Determination - Rajasthan Premises (Control of Rent & Eviction) Act, 1950 - The court interpreted provisions regarding standard rent fixation, emphasizing the discretion of the trial court in determining the effective date for rent assessment and the relevance of evidence presented.
Fact of the Case:
The defendants appealed against a trial court judgment that fixed the standard rent for two shops, arguing that the suits were barred by res-judicata and that the rent assessment was excessive and based on incorrect area measurements.
Finding of the Court:
The court found that the trial court's determination of standard rent was based on proper evidence and that the defendants failed to provide sufficient evidence to support their claims regarding the area and condition of the shops.
Issues: Whether the suits were barred by res-judicata, whether the trial court erred in determining the standard rent, and whether the effective date for rent fixation was correctly applied.
Ratio Decidendi: The court held that the principle of res-judicata did not apply as the previous rent determination was compromised, and the trial court had the discretion to fix the effective date for standard rent based on the evidence presented.
Result: The appeals are admitted for further consideration.
ORDER
1. These two appeals have been filed by the appellants- defendants (for short, the defendants') against the judgment dated 5.12.2019, whereby the Trial Court determined the standard rent of both the suit shops at Rs. 1,13,160/- and Rs. 50,160/- respectively and held the plaintiff entitled to get the standard rent so fixed from the date of filing the suits.
2. Mr. J.P. Goyal, learned Sr. Counsel with Mr. Abhi Goyal, Advocate submits that since in the year 1978, the standard rent had already been fixed @ Rs. 710/- per month and Rs. 705/- respectively, therefore, the present suits filed by the plaintiffs were barred by principle of res-judicata and not sustainable.
3. Learned Sr. Counsel further submits that the suit property is in a dilapidated condition as it was rented out in the year 1958. He further submits that rent of the nearby shops in the vicinity is not @ Rs. 70/- per sq. ft. The shops of which the rent is said to be Rs. 72/- per sq. ft. or Rs. 70/- per sq. ft., are located at a far better place and are situated in Nehru Bajar and at M.I. Road, Jaipur respectively, whereas the present shops are situated in Bapu Bajar. He further submits that the trial court without there being any evidence on record, assessed the rent @ Rs. 60/- per sq. ft. and determined the rent at Rs. 1,13,160/- and Rs. 50,160/- respectively, which is excessive. He further submits that since the tenancy is of the year 1958 and shops are old, prevailing rent of the shops in the vicinity cannot be much relevant for determination of the standard rent of these shops. The rate for assessing the rent should not exceed Rs. 40/- to 50/- per sq. ft. and looking to the area and conditions of the shops, the trial court ought to have determined the rent on reasonable basis.
4. Learned Sr. Counsel has drawn the attention of the Court towards sub-section (5) of Section 6 of the Rajasthan Premises (Control of Rent & Eviction) Act, 1950 (for short, 'the Act of 1950') and submits that if the tenant institutes a suit under the Act of 1950, the date for fixation of standard rent shall be the date of the institution of suit, but in every other case (e.g. in the case of landlord) in which the Court is required to determine the standard rent of any premises under this section, the Court shall determine / ascertain a date from which the standard rent so determined shall be deemed to be payable. In this view of the matter, the Court was required to determine the standard rent from the date of the order instead of date of filing the suit.
5. He further submits that as per valuation report (Ex.-5) prepared by the valuer and produced by the plaintiff himself, area of one of the suit shop is 78.07 Sq. Mtrs., which is approximately 840 Sq. Ft., but the trial court wrongly determined the standard rent treating the area as 1886 Sq. Ft. He further submits that as per valuer's report (Ex.-A/1) produced by the defendants, rental value of the suit shops is Rs. 19,203/- per month and Rs. 18,195/- per month respectively, which have not been considered by the trial court in right perspective.
6. It is also submitted that on an application filed under Section 151 CPC, the defence of the defendants was wrongly struck off vide order dated 20.7.2019, which is per-se illegal and not sustainable. In this regard, he has drawn the attention of this Court towards Section 7 (4) of the Act of 1950. He further submits that the order dated 20.7.2019 has already been challenged by the defendants in Civil Misc. Appeal No. 5287/2019, which is pending adjudication. In this way, the defendants have not been given any opportunity to lead evidence.
7. Learned Sr. Counsel further submits that both the shops are adjacent to each other and the facilities in Bapu Bajar are less than those in Nehru Bajar and M.I. Road. Looking to the area, condition of the shops, rent of the nearby shops in the vicinity and non availability of the facilities in Bapu Bajar, both the appeals deserve to be admitted and execution pr
Dharamveer Kaliya Versus Khem Singh & Ors. reported in 1982 (1) RCJ 599
Jaspal Kaur Cheema and Another Versus Industrial Trade Links and Others reported in (2017) 8 SCC 592
The court affirmed the trial court's discretion in determining standard rent and the effective date for its applicability under the Rajasthan Premises Act.
Standard rent fixation must reflect contemporary market conditions and is upheld unless substantial legal errors are demonstrated.
The court established that ongoing rent fixation cases are governed by the Rajasthan Premises (Control of Rent and Eviction) Act, 1950, despite the enactment of the Rajasthan Rent Control Act, 2001.
The court reaffirmed that a landlord's contractual rent rate is valid unless proven excessive, emphasizing the ineffectiveness of arbitrary rent reductions in commercial leases under the Bombay Rent ....
The Maharashtra Rent Control Act does not allow fixation of standard rent for premises let after October 1, 1987; hence disputes in these instances are adjudicated based on Section 8's provisions all....
when a suit is filed for eviction of a tenant for being a defaulter in payment of rent, can the tenant thereafter file an application for fixation of rent.
The foundational facts and cause of action must remain unchanged for res judicata to apply, and the earlier adjudication must have been on merits.
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