R. S. Pathak, C.J. (Majority View):- I regret I am unable to agree entirely with my brother D. B. Lal. The facts have been stated in his judgment and need not be repeated here.

2. The first question is whether the landlord and tenant are bound in a proceeding for the fixation of fair rent under Section 4 of the East Punjab Urban Rent Restriction Act, 1949 (which for convenience I shall call "the Act") by an earlier order of the Controller determining the fair rent in terms of a compromise between the same parties in respect of the same building.

3. Section 4 of the Act provides for the fixation of the fair rent of a building by the Controller. Sub-section (1) provides that on application by the tenant or the landlord the Controller must fix the fair rent "after holding such enquiry as the Controller thinks fit". Sub-section (2) prescribes the scheme to be followed by the Controller. The scheme provides that he should first determine the basic rent. Two considerations are laid down for that purpose; (a) the prevailing rates of rent in the locality for the same or similar accommodation in similar circumstances during the 12 months prior to January 1, 1939, and (b) the rental v