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1971 Supreme(Mad) 180

Madras High Court
RAMANUJAM
B.S.Rajarama Iyer - Appellant
Versus
Parasumanna K.Rama-swami Iyer (deed.) - Respondent
Decided On : 03/10/1971

Advocates:
A. Sundaram Iyer, for Petitioners; S. Ramasubramanian, for Respondents.

The proviso to Section 7 of the Madras City Tenants Protection Act, 1922, which limits the enhancement of rent to 25%, does not apply to Section 7-A.

Headnote:

MADRAS CITY TENANTS PROTECTION ACT, 1922 - SECTION 7-A - REASONABLE RENT - FIXATION - POWER OF COURT - LIMITATION - PROVISO TO SECTION 7 - NOT APPLICABLE.

Fact of the Case:

Tenant filed an application for fixation of fair rent under Section 7-A of the Madras City Tenants Protection Act, 1922. The landlord objected on the grounds that the Act did not apply to the tenant and that a portion of the property was not included in the original lease. The District Munsif rejected the objections and fixed the fair rent at Rs. 30 per month. On appeal, the Sub Court reduced the fair rent to Rs. 12.50 per month, holding that the proviso to Section 7, which limits the enhancement of rent to 25%, applied to Section 7-A as well.

Finding of the Court:

The High Court held that the proviso to Section 7, which limits the enhancement of rent to 25%, does not apply to Section 7-A. The court found that Section 7-A gives the court the power to fix a reasonable rent without any limitation, while Section 7 restricts the court's power to enhance the rent by more than 25%. The court held that the Legislature intended to impose different limitations on the court's power to fix a reasonable rent under Sections 7 and 7-A.

Issues: Whether the proviso to Section 7 of the Madras City Tenants Protection Act, 1922, which limits the enhancement of rent to 25%, applies to Section 7-A.

Ratio Decidendi: The court held that the proviso to Section 7 does not apply to Section 7-A because: (1) Section 7-A does not contain a similar proviso; (2) the Legislature intended to impose different limitations on the court's power to fix a reasonable rent under Sections 7 and 7-A; and (3) the court cannot supply the omission of a proviso in Section 7-A.

Final Decision: The High Court set aside the order of the lower appellate court and remitted the case for further consideration for fixing the reasonable rent.

Judgement

ORDER :- The petitioners herein are the legal representatives of the original landlady. The respondent who is a tenant in respect of a vacant piece of land, filed an application for fixation of fair rent under Section 7-A of the Madras City Tenants Protection Act,

1922, hereinafter referred to as the Act. That petition was resisted by the petitioners on two grounds : (1) that the tenant cannot seek the benefit of the said Act and have the fair rent fixed under the provisions of that Act and (2) that a portion of the property referred to in the petition for fixation of fair rent was not the subject-matter of the original lease. The learned District Munsif, Madurai town, held that the ground of objection raised by the petitioners was not tenable that the tenant was entitled to the benefits of the Act and that the entire property for which the fair rent is sought to be fixed comprised in the original lease deed. After rejecting the objections raised by the petitioners, the learned District Munsif proceeded to fix the fair rent for the site. Having regard to the fact that the original rent of Rs. 10 a month was fixed in November 1944, and that the site is siutated in an important locality and a crowded place in Madurai town, he fixed a sum of Rs. 30 as the fair rent for the same.

2. Aggrieved against the enhancement of rent from Rs. 10 to Rs. 30 a month, the tenant filed an appeal before the Sub Court, Madurai. The petitioners-landlords also filed a memorandum of cross-objections reiterating their two contentions which were found against by the first court. The appellate court also found that the two contentions put forward by the petitioners that the Act will not apply to the respondents tenants and that the entire property for which the fair rent is sought to be fixed was not included in the original lease were not tenable. However, on the quantum of fair rent, the appellate court took the view that though the tenant has filed an application for fixation of reasonable rent under Section 7-A of the Madras City Tenants Protection Act of 1922 the restriction imposed on the court under Section 7 had to be applied to this case, that if that restriction were to apply, the reasonable rent fixed by the first court at Rs. 30 could not be correct and that the maximum rent on the application of the proviso to Section 7 can only be Rs. 12.50 per month.

3. In that view it fixed the reasonable rent at Rs. 12.50.

4. The petitioners are aggrieved against the order of the lower appellate court reducing the reasonable rent from Rs. 30 to Rs. 12.50 a month. The learned counsel for the petitioners contends that the lower appellate court was in error in importing the proviso occurring in Section 7 to an application filed under Section 7-A and that the interpretation adopted by the lower appellate court runs counter to the express statutory provision. According to the learned counsel in an application filed by the tenant for fixation of reasonable rent under Section 7-A, the court's power to fix the reasonable rent is not conditioned or limited, and the considerations which have to be taken into account in disposing of an application filed by the landlord under Section 7 cannot be taken into account. I am inclined to agree with the said contention. Section 7 of the Act provides for an application by the landlord for fixation of reasonable rent and it directs the court to fix such rent as it deems reasonable. But the proviso to Section 7 states that the rent previously payable for the land shall not be enhanced by more than 25 paise in the rupee. The effect of the said proviso is that the court's power to fix reasonable rent is not absolute but is restricted and the maximum enhancement can be only by 25 per cent. Section 7-A which provides for the fixation of reasonable rent at the instance of the tenant does not however impose any such limitation. That section states that the court has to fix a reasonable rent for the occupation of the land or w


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