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1997 Supreme(Mad) 1092

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE AR. LAKSHMANAN
S.K. Rohini and Others
Versus
Hindustan Petroleum Corporation Ltd., 17, Samsetji, Tata Road, Bombay
C.R.P.No.3794 of 1993
Decided On : 01-10-1997

Advocates:
Mr.T.R. Rajagopalan, Senior Counsel for M/s.T.R. Rajaraman, Advocate for Petitioners. Mr.R. Krishnamoorthy, Senior Counsel for M/s.K. Kumar, Additional Central Government Standing Counsel for Respondent.

The relevant date for fixing the minimum extent and price of the land under Section 9 of the City Tenants Protection Act is the date on which the court passed the order.

Headnote:

CITY TENANTS PROTECTION ACT - SECTION 9 - REVISION PETITION - DETERMINATION OF RELEVANT DATE FOR FIXING MINIMUM EXTENT AND PRICE OF LAND - INTERPRETATION OF SECTION 9(1)(B) - COURT'S ANALYSIS AND CONCLUSION.

Fact of the Case:

The petitioner, a landlord, filed a suit for possession of the suit property against the respondent, a tenant. The respondent filed an application under Section 9 of the City Tenants Protection Act, seeking to purchase the suit property. The trial court fixed the market value of the property at Rs. 10,88,000 and directed the respondent to deposit the said amount. The respondent challenged the order before the Sub-Court, which enhanced the price payable by Rs. 1,28,000. The petitioner filed a revision petition against the order of the Sub-Court.

Finding of the Court:

The High Court held that the relevant date for fixing the minimum extent and price of the land is the date on which the court passed the order, not the date on which the landlord filed a memo stating that the entire extent can be given to the tenant or the date on which the advocate commissioner was appointed to value the property. The court also held that the market value of the property should be fixed with reference to the date of the order and that the price fixed by the Sub-Court was inadequate.

Issues: 1. Whether the relevant date for fixing the minimum extent and price of the land is the date on which the landlord filed a memo stating that the entire extent can be given to the tenant, the date on which the advocate commissioner was appointed to value the property, or the date on which the court passed the order? 2. Whether the market value of the property should be fixed with reference to the date of the order?

Ratio Decidendi: 1. The relevant date for fixing the minimum extent and price of the land is the date on which the court passed the order, not the date on which the landlord filed a memo stating that the entire extent can be given to the tenant or the date on which the advocate commissioner was appointed to value the property. 2. The market value of the property should be fixed with reference to the date of the order.

Final Decision: The High Court allowed the revision petition, modified the orders of the courts below, and directed the respondent corporation to pay the difference in the price fixed within three months.

Judgment :

1. The above revision has been directed against the order of the Sub-Court, Coimbatore made in CMA. No. 191 of 1990 dated 5. 1993 and the order of the District Munsif Court, Coimbatore made in I.A. No. 695 of 1984 in O.S. No. 109 of 1984 dated 211. 1989. The petitioner herein filed O.S. No. 109/84 for possession of the suit property against the respondent. In that suit the respondent filed I.A. No. 695 of 1984 under section 9 of the City Tenants Protection Act. The learned District Munsif after enquiry, upheld the right and fixed Rs. 10,88,000 as market price of the said land. The respondent herein deposited the said amount and that also has been invested in the bank. Aggrieved against the order of the learned District Munsif, the petitioners preferred CMA. No. 191 of 1990 before the Sub-Court, Coimbatore. The learned Sub-Judge enhanced the price payable by Rs. 1,28,000 and directed the respondent to deposit the said amount. As the amount fixed by the learned Sub-Judge was very low according to the petitioners, they have come forward with the above revision against the order of the learned Sub- Judge, Coimbatore.

2. It is the case of the respondent (defendant in the suit) that they are the lessees of the vacant site and has put up valuable superstructure on the site and are running a petrol outlet station on the property and that they are entitled to the benefits and rights under the Tamil Nadu City Tenants Protection Act as amended in 1980. Without prejudice to the contentions of the respondent in the written statement, the respondent is exercising its option to purchase the suit site and pay the value there of in accordance with the provisions of the Act. The petitioners themselves have conceded in the plaint that the respondent is entitled to the benefits of the City Tenants Protection Act and under Section 3 of the Act have of fered to pay compensation of Rs.5,000 for the superstructure belonging to the respondent corporation. The compensation of fered is ridiculously low. The value of the superstructure on the date of the suit will be atleast Rs.85,000. Under section 9 of the City Tenants Protection Act any tenant who is entitled to compensation under section 3 and against whom a suit in ejectment has been instituted by the landlord may within one month after the service of summons apply to the court for an order that the land lord shall be directed to sell for a price to be fixed by the court the whole or part of the land specified in the application. Since the Corporation is entitled to compensation for the superstructure under section 3 of the Act, the corporation is entitled to purchase the site under the provisions of the Act. The corporation requires the entire extent of the land covered by the lease for running the petrol bunk. The corporation is prepared to pay the average market value of the three years immediately preceding the date of the order. According to the respondent corporation, therefore the petitioner should be directed to convey the land to the respondent corporation on payment of the price fixed by the court.

3. The above application I.A.695/84 which was filed under Sec.9 of the Tamil Nadu City Tenants Protection Act was resisted by the petitioners herein stating that the entire land is not required by the corporation. They also raised other contentions.

4. Even though the petition was filed in the year 1984 under Section 9 of the Act, the same was getting adjourned from time to time. Thereafter, the petitioners herein/plaintiffs filed a memo to fix the compensation for the land at an early date. On 23. 1988, the learned District Munsif appointed an advocate commissioner to inspect the petition property and to fix the market value of the same. The advocate commissioner inspected the property on 5. 88 and 26. 88 and filed his reports C1 and C2 and C3 plan on 88. In the course of the commissioners enquiry, the respondent filed Ex.A1, a sale deed dated 25. 1983 and examined the manager















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