The proper method of computing the cost of construction of a flat is to find out the total cost of construction of the entire building and divide it by the number of flats. The value of the land should be ascertained by dividing the total value of the plot by the number of flats.

1. Both these revision petitions, the first of which is filed by the tenant and the second one is by the landlord, are being disposed of by this common order, because they arise out of the same proceedings for fixation of fair rent under S.4 of the Tamil Nadu Buildings (Lease and Rent Control) Act, (hereinafter referred to as the Act), in respect of premises No. 919, Poonamallee High Road, Madras-84. The landlord has constructed four flats on a plot having an area of 3785 sq.ft. There are two flats on the ground floor and two flats on the first floor with a stair case in the centre going upto the second floor which is merely a terrace. The landlord filed petitions for fixation of fair rent, because according to him the monthly rental of Rs. 200 being paid by the three tenants was inadequate. Three identical petitions against three tenants of the three flats thus came to be filed. The building is described as No. 919, Poonamallee High Road, Madras-84. According to the landlord, he was entitled to Rs. 775 per month, as rent taking into account the value of the land at Rs. 1,00,000 per ground and the cost of construction taken at Rs. 55 per sq.ft. He claimed 15 per cent additional cost for water and drinking facilities and 7-1/2 per cent for electrical installations. The age of the building, according to the landlord, is 21 years.

2. The tenant disputed the extent of the built up area, which according to him was only 806 sq.ft. He wanted the cost of construction to be taken as Rs. 44 sq.ft. the age of the building at 40 years and the value of the land at Rs. 30,000 per ground.

3. Both the parties had engaged engineers who made their inspection reports. The inspection report of the engineer for the tenant, while mentioning that the said premises were situated at No. 919, Poonamallee High Road, Madras, stated that the premises were 500 yards in the interior from Poonamallee High Road. The age of the building was given by him as 30 years, the value of the site at Rs. 45,000 and the plinth area was calculated at 976 sq.ft. He reduced the area of the staircase and the net plinth area was given at 872 sq.ft. Calculating the cost of construction for 872 sq.ft. at Rs. 55 per sq.ft. and working out depreciation on the footing that the building was 30 years old, the depreciated cost of the flat was calculated at Rs. 26,405; the value of the site to the extent of 872 sq.ft. at Rs. 45,000 per ground was calculated at Rs. 8,175; the value of the amenities was added at Rs. 1,729. Thus, according to the engineer the rent had to be determined with reference to the cost of Rs. 35,309, 9 per cent of which came to Rs. 272.

4. The engineer appointed by the landlord followed a different method. He took up the built up area of the entire building consisting of 2,015 sq.ft. of the ground floor and the first floor each and 142 sq.ft. of the second floor and divided this by four to arrive at the built up area of each flat. This figure came to 1,043 sq.ft. He took the age of the building at 21 years. With reference to the position of vantage which the structure of the Poonamallee High Road, occupied, with K.J. Hospital, Hotel Dashprakash, Hotel Blue Diamond and other hotels, nursing homes, educational institutions, nearabout the value of the land was taken at Rs. 1,00,000 per ground. The depreciated cost was worked out by him at Rs. 63,890. Taking the value of the site at Rs. 1,00,000 per ground, he included the value of one-fourth of the total land, that is, 946 sq. ft. amounting to Rs. 39,413 for purpose of computing the total cost of the flat for the purpose of working out the return of nine per cent. The figure came to Rs. 1 03, 303 and the rent for the month on the footing of 9 per cent return came to Rs. 775. The Rent Controller however, calculated the monthly fair rent Rs. 758. He took the value of the land at Rs. 1,00,000 per ground and the plinth area for calculating the cost of construction was taken by him to be 1,043 sq. ft. as calcu