The main legal point established is the correct assessment of fair rent under Section 4 of the Tamil Nadu Buildings (Lease & Rent Control) Act, 1960.

JUDGMENT

(Prayer: Civil Revision Petition filed under Section 25 of Tamil Nadu Buildings (Lease & Rent Control Act) 18 of 1960 as amended by Act 23 of 1973, against the order passed by the Hon'ble IX Judge, Small Causes Court, Chennai – 104 on 20.10.2017 in RCA.No.71 of 2017 against RCOP No.196 of 2015 on 15.11.2015 on the file of XIII Judge, Small Causes Court, Madras.)

1. This Civil Revision Petition has been filed by the tenant under Section 25 of the Tamil Nadu Buildings (Lease & Rent Control) Act 18 of 1960 as amended by Act 23 of 1973, questioning the judgment dated 20.10.2017 passed by the IX Court of Small Causes, Chennai / Rent Control Appellate Authority in R.C.A.No.71 of 2017, which appeal had also been filed by the revision petitioner herein, questioning the order dated 15.11.2016 passed by the XIII Court of Small Causes, Chennai / Rent Controller in R.C.O.P.No.196 of 2015, which, Rent Control Original Petition had again been filed by the present revision petitioner/tenant under Section 4 of the Tamil Nadu Buildings (Lease & Rent Control) Act, 1960.

BACKGROUND FACTS:

2. The revision petitioner, is a tenant under the respondent for the petitioner premises, which is a non-residential portion in the ground floor, measuring 5377 Sq.Ft. including 4707 Sq.Ft. of super market area, coffee, medical, popcorn and juice shops, flower shop and refresh room at Door No.105, Dr.Radhakrishnan Salai, Mylapore, Chennai – 600 004. The monthly rent agreed between the petitioner and the respondent was Rs.12,00,000/-. It is claimed that a sum of Rs.1,20,00,000/- had been paid as interest free deposit. Contending that the monthly rent is exorbitant, the petitioner had filed an application under Section 4 of the Tamil Nadu Buildings (Lease & Rent Control) Act, 1960 to fix the fair rent of the premises aforementioned at Rs.4,73,000/-. The Rent Controller / XIII Court of Small Causes, Chennai by order dated 15.11.2016, after examining the evidence presented, had determined the fair rent for the premises at Rs.10,00,999/-.

3. Aggrieved by such fixation of fair rent, the petitioner had filed R.C.A.No.71 of 2017. That appeal came up for consideration before the Rent Control Appellate Authority / IX Court of Small Causes, Chennai, who by judgment dated 20.10.2017, had confirmed the fair rent at Rs.10,00,999/- and consequently, had dismissed the appeal. The tenant has filed the present Revision Petition, questioning such judgment.

RCOP.No.196 of 2015:

4. The petitioner / M/s.Sunrise Chennai Distributors Private Limited is a tenant under the respondent / M/s.R.P.Rajarajan Associates, with respect to the ground floor of the premises at Door No.105, Dr.Radhakrishnan Salai, Mylapore, Chennai – 600 004 for nonresidential purposes for an area of 5377 Sq.Ft and 670 Sq.Ft for loading and unloading bay at No.103, Dr.Sivasamy Salai, Mylapore, Chennai – 600 004.

5. It is the contention of the petitioner that respondent was the absolute owner of the aforementioned property and the petitioner had entered into a tenancy agreement for non-residential purposes on a monthly rent of Rs.12,00,000/-. A sum of Rs.1,20,00,000/- had been paid as interest free deposit. It is claimed that the petitioner had paid a further sum of Rs.3,00,00,000/- as compensation for vacating the earlier tenant. It was stated that the superstructure comprised of part RCC structure and part metallic roof with a loading and unloading bay. It was also stated that the petitioner occupies a parking area for parking 8 cars at a time. The property has two entries, one facing South at Dr.Radha Krishnan Salai and the other facing west at Dr.Sivasamy Salai. There are Hotels and Banks and other business establishments near the place. It was stated that the market value at No.105, Dr.Radhakrishnan Road is Rs.23,500/- per Sq.Ft and at Dr.Sivasamy Salai at Rs.20,000/- per Sq.Ft. It was stated that the market value of the proportionate undivided share of land in occupation of the petitioner was Rs.4,44,