IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
M/s.Trishla, rep. by its Partner, Shri Shamji Hansraj, Shri Shamji Hansraj (deceased) and Ors. - Petitioners
Versus
K.R. Parthiban - Respondent
C.R.P.No.196 of 2023 and C.M.P.No.1590 of 2023
Decided On : 01-02-2023
Constitution of India, 1950 - Article 227 - Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 - Section 4 - Revise fair and decretal order - Commercial premises - Fixed fair rent - Petition instituted against fair and decreetal order passed by Rent Control Appellate Authority confirming order and decree – Held, Rent Controller and Rent Control Appellate Authority have elaborately considered criterias as per provisions of Act for arriving fair rent fixation - Every aspect of building was taken into consideration for ascertaining fair rent and Engineers report submitted, both by petitioner as well as by respondent were taken into consideration - Rent Controller fixed fair rent of Rs.38,420/- and said fair rent was reduced to Rs.37,703/- by Rent Control Appellate Authority, which seems to be proper and in consonance with provision of Act - Thus, this Court is not inclined to interfere with order passed by Rent Control Appellate Authority - Thus, revision petitioner/tenant is liable to pay rental arrears as per fair rent fixed by Rent Control Appellate Authority - Fair and decreetal order passed by the Rent Control Appellate Authority stands confirmed – Petition dismissed.
ORDER :
[Prayer: Civil Revision Petition is filed under Article 227 of the Constitution of India, to allow the above civil revision petition by revising the fair and decretal order dated 07.06.2022 passed in R.C.A.No.326 of 2019 by the Rent Control Appellate Authority/IX Judge (FAC) Court of Small Causes, Chennai against the order and decretal order dated 26.04.2019 passed by the Rent Controller, XIII Small Causes Court, Chennai in R.C.O.P.No.344 of 2017.]
1. The civil revision petition on hand has been instituted against the fair and decreetal order passed by the Rent Control Appellate Authority dated 07.06.2022 in R.C.A.No.326 of 2019 confirming the order and decree passed in R.C.O.P.No344 of 2017 by the Rent Controller.
2. The revision petitioner is the defendant in occupation of the commercial premises owned by the respondent/landlord. It is not in dispute that the rental agreement is not in force and the landlord has not entered into any rental agreement renewing the tenancy or otherwise. The landlord filed R.C.O.P for fixation of fair rent under the provisions of the Act. The Rent Controller adjudicated the issues with reference to the documents and evidences placed by the respective parties and fixed the fair rent as Rs.38,420/-. Not satisfied with the order passed by the Rent Controller, the revision petitioner/tenant preferred an Appeal in R.C.A.No.326 of 2019 before the Rent Control Appellate Authority, who in turn adjudicated the facts and circumstances with reference to the documents and evidences made by the respective parties.
3. The landlord has filed R.C.O.P under Section 4 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 for fixation of fair rent for the premises situated in the Ground Floor Shop portion of an extent of 869 Sq.ft together with undivided share of land of an extent of 197 Sq.ft from and out of 2400 Sq.ft bearing New Door No.231, Old Door No.134, Royapettah High Road, Mylapore, Chennai.
4. The revision petitioner/tenant is in occupation of the Ground Floor bearing Old Door No.134, New Door No.234, Royapettah High Road, Mylapore, Chennai on monthly rent of Rs.3000/- excluding electricity charges payable according to English calendar month for carrying on business in readymade garments and hosieries. The premises consist of ground floor, first floor, second floor, third floor and partly constructed fourth floor and the tenant has been in occupation of the shop portion in the ground floor meant for commercial purposes and the premises is located in a busy commercial locality in Mylapore, Kapaleeshwarar Temple Cuthery Road, Police Station, Vevek and Co., Mohan Jewellery, Kerala Fashion, Hotel Sangeetha, Hotel Saravana Bhavan, Sai Baba Temple, etc., are situated very near to the premises and the guideline value as per Sq.ft is around Rs.24,000/- and the market value per ground exceeds Rs.6 Crores. The respondent/landlord claimed before the Rent Controller that the building is framed structure with brick walls plastered with cement mortar and reinforced cement concrete roofing. The shop is fitted with rolling shutters and ceramic tile flooring. The building is aged 35 years and electricity alone is provided as basic amenity. Accordingly, the landlord claimed that the fair rent would be around Rs.55,125/- per month.
5. The revision petitioner tenant objected the said contention of the landlord before the Rent Controller. The tenant admitted that tenancy, is for commercial purpose and that he was paying the monthly rent of Rs.3000/- excluding electricity charges payable according to English calendar month. The revision petitioner/tenant claimed that the subject property is situated in a partially commercial and partially residential locality. There is one way traffic in the road and the area is clustered with unauthorised payment shops and arbitrary vehicle parking that are made in that locality, which is not conducive for conducting the business profitably.
6. Before the Rent Controller, on
Judicial determinations regarding fair rent are binding unless successfully challenged; lack of substantial questions of law leads to dismissal of appeal.
The main legal point established in the judgment is the fair rent fixation under the Tamilnadu Buildings Lease and Rent Control Act, 1973, and the factors considered in determining the fair rent.
The guideline value has no statutory base or force. The right method to determine fair rent is to adopt the evidence of bonafide sales between the willing prudent vendor and the prudent vendee of the....
The main legal point established is that the delay in filing a restoration petition must be justified and not used as a tactic to prolong the legal proceedings.
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.
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