1951 Supreme(P&H) 181
PUNJAB & HARYANA HIGH COURT
D.Falshaw and Kapur JJ.
Mool Chand Jawaharlal
Versus
Padam Chand And Sons
Civil Revision No. 365 of 1951,
Decided On : NOVEMBER 29, 1951
The Rent Controller does not have the power to redetermine the standard rent which has once been determined under the Delhi and Ajmer-Merwara Rent Control Act, 1947, Fourth Schedule.
Headnote:
RENT CONTROL - STANDARD RENT - REDETERMINATION - POWER OF RENT CONTROLLER - DELHI AND AJMER-MERWARA RENT CONTROL ACT, 1947, FOURTH SCHEDULE - RULES MADE BY THE HIGH COURT UNDER THE ACT, RULE 6.
Fact of the Case:
The landlords leased land from the Notified Area Committee and built shops on it. The Rent Controller fixed the rent of the shops. The landlords appealed to the District Judge, who increased the rent. The tenants then approached the Rent Controller again, who reduced the rent. The landlords again appealed to the District Judge, who held that the Rent Controller had no power to reduce the rent. The tenants challenged this order in the High Court.
Finding of the Court:
The High Court held that the Rent Controller had no power to redetermine the standard rent which had once been determined. The Court analyzed the provisions of the Fourth Schedule to the Delhi and Ajmer-Merwara Rent Control Act, 1947, and found no provision that allowed the Rent Controller to decrease the rent on a change of circumstances.
Issues: 1. Whether the Rent Controller had the power to redetermine the standard rent which had once been determined. 2. Whether the rules made by the High Court under the Act, Rule 6, applied to the Fourth Schedule and allowed for a review of the Rent Controller's order.
Ratio Decidendi: 1. The Fourth Schedule to the Delhi and Ajmer-Merwara Rent Control Act, 1947, does not give the Rent Controller the power to redetermine the standard rent which has once been determined. 2. The rules made by the High Court under the Act, Rule 6, do not apply to the Fourth Schedule and do not allow for a review of the Rent Controller's order.
Final Decision: The High Court dismissed the petition and discharged the rule, leaving the parties to bear their own costs throughout.
Kapur, J.
1. This is a rule directed against an order of District Judge, Dulat, whereby he set aside the order of the Rent Controller and held that the Rent Controller had no power to reduce the rent which had already been fixed.
2. On the 28th of May 1947, Padam Chand and Sons, Delhi, who will hereinafter be termed the landlords, took on lease from the Notified Area Committee some land which is situate along the Esplanade Road, Delhi, and along the Chandni Chowk. The lease was for two years and was to take effect as from the 10th of April 1947. On this land shops were to be built in accordance with the plan which had been sanctioned by the Notified Area Committee. The lease-money payable by Padam Chand and Sons was Rs. 859/11/-, per mensem and on expiry of the lease the lessees were to return the land in the condition in which it had been taken. In other words, they had to remove their superstructures. 45 stalls were built by Padam Chand and Sons between April and May 1947. It is stated that about Rs. 20,000/- were spent on their construction. In June 1947 different persons took these stalls on lease at Rs. 100/- per mensem.
3. Sometime in December 1947, the tenants had the matter referred to the Rent Controller for the fixation of rent under Section 7-A of the Delhi and Ajmer-Merwara Rent Control Act, hereinafter termed the Act. On the 3rd of November 1948 the Rent Controller made an order fixing the rent of the different shops as follows :
Of 19 shops or stalls which were on the Esplanade Road .. Rs. 34/6/- per mensem per shop. Of 12 shops which were in the Chandni Chowk .. Rs. 31/7/- per mensem per shop. Of 14 shops which were at the back : Rs. 18/8/- per mensem per shop. At the end of his order the Rent Controller said as follows : "If the life of the shops is extended beyond two years, this order will be revised."
The landlords Padam Chand & Sons took an appeal to the District Judge under Section 11 of Schedule Fourth of the Act. The learned Judge after taking all the circumstances into consideration by an order dated the 9th of February 1949 increased the rent of each shop as follows:
Of the shops on the Esplanade Boad and the Chandni Chowk..... .Rs. 60/- per mensem. Of the 14 shops at the back..... .Rs. 30/- per mensem. The learned Judge in coming to this conclusion took into consideration the fact that the lease in favour of the landlords was for two years.
4. The tenants again approached the Rent Controller as the term of lease in favour of Padam Chand and Sons had been extended by another two years and by an order dated the 27th of November 1950 he fixed the rent of each shop as follows:
Of the shops on the Esplanade Boad and the Chandni Chowk.... Rs. 36/5/- per mensem. Of the 14 shops at the back... ...Rs. 18/3 per mensem, and at the end of it he again wrote "if the lease is further extended beyond 9th April 1951, the rent is likely to be reviewed."
The landlords again went up in appeal to the District Judge who has held that the Bent Controller had no power to vary the rent which had already been fixed nor could he redetermine the same except as provided in para. 6 of the Fourth Schedule of the Act. He, therefore, allowed the appeal and set aside the order of the Rent Controller reducing the rent. It is against this order that the tenants have come up in appeal to this Court and my learned brother Harnam Singh, J., issued the rule on the 13th June 1951.
5. By way of preliminary objection Mr. Grover has submitted that no revision lies against the order of the District Judge. He submits that the determination of standard rent under Section 7-A of the Act is contained in the Fourth Schedule para. 11 of which provides for an appeal within thirty days from the order of the Rent Controller to the District Judge, Delhi. The provision for revision is contained in the Delhi Bent Control (Procedure) Rules, 1947, which is Appendix "A" of the Act. In these Rules "Act" means the Delhi and Ajmer-Merwara Rent Control Act