1953 Supreme(All) 321
HIGH COURT OF ALLAHBAD
CHATURVEDI, J.
Girdhari Lal
Versus
Sunder Lal
Civil Revn. No. 1231 of 1951
Decided On : 12-12-1953
Gopalji Mehrotra, for Applicant; N.P. Asthana, for Opposite Party.
Q
Headnote:
RENT CONTROL - U.P. CONTROL OF RENT AND EVICTION ACT, 1947 - S. 5(4) - ENHANCEMENT OF RENT - LANDLORD'S RIGHT TO ENHANCE AGREED RENT - CONDITIONS - UNFAIR TRANSACTION - PROOF NOT NECESSARY.
Fact of the Case:
Plaintiff, the landlord, filed a suit for enhancement of rent and recovery of arrears at the enhanced rate from a back date. The agreed rent was Rs. 34/- per month, and the plaintiff claimed the rent to be enhanced to Rs. 51/- per month. The defendant, the tenant, contended that the agreed rent was fair and could not be enhanced.
Finding of the Court:
The court found that the agreed rent was Rs. 34/- per month, the reasonable rent was Rs. 42/8/- per month, and the proper rent was Rs. 51/- per month or Rs. 46/12/- per month. The court held that the plaintiff was not required to prove that the agreed rent was the result of an unfair transaction in order to enhance the rent.
Issues: 1. Whether the landlord is required to prove that the agreed rent was the result of an unfair transaction in order to enhance the rent under S. 5(4) of the U.P. Control of Rent and Eviction Act, 1947? 2. Whether the landlord can bring a suit for the enhancement of the annual reasonable rent even when the agreed rent is below the annual reasonable rent?
Ratio Decidendi: 1. The court held that the proviso to S. 5(4) of the Act, which requires the landlord to prove that the agreed rent was the result of an unfair transaction in order to reduce the rent, does not apply to cases where the landlord seeks to increase the annual reasonable rent. 2. The court held that the landlord cannot bring a suit for the enhancement of the annual reasonable rent when the agreed rent is below the annual reasonable rent, as the Act does not permit the landlord to bring a suit for the enhancement of the agreed rent.
Final Decision: The court dismissed the plaintiff's revision and suit, holding that the suit was not maintainable as the procedure provided by law was not followed by the plaintiff.
2. The facts of the case in brief are that the defendant opposite party has been a tenant of the plaintiff applicant for more than 15 years, and the rent previously fixed was at the rate of Rs. 38/- per month. This rent was reduced in 1936 and again in 1938. After the deduction in 1938 the rent was fixed at Rs. 31/- per month with an additional annual payment of Rs. 36/-, the total rent thus being Rs. 34/- per month. On 4-5-1948 the plaintiff gave a notice to the defendant enhancing the rent by 50 per cent. The defendant did not accept this enhancement, but agreed to the enhancement of 25 percent only. The present suit was consequently filed for fixation of rent at Rs. 51/- per month, which would be the rent payable if the enhancement by 50 per cent, were valid. The plaintiff claimed the arrears at the enhanced rate with effect from 18-5-1948, as the enhancement according to the notice, came into effect on this date. The total rent thus due was said to be a sum of Rs. 646/- out of which Rs. 387/8/- had been paid by the defendant, and the balance claimed was a sum of Rs. 258/8/-.
3. The defendant pleaded that he was liable to pay rent at the rate of Rs. 31/- per month only, and the annual Nazrana of Rs. 36/-, was an illegal claim; and that the defendant was ready to enchance the rent by 25 per cent, and he and the plaintiff agreed to this enhancement about the end of February 1949, so that the rent that was payable by the defendant was Rs. 38/12/- per month with effect from the above date. It was further pleaded that Rs. 38/12/- was the agreed rent and it could not be enhanced.
4. The learned Civil Judge, who tried the suit, held that the rent payable after 1938 was Rs. 34/- per month, as the additional payment of Rs. 36/- a year was also in the nature of rent and there was no illegality in fixing this additional sum to be payable annually. He thus held that the rent payable after 1938 was Rs. 34/- per month. He did not accept the defendants case that there was any agreement between the parties, in February or March 1949, enhancing the rent by 25 per cent, and agreeing to fix it at Rs. 38/12/- per month. His finding on the point is that the plaintiff never agreed to this enhancement of 25 per cent only.
5. The plaintiff had not alleged that the transaction fixing the rent at Rs. 34/- per month was an unfair transaction, and it appears to have been argued by the learned counsel for the defendant that, in the absence of any such allegation and proof, the agreed rent could net be enhanced. The learned Civil Judge accepted this contention of the defendant and held that it was necessary for the plaintiff to allege and prove that the transaction fixing the rent at Rs. 34/- per month was an unfair transaction and, in the absence of any such proof, the plaintiff was not entitled to have the rent enhanced. He then considered the question as to what was the proper rent payable for the shop in question and, after observing that the rent of a similar shop in the vicinity was Rs. 90/- per month, came to the conclusion that, taking into consideration the situation of the shop and other circumstances, the proper rent for the shop was Rs. 51/- per month, as claimed by the plaintiff; but if for some reason this amount was considered to be excessive, then the sum of Rs. 46/12/- per month would not be excessive or inadequate as the rent of the shop. He further held that the notice for enhancement given by the plaintiff in 1948 was invalid, because the plaintiff had no right to enhance the agreed rent to a figure above the annual reasonable rent, and the annual reasonable rent of the shop was Rs. 42/8/- per month. I accept these findings as findings of fact, supported as they are by evidence on the record.
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