ALLAHABAD HIGH COURT
Pankaj Mithal, J.
Milap Chandra Jain -Appellant
Versus
Roop Kishor & Ors. -Respondent
Civil Revision No. 56 of 2012 with Civil Revision No. 72, 73 & 74 of 2012
Decided On : 03-02-2014
Rent - Eviction - U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act - Section 3(k), 4(2), 5, 6, 8, 9 - The court discussed the meaning of 'rent' and the legal framework for fixation and enhancement of rent under the U.P. Act No.13 of 1972. It highlighted the provisions declared ultra vires to the Constitution of India, the guidelines for rent enhancement, and the role of competent authorities in rent fixation.
Fact of the Case:
The landlord filed suits for eviction of tenants due to alleged default in payment of enhanced rent. The court found that the tenants had been paying rent at the usual rate agreed by the parties and the increase in rent alleged by the landlord was not legal.
Finding of the Court:
The court held that the rent of tenancies did not automatically increase pursuant to notices of enhancement of rent alleged to have been given by the landlord, and the failure of tenants to pay the enhanced rent did not make them liable for eviction.
Issues: The precise question was whether the rent of tenancies stood automatically increased pursuant to notices of enhancement of rent alleged to have been given by the landlord and the failure of tenants to pay the enhanced rent or to vacate the premises made them liable for eviction.
Ratio Decidendi: The court discussed the legal meaning of 'rent', the distinction between contractual and statutory tenancy, and the guidelines for rent enhancement under the U.P. Act No.13 of 1972. It emphasized the provisions declared ultra vires to the Constitution of India and the role of competent authorities in rent fixation.
Final Decision: The revisions were dismissed, and the court expressed concern over the lack of legislative action to enact proper new legislation on rent control as directed in previous judgments.
All the four revisions are by the same landlord against the various tenants of different shops situate in the same building.
2. The landlord had instituted separate small causes court suits for eviction of the tenants on the ground of default in payment of rent at the enhanced rate which he alleges he had increased by sending proper notice to that effect to the respective tenants. The suits were dismissed by the court below by separate but identical judgments with the finding that there was no default in payment of rent by any of the tenants as they have been paying rent at the usual rate agreed by the parties and the increase in the rent as alleged by the landlord was not legal.
3. The revisions were nominated to me by the order of the Chief Justice dated 4.3.2013. After the parties have exchanged the pleadings and have agreed for final disposal of the revisions at the stage of admission, all the revision were clubbed and ordered to be taken up for hearing together.
4. Sri R.P.Singh, learned counsel for the landlord had advanced one simple argument that in an earlier round of litigation between the same landlord and one of the tenants, now represented by his heirs and legal representatives, this Court in Writ Petition No.33224 of 1998 Milap Chandra Jain Vs. State of U.P. and others decided on 12.9.2001 which decision is reported in 2001 (2) ARC 488 : 2001 ALJ 2656 : 2004 (45) ALR 345 : 2002 (1) R.L.R 41 had struck down Section 3(k) and the corresponding provisions of Section 4(2), 5, 6, 8 and 9 of U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act i.e U.P. Act No.13 of 1972 (hereinafter for short 'Act') as ultra virus to the Constitution of India as a consequence of which fixation and enhancement of rent has to be in accordance with general tenancy law and once the landlord by a due notice demands a fair and reasonable higher rent, the tenant has no option but to pay the rent at the rate so demanded or to vacate. Any default on his part in the payment of the said rent thereafter is sufficient to entail his eviction.
5. Sri Ashok Mehta, learned counsel appearing for the tenant in Civil Revision No.72 and 73 of 2012 to counter the submissions made on behalf of the landlord contended that the judgment and order of this Court in the case of Milap Chandra Jain (supra) itself lays down sufficient guidelines for increase of the rent and, therefore, enhancement of rent, if any, has to be made in accordance with the said directions. Otherwise, the enhancement could only be by the agreement of the parties or by competent court or authority but not by the Small Causes Court or the revisional court thereto. The enhancement of rent would attract the principles of contract law.
6. Sri Anoop Trivedi, learned counsel appearing for the tenant in Civil Revision No.74 of 2012 and Sri Madhav Jain, learned counsel appearing for the tenant in Civil Revision No.56 of 2012 have adopted the stand and defence taken by Sri Mehta, referred to above but have added that the pleadings regarding enhancement of rent are not sufficient and that the landlord has no right under law to enhance the rent unilaterally.
7. In the wake of aforesaid facts and submissions, the precise question which springs up for consideration in these revisions is whether the rent of tenancies stood automatically increased pursuant to notices of enhancement of rent alleged to have been given by the landlord and the failure of tenants to pay the enhanced rent or to vacate the premises made them liable for eviction.
8. In attempting to answer the above question, I consider it prudent to first deal with the meaning of the word 'rent'.
9. In Abdul Kader Vs. G.D.Govindaraj Vs. New Delhi Municipality AIR 2002 SC 2442 it has been held the word 'rent' may be taken in its ordinary dictionary meaning as it has not been specifically defined in the Act.
10. 'Rent' in common parlance is consideration paid for use or occupation of a property. It is a fee by way o
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