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1991 Supreme(All) 881
IN THE HIGH COURT OF ALLAHABAD
S.C. Verma, J.
Hanuman Prasad - Appellant
Versus
The Iii Additional District Judge And Others - Respondents
Civil Misc. Writ Petition No. 4854 of 1987
Decided On : 25-02-1991
For the Appellant : S.P. Srivastava
The standard rent under the UP Urban Buildings (Regulation of Letting Rent and Eviction) Act, 1972 is calculated by taking the greater of the agreed rent and the reasonable annual rent, and then adding 25% to that amount. This standard rent can be further enhanced by 25% under Section 5 of the Act, provided that the landlord serves a notice in writing within three months from the commencement of the Act.
Headnote:
UP URBAN BUILDINGS (REGULATION OF LETTING RENT AND EVICTION) ACT, 1972 - SECTION 3(K), 5 - STANDARD RENT - CALCULATION - AGREED RENT AND REASONABLE ANNUAL RENT - ENHANCEMENT BY 25% - INTERPRETATION.
Fact of the Case:
The dispute arose from a suit filed by the landlord against the tenant for ejectment, recovery of arrears of rent, damages, and mesne profits. The issue was whether the monthly rent should be Rs. 64.06 as claimed by the landlord or Rs. 51.25 as claimed by the tenant.
Finding of the Court:
The court held that the standard rent was Rs. 64.06 per month, as calculated under Section 3(K) of the Act. The court found that the reasonable annual rent, calculated as per Section 2(f) of the Old Act, was greater than the agreed rent. Therefore, the standard rent was calculated by adding 25% to the reasonable annual rent, which was then enhanced by 25% under Section 5 of the Act.
Issues: 1. Whether the standard rent should be calculated based on the agreed rent or the reasonable annual rent? 2. Whether the standard rent can be enhanced by 25% under Section 5 of the Act?
Ratio Decidendi: The court interpreted Section 3(K) of the Act to mean that in cases where there is both an agreed rent and a reasonable annual rent, the standard rent is the greater of the two, plus 25%. The court also held that the standard rent can be enhanced by 25% under Section 5 of the Act, provided that the landlord serves a notice in writing within three months from the commencement of the Act.
Final Decision: The court dismissed the tenant's petition, upholding the lower courts' decision that the standard rent was Rs. 64.06 per month and that the tenant was in default of payment of rent.
S.C. Verma, J.
The present petition is directed against the order dated 25-2-1986 passed by the Judge, Small Causes Court, Gorakhpur and the order dated 4-3-1987 passed by the III AddlDistrict Judge, Gorakhpur decreeing the Plaintiffs suit for ejectment, recovery of arrears of rent, damages and mesne profits.
2. The Respondent No. 3 filed the suit against Hanuman Prasad, Defendant No. 1, here in Petitioner, and also impleaded Hari Ram, Defendant No. 2 who has been sublet part of the accommodation unauthorisedly. According to the case set up in the plaint, the disputed building was erected before 1946 and was assessed in July 1959. The Defendant No. 1 was in occupation of the premises since before 1946 on a rent of Rs. 41/- per month and after the enforcement of U.P. Act 13 of 1972, herein after referred to as the Act, the rent was raised to Rs. 64.06 as the standard rent with effect from 15-7-1972. The Defendant No. 1 committed default in the payment of rent and he was in arreas to the extent of Rs. 7110/50. The Defendant No. 1 although made various deposits u/s 7-C of U.P. Act 3 of 1947, here in after referred to as the old Act, and u/s 30 of the Act but even after the setting off the amount he was in arrears of rent for more than 4 months when the notice of demand dated 16-4-1979 was served on him. The allegations of sub-letting and material alterations were also made. The suit was instituted for the recovery of an amount of Rs. 1950.50 as arrears of rent at the rate of Rs. 64.06 per month and damages for use and occupation from the date of the suit till the date of recovery of possession.
3. The suit was contested on the ground that the rate of rent was initially Rs. 28/14/- per month which was raised to Rs. 41/- per month. After the property was purchased by the Plaintiff, he declined to accept the rent which was then deposited from October 1969 u/s 7-C of the Old Act and with effect from 15-7-1972 to February, 1979 at the rate of Rs. 51.25. The allegation of sub-letting and material alterations were also denied.
4. The trial court held that the rent in respect of the accommodation was Rs. 64.06 as claimed by the Plaintiff and the Defendant was in default of more than 4 months when the notice was served. Hence liable for ejectment. The other pleas regarding sub-letting and material alteration were decided in favour of the contesting tenant.
5. The revision filed by the Defendant has also been dismissed by the III Additional District Judge, Gorakhpur upholding the view taken by the trial court.
6. In the present writ petition, a short controversy is involved as to whether the rent of the accommodation will be Rs. 64.06 as claimed by the Plaintiff or Rs. 51.25 as claimed by the Defendant, as admittedly in case the monthly rent is held to be Rs. 64.06 per month, the Petitioner shall be in default of payment of rent. On the other hand, in case the monthly rent is held to be Rs. 51.25, valid deposits are made to save him from the decree of ejectment.
7. It is not disputed that the Petitioner was in occupation of the disputed accommodation as a tenant since before the enforcement of the Old Act and since July 1951, during the continuance of tenancy, agreed rent became Rs. 41/- per month. It is further admitted that the Petitioner received notice from the landlord for enhancement of rent by 25 percent as effective from 15-7-1972 under the Act.
8. Before I deal with the submissions made by the learned Counsel for the Petitioner, at this stage, it would be necessary to clearly state the averments made in the notice of enhancement of rent dated 7-10-1972.
That your are a tenant under my aforesaid client in the following accommodation whose Municipal assessment of Rs. 492/- per annum The reasonable annual rent there of is Rs. 615/-. The said reasonable annual rent is being raised to Rs. 768.75 (Seven hundred Sixty eight and seve
