IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
M.LAXMAN, J.
Mrs. Shafeequn Begum – Appellant
Versus
Mr. Laxmi Narayan Rathi and 3 others – Respondents
Civil Revision Petition No.5014 of 2015
Decided on : 25-01-2023
Constitution of India, 1950 - Article 141 - Rent Control Act, 1960 - Section 5 - Enhancement of rent - Fixation of fair rent - Rent controller has fixed fair rent of Rs.3,600/- per month by enhancing rent and also awarded periodical enhancement 10% for every two years on fair rent fixed for scheduled premises - Aggrieved by same, tenant preferred appeal - Held, Court has laid down certain principles which shall be taken into account while fixing fair rent - Fixation of fair rent should be proper and adequate keeping in mind location type of construction accessibility with main road parking space facilities considered parameters fair rent is very reasonable and just and it doesn't require interference by this Court - Court for taking into account premises is located in commercial locality contended that even though there was increase in width of road public flow has also not been increased and naturally no increase in business activity - Civil Revision Petition is partly allowed.
ORDER :
1. The present Civil Revision Petition has been directed against order dated 13.08.2015 in R.A.No.250 of 2014 on the file of Additional Chief Judge, City Small Causes Court, Hyderabad (hereinafter referred to as ‘appellate Court’), therein and thereby, the order dated 17.10.2014 in R.C.No.363 of 2013 on the file of the II Additional Rent Controller, City Small Causes Court, Hyderabad (hereinafter referred to as ‘rent controller’), was confirmed.
2. The rent controller in R.C.No.363 of 2013 has fixed fair rent of Rs.3,600/- per month by enhancing the rent from Rs.1,100/- per month and also awarded periodical enhancement 10% for every two years on the fair rent fixed for the scheduled premises therein. Aggrieved by the same, the tenant preferred appeal in R.A.No.250 of 2014 and the appellate Court dismissed the appeal. Aggrieved by the said dismissal, the present revision is preferred by the tenant.
3. Revision petitioner herein is the tenant and the respondents herein are landlords. During the pendency of the present revision, respondent No.1 herein expired and his legal representatives are brought on record as respondent Nos.3 and 4. For the sake of convenience, hereinafter parties are referred to as landlord and tenant.
4. The case of the landlords is that they are joint owners of shop premises bearing municipal No.20-3-420, admeasuring 100 sq. feet situated at Moosabowli, Shahgunj, Hyderabad. The said shop was let out to the tenant. The existing rent was Rs.1,100/- which is Rs.11/- per sq.feet and the said premises consists of 100 sq. feet. The said shop is commercially located and there was tremendous increase in the rental values in the locality of the shop as it is commercial area. The existing small road was widened and it has become main road and created more business avenues for commercial activities. There is a textile market in the said locality. The shop is near to petrol pump and also near to Charminar, which is historical monument. The landlords sought enhancement of rent from Rs.1,100/- to Rs.6,000/- per month and also sought for periodical enhancement of 20% for every year.
5. The case of the tenant was that from 1977 onwards there were no changes in the accommodation; no parking has been provided, no amenities, no furniture and no fittings were supplied to her by the landlords. The shop is located in Old City and there is no development in the locality. Originally, the shop was of 200 sq. feet and in the year 2004, due to road widening an extent of 120 sq. feet was affected and left over area is only 80 sq. feet. The shop building is 60 years old and tenant has been maintaining the premises from its inception. There is no addition or alteration to premises and the rent that is being paid is fair and reasonable. The present application filed for fixing fair rent is with ulterior motive to evict the tenant from the shop. Hence, prayed to dismiss the case.
6. On the basis of the above pleadings, the rent controller has framed the following issues for consideration:
2. To what relief?”
7. In support of their case, the landlords got examined P.W.1 and got marked Ex.P-1 and the tenant herself got examined as R.W.1 and got marked Exs.R-1 to R-18 before the rent controller.
8. Ultimately, the rent controller found that the landlords are entitled for enhancement of rent and fixed fair rent of Rs.3,600/- per month and also held that they are also entitled for future periodical enhancement at 10% on fixed fair rent for every two years. Aggrieved by the same, the tenant filed rent control appeal before the appellate Court and the said appeal was dismissed confirming the findings of the rent controller. Therefore, the present revision is preferred at the instance of the tenant.
9. Heard the learned counsel for both parties.
10. The points emerging for determination in the pres
The court reaffirmed that fair rent determined by Rent Control Courts must reflect current market conditions, considering economic factors and evidence of comparable properties.
The court affirmed that landlords can seek fixation of fair rent under statutory law even during the existence of a long-term lease agreement.
While making fixation rent of a building procedure prescribed has to be followed.
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