COMMON ORDER

Both the Civil Revision Petitions have been filed as against the decree and judgment dated 03.09.2018 passed by the learned VII Judge, Small Causes Court at Chennai, (herein after called as “Rent Control Appellate Authority”) in R.C.A.No.55 of 2017, thereby enhanced the fair rent fixed by the learned XII Judge, Small Causes Court, Chennai, (herein after called as “Rent Controller”) by an order dated 16.12.2016 in R.C.O.P.No.887 of 2015, thereby fixing the fair rent for the petition premises.

2. The Civil Revision Petition in C.R.P.No.4179 of 2018 has been filed by the landlord for further enhancement of the fair rent fixed by the learned Rent Control Appellate Authority. The another Civil Revision Petition in C.R.P.No.4267 of 2018 has been filed by the tenant challenging the fair rent fixed by the learned Rent Controller and also enhanced rent by the learned Rent Control Appellate Authority.

3. The case of the landlord is that he is the owner of the petition premises and the tenant has been inducted as tenant in the petition premises for the monthly rent of Rs.38,000/-. The purpose of the tenancy is commercial and the petition premises is located in the prime busy locality of the City of Chennai. The total extent of the premises is 1930 sq.ft of the built up area and also using the vacant space for the purpose of parking vehicles. The market value of the land, in which petition premises is situated at Rs.4 crores per ground and as such sought for fixing the fair rent at Rs.1,44,606/-.

4. Resisting the same the tenant filed counter and stating that the tenant is the bank and it came as a lessee in respect of the petition premises under the lease agreement dated 13.03.2012. The period of lease is five years, which expired on 28.02.2016. Therefore, fixing of fair rent itself is premature and liable to be dismissed. As per the contention of the lease agreement, further term of three years has been extended as such the tenant is entitled to occupy for the same rent till February, 2019. So far the tenant is paying rent at Rs.47,000/- and it is very reasonable and remarkable amount for the petition premises. Therefore, prayed for dismissed of the petition.

5. On the side of the landlord, he examined P.W.1 and marked Ex.P.1 to Ex.P.4. On the side of the tenant, they examined R.W.1 and marked Ex.R.1 to Ex.R.5. On perusal of the material produced on record and considering both the oral and documentary evidence adduced by the respective parties and also the submissions made by the learned counsel on either side, the learned Rent Controller fixed fair rent for the petition premises at Rs.50,466/- per month. Aggrieved by the same, the landlord filed appeal in R.C.A.No.55 of 2017 before the learned Rent Control Appellate Authority for enhancement of rent. The learned Rent Control Appellate Authority enhanced the fair rent at Rs.92,000/- per month for the petition premises. Aggrieved by the same, both the landlord as well as the tenant filed the present Civil Revision Petitions for further enhancement of fair rent and also challenging the fair rent fixed by the Courts below.

6. The learned counsel appearing for the landlord submitted that the learned Rent Control Appellate Authority failed to consider 15% increased market value of the petition premises while fixing the fair rent. The learned Rent Control Appellate Authority has taken the land value at Rs.3,00,000/- per ground, as per the Ex.P.3 which was of the year 2015. When it being so, the learned Rent Control Appellate Authority ought to have calculated the increased value by 15% per annum and then calculate the fair rent. Therefore, he prayed for further enhancement of the fair rent fixed by the Courts below.

7. Per contra, the learned counsel appearing for the tenant vehemently contended that as per the lease agreement which was marked as Ex.R.2 dated 13.03.2012, the lease period for the petition premises is five years for the monthly rent of Rs.38,000/-. The lessee shall be