IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Nagesh Bheemapaka, J.
B.Ravinder Reddy - Petitioner
Versus
The State of Telangana Rep. by its Principal Secretary, Social Welfare Department, & others - Respondents
Writ Petition No. 28885 of 2021
Decided On : 19-12-2025
| Table of Content |
|---|
| 1. petitioner's ownership and rent grievances. (Para 1) |
| 2. respondents' defense and justifications for actions. (Para 3) |
| 3. court's analysis of rent fixation and obligations. (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 4. determination of rent entitlement and obligations. (Para 11) |
| 5. court's order on payment of rent arrears. (Para 12 , 13) |
ORDER :
Nagesh Bheemapaka, J.
The case of Petitioner is that he is the absolute owner and possessor of the building bearing H.No.2-4- 123/A/12/2 situated at Padmavathi Colony, Swaroop Nagar, Uppal, Medchal-Malkajgiri District, Telangana State. He has been leasing his buildings to Respondent authorities for welfare activities for several years. In 2007, Respondent authorities had taken on lease another building belonging to Petitioner for the purpose of running an SC Child Beggar Home and fixed the rent at Rs.10/- per square foot. According to Petitioner, Respondent authorities paid rent regularly and without default till the month of September, 2017.
1.1. It is stated, the said building gradually became old and dilapidated and was rendered unfit for continued occupation. In view of the unsafe condition, Respondent authorities shifted SC Child Beggar Home from the earlier premises to Petitioner's new building bearing H.No.2-4- 123/A/12/2 during July/August, 2018. It is contended, even prior to such shifting, Respondents failed to pay rent from October, 2017 to July, 2018. After shifting into the new building with effect from 01.08.2018, Respondents continued to occupy the premises without paying any rent whatsoever. It is stated, after the hostel was shifted to the new building, petitioner made several representations to Respondent authorities requesting to revise and fix the rent at Rs.18/- by modifying the earlier rate of Rs. 10/- per square foot, taking into consideration the prevailing rental value in the locality. The total area of the building is approximately 4,800 square feet. Petitioner asserts that despite repeated representations, Respondents neither revised nor paid rent due from 01.08.2018 onwards.
1.2. Petitioner further assails the notice dated 24.10.2021 issued by the 2nd Respondent, wherein rent was unilaterally fixed at Rs.10/- per square foot for 3,700 square feet with effect from 01.08.2018, and directions were simultaneously issued to vacate the building immediately. In the said notice, it is stated, rent would be paid to Petitioner only after receipt of budget from the Commissioner, SCDD, Telangana, Hyderabad. The said notice was issued abruptly, without affording any opportunity of hearing, and without considering her earlier representations, thereby violating the principles of natural justice.
1.3. It is further stated that without settling the arrears of rent payable from 01.08.2018, Respondent authorities vacated the premises on 26.10.2021 and issued a letter through the Hostel Welfare Officer informing about vacation. Petitioner thereafter, submitted the representation dated 28.10.2021 requesting the Respondent authorities to pay the rent by fixing the rate at Rs 18/- per square foot, taking into account the prevailing rental value and the rent fixed for similarly situated private buildings. The said representation has not been considered till date.
1.4. Petitioner places reliance on G.O.Ms. No 186 Finance (EBS X) Department dated 22.12.2017, wherein instructions were issued to the Welfare Departments to fix rent for private buildings taken on lease based on the prevailing rental value in each District. He also relies upon the proceedings of the Additional Collector, Medchal-Malkajgiri District, dated 01.07.2021, wherein rent was fixed at Rs.17.50 per square foot for a private building occupied for Government SC College Boys Hostel at Jeedimetla, situated in the same District. Despite the said Government Order and the fixation made by the Additional Collector in the same District, Respondents failed to extend similar treatment to her building, thereby acting in an arbitrary
The State is obligated to pay rent for occupied private property, while courts cannot override administrative determinations unless proven arbitrary.
Mere recommendation of Board of Officers, which has not been agreed to by the tenant in this case, does not form a binding contract between landlord and tenant.
State authorities are required to provide fair compensation and avoid arbitrary actions, particularly in contractual matters.
Point of Law : Every State action must be informed by reason and it follows that an act uniformed by reason is per se arbitrary.
A property owner retains a right to claim rent for the duration that possession is unlawfully held by the tenant, even post-vacation notice.
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.
The central legal point established in the judgment is the application of G.O.(Ms).No.92, Municipality Administration and Water Supply Department dated 03.07.2007, which mandated a 15% increase in re....
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