Madras High Court
Sha Dhanraj Chunilal vs C. Vedachalam Chettiar on 14 February, 1986
Equivalent citations: (1987)1MLJ385
ORDER Natarajan, J.
1. This revision petition relating to a case arising under the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 (hereinafter referred to as the 'Act') lies in a narrow compass. The respondent herein who is the landlord of a non-residential building leased out to the petitioner filed R.C.O.P. No. 3848 of 1983 under Section 5 of the Act for fixation of fair rent for the leased premises at the rate of Rs. 1,928 per month. The petitioner herein (tenant) raised an objection that in prior proceedings, viz., H.R.C. No. 2449 of 1985, the fair rent for the building has already been fixed at Rs. 600 per month and in view of that fixation of fair rent, the landlord is not entitled to file another petition for fixation of fair rent. The Rent Controller sustained the preliminary objection raised by the petitioner herein and dismissed the landlord's petition. Against the said order, the landlord filed an appeal, R.C.A. No. 173 of 1985. The Appellate Authority who heard the appeal held that the Rent Controller was not entitled to dismiss the landlord's petition on a preliminary point and instead, the Rent Controller ought to have examined the claim of the landlord on its merits, as well. He has, therefore, allowed the appeal and remitted the petition for a full enquiry. Against the order of remand the tenant has preferred this revision.
2. Before reference is made to Section 5 of the Act, the prior proceedings for fixation of fair rent call for mention. The respondent herein had leased the premises to the petitioner for non-residential purpose on a monthly rent of Rs. 400. In the year 1978, the respondent filed H.R.C. No. 344 of 1978 for fixation of fair rent as in his opinion the rent of Rs. 400 per month was too low. Instead of giving any relief, the Rent Controller fixed the fair rent at Rs. 300 per' month. Against, the order of the Rent Controller, the respondent filed H.R.A. No. 565 of 1978. The appellate authority fixed the fair rent at Rs. 600 per month by his order dated 19th March, 1978. Against the said order, the respondent filed C.R.P. No. 3457 of 1978 to this Court but eventually he withdrew the petition. Consequently, the fair rent fixed by the appellate authority in H.R.A. No. 544 of 1978 became, final.
3. After a lapse of five years, the respondent filed R.C.O.P. No. 3545 of 1983. It is in this petition the tenant raised the objection that Section 5 of the Act prohibits the filing of a second petition for fixation of fair rent.
4. On a look at the terms of Section 5, we find that the section contains three sub-sections. Under Sub-section (1), it is laid down that if the fair rent of a building has been fixed (or refixed) under the Act, no further increase in such fair rent shall be permissible except in cases where some addition, improvement or alteration has been carried out at the landlord's expense and at the request of the tenant. Sub-section (2) lays down that if there is a decree or diminution in the accommodation or amenities provided the tenant may claim a reduction in the fair rent fixed. Sub-section (3) provides that if the fair rent has been fixed before the date of commencement of Tamil Nadu Buildings (Lease and Rent Control) Act, then the landlord or the tenant may apply to the Rent Controller to fix the fair rent. Section 6 provides for awarding increased rent in cases where any new tax or cases has become payable by the landlord, provided such increase is not attributable to any upward revision of rent by the landlord.
5. On a reading of Section 5 of the Act, it is seen that the Act does not provide for a second application being made for fixation of fair rent where such rent has already been fixed under the provisions of the Act. In this case, admittedly the prior petition H.R.C. No. 2442 of 1978 and the appeal H.R.A. No. 546 of 1978 had been filed under Section 5 of the Act. The fixation of fair rent by the appellate authority was after the amendment Act of 1973 which had come into force. In such circumstances, unless the landlord proves that he has effected any improvements or addition to the building or provided additional amenities in response to the request of the tenant, he cannot file another petition for fixation of fair rent. It is common ground that in this case, the petitioner does not seek to raise the fair rent on the ground of any improvement or addition to the building or on the ground of providing additional amenities. In such circumstances, the Rent Controller was right in holding that a second petition for fixation of fair rent will not lie.
6. Mr. Sundararajan, Learned Counsel for the respondent argued that it will be most unfair, inequitable and unjust for a landlord to be asked to be content with a fair rent that was once fixed and not to ask for revision of fair rent, even after a lapse of several years, when the cost of living has gone up considerably subsequent to the original order of fixation of fair rent. It may be that the grievance of the respondent is justified. But in view of the rigid terms of Section 5 of the Act, there is no scope for entertaining a second petition for revision of fair rent on grounds of equity and good conscience. Mr. Sundararajan, invited my attention to Rule 12(f) of the Rules framed under the Act which sets out the procedure to be followed in the disposal of applications filed under the provisions of the Act. The Rule no doubt says that in respect of every application filed under the Act, the Controller or the authorised officer should give notice to the parties and afford them reasonable opportunity to prove their case and then record evidence and thereafter pass a considered order on the basis of the evidence adduced in the case. But on the basis of this rule, the respondent cannot be heard to say that even though no relief can be given by the Rent Controller, in the second petition under Section 6 of the Act, he is obliged to record evidence and thereafter only dispose of the petition. In the face of Section 5 of the Act, any recording of evidence or rendering a finding that the landlord is entitled to payment of higher rate, of rent would only be an exercise in futility.
7. For the aforesaid reasons, the revision has to succeed and the order of the Rent Controller in R.C.O.P. No. 3549 of 1983 will stand restored. There will be no order as to costs.