Section 8 in The Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947
8. Matters to be considered in determining fair rent.
(1)(a)For the purposes of this Act, the fair rent of a building shall be determined as for a tenancy from month to month.(b)The fair rent of a building in respect of which a municipal assessment has been made, shall for each month be one tenth of the amount of such assessment and the landlord shall not be entitled to recover from the tenant in addition to the amount, any municipal rates, taxes or cesses in respect of such building except in accordance with the provisions of Section 8-A.(c)In determining the fair rent of any other building under section 5 or 6, the Controller shall have due regard to the prevailing rates of rent in the locality for the same or similar accommodation in similar circumstances at any time during the twelve months preceding the first day of November, 1941, and to the increased cost of repairs, and in the case of a building which has been constructed after that date, also to any general increase in the cost of site and building construction:Provided that where the Controller is satisfied, on an application made to him by the landlord under section 5, that the rent of a building referred to in this clause is low, the Controller shall, in determining the fair rent of such building to be payable by a tenant, fix the rent of the building at a figure which shall not be less than the average monthly rent actually paid for the same or similar accommodation by tenant over the period of twelve months preceding the first day of November, 1941, increased by not more than 25 per cent of the average monthly rent so received by the landlord during the aforesaid period in addition to the enhancement, if any, on account of the increased cost of repairs or the general increase in the cost of sites and building construction, where such enhancement is admissible under the foregoing provision of this clause.Explanation. - For the purposes of this clause, where rent was charged by the landlord or actually paid by the tenant for the same building over the aforesaid period on any basis other than a monthly basis, the average monthly rent for such building shall be calculated at thirty times the average rent per day of the period in respect of which the rent was charged or actually paid.(2)When the fair rent of a building has been determined or re-determined, any sum in excess or short of such fair rent paid whether before or after the date appointed by the Controller under sub-section (3), in respect of occupation for any period after such date shall in case of excess, be refunded to the person by whom it was paid or at the option of such person be otherwise adjusted and in case of shortage be realised by the landlord as arrears of rent from the tenant:Provided that if a building is let out subsequent to the determination or re-determination of a fair rent, on a rent which is less than the fair rent so determined or re-determined the landlord shall not be entitled at any time to release the difference between the fair rent and the rent at which the tenant was admitted to occupation.(3)In every case in which the Controller determines or re-determines the fair rent of a building, he shall appoint a date with effect from which the fair rent so determined or re-determined shall take effect:Provided that in any case in which the fair rent is re-determined under subsection (1) of Section 7, the fair rent shall not take effect from any date earlier than the date on which the addition, improvement or alteration, referred to therein was completed:Provided further that in any case in which the fair rent is determined under section 5 or 6, the fair rent shall not take effect from any date earlier than three months prior to the date on which the application was made or, as the case may be, the proceedings were started by the Controller on his own motion.Explanation. - Municipal assessment in this section means the annual value of a holding comprising a building as determined under the Bihar and Orissa Municipal Act, 1922 or, as the case may be under the Patna Municipal Corporation Act, 1951 and, if the fair rent of only a portion of such building is to be determined, the proportionate annual value of such portion as may be determined by the Controller.
