Municipal Corporation Of The City Of ... vs Oriental Fire & General Insurance Co. ... on 8 September, 1994
The Division Bench decision in the case of Municipal Corporation of Ahmedabad v. Oriental Insurance (Supra) has laid down in no uncertain terms that in case of a tenanted premises for the period prior to 1.4.84, the principles of Devan Daulat Rai Kapoor's case (Supra) and Dr.Balbir Sing v. M/s.M.C.D., reported in AIR 1985 SC 33 would not apply and further that in view of the proviso (aa) to S.2(1A), the contractual rent received by the owner will be the annual rent. In the instant case the period is certainly a period prior to 1.4.84 and what has been made the basis is the contractual rent but that does not mean that prior to 1.4.84 the contractual rent could not be considered as a relevant factor. In the instant case, looking to the location where the premises in question is situated and looking to the area concerned in each of these cases and the amount of the contractual rent, which was being paid by the respondent - Bank, it cannot be said that the amount of contractual rent was excessive. Not an iota of material was placed on record to show that it was excessive. Despite this, the Small Causes Court has held without any basis, by making bald reference to the decisions, that the contractual rent was excessive. In this view of the matter, we find that the orders, which have been passed by the Small Causes Court in all these Appeals, details of which have been given herein-before, cannot be sustained in the eye of law and the same deserve to be quashed and set aside.