ISHWAR SWAROOP SHARMA Vs. JAGMOHAN LAL

JUDGEMENT

(1.) Leave granted.

(2.) This appeal has been preferred from the decision of the High Court of Punjab and Haryana affirming the order of the Appellate Authority under Section 4 of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (hereinafter referred to as the 'Act') fixing the fair rent of the appellant's shop at Rs. 328/- per month w.e.f. 1989.

(3.) The shop was constructed in August 1962. The appellant let out the shop to the respondent in 1975 at a monthly rent of Rs. 200/-. In 1989, the appellant filed the application under Section 4 of the Act before the Rent Controller. The Rent Controller considering the evidence of similar premises in the locality, determined the fair rent payable in respect of the shop at Rs. 1000/- per month. The respondent preferred an appeal before the Appellate Authority. On the construction of Section 4 of the Act, the Appellate Authority came to the conclusion that the appellant having agreed to accept Rs. 200/- from the respondent, was not entitled to the market rent but to a percentage increase on the agreed rent. The Appellate Authority calculated the percentage of increase under Section 4 (3) of the Act and determined the fair rent of the shop to be Rs. 328/- per month with effect from the date of the application. This decision was affirmed by the High Court on revision.