NATIONAL SAMPLE SURVEY ORGANISATION Vs. CHAMPA PROPERTIES LTD

JUDGEMENT

(1.) Leave granted. Heard the learned Counsel.

(2.) The National Sample Survey Organization, the appellant herein was the tenant under the first respondent (for short the 'respondent') in respect of premises No. 25A, Shakespeare Sarani, Calcutta, a building constructed in 1925 with a carpet area of 16157 sq. ft. The premises was taken on lease on 1.6.1972 on a monthly rent of Rs. 13,733/- (at the rate of Rs 0.85 per sq. ft.). On a request by respondent for increase in rent, the appellant made a reference to the Hiring Committee for reassessment on 1.4.1986. Based on its recommendation, the rent was increased to Rs. 74,645/- per month (that is Rs. 4.62 per sq. ft.) with retrospective effect from 3.8.1983 and the increase was communicated as per the appellant's letter dated 27.7.1988. The very next day (28.7.1988), the respondent wrote to the appellant again requesting for reassessment of the rent for the period commencing from 3.8.1988 (that is, from the date of expiry of five years from the date of last increment) by referring the matter to the Hiring Committee. Acting on the said request, the appellant again made a request to the Hiring Committee, by letter dated 25.10.1988 for re-assessment of rent.

(3.) The Hiring Committee (consisting of three members - (i) Superintending Engineer, Calcutta Central Circle No. II, CPWD, (ii) the Estate Manager, and (iii) Surveyor of Works cum Executive Engineer, Calcutta Central Division No. IV CPWD) by its proceedings dated 6.6.1989, reassessed and recommended a rent of Rs. 13.10 per sq.ft. of carpet area (inclusive of all municipal taxes) with effect from 3.8.1988. The appellant found the increase suggested by the Hiring Committee was unreasonably high and therefore initiated correspondence with the Hiring Committee for reviewing the reassessment. When the matter was pending, the respondent, by letter dated 27.6.1989, requested the appellant to fix the rent at Rs. 19/- per sq.ft. plus municipal taxes.