MADHO LAL Vs. RAM DAS

JUDGEMENT

(1.) Under section 6(1) (A) (b) as well as under section 6(1) (B) (2) (b) of the Delhi Rent Control Act, 1958 (hereinafter called the Act) the annual standard rent in relation to any premises is to be a percentage of the aggregate amount of (1) the reasonable cost of construction and (2) the market price of the land comprised in the premises on the date of the commencement of the construction". The first factor was considered in Diwan Chand vs. Tirath Ram 1972 R C.R. 88. The second factor was briefly considered in Prem Kumar Bhatia Vs Shiv Dutt Sharma, 1969 R. C. R. 575. It was contended for the appellant that a later decision in Chuni Lal vs. Ram Parkash, 1990 RCR. 67, has impliedly taken a view different from the view expressed in Prem Kumar Bhatia vs Shiv Dutt Sharma. B. C, Misra, J., therefore, referred the following question to Division Bench, namely :- Whether the market price of lease-held land comprised in the tenanted premises as, on the date of the commencement of construction, is, for the purpose of determining the standard rent under section 6 of the Delhi Rent Control Act of 1958, to be determined in accordance with the principles laid down in Prem Kumar Bhatia vs Shiv Datt Sharma, 1969 Rent Control Jounal 644, or any other.

(2.) The landlord in all these three appeals (namely, S. A. Os. 57, 58 and 59 of 1970) is Madho Lal. As a displaced person, he was given lease of plot No. 15/1 of Government land without premium on a ground rent of Rs. 125.00 per annum. In 1952-53. he built on a part of this land three shops each on an area of 10 square yards. These shops were let out to three tenants who are the respondents in the three appeals at Rs. 40.00, Rs. 50.00 and Rs 50.00 per month respectively. Within two years of the commencement of the Act, the Additional Controller Shri B. K. Agnihotri fixed the standard rents of the shops of the tenants Ram Dass, Rawel Singh and Roop Chand at Rs. 11.00, Rs. 10/50 and Rs 8.62 respectively, after finding that the cost of construction of the shops let out to them was Rs. 1,489.00, Ks 1,373.00 and Rs, 1,179.00 and the market price of the land comprised in each shop on the date of the construction was Rs. 265.00, Rs. 260.00 and Rs. 210.00 respectively calculated at the rate of Rs. 21.00 per square yard. In the appeals filed by the landlord, the Rent Control Tribunal Shri P. S. Patter remanded the case for fresh disposal. In further appeals by the landlord to the High Court the cases were remanded back to the Tribunal for disposal in the light of the observations of the judgement of the High Court which is reported in Madho Lal vs. Roop Chaad, 1970 R.C.R. 26.

(3.) Shri Gian Chand Jain, Rent .Control Tribunal proceeded to determine the standard rent of the shops under section 6(1) (B) (2) (b) of the Act which was less than the standard rent fixed by the Additional Controller in the first instance. The appeals of the landlord were, therefore, dismissed. Hence these second appeals by the landlord.