IMBICHAMU Vs. IMBICHI PATHUMMABI

JUDGEMENT

(1.) This revision petition has been referred to us by our learned brother Balagangadharan Nair J. The reference order sets out the facts and the question that arises for decision and, therefore, we will extract the same in full.

(2.) It is necessary to read S.5(1) to 5(3).

(3.) In our view the proviso as substituted gives effect to what has been stated by the Full Bench in the passage quoted above. sub-s.(2) enables the court to take into consideration the property tax or house tax fixed for the building at the time of letting, (with respect, as rightly pointed out in the reference order, really the monthly rent on the basis of which such tax is fixed) in the property tax register or house tax register of the local authority. So also the earlier portion of the proviso enables the court to take into consideration the monthly rent on the basis of which the property tax or house tax for the building prevailing two years immediately before the date of the application was fixed. However, in no case can the fair rent exceed by more than 15% of the monthly rent on the basis of which the property tax or the house tax for the building, prevailing two years immediately before the date of the application, was fixed. But this does not mean that the criterion for fixation of fair rent is only monthly rent on the basis of which property tax or house tax for the building prevailing two years immediately before the date of the application was fixed. If that be so the provision in the proviso that the fair rent may be lower than such monthly rent but shall in no case exceed by more than 15% would have no meaning. The sum and substance of the provision of S.5 therefore is, the rent control court shall take into consideration all relevant facts including the rent on the basis of which the property tax or the house tax for the building prevailing at the time of letting was fixed (tax, as entered in the property tax register or house tax register of the local authority), as also the rent on the basis of which such property tax or house tax for the building prevailing two years immediately before the date of the application, was fixed. The provision only requires that it (fair rent) shall not exceed in any case by more than 15% of the monthly rent on the basis of which property tax or house tax prevailing two years immediately before the date of the application was fixed. Having pointed out the maximum or the upper limit, S.5 of the Act directs the Rent Control Court to consider not only the two factors made mention of therein but also all relevant considerations and materials that are placed before it as stated by the Full Bench in Kunhammad Keyi's case. This is clear from sub-s.(1) of S.5 which says that that court shall fix the fair rent.