RADHA VENKATARAMAN Vs. FUTURA POLYSTERS LTD

JUDGEMENT

(1.) CHALLENGING the Order in R.C.A.No.157/1996, fixing fair rent at Rs.11,915/-, landlady has preferred this revision. Whether Appellate Authority was justified in reducing the fair rent from Rs.18,601/- fixed by the Rent Controller to Rs.11,915/-, is the point falling for consideration in this revision.

(2.) DEMISED premises is No.1, Arch Bishop Mathias Avenue, Chennai-28, now D.No.7, Turn Bulls Road Extension, Nandanam, Chennai-35. The building was constructed at an extent of 4 grounds and 400 sq.ft. The property was originally owned and possessed by Petitioner's mother. She let out the above said premises to M/s.Indian Organic Chemicals Ltd., for the purpose of using the premises as Guest House and so, the tenancy was residential in nature. Contractual rate of rent was Rs.3,000/- p.m. During her life time, Petitioner's mother filed Petition under Section 4(1) of Tamil Nadu Buildings [Lease and Rent Control] Act, 1960, [for short, 'the Act'] in R.C.O.P.No.974/1991 for fixation of fair rent at Rs.27,055/-. Petitioner has pleaded that the premises is located in a posh residential locality, close to Chamiers Road, which connects Mount Road at Nandanam Signal and the rent paid for the premises is very low.

(3.) APPELLATE Authority reduced fair rent to Rs.11,915/-. No reasonings or figures are given for reducing the fair rent. APPELLATE Authority has not taken into consideration the cost of building. On the basis of Ex.R-6 - Guideline value, APPELLATE Authority fixed land value at Rs.6,00,000/- per ground and only on the basis of value of ground, rent was fixed at Rs.11,915/-.