MALIK CHAND Vs. RAM SARUP GUPTA

JUDGEMENT

(1.) THIS Civil Revision has been referred to a larger Bench as the correctness of the judment in Sant Lal v. Hira Lal, 1936 H. R. R. 273. 1976 was doubted by the learned Single Judge.

(2.) IT would be appropriate to briefly state the facts leading to this reference which are in a very narrow compass. The landlord Ram Sarup filed an application for the fixation of fair rent under Section 4 (2) (a) of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (hereinafter called the Act) against the tenant Malak Chand on 2nd March, 1985. According to the landlord; Lakhmi Chand, brother of tenant Malak Chand, took the demised premises on rent at the rate of Rs. 15/- per month besides house-tax on 1st September, 1953. Subsequently, Malak Chand, the petitioner in this case, took over the lease rights and the possession of the shop in dispute from Lakhmi Chand and the landlord accepted him as the tenant with effect from 1st September, 1960, at the same rate of rent. Later on, on 1st October, 1962, the rent was enhanced to Rs. 22/- per month besides the house tax. In his petition for fixing fair rent, the landlord had mentioned that the rent prevailing in the locality for similar buildings was Rs. 300/-per month during the year 1962 and since the general level of prices had risen manifold, the basis rent as well as the fair rent of the demised premises were required to be determined by the Rent Controller The stand taken by the tenant in the written statement was that in the beginning the shop was let out at Rs. 16/- per month; whereas it was enhanced to Rs. 22/- in the year 1962. It was averred by him that the rent of similar buildings in the locality was not more than Rs. 30/- per month. Hence, the fair rent was not to be fixed more than Rs. 30/- per month. The learned Rent Controller after appreciation of the evidence on record found that the rent for the similar buildings prevailing in the area where the shop in dispute was situated was Rs. 100/- per month in the year 1962. Therefore, the basic rent of the shop was determined at Rs. 100/-per month and after applying the wholesale price index as per the formula laid down in the Act, the fair rent was determined by the Rent Controller to be Rs 225/- per month. In appeal, at the instance of the tenant, the learned Appellate Authority affirmed the findings of the Rent Controller The landlord had also filed an appeal for increasing the amount of fair rent before the Appellate Authority His appeal was also dismissed Dissatisfied with the above said order, both the parties filed two separate revision petitions in this Court Civil Revision No 2012 of 1987 has been filed by the tenant; whereas Civil Revision No. 2268 of 1987 has been filed on behalf of the landlord.

(3.) BEFORE proceeding further, it would be necessary to mention that Section 4 (2) of the Act, which deals with the determination of fair tent, was substituted by a new Sub-section by Haryana Act No. 14 of Prior to the amendment, Section 4 (2) reads as under :-" 4 (2)--In fixing the fair rent under this section, the Controller shall first determine the basic rent which shall be the rent agreed upon between the landlord and the tenant preceding the date the application in respect of the building or rented land, or where no rent has been agreed upon, the basic rent shall be determined on the basis of the rent prevailing in the locality for similar building or rented land at the date of application. " After-She amendment by Haryana Act No. 14 of 1976, Section 4 (2) of the Act was substituted as follows:- "4 (2) In using the fair rent under this section, the Controller shall first determine the basic rent which shall be. (a) In respect of the building the construction whereof was completed on or before the 31st day of December, 1961 of land let out before the said date, the rent prevailing in the locality for similar building or rented land let out to a new tenant during the year 1962; and (b) in respect of the building the construction whereof is completed after the, 31st day of December, 1961 or land let out after the said date, the rent agreed upon between the landlord and the tenant preceding the date of the application, or where no rent has been agreed upon, the basic rent shall be determined on the basis of the rent prevailing in the locality for similar building or rented land at the date of application. "