MAM CHAND Vs. MOHAN LAL KHANNA

JUDGEMENT

(1.) THE facts in this second appeal from order No. 125 -D of 1962, against the judgment of the Rent Control Tribunal dated the 12th April, 1962, admit of being stated in a moderate compass.

(2.) THE subject -matter of dispute is a godown comprising two rooms on the ground floor in building bearing municipal No. 1614 and situate in Darya Ganj, Delhi. It has not been disputed that the premises is non -residential. The construction of the premises in question started in beginning 1953 and was completed in about April, 1954. This finding of the Tribunal has also not been disputed. There has been some controversy as to whether it was the entire building which was constructed during this period or only the godown in dispute. I will advert to this controversy a little later. The godown was let to the tenant Respondent Mohan Lal on the 1st of May, 1957. On 6th of November, 1959, he made an application for fixation of standard rent. The Rent Controller fixed the rent at Rs. 94.50 Paise per month for a period up to 31st of March, 1961. Both the parties appealed and the case was remanded to the Rent Controller with a direction to fix the rent also for the period subsequent to March, 1961. By order dated the 30th of October, 1961, the Rent Controller fixed Rs. 94.50 Paise as the standard rent for the period up to the 31st of March, 1961, and at Rs. 39 from 1st of April, 1961. The Rent Controller applied Section 9(4) of the Delhi Rent Control Act and fixed the standard rent thereunder. Parties again went up in appeal. The Rent Control Tribunal upheld the decision of the Rent Controller regarding standard rent up to the 31st of March, 1961, but from 1st of April, 1961, revised the standard rent and increased it to Rs. 63.21 Paise. Rs. 94.50 Paise were fixed under Section 6(2)(a) of the Delhi Rent Control Act, 1958, as according to the Tribunal the construction of the building was started in July, 1953 and completed in March, 1954. The Tribunal further found that agreed rent was Rs. 105 per mensem which included the house -tax as provided in the lease -deed. As the landlord was, in view of Section 7(2) of the said Act, not entitled to realise house -tax from the tenant, the same was deducted from the said agreed rent of Rs. 105 per mensem and Rs. 94.50 Paise was fixed as the standard rent under Section 6(2)(a) for a period of seven years from the date of completion. Regarding standard rent from 1st April, 1961, the Rent Control Tribunal came to the conclusion that Section 9(4) was not applicable and the standard rent had to be fixed under Section 6(b)(2)(b) of the said Act at 7 1/2 per cent per annum of the aggregate of the reasonable cost of construction and the market price of the land comprised in the premises on the date of the commencement of the construction. The Tribunal fixed the price of the land at Rs. 100 per square yard and of the construction at Rs. 6,912.

(3.) MR . G.R. Chopra submitted that the entire building was not constructed between 1953 -54 but it was only the part in occupation of the tenant that was constructed in 1953 -54 and therefore Section 9(4) could in no case apply and it is possible to determine the cost of construction of that part of the building. Mr. Mohan Behari Lal on the other hand contends that the entire building was reconstructed in 1953 -54 and the Tribunal has so found. In the view that I have taken it is not necessary to consider this question.