RAM KRISHNA SHUKLA Vs. THAKUR SRI RAMJANKI

JUDGEMENT

(1.) THESE four applications in revision, under Section 25 of the Provincial Small Cause Courts Act, by the defendants, have been referred to a Division Bench, as a common point of law, which involves the interpretation of Section 6 (2) of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947, (Bihar Act III of 1947), hereinafter referred to as "the Act", arises for decision.

(2.) THE question for consideration is, can a landlord, who has let out his house on rent, in contravention of Section 6 (2) of the Act, recover the rent, from his tenant, at the contract rate?

(3.) FROM the above provisions of the Act, its intendment is quite clear. The Act was enacted to regulate the letting of buildings, to control rent of such buildings and to prevent unreasonable eviction of tenants therefrom in the State of Bihar. The Act provides that if a tenant is already in possession of a building, obviously at the ''notified date", which means, under Section 2(f), of the Act, the date of the commencement of the Act, or the date on which the Act is applied to any local area, other than the local areas specified in the schedule to the Act, and, if he thinks that the rent of the building in his occupation is excessive, he can make an application, to the Controller under Section 5(1), for determination of fair rent of the building in his possession. Under Section 5(1) the Controller can even 'suo motu' take action under it, if he is satisfied that the rent is excessive. Under Section 5 (2) the Controller thereafter, if he is satisfied that the rent of the building is excessive, shall determine the fair rent for such build-ing, on a consideration of all the circumstances of the case mentioned in Section 5 (2). If, however, the building is not in occupation of any tenant, here also, obviously at the "notified date", and if the landlord desires to let out his building on rent, he shall get, first of all, the fair rent of such a building determined by the Controller under Section 6(1) before he actually lets out the building. Section 6(1), therefore, gives a right to the landlord as also to the prospective tenant to make an application to the Controller for determination of fair rent of the building, which is proposed to be let out on rent. Section 6 (1) gives power to the Controller, even, On his own motion, to determine fair rent of any such building; but if the application for determination of the fair rent is made either by the landlord or the prospective tenant the Controller has no discretion, but to determine the fair rent. Section 6(2) with which we are concerned, is important. It provides that it shall not be lawful for a landlord to let any building, the fair rent of which has not been previously determined under the provisions of Sub-section (2) of Section 5, or Sub-section (1) of Section 6. Section 8 (3) requires the Controller in every case, in which he determines, either under Section 5 (2) or Section 6 (1). or redetermines under Section 7, the fair rent of a building, to appoint a date with effect from which the fair rent so 'determined, or redetermined, shall take effect. Section 8 (2) provides that when the fair rent is so determined, or redetermined, any sum in excess of such fair rent paid by the tenant, whether before or after the notified date, but in respect of occupation for any period after the notified date, shall be refunded to the person by whom it was paid, or at his option otherwise adjusted.