KARNANI INDUSTRIAL BANK Vs. SATYA NIRANJAN SHAW

JUDGEMENT

(1.) THESE two appeals from the High Court at Fort William in Bengal raise a question as to the construction of the Calcutta Rent Act, 1920.

(2.) ON October 7, 1920, the appellants (hereinafter called " the bank ") took a lease from the respondents (hereinafter called " the landlords ") of premises, 3 and 4, Royal Exchange Place, Calcutta, for a term of three years from November 1, 1920, at a rent of Rs. 5400 a quarter, payable in advance. The premises at the time appear to have been let in tenements at monthly rents. In the lease there were stringent repairing covenants, under which the bank were to put the premises in substantial repair, expending at least Rs. 10,000, and to keep them in good repair. They were to eject such of the occupiers as they desired at their own risk and expense. There was the usual forfeiture clause, and the bank had an option to renew for a further term of three years. The bank were not able to evict the occupiers, and apparently took no steps to perform the repairing covenants. They paid the rent up to August 1, 1922, and no further. On August 15, 1923, the landlords served the bank with notice to determine the lease for breach of the repairing covenant, and on September 10, 1923, they instituted proceedings in ejectment, claiming possession, arrears of rent up to August 15, 1923, mesne profits and damages for breaches of covenant. On December 1, 1923, the bank made application under Section 15 of the Rent Act of 1920 to the Controller appointed under the Act to fix the standard rent of the premises and to grant a certificate of the standard rent. On December 13, 1923, the landlords filed a counter statement. On March 11, 1924, the Controller fixed the standard rent at Rs. 1420 per mensem and granted his certificate accordingly.

(3.) THE Rent Act of 1920 was only to be in force for three years from May 5, 1920, but by the Calcutta Rent Amendment Act of 1923 it was extended to the end of March, 1924. By the Calcutta Rent Amendment Act of 1924 it was further extended to the end of March, 1927, with a proviso that after March 31, 1924, it should cease to apply to any premises the rent of which exceeded Rs. 250 a month or Rs. 3000 a year on November 1, 1918.