Case Note & Summary
The case involved a dispute over the determination of fair rent for a shop under the Haryana Urban (Control of Rent and Eviction) Act, 1973. The appellant, Ishwar Swaroop Sharma, had let out the shop to the respondent, Jagmohan Lal, at a monthly rent of Rs.200/- in 1975. In 1989, the appellant applied to the Rent Controller for a fair rent fixation, which was initially set at Rs.1000/- per month. However, the Appellate Authority reduced this amount to Rs.328/- per month, stating that the appellant was entitled only to a percentage increase on the agreed rent due to the nature of the tenancy. The High Court affirmed this decision. The core legal issue revolved around the interpretation of 'agreed rent' in Section 4(2)(b) of the Act, particularly whether it applied to monthly tenancies. The appellant argued that the monthly nature of the tenancy meant that the agreement regarding rent ceased each month, thus there was no agreed rent at the time of application. Conversely, the respondent contended that the rent had been mutually agreed upon and accepted by the landlord. The court analyzed the statutory definitions and concluded that the term 'agreed rent' should be interpreted broadly to include any payment made for the use of the premises, regardless of the tenancy duration. The court upheld the High Court's decision, affirming the fair rent of Rs.328/- per month without costs.
Headnote
A) Rent Control - Fair Rent Determination - Monthly Tenancy and Agreed Rent - Haryana Urban (Control of Rent and Eviction) Act, 1973, Section 4(2)(b) - The court examined whether the term 'agreed rent' in Section 4(2)(b) applies to monthly tenancies and concluded that it does, allowing the agreed rent from 1976 to be considered as the basis for fair rent determination. The court held that the existence of a subsisting tenancy agreement at the time of application is crucial for fixing fair rent (Paras 1-4).
Issue of Consideration
Whether the agreed rent under Section 4(2)(b) of the Act includes monthly tenancies.
Final Decision
The Supreme Court upheld the decision of the High Court, affirming the fair rent of Rs.328/- per month as determined by the Appellate Authority, and dismissed the appeal without any order as to costs.
Law Points
- fair rent determination
- monthly tenancy
- agreed rent
- Haryana Urban (Control of Rent and Eviction) Act
- 1973
- statutory liability
