Case Note & Summary
The dispute arose from a rent agreement between the appellant and respondent concerning a plot of land let out in 1957. The appellant, Vinaya Kumar Shukal, had let the land to Lakhpat Ram at an annual rent of Rs. 170. In 1968, the respondent constructed a building on the land with the appellant's consent. Following the insertion of Section 29-A in the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 in 1976, the appellant sought to have the rent fixed under this new provision. The application was dismissed by the delegated authority, which ruled that since there was an agreed rent, the provisions of Section 29-A(5) did not apply. The appellant's subsequent writ petition was also dismissed by the High Court. The Supreme Court, upon appeal, interpreted Section 29-A, concluding that the phrase 'such rent as may be mutually agreed upon' refers to agreements made after the enactment of the section, allowing for rent determination under subsection (5) even when a prior agreement existed. The court set aside the High Court's order and remanded the matter for reconsideration of the rent fixation application, emphasizing that existing agreements do not prevent statutory rent adjustments.
Headnote
A) Statutory Interpretation - Rent Agreements - Future Agreements Governed by Section 29-A - U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972, Section 29-A - The court held that agreements on rent made prior to the enactment of Section 29-A do not preclude the determination of rent under subsection (5) of Section 29-A, which applies to future agreements. The interpretation of 'may be' indicates future applicability, supporting the view that existing agreements do not bar statutory rent fixation (Paras 966-970).
Issue of Consideration
Whether an agreement on rent entered into prior to the enactment of Section 29-A of the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 bars the determination of rent under Section 29-A.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order and the delegated authority's decision, remanding the matter for reconsideration of the rent fixation application under Section 29-A.
Law Points
- Interpretation of rent agreements
- determination of rent under statutory provisions
- overriding effect of legislation
