The fixation of standard rent for an upscale apartment in Mumbai, which was rented to Maya Sunil Alagh, the wife of Britannia's former Managing Director. The main legal issue is whether the Maharashtra Rent Control Act, 1999, permits the fixation of standard rent for properties rented after October 1, 1987. The court ultimately dismissed Britannia's claim, affirming the applicability of the Act in determining the rent, much to the company's dissatisfaction.

1. Introduction

• Parties Involved: Britannia Industries Ltd. (Applicant) and Maya Sunil Alagh (Respondent).
• Property Dispute: Britannia contested the standard rent fixed for a luxury apartment in Malabar Hill, Mumbai, rented by Maya Sunil Alagh, claiming it should be much higher than the fixed rate of Rs. 805.
• Legal Question: Whether the Maharashtra Rent Control Act, 1999 allows for standard rent fixation for properties rented after October 1, 1987.

2. The Challenge

• Revision Applications: Britannia filed two revision applications challenging the judgment of the Small Causes Court and the Appellate Bench, which dismissed Britannia's claims and set the standard rent at Rs. 805.
• Britannia's Argument: The company argued that the Maharashtra Rent Control Act does not allow for the fixation of standard rent for properties rented after the specified date, thereby justifying their demand for market rent.

3. Factual Background

• Property History: Maya Sunil Alagh, the wife of Britannia’s then-Managing Director, was residing in the disputed apartment, initially agreed upon at a rent of Rs. 4,500 per month. However, the relationship between the tenant and landlord soured, leading to legal battles over the rent amount.
• Litigation: Over time, the rent dispute escalated, with Britannia demanding market rent of Rs. 6,00,000 per month, while the Respondent continued to pay the originally agreed amount, leading to court intervention.

4. Legal Proceedings

• Court's Decision: The Small Causes Court and Appellate Bench ultimately ruled in favor of the Respondent, fixing the standard rent as per the Maharashtra Rent Control Act, 1999, much lower than what Britannia sought.
• Britannia's Grievance: The company was aggrieved by the decision, arguing the lack of jurisdiction in fixing standard rent for properties rented after October 1, 1987.

5. Conclusion

• Outcome: The court dismissed Britannia's applications, upholding the standard rent fixed by the lower courts, affirming the applicability of the Maharashtra Rent Control Act, 1999, even for properties rented after the specified date.