//
archives

Renting

This tag is associated with 2 posts

Section 4 of the Act reads as under: “4. Fixation of Fair Rent. – (1) The Controller shall on application made by the tenant or the landlord of a building and after holding such enquiry as he thinks fit, fix the fair rent for such building in accordance with the principles set out in the following sub-sections: (2) The fair rent for any residential building shall be nine per cent gross return per annum on the total cost of such building. 3) The fair rent for any non-residential building shall be twelve per cent gross return per annum on the total cost of such building. 4) The total cost referred to in sub-section (2) and sub- Section (3) shall consist of the market value of the site in which the building is constructed, the cost of construction of the building and the cost of provision of anyone or more of the amenities specified in schedule 1 as on the date of application for fixation of fair rent. Provided that while calculating the market value of the site in which the building is constructed, the Controller shall take into account only that portion of the site on which the building is constructed and of a portion upto fifty per cent, thereof of the vacant land, if any, appurtenant to such building the excess portion of the vacant land, being treated as amenity; Provided further that the cost of provision of amenities specified in Schedule 1 shall not exceed- i) in the case of any residential building, fifteen per cent; and ii) in the case of any non-residential building, twenty- five per cent, of the cost of site in which the building is constructed and the cost of construction of the building as determined under this section.” From the principles set out in sub-Sections (2) to (4) of Section 4 it is apparent that market value of the site on which the building is constructed is an important factor to be taken into consideration for fixing the fair rent of the building. 15. Reverting to the facts of this case, we find that the appellants are tenant of three premises of which the respondents are the landlords. Out of the three premises, the first premises is a non-residential building constructed on land bearing D.No.23, T.T.K. Road, Chennai relating to which fair rent has already been determined by the Rent Controller in RCOP NO. 1046 of 1994. In the said case, the Rent Controller (Small Causes Court), Chennai by judgment dated 28.6.1996 determined the market fair rent on accepting the market value of the land at Rs.25 lakhs per ground. Against the said judgment, appeals have been preferred by both the appellant-tenants and the respondent-landlords but no order of stay has been passed by the appellate authority; matter is still pending. With regard to rest two rented premises, the building are situated on the adjacent land bearing D.No. 22, TTK Road, Chennai which are the subject matter of dispute. The mere fact that the appeal filed by appellants and respondents remain pending for disposal for more than 8 years and during the pendency the respondent-landlord filed two petitions under Section 4 of the Act before the Rent Controller, cannot be made a ground to deprive the appellants-tenants of their legitimate right to rely on a market value of adjacent land (D.No. 23, TTK Road, Chennai) already determined by the Rent Controller. Even if the appeals are dismissed by the appellate authority, the market value of the adjacent land as determined will remain Rs. 25 lakhs per ground. In the cases in hand, it was not open to the appellate authority to ignore the market value of the adjacent land already determined on the ground of pendency of an appeal. The High Court failed to appreciate the aforesaid fact though it was a fit case for the High Court to interfere under Article 227 of the Constitution of India. 16. In the result, the appeals are allowed in part; the impugned judgments of the Appellate Authority dated 14.10.2006 as affirmed by the High Court, so far as it relates to “market value of the land” is concerned, are set aside; Appeals, RCOP No. 1393, 1394, 1404 and 1405 of 2004 are remitted to the appellate authority (learned VIIIth Judge, Court of ‘Small Causes Court’, Chennai) for determination of limited issue relating to the market value of the land on which the building premises is situated (D.No. 22, TTK Road, Chennai-18) taking into consideration the evidence on record including Exh.A-4, Exh.A-9 and the market value of the adjacent land as was determined by the Rent Controller in RCOP No. 1046 of 1994, etc., preferably within six months. 17. So far as the findings of the appellate authority with respect to ‘classification of building’, ‘depreciation’, ‘plinth area’, ‘construction charges’ and of basic amenities of the petition building as affirmed by the High Court are not interfered with by this Court and they are upheld. There shall be no order as to costs.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOs. 5218-22 OF 2012 (ARISING OUT OF SLP(C) NO.20550-20554 OF 2008) V.S. KANODIA ETC. ETC. … APPELLANTS VERSUS A.L.MUTHU (D) THR. LRS. & ANR. … RESPONDENTS J U D G M E N T SUDHANSU JYOTI MUKHOPADHAYA,J. 1. Leave granted. These appeals have … Continue reading

T.P.Act – S.111 – Demised property belongs to Wakf – father (original tenant) died – suit filed against and suit notice issued to only one of the sons leaving other legal heirs – Maintainability of the suit on the face of non-joinder of all the legal heirs. Implied surrender of possession raised – Mere abandonment of possession does not satisfy doctrine of surrender. Whether there is need to issue quit notices separately to each of the legal heirs – On the death of original tenant, tenancy rights devolve on his heirs and all of them will be joint tenants under a single tenancy – Quit notice issued to one of them as also suit against him is good. >HELD: A tenancy can be determined in accordance with Section 111 of the Transfer of Property Act. According to clauses (f) & (g) of Sectgion 111 of T.P.Act, a lease of immovable property can be determined by express surrender or by implied surrender. Whether there has been implied surrender on the part of the other legal heirs of the deceased tenant or not is the moot question.

THE HON’BLE SRI JUSTICE T.CH.SURYA RAO SECOND APPEAL NO.490 OF 1999 10/03/2000 S.A.Wali Quadri petitioner Sadar Anjuman-e-Islamia, Rep. By its Secretary respondent <T.P.Act – S.111 – Demised property belongs to Wakf – father (original tenant) died – suit filed against and suit notice issued to only one of the sons leaving other legal heirs – … Continue reading

Blog Stats

  • 2,887,736 hits

ADVOCATE MMMOHAN

archieves

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 1,905 other followers
Follow advocatemmmohan on WordPress.com