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2022 (8) TMI 157 - SC - Indian Laws


Issues Involved:
1. Applicability of the West Bengal Premises Tenancy Act, 1997 (Act 1997) based on the rent amount.
2. Inclusion of municipal taxes as part of the rent.
3. Jurisdiction of the civil suit under Section 106 of the Transfer of Property Act, 1882 (TP Act).
4. Interpretation of Sections 230 and 231 of the Kolkata Municipal Corporation Act, 1980 (Act 1980) and Section 5(8) of the Act 1997.
5. Automatic increase of rent under Section 18 of the Act 1997.

Detailed Analysis:

1. Applicability of the West Bengal Premises Tenancy Act, 1997 (Act 1997) Based on the Rent Amount:
The primary issue was whether the Act 1997 applies to the tenancy agreement in question. The appellant argued that the total rent, including municipal taxes, exceeded Rs. 10,000 per month, thus exempting the tenancy from the Act 1997. However, the court held that the rent payable under the agreement was Rs. 10,000 per month, excluding municipal taxes. Therefore, the Act 1997 was applicable as the rent did not exceed the specified ceiling limit.

2. Inclusion of Municipal Taxes as Part of the Rent:
The appellant contended that municipal taxes should be included in the rent, relying on Sections 230 and 231 of the Act 1980 and Section 5(8) of the Act 1997. The court examined the provisions and previous judgments, notably Calcutta Gujarati Education Society v. Calcutta Municipal Corporation and Popat and Kotecha Property v. Ashim Kumar Dey. It concluded that while municipal taxes can be recovered as arrears of rent, they do not constitute part of the rent unless explicitly agreed upon in the tenancy agreement.

3. Jurisdiction of the Civil Suit under Section 106 of the Transfer of Property Act, 1882 (TP Act):
The appellant filed a suit for eviction under Section 106 of the TP Act, claiming that the Act 1997 did not apply. The court upheld the High Court's decision that the suit was impliedly barred by the Act 1997, as the rent was Rs. 10,000 per month, making the Act applicable. Therefore, the civil suit under Section 106 of the TP Act was not maintainable.

4. Interpretation of Sections 230 and 231 of the Kolkata Municipal Corporation Act, 1980 (Act 1980) and Section 5(8) of the Act 1997:
The court analyzed whether municipal taxes payable by the tenant under these sections should be considered part of the rent. It referred to the judgment in Calcutta Gujarati Education Society, which stated that taxes could be recovered as arrears of rent but did not become part of the rent. The court emphasized that the tenancy agreement did not specify that the rent included municipal taxes, thus municipal taxes were separate from the rent.

5. Automatic Increase of Rent under Section 18 of the Act 1997:
The appellant argued that the rent should automatically increase by 5% every three years under Section 18 of the Act 1997, potentially exceeding Rs. 10,000. The court dismissed this argument, clarifying that Section 18 applies only when fair rent is determined by the Controller under Section 17, which was not the case here.

Conclusion:
The court dismissed the appeals, affirming that the Act 1997 was applicable as the rent was Rs. 10,000 per month, excluding municipal taxes. The civil suit under Section 106 of the TP Act was thus barred. The court upheld the High Court's interpretation that municipal taxes, while recoverable as arrears of rent, did not constitute part of the rent unless explicitly stated in the tenancy agreement. The automatic increase provision under Section 18 of the Act 1997 was deemed inapplicable. The judgment emphasized adherence to the statutory definitions and contractual terms in determining the applicability of tenancy laws.

 

 

 

 

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