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2008 (12) TMI 808 - HC - Indian Laws

Issues Involved:
1. Maintainability of proceedings under the Rent Control Act.
2. Fixation of fair rent by the Rent Controller and the Appellate Authority.
3. Exemption of buildings owned by public charitable institutions from the Rent Control Act.
4. Determination of the value of the land and built-up area for fair rent calculation.

Issue-wise Detailed Analysis:

1. Maintainability of Proceedings under the Rent Control Act:
The petitioner/tenant argued that the proceedings under the Rent Control Act were not maintainable as the respondent/landlord, a Public Charitable Institution, was exempt from the Act per a notification (G.O.Ms. No. 2000, Home, dated 16-8-1976) issued under Section 29 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. This contention was previously raised and rejected by the Rent Controller and the Appellate Authority. The court analyzed the objects and purposes of the respondent society, which included the protection of animals and promotion of vegetarianism. Despite these charitable objectives, the court found no evidence of property or funds dedicated for public charitable purposes, registration under Section 12-A of the Income Tax Act, or any obligation in the nature of a trust. Consequently, the court held that the respondent had waived the benefit of exemption and that the proceedings were maintainable.

2. Fixation of Fair Rent by the Rent Controller and the Appellate Authority:
The Rent Controller initially fixed the fair rent at Rs. 38,693/- per month, which was contested by both parties. The Appellate Authority dismissed the tenant's appeal and enhanced the fair rent to Rs. 53,190/-. The court examined the built-up area and the rate of construction as determined by the Engineers of both parties. The Rent Controller and the Appellate Authority largely accepted the measurements and rates provided by the tenant's Engineer, with minor adjustments. The court found no fault with the adoption of 15% for basic amenities and the age of the building being fixed at 70 years by the Appellate Authority.

3. Exemption of Buildings Owned by Public Charitable Institutions from the Rent Control Act:
The court discussed the nature of exemptions under Sections 29 and 30 of the Rent Control Act. The exemption under Section 29 is discretionary and can be granted or withdrawn by the government, whereas the exemption under Section 30 is statutory and applies to all buildings meeting specific criteria. The court emphasized that exemptions conferred as a benefit or privilege must be claimed by the entitled person and can be waived. The court referred to the Supreme Court's decision in Lachoo Mal v. Radhye Shyam, which held that benefits conferred by the Act could be waived unless contracting out was expressly prohibited by the statute. The court concluded that the respondent had waived the exemption benefit under the notification and upheld the maintainability of the proceedings.

4. Determination of the Value of the Land and Built-up Area for Fair Rent Calculation:
The court scrutinized the determination of the land value and built-up area by the Rent Controller and the Appellate Authority. The Engineers of both parties provided different measurements and rates. The Rent Controller and the Appellate Authority accepted the measurements and rates provided by the tenant's Engineer, with the Appellate Authority fixing the land value at Rs. 70,00,000/- per ground based on a rational assessment of the evidence, including Sale Deeds marked as exhibits. The court found no material irregularity or illegality in the Appellate Authority's determination of the land value and cost of construction and upheld the enhanced fair rent.

Conclusion:
The court dismissed the Civil Revision Petitions, finding no justification to interfere with the Appellate Authority's order on both the maintainability and merits of the case. The connected miscellaneous petition was also dismissed.

 

 

 

 

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