Madras High Court

A.V.S.Balaji vs A.Parasuraman on 5 July, 2021

                                                                        C.R.P.(NPD)No.3598 of 2018

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                  DATED : 05.07.2021

                                                           CORAM

                                   THE HON'BLE Mr. JUSTICE G.K.ILANTHIRAIYAN

                                              C.R.P.(NPD)No.3598 of 2018
                                              and C.M.P.No.20140 of 2018

                     A.V.S.Balaji                                             ... Petitioner

                                                            Vs.

                     A.Parasuraman                                            ... Respondent


                     Prayer :- Civil Revision Petition is filed under Section 25 of the Tamil
                     Nadu Building (Lease & Rent Control) Act, against the judgment and
                     decree dated 04.07.2018 passed in R.C.A.No.22 of 2016 on the file of the
                     VII Small Causes Court, Chennai, confirming the judgment and decree
                     dated 26.11.2014 made in R.C.O.P.No.1706 of 2012 on the file of the XIV
                     Small Causes Court, Chennai.


                                          For Petitioner     : Mr.A.Laxmi Raj Rathnam

                                          For Respondent     : Mr.P.Rajendra Kumar




                     Page 1 of 10


https://www.mhc.tn.gov.in/judis/
                                                                              C.R.P.(NPD)No.3598 of 2018

                                                             ORDER

This Civil Revision Petition is directed as against the judgment

and decree dated 04.07.2018 passed by the learned VII Judge, Small Causes

Court, Chennai (herein after called as “Rent Control Appellate Authority”)

in R.C.A.No.22 of 2016 confirming the judgment and decree dated

26.11.2014 passed by the learned XIV Judge, Small Causes Court, Chennai

(herein after called as “Rent Controller”) in R.C.O.P.No.1706 of 2012,

thereby fixing the fair rent for the petition premises.

2. The petitioner is the tenant and the respondent is the landlord.

The landlord filed petition in R.C.O.P.No.1706 of 2012, for fixation of fair

rent for the petition premises and the learned Rent Controller fixed fair rent

for petition premises at Rs.56,593/- per month. Aggrieved by the same, the

tenant preferred an appeal before the learned Rent Control Appellate

Authority and the same was dismissed by confirming the order passed by

the learned Rent Controller. Aggrieved by the same the tenant filed this

present Civil Revision Petition.

https://www.mhc.tn.gov.in/judis/ C.R.P.(NPD)No.3598 of 2018

3. The case of the landlord is that he rented out the petition

premises ad measuring 1008 sq.ft. plinth area for the monthly rent of

Rs.23,760/- for non-residential purpose to the tenant. The tenant is also

using open space ad measuring 480 sq.ft., which is exclusively available for

the petition premises. The tenant is doing various business in the petition

premises viz., in the name and style of Krishna Travels, Krishna Driving

School, Krishna Xerox, Krishna couriers, agency for Rathi Meena travels

ticketing and real estate businesses. The petition premises is situated in very

busy and commercial locality. It is situated very nearby schools, hospitals,

hotels, IAS training center, colleges, market, departmental store, etc. The

land value about Rs.6 crores per ground and he prayed for fixation of fair

rent.

4. Per contra, the tenant filed counter and stated that initially the

petition premises was rented out to the tenant in the year 2007 for the

monthly rent of Rs.18,000/- and within a period of two years, the rent was

enhanced to the tune of Rs.23,760/-. The tenant is paying continuously the

agreed rental amount. In fact, the landlord had sent a letter dated 19.07.2012

https://www.mhc.tn.gov.in/judis/ C.R.P.(NPD)No.3598 of 2018

called upon the tenant to vacate the petition premises and handed over the

same for the landlord's own occupation. Therefore, the intention of the

landlord is very clear that only to evict the tenant from the petition

premises, the present petition has been filed for fixation of fair rent, though

the tenant is paying a sum of Rs.23,760/- as monthly rent.

5. On the side of the landlord, he examined P.W.1 and marked

Ex.P.1 to Ex.P.4. On the side of the tenant, no witnesses were examined and

no documents were marked. On perusal of the material produced on record

and considering both the oral and documentary evidence adduced by the

respective parties and also the submissions made by the learned counsel on

either side, the learned Rent Controller fixed fair rent of Rs.56,593/- per

month and the same was also confirmed by the learned Rent Control

Appellate Authority. Aggrieved by the same, the present Civil Revision

Petition has been filed.

6. The learned counsel appearing for the tenant would submit that

the landlord simultaneously filed eviction petition in R.C.O.P.No.362 of

https://www.mhc.tn.gov.in/judis/ C.R.P.(NPD)No.3598 of 2018

2015 on the ground of willful default and the same was allowed. The tenant

vacated the petition premises as early as on 03.01.2019 and now he is facing

the suit for damages and recovery of rental arrears. Unfortunately when the

petition for fixation of fair rent was posted for further cross-examination of

P.W.1, the tenant and his counsel, who appeared on behalf of him before the

Court below, fell ill and both were admitted to hospital for their heart

aliment. Both were undergone surgery in their hospitals as such, they could

not be able to produce their evidence before the learned Rent Controller.

6.1. He further submitted that, the value of the land has valued at

Rs.3,24,00,000/- per ground, on the basis of the sale deed produced by the

landlord, in respect of the property situated at 2nd Avenue, Anna Nagar,

Chennai. Whereas the petition premises is situated at 5th Avenue, Anna

Nagar, Chennai. Therefore, it cannot be taken into consideration to fix the

value of the land. He further submitted that while calculating the value of

the building, the learned Rent Controller included the common car parking

area along with the petition premises. Therefore, he prayed for

determination of fair rent afresh.

https://www.mhc.tn.gov.in/judis/ C.R.P.(NPD)No.3598 of 2018

7. Per contra the learned counsel appearing for the landlord

submitted that the petition premises is located in prime commercial area and

the tenant is running his driving school in the petition premises. He also

conducted various business in the petition premises such as travel agency,

Xerox copier, etc. In fact, the learned Rent Controller fixed the land value

only at Rs.3,24,00,000/-, as per Ex.P.3, the sale deed which was marked by

the landlord. Whereas the petition premises is situated at 5th Avenue, Anna

Nagar and its value is more than the building situated at 2nd Avenue, Anna

Nagar. Therefore, he prayer for dismissal of the Civil Revision Petition.

8. Heard Mr.A.Laxmi Raj Rathnam, learned counsel appearing

for the tenant and Mr.P.Rajemdra Kumar, learned counsel appearing for the

landlord.

9. The landlord leased out the petition premises situated in the

Ground Floor portion in MIG Flat at No.77/87, Z Block, 5th Avenue, Anna

Nagar, Chennai-40. It is for non-residential purpose ad measuring 1008

sq.ft., of plinth area. The monthly rent for the petition premises was fixed at

https://www.mhc.tn.gov.in/judis/ C.R.P.(NPD)No.3598 of 2018

Rs.23,760/-. After completion of evidence on the side of the landlord, the

tenant did not produce any witness and did not mark any document, in his

favour, since the tenant and his counsel admitted to the hospital for their

heart aliment. Therefore, they could not be able to appear before the learned

Rent Controller and failed to produce any document and also witness to

sustain their version.

10. The landlord examined P.W.1, who is the Civil Engineer and

his report was marked as Ex.P.1. By relying upon the sale deed, which was

marked as Ex.P.3., the learned Rent Controller fixed the land value at

Rs.3,24,00,000/- per ground. On perusal of Ex.P.3, the sale deed is in

respect of the premises situated at New No.180/2, Old No.400/2, 2nd

Avenue, Anna Nagar, Chennai-40. The said premises is located in Manasa

Apartments, Flat No.2, Ground floor. Whereas, the petition premises is

situated at 5th Avenue of Anna Nagar, Chennai-40. The same value had been

taken into consideration and fixed the land value at Rs.3,24,00,000/- per

ground. According to the tenant the land value is only at Rs.2,00,00,000/-

and the fair rent to be fixed for the petition premises accordingly.

https://www.mhc.tn.gov.in/judis/ C.R.P.(NPD)No.3598 of 2018

11. Insofar as the amenities provided for the petition premises is

concerned, the basic amenities and schedule-I amenities were provided to

the petition premises as such, the learned Rent Controller rightly considered

the schedule-I amenities at 12% and the age of the building is taken as 35

years. Insofar as the value of the building is concerned, the learned Rent

Controller had taken at Rs.494/- as construction cost with 20% for basic

amenities. Therefore, this Court feels that the value of the building is rightly

fixed by the learned Rent Controller and as far as the value of the land is

concerned, it has to be reduced to Rs.2,00,00,000/- per ground. Now the

tenant has vacated the petition premises as early as on 03.01.2019.

Considering the above, this Court calculated the fair rent as follows :

The value of the land fixed as follows :-

1008/3=336 sq.ft.

                                   336 X 2,00,00,000/2400                = 28,00,000
                                   Depreciated cost of construction      =      5,17,015
                                                                               33,17,015
                                   12% for schedule-I amenities          =      3,98,042
                                                            Total        = 37,15,057
                                         Rent @ 12%                      =      4,45,807
                                         Fair rent per month             =       37,151




https://www.mhc.tn.gov.in/judis/
                                                                            C.R.P.(NPD)No.3598 of 2018

It comes to Rs.37,151/- and this Court feels that it can be rounded to

Rs.35,000/- per month, since the tenant already vacated the premises as

early as on 03.01.2019. Accordingly, the monthly rent is fixed at

Rs.35,000/- (Rupees thirty five thousand only) for the petition premises.