Sarkaria, J. - (1.) Whether the principle of apportionment is applicable to the fixation of standard rent of a premises under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (for short, the Act); if so, whether on the facts of the case, the principle has been rightly invoked - is the two-fold question that falls for decision in these three appeals by special leave directed against the judgment of the High Court, of Judicature at Bombay.
(2.) The material facts are as under: A big compound measuring 11,150 sq. yards at 156, Tardeo Road, Bombay, belonged to Raja Bahadur Moti Lal Mills Ltd., Bombay, appellant No. 1. The Mills were shifted from these premises in the year 1930. In 1932, the whole of this estate including the structures standing on a part of it, was let out to Sound Studios Ltd. Between the years 1932 and 1940, some part of it was sub-let by Sound Studios to Sheraj Ali, who was the proprietor of M/s. Famous Cine Laboratory and another part of Neon Signs (India) Ltd., and the rest of the estate continued to be with Sound Studios. Thereafter, Sound Studios went out of the picture and the whole estate was let out to National Studios Ltd. on October 23, 1940 at a monthly rent of Rs. 1700/- for a period of two years.
(3.) In July, 1941, National Studios surrendered their lease and Sheraj Ali became a direct tenant under appellant 1 in respect of the premises in his possession, called for the sake of identification, 983/1 (whole) and 983/2 (Ground floor). On December 1, 1941 and again in November, 1942, Sheraj Ali took on rent additional portions of this estate so that his original rent, which was Rs. 400/-, was first increased to Rs. 600/- and then to Rupees 700/- and thereafter in November, 1942 to Rs. 875/-. By November, 1947, Sheraj Ali was paying Rs. 1200/- per month as rent for the premises demised to him including some new structures which had been built.;