O.Chinnappa Reddy, J. - (1.) On an application for fixation of fair rent filed b7 the tenant respondent, the Rent Controller, Barnala fixed the rent at Rs. 6101 per annum although the contractual rent was Rs. 1500/- per annum. While fixing the fair rent of Rs. 650/- per annum, the Rent Controller had noticed that the rent for the premises in 1938-39 was Rs. 151-24 Paise but he took into account the circumstances that since 1938.39, the town had developed consi- derably. He said "In the year 1938.39 the Phul Mandi itself was quite undeveloped and the shops and residential houses were a few only and those too were not all inhabited. The revolutionary change may be said to have occurred in the years nearing 1950. Population and the business of the town has increased many times; new theatres have been set up, quite a good number of Schools including High and Model Schools are running for the present and all sorts of facilities to live comfortably have come to the rescue of the inhabitants of the Mandi, Telephones and electricity, hospital with full equipments and other sufficiently qualified doctors have decorated the Phul Mardi without least doubt and its value and importance has increased. All the more applicant has tried to evade all answers intentionally as is clear from his cross- examination when he denies the knowledge of all material facts which cannot be said to be not in his knowledge." This order of the Rent Controller was set aside by the Appellate Authority and the fair rent was reduced to Rs. 151-24 P. The High Court confirmed the order of the Appellate Authority. Neither the Appellate Authority nor the High Court referred to the categoric finding of the Rent Controller but merely stated that the contention of the Landlady was not supported by the evidence on the file. That there must have obviously been some development between 1938-39 and 1965 should be self-evident. The Rent Controller had expressly pointed out in what manner the town of Phul Mandi had developed. The Appellate Authority and the High Court were in error in ignoring the categoric finding of the Rent Controller. We have no hesitation in setting aside the judgment of the Appellate Authority and the High Court and restoring that of the Rent Controller with costs through out, the appeal is allowed. The costs of this Court are fixed at Rs. 2,000/-. Appeal allowed.;