SUDHIR NARAIN, J. - (1.) THE Regional Food Controller, Bareilly, is tenant of a portion of House No. 156, Civil Lines, Bareilly. This accommodation was let out to the Food and Civil Supply Department on 2.10.1975 for a period of five years on monthly rent of Rs. 1350. Respondent No. 3 is the landlady of this house. She filed application under Section 21(8) of U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 (hereinafter referred to as the Act). It was stated that the rent be fixed according to the market value of the property as provided under Section 21(8) of the Act, and accordingly, the rent was sought to be enhanced at the rate of Rs. 5000 per month. Petitioners opposed this application.
(2.) MAIN objection was that the annual letting value of the building in question as assessed by the Nagar Mahapalika was Rs. 12,000 only and on the basis of this assessment, the market value of the building comes to only to Rs. 1,20,000. The sole question was regarding the valuation of the property in question. The rate of rent was to be determined on the basis of market value of the building. The tenant is liable to pay a sum equivalent to one-twelfth of ten per cent of the market value of the building under tenancy.
(3.) RESPONDENT No. 3 submitted the report of valuer and petitioners also submitted report of the valuer. Both valuers valued the market-value of the property taking into consideration : (i) the cost of the land, (ii) cost of construction of the building after taking into consideration the depreciation value of the consideration.;