LIFE INSURANCE CORPORATION OF INDIA Vs. DISTRICT JUDGE ETAH
LAWS(ALL)-2008-9-13
HIGH COURT OF ALLAHABAD
Decided on September 02,2008

LIFE INSURANCE CORPORATION OF INDIA Appellant
VERSUS
DISTRICT JUDGE, ETAH Respondents

JUDGEMENT

S. U. Khan, J. - (1.) -Landlords respondent Nos. 2 to 5, Magan Bihari Kapoor and others filed an application for enhancement of rent under Section 21 (8) of U. P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 against tenant petitioner. The agreed rent was Rs. 2,875 per month. Landlords stated that market value was Rs. 12,76,000, hence rent must be fixed at 1/120 of the said figure, i.e., Rs. 10,634 per month. Landlords also filed valuer's report. R.C. and E.O/S.D.M., Etah did not agree with the report of the valuer filed on behalf of the landlords. Taking pragmatic view of the matter, R.C. and E.O. held that in the year 1978, rent was settled at Rs. 2,875 per month and during intervening period of about eight years, market value must have doubled. Accordingly, R.C. and E.O. fixed monthly rent @ Rs. 5,000 per month payable with effect from the date of the order, i.e., 27.3.1996.
(2.) BEFORE R.C. and E.O., the case had been registered as Case No. 6 of 1996. Application by landlords was filed on 26.3.1993. It appears that number, i.e., Case No. 6 of 1996, was allotted afresh in 1996. Against the said order, landlords filed Misc. Civil Appeal No. 56 of 1996. Lower appellate court held that building was situate in an important locality and was near cinema hall, roadways bus-stand, Court's campus and officers' residence. Lower appellate court only and only on the basis of valuer's report filed by the landlord held that market value given in the said report, i.e., Rs. 12,76,000, was correct. Accordingly, lower appellate court fixed the rent @ Rs. 10,000 per month w.e.f. April, 1993.
(3.) AS far as direction of the lower appellate court for payment of the enhanced rent with effect from the month following the date of the application is concerned, it is quite in accordance with Section 21 (8) of the Act. R.C. and E.O. had wrongly directed the payment of the enhanced rent with effect from the date of order. However, I do not agree with the lower appellate court regarding market value and quantum of rent. Valuer's report, which is sole basis of the judgment of the Lower appellate court, has been annexed as Annexure-5 to the writ petition. The report was submitted by Sri S. B. Siromani, registered architect. It is mentioned in the report that total area is 736 square meters out of which covered area is 441.55 square meters. In the report, first the valuation of construction was assessed at Rs. 1,60,216. Thereafter, it is mentioned as follows : "Add for the rise in cost index in Etah @ 446% of the total cost as above (i.e., Rs. 7,14,563 which was in respect of building).";


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