JUDHISTHIR DEY AND OTHERS Vs. CALCUTTA METROPOLITAN DEVELOPMENT AUTHORITY
LAWS(CAL)-1996-1-38
HIGH COURT OF CALCUTTA
Decided on January 17,1996

Judhisthir Dey And Others Appellant
VERSUS
CALCUTTA METROPOLITAN DEVELOPMENT AUTHORITY Respondents


Referred Judgements :-

MARTIN BURN LIMITED V. STEEL AUTHORITY OF INDIA LTD. [REFERRED TO]
MUNICIPAL CORPORATION OF DELHI VS. GURNAM KAUR [REFERRED TO]


JUDGEMENT

Shyamal Kumar Sen, J. - (1.)This is an application for appointment of Commissioner for ascertaining the amount of rent or occupation charges for the area comprising of 2865 sq. ft. on the 3rd Floor of the premises No. 1, Abnoy Guha Road, Calcutta as on 30th Nov., 1994 after making necessary local inspection.
(2.)The facts involved, inter alia, are that the petitioners at all material times were and still are the owners of the said premises. On or about 13th July, 1981 the petitioners inducted the respondent as a monthly tenant in respect of office space at a monthly rental of Rs. 2/- per sq. fit. by a tenancy agreement dated 13th July, 1981 entered into by and between the petitioner No. 1 for himself as well as for the petitioners Nos. 2 and 3 and the respondent. The said tenancy was for a period of five years with a renewal clause for a further period of five years or multiple thereof at the option of the respondent subject to enhancement of rent as will be mutually agreed upon by and between the petitioners and the respondent under the terms mentioned in the petition. It has been contended on behalf of the petitioners that the petitioner No. 1 has paid all the taxes and occupation charges of his shares. The said tenancy agreement elapsed on the expiry of five years i.e. from 12th July 1986 to 1991 and thereafter from 1991-96. The respondent at the moment is not using the said premises. The relevant clause with regard to the renewal and for fixation of rent is set out herein below:
"That the tenancy shall be effective for a period of five years for the present and the tenancy shall at the option of the second party be renewed for a further period of five years or multiple thereof subject to fixation of rent by special officer-II, C.M.D.A. (or by another officer authorised by the C.M.D.A. to assess such fair rent) and the landlord by negotiations and mutual consent for such successive renewal of the tenancy and other terms".

(3.)It appears from the aforesaid conditions that the fixation of rent on renewal will be made by the Special Officer-II, CMDA. and the land- lord by negotiations and mutual consent for such successive renewal of both the parties. The respondent vide their letter dated 23rd July 1986 informed the petitioner No. 1 that the decision of enhancement of rent was pending before the appropriate authority but in the meantime requested him to submit the rent bill on the previous rate till the enhancement. By the said letter it was assured that the balance enhanced rent would be paid later on with retrospective effect. Copy of the said letter dated 23rd July 1986 has been annexed to the petition and marked "A". The parties herein could not mutually agree to settle the enhanced rate of rent inspite of repeated reminders. The respondent is in occupation of the said premises without paying the rent or occupation charges. Without prejudice the petitioners have accepted the rent un till March 1988. Copies of the letters dated 20-5-1988,11 -7-88 and 3-8-1988 have been annexed to the petition and marked "F". The respondent by a letter dated 29-10-92 informed the petitioners that rent of the premises has been assessed at the rate of Rs. 6217/- per month inclusive of taxes, costs of repairs and maintenance charges with effect from 13th July 1982. Copy of the said letter dated 29-10-92 has been annexed and marked "G". The petitioner could not agree to the said proposal for enhancement of rent by mere Rs. 487/- which according to the petitioners was most unreasonable and was not in commensurate with the prevailing market rate of rent. The said enhancement of existing rate of rent by Rs. 487/- would be approximately Rs. 0.20 paise per sq. ft. The petitioners by their letter dated 18-3-1991 pointed out to the respondent that the prevailing market rate of rent in the area was Rs. 12/- per sq. ft. and in that view of the matter requested the respondent to settle the monthly rent at the rate of Rs. 10.00 per sq. ft.
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