- (1.) THE short point for decision in this application under Article 227 of the Constitution is whether the learned District Judge was justified in dismissing a tenant's application for fixation of rent on the ground that the parties had failed to adduce evidence on the basis of which the rent could be fixed.
(2.) THE facts of the case are simple and not seriously in dispute. On 26-12-1950, Dharam Paul took on lease a certain shop situate in the bazar of Palampur on a rent of Rs. 80/-per mensem. On 30-7-1951 the tenant applied to the Rent Controller for fixation of rent under the provisions of section 4, East Punjab Urban Rent Restriction Act. In the enquiry which followed neither the tenant nor the landlord produced any evidence about the prevailing rates of rent of similar buildings in the neighbourhood. The Controller examined the Property Tax Assessment Register of the Town Committee at Palampur and on the basis of the information contained in those documents, fixed the rent of the premises in question at Rs. 11/7/4 per mensem. The learned district Judge set aside this order and dismissed the application for fixation of fair rent by means of an order the concluding portion of which runs as follows: "the basic and fair rent fixed by the Rent Controller is not on the basis of the two factors laid down in the Act. I, therefore, accept the appeal and set aside the order of the Rent Controller. The application for fixation of fair rent shall stand dismissed. X X X. " Sub-sections (1) and (2) of Section 4, East Punjab Rent Restriction Act, 1949, are in the following terms: " (1) the Controller shall on application by the tenant or landlord of a building or rented land fix the fair rent for such building or rented land after holding such inquiry as the Controller thinks fit. (2) In determining the fair rent under this section, the Controller shall first fix a basic rent taking into consideration- (a) the prevailing rates of rent in the locality for the same or similar accommodation in similar circum stances during the twelve months prior to 1-1-1939, and (b) the rental value of such building or rented land if entered in property tax assessment register of the municipal, town or notified area committee, cantonment board) as the case may be, relating to the period mentioned in Clause (a) x x x. "
(3.) SECTION 15 of the said Act, which relates to appeals from the orders of a Rent Controller, runs as follows: "the appellate authority shall decide the appeal after sending for the records of the case from the Controller and after giving the parties an opportunity of being heard and, if necessary, after making such further inquiry as it thinks fit either personally or through the Controller. ";