Trust Jama Masjid Waqf No.31 vs M/S. Lakshmi Talkies & Ors

2. The brief facts are these. Trust of Jama Masjid Nawab Abdul Nabi Khan Chauk Bazar, Mathura (hereinafter referred to as `landlord') owns a piece of land admeasuring 914.89 sq. yds. situate in Mohalla Naugaza, Mathura (for short, `the said land'/ `the demised land'). Prior to June 1, 1970, the said land was let out to some other tenant who, with the consent of the landlord, built a Cinema Hall thereon. M/s Laxmi Talkies, a registered partnership firm purchased the super structure (Cinema Hall ) from the erstwhile tenant and took the said land on lease from the landlord for a rent of Rs. 70/- p.m. from June 1, 1970 for a term of 7 years vide lease deed executed on June 2, 1970. For brevity, we shall refer M/s Laxmi Talkies - lessee as `tenants'. The lease provided that in case one month's prior notice for renewal before the expiry of the lease was given by the tenants and landlord fails to renew then the lease shall continue for another term. The lease also provided that tenants will have a right of renewal of lease on the terms and conditions as agreed upon but on every renewal, the tenants shall be bound to enhance the rate of 2 rent at 5% on total rent of the year at the time of every renewal. The landlord claims that on expiry of 7 years of lease, there was no agreement between the parties with respect to renewal of lease and the rent. On the other hand, the tenants claim that on expiry of first term, the lease was renewed from June 1, 1977 at the increased rent of Rs. 105/- p.m. and thereafter got automatically renewed from June 1, 1984.

3. The U.P. Urban Buildings (Regulation of Lettings, Rent and Eviction) Act, 1972 (for short, `1972 U.P. Act') came to be amended by U.P. Act 28 of 1976 whereby Section 29-A was inserted. The newly inserted Section 29-A came into force on July 5, 1976. In the light of the provisions contained in Section 29-A, the landlord made an application for determination of the annual rent for the demised land before the RCEO, Mathura stating therein that the cost of the land leased out to the tenants was not less than Rs. 20 lakhs and, accordingly, they are entitled to have the rent fixed at Rs. 16,666.66 p.m. from July 5, 1976. The tenants contested the said application and raised the plea that the lease stood renewed from June 1, 1977 automatically and was operative upto 1991 and, therefore, no rent can be increased. They also disputed that the 3 market value of the land was Rs. 20 lakhs as suggested by the landlord.

12. In the circumstances, the order dated September 10, 2003 passed by the High Court and the order dated March 13, 1991 passed by the Rent Control and Eviction Officer, Mathura are set aside and Case no. 146 of 1988, Trust Jama Masjid, Mathura Vs. M/s Laxmi Talkies and Ors., is restored to the file of Rent Control and Eviction Officer, Mathura, for determination of the annual rent of the demised land afresh in accordance with law. Needless to say that 11 annual rent so determined shall be payable from the date stated in Section 29-A (5). We further direct that until the determination of annual rent under Section 29-A (5) and subject thereto, the tenants shall pay rent to the landlord at the rate of Rs. 10,000/- p.m. from the month of September, 2010 provisionally. The provisional rent so paid by the tenants shall be adjusted against the rent that may be finally determined under Section 29-A (5) of 1972 U.P. Act. The appeal of the landlord is allowed to the extent indicated above while the tenants' appeal is dismissed. No order as to costs.