V.S.Kanodia Etc.Etc vs A.L.Muthu (D) Thr. Lrs. & Anr

2. The appellants are tenant whereas respondents are the landlord of tenanted building. Initially, the dispute related to non-residential premises situated in Chennai, namely, (i) 2nd and 3rd floors of the building at D.No.23, TTK Road, (Mowbray’s Road), Chennai, (hereinafter referred to as 1st property) (ii) 2nd floor of the front and rear building at 22, TTK Road, (Mowbray’s Road), Chennai-18 (hereinafter referred to as the 2nd property) and (iii) ground floor of the front and rear and 1st floor rear of the building at 22, TTK Road, (Mowbray’s Road), Chennai-18 (hereinafter referred to as the 3rd property) but in these appeals, we are concerned with the rent fixed in respect to 2nd and 3rd property situated at 22, TTK Road, (Mowbray’s Road), Chennai-18

3. In respect of 1st property at D.No.23, TTK Road, Chennai, the contractual rent was Rs. 6210/- per month, which was increased to Rs. 18,847/- by an order passed by Small Causes Court, Chennai on 28.6.1996 in RCOP NO.; 1046 of 1994 in a petition filed by respondent-landlord under Section 4 of the Tamil Nadu Buildings Lease and Rent (Control) Act, 1960 (hereinafter referred to as the Act). In the said case, for determination of fair rent, market value of the land was assessed @ Rs.25 lakhs per ground. The appellant-tenant has preferred an appeal against the said order in RCA No. 557/2004 and another appeal has been preferred by respondent-landlord in RCA No. 1196/1996 before the Rent Control Appellate Authority (Small Causes Court) Chennai.

4. In respect of 2nd and 3rd property situated at 22, TTK Road, Chennai-18, the respondent-landlord filed two separate petitions under Section 4 of the Act for fixing the monthly rent of respective portions, registered as RCOP No. 1176 and 1177/1997. After hearing the parties, those petitions were determined by Rent Controller by a common judgment and decree dated 28.9.2004 whereby fair monthly rent of the properties were fixed at Rs. 46,422/- and Rs.95,220/- respectively, after taking into consideration the market value of land @ Rs.50 lakhs per ground.

5. Against the aforesaid common judgment, both the respondent-landlord and appellant-tenant preferred appeals in RCA No. 1393, 1394, 1404 and 1405 of 2004. After taking into consideration the relevant evidence and submission of parties, by a common order and judgment dated 14.10.2006 the appellate authority, (8th Judge) Small Causes Court, Chennai fixed the monthly rent at Rs. 58,329/- and Rs. 1,21,877/- respectively, allowing the appeal preferred by landlord and dismissing the appeals preferred by tenant. The rent was fixed on the basis of valuation of land @ Rs.65 lakhs per ground. Against the aforesaid order, the Revision petitions preferred by appellant-tenant were dismissed by the impugned common judgment dated 28.4. 2008.

9. So far as “value of the ground site” is concerned, parties exhibited their respective evidence which were noticed by Rent Controller and the Appellate Authority. The respondent-landlord produced the evidence to claim the value of the ground site at more than 1 crore per ground and in support of which a sale deed No. 99/88 dated 9.12.97 pertaining to door no. 241/1, T.T.K. Road Extention, Ambujammal Street, Alwarpet, Chennai-18 was filed as Exhibit A4. It was also brought to the notice of the Authority that an extent of 470 sq. ft. of land had been sold for Rs. 14,00,000/- and on that basis the value per ground is Rs.71,48,936/- and that the petition mentioned building is situated very near to Radhakrishnan Road but the property pertaining to Exhibit A4 is situated at a distance of 2 and ½ furlong from the petition mentioned building and, therefore, in the classification report Exhibit A9, the ground site per ground had been calculated at Rs.1 crore. The R.W.2, engineer on behalf of the tenant in his Examination in Chief had mentioned that the ground site where the petition mentioned building is situated is not owned by the Petitioner as conveyed by the tenant and, therefore, for the calculation of the monthly fair rent the value of the ground site had not been taken into account, no sale document had been filed on behalf of the tenant. The R.W.2, in his cross examination had mentioned that the petition mentioned building is situated on the TTK Road and near the junction of Cathedral Road and Radhakrishnan Road. There is a Church near the petition mentioned building and ‘Woodland Hotel’ is situated at a distance of 1 and ½ furlongs from the petition mentioned building and opposite to it there is a hotel known as ‘Mowbrays Inn’. Further, on the opposite site of the ‘Woodland Hotel’, St. Abbas School is situated. The Nilgiris Supermarket is situated at a little distance from it and a Music Academy is also there near the petition mentioned property. It was further mentioned that no document had been perused for the valuation of the ground site. Hence, the argument advanced that the petition mentioned building is situated on the T.T.K. main road but the entrance pertaining to the tenant is through the Biship lane was not accepted both by the Rent Controller and the Appellate Authority.

6. Before the Courts below, the respondent-landlord took plea that the appellant-tenant had been on the front portion of the ground floor for 43 years and in the rear side portion of the ground floor and also at the rear side portion of the 1st floor and rear side portion of the 2nd floor for the past 17 years and in the front portion for the past 16 years. The petition building comes under Class I building with R.C.C. roofing and all the three basic amenities are available. The plinth area of the front portion of the ground floor is 1719 sq. ft., and the rear portion is 1766 sq. ft. and the lumber portion is 341 sq. ft., latrine portion is 136 sq.ft., G.I. Sheet portion is 300 sq. ft. and on the 1st floor rear side portion is 1766 sq. ft., Latrine portion is 121 sq. ft. and on the 2nd floor the front portion is 1800 sq. ft. and the rear portion is 1766 sq. ft. and that the plinth area of the latrine portion is 121 sq. ft.. Furthermore, the petition building is situated at a very important and busy business area being Mylapore and, therefore, the value of the ground site per ground will be Rs.75 lakhs. Hence, prayer was made to fix the monthly fair rent of the petition building at Rs.77,706 and Rs.1,54,126 respectively.

Provided further that the cost of provision of amenities specified in Schedule 1 shall not exceed-

17. So far as the findings of the appellate authority with respect to ‘classification of building’, ‘depreciation’, ‘plinth area’, ‘construction charges’ and of basic amenities of the petition building as affirmed by the High Court are not interfered with by this Court and they are upheld. There shall be no order as to costs.