1. Recently, I have come across a Case of my Cousin, where Landlord has filed a Section 8 Application under Maharashtra Rent Control Act, 1999, calling upon the Court to fix Standard Rent (essentially seeking huge increase in Rent), on the grounds that Suit premises is situate in prime commercial area and Rent has increased phenomenally in the immediate vicinity of Suit premises.
2. And I am told that Landlord is filing many such Applications against his tenants, and the Small Causes Courts are entertaining such Applications, and are happily granting Reliefs to the Landlords; and Tenants are compelled to pay sky rocketing increased Rent, and that too, under the umbrella of Rent Control Legislation.
3. And therefore, I dwelled upon the Maharashtra Rent Control Act, 1999, and looked thru the history of Rent Control Legislations in India, and in particularly, the history of Rent Control Legislations in Maharashtra, or to say, of the Bombay Province.
4. And then, I looked thru the relevant provisions of Maharashtra Rent Control Act, 1999, and I was shocked to find that Section 8 of the Maharashtra Rent Control Act, 1999, do not provide for fixation of Standard Rent on the grounds that Suit premises is situate in prime commercial area and Rent has increased phenomenally in the immediate vicinity of Suit premises.
5. And, therefore, the Small Causes Courts have NO jurisdiction to entertain any such Application u/s 8, and any such Application to fix Standard Rent, on the grounds that Suit premises is situate in prime commercial area and Rent has increased phenomenally in the immediate vicinity of Suit premises, deserves to be dismissed at the outset, with heavy costs.
6. That, Section 8 of the Maharashtra Rent Control Act, 1999, spells out the grounds under which the Application for fixation of Standard Rent, may be preferred, either by the Landlord or may be by the Tenant himself.
7. That, Section 7(14) of the Maharashtra Rent Control Act, 1999, defines the expression “Standard Rent”. According to that definition, the Standard Rent means: (i) The Rent fixed by the Court; or (ii) by the Rent Controller. [Section 7(14)(a)]. (iii) If the Rent is not fixed by the Court, then, the Standard Rent would be such Rent at which the subject premises was let out as on 1.10.1987. (iv) If the premises are let prior to 1.10.1987, then, the Standard Rent would be such Rent plus 5% increase, at which the premises were let out immediately prior to 1.10.1987. [Section 7(14)(b)(i) and (ii)].
8. Now coming to Section 8 of Maharashtra Rent Control Act, 1999, it sets out the grounds on which the Application for fixation of Standard Rent may be preferred.
9. Clause (a) of Section 8(1) carves out the first ground to fix the Standards Rent. It says, where the Court is satisfied that there is no sufficient evidence to ascertain the Rent at which the premises were let out in cases enumerated u/s 7(14)(b)(i) and (ii);
10. Clause (b) of Section 8(1) carves out the Second ground to fix the Standards Rent. It says, where premises have been let out at one point of time, as a whole or in parts, and in later point of time, in whole or in part;
11. Clause (c) of Section 8(1) carves out the third ground to fix the Standards Rent. It says, where premises have been let out for free or at a nominal rent; or for some consideration in addition to Rent;
12. Clause (d) of Section 8(1) carves out the fourth ground to fix the Standards Rent. It says, where there is any dispute between the Landlord and the Tenant regarding the amount of Standard Rent.
13. These are the only four grounds available, for to prefer an Application u/s 8, to fix Standard Rent.
14. Thus, it may be seen that ground that “Suit premises is situate in prime commercial area and Rent has increased phenomenally in the immediate vicinity of Suit premises”, is not a ground available to approach the Court u/s 8, to fix Standard Rent.
15. In such situations, the Landlords are only entitled for increase in Rent as provided u/ss 11 and 12 of the Maharashtra Rent Control Act, 1999.
16. If any such Application is filed u/s 8 by the Landlord, then, the Tenant may file an Application under Order VII Rule 11(a) read with Section 151 of CPC, 1908, calling upon the Court to Reject / dismiss said Application, for failure to disclose Cause of action. In such Application, the Landlord may be call upon to show, under which provision of Maharashtra Rent Control Act, 1999, the Court can exercise its jurisdiction and fix Standard Rent on the grounds that “Suit premises is situate in prime commercial area and Rent has increased phenomenally in the immediate vicinity of Suit premises”.
17. That, such Application
u/s 8 to fix Standard Rent, is a blatant misuse of machinery of Law by Landlords;
and entertaining such Applications, defeats the very spirit and purpose of the
Maharashtra Rent Control Act, 1999.
Sandeep Jalan
Adv.
https://www.litigationplatform.com/
Comments