Harassment of landlords due to lack of proper revision of rent even by departments of Central Government causing litigation and brain drain. Fir rent and regular revision should be assured.

Link of related judgment under study:

Maharshi Commerce Limited Versus The Principal Chief Commissioner of Income Tax, West Bengal And Sikkim And Ors. - 2026 (7) TMI 1036 - CALCUTTA HIGH COURT

Earlier order of High Court referred in above:

Date: 27th August, 2025. passed by:

THE HIGH COURT AT CALCUTTA

Maharshi Commerce Limited Versus The Principal Chief Commissioner of Income Tax, West Bengal And Sikkim & Ors. - 2025 (8) TMI 1844 - CALCUTTA HIGH COURT

Rent- freezing, difficult to get revision in spite of specific law and contracts

Land lords felt harassed and helpless when tenants occupying highly valuable properties do not pay fair rent. Rent control legislation are also big hardship for land lords. Dealy in fixation of fair rent is usual as cases linger for decades before concerned authorities and courts like Rent Controller or Rent Tribunal.

Deposit of low historical rent with rent controller is found an easy way by the tenant to keep tenancy protected without much costs Though the land lord may not receive rent from the Rent Controller for decades. For example, author faced similar situation because tenants did not revise rent as per clear law and author had to approach Rent Controller by filing petition for fixation of fair rent in year 2004 and petitions are still pending.

Due to personal reasons some tenants left the premises under lock and key for almost a decade, did not pay rent regularly to the Rent Controller also.

It is another time taking, long procedural and documentation process to get rent from the Rent Controller (RC). RC is supposed to send intimation of each deposit made by tenant which should be monthly . However, only one intimation was sent for each tenant, this can be considered an intimation that now rent is being deposited with RC and landlord cannot demand monthly rent from tenat. Court of RC

For rent claim landlord has to search documents at RC obtain details, prefer claim, all procedures involves costs and take time. So many land lords do not claim

This is story of small landlords letting out small properties for residential purpsoes.

We find that even big corporate landlords have to struggle for revision of rent and collection of rent even from government departments. Many times they may have to approach Courts.

For example, Cases above referred are under study.

In this case land lord is body corporate and tenant is Income -tax Department.

Fromm case status as available at website of High Court it is noticed that the case was filed on 27.04.2026 and has been fixed for different purposes and processes for at least ten times and ultimately it results into restoration of matter to the The respondent nos. 4 and 5 who are directed to reconsider the request of the petitioner for issuance of rent reasonableness certificate by taking into consideration of the lease

For better understanding order dt. 17.07.2026 is reproduced below with highlights added:

Maharshi Commerce Limited Versus The Principal Chief Commissioner of Income Tax, West Bengal And Sikkim And Ors. - 2026 (7) TMI 1036 - CALCUTTA HIGH COURT

No.- WPO/207/2026

Dated:- July 14, 2026

HON'BLE JUSTICE KRISHNA RAO

Appearance:

For the Petitioner: Mr. Avinash Kankani, Adv. Mr. Sagnik Mukherjee, Adv.

For the Respondent nos. 1-3: Mr. Prithu Dudhoria, Adv. Mr. Amit Sharma, Adv. Mr. Abhishek Kr. Agrahari, Adv.

ORDER

1. The petitioner has filed the present writ application challenging the impugned decision taken by the hiring committee dated 23rd February, 2026.

2. Learned Counsel for the petitioner submits that on the earlier round of litigation, this Court by an order dated 27th August, 2025 in WPO/589/2025 directed the respondent nos. 4 and 5 to take steps for issuance of Rent Reasonableness Certificate at the earliest subject to the compliance of all necessary formalities by the petitioners. After the order passed by this Court, the petitioners have forwarded the deed of lease dated 2nd December, 2015 to the hiring committee by a communication dated 29th October, 2025 with the request to consider the same and issue the rent reasonable certificate.

3. The petitioner has further relied upon the assessment/re-assessment of the fair rent relating to the private building taken on lease by the Central Government Departments wherein the reasonable rent is to be assessed according to the alternative method that is-

i) Recognized principles of valuation and

ii) Prevailing market rent.

Counsel for the petitioner submits that without considering the deed submitted by the petitioner and the assessment/re-assessment fair rent relating to the private building taken on lease by the Central Government Departments, the hiring committee has issued the rent reasonableness certificate by holding that:-

i) According to the recognized principle of valuation (i.e. on the basis of the present value of the property) Rs. 30/- (in words Rupees Thirty only) per sq. ft. per month of Carpet Area. The monthly rent will be Rs. 12,96,900/- (in words Rupees Twelve lakh Ninety Six thousand Nine hundred only).

ii) According to the prevailing market rent Rs. 75/- (in words Rupees Seventy five only) per sq. ft. per month of Carpet Area. The monthly rent will be Rs. 32,42,250/- (in words Rupees Thirty Two lakh Forty Two thousand Two hundred Fifty only).

4. Counsel for the petitioner submit that as per the deed relied by the petitioner the monthly rent for the year 2014 was Rs.120 per sq. ft. per month but the rent hiring committee has issued the rent reasonableness certificate by considering Rs. 30/- per sq. ft. per month or Rs. 75/- per sq. ft. per month which is neither the prevailing monthly rent nor the deed relied by the petitioner.

5. The petitioner has filed the affidavit-of-service showing service of notice upon respondents but in spite of service of notice none appears on behalf of respondent nos. 4 and 5.

6. Considering the above, this Court finds that the petitioner has forwarded the deed to the hiring committee on 29th October, 2025 but the committee has not considered the same. This Court also find that the hiring committee has also not considered the assessment/reassessment of the fare rent relating to the private building taken on lease by the central government department wherein the reasonable rent is to be assessed in two alternative method that is recognized principles of valuation and the prevailing market value.

7. In view of the above, the rent reasonableness certificate issued by the respondents dated 23rd February, 2026 which was forwarded to the petitioner on 24th April, 2026 is set aside and quashed.

8. The respondent nos. 4 and 5 are directed to reconsider the request of the petitioner for issuance of rent reasonableness certificate by taking into consideration of the lease deed submitted by the petitioner as well as the Annexure 61(refer SOP No. 8/5) with regard to the assessment/re-assessment of the fair rent relating to the private building to take on lease by the central government department within a period of six weeks from the date of receipt of this order and to communicate the same to the petitioner within a week thereafter.

9. Accordingly, WPO/207/2026 is disposed of.'

Un quote:

The above order is in second round of litigation as mentioned in the judgment. The order in first round was as flows:

WPO No.589 of 2025

Date: 27thAugust,2025.

1. The petitioner had given certain portions of the subject premises on lease to the respondent nos.1, 2 and 3. There is an agreement between the parties. The petitioner prays for enhancing/revising the rent in respect of the leased out premises.

2. The Court is of the opinion that the dispute between the parties is absolutely contractual in nature. There is no public element involved in the instant writ petition.

3. It will be open for the petitioner to approach the competent forum for relief, if so advised.

4. The petitioner has also prayed for a direction upon the respondent nos.4 and 5 for issuance of the rent reasonable certificate. As regards the issuance of rent reasonable certificate, communications are annexed to the writ petition to suggest that certain documents are wanting from the petitioner.

5. The respondent nos. 4 and 5 are directed to take steps for issuance of rent reasonable certificate at the earliest subject to compliance of all necessary formalities by the petitioners.

6. The writ petition stands disposed of.

7. Urgent photostat certified copy of this order, if applied for, be supplied to the parties upon compliance of all legal formalities.

(AMRITA SINHA, J.)

Unquote:

From this case we can feel difficulties being faced by landlords even in case of properties let out to departments of the Central Government.

Contractual rent:

Contractual rent arrangements in nature of commercial contract should be preferred. We find that in case of new tenancies there are provisions for rent revision periodically with minimum increase and revision as per market at interval of certain period of 3 - 5 years. In such cases disputes are less because landlord get reasonable rent and have option to increase rent or get premises vacant.

We have also faced experience of falling rent, in such situation landlord reduces rent, if does not reduce, tenants can find another property at similar or reduced rent.

Therefore, it is time to abolish rent control laws and let parties enter into contracts or let tenant vacate within reasonable time.