1973 (12) TMI 106 - SC - Indian Laws

Supreme Court Upholds Tamil Nadu Rent Control Act for Contractual and Statutory Tenancies

The Supreme Court affirmed the applicability of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 to both contractual and statutory tenancies. ... - Issues Involved:1. Applicability of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 to contractual tenancies.2. Jurisdiction of the Rent Controller to fix fair rent for premises under contractual tenancy.3. Interpretation of specific provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.4. Validity of agreements modifying rent without a registered instrument.5. Constitutionality of amendments to the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.Issue-wise Detailed Analysis:1. Applicability of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 to Contractual Tenancies:The Supreme Court examined whether the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 applies to both contractual and statutory tenancies. The Full Bench of the Madras High Court concluded that the Act controls both types of tenancies, considering it a complete code that enables both landlords and tenants to seek the benefit of fair rent fixation, regardless of whether a contractual tenancy is in place or has been determined.2. Jurisdiction of the Rent Controller to Fix Fair Rent:The court analyzed whether the Rent Controller has jurisdiction to fix fair rent for premises under a subsisting contractual tenancy. The Division Bench of the High Court held that the premises were not exempted from the provisions of the Act, and thus, the Rent Controller had jurisdiction. The Supreme Court upheld this view, stating that the Act provides for fair rent fixation even during the subsistence of a contractual tenancy.3. Interpretation of Specific Provisions:Key sections of the Act were interpreted:- Section 2(6) and 2(8): Definitions of 'landlord' and 'tenant' were examined, indicating that these terms apply to both contractual and statutory tenancies.- Section 4: Allows both tenants and landlords to apply for fair rent fixation.- Sections 5 and 7: Discuss conditions under which rent can be increased or decreased and prohibit landlords from claiming rent in excess of the fair rent.- Section 10: Lays down conditions for eviction, including that landlords cannot apply for eviction before the expiry of a specified tenancy period.- Section 30: Exempts certain buildings from the Act's provisions, including those with monthly rents exceeding Rs. 250 for residential buildings and Rs. 400 for non-residential buildings.4. Validity of Agreements Modifying Rent:The court addressed whether an agreement modifying rent without a registered instrument is valid. The Division Bench ruled that any variation of rent reserved by a registered lease deed must be made by another registered instrument. The Supreme Court agreed, stating that the 1949 agreement to increase rent was invalid as it was not registered, making the rent payable below Rs. 400 per month.5. Constitutionality of Amendments:The amendment to Section 30 in 1964, which brought all non-residential buildings within the scope of the Act, was challenged on constitutional grounds. However, the court did not address this argument as the case was decided based on the rent being below Rs. 400 per month, making the amendment irrelevant to the decision.Conclusion:The appeals were dismissed, affirming the applicability of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 to both contractual and statutory tenancies, and the jurisdiction of the Rent Controller to fix fair rent during the subsistence of a contractual tenancy. The court also upheld the requirement for registered instruments to modify rent agreements and found no need to address the constitutional challenge to the 1964 amendment.