High Court of KeralaDivision BenchRevision petition partly allowed; Appellate Aut...

M.V. Manikandan and K. Ratheesh v. Mulakkiryath Khadeeja and Edamana Vlappil Khadeeja, R.C.Rev.No.123 of 2017, High Court of Kerala at Ernakulam

Case / Petition Number:R.C.Rev.No.123 of 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. B. Suresh Kumar
  • C. S. Sudha
Judgment Date
2022-12-08
Court Decision / Holding
In the result, the revision petition is allowed in part. The Appellate Authority’s decision to fix Rs. 5,630 per month is set aside to the extent of increasing the rent; the tenants are held liable to pay fair rent at Rs. 4,500 per month for the subject room.
Final Disposition
Revision petition partly allowed; Appellate Authority’s order in respect of rent fixation reduced; rent fixed at Rs. 4,500 per month for the subject room.

Parties to the Case

Appellants / Petitioners

  • M.V. Manikandan
  • K. Ratheesh

Respondents

  • Mulakkiryath Khadeeja
  • Edamana Vlappil Khadeeja

Legal Representation & Advocates

Counsels for Petitioners

  • • M. V. Amaresan

Counsels for Respondents

  • • R. Sudhish

Case Synopsis & Summary

This Kerala High Court Rent Control Revision concerns fixation of fair rent under Section 5 of the Kerala Buildings (Lease and Rent Control) Act, 1965 for a room in a shopping complex beneath a staircase. Tenants M.V. Manikandan and K. Ratheesh challenged the Appellate Authority’s order that refixed rent at Rs. 5,630 per month (Rs. 80 per sq ft for 70.37 sq ft) based on an Advocate Commissioner’s report, which showed the premises to be larger than the 45 sq ft claimed by landlords. The Rent Control Court had fixed Rs. 4,500 per month (Rs. 100 per sq ft for 45 sq ft). The Appellate Authority held that the premises’ peculiarities warranted a higher, per-room rent rather than a uniform rate; this was challenged by the tenants as unsupported by evidence and as a shift from the prior award. Landlords defended the Appellate Authority, arguing fair rent is a question of fact reviewable under Section 20, and relied on principles like Order XLI Rule 22 of the CPC and Santha v. 1st Additional District Judge (interpreting permissible grounds). The High Court, while recognizing commercial importance and locality as factors (citing Edger Ferus), ultimately held the Appellate Authority’s higher fixation unsustainable for this unit, and partially allowed the revision, restoring Rs.4,500 per month as the fair rent for the subject room.

Provisions of Law Cited

Section 5 of the Kerala Buildings (Lease and Rent Control) Act, 1965Section 20 of the Kerala Buildings (Lease and Rent Control) Act, 1965Order XLI Rule 22 of the Code of Civil Procedure

Legal Doctrines & Maxims

  • Findings of fact by authorities under the Act can be set aside only if perverse or not supported by evidence (Hindustan Petroleum Corpn. Ltd. v. Dilbahar Singh)
  • Commercial importance of locality as a factor in fixing fair rent (Edger Ferus v. Abraham Ittycheria)
  • Order XLI Rule 22 CPC principle on reliance on grounds (as discussed in Santha v. 1st Additional District Judge)

Submissions & Arguments

Contentions of Appellants / Petitioners

The counsel for the tenants contends that the tenanted room is an insignificant unit in the building complex, and the Advocate Commissioner’s area (70.37 sq ft) contradicts the landlords’ pleaded area of 45 sq ft. There is no direct evidence of the prevailing market rent for a similar/identical room, and the absence of an appeal by the landladies against the Rent Control Court’s Rs. 4,500 per month cannot be cured by a re-fixation by the Appellate Authority. The tenants urge that the Appellate Authority exceeded its scope by relying on the Commissioner’s report to fix a higher rent for a minor unit and that the reduction of evidence to a per-room basis requires deference to the original assessment. They invoke Hindustan Petroleum and the standard that factual findings should not be overturned without perversity or lack of evidence.

Contentions of Respondents

The landlords’ counsel defends the Appellate Authority’s approach, arguing that fair rent is a pure question of fact and reviewable under Section 20 only for legality, propriety, or legality of the decision. He relies on Santha v. 1st Additional District Judge to justify that an appellate body may support or vary a Rent Control Court decision based on the record, including the Advocate Commissioner’s report, and contends that the Appellate Authority’s action is legally permissible and not an error of law.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Santha v. 1st Additional District Judge1994 (1) KLT 516DistinguishedThe High Court held that the proposition in Santha cannot be applied to the present facts; Appellate Authority cannot be empowered to pass a landlord-favouring order in an appeal by tenants.
Edger Ferus v. Abraham Ittycheria2004 (1) KLT 767PositiveCited to support considering commercial importance of locality as a factor in fixing fair rent.
Hindustan Petroleum Corpn. Ltd. v. Dilbahar Singh(2014) 9 SCC 78PositiveGoverns standard for setting aside factual findings; findings can be set aside only if perverse or unsupported by evidence.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **&** **THE HONOURABLE MRS. JUSTICE C.S. SUDHA** **THURSDAY, THE 8[TH] DAY OF DECEMBER 2022 / 17TH AGRAHAYANA,** ## **1944** **RCREV. NO. 123 OF 2017** **AGAINST THE ORDER DATED 31.07.2013 IN RCP NO.38 OF 2011** **OF THE RENT CONTROL COURT (MUNSIFF), PAYYANNUR CONCURRING WITH THE COMMON JUDGMENT IN RCA NO.148 OF 2013 DATED 07.11.2016 OF ADDITIONAL DISTRICT JUDGE-III, THALASSERY REVISION PETITIONERS/APPELLANTS/RESPONDENTS:** - **1 M.V.MANIKANDAN, AGED 48 YEARS S/O. T. KRISHNAN,AMUL ICE CREAM, EVEREST BUILDING, MAIN ROAD, PAYYANNUR.** - **2 K. RATHEESH, AGED 38 YEARS** **S/O. THAMPAN, EVEREST AUDIO & VIDEO, EVEREST BUILDING, MAIN ROAD, PAYYANNUR, RESIDING AT PAYYANNUR AMSOM DESOM, TALIPARAMBA TALUK, KANNUR DISTRICT.** **BY ADV SRI.M.V.AMARESAN** ## **RESPONDENTS/RESPONDENTS/PETITIONERS:** - **1 MULAKKIRIYATH KHADEEJA, AGED 58 YEARS D/O. AYISHA UMMA, RESIDING AT NILESHASWARAM VILLAGE, HOSDURG TALUK, KASARAGOD DISTRICT PIN- 671 314.** - **2 EDAMANA VLAPPIL KHADEEJA, AGED 70 YEARS D/O. AYISHA UMMA, RESIDING AT THANKAYAN, SOUTH TRIKARIPUR VILLAGE, HOSDURG TALUK, KASARAGOD DISTRICT PIN - 671 310.** **BY ADV.SRI.R.SUDHISH** **THIS RENT CONTROL REVISION HAVING COME UP FOR ADMISSION ON 08.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** R.C.Rev.No.123 of 2017 -: 2 :- ## **P.B.SURESH KUMAR & C.S.SUDHA, JJ. -----------------------------------------------** ## **R.C.Rev.No.123 of 2017** ## **----------------------------------------------Dated this the 8[th] day of December, 2022** ## **O R D E R** ## **P.B.Suresh Kumar, J.** The tenants in a proceedings for fixation of fair rent under Section 5 of the Kerala Buildings (Lease and Rent Control) Act, 1965 (the Act) are the petitioners in this revision petition. Respondents are the landladies in the proceedings. 2. The subject matter of the proceedings is a room in the ground floor of a shopping complex beneath a staircase. The tenants were paying rent in respect of the room at the rate of Rs.385/- per month. The application for fixation of fair rent was instituted by the landladies alleging that the rent that is being paid by the tenants is meagre and that fair rent has to be fixed at Rs.200/- per sq.ft. It is alleged in the application that the area of the room is 45 sq.ft. The tenants R.C.Rev.No.123 of 2017 -: 3 :- raised objections to the application. The Rent Control Court tried the application along with other applications preferred by the landladies in respect of a few other rooms in the very same shopping complex and fixed the fair rent of the premises at Rs.4,500/- per month, at the rate of Rs.100/- per sq.ft. 3. Aggrieved by the decision of the Rent Control Court, the tenants preferred appeal before the Appellate Authority. In the appeal, the landladies took out a Commission. In the report filed by the Advocate Commissioner, it was stated, among others, that the area of the tenanted premises is 70.37 sq.ft. and not 45 sq.ft. as pleaded by the landladies in the application for fixation of fair rent. The appeal was considered by the Appellate Authority along with the appeals preferred by other tenants against the common order. On a reappraisal of the materials on record, the Appellate Authority took the view that the Rent Control Court was not justified in fixing a uniform fair rent for all the rooms in the shopping complex of which some premises suffer from specific commercial disadvantages when compared to the rest. The Appellate Authority thereupon proceeded to consider the claim R.C.Rev.No.123 of 2017 ## -: 4 :- for fixation of fair rent with reference to each room separately and found that the tenanted premises being a room beneath the staircase, the Rent Control Court ought not have fixed its fair rent at Rs.100/- per sq.ft, and fixed its fair rent at Rs.80/per sq.ft. Thereupon, having regard to the fact that the area of the subject room is 70.37 sq.ft and not 45 sq.ft as pleaded by the landladies, it was held by the Appellate Authority that the tenants are liable to pay fair rent at the rate of Rs.80/- per sq.ft. for 70.37 sq.ft and thus the liability of the tenants was fixed at Rs.5,630/- per month, in the place Rs.4500/- fixed by the Rent Control Court. The tenants are aggrieved by the said decision of the Appellate Authority and hence, this revision petition. 4. Heard the learned counsel for the tenants as also the learned counsel for the landladies. 5. The learned counsel for the tenants contended, placing reliance on the reports of the Advocate Commissioner appointed in the proceedings, that the tenanted premises is an insignificant room in the building complex and the Appellate Authority, in the circumstances, was not justified R.C.Rev.No.123 of 2017 -: 5 :- in fixing the fair rent at Rs.80/- per sq.ft. for such a premises. It was also argued by the learned counsel that other than the importance of the locality, there is no evidence on record to infer as to what is the prevailing rate of rent for similar/identical premises. It was also argued by the learned counsel that at any rate, in the absence of an appeal against the decision of the Rent Control Court by the landladies, the Appellate Authority was not justified in raising the fair rent from Rs.4,500/- to Rs.5,630/- per month in the appeal preferred by the tenants. 6. Per contra, the learned counsel for the landladies supported the decision of the Appellate Authority mainly pointing out that the question relating to fair rent payable in respect of the premises is a pure question of fact, and the same cannot be challenged in a revision under Section 20 of the Act on any ground, whatsoever. According to him, the revision petition, in the circumstances, is liable to be dismissed on that sole ground. It was also argued by the learned counsel that insofar as the principles behind the provisions contained in Order XLI Rule 22 of the Code of Civil Procedure applies to the R.C.Rev.No.123 of 2017 -: 6 :- proceedings before the authorities under the Act as well, the Appellate Authority cannot be found fault with for having refixed the fair rent based on the report of the Advocate Commissioner. He relied on the decision of this Court in **Santha v. 1[st] Additional District Judge** , 1994 (1) KLT 516, in support of the said argument. 7. In exercise of the power under Section 20 of the Act, this Court is empowered to satisfy the correctness or legality or propriety of any decision or order of the authorities under the Act. It is now trite that in the said process, a finding of fact recorded by the authorities under the Act can be set at naught only if the same is perverse or has been arrived at without consideration of the material evidence or based on no evidence or misreading of the evidence or is grossly erroneous that, if allowed to stand, would result in gross miscarriage of justice, as it is not treated as a finding in accordance with law [See **Hindustan Petroleum Corpn. Ltd. v. Dilbahar Singh** , (2014) 9 SCC 78]. Let us now consider the sustainability or otherwise of the arguments advanced by the learned counsel for the parties, keeping in mind the said principles. R.C.Rev.No.123 of 2017 -: 7 :- 8. True, there is no evidence on record to indicate the rent that is being paid by a willing tenant to a willing landlord for a similar/identical premises in the locality. The evidence on record, on the other hand, only indicates the commercial importance of the premises. As rightly observed by the Appellate Authority, commercial importance of the locality, its proximity to public places like schools, offices, hospitals are some among the factors to be taken note of, for the purpose of fixing the fair rent of a premises [See **Edger Ferus v. Abraham Ittycheria,** 2004 (1) KLT 767]. As such, merely for the reason that there is no evidence on record as regards other factors to be taken note of in the matter of fixing the fair rent of a premises, it cannot be said that the fixation of fair rent is bad. As noted, the Rent Control Court fixed a uniform fair rent for several rooms and the said decision was interfered with by the Appellate Authority and the fair rent was re-fixed for each room including the subject room separately having regard to its peculiarity. The factual finding arrived at by the Appellate Authority in this regard is purely a finding on a question of fact and we do not think that we would be justified in interfering R.C.Rev.No.123 of 2017 ## -: 8 :- with the said factual finding in a revision under Section 20 of the Act. All the arguments raised by the learned counsel for the tenants against the said finding are, therefore, liable to be rejected and we do so. 9. As noted, the specific case pleaded by the landladies in the eviction petition is that the area of the subject room is 45 sq.ft. and it is on that basis that the Rent Control Court fixed the fair rent of the premises at Rs.4,500/- per month, at the rate of Rs.100/- per sq.ft. There is no appeal against the said decision by the landladies. The decision of the Rent Control Court was challenged by the tenants only on the ground that the fixation of fair rent at the rate of Rs.100/- per sq.ft. is unsustainable in law. True, in the report of the Advocate Commissioner filed before the Appellate Authority, it is stated that the area of the subject room is 70.37 sq.ft. Even though the Appellate Authority accepted the contention of the tenants that fixation of fair rent at the rate of Rs.100/- per sq.ft is unsustainable in law, it is on the basis of the report of the Advocate Commissioner that the Appellate Authority re-fixed the fair rent payable in respect of the premises at Rs.5,630/- R.C.Rev.No.123 of 2017 -: 9 :- per month. True, the records do not indicate that the tenants disputed the area of the premises as reported by the Advocate Commissioner, but it is a fact that the tenants who were liable to pay only Rs.4,500/- per month, had they not challenged the decision of the Rent Control Court, is now called upon to pay Rs.5630/- per month in the place of Rs.4500/- per month. According to us, the Appellate Authority is not empowered to pass an order in favour of the landladies in an appeal preferred by the tenants. The decision of this Court in **Santha v. 1[st] Additional District Judge** _(supra)_ has no application to the facts of this case, as the proposition laid down in the said case is only that the respondent in an appeal filed under the Act is entitled to support the decision of the Rent Control Court not merely on the grounds found in his favour but also on the grounds which have been held against him by that authority, on the principle of Order XLI Rule 22 of the Code of Civil Procedure. The said decision cannot be understood as laying down the proposition that an Appellate Authority under the Act is empowered to pass an order in favour of a landlord in an appeal by the tenants. Needless to say, the decision of the R.C.Rev.No.123 of 2017 ## -: 10 :- Appellate Authority inasmuch as it held that the tenants are liable to pay fair rent at the rate of Rs.5,630/- per month instead of Rs.4500/- per month, is illegal, irregular and improper, and the said part of the decision of the Appellate Authority is liable to be interfered with. In the result, the revision petition is allowed in part setting aside the decision of the Appellate Authority to the extent indicated above and clarifying that the tenants are liable to pay fair rent only at the rate of Rs.4,500/- per month. Sd/- **P.B.SURESH KUMAR, JUDGE.** Sd/- **C.S.SUDHA, JUDGE.** ds 09.12.2022