High Court of KeralaDivision BenchDismissed

RCRev. No. 47 of 2016 (RCR 47/2016) & Cross Objection No. 29/2016, High Court of Kerala at Ernakulam

Case / Petition Number:RCRev. No. 47 of 2016; Cross Objection No. 29/2016

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Harilal
  • A. Muhamed Mustaque
Judgment Date
2017-06-05
Court Decision / Holding
Revision petitions and cross-objections dismissed; the fair rent fixed by the courts below (Rs. 10 per sq ft) is confirmed, and the Rs. 10 per sq ft rate stands.
Final Disposition
Dismissed

Parties to the Case

Appellants / Petitioners

  • ULLATTUTHODIYIL RAJKUMAR
  • ULLATTUTHODIYIL MOHANAN
  • ULLATTUTHODIYIL PREMARAjan
  • ULLATTUTHODIYIL SHOBHANA
  • ULLATTUTHODIYIL GEETHA SURESH
  • ULLATTUTHODIYIL ANIL KUMAR

Respondents

  • The Secretary, Government of India Department of Posts, Ministry of Communications, Information and Technology, New Delhi-110001
  • The Post Master General Kerala Circle, Thiruvananthapuram-695033
  • The Post Master General, Northern Region, Calicut-673011
  • The Superintendent, Post Stores Depot, Calicut-673002

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri R. Sudhish
  • • Sri P. P. Balan
  • • Smt. M. Manju

Case Synopsis & Summary

This Kerala High Court revision arises from a rent-control dispute under the Kerala Buildings (Lease and Rent Control) Act, seeking fixation of fair rent for a commercial building in Kozhikode. The Rent Control Court-II fixed the monthly rent at Rs. 77,000 (Rs. 10 per sq ft) from the date of the petition, and the Rent Control Appellate Authority upheld this rate. The tenants challenged in RCR 47/2016, while landlords filed Cross Objection No. 29/2016. The landlords contended that the prevailing local rents for similar buildings warranted a higher rate; the tenants argued the enhanced rent claimed was exorbitant and unsupported by evidence, noting there was no valid agreement for enhancement after 2000. The High Court reminded that revisional jurisdiction under Section 20 is limited to legality, propriety, and irregularity of findings and not a re-appreciation of the entire record, unless relevant evidence was ignored or irrelevant evidence relied upon. The court considered Ext. C1, a local Commissioner’s report, and other comparables, including properties occupied by PL Agro Technologies Ltd. and Madras Cements Ltd. It found the petition schedule building to be broadly similar to comparables, despite differences in year and construction, and held Rs. 10 per sq ft to be just and reasonable. Consequently, the revision and cross-objection were dismissed, and the Rs. 10 per sq ft rate stood along with the concurrent findings of the lower courts.

Provisions of Law Cited

Section 5(1) of the Kerala Buildings (Lease and Rent Control) ActSection 20 of the Kerala Buildings (Lease and Rent Control) Act

Legal Doctrines & Maxims

  • Not an appeal in disguise (principle governing revisional jurisdiction)
  • Revisional jurisdiction under Section 20 limited to legality, propriety and irregularity of findings (not a second appeal)

Submissions & Arguments

Contentions of Appellants / Petitioners

The tenants argued that the enhancement claimed by the landlords could not be allowed as it was exorbitant and unreasonable. They emphasized that there was no valid agreement for enhanced rent after 2000 and that the lower courts’ fixation at Rs. 10 per sq ft best reflected local prevailing rents, escalations in building materials, and construction costs. They urged respect for the scope of revise under Section 20, which does not permit re-appreciation of entire evidence absent a failure to consider relevant material, and relied on Ext. C1 (Commissioner’s report) and parity with comparable properties to support the Rs. 10 per sq ft rate.

Contentions of Respondents

The landlords contended that rent for similar buildings in the locality warranted a higher rate. They pointed to Phase C1 and other vergleichbare properties showing higher rent, arguing the courts should not set a ceiling based on outdated or non-identical comparisons. They invoked prevailing market dynamics and construction costs to claim that Rs. 10 per sq ft failed to reflect true value; they sought interference with lower-court findings and the higher magnitude of rent claimed in evidence.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Edger Ferus v. Abraham Etticheria2004 (1) KLT 767Mentioned OnlyCited as guidelines or parameters for fixation of fair rent, without indicating the ruling’s direct applicability or modification of its principles in the present case.

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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 K.HARILAL & THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE** **MONDAY, THE 5TH DAY OF JUNE 2017/15TH JYAISHTA, 1939** **RCRev..No. 47 of 2016 () ------------------------** **RCA 51/2014 OF RENT CONTROL APPELLATE AUTHORITY(FIRST ADDITIONAL DISTRICT) COURT, KOZHIKODE. RCP 125/2012 OF ADDITIONAL RENT CONTROL(ADDITIONAL MUNSIFF) COURT-II, KOZHIKODE.** **........** ## **PETITIONER/APPELLANTS/RESPONDENTS:** **----------------------------------** **1. THE SECRETARY, GOVERNMENT OF INDIA DEPARTMENT OF POSTS, MINISTRY OF COMMUNICATION, INFORMATION AND TECHNOLOGY, NEW DELHI-110001.** **2. THE POST MASTER GENERAL KERALA CIRCLE, THIRUVANANTHAPURAM-695033.** **3. THE POST MASTER GENERAL, NORTHERN REGION, CALICUT-673011.** **4. THE SUPERINTENDENT, POST STORES DEPOT, CALICUT-673002.** **BY SRI.K.SHRI HARI RAO, CGC** **RESPONDENTS/RESPONDENTS/PETITIONERS: ------------------------------------** **1. ULLATTUTHODIYIL RAJKUMAR, S/O.AYYAPPAN, AGED 65 YEARS, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK, KOZHIKODE DISTRICT, POST CHERUVANNUR-673655.** **--2--** **--2--** ## **RCRev..No. 47 of 2016 () ------------------------** **2. ULLATTUTHODIYIL MOHANAN, S/O.AYYAPPAN, AGED 63 YEARS, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK, KOZHIKODE DISTRICT, POST CHERUVANNUR-673655.** **3. ULLATTUTHODIYIL PREMARAJAN, S/O.AYYAPPAN, AGED 61 YEARS, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK, KOZHIKODE DISTRICT, POST CHERUVANNUR-673655.** **4. ULLATTUTHODIYIL SHOBHANA, AGED 59 YEARS, D/O.AYYAPPAN, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK, KOZHIKODE DISTRICT, POST CHERUVANNUR-673655.** **5. ULLATTUTHODIYIL GEETHA SURESH, D/O.AYYAPPAN, AGED 57 YEARS, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK, KOZHIKODE DISTRICT, POST CHERUVANNUR-673655.** **6. ULLATTUTHODIYIL ANIL KUMAR, S/O.AYYAPPAN, AGED 56 YEARS, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK, KOZHIKODE DISTRICT, POST CHERUVANNUR-673655.** **R1-3,5,6 BY ADVS.SRI.R.SUDHISH SRI.P.P.BALAN SMT.M.MANJU** **THIS RENT CONTROL REVISION HAVING BEEN FINALLY HEARD ON 05-06-2017 ALONG WITH CO.29/2016, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:** **mbr/** **K.HARILAL & A.MUHAMED MUSTAQUE, JJ.** ========================= **R.C.R.No.47/2016 & Cross Objection No.29/2016** ~~~~~~~~~~~~~~~~~~~~~~~~~ Dated this the 5[th] day of June, 2017 ## **O R D E R** ## K.Harilal J. The revision petitioners and respondents in R.C.R.No.47/2016 are the tenants (hereinafter referred to as the “tenants”) and the landlords respectively, in R.C.P.No.125/2012 on the files of the Additional Rent Control Court-II, Kozhikode. The said R.C.P. is filed by the landlords (hereinafter referred to as the “landlords”) under Section 5(1) of the Kerala Buildings (Lease and Rent Control) Act (for short, the “Act”) for fixation of fair rent. The rent control court fixed fair rent of the building at the rate of Rs.77,000/- (Rs.10/- per sq.ft.) per month from the date of the rent control petition. Challenging ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:2:-** the said order, the tenants approached the rent control appellate authority by filing R.C.A.No.51/2014. The lower appellate authority also confirmed the order fixing fair rent passed by the rent control court. Thus, the legality and propriety of the concurrent findings of the courts below fixing the fair rent is challenged in this revision, before this court, by the tenants. The landlords have filed cross-objection in R.C.R.No.47/2016 as Cross Objection No.29/2016. 2. Heard the learned counsel for the tenants and the learned counsel for the landlords. 3. According to the landlords, the rate of rent was not in accordance with the rate of rent prevailed at that time, in that locality, for similar buildings. Whereas, the tenants contended that the enhanced rent claimed by ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:3:-** the landlords could not have been allowed as it was exorbitant and unreasonable. 4. Indisputably, the rental arrangement has commenced in the year 1983 and the rate of rent was only Rs.5,000/- and the extent of the area is 7700 sq.ft. comprised in 45 cents of land. Subsequently, on 20.12.2000, the rent was enhanced to Rs.10,250/-. Thereafter, in the year 2009, the rent was again enhanced to Rs.17,000/- on certain conditions. The court below concurrently found that the landlords have not performed the condition for enhancement of rent and they failed to enter into an agreement for enhanced rent. In the above premise, the court below concurrently found that there was no enhancement from Rs.10,250/which was fixed in the year 2000. Hence, we find that ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:4:-** the claim of enhancement in rent was just and reasonable. 5. First of all, we must remind ourselves the scope and extent of revisional jurisdiction under Section 20 of the Act, which is confined to legality and propriety and irregularity of the findings of the court below. This Court is not inclined to re-appreciate the entire evidence on record as the revision under Section 20 of the Act is not an appeal in disguise. Unless, the courts below fails to consider any relevant evidence or place reliance on any irrelevant evidence, this Court is not inclined to interfere with the concurrent findings of the courts below. 6. Bearing the above proposition in our mind, we have gone through the concurrent findings of the courts below, whereby the rent stands fixed at the rate of ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:5:-** Rs.10/- per sq.ft. The landlords claimed rent at the rate of Rs.15/- per sq.ft. and the tenants denied the same and contended that the landlords are not entitled to get rent enhanced at the said rate. As rightly held by the courts below, while fixing fair rent, the prevailing rent of the locality with respect to similar buildings, escalation in the prices of building materials, cost of construction etc. have to be taken into consideration. In addition to that this court in **Edger Ferus v. Abraham Etticheria [2004 (1) KLT 767]** has issued certain guidelines, as parameters, for fixation of fair rent. Ext.C1 is the report filed by the Commissioner, along with Exts.C1(a) and C (b) plan and sketch, after conducting a local investigation with respect to the prevailing rent in the locality for similar buildings. In Ext.C1 report, the Commissioner reported that there is a building in the ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:6:-** neighbourhood, which is in possession of one company named P.L.Agro Technologies Ltd. and the area of the said building is 3000 sq.ft. According to the Commissioner, the rent of the said building was fixed at Rs.32,000/- per month as per agreement dated 25.5.2013. Since the said lease was of the year 2013, the rent fixed for the said building cannot be applied for fixing fair rent with respect to the petition schedule building in an application filed under Section 5 of the Act in the year 2012. That apart, even according to the Commissioner, there is a difference in the nature of the building. The petition schedule building is a tiled one whereas the said building in the occupation of P.L.Agro Technologies Ltd. is roofed with sheets. The Commissioner has inspected another building, which was in occupation of another company by name Madras ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:7:-** Cements Ltd. The said building was having an area of 3000 sq.ft. and the monthly rent was Rs.45,000/- per month. Besides that, the Commissioner has reported two other building, one having a plinth area of 6000 sq.ft. and the other having a plinth area of 5000 sq.ft. and the rent of the said premises were Rs.70,000/- and Rs.50,000/- respectively per month. The Commissioner has verified the agreement with respect to the building in occupation of P.L.Agro Technologies Ltd. only. The rent of the said building of P.L.Agro Technologies Ltd. was Rs.10.6 per sq.ft. and this rent was fixed in the year 2013. No other evidence had been produced either by the landlords or by the tenants. 7. After analysing the aforesaid evidence on record, the courts below concurrently found that the rent of the building occupied by P.L.Agro Technologies Ltd. is ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:8:-** almost similar, in all respects, to the petition schedule building; though, it cannot be taken as such, due to the difference in the year of agreement and the nature of construction of the building. In view of the evidence available on record, the courts below fixed fair rent at the rate of Rs.10/- per sq.ft. for the petition schedule building. We find that the fair rent concurrently fixed by the courts below is just and reasonable. 8. Neither the landlords nor the tenants have a case that the courts below have omitted to consider the relevant evidence or considered any irrelevant evidence. In that view of the matter, this Court is not inclined to interfere with the concurrent findings of the courts below. We do not find any ground to interfere with the concurrent findings of the courts below. This rent control petition filed by the tenants and the cross- ``` RCR No.47/2016 & Cross.Objn. No.29/2016 ``` ## **-:9:-** objection filed by the landlords are dismissed accordingly. **Sd/K.HARILAL, JUDGE** **Sd/A.MUHAMED MUSTAQUE, JUDGE** ms