High Court Jharkhand High Court

M/S.Narbheram Leasing Co.(P)Lt vs State Of Jharkhand & Ors on 19 April, 2010

Jharkhand High Court
M/S.Narbheram Leasing Co.(P)Lt vs State Of Jharkhand & Ors on 19 April, 2010
                   IN THE HIGH COURT OF JHARKHAND AT RANCHI

                               W.P.(C) NO. 2327 OF 2003
                                         with
                               W.P.(C) NO. 2328 OF 2003

  M/S. Narbheram Leasing Company Pvt. Limited ... ...           Petitioner[In both Cases]
                                  -versus-
    State of Jharkhand and others                     ... ... Respondents[in both cases].



     CORAM: THE HON'BLE MR. JUSTICE AMARESHWAR SAHAY.

For the Petitioner        : Mr. Amar Kumar Sinha, Advocate.
For the Respondents       : Mr. Ananda Sen, Advocate.
For the State             : Ms. Nehala Sharmin, J.C. to Sr. S.C.-II



8/19.04.2010

. Heard the parties.

In view of the fact that the facts and points involved in both the writ

petitions are same and similar and as such, both the cases have been heard

together and are being disposed of by this common Order.

The facts in short are the petitioner of both the writ petitions, is the

landlord and the private respondents i.e. Vijay Mehta and Dhiren Mehta, are

his tenant with respect to two tenanted premises i.e. shop no. 2 and shop no.

3, situated in the commercial building namely – Narbheram Building, Sakchi

Boulevard Road (Bistupur Main Road), Bistupur, Jamshedpur, East Singhbhum.

The petitioner filed applications for fixing fair rent of the aforesaid

two shops praying under Section 5 of the B.B.C. Act before the S.D.O.

contending that the tenanted premises is located in the busy market area and

business centre of Bistupur, Jamshedpur and the same is being used by the

tenants for commercial purposes whereas, the rent paid by them was too low.

As a matter of fact, the rent for such accommodation prevalent in that area is

being paid @ about Rs.28/- per Sq. Ft.. Accordingly, prayer was made to fix the

fair rent of the two shops premises @Rs.28/- per Sq. Ft. per month.

The S.D.M. – cum – House Rent Controller registered those two

petitions filed by the petitioner under Section 5 of B.B.C. Act as H.R.C. Cases.

The tenants were noticed and thereafter, he directed the Special Officer,

Jugsalai Municipality, Jamshedpur to make a spot enquiry and report about the
statements made by the petitioner. The Special Officer submitted his enquiry

report dated 06.07.2002, contained in Annexure-2 to the writ petition. He

reported in his report that for similar accommodation, the prevailing rent in

the area was @Rs.28/- per Sq. Ft.. However, it was also mentioned in the

report that since in one case, namely H.R.C. Case No. 72 of 1998, the fare rent

has been fixed at Rs.12 per Sq. Ft. and, therefore, he recommended that the

fair rent of the premises can be fixed in between Rs.14 – 18 per Sq. Ft.. The

S.D.M., on consideration of the report, submitted by the Special Officer of

Jugsalai Municipality, Jamshedpur, by the impugned order dated 18.07.2002,

contained in Annexure-3, fixed the fair rent of the premises in question of

both the shops @Rs.15/- per Sq. Ft.

The respondents-tenants, being aggrieved by the order passed by the

Rent Controller, preferred appeal before the Deputy Commissioner, East

Singhbhum, Jamshedpur, which were registered as H.R.C. Appeals. The Deputy

Commissioner, by the impugned Order dated 22.10.2002, contained in

Annexure-4 to the writ petitions, after hearing the parties, set aside the order

passed by the S.D.M. And remanded the matter back to him by holding as

follows:-

(i) M/s. Narbheram Leasing Company Pvt. Limited was allotted the

premises by TISCO for running a motor garage and a sum of Rs.180/-

per month was being paid by way of rent to TISCO.

(ii) M/s. Narbheram Leasing Company Pvt. Limited, by violating the terms

and conditions of the lease, are realising excess rent after constructing

shop in the premises.

(iii) Fixing the fair rent of the premises in question by comparing the rent

of Yes Kamal Complex, was not justified since Yes Kamal Complex was

a newly constructed building and it was having all sorts of facilities.

On the basis of the above findings, the Deputy Commissioner,

directed the Sub Divisional Officer to consider and pass order in the case

afresh. He also directed the Deputy Collector, Tata Lease to make enquiry and

take action as to whether the petitioner was violating the terms of the lease

with the TISCO.

The petitioner, being aggrieved by the order passed by the appellate

authority i.e. Deputy Commissioner, preferred a revision before the

Commissioner, South Chhotanagpur Division. The Revisional Court, by the

impugned Order dated 25.02.2003, as contained in Annexure-5, dismissed

both the revision applications by affirming the Order passed by the Deputy

Commissioner i.e. the appellate authority.

Mr. Amar Kumar Sinha, learned counsel appearing for the petitioner

submitted that the impugned Orders passed by the appellate authority i.e. the

Deputy Commissioner, are beyond the purview, scope and jurisdiction of the

Deputy Commissioner. He had no jurisdiction or authority to direct to take

action against the petitioner for the alleged violation of the terms and

conditions of the lease with TISCO. The Deputy Commissioner had no

jurisdiction also to direct the Deputy Collector, Tata Lease to make enquiry if

the terms of the lease was being violated by the petitioner. He further

submitted that the orders of the Sub Divisional Officer, which were based on

the basis of the enquiry report submitted by the Special Officer, Jugsalai

Municipality, were perfectly legal and valid wherein, it was held that the rent

of the commercial premises similarly situated were in between Rs.5 – 28 per

Sq. Ft. but since in a similar case, the fair rent was fixed at Rs.12/- and,

therefore, he fixed the fair rent at Rs.15/- per Sq. Ft.

On the other hand, Mr. Ananda Sen, learned counsel appearing for

the respondents, submitted that so far the first portion of the order of the

Deputy Commissioner fixing rent @Rs.15/- per Sq. Ft. is concerned, the same is

not at all justified since even according to the report of the Special Officer,

the rent prevalent in the area was in between Rs.5 – 28 per Sq. Ft. and the

Special Officer has wrongly compared the shops situated in the building

namely Yash Kamal Complex which is a newly constructed complex with all

amenities and, therefore, the rent of the shops situated in the Yash Kamal

Complex were naturally higher since the building was a new one and all sorts

of facilities was there and, therefore, the Deputy Commissioner has rightly

remanded the matter back to the S.D.O. to pass a fresh order in accordance

with law.

So far the second part of the Order of the Deputy Commissioner is

concerned, whereby the Deputy Commissioner directed to make enquiry and

to take action against the petitioner for alleged violation of the terms of lease,

Mr. Ananda Sen submitted that he cannot support that part of the order since

it was beyond the scope of Section 5 of BBC Act and jurisdiction of the

Deputy Commissioner.

In view of the submissions made by the parties, the only point which

has to be considered in the present writ petitions are as to whether the fair

rents fixed by the S.D.O. – cum – House Rent controller, on the basis of the

enquiry report submitted by the Special Officer, was legal and valid and

whether the appellate authority was justified in setting aside the orders of the

House Rent Controller and remanding the matter back for fresh consideration.

From perusal of the Annexure-2, i.e. Enquiry Report submitted by the

Special Officer, it appears that he made the spot enquiry by visiting the

building where the shops in question are situated and also the Commercial

Yash Kamal Building situated in the Bistupur area and on enquiry and local

inspection made in presence of both the parties, he found that the rent of the

shops situated in that area was ranging in between Rs.6 – 28 per Sq. Ft.

On considering of the facts mentioned in the report, the Special

Officer recommended for fixation of rent in between Rs.14 – 18 per Sq. Ft..

From the order of the Deputy Commissioner, it appears that he found fixation

of rent to be not justified because that Yash Kamal Complex was a newly

constructed building whereas, the building in which the shops in question was

old one and, therefore, he come to the conclusion that the rent of the two

buildings cannot be compared in fixing fair rent of the shops situated in the

old building. He also held that Yash Kamal building is a new building and all

sorts of facilities are available in the said building.

In order to find out the correctness of the findings of the Deputy

Commissioner, I have gone through the enquiry report submitted by the

Special Officer, which has been annexed in the writ petition as well as the

other documents annexed with the writ petition and I find that there was

nothing on the record before the Deputy Commissioner to arrive at such a

conclusion. Such finding of the Deputy Commissioner is certainly not based on
the materials on record. He could not have decided the appeal on the basis of

his own personal knowledge.

I further find from the order of the Sub Divisional Officer i.e. the

Rent Controller that he, on consideration of several factors, has fixed the fair

rent at Rs.15/- per Sq. Ft. , which, in my view, cannot be said to be illegal or

invalid or unjustified for any reason.

For the reasons stated above, both the writ petitions are allowed.

The Orders passed by the Deputy Commissioner dated 22.10.2002 in H.R.C.

Appeal No. 25 of 2001 – 02 and H.R.C. Appeal No. 24/2002 – 03 as well as the

Orders dated 25.02.2003 passed by the Commissioner South Chhotanagpur

Division in H.R.C. Revision No. 167/2002 and 167A/2002 are hereby set aside

and the order of the Sub Divisional Officer dated 18.07.2002 as contained in

Annexure-3, is hereby affirmed.

(Amareshwar Sahay, J.)
RC/