High Court Punjab-Haryana High Court

Canara Bank vs Smt. Barinder Kaur & Anr on 6 July, 2009

Punjab-Haryana High Court
Canara Bank vs Smt. Barinder Kaur & Anr on 6 July, 2009
IN THE HIGH COURT FOR THE STATES OF PUNJAB
         AND HARYANA AT CHANDIGARH.
                       C.R. No. 6447 of 2008.
                       Date of Decision: 6th July, 2009.

Canara Bank                   Petitioner
                              through
                              Mr. A.P.Jagga, Advocate with
                              Mr. Alok Jagga, Advocate.

           Versus

Smt. Barinder Kaur & Anr.          Respondents

through
Mr. B.R.Mahajan, Advocate.

CORAM:

HON’BLE MR. JUSTICE SURYA KANT.

1. Whether Reporters of local papers may be allowed to see the judgment?

2. To be referred to the Reporters or not?

3. Whether the judgment should be reported in the Digest?

SURYA KANT, J. [ORAL)

The petitioner-tenant is a nationalized Bank and is

aggrieved at the order dated 18.10.2008 passed by the Rent

Controller, Amritsar whereby it has been directed to pay the

provisional rent @ Rs.45/- per square feet w.e.f. 8.7.2006, i.e., the

date of expiry of the extended lease period.

There is hardly any dispute that the subject premises was

rented out to the petitioner Bank w.e.f. 8.7.1991 and a lease deed to

this effect was executed on 20.8.1992. It was agreed that the

petitioner shall pay monthly rent @ Rs.17,209/- calculated @ Rs.3.5

per sq. feet of the carpet area. The lease period was ten years

commencing from 8.7.1991 and could be further extended for a

period of five years on the same terms and conditions. The petitioner

Bank also agreed to increase 15% rent after every block of five
years.

The respondent – landlords have now filed an eviction

petition on the ground of non-payment of rent. While the respondent

– landlords have averred that after the expiry of the extended period

of lease w.e.f. 8.7.2006, the respondent Bank is liable to pay rent at

the market rate the petitioner Bank has taken the plea that it is liable

to pay the rent as per the agreed terms and conditions only.

Suffice it to say that the aforementioned issue as to

whether or not the petitioner is liable to pay the market rent, is yet to

be gone into by the Rent Controller. Meanwhile, on an application

moved by the respondent – landlords, the Rent Controller has

determined the provisional rent @ Rs.45/- per sq. feet after observing

that the prevalent market rent in the locality is between 45/- to

Rs.82/- per square feet.

Aggrieved at the impugned order, the petitioner has

approached this Court.

Relying upon the observations made by the Hon’ble

Supreme Court in Rakesh Wadhawan v M/s Jagdamba Industrial

Corporation, 2002[2] RLR, 36, learned counsel for the petitioner

urges that there was no occasion for the Rent Controller to determine

any provisional rent as there was no dispute qua the rate of rent.

According to him, there is an agreed rate of rent and the arrears of

rent are also liable to be tendered at that rate. Learned counsel

urged that since the petitioner continues as a tenant by virtue of the

lease deed, the liability to pay the rent would also arise therefrom.

Lastly, it is urged that the excess rent, if paid, would be difficult to be

recovered.

After hearing learned counsel for the parties for some

time, I do not find any merit in this revision petition. The question as

to whether or not the petitioner is liable to pay the rent at the market

rate is a question of fact and shall be gone into by the Rent Controller

at an appropriate stage after the evidence is led by the parties.

Suffice it to observe at this stage that there is a serious dispute with

regard to the rate of rent as according to the landlords, there is no

agreed rate of rent between the parties after the expiry of lease-

period. In these circumstances, the Rent Controller has rightly

assessed the provisional rent. The contention that the excess

payment, if any, made to the landlords can not be recovered, is

wholly mis-placed as the same can always be adjusted against the

future rent.

For the reasons aforementioned, I do not find any merit in

this revision petition and the same is accordingly dismissed.



July 06, 2009.                              ( SURYA KANT )
dinesh                                          JUDGE