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Judgment
P.B.Suresh Kumar, J.
The landlady in an application for fixation of fair rent under Section 5(1) of the Kerala Buildings (Lease and Rent Control) Act, 1965 (the Act) is the petitioner in this revision petition. The Rent Control Court dismissed the application, and the decision of the Rent Control Court was affirmed by the Appellate Authority. It is against those decisions that this revision under Section 20 of the Act is preferred by the landlady.
The subject matter of the application is a two-storeyed building within the limits of Ponnani Municipality. The premises was leased out to the respondent on a monthly rent of Rs.125/- as early as on 01.04.1974. The respondent is using the premises for running its parcel service business. The rent payable in respect of the premises was subsequently enhanced to Rs.425/- per month. The case set out by the landlady in the application is that the rent which is being paid by the tenant is meagre and that the fair rent of the premises would at any rate be above Rs.7,000/- per month. The landlady, therefore, prayed for fixing the fair rent of the premises at Rs.7,000/- per month. The tenant contested the application.
The Rent Control Court found that no material whatsoever has been brought on record by the landlady to establish that rent that is being paid by the tenant is not the fair rent of the premises. Consequently, the application was dismissed. On a reappraisal of the materials on record, the appellate authority affirmed the decision of the Rent Control Court. As noted, it is aggrieved by the said decisions of the authorities below that this revision petition is filed.
Heard the learned counsel for the landlady as also the learned counsel for the tenant.
The fact that the premises was one taken on lease by the tenant from the landlady as early as on 01.04.1974 is not disputed. The fact that the rent agreed at that time was Rs.125/- per month is also not disputed. The application for fixation of fair rent was filed in the year 2015. As noted, for the period of almost 40 years in between, the monthly rent was raised only to Rs.425/- from Rs.125/-. A scrutiny of the materials on record indicates that the landlady has not adduced any evidence so as to enable the authorities under the Act to determine the fair rent of the premises. The evidence let in by the landlady were formal in nature. It is common knowledge that the land value as also the rentals of the buildings throughout the State has increased many fold after 1974. The enhancement of Rs.300/- given by the tenant for the subject building for a period of almost 40 years is meagre. In the circumstances, we are of the view that interest of justice demands that the landlady shall be given liberty to adduce evidence in the case to substantiate her claim.
In the circumstances, we set aside the impugned orders and remit the application for fixation of fair rent to the Rent Control Court for fresh disposal, after affording the petitioner an opportunity to adduce evidence. Parties are directed to appear before the Rent Control Court on 03.01.2023.