Recently (13May11 C.A. No.__@ SLP(C)No. 6319 of 2007) the Hon'ble SC Bench of Hon'ble Judge Bhandari and Hon'ble Judge Verma delivered a Judgment / Guidelines to tenants for enhacement of rent so as to minimise landlord-tenant litigation at all levels these are as follows :
- (i) The tenant must enhance the rent according to the terms of the agreement or at least by ten percent, after every three years and enhanced rent should then be made payable to the landlord. If the rent is too low (in comparison to market rent), having been fixed almost 20 to 25 years back then the present market rate should be worked out either on the basis of valuation report or reliable estimates of building rentals in the surrounding areas, let out on rent recently.
- (ii) .... (iii) ..... (iv) ....
- (v) If present and prevalent market rent assessed and fixed between the parties is paid by the tenant thenlandlord shall not be entitled to bring any action for his eviction against such a tenant at least for a period of 5 years. Thus for a period of 5 years the tenant shall enjoy immunity from being evicted from the premises.
- (vi) The parties shall be at liberty to get the rental fixed by the official valuer or by any other agency, having expertise in the matter.
- (vii) The rent so fixed should be just, proper and adequate, keeping in mind, location, type of construction, accessibility with the main road, parking space facilities available therein etc.
- Care ought to be taken that it does not end up being a bonanza for the landlord.
These are some of the illustrative guidelines and norms but not exhaustive, which can be worked out between landlord and tenant so as to avoid unnecessary litigation.
Now In our region Maharashtra Rent Control Act 1999 is in force. In this act defination of Standard Rent and Permitted increase is very confusing and has scope of mis-interpretation due to which landlords are not getting proper returns.
My question is if i wanted to demand proper market rate as per guidelines of Hon'ble SC, Can I do so ? will it not be contrary to the MhRC Act? How can I apply those guidelines for getting proper returns?
(My case is I have 10 tenanted shops in one building (constructed in 1964) out of which 7 tenants are since 1965 (Old rent was Rs 1 per sq ft) Out of these 5 tenants have compromised after long litigation (1986...97) and started paying rent @Rs. 5 to 7 per sq ft since 1998 and also had written agreement about it. 2 tenants vacated the shops volutarily in 2000 which I kept vacant till 2007 (then in 2008 One shop I gave @Rs 60 per sq ft to local firm and other in 2010 @Rs 120 to ATM)
are since 1965 (Old rent was Rs 1 per sq ft) Out of these 5 tenants have compromised after long litigation (1986...97) and started paying rent @Rs. 5 to 7 per sq ft since 1998 and also had written agreement about it. 2 tenants vacated the shops volutarily in 2000 which I kept vacant till 2007 (then in 2008 One shop I gave @Rs 60 per sq ft to local firm and other in 2010 @Rs 120 to ATM) 1 Tenant's case is still pending in lower court under old act, and in other tenant i got an order in 2006 @Rs 18 per sq ft,with effect from 1986. 1 tenants case was dissmissed in default in 1991... (he is still paying Rs 1 per sq ft) . In our area in adjoinig building we have 30.. 60 sq ft rents.. In my own building I am getting varied rate...
How can I use guidelines of Hon'ble SC to get me enhanced rate of rent ? from Old Tenant who is paying Rs 1 sq ft rent.
How Can I demand at least Rs 20 .., 25 per sq ft from tenants who have compromised with an agreement in 1999 ? or I have to take agreed rate Rs 5... 7 sq ft since it has clause of periodic increment...?
My question is if i wanted to demand proper market rate as per guidelines of Hon'ble SC, Can I do so ? will it not be contrary to the MhRC Act? How can I apply those guidelines for getting proper returns?
ie Who has more weightage Supreme Court guidelines for entire nation or Regional Act ?
Thanks in advance to all viewers for their valuable feedback........
