ABBOBAKER AND ANR. versus MAHALAKSHMI TRADING CO.

ABBOBAKER AND ANR. versus MAHALAKSHMI TRADING CO.

Where tenant obtains possession under compromise decree (and not via statutory re-entry procedure), rent liability is governed by terms of the compromise and not by the statutory fair rent provisions; 'prevailing fair rent in the area' is interpreted as reasonable rent received for similar premises, which Supreme Court can fix under Article 142 to do complete justice.

Parties
Appellant Landlord: Abbobaker; Respondent Tenant: Mahalakshmi Trading Co.
Jurisdiction
India
Judgment Date
10 February 1998
Procedural Posture
Civil Appeal / Final Judgment
Outcome
appeal allowed
Legal Topics
Demolition and Reconstruction of Building, Compromise Decree, Rent Fixation, Tenant's Right of Re Entry
Rent Control Eviction Demolition and Reconstruction of Building Compromise Decree Rent Fixation Tenant's Right of Re Entry

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Parties

Abbobaker

Appellant Landlord

Mahalakshmi Trading Co.

Respondent Tenant

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether rent should be determined by the Controller under Section 14 of Karnataka Rent Control Act or as agreed under compromise decree.
  2. 2 Interpretation of 'prevailing fair rent in the area' in the compromise decree.

Ratio Decidendi

Where tenant obtains possession under compromise decree (and not via statutory re-entry procedure), rent liability is governed by terms of the compromise and not by the statutory fair rent provisions; 'prevailing fair rent in the area' is interpreted as reasonable rent received for similar premises, which Supreme Court can fix under Article 142 to do complete justice.

Court Disposition

appeal allowed

Orders

  • Prevailing fair rent for the premises is fixed at Rs. 4000 per month under Article 142.
  • Tenant is liable to pay Rs. 3000 per month (25% less than prevailing rent) from the date of possession.