Summary
The Supreme Court held that either landlord or tenant may seek fixation of fair rent during a subsisting contractual tenancy under the Telangana rent legislation. Binding larger-bench decisions rejected the tenants’ reliance on a minority view that the landlord must await termination. The purchase price of the property did not determine the issue, and a proposed model law could not override the governing statute.
Issues
- Whether the landlord could apply for fair-rent determination before the agreed lease term expired.
Provisions considered
- Section 4(1), Telangana Buildings (Lease, Rent and Eviction) Control Act, 1960Either party may seek fair rent during the contractual tenancy; the provision is not confined to tenancies whose contractual term has ended. (¶¶ 8, 9, 13)
Held
- Section 4(1) gives both parties a right to seek fair rent. Excluding contractual tenancies would disadvantage tenants compelled to accept excessive rent as well as landlords entitled to statutory protection; fair rent relates to the building rather than only the particular applicant. (¶¶ 8, 9, 10)
- The majority in Raval and the seven-judge approval in Dhanapal Chettiar bind the Court. The contrary minority opinion could not support excluding a landlord’s application during a subsisting lease. (¶¶ 10, 11, 12, 13)
- The purchase consideration’s relationship to the enhanced rent did not alter statutory determination. A model enactment circulated as guidance, not itself governing legislation, could not displace the operative Act. (¶¶ 14, 15)
Result
Tenants’ appeal dismissed, leaving the fair-rent determination undisturbed.