Bombay Rents, Hotel Rates and Lodging House Rates (Control) Act 1944
“standard rent” in relation to any premises means, –
(a) where the standard rent is fixed by the Court and the Controller respectively under the Bombay Rent Restriction Act, 1939, or the Bombay Rents, Hotel Rates and Lodging House Rates (Control) Act, 1944, such standard rent; or
(b) when the standard rent is not so fixed, subject to the provisions of section 11,
(i) the rent at which the premises were let on the first day of September 1940, or
(ii) where they were not let on the first day of September 1940, the rent at which they were last let before that day, or
(iii) where they were first let after the first day of September 1940, the rent at which they were first let, or
(iii a) notwithstanding anything contained in paragraph (iii), the rent of the premises referred to in sub-section (1-A) of section 4 shall, on expiry of the period of five years mentioned in that sub-section, not exceed the amount equivalent to the amount of net return of fifteen per cent, on the investment in the land and building and all the outgoings in respect of such premises; or
(iv) on any of the cases specified in section 11, the rent fixed by the Court;
Sec 7- Rent [or licence fee or charge] in excess of standard rent illegal
(1) Except where the rent is liable to periodical increment by virtue of an agreement entered into before the first day of September 1940, it shall not be lawful to claim or receive on account of rent for any premises any increase above the standard rent, unless the landlord was, before the coming into operation of this Act, entitled to recover such increase under the provisions of the Bombay Rent Restriction Act, 1939, or the Bombay Rents, Hotel Rates and Lodging House Rates (Control) Act, 1944 or is entitled to recover such increase under the provisions of this Act either before or after the commencement of the Bombay Rents, Hotel and Lodging House Rates Control (Amendment) Act, 1986.
(2) (a) No person shall claim or receive on account of any licence fee or charge for any premises or any part thereof, anything in exces of the standard rent and permitted increase (or, as the case may be, a proportionate part there to), for such premises if they had been let, and such additional sum as is reasonable consideration for any amenities or other services supplied with the premises.
(b) All the provisions of this Act in respect of the standard rent and permitted increases in relation to any premises let, or if leet, to a tenant, shall mutatis mutandis apply in respect of any licence fee or charge and permitted increases in relation to the premises given on licence; and accordingly, the licensee or licensor may apply to the Court for the fixation of the licence fee or charge and permitted increases and the additional sum mentioned above.
11A- No new application for standard rent, etc., to be entertained if already duly fixed by a competent Court at the instance of other parties
No Court shall upon an application or in any suit proceeding fix the standard rent of any premises under section 11, or entertain any plea that the rent or increases are excessive, if the standard rent or the permitted increases, in respect of the same premises have been duly fixed by a competent Court on the merits of the case, without any fraud or collusion or an error of the facts, and there has been no structural alterations or change in the amentities or in respect of any other factor which are relevant to the fixation of the standard rent, or change in such increases, thereafter in the premises.
12- No ejectment ordinarily to be made if tenant pays or is ready and willing to pay standard rent and permitted increases.
(1) A landlord shall not be entitled to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay, the amount of the standard rent and permitted increases, if any, and observes and performs the other conditions of the tenancy, in so far as they are consistent with the provisions of this Act.
(2) No suit for recovery of possession shall be instituted by a landlord against tenant on the ground of non-payment of the standard rent or permitted increases due, until the expiration of one month next after notice in writing of the demand of the standard rent or permitted increases has been served upon the tenant in the manner provided in section 106 of the Transfer of Property Act, 1882.
(3) No decree for eviction shall be passed by the Court in any suit for recovery of possession on the ground of arrears of standard rent and permitted increases if , on the first day of hearing of the suit or on or before such other date as the Court may fix, the tenant pays or tenders in Court the standard rent and permitted increases then due and together with simple interest on the amount of arrears of such standard rent and permitted increases at the rate of nine per cent. per annum; and thereafter continues to pay or tenders in Court regularly such standard rent and permitted increases till the suit is finally decided and also pays cost of the suit as directed by the Court.
Provided that, the relief provided under this sub-section shall not be available to a tenant to whom relief against forfeiture was given in any two suits previously instituted by the landlord against such tenant.
(4) Pending the disposal of any such suit, the Court may out of any amount paid or tendered by the tenant pay to the landlord such amount towards payment of rent or permitted increase due to him as the Court thinks fit.
Explanation I – In any case where there is a dispute as to the amount of standard rent of permitted increases recoverable under this Act the tenant shall be deemed to be ready and willing to pay such amount if, before the expiry of the period of one month after notice referred to in sub-section (2), he makes an application to the Court under sub-section (3) of section 11 and thereafter pays or tenders the amount of rent or permitted increases specified in the order made by the Court.
Explanation II .- For the purposes of sub-section (2), reference to “standard rent” and “permitted increase” shall include reference to “interim standard rent” and “interim permitted increase” specified under sub-section (3) or (4) of section 11.
Explanation III.- For the purposes of this section where, a tenant has deducted any amount from the rent due to the landlord under section 173C of the Bombay Municipal Corporation Act for recovery or any water tax or charges paid by him to the Commissioner, the tenant shall be deemed to have paid the rent to the extent of deductions so made by him.
Fixing standard rent under Bombay Rents, Hotel and Lodging House Rates Control Rules 1948
7- Procedure in applications for fixing standard rent, etc.
(1) In miscellaneous applications the Court of Small Causes, Bombay, shall follow as far as may be and with the necessary modification, practice and procedure applicable to suits referred to in rule 5 as if such applications were suits for sums not exceeding Rs. 1,000:
Provided that costs in respect of employing a legal practitioner when allowed in any such application shall be not more than Rs. 30.
(2) In applications for fixing standard rent or permitted increase, where a Court in exercise of the powers conferred by rule 9 of Order XXVI of the code appoints a Commissioner for ascertaining the market value of any premises, the Court may also require the Commissioner to submit his report as to the facts which may enable the Court to ascertain the fair return in respect of such premises by apportionment or otherwise.
9B- Procedure in applications for fixing standard rents, etc.
In miscellaneous applications a Court of Small Causes established under the Provincial Small Cause Courts Act, 1887, shall follow, as far as may be, and with the necessary modifications, the procedure applicable to suits or proceedings referred to in rule 9-A as if such applications were suits of the description referred to therein.
11- Procedure in application for fixing standard rents, etc.
In miscellaneous applications the Court of Civil Judge (Junior Division or Senior Division) shall follow, as far as may be, and with the necessary modifications, the procedure applicable to suits referred to in rule 10 as if such applications were suits of the description referred to therein.
