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Raj kumar (Manager)     22 November 2011

Rent law

In Supreme court judgment Mohd Ahmad v. Atma Ram Chauhan civil aoppeal No 4422  of 2011 arising out of SLP (C) No. 6319 of 2007 decided on 2011 it has been  said:

" The tenant must enhance the rent according to the terms of agrement or atleast by 10% every three yrs .... If the rent is too low (in comparison to the market rent) having fixed almost 20-25 yrs back then the present market rent should be worked on the basis of valuation report or reliable estimates of building rentals in the surrounding areas, let out recently."

The question is:

1. Rent laws in many states, say Haryana, has fixed a formula for increasing rent after 5 yrs only. That is indeed very low. Now can the Landlord use the above jusgment of Supreme court to get the rent increased or he has to follow the law made under the Rent Restriction Act made by his state government.

2. Since the formula for increasing rent was very low, though the rent may have increased every 5 yrs, yet can the Landlord now apply that his rent is very low and should be incresaed as per the above judgment.



Learning

 1 Replies

Rajender Dahiya (Partner/Advocate)     22 November 2011

You are right friend, that Hon'ble Supreme Court has categorically said that Rent should be enhanced as per mkt standard. But it was for a cse where there was no agreement regarding the enhancement of rent. This formula applies where agreement or lease deed or leave and licenses are silent about the enhancement of the rent. However it is always governed by the State Rent control Act, In your we have to see the exact situation. If you want concrete information then provide all details regarding your case.

Rajender Dahiya

Lawyer, New Delhi9560900283


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