E-Paper
From ₹450 a month to ₹1.7L: HC okays rent boost for shop in Chandigarh’s Sector-15
The property owner had submitted lease deeds of adjoining shops where the owners were getting approximately ₹2 lakh as rent for the shops rented out to different people
The Punjab and Haryana high court has directed a shopkeeper in Sector 15 to pay ₹1.75 lakh rent for the shop occupied by him against ₹450 being paid so far.
“Real estate prices as well as rents have soared to new heights. No doubt the court has to balance the equities. Where one hand, a landlord should not be denied his due, a tenant should also not be burdened with extraordinary rents which may ultimately force him to vacate the premises,” the bench of justice Vikram Aggarwal observed while asking the shopkeeper to deposit entire amount with the rent controller, Chandigarh, within three weeks.
The shopkeeper has been occupying the shop since 1967 for a rent of ₹450 per month.
Acting on the eviction proceedings initiated by the owner of the premises in 2021, citing personal necessity to start a business, the Rent Controller had dismissed the petition. However, the appellate authority, allowed the appeal against the same filed by the property owner on May 26. It was against this order that the shopkeeper had approached the high court and obtained a stay order in August.
The owner had filed an application in these proceedings, stating the shopkeeper was in possession of property since 1967 and that too at the rate of ₹450. The tenancy stands terminated with the passing of decree of eviction and with effect from the date, the high court ruled. It was also argued that the shopkeeper owned two shops in the same market but was not ready to vacate this shop. Hence, had sought a rent of ₹2 lakh, pending the proceedings in high court.
The property owner had submitted lease deeds of adjoining shops where the owners were getting approximately ₹2 lakh as rent for the shops rented out to different people.
The court observed that after an order of eviction is passed, the relationship of landlord and tenant comes to an end and thereafter the tenant is liable to pay rent or compensation for use and occupation of the premises at the same rate at which the landlord would have been able to let out the same had the tenant vacated the premises and landlord is not bound by the contractual rate of rent.
It also noted that the shop fell in the prime commercial market in Sector 15, on the main road, abuzz with customers.
The court did not accept the claims of the shopkeeper that prevalent rent in the market is ₹50,000 to ₹60,000 per month. The lease deeds of the adjoining shops are registered deeds and the court has no reason to doubt the same, it said while deciding the rent.
