Deletion of Section 21(1) Explanations (ii) and (iv) Does Not Render Rent Enhancement Proviso Inoperative

The respondent-landlords let a building (approx. 5866 sq. ft.) to the Trade Tax Department of Uttar Pradesh in 1966.

In 2008, an application for enhancement of rent was filed.

The Rent Control Officer fixed the rent at Rs. 14,400 per month (Rs. 4/sq. ft.) based on prime location and comparable government rentals.

On appeal, the Additional District Judge remanded the matter for fresh consideration due to a lack of findings on the commencement date and periodic enhancement intervals.

The landlords challenged this remand order under Article 227 before the High Court, which bypassed the remand and directly enhanced the rent to Rs. 14/sq. ft. based on the landlords' statement regarding adjacent premises.

The State appealed, questioning the High Court’s jurisdiction to enhance rent directly and whether the deletion of certain clauses in the U.P. Urban Building Act rendered rent enhancement provisions inoperative.

1. Whether, following the omission of Clauses (ii) and (iv) of Section 21(1) of the U.P. Urban Building (Regulation of Letting, Rent and Eviction) Act, 1972, the proviso to Section 21(8) remains operative to govern rent enhancement for premises let to the State.

2. Whether the High Court, in exercise of its supervisory jurisdiction under Article 227 of the Constitution, can directly order the enhancement of rent in the absence of conclusive material on record.

Section 21(8) of the U.P. Urban Building (Regulation of Letting, Rent and Eviction) Act, 1972, which provides that while certain government/public tenants cannot be evicted on grounds of bona fide requirement, the District Magistrate may enhance the monthly rent to 1/12th of 10% of the market value.

The 1976 Amendment (UP Act No. 28 of 1976), which omitted Explanations (ii) and (iv) to Section 21(1).

Article 227 of the Constitution: supervisory jurisdiction is intended to ensure subordinate courts act within their power and avoid grave injustice, but it is not a power of appeal and must be exercised "judiciously and sparingly," particularly in rent matters.

The Court first clarified that the deletion of Clauses (ii) and (iv) in the 1976 amendment did not extinguish the landlord's right to seek rent enhancement under the proviso to Section 21(8). It reasoned that if the State's restrictive interpretation were accepted—denying both eviction and rent enhancement—it would effectively convert the tenant into the owner, defeating the purpose of the landlord-tenant relationship.

Regarding the procedural aspect, the Court analyzed the limits of Article 227, noting that while High Courts have powers of superintendence to correct jurisdictional errors or perversity, they should not substitute their own decision for that of the specialized Tribunal.

In this case, the High Court enhanced the rent to Rs. 14/sq. ft. based solely on a statement by the landlords' counsel without any evidence or formal acceptance by the State on record. The Supreme Court found that such an enhancement lacked a factual evidentiary foundation, necessitating a remand despite the potential for further delay.

The Court further held that while the High Court possesses the power to intervene under Article 227, it erred by determining a specific rent amount without sufficient material on record.

The Court set aside the High Court's judgment and remanded the matter to the Rent Control Officer, Bahraich, with directions to decide the rent afresh within four months, applicable retrospectively from the 2008 institution date.