Posted December 17, 2013 by advocateguru in Learning Centre

fixation of fair rent

Fixing of rent is basically a matter of contract between the tenant and the landlord. An application for fair rent exists only when the rent so fixed is either very high or very low, in any situation, is unreasonable.1 However, in cases of Hotels and Lodging Houses if the rates are excessive the Rent Authority can fix a fair rate for the same.2 There can be no suo-moto determination of the rent. An application in the prescribed manner has to be filed with the Rent Controller and then only action can be taken. Such an application can be filed by either the landlord or the tenant but the necessary ingredient is that there is existence of such a relationship of a landlord and the tenant.3 If such conditions are there it is necessary for the Rent Controlling Authorities to fix the rent in such a manner that both the parties are benefitted and at least one is not exploited by the other.

Many statutes put a limit to the application for fair rent. Various Acts provide for a time period of 2 years from the date of cause of action to file an application.4

1Section 5(1) of Bihar Rent Act, section 11 of Bombay Rent Act


2Section 39(1) of the Delhi Rent Act


3H.S. Rikhi v New Delhi Municipality, AIR 1962 SC 554


4Section 12 of the Delhi Rent Act and Section 12(2) of the Bombay Rent Act