MUHAMMAD AKHTAR SALEEM and others vs STATE LIFE INSURANCE
This matter involves cross-petitions challenging a High Court of Sindh order regarding the fixation of fair rent for a tenanted property. The Rent Controller had initially increased the monthly rent from Rs. 800 to Rs. 4,200, which the High Court subsequently reduced to Rs. 2,500, citing the increased cost of living and the tenant's status as a retired government employee. The core legal question before the Supreme Court was whether the High Court erred in determining the fair rent without adequately considering all relevant factors and evidence required under the governing statute. The Supreme Court held that the High Court reached its conclusion without sufficient recourse to the necessary evidential facts required by law. Consequently, the Court set aside the impugned orders, converted the petitions into appeals, and remanded the matter to the High Court. The key principle laid down is that the fixation of fair rent requires a comprehensive assessment of all statutory factors, necessitating the recording of further evidence where the existing record is insufficient to support a judicial determination.
- Can the High Court fix fair rent without recording necessary evidence as required by the Sindh Rented Premises Ordinance?
- Does a Rent Controller's order regarding fair rent require a comprehensive assessment of all statutory factors under the Sindh Rented Premises Ordinance?
- Section 8, Sindh Rented Premises Ordinance 1979
- Section 21, Sindh Rented Premises Ordinance 1979
ORDER
1. ' WAJIHUDDIN AHMED, J.---These are two cross-petitions, challenging the fixation of fair rent through the impugned order of the High Court of Sindh dated 13-2-1998 in F.R.As. Nos.96 of 1997 and 124 of 1997.
2. ' In the way of fixation of fair rent of the tenant-hold, the learned Controller had raised the monthly rate from Rs,800 to Rs,4,200. Such was reduced by the High Court to Rs,2500 and the reasons for the same are recorded by the learned Judge in Chambers as follows:- ' "In view of the prevailing circumstances and the fact that cost of living has considerably increased in all respect the order of the Rent Controller dated 29-4-1997 is modified to the extent that the monthly rent for the disputed flat is reduced from Rs,4,200 per month to Rs,2,500 per month from the date of filing of the application. If any payment of rent has been made in pursuance to the impugned order passed by the Rent Controller the said amount shall be adjusted in accordance with the present order. However considering the tenant being old retired Government employee four months' time is allowed to make necessary adjustment. The parties are left to bear their own costs. First Rent Appeal No,96 of 1997 is allowed and disposed of accordingly alongwith the pending application. F.R.A. No,124 of 1997 filed by the landlord State Life Insurance Corporation is dismissed accordingly."
3. There are several aspects to section 8 of the Sindh Rented Premises Ordinance and each, though in varying degree weighs for consideration in assessing fixation of fair rent. Some such aspects were not obviously there on the record and others, the learned counsel agree, could be addressed by recording further evidence under section 21 of the Sindh Rented Premises Ordinance by the High Court. The High Court, however, recorded its conclusion without, apparently, having due recourse to the evidential facts.
4. In the circumstances, these petitions are by consent, converted into appeals and the impugned orders are correspondingly set aside. The parties are left free to lead such other or further evidence under section 21 of the Sindh Rented Premises Ordinance before the High Court, to which the matter is remanded, as found appropriate. Fresh orders would follow in due course at the level of the High Court itself. There would be no order as to costs in these proceedings.