Chapter III Chapter III

Determination of fair rent

1. (1) The Rent Tribunal shall, on application by the landlord or the tenant of a building, fix the fair rent payable per annum for such building after holding such inquiry as may be prescribed.
2. (2) The fair rent payable per annum shall consist of— (a) 31[twelve per cent] of the market value of the building (including the land on which the building is constructed) as on 32[***] the date of the completion of the building, 33[***] ;and 34[Provided that the fair rent once fixed shall automatically stand increased by 2% per annum].
   • (b) fifty per cent of the taxes or cesses levied by the local authority and payable per annum by the landlord in respect of the building including the land on which the building is constructed.

1. (1) When the fair rent of a building has been fixed under this Act, no further increase in such fair rent shall be permissible except in cases where some addition, improvement or alteration has been carried out at the landlord‘s expense and, if the building is then in the occupation of a tenant at his request: Provided that the increase shall be calculated at a rate per annum not exceeding 35[twelve per cent] of the cost of such addition, improvement or alteration.
2. (2) Any dispute between the landlord and the tenant in regard to any increase claimed under sub-section (1) shall be decided by the Rent Tribunal.
3. (3) Where, after the fair rent of a building has been fixed under this Act, there is a decrease or diminution in the accommodation or amenities provided, the tenant may claim a reduction in the fair rent as so fixed.
4. (4) Any dispute between the landlord and the tenant in regard to any reduction so claimed shall be decided by the Rent Tribunal.

1. (1) Where the amount of taxes and cesses payable by the landlord in respect of a building to a local authority is enhanced or is levied for the first time after the fixation of the fair rent under section 12, the landlord shall be entitled to claim half of such excess or levy from the tenant in addition to the fair rent fixed: Provided that such excess shall not be recoverable in so far as it has resulted from an increase of rent in respect of the building.
2. (2) Any dispute between the landlord and the tenant in regard to any increase claimed under sub-section (1) shall be decided by the Rent Tribunal.

1. (1) Where the Rent Tribunal has fixed fair rent or a building, the landlord shall not claim, receive or stipulate for the payment of—
   • (a) any extra sum in addition to such fair rent, or
   • (b) save as provided in section 13 or section 14, anything in excess of such fair rent: Provided that the landlord may claim, receive or stipulate for the payment of an amount not exceeding one month‘s rent, by way of advance.
2. (2) Save as provided in sub-section (1), any extra sum or any rent paid in addition to,

or in excess of, such fair rent, whether before or after the commencement of this Act, in

consideration of the grant, continuance or renewal of the tenancy of the building, shall be refunded by the landlord to the person by whom it was paid or, at the option of such person, shall be otherwise adjusted by the landlord:

Provided that where before the determination of the fair rent, has been paid in excess

hereof, the refund or adjustment shall be limited to the amount paid in excess for a period of six months prior to the date of the application by the tenant or the landlord under sub-- section (1) of section 12 for fixing the fair rent.

1. (3) Any stipulation in contravention of sub-section (1) or sub-section (2) shall be void.

1. (1) Where the fair rent of a building has not been so fixed, the landlord shall not, after the commencement of this Act, claim, receive or stipulate for the payment of an extra amount or other like sum in addition to the agreed rent: Provided that the landlord may claim, receive or stipulate for the payment of an amount not exceeding one month‘s rent by way of advance.
2. (2) Save as provided in sub-section (1), any sum paid in excess of the agreed rent after the commencement of this Act in consideration of the grant, continuance or renewal of the tenancy of the building after such commencement shall be refunded by the landlord to the person by whom it was paid or, at the option of such person, shall be otherwise adjusted by the landlord.
3. (3) Any stipulation in contravention of sub-section (1) or sub-section (2) shall be void.