Determination of fair rent

(1) The Rent Control Court shall, on application of the tenant or of the landlord of a building, fix the fair rent for such building after holding such enquiry as it thinks fit. (2) In fixing the fair rent under this section, the Court shall take into consideration the property tax or house tax fixed for the building at the time of letting in the property tax or house tax register of the local authority within whose area the building is situated. (3) If there is no property tax or house tax fixed for the building or if it is not based on a rental basis or if the building is situated in an area which is not a City, Municipality or Panchayat, the fair rent shall be the rent fixed after taking into consideration the prevailing rates of rent in the locality for similar accommodation in similar circumstances during the twelve months preceding the letting. (4) In case the allotment of the building is made by the Accommodation Controller, he may, pending determination of fair rent by the Rent Control Court, fix a provisional rent. The Rent Control Court may subsequently modify the fair rent so fixed. (5) Nothing contained in this section shall apply - (a) to any building or part of a building where the rent does not, or would not, when fixed, exceed fifteen rupees per mensem; or (b) to any building owned by any company, association or firm, whether incorporated or not, and bona fide intended solely for the occupation of its officers, servants or agents and situated in the same city, town or village. (1) Where the amount of the taxes and cesses payable by the landlord in respect of any building to local authority has increased after fixation of the fair rent, such increase shall be recoverable by the landlord from the tenant: Provided that no such increase exceeding five per cent of the original fair rent shall be so recovered from the tenant. (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 Control Court.