Fair rent

(1) The fair rent in respect of a holding shall be the rent payable by the cultivating tenant to his landlord and it shall be the rent calculated at the rates specified in Schedule III applicable to the class of lands comprised in the holding or the contract rent, whichever is less. Explanation.—Where the fair rent in respect of a holding has been determined under any law in force immediately before the 21st January, 1961, the fair rent so determined shall be deemed to be the contract rent for the purposes of this sub-section. (2) Notwithstanding anything contained in sub-section (1), the fair rent in respect of a holding, where the cultivating tenant or an intermediary is holding under a small-holder, shall, at the option of the small-holder, be— (a) the rent calculated at the rates specified in Schedule III applicable to the class of lands comprised in the holding; or (b) where the fair rent in respect of the holding has been determined under any law in force immediately before the 21st January, 1961, such fair rent, or, where fair rent has not been so determined, 75 per cent of the contract rent : Provided that the fair rent payable by a cultivating kanamdar or a cultivating customary verumpattamdar shall not exceed the michavaram payable by such kanamdar or the rent payable by such customary verumpattamdar, as the case may be.