Non-member occupiers entitled to continue in tenements of co-operative society.

(1) The occupiers of tenements in the building acquired for the co-operative society who do not become the members of the co-operative society shall, subject to the provisions of the first proviso, be entitled to continue in their tenements as tenants of the co-operative society after the building has been conveyed to the co-operative society on the same terms and conditions on which they were occupying them from the owner of the building : Provided that, notwithstanding anything contained in the Rent Act, or any other law for the time being in force or any agreement, contract, judgement, decree or order of any Court or Tribunal to the contrary the co-operative societies shall be entitled to recover, in addition to rent, from such occupiers and such occupiers shall be liable to share and pay proportionately towards any expenditure that may be incurred by the society on structural repairs of the buildings or towards the service charges and additional amenities or facilities provided in the building : Provided further that, if the owner himself is one of the occupiers in the building and he does not become the member of the co-operative society, he may, subject to the provisions of the first proviso and sub-section (2) to (7) continue to occupy the premises occupied by him on payment of standard rent, if any fixed, or where on standard rent is fixed on such other rent and on such other terms and conditions as may be mutually agreed between the owner and the co-operative society. (2) Where in a co-operative society the owner referred to in the second proviso to sub-section (1) becomes a tenant and he considers that the rent demanded by the co-operative society is excessive, such owner may apply to the Court of Small Causes, Bombay for fixing the standard rent of his tenement, but such owner shall, notwithstanding anything contained in the Rent Act, or any other law for the time being in force, continue to pay to the society, the rent demanded by it and failure of such owner to pay to the society such rent, the Court shall not proceed to fix the standard rent under this sub-section until such owner pays to the society such rent. Explanation.— For the purposes of this sub-section, the expression “standard rent” includes the increase in rent permitted under the provisions of the Rent Act. (3) Where the Court has fixed the standard rent under sub-section (2) and it finds that the rent demanded by the co-operative society from such owner is unreasonably excessive the Court may order payment of simple interest at the rate of six per cent. per annum on the amount of difference between the standard rent and the rent demanded and received by the co-operative society from such owner. Explanation.— For the purpose of this sub-section where a difference between the standard rent and the rent demanded by the co-operative society is more than twenty-five per cent. the rent demanded by the co-operative society shall be deemed to be unreasonably excessive. (4) Any amount in excess of the standard rent fixed by the Court under sub-section (2) or standard rent referred to in sub-section (6), received by the co-operative society shall, at the option of such owner, be adjusted towards the payment of future rent by such owner or refunded to him. (5) An application under sub-section (2) may be made jointly by all or any of the owners interested in respect of the tenements situated in the same building. (6) No Court shall upon an application or in any suit or proceeding fix the standard rent of any tenement under sub-section (2) or entertain any plea that the rent is excessive, if the standard rent in respect of the same tenement has been duly fixed by a competent court on the merits of the case, without any fraud or collusion of an error of the fact, and there has been no structural alteration or change in the amenities or in respect of any other factors which are relevant to the fixation of the standard rent. (7) The decision of the Court under sub-section (2) or (3) shall be final and conclusive and shall not be called in question in any Court.