Sunday 4 March 2018

Whether water charge are part of rent?

Perusal of the above provisions show that Sub-section (1) in addition to the standard rent and permitted increases also speaks of the terms and conditions agreed upon between the landlord and the tenant. But then the penal provision is to be found in Sub-section (2) which does not provide for the terms and conditions in the agreement between landlord and tenant. However, for interpreting provision of Section 15(2) of the Act one will have to look to the other provisions of the Act. It is essential to have harmonious construction of the provisions of this Act. Section 7(8) read with Section 12 of the Act are reproduced below:

Section 7(8). "Permitted increase " means an increase in rent permitted under the provisions of this Act.

12. Increase in rent on account of payment of rates, etc. - (1) Where a landlord is required to pay to Government or to any local authority or statutory authority in respect of any premises any fresh rate, cess, charges, tax, land assessment, ground rent of land or any other levy on lands and building, or increase in rate, cess, charges, tax, land assessment, ground rent of land or any other levy on lands and buildings, he shall, notwithstanding anything contained in any other provisions of this Act but save as otherwise expressly provided in any other law for the time being in force, be entitled to make an increase in the rent of such premises : Provided that, the increase in rent shall not exceed the amount of any such rate, cess, charges, tax land assessment, ground rent of land or any other levy on lands and buildings, as the case may be.

(2) Where the rent is inclusive of charges for electricity and water and the landlord is required to pay any increase in these charges in respect of any premises, he shall be entitled to make an increase in the rent of such premises by an amount not exceeding the additional amount payable by him in respect of such premises on account of such increase.

(3) The amount of the increase in rent recoverable from each tenant under Sub-sections (1) and (2) shall bear the same proportion as the rent payable by him in respect of his premises bears to the total amount of any such rate, cess, charges, tax, land assessment, ground rent of land or any other levy on lands and building, or increase in electricity or water charges, as the case may be.

6. Perusal of these provisions show that water charges/revised water charges have been treated by the legislature as a part of the rent. This appears to have been deliberately made by the legislature in order not to have loose end in the provision about inclusion of water charges/revised water charges into rent. Admittedly, rent can be increased and such increased rent would also fall in the category of permitted increases. Thus, I find that water charges/revised water charges become part of the rent and consequently the submission made by Advocate Shri Dhumale will have to be turned down.

IN THE HIGH COURT OF BOMBAY (NAGPUR BENCH)

W.P. No. 2821 of 2008

Decided On: 03.07.2008

Ravindra D. Ahirkar Vs.  Ravikishore S/o Ramkisanji Pashine and Anr.


Hon'ble Judges/Coram:
A.B. Chaudhari, J.
Citation: 2008(5) MHLJ 955
Read full judgment here: Click here
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