Corporation empowered to fix rent for shops and buildings on higher side

Also, dismissing a petition from a lessee, the court held that the right of the tenant to continue in the premises comes to an end once tenancy comes to an end as per the lease agreement.

“The aim and purpose of letting out the shops to rent is to augment the resources of the concerned municipality, which is meant to be utilised only towards the welfare of the people,” said a division bench of the High Court comprising justices M Venugopal and S Vaidyanathan. Upholding the order of a single judge in this regard, the bench added, “There cannot be two opinions on one fact that the license issued in favour of the writ petitioner is for a fixed term only and if that be so, after the expiry of the fixed term, a person/occupier of a shop, has no right to continue in occupation forever.” 

The petitioner SK Subbaih’s counsel had contended that the fixation of rent for 32 shops by the Chennai Corporation without following the basic principles of depreciation, usage, age and the value of the building, net profit in the business, was violative of Article 14 of the Constitution, which guarantees equality before law. 

It was also submitted that the Corporation had compelled the petitioner to pay rent at an allegedly exorbitant rate of Rs 55 per sq ft, which was a violation of right to life as guaranteed under the Constitution. 

The plea also contended that the single judge had not considered the fact that no clear yardstick was used for enhancing the rent every three years and no opportunity was provided before fixation of rent in exorbitant rate, which may totally shatter the petitioner’s life.