Law: Karachi Rent Restriction Act (VIII of 1953)

Section: 2(2),2(c)

Karachi Rent Restriction Act (VIII of 1953)-----   -----S. 2 (2) (c) " Total cost "-Expression refers to cost of construction of building and not to amount paid by a purchasing landlord.   Where it was argued that for the purpose of fixing fair rent under clause (c) of subsection (2) of section 2 of the Karachi Rent Restriction Act, 1953 of building purchased by a landlord the purchase amount may be taken as the total cost to a landlord.   Held, that the argument was untenable, because it leads to the conclusion that while the fair rent in the case of a landlord who constructs himself is to be gathered from the value of the land and the cost of the construction when once he sell, it another fair rent can then come into operation dependant on the purchase amount. This, however, is a mischief which is prohibited in the case of premises constructed before the 15th day of August 1947. In such cases the rent is to be determined as that obtaining on the 1st day of December 1941 or 1942, with of course permitted increases, and is fixed once for all: a purchasing landlord is not entitled to increase the fair rent of premises falling under clauses (a) and (b) merely because he has paid a large amount for the premises. It is most unlikely that the Karachi Rent Restriction Act, 1953 should prevent in clauses (a) and (b), but permit in clause (c), an increase in rent according to the amount paid by a purchasing landlord.   Date of hearing : 12th August 1959.  JUDGMENT   CONSTANTINE, J.-The petitioners applied to the Rent Con troller to fix the fair rent of the premises let to them by the respondents -Nos. 2 and 3. The Rent Controller in his judgment recorded a description of the premises following his personal inspection. He then went on to say that the opponents had purchased the building for Rs. 41,000 and disallowing them further expenses on the ground that no proof had been pro duced by them said " Accordingly I, take the total value of the building for Rs. 41,000". He allowed the statutory percentage upon this amount and fixed the fair rent accordingly.   It is common ground that the building was constructed after…