Shivam Diwan And Anr vs. Rikash Goel

Facts

The petitioners, Shivam Diwan and another, are tenants challenging an order dated July 27, 2023, by the Appellate Authority. This order dismissed two appeals, one by the tenant and one by the landlord, Rikash Goel, challenging a provisional rent assessment order dated May 25, 2023, passed by the Rent Controller. The landlord leased Plot No. 35, Industrial Area, Phase I, Chandigarh to the petitioner tenant at a monthly rent of Rs. 2,05,000/- plus electricity, water, and GST. A lease deed dated February 7, 2022, stipulated a 5% annual rent enhancement. The Rent Controller assessed provisional rent based on the Supreme Court's ruling in Rakesh Wadhawan vs. Jagdamba Industrial Corporation. The tenant argued that the provisional rent was assessed mechanically, included rent for a fit-out period (February 7, 2022, to April 30, 2022), and sought waiver of GST for a specific period due to non-raising of GST bills.

Held

The High Court held that the provisional assessment of rent is not a final adjudication of the amount due. It affirmed the provisional rent assessed by the Rent Controller and upheld by the Appellate Authority, noting that this assessment is subject to final determination upon disposal of the main rent petition on merits. The Court stated that if it is later found that the tenant was not liable to pay rent for the claimed period, the tenant would be entitled to a refund of any excess amount paid or adjustment in future rent. The Court found no infirmity in the impugned order warranting interference in its revisional jurisdiction and concluded that the petitioner-tenant had not made out a case of any jurisdictional error. Therefore, the revision petition was dismissed.

Key Issues

1. Whether the Rent Controller erred in assessing provisional rent, specifically by including rent for the fit-out period from February 7, 2022, to April 30, 2022, contrary to the East Punjab Urban Rent Restriction Act, 1949? 2. Whether the petitioner-tenant is entitled to a waiver of GST for the period from February 7, 2022, to June 30, 2022, on the grounds that GST bills were not raised on the government portal? Petitioner's Arguments: The petitioner-tenant argued that the Rent Controller assessed provisional rent mechanically and included rent for the fit-out period (February 7, 2022, to April 30, 2022), which they contended was not payable. They also argued for a waiver of GST for the period February 7, 2022, to June 30, 2022, as GST bills had not been raised on the GST portal. Additionally, they claimed the landlord was not entitled to claim TDS for the period February 7, 2022, to June 30, 2022. Respondent's Arguments: The respondent-landlord, as per the Appellate Authority's order, sought modification of the provisional rent assessment to include enhancement of rent and assessment of other charges (electricity, water, property tax) as per the lease deed. They argued for an annual rent enhancement effective February 7, 2023, based on clauses 9 and 13 of the lease deed. The landlord also contended that under the East Punjab Urban Rent Restriction Act, the tenant is liable to pay rent from the date of physical possession and there is no provision for a rent-free period.