' RAHMAT HUSSAIN JAFFERI, J.--- In the case of fixation of fair rent leave to appeal was granted by this Court, which reads as under:--- "After hearing Mr. Naraindas C. Motiani, learned Advocate Supreme Court, we are inclined to grant leave to appeal in view of the contentions raised by the counsel to the effect that the scope of section 8 of the Sindh Rented Premises #TBS SCMR #TBE Ordinance, 1979 is restricted to the four conditions specified therein."
2. Learned counsel for the appellant has argued that the learned Additional District Judge and the High Court considered labour charges, maintenance, repair, renovation apart from property and other local taxes etc, which do not fall within the provisions of section 8(1) of the Sindh Rented Premises Ordinance, 1979 (hereinafter referred to as `the Ordinance'), therefore, the fair rent was not properly fixed. Conversely, learned counsel for the respondents has argued that cost of construction includes the labour charges, maintenance, repair and renovation, therefore, the Court was required to consider these charges also.
3. We have heard the learned counsel for the parties and perused the record so made available before us. It would be appropriate to reproduce section 8 of the Ordinance, which reads as under:- - "Fair rent. (1) The Controller shall, on application by the tenant on landlord determine fair rent of the premises after taking into consideration the following factors:--
(a) the rent of similar premises situated in the similar circumstances, in the same or adjoining locality;
(b) the rise in cost of construction and repair charges;
(c) the imposition of new taxes, if any, after commence of the tenancy; and
(d) the annual value of the premises, if any, on which property tax is levied."
' A bare reading of the above provision of law reveals that the learned Rent Controller, while fixing the fair rent, is required to consider the above conditions. The words 'cost of construction and repair charges' include labor charges, maintenance and renovation etc. The learned counsel for the appellant has conceded that construction cannot be made without the labour employed to do the same. Thus both the Courts below have rightly considered the above charges, while determining the fair rent of the premises. However, the learned High Court while maintaining the fixation of rent at the rate of Rs,17 per sq.Ft. Has modified the order of the learned Additional District Judge, in respect of increase in rent at ten per cent per annum to the extent that it should be implemented in terms of section 9 of the Ordinance, which reads as under:--- "Limit of Fair rent.--- (1) Where the fair rent of any premises has been fixed no further increase thereof shall be effected unless a period of three years has elapsed from the date of such fixation or commencement of this Ordinance whichever is later:
(2) The increase in rent shall not, in any case, exceed ten per cent per annum on the existing rent."
A perusal of the above provision of law shows that when the fair rent has been fixed, the same can be increased after three years from the date of such fixation or commencement of the Ordinance, whichever is later and as per subsection 2 the increase in rent shall not exceed 10% per annum on the existing rent. Thus the provision would be applicable if the fair rent has already been fixed and then increase is necessitated. In the present case, this was the first time that the rent of the premises was fixed, therefore, the provisions of section 9 of the Ordinance are not attracted at this stage. However, after three years if the rent is re-fixed or increased as per law then the above provision would be applicable.##TE#
4. Above are the reasons of our short order dated 24-12-2009, by which we had disposed of the appeal in the following terms:--- "For the reasons to be recorded separately, the fair rent fixed at the rate of Rs,17 per sq. Ft. Per month determined by the Courts below is maintained, whereas, further 10% annual increase in the rent and that too in terms of section 9 is not warranted at this stage. Therefore, the said finding is set aside, hence the appeal is partly allowed and partly dismissed in the above terms."