Section 31 of Delhi Rent Control Act 1958 - Fixing of Fair Rate
Section 31 of the Delhi Rent Control Act, 1958 deals with the power of the Controller to fix a fair rate for lodging, board and other services supplied by a hotel or lodging house when the charges are considered excessive.
What is Section 31 of the Delhi Rent Control Act?
Section 31 appears in the part of the Delhi Rent Control Act, 1958 dealing with hotels and lodging houses. It provides a statutory mechanism for regulating excessive charges for accommodation, board and other services. The provision authorizes the Controller to act on a written complaint or otherwise when there is reason to believe that the charges are excessive.
Text and meaning of Section 31
Section 31 - Fixing of fair rate.
Sub-section (1): Where the Controller, on a written complaint or otherwise, has reason to believe that the charges made for board or lodging or any other service provided in any hotel or lodging house are excessive, the Controller may fix a fair rate for board, lodging or other services. The rate for lodging, board and other services is to be specified separately.
Sub-section (2): While determining the fair rate, the Controller must consider the circumstances of the case, the prevailing charges for the same or similar accommodation, board and services during the twelve months immediately preceding 1 June 1951, and any general increase in the cost of living after that date.
Definition of fair rate
Under Section 2(c) of the Delhi Rent Control Act, 1958, "fair rate" means the fair rate fixed under Section 31 and includes the rate as revised under Section 32. Section 31 therefore provides the initial fixation mechanism, while Section 32 deals with revision of the fair rate.
Who is the Controller?
Section 2(b) defines the "Controller" as a Controller appointed under Section 35(1), and includes an Additional Controller appointed under Section 35(2). The Controller is the statutory authority empowered to determine a fair rate under Section 31.
Hotel or lodging house - meaning under the Act
Section 2(d) defines a "hotel or lodging house" as a building or part of a building where lodging, with or without board or other services, is provided for monetary consideration. Section 31 is therefore directed specifically to charges connected with such accommodation and services.
When can a fair rate be fixed?
- A written complaint may be made regarding excessive charges.
- The Controller may also act otherwise than on a written complaint if there is reason to believe the charges are excessive.
- The Controller may separately fix the fair rate for lodging, board and other services.
- The determination must take account of the statutory factors stated in Section 31(2).
Factors considered while fixing the fair rate
The statutory benchmark is not limited to the current market rate. Section 31(2) specifically directs the Controller to consider the circumstances of the case, the prevailing rate for the same or similar accommodation, board and services during the twelve months immediately before 1 June 1951, and the general increase in the cost of living after that date.
Effect of fixation under Section 31
Once a fair rate is fixed under Section 31, the related provisions of the Act become important. Section 32 provides for revision of the fair rate, while Section 33 deals with charges in excess of the fair rate not being recoverable.
Official text of the Delhi Rent Control Act, 1958
For the authoritative statutory text, amendments and related provisions, refer to the Delhi Rent Control Act, 1958 on India Code.