In Brief
A landlord let out shop premises in 1995 at Rs. 8,500/month with a 10% annual increase clause. By 2003, rent reached Rs. 16,564/month. The Rajasthan Rent Control Act 2001 (effective April 1, 2003) prescribes a 7.5% annual increase for existing tenancies. When the landlord demanded arrears from August 2003, the tenant deposited rent at Rs. 13,600/month (applying the statutory rate retrospectively). The Supreme Court held that agreed rent continues unless the landlord invokes statutory revision procedures. The tenant cannot unilaterally recalculate and reduce rent. The landlord's failure to demand the contractual 10% increase did not breach the Act. The tenant defaulted by paying less than the legally demanded amount, making eviction grounds available.
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