22. Application of this Chapter.—The provisions of this Chapter shall apply to all hotels and
lodging houses within the Municipalities of New Delhi and Delhi and the Notified Area of the Civil
Station, Delhi and may be applied by the Central Government, by notification in the Official Gazette, to
such other areas in the State of Delhi or Ajmer as may be specified in the notification.
23. Appointment of Controller.—The Central Government may, by notification in the Official
Gazette, appoint any person to be a Controller for the purpose of performing the functions assigned to
him by this Chapter.
24. Fixing of fair rate.—(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, he may fix a fair rate to be charged for board, lodging or other services provided in
the hotel or lodging house and in fixing such fair rate, specify separately the rate for lodging, board or
other services.
(2) In determining the fair rate under sub-section (1), the Controller shall have regard to the
circumstances of the case and to the prevailing rate of charges for the same or similar accommodation,
board and service, during the twelve months immediately preceding the 1st day of September, 1939 and
to any general increase in the cost of living after that date.
25. Revision of fair rate.—On a written application from the manager of a hotel or the owner of a
lodging house or otherwise, the Controller may, from time to time, revise the fair rate to be charged for
board, lodging or other service, and fix such rate as he may deem fit having regard to any general rise or
fall in the cost of living which may have occurred after the fixing of the fair rate.
26. Charges in excess of fair rate not recoverable.—When the Controller has determined the fair
rate of charges—
(a) the manager of the hotel or the owner of the lodging house, as the case may be, shall not
charge any amount in excess of the fair rate and shall not, except with the previous written consent of
the Controller, withdraw from the lodgers any concession or service allowed at the time when the
Controller determined the fair rate;
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(b) any agreement for the payment of any charges in excess of such fair rate shall be void in
respect of such excess and shall be construed as if it were an agreement for payment of the said fair
rate;
(c) any sum paid by a lodger in excess of the fair rate shall be recoverable by him at any time
within a period of six months from the date of the payment from the manager of the hotel or the
owner of the lodging house or his legal representatives and may, without prejudice to any other mode
of recovery, be deducted by such lodger from any amount payable by him to such manager or owner.
27. Provisions relating to inquiries by Controller.—(1) No fair rate under this Chapter shall be
fixed by the Controller except after holding an inquiry.
(2) Every such inquiry shall be made summarily in the prescribed manner.
(3) For the purposes of holding any inquiry under sub-section (1), the Controller may require the
manager of a hotel or the owner of a lodging house to produce before him any books of account,
documents or other information relating to the hotel or lodging house concerned which he may consider
necessary and may himself enter, or authorise any person subordinate to him to enter, upon any premises
to which the inquire relates.
28. Recovery of possession by manager of a hotel or the owner of a lodging
house.— Notwithstanding anything contained in this Act, a manager of a hotel or owner of a lodging
house shall be entitled to recover possession of the accommodation provided by him on obtaining a
certificate from the Controller certifying—
(a) that the lodger has been guilty of conduct which is a nuisance or which causes annoyance to
any adjoining or neighbouring lodger;
(b) that the accommodation is reasonably and bona fide required by the owner of the hotel or
lodging house, as the case may be, either for his own occupation or for the occupation of any person
for whose benefit the accommodation is held, or any other cause which may be deemed satisfactory
by the Controller;
(c) that the lodger has failed to vacate the accommodation on the termination of the period of the
agreement in respect thereof;
(d) that the lodger has done any act which is inconsistent with the purpose for which the
accommodation was given to him or which is likely to affect adversely or substantially the owner's
interest therein;
(e) that the lodger has failed to pay the rent due from him.
29. Appeals.—(1) Any person aggrieved by the order of the Controller under this Chapter may,
within fifteen days on which the order is communicated to him, prefer an appeal in writing to the Chief
Commissioner.
(2) The Chief Commissioner shall call for the record of the Controller and after examining the record
and after making such further inquiry as he thinks fit either personally or through the Controller, shall
decide the appeal.
(3) The decision of the Chief Commissioner and subject only to such decision, the order of the
Controller shall, for the purposes of this Chapter, be final.
30. Penalty.—Any manager of a hotel or owner of a lodging house who—
(i) fails or refuses to produce before the Controller any books of account or document or other
information which the Controller may require him to produce under sub-section (3) of section 27, or
refuses to allow the Controller or any person authorised by him under the said sub-section access to
the premises to which the inquiry relates; or
(ii) charges any amount in excess of the fair rate in contravention of section 26,
shall be punishable with imprisonment for a term which may extend to three years or with fine or with
both.
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31. Controller to be deemed to be public servant.—A controller appointed under this Act shall be
deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (Act XLV of
1860).
32. Protection of action taken under this Chapter.—No suit, prosecution or other legal proceeding
shall lie against a Controller in respect of anything which is in good faith done or intended to be done
under this Chapter.