K.C. NAMBIAR vs THE IV JUDGE OF THE COURT OF SMALL CAUSES,MADRAS & ORS.

The Supreme Court interpreted Section 4(3)(b)(i) of the Madras Buildings (Lease & Rent Control) Act, 1960, clarifying that 'cost of construction' refers to the original construction cost rather than the market value at the enactment date. The Court held that using both 'cost of construction' and 'market value' in the statute indicates distinct components for calculating total cost, thus ruling that the High Court's dismissal of the tenant's writ application was incorrect. The appeal was allowed, affirming the original construction cost as the relevant measure.