As per case facts, shopkeepers in Sector 17, Chandigarh, initially leased commercial premises at a low rent, which saw multiple enhancements over time. When the rent was significantly increased again, ... the lessees challenged it in the High Court. The High Court generally upheld the administration's right to revise rents but allowed lessees to retain possession upon agreement to new terms and payment of arrears with interest. Subsequent review petitions by the lessees were also dismissed. The question arose whether the respondent Administration had the jurisdiction to enhance rent without specific rules under the Capital of Punjab (Development & Regulation) Act, and if such power, if it existed, was exercised fairly and without arbitrariness, as well as the justification for the awarded interest on arrears. Finally, the Supreme Court upheld the High Court's judgment, affirming the Administration's power to enhance rent, even if formal rules were lacking, provided the action was fair, reasonable, and non-arbitrary. The Court modified the interest rate on arrears from a higher percentage to a slightly lower one, finding the original rate excessive. It clarified that rent should not be enhanced during the subsistence of a lease term without proper justification and mandated that the Administration frame necessary rules under the Act for future rent revisions to ensure transparency and prevent arbitrary actions.