A recent incident of an elderly couple from Greater Noida being allegedly forced to spend nights on the stairs of their own flat after a tenant refused to vacate the apartment has been in the news this week.
Our country is not alien to disputes between landlords and tenants, and several reforms have time and again been brought in to ensure that these disputes are resolved quickly, while also taking care of the rights of both parties.
Tenancy laws and reform not only need to protect tenants against unfair evictions or rent hikes but also need to protect the landlords’ interests.
Tenancy laws
Tenancy and leasing in India have been governed by the rental laws. A Rent Control Act was passed in the year 1948 to balance and protect the interests of both the landlords and the tenants. Different versions of the rent act have been introduced by the states, with each state having its own rent act, like Maharashtra Rent Control Act 1999, Delhi Rent Control Act 1958 etc.
It is important to note that land is a state subject, an aspect covered completely by the states. The states are, therefore, governed by their own rent control acts and many have amended them from time to time.
The Rent Control Acts in different states are different yet similar in their basic scheme and intent to protect tenants from unfair eviction, protect landlords’ interests and settle the disputes between them.
The laws provide for a written rental agreement between the two parties with the terms and conditions of tenancy.
The tenants are mostly protected with several rights including right against unfair eviction, right to basic essential services, right to a fair rent etc. The landlords are also entitled to be protected through right to evict with reasons, right to charge rent, etc
Centre’s Model Tenancy Act 2021
The Model Tenancy Act, 2021 was approved by the Government of India in June 2021 and circulated to all states and union territories on June 7, 2021
The Act has been enacted:
– To establish rent authority to regulate renting of premises
– To protect the interests of landlords and tenants
– To provide speedy adjudication mechanism for resolution of disputes
What does the Model Act say
The MTA mandates a written rental agreement. The parties are required to enter into a written agreement specifying the tenancy period, rent payable and security deposit and other related terms.
Under section 5 of the act, every tenancy entered is valid for a period as agreed upon between the landlord and the tenant and as specified in the tenancy agreement. A renewal or extension of the tenancy can be asked for within the period agreed to in the tenancy agreement.
If a tenancy for a fixed term ends and has not been renewed or the tenant fails to vacate the premises at the end of such tenancy, then the tenant is be liable to pay an enhanced rent to the landlord. The enhanced rent would be twice the monthly rent for the first two months and then four times till the latter continues to occupy the said premises.
With regard to dispute redressal, in case of a dispute, the parties approach the rent authority, the order can then be challenged before rent court followed by the rent tribunal.
Important rules relating to eviction
Section 21 and 22 provide the situations in which a tenant can be evicted-
An application can be made by the landlord, the rent court seeking eviction and recovery of possession of the premises in case of the following reasons:
– Failure to pay rent by tenant as per the tenancy agreement, and failure to pay arrears of rent for two consecutive months
– If a tenant has parted with possession of the premises without the written consent of the landlord or has continued to misuse the premises even after a notice from the landlord
– Necessary for the landlord to carry out repairs, construction, etc
– When the tenant has given a written notice to vacate the premises, and as a consequence, the landlord has contracted to sell the premises, or taken other similar steps
– Structural changes carried out without the written consent of the landlord
– On landlord’s death, if the premises is required by the legal heirs of the landlord
What if a tenant doesn’t vacate premise?
According to the Act, if a tenant fails to vacate the premises at the end of the tenancy, then such tenant will be liable to pay enhanced rent to the landlord.
However, in case of any disastrous event in the nature of force majeure, the landlord will allow the tenant to continue in the premises for a period of one month, from the date of cessation of such event.
Is the Model Act Binding?
It may be noted that since land is a state subject the MTA is not mandatory for the states/UTs to implement, but they can enacting fresh acts or amend the present ones in line with the Model Act.
According to a report, only four states- UP, Tamil Nadu, Assam and Andhra Pradesh, have aligned their local rental laws with the provisions of the Modal Tenancy Act, even after a year since the centre circulated the central version of the law, asking states and union territories to either amend their existing laws or make new laws to make rental laws in line with the MTA.( please hyperline the report-https://housing.com/news/all-you-need-to-know-about-the-model-tenancy-act-2019/)
How is tenant protected under Tenancy laws in UP
Considering the present case is from Uttar Pradesh, the relevant law would be the UP Regulation of Urban Premises Tenancy Act 2021.
Protection of Tenant against eviction-
Only if agreed to by parties – A tenant is protected from being evicted during the continuance of tenancy agreement unless otherwise agreed to in writing by the landlord and tenant.
No recovery of possession if premises bought after occupation by tenant- A tenant is protected from eviction in cases where the landlord acquires a land, after the tenant already occupied it.
An application for recovery of possession of such premises can be made either after one year from acquisition has elapsed or tenancy agreement has expired.
Tenants to be intimated- The provisions are similar to that of the Model Act, and state that in case of acquisition of premises, landlord has to intimate the tenant within one month of such acquisition.
How is landlord protected
In line with the Model Act, the landlords under this act can also seem eviction by applying to the rent authority in cases where there has been misuse of property, non-payment of agreed rent, misuse of premises, repairs are to be carried out, there’s structural damage to property by tenant etc.
Bonafide requirement
The clause regarding bonafide requirement is very crucial as far as protection of landlord’s interests are concerned, and is a common feature of rent acts of various states like UP, Delhi etc
The Delhi Rent Control Act, 1958 amended in 1988 eviction can be sought if landlord is in genuine and bonafide need of the rented premises if the land is required for landlord’s use to conduct a business or to reside in the property and the landlord has no other alternative property which he can use.
Section 21 of the UP act provides that eviction can be sought be tenant when the premises are required by landlord for the purpose of its occupation.
The Supreme Court in the case of Baldev Singh Bajwa had in 2005 held that whenever eviction is sought on bonafide grounds, the presumption will be bonafide and the burden to rebut it will be on tenant.
Recent important cases
Several courts of the country have time and again decided tenancy disputes while interpreting provisions from different state rent acts.
In the case of Harish Kumar vs Pankaj Kumar, the Supreme Court observed that to seek eviction on the ground of bonafide requirement under the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, a landlord is not required to be unemployed.
The court observed, all that the provision contemplates is that the requirement so pleaded by the landlord must be bonafide.
With regard to dispute over tenancy of a shop in West Bengal, the Supreme Court had last year imposed a penalty of Rs 1 lakh on the tenant who had deprived the landlord of possession of his premises for over 30 years. The court while directing him to hand over the possession, had also asked the tenant to pay the rent for the last 11 years at the market rate.
In a recent case, the Rajasthan High Court opined that the basic object of the Rajasthan Rent Control Act, 1950 save tenants from harassment may not be misconstrued to deprive the landlords of their bonafide properties for all times to come.
Noting that the tenant was in occupation of the premises since 1948, the High Court granted three months’ time to tenant to vacate the premises.
The Supreme Court in March this year observed that failure to pay rent may have civil consequences, but is not a penal offence under the Indian Penal Code. The Court in the case of Neetu Singh v State of UP quashed an FIR registered against a tenant by a landlord.
The Supreme Court in the case of Balwant Singh vs Bant Kumar, had upheld an eviction order passed in favour of a landlord under East Punjab Urban Rent Restriction Act, 1949. The court had observed that a tenant cannot dictate how much space is adequate for landlord’s proposed business venture.
A Supreme Court bench headed by Justice DY Chandrachud had in 2019 observed that a statutory tenant can be evicted only by following the procedure laid down in applicable rent control laws and not by filing suit for possession against him/her.
The court had observed that the protection to a statutory tenant by rent control laws can only be overcome by following the procedure laid out in such laws.
— ENDS —