rent control act Flashcards
purpose of act and application ?
It is an act to unify, consolidate and amend the law relating to the control of rent and
repairs of certain premises and of eviction and for encouraging the construction of new
houses by assuring a fair return on the investment by landlords
The Act aims at
zproviding a ordable temporary accommodation to the residents of the State while ensuring a
transparent relationship between the two parties
● S.2-Application
○ ExtendstothewholeofMaharashtra
○ (1) Apply to premises for the purpose of residence, education, business, storage or
trade in areas speci ed in Schedule 1 & 11
exemptions of application
Government Premises:
- The Act does not apply to premises owned by the Government or a local authority.
- It also does not apply to tenancies created by government grants or premises leased by the Government.
However, the Act does apply to premises that the Government or a local authority rents from others.
Premises for Certain Organizations
The Act does not apply to premises leased or sub-leased to:
* Banks
* Public Sector Undertakings (PSUs)
* Corporations set up by Central or State law
* Foreign missions, international agencies, multinational companies
* Private and public companies with paid-up capital exceeding ₹1 crore.
* Special Exemptions by State Government (SG):
The SG can specify thatall or some provisions of the Act may not apply to:
* Premises used for charitable purposes.
* Premises held by public trusts for religious or charitable purposes and rented out at a low or nominal rate.
* Premises held by public trusts for religious or charitable purposes and managed by a local authority.
* Premises belonging to universities established by law.
define landlord
Landlord - means any person who is for the time being, receiving,
or entitled to receive,
* Rent in respect of any premises - whether on his own account or
behalf / benefit of, any other person or
* As a trustee, guardian, or receiver for any other person or Includes - in respect of a sub – tenant - a tenant who has sub-let any premises;
define tenant
Means any person by whom or on whose account rent is payable for any premise such as a tenant, deemed tenant, or a sub tenant.
if a tenant dies and the tenancy passes to any member of the tenants family who is residing/ conducting business/ trade. etc basically using the premise for any such purpose.
In the absence of such member, any heir of the deceased
tenant, as may be decided – by the court if in absence of
an agreement
Section 6
General Rule on Standard Rent:
Starting from the date this Act took effect, the rules on standard rent and permitted rent increases do not apply to any premises (whether old or new) that were not rented out continuously for at least one year.
Exceptions to the Rule:
This exemption does not apply to:
Premises built or rebuilt by the Government or the Maharashtra Housing and Area Development Authority (MHADA).
Premises covered under Sections 20 and 21 of the Act:
Section 20: If a tenant’s property is reconstructed, the tenant has 6 months from the handover date to give notice of their intention to return and** must agree to pay the standard rent. The rent increase cannot exceed double the original** rent unless approved by a court.
Section 21: If a landlord notifies a tenant that reconstruction will finish in 3 months, the tenant has 1 month to reoccupy. If the tenant does not act, they lose their tenancy rights. If the landlord fails to allow reoccupancy, they may face legal consequences.
court fixing rent
ection 8 – Fixation of Standard Rent by the Court
The court can fix or determine standard rent and permitted increases if requested, especially in cases where there is insufficient evidence of previous rent, disputes on rent or permitted increases, or if premises were rented nominally or rent-free. If a tenant applies for rent fixation, they must deposit a specified amount until a final decision. During a rent recovery suit, the court may require a reasonable interim rent deposit or payment to the landlord. Failure to comply may result in dismissal of the tenant’s application or barring their defense in the suit. No appeal can be made against these court orders, and tenants in the same building may apply jointly.
Section 9 – Existing Rent Fixation
If standard rent has already been set by a court or authority without fraud or error, and there are no changes in structure or amenities, the court will not entertain a new rent fixation application.
sec 10
Section 10 – Rent in excess of standard rent illegal.
Any contravention - shall be an offence
unless the landlord was, before the coming into operation of this act,entitled to recover such increase by virtue of , or under the repealed acts, is entitled to recover said increase
punishable, on conviction, with imprisonment not exceeding three months or fine not exceeding rupees five thousand or with both.
S.14- ● S.14-TheLandlord’s duty to keep the premises in good repair
- every landlord shall be bound to keep premises in good and tenantable repair
- in a reasonable time after a notice of 15 days is served upon him by post or in any other by tenant(s), the tenants themselves can make the repairs and later deduct from rent or recover from
landlord
When tenants pay jointly for repairs, each tenant can deduct or recover their share of the cost from the landlord. The amount they can recover is based on their proportion of rent compared to the total repair cost, plus 15% simple interest per year.
However, the amount deducted in any one year cannot exceed 1/4th of the tenant’s annual rent.
Additionally:
Accounts and receipts kept by tenants for the repair expenses will serve as final proof of the spending and are binding on the landlord.
CHAPTER-III:RELIEFAGAINSTFORFEITURE
S. 15- No ejectmentto beordinarily made if the tenant pays or is ready and willing to pay standard rent (SR) along with permitted increases (PI)-
- Notice Requirement:
The landlord must give the tenant a 90-day written notice for unpaid SR or PI before filing an eviction suit, as specified under Section 106 of the Transfer of Property Act (TOPA).
- Eviction Protection:
* No eviction order can be issued if, within 90 days of receiving the court summons, the tenant pays the SR and PI with 15% simple interest on any overdue amount.
* The tenant must continue paying SR and PI in court until the case is resolved and pay any court-ordered costs. - Payments During the Suit:
While the suit is ongoing, the court may direct that any payments made by the tenant be given to the landlord as partial payment for any SR or PI owed.
a landlord shall be entitled to recover possession of any premises if the court is satisfied
* The tenant has committed any act contrary to the
provisions of clause (o) of Section 108 of the TOPA –
Rights and liabilities of the lessee – use the property as a person ordinary prudence – used for the purpose for which leased.
so under that section if the tenant erects any permanent structure w/o permission. unlawfully sublets among others, landlord shall be entitled to recover posession
Section 11 – Increase in rent
not in syllabus
Landlord shall be entitled to make an increase of 4% pa in the rent
for premises let for the purposes of residence, education, business,
trade or storage in the areas specified in Schedule I and Schedule
II
* A reasonable increase for an improvement or alterations of the premises which has been made with the consent of the 70% of the tenants given in writing.
Special / Structural Repairs – 25% increase in rent permitted –
Babulal Fakirchand Agarwal v. Suresh Kewal Malpani
n this case, landlords filed for eviction because:
They need the property for their own use.
The tenant is using the shop for purposes other than agreed in the lease.
The tenant hasn’t paid rent.
Issue: If the tenant pays the overdue rent within the notice period under Section 15(2) of the Maharashtra Rent Control Act, can the landlord still pursue eviction for rent arrears under Section 15(3)?
Held:
The Maharashtra Rent Control Act aims to balance rent control with fair rights for landlords, allowing them to reclaim property if tenants violate lease terms.
Although the tenant initially paid overdue rent upon receiving the eviction notice and continued making payments in court, they did not do so consistently as required by Section 15(3), which mandates regular payment of rent and increases until the case is fully resolved.
Because the tenant failed to meet this requirement, eviction can still be ordered.
Sub tenancy
Section 25: Sub-Tenants’ Rights on End of Tenancy
If a tenant’s lease ends for any reason, any legally established sub-tenant will become the direct tenant of the landlord. This applies if the sub-tenancy was active when the Act began or if it was allowed by the tenant’s contract with the landlord. The sub-tenant will keep the same terms as they had with the original tenant.
Section 26: Tenant Restrictions on Sub-Leasing
Unless a contract states otherwise, tenants cannot legally sub-let, assign, or transfer the rental property to others. However, the State Government can, by notification, allow transfers for certain types of residential premises in specific areas.
sec 30, 31
Section 30: Prohibition on Converting Residential to Commercial Use
Landlords cannot convert or allow residential properties to be used for commercial purposes if they were originally residential at the start of the Act. Violations are punishable by up to 6 months in prison, a fine of up to ₹10,000, or both.
Section 31: Requirement to Issue Receipts
Landlords must provide a receipt for any payment received from tenants, and issue rent receipts in the name of a deceased tenant’s family member. Failing to issue receipts can lead to a fine of up to ₹100 per day.
S.33-Jurisdiction of courts
jurisdiction will be Court of Small Causes, Mumbai and
he court of the Civil Judge (Junior Division) having jurisdiction in
the area in which the premises are situate- shall have jurisdiction for any suit proceeding etc regarding landlors and tenants
SS(2) The District Court may at any stage withdrawS/P/A-pendinginaCourtof
Small Causes– established under the Provincial Small Causes Courts Act, 1887, and
transfer the same for trial or disposal to the Court of the Civil Judge (Senior Division)
having ordinary jurisdiction in such area
○ Whenwithdrawn- The Court of the Civil Judge, may either retryitorproceedfrom
the stage at which it was withdrawn;
appeals
S.34-Appeals
○ Notwithstanding-anappeal shall lie
○ in Brihan Mumbai- to a bench of two judges of the same court, exclusing the judge who made the decree/order
- to be filed within 30 days from date of decree and no further appeal is allowed against any decision mad ein appeal
- No appeal to lie from
■ A decree/order that is not appealable under CPC 1908
■ From a decree/order in any S/P (excluding suit for possession)- where plaintiff seeks to recover rent in respect of any premises and the amount of value does not exceed :
● If instituted under Brihan Mumbai- 10k
