Rights of tenants under tamilnadu rent control act


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Rights of tenants under tamilnadu rent control act

  1. 1. RIGHTS OF TENANTS UNDER TAMILNADU RENT CONTROL ACT Lakshminarayanan Alaguraja Advocate
  2. 2. WHAT IS RENT CONTROL? <ul><li>Rent Control Act was an attempt by the Government of India to eliminate the exploitation of tenants by landlords. Rent legislation tends to providing payment of fair rent to landlords and protection of tenants against eviction. [Tamil Nadu Buildings (Lease and Rent Control) Act, 1960]. </li></ul>
  3. 3. LANDLORD <ul><li>“ includes the person who is receiving or is entitled to receive the rent of a building, whether on his own account or on behalf of another or on behalf of himself and others or as an agent, trustee, executor, administrator, receiver or guardian or who would so receive the rent or be entitled to receive the rent if the building were let to a tenant”. </li></ul>TENANT <ul><li>“ any person by whom or on whose account rent is payment for a building and including the surviving spouse, or any son, or daughter, or the legal representative of a deceased tenant”. (exhaustive definition) </li></ul>
  4. 4. RIGHT OF TENANTS <ul><li>Fair Rent [Sec. 4] </li></ul><ul><li>Landlord not to interfere with amenities enjoyed by tenant [Sec 7] </li></ul><ul><li>Receipt for Rent or Advance [Sec. 8] </li></ul><ul><li>Unreasonable Eviction </li></ul>
  5. 5. FAIR RENT <ul><li>Fair rent for a building is fixed in accordance with the principles set out in the Tamilnadu Buildings (Lease and Rent Control) Act. The fair rent for any residential (non residential) building shall be 9% (12%) gross return per annum on the total cost of such building. The total cost shall include the market value of the site, the cost of construction and the cost of amenities provided. </li></ul>
  6. 6. UNREASONABLE EVICTION <ul><li>The Tamil Nadu Buildings (Lease and Rent Control) Act of 1960 sets out certain specified grounds on which and which alone a landlord can evict his or her tenant. If you are a tenant of a premises, you have a right to protection if a landlord seeks to remove you from the tenanted premises for any reason, apart from the limited reasons, set out exhaustively in this statute. </li></ul>
  7. 7. EVICTION RIGHTS KEY <ul><li>Non payment of rent. </li></ul><ul><li>Sub letting without permission. </li></ul><ul><li>Purpose other than for which it was leased. </li></ul><ul><li>Impair materially the value and the utility of the building . </li></ul><ul><li>Tenant has been convicted under any law. </li></ul><ul><li>Nuisance to those residing in other portions of the same building . </li></ul><ul><li>Ceased to occupy the building for a continuous period . </li></ul><ul><li>Denied the title of the landlord . </li></ul><ul><li>Landlord requires the building for his own occupation . </li></ul><ul><li>Occupation has now ceased . </li></ul><ul><li>Failed to deliver vacant possession of the premises to the landlord in accordance to such notice . </li></ul><ul><li>immediate eviction of tenant can be undertaken on the expiry of period of limited tenancy . </li></ul>
  8. 8. DEPOSIT THE RENT <ul><li>Where the address of the landlord or his authorized agent is not known to the tenant, he may deposit the rent lawfully payable to the landlord in respect of the building, before the Controller in such manner as may be prescribed, and continue to deposit any rent which may subsequently become due in respect of the building before the Controller and in the same manner until the address of the landlord or his authorized agent becomes known to the tenant. </li></ul><ul><li>Tenant is also entitled to deposit rent in case of bona fide doubt or dispute as to the person entitled to receive it. </li></ul>
  9. 9. AGREEMENTS <ul><li>There are two types of tenancy agreements in India, </li></ul><ul><ul><li>Lease Agreements which are covered by rent control laws and </li></ul></ul><ul><ul><li>Lease and License Agreement which are not. </li></ul></ul>
  10. 10. LEASE AGREEMENTS <ul><li>A Lease (or Rental) Agreement is covered by restrictive rent control laws. </li></ul><ul><ul><li>The amount of rent that can be charged is based on a formula devised by the local executive, legislative or judicial government, as the case maybe. </li></ul></ul><ul><ul><li>The Lease Agreement transfers the right of ownership to the tenant for an indefinite period of time, which can be problematic because it encourages the tenant to claim the right to permanent occupation. In numerous cases, tenants have refused to relocate. When brought to court, these cases can take 10 to 20 years to resolve. </li></ul></ul>
  11. 11. LEASE AND LICENSE AGREEMENT <ul><li>This agreement only grants the tenant a license to occupy the property for a period of 11 months, with an option for periodic renewal. </li></ul><ul><li>Because the rent control laws (which are largely in favor of tenants) only apply for lease agreements of at least 12 months, establishing an 11-month agreement serves as a pre-emptive measure. </li></ul>
  12. 12. S. LOGANATHAN VS HUSSAIN BI @ FATHIMAUNNISSA <ul><li>Suit for eviction – Bona fide requirement for parking car – petitioner admitted that respondent did not have any other premises other than the tenanted premises - Therefore, when the respondent is not occupying any other building and since she requires the disputed premises for keeping her son's car, she is entitled to get an order of eviction against the petitioner in accordance with law. </li></ul>
  13. 13. M.ASHOKAN VS. M.DHANASEKARA PANDIAN AND OTHERS. <ul><li>Eviction sought on ground of demolition and reconstruction – Order of eviction passed by Rent Controller and confirmed in appeal – Revision by tenant – Once land lord comes to Court with plea that building is old and, dilapidated, he must prove it – Age of building and dilapidated condition are not a sine quo non for ordering eviction No Court can prescribe any limit in regard to age and condition of die building – It is factor which has to be taken into consideration along with other factors in testing bonafide of landlord – Commissioner’s Reports indicate that tenement is in dilapidated condition – Tenant has not filed his objection to Commissioner’s Report – Landlord entitled to an order of eviction. </li></ul>
  14. 14. SC HOLDS WILFUL DEFAULT ON RENT AS GROUND FOR EVICTION <ul><li>The Supreme Court has recently held that bonafide need of a landlord and wilful default by a tenant can be grounds for evicting a tenant. The court upheld two eviction orders under the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. </li></ul>
  15. 15. Thank You