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To which premises does Maharashtra Rent Control Act, 1999, apply?  The term 'premises' has been defined under section 7(9) as 'any building or part of a building, let orthe given on licence separately (other than a farm building) including,-(i) gardens, grounds, garages and out-houses, if any, appurtenant to such building or part of a building, (ii) any fittings affixed to such building or part of a building for the more beneficial enjoyment thereof, but does not include a room or other accommodation in a hotel or lodging house.'

Section 2 of the Act deals with the applicability of the Act. Under this section, the Act applies to following categories:  The premises let for the purposes of residence, education, business, trade or storage in the cities and towns of Maharashtra, specified in Schedule I and Schedule II to the Act.  The Act shall also apply to the premises premises or, as the case may be, houses let out in the areas to which the Bombay Rents, Hotel and Lodging House Hou se Rat Rates es Con Contro troll Act Act,, 19 1947 47 or the Centr Central al Pr Provi ovince nces s and Ber Berar ar Lettin Let ting g of Hou Houses ses and Re Rent nt Con Contr trol ol Ord Order, er, 19 1949 49,, iss issued ued und under er the Central Provinces and Berar Regulation of Letting of Accommodation Act, Ac t, 19 1946 46 an and d the the Hy Hyde dera rabad bad Ho Hous uses es (R (Ren ent, t, Ev Evic icti tion on an and d Le Leas ase) e) Cont Co ntro roll Ac Act, t, 19 1954 54 we were re ex exte tend nded ed and ap appl plie ied d be befo fore re the the da date te of  commencement of this Act, and such premises or houses continue to be so let on that date in such areas which are specified in Schedule I to this Act. This applies even if such area ceases to be of the description therein specified.  The State Government may, by notification in the Official Gazette, direct the following:  This Act shall not apply to any of the areas specified in Schedule 1 or Sche Sc hedu dule le II or that that it sh shal alll no nott ap appl ply y to an any y on one e or al alll pu purp rpos oses es specified in sub-section (1);  This Act shall apply to any premises that are let for any or all purposes, specified in sub-section (1), in the areas other than those specified in Schedule 1 and Schedule II.

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Sectio Sect ion n 3 of th the e Ac Actt st stat ates es th that at it ittt sh shal alll no nott ap appl ply y to th the e following cases: to premises, belonging to the government or a local authority; to pr prop oper erti ties es take taken n on be beha half lf of the the go gove vern rnme ment nt on the the ba basi sis s of  tenancy, licence or other like relationship by, or in the name of any off office icer, r,essub subord ordina inate ton the govern ernme nt.the Howeve ever, r, it nt doe does s ,app apply tol pr prem emis ises le let t or, or , te gi give ven on gov li lice cenc nce, e,ment. to thHow e go gove vern rnme ment or, or a ly lo loca cal authority or, taken on behalf of the government, by or, in the name of  such officer; to premises let or, sub let to (i) banks (ii) public sector undertakings; (iii) corporations, established by any Central or State Act, (iv) foreign missions; (v) international agencies; (vi) multinational companies; and (vii) private or public limited companies, having a paid up share capital of Rs.1 crore, or more.

Section 3 (1) (b) of the Act exempts ''the banks or public undertakings, multinational companies etc., having a paid up share capital of Rs. 1 crore or more, from the protection of the Act. This means that that the Act shall not apply to any premises, let or sub-let to banks, or any Public Sector Undertakings or any Corporation established by or under any Central or State Act, or foreign missions, international agencies, multin mul tinati ational onal com compan panie ies, s, and pri privat vate e lim limite ited d com compan panies ies and pub public lic limited companies, having a paid up share capital of rupees one crore or more.'' The effect of this is that banks, public sector undertakings etc. cannot claim protection and have to vacate the premises as soon as the contractual period is over. Whether such a bank or a public sector undertaking was a tenant or a licencee or a lessee, once any cont co ntra ract ctual ual peri period od of us use e is ov over er,, it is no nott en enti titl tled ed to stay stay in the the premises. In Bhanumati Mansukhlal Shah and others v. Central Bank of  the Sm Smal alll Ca Caus uses es Co Cour urtt of Bo Bomb mbay ay co comm mmen ente ted d that that 't 'the he India, the legislature chose to exempt affluent tenants like banks, or any Public Sector undertakings or any Corporation, established by or under any Cent Ce ntra rall or Stat State e Ac Act, t, Fo Fore reig ign n mi miss ssio ions ns,, Inte Intern rnat atio iona nall ag agen enci cies es,, Multinational Companies, Private limited companies and Public limited companies, having a paid up share capital of more than rupee one crore or more, from protection under the Maharashtra Rent Control Act, Ac t,1 1999 an and d wil illl ha hav ve to vac acat ate e th the e pr pre emise ses s as so soon on as th the e contractual period is over.'

 

Is the State Government vested with any discretionary power to ex exem empt pt an any y ca cate tego gory ry of pe pers rson ons s or pr prem emis ises es fr from om th the e purview of the Act?  The State government may direct that all or any of the provisions of  this Act, subject to any conditions or terms as may be specified by the Government, shall not apply to the following categories: Premises used for charitable purposes; Prem Premis ises es,, he held ld by the the pu publ blic ic se sect ctor or fo forr ch char arit itab able le an and d re reli ligi giou ous s purposes, which are let out at a nominal rent; Premises, held by a public trust for a charitable or religious purpose and, administered by a local authority; Premises, belonging to or, vested in a university, established by law, for time being in force. However, before making such direction it is the statutory duty of the Government make sure that the interest of the existing tenants is not adverselyto affected.

Are there any premises to which the Standard Rent provisions do not apply? Section 6 of the Act states that the provisions related to the standard rent and permitted increase; do not apply if, from the commencement of the new Rent Act i.e. 30 th March 2000, the premises are not given on rent or licence, for a continuous period of one year. This section applies even if the premise is newly constructed or old.  The section also provides for the exceptions to the non-application of  the pro provis vision ions s tha thatt are relat related ed to the standa standard rd ren rentt and per permi mitte tted d increase:  The premises vacated for demolition demolition or reconstruct reconstruction; ion;  The premises, constructed or reconstructed, by the government, or the Maharashtr Mahar ashtra a Housi Housing ng and Area Developm Development ent Autho Authority rity (MHADA) or, any of its boards.

Who are the persons included under the term 'tenant'?

 

 The word 'Tenant' is defined in Section 7(15) of the Rent Act. It includes any person by whom or, on whose account, rent is payable, for any premises. It, also, includes the following persons: a tenant; a person who become tenant on the commencement of the Act Section 25; a sub-tenant, as permitted under a contract or, by the permission or, consent of the landlord; a person who has derived title under the tenant; It also includes a person, to whom interest in the premises has been assig ass igne ned d or, or, tr tran ansf sfer erre red, d, as pe perm rmit itte ted, d, by vi virt rtue ue of, of, or un unde derr the the provisions of any of the repealed Acts; With regard to any premises, when the tenant dies, whether the death occurred before or after the commencement of this Act, to any of the following members of the tenant's family: where the premises are rented for residence, is residing, where wher e the the pr prem emis ises es are are re rent nted ed fo forr ed educ ucat atio ion, n, bu busi sine ness ss,, trad trade e or storage, is using the premises for any such purpose; at the time of the tenant's death, any heir of the deceased tenant, as may be decided, in the absence of agreement, by the court.

Explanation: The provisions of this clause for transmission of tenancy shall not be restricted to the death of the original tenant, but shall apply, even on the death of any subsequent tenant, who becomes tenant ten ant und under er the these se pro provis vision ions, s, on the de death ath of the las lastt pre preced ceding ing tenant.

What is Standard Rent? Standard Rent, in relation to premises, falls into the following categories:  The Standard Rent is fixed by the court or, the Controller, as the case may be, under the earlier laws (such as the Bombay Rent Restriction Act, 1939; the Bombay Rents, Hotel Rates, and Lodging House Rates (Control) Act, 1944 and the Bombay Rents, Hotel Rates, and Lodging House Hou se Rat Rates es Con Contr trol ol Act Act,19 ,1947 47 and the Ce Centr ntral al Pr Provi ovince nces s and Ber Berar ar Lett Le ttin ing g of Ho Hous uses es and Re Rent nt Co Cont ntro roll Or Orde der, r, 19 1949 49 is issu sued ed un unde derr the the

 

Central Provinces and Berar Regulation of Letting of Accommodation Act, 1946 or the Hyderabad Houses ( Rent, Eviction and Lease) Control Act, 1954) on the basis of such rent, plus an increase of 5%; But where the Standard Rent or, fair rent, is not so fixed, the rent at which the premises were let on 1 st October, 1987. If the premises were not let on 1st of October, 1987, the rent at which they were, last, let before that date plus 5%; or, Standard Rent may be fixed by the court, in the following cases: Where the rent, prevailing on or before 1 st October, 1987, can not be ascertained; Where, by reason of the premises having been let at one time, as a whole or, in part or for any other reason; Where the premises have been let, rent free or, for a nominal rent or, for a consideration in addition to rent; Where Wher e ther there e is a di disp sput ute, e, re regar gardi ding ng Stand Standar ard d Re Rent nt,, be betw twee een n the the landlord and the tenant. Either the landlord or the tenant can apply for the fixation of Standard rent and permitted increase to the court under section 8 of the Act.  The court shall, in the above cases, fix the standard rent and permitted increase. However, a court shall not fix standard rent or permitted increase if the rent has been already fixed by a competent court on the merits of the court and there are no structural s tructural alterations or change in the amenities or any change in any other factors that are relevant to the fixation of  standard rent.

protection under the new Rent Act? Can a paying guest claim protection  The term 'paying guest' is defined in section 7(7) of the Act which means a person, not being a member of a family, who is given a part of  the premises in which the licensor resides on licence.  The Mahartashtra Rent Control Act, 1999 does not protect the paying guests.

Are all agreements of tenancy or, leave & licence required to be registered after 31st March 2000?

 

 Yes, it is provided by Section 55 that any agreement of tenancy or, leave lea ve and li licen cence, ce, ent entere ered d int into o aft after er 31st Mar March, ch, 2000 2000,, mu must st be in writing and, registered under the Registration Act, 1908. The landlord is responsible for getting the agreement. If he commits any default, he is lia iabl ble e to su suff ffer er impr priiso sonm nme ent up to 3 mon onth ths s or or,, fi fine ne up to Rs.5,000/= or, both. Further, in the absence of a written registered agreement, the tenant's version of the terms and conditions of the agreement shall prevail, unless otherwise proved.

What is the registration fee charged on a document of leave and licence? By a special notification dated 08-March-2000, the state government has fixed the fees as follows:

If the property is situated: within the limits of a Municipal Corporation, Rs.5,000/in any other area Rs.500/-

Wil Willl a Bus Busine iness ss Ser Servic vice e (Ce (Centr ntre) e) Ag Agree reemen mentt be reg regist istera erable ble under the Act? A Business Service would require registration under the provisions of  the Maharashtra Rent Control as or, such agreements are not agreem agr eement ents s bet betwe ween en lan landlo dlord rd Act and1999, ten tenant ant lic licens ensor or and lic licens ensee, ee, relating to premises but, are agreements in the matter of providing servic ser vices, es, suc such h as tel teleph ephone one,, tel telex, ex, mai mail, l, sec secre retar tarial ial sta staff ff etc etc.. and and,, incidental to these services, a cabin or room is made available to the person, availing of such facilities. However, if what is given on licence are premises and, incidental to the occupation of such premises, facilities, such as telephone, telex, mail, com co mpu pute terr, Se Secr cre eta tari rial al St Staf afff etc. etc.,, ar are e pr prov oviided, ded, th the en, su suc ch an agreem agr eement ent wou would ld requi require re reg regist istrat ration ion und under er the Mah Mahara arasht shtra ra Re Rent nt Control Act, 1999.

 

Is it illegal for a landlord to charge a rent which is in excess of  the standard rent? Section 10 of the Act makes it illegal to claim or receive any increase above the standard rent and permitted increase on account of rent.

There are exceptions to the sections: If the premises are not given on rent or licence, for a continuous period of one year from the commencement of the new Rent Act i.e. 30 th March 2000, by virtue of section 6 of the Act, the provisions related to the the stand standar ard d re rent nt an and d pe perm rmit itte ted d in incr crea ease se do no nott ap appl ply y to thes these e premises, whether the premise is newly constructed or old. Thus, it will be legal if the landlord charges rent above standard rent and a nd permitted increase. If the landlord was entitled to recover such increase by virtue of, or under the provisions of any of the repealed Act before the coming into operation of this Act, or is entitled to recover such increase under the provisions of this Act, he can take the rent excess to the standard rent and permitted increase.

Can a landlord increase the rent on account of improvement?  The landlord, by virtue of section 11(1) of the Act, is entitled to make an increase of 4% per annum in the rent after the commencement of  the Act. The period of one year, on completion of which rent shall be so increased, shall be computed from the date of commencement of this Act. This increase is permitted only in respect of the premises, let for the purposes of residence, education, business, trade or storage. A landlord shall be entitled to make such increase in the rent of the premises only if the alterations or improvements have taken place with the consent of seventy per cent of the tenants. This consent has to be given in writing. The increase should be reas aso onable for an improv imp roveme ement nt or str struct uctura urall alt alter erati ations ons of the pre premi mises ses as sta stated ted by section 11(2) of the Act. The improvements and alterations, mentioned here, her e, do not inclu include de repai repairs, rs, which the lan landlo dlord rd is bou bound nd to mak make e under sub-section (1) of section 14.

What is the permissible income in rent, with regard to special additions to premises or, special alterations made, therein?

 

By Section 11(3) of the Act, it is provided that a landlord is entitled to make an increase in the rent by an amount, not exceeding 15% per annum ann um,, of the the ex expe pens nses es in incu curr rred ed in ma maki king ng sp spec ecia iall ad addi diti tion ons s or, or, speci spe cial al alte altera rati tion ons s or, or, pr prov ovid idin ing g ad addi diti tion onal al am amen enit itie ies. s. Th The e tota totall expe ex pens nses es,, incu incurr rred ed,, wi will ll ha have ve to be ce cert rtif ifie ied d by the the Mu Muni nici cipa pall Authorities or, by an architect from the panel of architects, notified by the state government for the purposes of the Rent Act. This 15% per annum is permitted to be added to the rent till the landlord recovers the entire expenses, so incurred by him. According to section 11(4) of the Act,,the landlord shall also be further entitled to make a temporary increase in the rent of premises by an addition to the rent on account of special or structural repairs made by him. The rate of this increase must not exceed 25% the standard rent.  The increase of rent shall be payable from the date of completion of  the the re repai pairs rs ti till ll the the am amou ount nt of the the ex expe pend ndit itur ure e fo forr su such ch re repa pair irs s is recovered from the tenant. Such increase in rent shall be recoverable from all tenants, who occupy premises in the building, on the basis of the actual expenses incurred as sp spec ecif ifie ied d in a ce cert rtif ific icat ate e fr from om the the mu muni nici cipa pall au auth thor orit ity y or the the architect. The amount to be recovered from each tenant shall be in the same proportion as the rent payable by him in respect of his premises.

What is a landlord required to do before making any increase in re rent nt,, wi with th re rega gard rd to "e "exp xpen ense ses s in incu curr rred ed" " fo for r ad addi diti tion ons, s, alterations, improvements improvements or, amenities of the premises? Before making any increase as stated above, the landlord shall obtain in the prescribed manner and in the prescribed form, a declaration from the prescribed authority or a certificate from an architect from a panel of architects, notified by the State Government for the purposes of this Act, asserting that it is necessary to undertake such repairs and specifying the nature and extent of repairs that are required and the estimated cost. After such repairs are carried out, the landlord shall also obtain, in the prescribed manner and in the prescribed form, a certificate from such prescribed authority or such architect confirming that the repairs were carried out in accordance with the declaration or as the case may be, the the ce cert rtif ific icat ate e afor afores esai aid d an and d fi fixi xing ng the the da date te of co comp mple leti tion on of the the repairs and the actual expenses.

Is th the e la land ndlo lord rd en enti titl tled ed to in incr crea ease se th the e re rent nt on ac acco coun untt of  payment of rates and taxes to government or, local authority?

 

 The landlord is entitled to do increase the rent on account of payment of rates and taxes to government or, local authority under section 12 of the the Ac Actt pr prov ovid ided ed the the in incr crea ease se in the the re rent nt do does es no nott ex exce ceed ed the the amount of any such rate, charges, taxes, land assessment, ground rent of land or, any other levy on lands and buildings, as the case may be. He also, entitled to charges for electricity and water when the is, rent is inclusive of increase such charges, provided such evidence does not exceed the additional amount payable by him with regard to such charges.

What ar What are e th the e ci circ rcum umst stan ance ces s un unde der r wh whic ich h th the e la land ndlo lord rd ca can n recover possession of tenanted premises? Section 16  of the Act provides various grounds under which a landlord shalll be ent shal entitl itled ed to rec recove overr pos posses sessio sion n of any pre premis mises. es. The cou court rt should be satisfied of the presence of these grounds. These grounds are as follows: If the the tenan tenantt ha has s co comm mmit itte ted d an any y ac actt co cont ntra rary ry to the the pr prov ovis isio ions ns of  clause (o) of section 108 of the Transfer of Property Act, 1882 which reads as follows: - "the lessee may use the property and its products (if  any) as a person of ordinary prudence would use them if they were his own; but he must not use, or permit another to use, the property for a purpose other than that for which it was leased, or fell or sell timber, pull down or damage buildings belonging to the lessor, or work mines or quarries not open when the lease was granted, or commit any other act which is destructive or permanently injurious thereto;" Butt re Bu repl plac acin ing g of ti tile les s or cl clos osin ing g of ba balc lcon ony y of the the pr prem emis ises es is no nott considered as an act of a causing damage to the building or as being destructive or permanently injurious.  The tenant has erected on the premises any permanent structure without the landlord's consent in writing. The expression "permanent stru struct ctur ure" e" do does es no nott in incl clud ude e the the ca carr rryi ying ng ou outt of an any y wo work rk wi with th the the perm pe rmis issi sion on,, wh wher erev ever er ne nece cess ssar ary, y, of the the mu muni nici cipa pall au auth thor orit ity, y, fo forr provid pro viding ing a woo wooden den par partit tition ion,, sta standi nding ng coo cookin king g pla platfo tform rm in kit kitche chen, n, door, lattice work or opening of a window necessary for ventilation, a false fal se cei ceilin ling, g, ins instal tallat lation ion of air air-co -condi nditio tioner ner,, an ex exhau haust st out outlet let or a smoke chimney.  The tenant, his agent, servant, persons inducted by tenant or claiming under the tenant or, any person, residing with the tenant, has been

 

guilty of conduct which is a nuisance or annoyance to the adjoining or neighbouring occupier, or has been convicted of using the premises or allowing the premises to be used for immoral or illegal purposes or that the tenant has in respect of the premises been convicted of an offence of contravention of any of the provisions of -Clause (a) of sub-section (1) of section 394; Section 394A of the Mumbai Municipal Corporation Act; Sub-se Subsect ctio ion n (1) (1) of se sect ctio ion n 37 376 6 or Se Sect ctio ion n 37 376A 6A of the the Bo Bomb mbay ay Provincial Municipal Corporations Act, 1949; Section 229 of the City of Nagpur Municipal Corporation Act, 1948; Section 280 or of section 281 of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965.  The tenant has given notice to quit and, in consequence of that notice, the landlord has contracted to sell or let the premises or has taken any other steps, as a result of which he would, in the opinion of the court, be se seri riou ousl sly y pr prej ejud udic iced ed if he co coul uld d no nott ob obta tain in po poss sses essi sion on of the the premises.  The tenant has: On or after the 1st day of February 1973, in the areas to which the Bomb Bo mbay ay Re Rent nts, s, Ho Hote tell an and d Lo Lodg dgin ing g Ho House use Ra Rate tes s Co Cont ntro roll Ac Act, t, 19 1947 47 applied; or On or af afte terr th the e co comm mmen ence ceme ment nt of this this Ac Act, t, in the the Vida Vidarb rbha ha an and d Marathwada, areas of the State, unlawfully sub-let or given on licence, the whole or part of the premises or assigned or transferred in any other manner his interest therein.  That the premises were let to the tenant for use as a residence by reason of his being in the service or employment of the landlord, and that the tenant has ceased, whether before or after commencement of  this Act, to be in such service or employment.  That the premises are reasonably and bona fide required by the landlord landlo rd for occupati occupation on by hims himself elf or by any perso person n for whose benefit the premises are held or, where the landlord is a trustee of a public charitable trust that the premises are required for occupation for the purposes of the trust.  That the premises are reasonably and bona fide required by the landlord for carrying out repairs which cannot be carried out without the premises being vacated.

 

 That the premises are reasonably and bona fide required by the landlo lan dlord rd for the im immed mediat iate e pur purpos pose e of dem demoli olishi shing ng the them m and suc such h demolition is to be made for the purpose of erecting a new building on the premises that are sought to be demolished.  That the premises that are let consist of a tenement or tenements on the terrace of a building. Such tenement or tenements are a part of the total area of the terrace, and that the premises or any part thereof are required by the landlord for the purpose of the demolition thereof and erection or raising of a floor or floors on such terrace.  That the premises are required for the immediate purpose of  demoli dem olitio tion, n, ord ordere ered d by any mun munici icipal pal aut author hority ity or oth other er com compet petent ent authority.  That where the premises comprise of land in the nature of garden or grounds appurtenant to a building or part of a building, such land is required by the landlord for the erection of a new building, which a municipal authority has approved or permitted him to build thereon.  That the rent, charged by tenant for of thethe or any ther thereo eof f wh whic ich h are ar e su sub-l b-let et,, the is in ex exce cess ss thpremises e stand standar ard d re rent nt part an and d permitted increases in respect of such premises or part or that the tenant has received any fine, premium other like sum of consideration in respect of such premises or part.  That the premises have not been used without reasonable cause for the purpose for which they were let for a continuous period of six months, immediately preceding the date of the suit. Is the landlord obliged to intimate to the tenant the date of completion and the tenant's right to occupy the tenement in the new building?

 The landlord, under section 21 of the Act, is bound by duty to intimate to tenant the date of completion and the tenant''s right to occupy the tenement in the new building.  Three months before the date on which the erection of the new building or, new floor or floors, as the case may be, is likely to be completed, the landlord shall intimate to the tenant the date on which the said erection shall be completed. On the said date, the tenant shall be entitled to occupy the premises assigned to him by the landlord. If the tenant fails to occupy the premises within a period of one month from the date on which he is entitled to occupy, the tenant's right to occupy the said premises under this section i.e. section 21(1) shall terminate. On termination of this period, the landlord shall be entitled

 

to recover from the tenant a sum, equal to three times the amount of  the monthly standard rent, in respect of the premises. If the landlord fails, without reasonable excuse, to give a notice as required under section 20(1) or to place the tenant in occupation of the premises, he shall, on conviction, be punishable with imprisonment for a term which may extend to three months or with fine, which may extend to five thousand rupees or with both. When the period of leave and licence has expired, if the licensee does not vacate, what remedy is available to the licensor?

Under Section 24 of the Act, it is provided that on the expiry of the period of licence, the landlord shall be entitled to recover possession of  the premises by making an application to the Competent Authority. If  the licensee does not vacate the premises on expiry of the licence, and, the landlord is compelled to apply to the Competent Authority to evict the licensee, the licensee is liable to pay damages at thrice the rate of the licence fee.

Is it legal for the landlord or the tenant to receive a premium or pagdi, for tenanted premises?

 Yes, Section 56 of the Maharashtra Rent Control Act, 1999, legalised the the ac acce cept ptan ance ce of a fi fine ne,, pr prem emiu ium m or, or, co cons nsid ider erat atio ion n (p (pagd agdi) i).. Th The e st Section is in two parts. After 31 March, 2000, it is lawful for the tenant or or,, a pe pers rson on ac acti ting ng on hi his s be beha half lf,, to rece receiv ive e co cons nsid ider erat atio ion n fo forr reli relinq nqui uish shme ment nt,, tr tran ansf sfer er or or,, as assi sign gnme ment nt,, of the the tena tenanc ncy y of an any y premises. Similarly it is lawful for the landlord or, any person acting on his behalf, to receive a fine, premium (pagdi) or deposit, for granting or renewing a lease or for transferring the lease to another person. Can one of the co-owners of the tenanted premises file a suit on the grounds of  bonafide requirement?

Under the provisions of the new Rent Act, a suit under Section 16(1) (g), for recovery of posse ses ssion, on the ground of  bo bona na fi fide de requirement, can be filed, only, by the owner of the premises. By the explanation to Section 16(2), the definition of landlord for the purposes of a suit under Section 16(1) (g) does not include a rent farmer, rent collector or estate manager. A co-owner, with the consent of the other owners, can file a suit for recovery of possession under Section 16(1) (g) of the Rent Act.

 

I am a landlord and my tenant has acquired alternate accommodation in the same locality. Will I be able to recover possession of the tenanted premises from the tenant on this ground?

 No. Under the provisions of the old Rent Act of 1947, under Section 13(1)(1), the

land landlo lord rd co coul uld d re reco cove verr po posse ssess ssio ion n of tena tenant nted ed pr prem emis ises es if if,, afte afterr coming into force of that Act, the tenant had built, acquired vacant possess poss ession ion of or, bee been n all allott otted ed a sui suitab table le resid residenc ence. e. How Howeve ever, r, thi this s particular ground for recovery of possession is not available under the present Rent Act. I am the landlord and my tenant has not paid rent for the last 10 months, in spite of  my sending a notice demanding rent. In order to file a suit for eviction against the said tenant, is a fresh notice, contemplated under the Maharashtra Rent Control Act, 1999, necessary?

It may be necessary to issue a fresh Notice of Demand if the earlier Noti No tice ce of De Dema mand nd ha has s be been en se serv rved ed on the the tena tenant nt,, as pr prov ovid ided ed by Section 106 of the Transfer of Property Act. However, a suit can be filed only after the expiry of 90 days from receipt of Notice of Demand, by the tenant Can residential premises be converted into commercial premises by a landlord?

A land landlo lord rd is pr proh ohib ibit ited ed un unde derr se sect ctio ion n 30 of the the Ac Actt from from us usin ing g or permitting the use of any premises for commercial purpose which on the date of the commencement of this Act, were used for a residential purpose. Any land Any landlo lord rd,, wh who o co cont ntra rave vene nes s al allo lows ws or do does es su such ch co conv nver ersi sion on of  residential premises into commercial premises shall, on conviction, be punish pun ishabl able e wi with th im impri prison sonmen mentt for a ter term m whi which ch may exte extend nd to six months or with fine which may extend to ten thousand rupees or with both. A landlord has been directed by the Municipal authority to execute the work of  additi add itions ons,, al alter terati ation ons, s, im impro prove veme ment, nt, et etc., c., bu butt ha hass fai faile led d to co comp mply ly wi with th the requisition. What can a tenant do?

If the the land landlo lord rd do does es no nott ca carr rry y ou outt th the e wo work rk,, as requ requir ired ed by th the e Municipal Authorities, the tenant or tenants, interested in doing such work, may do it with the prior approval of the Municipal Authority. The expenses, incurred by the tenant, shall be binding on the authority and, an d, the the tena tenant nt ma may y reco recove verr thes these e ex expe pens nses es,, by de dedu duct ctin ing g the the amounts from the rent, which from time to time, is due by them or, otherwise, recover such amounts from the landlord.

 

If su such ch wo work rk is jo join intl tly y ex exec ecut uted ed by the the tena tenant nts, s, the the am amou ount nt to be deducted or recovered by each tenant shall bear the same proportion as the the re rent nt pa paya yabl ble e by him him in re resp spec ectt of hi his s prem premis ises es.. Th The e total total amount, so deducted or recoverable, shall not exceed the amount of  expenses that are incurred for such work. Can a landlord eject a tenant even if the tenant pays or is ready to pay the rent?

A landlord is not entitled to the recovery of possession of any premises so long as the tenant pays, or is ready and willing to pay, the amount of the, the, stan standa dard rd re rent nt an and d pe perm rmit itte ted d in incr crea ease ses s and ob obse serv rves es and performs the terms and conditions of the tenancy, in so far as they are consistent with the provisions of this Act. Section 15 of the Act is a provision which provides relief to a tenant against eviction. It is protective in nature. A suit for recovery of possession can be instituted by a landlord against the tenant on grounds of non-payment of standard rent or permitted increases that are due. Suit for recovery can only be instituted after the expiration of ninety days from the date of notice of demand of the standard rent or permitted increase. This has to be served upon a tenant in writing. A court cannot pass a decree for eviction in any suit for the recovery of  possession on the ground of arrears of standard rent and permitted increases incr eases if, within a peri period od of ninety days from the date of serv service ice of  the the su summ mmon ons s of the the su suit it,, the the tena tenant nt pay pays s or tend tender ers s in co cour urtt the the standar sta ndard d rent rent and per permit mitted ted inc increa reases ses tha thatt are due due,, tog togeth ether er wit with h simple interest on the amount of arrears at fifteen per cent per annum.  Thereafter, he must continue to pay or tender in court regularly such standard rent and permitted increases till the suit is finally decided and also pays the cost of the suit as directed by the court. During the pendancy of such suits, the court may, out of any amount that is paid or tendered by the tenant, pay pa y to the landlord such amount towards the payment of rent or permitted increases due to him as the court thinks fit. Is tenant entitled to get back the premise that has been recovered by the landlord on the ground of bona fide repairs?

 The tenant is entitled to get the premises back in the premise that has been recovered by the landlord on the ground of bona fide repairs only if the provisions under section 17 of the Act are complied with. Wh When en the theare co cour urt t sh shal alll no notand t pa pass ss a fide de decr cree ee on the thby e grou gr ound nd that that the th e premises reasonably bona required the landlord for

 

carrying out repairs that cannot be carried out without the premises being vacated, vacated, unles unless s it asce ascertain rtains s from the tenant whethe whetherr he elec elects ts to be place placed d in occu occupation pation of the prem premises ises or part there thereof of from which he is to be evicted. If the tenant so elects, the court shall record the fact of the election, in the decree and specify in the decree the date on or before which the tenant shall deliver possession so as to enable the landlord to commence the work of repairs. If the tenant delivers possession on or before the date specified in the decree, the landlord shall, two months before the date on which the work of repairs is likely to be completed, give notice to the tenant of  the date on which the said work shall be completed. Within thirty days from the date of receipt of such notice the tenant shall intimate to the landlo lan dlord rd his acc accept eptanc ance e of the acc accom ommod modati ation on off offer ered ed and dep deposi ositt with wi th the the land landlo lord rd re rent nt fo forr on one e mo mont nth. h. If th the e tena tenant nt gi give ves s su such ch intimation and makes the deposit, the landlord shall, on completion of  the work of repairs, place the tenant in occupation of the premises or partt the par thereo reof. f. Suc Such h ten tenanc ancy y con contin tinues ues on the ter terms ms and con condit dition ions s existing on the date of the passing of the decree for eviction. If the tena tenant nt fail fails s to gi give ve suc such h in inti tima mati tion on an and d to ma make ke the the de depo posi sit, t, the the tenant's right to occupy the premises shall terminate. If, after the tenant has delivered possession on or before the date specified in the decree, the landlord fails to commence the work of  repairs within one month of the specified date or fails to complete the work within a reasonable time or having completed the work fails to place the tenant in occupation of the premises the court may, on the application of the tenant made within one year of the specified date, order the landlord to place him in occupation of the premises or part.  This tenancy shall continue on the terms and conditions existing on the date of passing of the decree for eviction. On such order being made, the the land landlo lord rd and any pe pers rson on wh who o ma may y be in oc occu cupa pati tion on sh shal alll give give vacant possession to the tenant of the premises or part thereof. Any landlord who, when the tenant has vacated by the date specified in the decree, without reasonable excuse fails to commence the work of re repa pair irs s and an any y la land ndlo lord rd or othe otherr pe pers rson on in oc occu cupat patio ion n of the the premises who fails to comply with the order made by the court as stated sta ted abo above ve und under er sub sub-se -secti ction on (3 (3)) of 17 17,, sha shall, ll, on con convi victi ction, on, be punishable with imprisonment for a term which may extend to three months or with fine which may extend to one thousand rupees or with both. Is tenant entitled to get back the premise that has been recovered by the landlord on the ground of bona fide requirement of the landlord?

 

Where a decree for eviction has been passed by the court on the ground that: •





The prem The premis ises es ar aree re reas asona onabl bly y an and d bona bona fi fide de re requ quir ired ed by th thee la land ndlo lord rd fo for  r  occupation by himself or  By any person for whose benefit the premises are held or  Where the landlord is a trustee of a public charitable trust that the premises are required for occupation for the purposes of the trust,

And if the premises are not occupied within a period of one month from the date of recovery of possession by the landlord or the premises are re-let within one year of the said date to any person other than the original tenant, the court may order the landlord to place the tenant in occupation of the premises on the application made by the original tenant. The application should be made by the tenant within thirteen mont mo nths hs from from co comp mple leti tion on of on one e mo mont nth' h's s pe peri riod od from from the the da date te of  recovery of possession. Such tenancy restarts on the same terms and conditions existing on the date of passing of the decree for eviction. On such order being made by the court, the landlord and any person who may be in occupation of the premises shall give vacant possession to the original tenant. Any landlord or a person in possession of the premises in respect of  which the order has been passed, if does not comply with the order on convi con victi ction, on, be pun punish ishabl able e wit with h im impri prison sonme ment nt for a ter term m whi which ch may extend to three months or with fine which may extend to five thousand rupees or with both.

Is the tenant entitled to reclaim the premises that have been recovered by the landlord on the grounds of demolishing a building and he does not commence within the stipulated period?

Where a decree for eviction has been passed by the court on the any of the following grounds: •



that the premises are reasonably and bona fide required by the landlord for the immediate purpose of demolishing them and such demolition is to be made for the  purpose of erecting a new building on the premises sought to be demolished; that the premises that are let consist of a tenement or tenements on the terrace of a  building, such tenement or tenements being only in part of the total area of the terrace, and that the premises or any part thereof are required by the landlord for  the purpose of the demolition thereof and erection or raising of a floor or floors on such terrace;

 

The tenant is entitled to regain the possession if the following conditions exist: •





the work of demolishing the premises has not been commenced by the landlord even after one month has passed, and shall be completed within three months, from the date that he recovers possession of the entire premises; the tenant may give the landlord notice of his intention to occupy the premises from which he has been evicted; if the landlord does not forthwith deliver to him vacant possession of the premises on the same terms and conditions on which he occupied them before the eviction, the tenant may make an application to the court within six weeks from the date on which he delivered vacant possession po ssession of the premises to the landlord.

If the the co cour urtt is sa sati tisf sfie ied d that that th the e la land ndlo lord rd ha has s no nott su subs bsta tant ntia iall lly y commenced the work of demolishing the premises within the period of  one month, in accordance with his undertaking, the court shall order the landlord to deliver to the tenant vacant possession of the premises on the terms and conditions on which he occupied them immediately before bef ore the ev evict iction ion.. On suc such h or order der bei being ng ma made, de, the lan landlo dlord rd shal shalll forthwith deliver vacant possession of the premises to the tenant. Any landlord, who recovers possession on the above grounds but does not comply with the time frame stated there or, does not comply with the Court's orders, on conviction, will be punishable with imprisonment for a term which may extend to thirty days or with fine, which may extend to five thousand rupees or with both.

Does a tenant have the right to give notice to the landlord of his intention to occupy a tenement in the new building that is constructed on the demolished premises?

Where a decree for eviction has been passed by the court on the ground that the premises are reasonably and bona fide required by the landlo lan dlord rd for the imm immedi ediate ate pur purpos pose e of dem demoli olishi shing ng the them, m, and suc such h demolition is to be made for the purpose of erecting a new building on the premises sought to be demolished, the tenant has a right to give a notice, under section 20 of the Act, to the landlord of his intention to occupy a tenement in the new building on its completion. Such notice should be given by the tenant within six months from the date on which he delivered vacant possession of the premises to the landlord. He should state in the notice the following: 1. That he shall shall pay to to the landlord landlord the standard standard rent rent in respect respect of the the tenement; tenement; 2. That his his occupation occupation of the the tenement tenement shall shall be on the the same terms terms and and conditions conditions on which he occupied the premises immediately before the eviction.

 

Can certain sub-tenants become tenants on determination of tenancy?

In case any sub-tenancy agreement exists at the time of  comm co mmen ence ceme ment nt of this this ac act, t, or if su subb-te tena nanc ncy y is pe perm rmit itte ted d by the the landlord, the sub-tenant may become a tenant on the discontinuance of the original tenancy by virtue of section 25 of the Act.  This means that the sub-tenant steps into the shoes of the original tenant if the original tenancy agreement a greement ceases to have force. I own a flat and have rented it to a couple. However, I find that they have re-rent re-rented ed a room in the flat to another person. Are they permitted to do this? What can I do about this?

 The law is very clear as far as this issue is concerned. The Maharashtra Rent Control Act, 1999 in section 26 states that no person is, lawfully, permitted to sub-let or, give on licence, the whole or, any part of the premises let to him or, to assign or, transfer in any other manner, his interest, therein, unless there is a contract between the landlord and himself, permitting him to do so.  Thus, the law does not forbid the creation of a sub-tenancy, if the landlord permits it. However, without such permission, a sub-tenancy becomes illegal.

Is a landlord entitled to inspect premises during the continuation of tenancy or leave and license?

Under section 28 of the Act, the landlord is entitled to inspect the premi pre mises ses tha thatt are let or giv given en on lea leave ve and lic licens ense e at reaso reasonabl nable e intervals. However, such inspection is allowed only on prior notice to the occupier or the licensee or the tenant as the case may be. Does the tenant have any remedy, if any essential supply or service, enjoyed by him, is cut off or, withheld by the landlord?

A landlord cannot cut-off, or withhold any essential supply or service, enjoyed by the tenant, in respect of premises that are let to the tenant. If any essential supply or service is cut off or withheld, then the tenant can mak make e an appl applica icatio tion n for resto restorat ration ion of the ess essent ential ial sup supply ply or service under Section 29. The application can be made, jointly by all or, any of the tenants of premises situated in the same building. The court may pass an interim order, even before giving the landlord notice of the enquiry, directing the landlord to restore the essential supply,

 

before a specified date. If the landlord fails to restore the supply within the time specified, the court, conducting the enquiry, may fine him up to Rs.100/- per day, for which the default continues. What remedy does the tenant have, if the landlord fails to issue proper receipts, in respect of payments made towards rent of any premises?

Under Section 31, it is made mandatory that the landlord shall issue a receipt for any amount received by him, in respect of any premises. Failure to issue a receipt is an offence, punishable with fine which may extend to Rs.100/-, for each day of default. I am a tenant and I am in arrears of rent for the past 10 months. I have also failed to comply with the demand notice sent by the landlord. Now the landlord has filed a suit against me on grounds of default. What remedy is available to me?

Within 90 days from the receipt of the summons of the suit, you must pay to the landlord or, deposit in court, all the rent and permitted increases, due up to the date of payment, or, deposit in court, together with simple interest on that amount, at 15% per annum. You must, further, continue to pay or, deposit in court, the rent and permitted increases, till the disposal of this rent and, pay the costs of the suit, as directed by the court. If the above two requirements are fulfilled, no decree for eviction shall be passed against you. I am a tenant. Can I relinquish or, transfer, my tenancy rights for a consideration? Is it lawful to do so?

Yes, under the old Act, it was unlawful for the tenant to receive any sum or consideration for the relinquishment, transfer or assignment of his tenancy. However, clause (i) of  Section 56 of the present Rent Act, has removed this bar. Now, you, as a tenant, can claim or, receive any sum or, consideration, lawfully, for the transfer of the tenancy.

Un Unde der r wha hatt ci circ rcum umst stan ance ces s do does es th the e co cour urtt fi fix x th the e Standard Rent or permitted increases? The Standard Rent of any premises may be fixed by the Court on an application, made in that behalf to the court or, on any suit or, proceedings before it, in the following cases: •

The court finds that there is no evidence of the rent (i) at which premises were let on 1st October 1987; or (ii)

 

where the premises were not let on 1st October 1987, the rent at which they were last let before 1st October 1987; •





Whereby reason of the premises having been let at one time, as a whole or, in parts and, at another time, in parts or, as a whole, or, for any other reasons; Where the premises have been let free of charge, or, at a nominal rent, or, for other consideration, in addition to rent; Where there is a dispute between landlord and tenant, regarding the amount of Standard Rent.

Is court entitled to the award compensation in case it finds that the suit is not bona fide? Under section 36 the court can award compensation to the defend def endant ant or oppone opponent nt   if th the e Cour Courtt find finds s that that an any y su suiit, proc pr ocee eedi ding ng or appl applic icat atio ion n inst instit itut uted ed or ma made de be befo fore re it is false, frivolous or vexatious. The court may, after hearing the pl plain ainti tiff ff or appli applican cantt and for rea reason sons s to be rec record orded ed,, order such plaintiff or applicant to pay compensation. Such compensation cannot exceed two thousand rupees. When will the court refuse to entertain an application for fixing Standard Rent? The cour The courtt will will re refu fuse se to en ente tert rtai ain n ap appl plic icat atio ions ns fo forr fixi fixing ng Standard Rent, if the Standard Rent has already been fixed in the following manner: •



It is fixed by a competent court, on the merits of the case, There was no fraud, collusion or, error in facts in the earlier case;

 



There have been no structural alterations or change in the amenities or change in any other relevant factors.

If the Standard Rent is in dispute, is there any recourse to law? Yes, th Yes, the e tena tenant nt can can ma make ke an appl applic icat atio ion n fo forr fixa fixati tion on of  Standard Rent and permitted increases under Section 8(3) of the Rent Act. Do Does es an ap appe peal al li lie e agai agains nstt an or orde der, r, ma made de by th the e Competent Authority for recovery of possession? No appeal lies against an order passed by the Competent Auttho Au hori rity ty for for reco recove very ry of poss posses essi sion on of an any y pr prem emis ises es.. Sectiion 44 Sect 44,, pro rovi vid des fo forr a revi revisi sion on to be fil filed by th the e aggrieved party to the State government or, an Officer so authorized by the State government. The power of revision can be exerci exercised sed by the Sta State te go gover vernme nment nt Sue Moto Moto. In cases of revision by the aggrieved party, the application for revision must be filed within 90 days from the date of the order, sought to be revised. What is the time limit for disposal of suits, proceedings or, appeals, under the new Rent Act? By Section 38, it is provided that all suits or proceedings, filed under the Maharashtra Rent Control Act, 1999, shall be heard and disposed of, as far as practicable, within a period of 12 months, from the date of service of summons. Appeals under the Act are to be disposed of within 6 months from the date of service of notice of appeal on the Respondent. All applicati appl ications ons made before before the Comp Competen etentt Auth Authorit ority, y, unde underr Chapter VIII, are to be disposed of within 6 months of the order, granting leave to defend under Section 43(4)(c). No perio per iod d for di dispo sposal sal has bee been n pro provid vided ed for Re Revis visio ions, ns, filed filed under Section 44 of the Act.

 

If there is a dispute between landlord and tenant, in resp re spe ect of pre rem mis ise es bel elo ong ngiing to a coo-op ope erat atiive society, in which court will the suit lie? In a di disp sput ute e be betw twee een n la land ndlo lord rd an and d te tena nant nt,, in re resp spec ectt of  premises aoCo-operative it ve is the th e Sm Smal alllsituated Cause ses sin C urt rt,, Bo Bom mbay ay,,Housing wh whiich Society, wou oulld ha have  jurisdiction.  jurisdicti on. When can a suit for recovery of possession be instituted by a landlord, on grounds of non-payment of Standard Rent or, permitted increases due? Underr Se Unde Sect ctio ion n 15(1 15(1)) of the the Ac Act, t, a la land ndlo lord rd sh shal alll no nott be entitled to recover possession of premises, as long as the tenant is ready and willing to pay the amount of Standard Rent and permitted increases and, observes and performs the th e co cond ndit itio ions ns of tena tenanc ncy. y. A la land ndlo lord rd ca can n file file a su suit it fo forr recovery of possession of premises, on grounds of arrears in payment of rent, only on expiry of 90 days after a notice, demanding the rent, has been served on the tenant, as per Section 106 of the Transfer of Property Act. What is th What the e pr proc oced edur ure e fo foll llow owed ed by th the e Co Comp mpet eten entt Authority? A special procedure is prescribed by Sections 42 & 43 of the Rent Act. This is designed to reduce delays and ensure that landlords get possession of their premises, without undue delay. Therefore, the procedure is as follows: •



The lan landl dlord ord files, files, wi with th the Com Compe peten tentt Au Autho thorit rity, y, an application, verified in the manner prescribed by Order 6, rules 14 and 15 of the Code of Civil Procedure; The Competent Authority shall issue a summons to the tena nan nt or or,, licen ense see e, in th the e pre resc scri rib bed fo form rm.. The summons may be served, both personally and, simultaneously, byempowered Registered to Post, on the tenant or, licensee or, agent accept service. If the

 

tenant or licensee refuses to accept service of  summons by registered post, the Competent Authority may proceed to hear and decide the application as if  the summons had been validly served; •





The tenant or licensee is not entitled as of right as to defe de fend nd th the e appl applic icat atio ion. n. He mu must st,, with within in 30 days days of  service of the summons, file an affidavit, stating the grounds on which he is going to contest the complaint and, an d, ob obta tain in le leav ave e fr from om the the Co Comp mpet eten entt Au Auth thor orit ity y to contest the application. If the tenant or licensee does not appear before the Competent Authority, pursuant to the summons, or fails to obtain leave to defend, he shall be deemed to have admitted the landlord's case for evi evicti ction on and, and, the land landlor lord d wi will ll be en entit titled led to the issue of an order for eviction. The Competent Authority shall give leave to defend, if  the Affidavit filed by the tenants or, licensee, in reply, discloses such facts as would disentitle the landlord to recover possession. Where leave to defend is given, the Competent Auth Au thor orit ity y shal shalll co comm mmen ence ce the the he hear arin ing g as so soon on as possi ssible, pro roce cee ed fr fro om da day y to tod day an and d, as far far as possible, finish the hearing within 6 months from the order granting leave to defend.

The Compe Competen tentt Aut Author hority ity,, while while holdi holding ng an in inqu quiry iry,, sh shall all follow the rules and practice of the Court of Small Causes, including recording of evidence. If a landlord has let any premises to a Doctor / C.A., who is permitted to use part of it as his residence and part of it as his clinic / office, can the landlord file a suit under the Act for the entire property? Yes. If the premises are let for residence and, only a part of  the premises are used for professional activities, then the

 

landlord can file a suit for recovery of the entire premises on any of the grounds, mentioned in Sections 15 and 16 of the Act.

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