EVICTION UNDER TAMILNADU RENT CONTROL ACT

Presented By, Dhanya N. Menon

WHAT IS RENT CONTROL?• imposing a legal maximum (rent ceiling)

• Upon the rent

• Particular housing market

ORIGIN• First time in US, in 1900s• to check uninhibited rent increases and tenant

eviction • Need for rented house increased after World

War II and with industrialization and corresponding urbanization

• Rent Control Acts, under various names were introduced.

• India’s 1st Rent Control Act: in Bombay in 1918: First World War

THE LEGAL ASPECTS OF RENT CONTROL

• Indian Constitution: “Housing” – State Subject • Enactment: responsibility of each State• Objects are similar

– To protect the tenant from eviction from the house where he is living except for defined reasons and on defined conditions; and

– To protect him from having to pay more than a fair/standard rent.

• Landlord has the right to evict the tenant, if– He is guilty of certain specified acts – landlord requires the house for his own personal

occupation.

Grounds: Landlord can evict the tenant:

• The law relating to the landlord’s rights to evict the tenant can be found in the Transfer of Property Act, 1882.

• While a landlord can immediately start an action for eviction of a tenant on expiry of the notice of eviction under Section 106 of the Transfer of Property Act, 1882,

• He cannot start such an action where the rent control act applies, unless he can prove the existence of one of the grounds of eviction under the Rent Act.

EXEMPTION• Properties belonging to the government

• Any tenancy created by a grant from the Government in respect of the premises taken on lease or requisitioned, by the Government

• Newly constructed properties for a period of ten years (in Delhi) from the date of construction. This period may vary from state to state.

• Any premises, residential or other, whose monthly rent exceeds three thousand and five hundred rupees (in Delhi). The amount may vary from state to state.

• religious and ethnic institutions

TAMIL NADU RENT CONTROL LAWS• The necessity for imposing control of rents and

prevention of unreasonable eviction of tenants arose during the war period

• Rent Control Orders in the year 1941 • Renewed until Legislature enacted the Madras

Act XV of 1946.• Act of 1946 was replaced by Madras Act XXV of

1949• In 1960, The Tamilnadu Buildings (Lease and

Rent Control) Act,1960(XVIII of 1960) was passed

FAIR RENT• Residential: 9 % of total cost of such building • Non Residential: 12% of total cost of such building • Total cost:

– market value of the site in which the building is constructed

– the cost of construction of the building– the cost of provision of anyone or more of the

amenities specified in the Act• Fixed by the Controller on application made by the

tenant or the landlord

Cond…

• Cannot be increased, but decreased

• Landlord shall not claim, receive or stipulate for the payment in addition to such fair rent – advance can be asked

• If not fixed: Agreed rent

• Landlord liable to give receipt for rent or advance

EVICTION• Section 10 of the Act• The right of eviction: Only on the reasons specified in the

Act.• Tenancies where the Act has no Application: Notice of

atleast 6 months

REASONS:• Willful omission of payment of rent for more than 15 days

after the rent fell due• Subletting of the premises• Unauthorized use of the building• Has materially impaired the building or its value or utility• Using of building of unlawful purpose

Contd…

• Nuisance • Non occupancy for a period in excess of

four months• Unlawful denial of landlord's title to the

building • Landlord’s own use• Effecting repairs of the building• Creation of a new building• Landlord is religious or educational

institution• Member of armed force

CASE LAWS

A.S. SULOCHANA v. C. DHARMALINGAM ( 28/11/1986)

- Eviction on the ground of subletting

“tenant sought to be  evicted on the ground of unlawful

subletting under s.10(2)(ii)(a) of the Tamil Nadu Buildings

(Lease and Rent control) Act,1960 must himself have

been guilty of the contravention”

T.Sivasubramaniam Vs. Kasinath (SC)

Mere desire of the landlord to live separately from

his father is not a valid ground for eviction of the

tenant