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TOPIC: THEMAHARASHTRARENTCONTROLACT
Whatisrentcontrol?
Thepracticeofimposingalegalmaximum(rentceiling)
upontherentinaparticularhousingmarket,belowtheequilibrium
rentiscalledrentcontrol.ThecommonthreadrunningthroughRent
controlAct andlegislationsis that they are intendedto serve two
purposes:
1. Toprotectthetenantfromevictionfromthehouse
where he is living except for defined reasons and on defined
conditions;
RENTCONTROLLAWSINMAHARASHTRA
TheMaharashtraRentControlAct,1999cameintoforce
w.e.f. 31/03/2000. Before enactment of this New Act, the state of
MaharashtraappointedRentEnquirycommitteei.e.TambeCommittee.
The recommendations of Tambe Committee were considered by
MaharashtraLawCommission.
..2..
PriortoenactmentofthisAct,threeActswereprevailingin
theStateofMaharashtratogovernthematterspertainingtotenancy
disputei.e.BombayRent,HotelandLodgingHouseRentControlAct
forBombayRegion.TheCentralProvincesandBerarActwasprevailing
in the area of Vidarbha and Hyderabad House (Rent, Eviction and
Lease)ControlAct1954wasprevailingforMarathwadaRegion.This
Acthasbeenenactedtounify,consolidateandamendthelawrelating
tothecontrolofrentandrepairsofcertainpremisesandofevictionand
forencouragingtheconstructionofnewhousesbyassuringafairreturn
ontheinvestmentbylandsandtoprovideformattersconnectedwith
thepurposeaforesaid.
ThepreambletotheRentActspellsoutthebroadpolicyand
purpose of the statute. From the preamble it is clear that the Act is
enactedmainlyfor:
(i)controllingrentssothattheymaynotexceedbeyondthe
standardrentorthefairrate,asthecasemaybe,
(i)regulatingtherepairsofthepremiseswhichmaybeor
aredemisedand
WHYTHENEWLEGISLATION?
Manyfeaturesoftheoldrentcontrollawshadoutlived
their utility. The task, therefore, of unifying, consolidating and
amendingtherentcontrollawsintheStateandtobringrentcontrol
legislation in tune with the changed circumstances, had been
engaging the attention of the Government. Government had,
therefore, initially appointed the Rent Act Enquiry Committee,
generally to study and examine and to make recommendations to
Governmentwithrespecttounifiedlegislationifconsidereddesirable
and feasible or otherwise to suggest modifications in the existing
three rent control laws. The Committee, had in its report,
recommended that there should be one unified Act which should
extendtowholeoftheStateandforthatmattertheCommitteehad
also appended a draft legislation to its report. The State Law
Commissionwhichwasfunctioningforsometimehadalsoexamined
thethreerentcontrollawsincludingthereportsubmitted,andthe
draft legislation prepared by the Rent Act Inquiry Committee. The
StateLawCommissionhasalsoattemptedunificationandrevisionof
therentcontrollawsandinitstwelfthreportontheunificationof
RentRestrictionLaws,ithasrecommendedtoenactaunifiedand
consolidatedRentActfortheentireState.ThestateLawCommission
has also appended to its report a draft legislation. The draft
legislationpreparedbythestateLawCommissionisgenerallyonthe
pattern of the Bombay Rent Act, but the thrust given by the Law
..4..
Commissionhasbeeninrespectofexemptionofnewconstruction
fromtheoperationoftheprovisionsofrentlawforaspecifiedperiod
andthatthereshouldbeaprovisionforperiodicincreaseintherent.
APPLICABILITY
ThisActshallapplytothepremisesletforthepurposesof
residence,education,business,tradeorstorageintheareasspecified
inScheduleIandScheduleIIoftheAct. ThisActdefinespremises
under Section 9 which includes garden, ground, garage and out
housesifanyappurtenanttosuchbuildingorpartofthebuildingany
fitting affixed to the building or part of building for beneficial
enjoyment, but does not include farm building, room or other
accommodations in hotel and lodging houses. This Act is also
applicabletopremisesletorgivenonlicencetogovernmentorlocal
authority.But,thereisexemptionofcertainpremisesunderSection
3oftheAct.
EXEMPTION
AsperSection3certainpremisesareexemptedi.e.premises
belongingtoGovernmentorlocalauthorityorGovernmentastenant,
licensee.Similarly,anypremisesletorsublettobanksoranyPublic
Sector Undertaking or any Corporation established by or under any
Central or State Act or Foreign Mission, International Agency, Multi
..5..
SALIENTFEATURESOFTHENEWACT
ThemajorchangeseffectedbythenewActareasunder:
1. The definition of 'premises' does not include land.
Thereforetenancyorlease only of land will not include land.
Thereforetenancyorleaseonlyoflandwillnotbegovernedbythis
Act.
2. TheActdoesnotmakeseparateprovisionsforhotels
andlodginghouse.
4. ThepremisestowhichtheActappliesarebuildings
or structures or parts thereof and the land appurtenant thereto
includinggaragesandouthousesthereon.
5. FromthecommencementoftheActthatisfrom31st
March,2000thelandlordwillbeentitledtoincreasetherentby4%
per annum in respect of premises let for purposes of residence,
education,business,tradeorstorage.
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7.Thelandlordisalsoentitledtoincreasetherentby
amountnotexceeding15%perannumoftheexpensesincurreddueto
specialalterationsmadeoradditionalamenitiesprovided.
8. Agreementforgrantoftenancyorlicenceisrequired
tobeinwritingandregisteredundertheRegistrationAct.
9. ProhibitionagainstreceiptofPagdiorpremiumfor
transfer or relinquishment of tenancy is removed and the same is
legalized.
10. Landlordcanalsochargefine,premiumordepositas
considerationforgrantorrenewalofaleaseofanypremisesorgiving
consentthereto.
11.A 5% increase is allowed on the standard rent
fixedundersection7(14)(a)and(b)(ii).
IMPORTANTPROVISIONSOFACT
madetoitorinanysuitorproceedings,fixthestandardrentatsuch
amount as having regard to the provisions of this Act and the
circumstances of the case, the Court deems just. If application for
fixing standard rent or for determining the permitted increase is
madebythetenantthecourtshallforthwithspecifytheamountof
rentorpermittedincreasewhicharetobedepositedincourtbythe
tenant.Evenatanystageofthesuitforrecoveryofrent,whether
withorwithoutclaimfor possessionofthepremises,thecourtis
satisfiedthattherentisexcessiveandstandardrentshouldbefixed,
thecourtmaymakeorderdirectingthetenanttodepositincourt
forthwithsuchamount.
AsperSection15oftheActlandlordisnotentitledtothe
recoveryorpossessionofanypremisesiftenantpaysorisreadyand
willingtopaystandardrentandpermittedincreases.Evenlandlord
cannotfileasuitforrecoveryofpossessionagainsthistenantonthe
..8..
groundofnonpaymentofstandardrentdueuntiltheexpirationof
ninetydaysnextafternoticeinwritingofthedemandofstandard
renthasbeenserveduponthetenant.AsperSubSection(3),decree
forevictioncannotbepassedbythecourt,ifwithinninetydaysfrom
thedateofserviceofthesummonsofthesuit,thetenantpaysor
tendersincourt,thestandardrentandpermittedincreasesthendue,
together with simple interest on the amount of arrears at fifteen
percentperannumandthereaftercontinuoustopayortendersin
court regularly such standard rent and permitted increases till the
suitisfinallydecided.Thisprovisionalsoprotectsthehonesttenants
whoarewillingtopaythestandardrenttothelandlordsasperrule.
(j) requirementforconstructiononterrace,
(k) demolitionasorderedbymunicipalauthority,
(l) thepermissionforconstructiongrantedbymunicipal authority,
(m) rentchargedbytenantforareasubletisinexcessof standard
rent,
(n) nonuser of premises for continuous period of 6 months
precedingdateofsuit.
TheExplanationforclause(b)providesthattheexpression
"permanentstructure"doesnotincludethecarryingoutanyworkwith
thepermissionofthemunicipalauthority,wherevernecessary,suchas
providing(1)awoodenpartition(2)standingcookingplatforminthe
kitchen (3) door (4) opening a window for ventilation (5) a smoke
chimney. Initially the burden of proving an unlawful subtenancy or
assignment lies on the landlord. Once a landlord shows that a third
personisinoccupationandthatthetenanthimselfisnotinthepremises
theburdenofprovingthenatureofoccupationofthirdpersonshiftsto
the tenant. The second important factor which may overwhelm a
landlordinspiteofthefactthatheproveshiscaseunderthisclauseis
thequestionofgreaterhardshiptothetenantasprovidedforinsub
section (2). The landlord can obtain the decree on the ground of
personal occupation and he can obtain decree under the other three
clausesforrepairsorreconstructionofthepremises.Allthesedecrees
canbepassedforthepersonalbenefitofthelandlordandnotonaccount
ofbreachofanyoftheprovisionsoftenancyunderthecontractorinlaw.
..10..
Theformertypeofdecreebeingpersonalitcannotbeallowedtobe
assigned.
Section23oftheactprovidesspecialprovisionforrecovery
ofpossessionofthetenantedpremisestothememberofarmedforces
oftheUnion,Scientistsortheirsuccessorininterestentitledtorecover
thepossessionofthepremisesfortheiroccupation.
However,asperSection26,inabsenceofanycontract,it
shallnotbelawfulforanytenanttosubletorgiveonlicencethe
wholeoranypartofthepremiseslettohimortoassignortransferin
anyothermanner.
..11..
AsperSection33oftheAct,inBrihanMumbai,theCourt
ofSmallCausesMumbai,andinanyareaforwhichaSmallCauses
Court is established under the Provincial Small Causes Courts Act,
1897,suchcourtshallhavejurisdictiontoentertainanysuitproceeding
orapplicationortodealwithsuchclaimorquestionandelsewhere,the
CourtofCivilJudge(Jr.Dn.)havingjurisdictionintheareainwhichthe
premisesaresituateor,ifthereisnosuchCivilJudge,thecourtofCivil
Judge(Sr.Dn.)having ordinary jurisdiction,shallhavejurisdictionto
entertainandtryanysuitorproceedingbetweenalandlordortenant
relatingtotherecoveryofrentorpossessionofanypremisesandto
decideanyapplicationunderthisAct.
Section53providesthatoffencesundersection10shallbe
noncognizableandoffencesundersections17to19,21,29,30and31
shallbecognizable.
..12..
Theoffencesareasunder:
*Chargingrentinexcessimprisonmentupto3monthsorfineuptoRs.
5000/ or both (Sec.10);
* FailuretocarryoutanyundertakinggiventoCourtorfailureto
complywithCourtsOrderunderadecreeobtainedonthegroundof
bonafide requirement by the landlord for the demolishing the
premises for the immediate purpose of erecting new building
imprisonmentfor30daysorwithfineuptoRs.5000/orboth(Sec.
19);
*Failuretointimatetotenantthedateonwhichtheerectionofthe
newbuildingshallbecompletedimprisonmentof3monthsorfine
uptoRs.5000/orboth(Sec.21);
..13..
*TocutofforwithholdessentialsupplyorservicefineuptoRs.
100/foreachdayofdefault.(Sec.29);
*Failuretorestoreanyessentialsupplyorserviceimprisonment3
monthsorfineuptoRs.1000/orboth(Sec.29);
*Conversionofresidentialintocommercialpremisesbylandlord
imprisonment6monthsorwithfineuptoRs.10000/orboth(Sec.
30);
* Failuretoissuetherent receiptfineuptoRs.100/foreachday
ofdefault(Sec.31);
* Failuretoenterintoawrittenagreementoftenancyorleave&
licenseorhavethesameregisteredimprisonment3monthsorfine
uptoRs.5000/orboth(Sec.55).
CONCLUSION
TheMaharashtraRentControlActhas,toagreatextent,
reduced the litigation period between the landlord and tenant. The
procedureundertheearlierActprevailingintheVidarbharegionwasa
twotiersystem,inasmuchas,initiallypermissionoftheRentController
wasrequiredundertheActandthenaseparatesuitforpossessionon
thebasisofthepermissionobtainedwasrequiredtobefiled.Thenew
Actcontainsprovisionstoprotectthehonestandinnocenttenantas
wellastosafeguardtherightsandinterestsofneedylandlord.
============
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RELEVANTCASELAWS
ShivSarupGuptav.Dr.MaheshChandGupta,
AIR1999SC2507:[1999]3SCR1260.
Abonafiderequirementmustbeanoutcomeofasincere
and honest desire in contradistinction with a mere pretext for
evictingthetenantonthepartofthelandlordclaimingtooccupythe
premisesforhimselforforanymemberofthefamilywhichwould
entitlethelandlordtoseekejectmentofthetenant.Thequestionto
beaskedbyaJudgeoffactsbyplacinghimselfintheplaceofthe
landlord is whether in the given facts proved by the material on
recordtheneedtooccupythepremisescanbesaidtobenatural,
real,sincereandhonest.Theconceptofbonafideneedorgenuine
requirementneedsapracticalapproachinstructedbytherealitiesof
life.
DeenaNathv.PooranLal,
[2001]3SCR925.
Yudhishtirv.AshokKumar,
[1987]1SCR516.
Theconstructionoftherelevantstatutoryprovisionmust
strikeajustbalancebetweentherightofthelandlordandtherightof
thetenant.
VmayKumarandOn.v.DistrictJudge,
GhazipurandOrs.,
[1995]Suppl.2SCC586.
Thesonofthelandlordwhoserequirementwaspleaded,
was in government service and, therefore, he could not have any
bonafideneedtostartprivatepracticeasadoctor.Thiscontention
wasrejected.
PrativaDevi(Smt.)v.T.V.Krishnan,
(1996)5SCC353,and
MeenalEknathKshirsagarv.Tradersand
AgenciesandAnr.,
AIR1997SC59.
ThelandlordwasthebestJudgeofhisrequirement.
Smt.SheelaChadhaandOrs.v.Dr.Accharaj
RamSehgal,
MANU/SC/0596/1990,
Thelandlordhadthediscretiontodeterminehisneed.
..16..
AbdulSamadMakhadumBakshSaikhv.Sudha
AkantParakhe,
1982M.L.J.647.
"Theexpression"himselfinSection13(1)(g)ofBombay
Rents,HotelandLodgingHouseRatesControlAct,1947hadbeen
definedtomeannotonlythelandlordalonebutalsohiswifeand
children.Itwouldcoverthecaseofafamilyandallpersonsstaying
togetherincludingdependentsandotherrelationsandalsoincertain
circumstancesaservant.Adependentmaynotbeamemberofthe
family. Nevertheless if he is staying with the landlord and is
depending upon him he would be considered as a member ofthe
familyandonewhoserequirementswillhavetobeconsideredinthe
expression"himself".
Kanhaiyalals/oBabulalSrivastavaVs.Bapurao
s/oGanpatraoNandanwar,
1988,Mh.L.J.,388.
While construingtheprovisionsofClause13(3)(vi) of
the Rent Control Order, the emphasis is on 'himself' and the
expression must take in family as understood by giving a wide
meaning to that expression as including the descendants of a
commonancestorwhoseinterestwouldbethesameastheinterestof
thelandlord.Thequestionofdependency,eitherofthemembersof
thefamilyonthelandlordorthelandlord'sowndependenceonthe
relationsresidingwithhim,wouldnotbeconsequential.
..17..
NanalalGoverdhandas&Co.&Ors.v.Smt.
SamartbaiLilachandShah,
AIR1981Bom.1.
"Foroccupationbyhimself"donotrestricttheproposed
occupationtotheoccupationoflandlordalonebutmayincludethe
occupationbymemberofhisfamily.Therequirementofthelandlord
for occupation by the dependent of the landlord may be the
requirementbythelandlord.
TangerineElectronicsSystemsPvt.Ltd.,
Mumbai..Vs..IndianChemicalsMumbai,
2004(2)Mh.L.J.,305.
Interestofatenantofnonresidentialpremisestowhich
Maharashtra Rent Control Act, 1999 is applicable therefore, such
interestareattachableandsaleableinexecutionofadecreeagainst
tenant.
ShantilalThakordasv/s.ChimanlalMaganlal,
AIR1976SC2358,and
RaghunathG.Panhalev/s.ChaganlalSunderji,
2002(2)Bom.C.R.,9(S.C.)
Whenlandlordisclaimingpossessionforownbonafide
needandhedies,theLegalrepresentativescancontinuethesuitand
theyneednotfileseparatesuitfortheirownrequirements.
..18..
BismillahBeeVsMohammadAnwar,
2010(2)Mh.L.J829.
Insuitforeviction,bonafiderequirementburdenofproof
toestablishthatthepremisesarereasonablyandbonafiderequired
is upon the landlord and burden of proof of proving greater
hardship,soastodeprivethelandlordtoseekeviction,liesonthe
tenant.
ShakeelAhmedVsAzizAhamadKhan,
2008(6)418
Itwasheldthatagreementofleaveandlicenceinwriting
isconclusiveproofoffactsstatedthereinandnootherevidencecan
beleadtoproveotherwise.
HansaBhaskarDaveVsHariharMahata,
2012(1)Mh.LJ630
Insuitfordeclarationoftenancylandlordtakingpleathat
plaintiffs are mere gratuitous licensee and tenants are in physical
possession of the suit premises and the said possession was not
forcible,cannot be dispossessed without following due procedure.
Tenant entitled to restoration of electric supply and water supply
also.
M/s.AtmaRamPropertiesvs.M/s.Federal
MotorsPvt.Ltd.,
(2005)1SCC705.
appealabletotheRentControlTribunalunderSection38oftheAct.
There is no specific provision in the Act conferring power on the
Tribunaltograntstayontheexecutionoftheorderofevictionpassed
by the Controller, but subSection (3) of Section 38 confers the
TribunalwithallthepowersvestedinaCourtundertheCodeofCivil
Procedure,1908whilehearinganappeal.Theprovisionempowersthe
TribunaltopassanorderofstaybyreferencetoRule5ofOrder41of
theCodeofCivilProcedure1908.
ShyamShaanvsSheojiBhaiandAnr.,
(1977)4SCC393.
CaronalimitedvsPavvathySwaminathanand
Sons,
2007(6),BombayC.R.,801.
havingsharecapitalofmorethan1Crore.Thisisaessentialmatter
oflegislativepolicy."
ShashikantRamrmaoKulkarniVsNirmala
VasantraoGore,
2011EQ(Bom.)0372.
"Onaccountoffailureofalandlordtogettheagreement
registeredhecouldnotbeprecludeorprohibitedfrompresentinga
plaintinCivilCourtseekingrecoveryofrent.Theobjectionraisedby
defendantthatcontraventionofsubSection1ofSection55would
leadtoconsequencesofrejectionofplaintascontemplatedbyOrder
VIIRule11clause(d)isnotaccepted."
VinayakNarayanDeshpandeandanotherVs
DilipPralhoadSirole,
2010(2)AllMR.747.
"Thelandlordgetrighttoinstitutethesuitforreoveryof
possessionfromtenantonthegroundofnonpaymentofstandard
rentorpermittedincreaseafterservingofnoticeuponthetenantin
themannerunderSection106oftheTransferofPropertyAct.Ifthe
tenantchosesnottopaythearrearsasrequiredunderSection15
Clause (3) of the Maharaashtra Rent Control Act. The landlord
cannotbedeniedadecreeforejectmentonthegroundofdefaultin
paymentofrent,ifheprovesthattenantinarrearsofrent."
..21..
ChandiramDariyamumAhujavsAkola
ShramVahatukSahakariSanstha,
2012(5)Mh.L.J.,177.
"Section15(2)oftheActmerelycreatescertainstatutoty
obligationsuponthelandlordanduponcomplianceofitpermitthe
landlordtoproceedtoinstituteasuitandhasnoothereffect."
LateSukhlalBhivsanDhobi(Suryavanshi)
VsVinayakSadashioSangaleandone,
2014EQ092.
SanyamVsShyamjiandother,
2014(1), Mh.L.J.,244.
(b) Whentenantleftbehindnumberoflegalheirs,any
memberoftenant'sfamilyresidingwithhimattimeofhisdeath,or
incaseofdisagreement,asmaybedecidedbyCourt,canbetenantin
respectofpremisesgovernedunderAct.Applicationinthisregardis
..22..
requiredtobedecidedbySpecialCourt,inGreaterMumbai,itisthe
CourtofSmallCauses,Mumbai,whichhastodecideanyapplication
madeundertheMaharashtraRentControlAct.Section33prohibits
anyotherCourttoexercisejurisdictioninordertoentertainanysuch
suit,proceedingorapplicationortodealwithanysuch hearing or
question.CityCivilCourtcannotentertain suit or application in
relationtoclaimastotenancyin respectofpremises.
AMIMerchandisingPvt.LtdVs.Stateof
Maharashtraandother,
2014(3),Mh.L.J.,257.
DevendraVsShriram,
2014(4)Mh.L.J.,290.
RasiklalVsParaskumar,
2015(1)Mh.L.J.,382.
SunitaVsRamanlal&other,
2014(2)Mh.L.J,6.
(b) Grantofleaseofmortgagedpropertybymortgagor.
Atenantwhois inductedduringthesubsistenceofthemortgageis
not entitledtogettheprotectionoftheMaharashtraRentControl
Act.
Mohd.ShakilVsChandrabali,
2014(5)Mh.L.J.,206.
forcollateralpurposelikenature&characterofpossession ofpartyand
whetherleasewasforresidentialpurposeornot.Leaseofimmovable
propertyforperiodexceeding one year to be registered
compulsorily.
NikhilVsSurekha,
2014(3)Mh.L.J,777.
(c) EvictionDecreepassedagainstmanydefendantswas
notchallengedby oneofseveraldefendants.Naturalconsequenceis
thattheJudgmentanddecreeforevictionwouldbecomefinalagainst
him.
..25..
SukhlalVsVinayak,
2014(3)Mh.L.J.,939.
HasanateVsMahesh,
2014(2)Mh.L.J.,884.
Defendants/tenantsdidnotassailthefindingsofthetrial
Court on the issue of bona fide requirements and nonuser of the
premises by filing appeal or by crossobjection cannot assail such
findingsforthefirsttimeinwritjurisdictionassailingthedecreepassed
bytheAppellateCourt.
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