The Urban Rent Restriction Ordinance, 1959 ~ Balochistan Law Forum

The Urban Rent Restriction Ordinance, 1959

Rent controller is not a Court thus not suit is instituted before him. Mere application can be put before him for any dispute relating to rent or ejectment etc.

Definition clause u/s 2: S. 2 relates with definitions. The meanings given in the definition clause are applicable in the whole of Ordinance. Any other meaning cannot be taken in the Ordinance as and when they come in the Ordinance. General meanings are not applicable whichever has been defined. Definition of some words is as follows:

1. Building: In general building means a place or structure comprising on rooms, lawn, kitchen, bathroom, and garage etc. As far as this Ordinance is concerned any place or structure which is let out for any purpose and landlord receives rent against such let is called building. The important thing to define the building is the existence of relationship of landlord and tenant. This definition includes some exceptions such as:

(1) Room in Sarai: Sarai is the place where commuters take rest. Its room does not include in the definition of building.

(2) Room in Hotel: Hotel is also a place where travelers reside temporarily. These rooms are not covered under the definition of building.

(3) Room in Hostel: Hostel is a place where people reside for a season, which may either, be of study season or working season. This definition does not cover such rooms.

(4) Room in Boarding House: Generally living place for young students is called boarding house. Its rooms are not supposed building within the meaning of this Ordinance.

2. Controller: He is a judicial officer to whom Provincial Government appoints. He determines the relationship of landlord and tenant. He may evict tenant while Civil Court has not jurisdiction over the matters of landlords and tenants. Although he is Civil Judge, but for the purpose of this Ordinance, he is Rent Controller. He cannot be termed as a Judge. A common person cannot be appointed as Rent Controller except a Judge. He hears the disputes arising out from the relationship of landlord and tenant. Disputes referred to him are called application and not suit. He does not follow the rules of Code of Civil Procedure. He fixes the fair rent. Also he hears on applications for ejectment of tenant when landlord applies.

3. Landlord: He is a person who lets building and receives rent in such consideration. His receipt of the money can be either on the behalf of owner of the building or owner of building himself may receive rent. The word landlord should not be confused with the word of landowner. Some time person who receives rent is itself landowner but in all cases he does not receive rent. Person who receives rent is landlord either he is clerk or person appointed on the behalf of landowner. Trustee, guardian, receiver, executor, administrator, and such tenant who sub lets are also landlords within the meaning of this Ordinance. Assignee or any authorized persons are also called landlords. Their landlord-ship is confined upto the extent of the term for which they have sub-let the building.

4. Non-residential building: Any place or building which is let out but not for the purpose of residence is non-residential building. This place is exclusively let out for the purpose of trade or business.

5. Prescribed: Where the word prescribed is used means the prescription of the rules under this Ordinance.

6. Rented land: It is a piece of land particularly let for trade of business, separately.

7. Residential building: Any place or building, which is let out for the purpose of residence, is residential building. This place is exclusively let out for the purpose of dwelling.

8. Scheduled building: This is a building, which is partly used for residence and partly used for business or trade purposes. As far as profession is concerned for which building is used partly, should be profession specified in Schedule to this Ordinance. Every type of business is not subject of scheduled building. Only particular business can be run in scheduled building. Person residing in scheduled building may or may not the actual owner of the building. He may either be owner himself or any other tenant. Only test to form scheduled building is that this building used for both residential and commercial purpose. Owner of the building may reside in upper storey and may run business in first storey.

9. Tenant: Tenant is a person who pays rent to his landlord or on whose behalf rent is paid to his landlord for the use of building. Tenant remains tenant even after expiry of rent agreement. Once a tenant, always a tenant. His position remains the same. Legal hairs of the tenant are also covered within the definition of tenant. But the persons who live with tenant with his permission are not considered as tenant within the meaning of this law.

Person designated for the collection of rents or other benefits is also not a tenant. There is an exemption to this rule. Any outsider who lives with tenant with the written permission of landlord is tenant.

10. Urban area: Any area, which is administered by municipal corporation, a municipality, a municipal committee, a town committee, or a notified area committee, is called urban area.

Kinds of tenancy: Law prescribes only three types of tenancy, i.e., residential, commercial, and schedule tenancy.

Exemption u/s 3: Government has right to suspend the operation of the part of the ordinance on certain buildings, which come within the limits of application of this Ordinance. It is declared by notification in the Gazette. Under this section government has made following exemptions:

1. Building and rented land vested in the Federal and the Provincial Government.

2. Properties belonging to the Dyal Sing Trust Society (Ó‘ÖBmÌm ’mj êÄm ¾BÍe), Lahore.

3. Properties under the control and management of the Charitable Institution Department, Peshawar.

4. Properties owned by the Anjuman-I-Hamayat-I-Islam (ÂÝmA OÖBÀY ÅÀVÃA), Lahore.

5. Such buildings and lands belonging to a local body administering an urban area which used to be let out in the past by means of auction. This would include such buildings and superstructures, which have been built, by lessee on land owned by a local Authority or Municipality. Sha’alam Market (’Î·iB¿ Á»B§ ÊBq) is the example.

6. Buildings and lands belonging to the West Pakistan Government Servants Benevolent Fund.

7. Property in Mozang owned by the Anjuman Rafa-i-Aam (ÂB§ ªB¯i ÅÀVÃA), Mozang, Lahore (i) Shops, (ii) Industrial School (iii) Maternity Child Welfare Center Building (iv) Community Hall (vii) Janazgah, and (viii) Mosque.

8. All the provisions of the said Ordinance shall not apply to the Mama Building, situated on Plot No. 19 RB, 10 near Urdu Bazar, Arambagh Quarter, Karachi.

9. Those buildings or lands belonging to a local body administering an urban area which are used as shops and are of commercial nature.

10. Building No. S. 64 – R – 101, Anarkali, Lahore, which is under the control and management of Dr. Amir-ud-Din Trust, Lahore.

11. Evacuee Trust properties under administration, control, and management of Evacuee Trust Board.

Fixation of fair rent u/s 4: Both landlord and tenant have right to put their objection regarding the fixation of fair rent to Rent Controller. Both may move application to Rent Controller.

Application only for residential building under this section is liable to move. Upon the receipt of application, Rent Controller holds enquiry to determine fair rent. He takes certain measures to reach the conclusion. Following points are kept in view while determining the fair rent:

1. Comparison of similarity: Rent Controller compares the rent fixed for the residential buildings of the same structure in the same locality. Similarity of the all nature is kept in view while determining the fair rent. Comparison comprises the view of rent fixed for the same types of buildings.

2. Current comparison: Time of viewing the similarity and making comparison should be the time when application is moved and not the subsequent comparison. This comparison is made only with residential building.

3. Prior comparison: Rent Controller may also take into consideration the comparison of the similar circumstances for a prior of one year. But he cannot go beyond one year. This comparison is also subject of residential building.

4. Rise in construction cost: If the cost of construction has been increased after commencement of tenancy is kept in view in determination of fair rent.

5. Imposition of new taxes: Imposition of new taxes after commencement is also considered for the fixation of fair rent.

6. Increase in repairing charges: Repairing charges are also considered while fixing the fair rent.

7. Rental value in government record: Tax Assessment Authority of Taxation Department assesses the rental value of the residential buildings periodically and enters it into registers. Also local bodies perform this job. Their registers are also consulted and this consultation helps in fixation of fair rent.

It should be kept in mind that this consultation must comprises for the period when application was moved or maximum prior to one year of such application. Consultation made for the period prior or subsequent is null and void as far as this section is concerned.

2. Mutual agreement: Rent Controller honors the agreement between the parties.

3. Maximum increase: 25% is allowed.

4. Implementation of fair rent u/s 5: It is implemented for maximum three years.

Payment of rent: As soon as Rent Controller fixes rent, it becomes payable on the part of tenant. Fixation of rent does not take place earlier than of the date of filing the application. Rent becomes payable since or after the filing of application, if fixed by the Rent Controller.

Maximum rise in rent: In any circumstances rent shall not be increased more than 25% of the rent last paid by the tenant before filing the application. Rent Controller can rise rent upto maximum 25% of the last paid rent by the tenant.

Grounds for increase in rent before three years u/s 5: In general where Rent Controller has fixed fair rent on application, further increase shall not take place before three years. It means once rent fixed remains in force till three years. But there are some exceptions to this rule such as:

1. Agreement: Where landlord and tenant with mutual consents make agreement for the increase of rent before statuary period, i.e., three years, law abides it.

2. Additions or alterations: Where tenant has made request for addition in house or improvement, additions, or alterations, landlord may increase rent before three years.

Guiding rule for such increase: Rent Controller takes into consideration the rent in the same locality with same alterations before making judgment.

Revised rent takes effect from the date of the completion of the work actually. During the work in progress, increase cannot be demanded.

Only Rent Controller is authorized to decide the dispute between landlord and tenant arises on the grounds of fixation of fair rent.

Increase of rent of commercial buildings u/s 5 – A: Increase in rent for non-residential buildings (commercial buildings) takes place after every three years.

Rate of increase: Increase in rent for commercial buildings, is fixed by law is 25% per month of the rent already being paid by the tenant.

How rent increases: Rent automatically comes into effect without going to Rent Controller.

1. Term for enhanced rate: Increase in rent remains in force for a period of three years, from the date of its increase.

2. How first increase in rent is determined: Following is the criterion for the determination of increase in rent:

3. Prior agreement: Where already rent agreement is in force for a period of three or more years before this enactment, then first increase shall take place on July 01, 1989.

4. Upon completion of three years: Where prior agreement to this enactment has not completed three years, increase takes place after completion of three years whenever it comes.

5. Where increase is lesser: Where rent has already been increased mutually but rate of increase is less than 25%, remaining difference shall remain payable.

6. Where increase is equal or larger: Where already rent has been increased upto equal or more than 25%, further increase shall not be made before completion of three years.

7. Default: Where due increase is not paid within sixty days, tenant shall become defaulter and penalty shall be imposed. Tenant shall become liable to eject.

8. Abatement of pending cases: Ss. 4 & 5 are particularly related with non-residential buildings thus cases pending under such sections shall cease to exist wherever they are pending either in Rent Controller, Appellate Authority, or in any other Court.

9. Inapplicability of law: Where landlord and tenant mutually make an agreement for required increase in rent before Rent Controller, there provisions of law from 5A(1) to 5A(5) shall not remain applicable.

10. Landlord not to claim anything in excess of fair rent u/s 6: Where fair rent has been fixed by the Rent Controller, landlord extinguishes the right to claim more than of fixed rent. This is applicable only in the cases of residential buildings. Fixation of fair rent for residential buildings comes under Ss. 4 and 5.

Prohibition of additional claims u/s 6(a): Landlord can claim only what has been fixed by the Rent Controller. Tenant is not liable to pay any claim or premium to landlord except other than fair rent.

Exception: Although landlord cannot claim or receive any premium or additional rent, which Rent Controller has fixed, but there is one exception to this rule. Landlord can negotiate to receive advance rent. But this advance rent cannot exceed from the one-month’s rent. In this way demand of Pugri (goodwill) is prohibited at law.

Nullity of certain rent agreements u/s 6(b): Where landlord has made any rent agreement with tenant in which amount of rent provided exceeds, such rent agreement shall be void upto the extent as far as the payment of rent is concerned. Landlord cannot make any agreement, which defeats the purpose of fair rent. Only fair rent is receivable. Any agreement, which is over and above to law, is null and void and has no effect in law.

Refund of beyond the fair rent u/s 6(c): Where rent has been paid rent in excess of fair rent shall remain refundable to tenant. Landlord cannot retain such extra sum of rent. This refund shall become applicable on the date of application. Rent paid before making application to Rent Controller shall not be refunded. This extra payment of rent can also be adjusted in subsequent rents.

Retrospective effect of law u/s 6(2): Any rent in excess of fair rent shall not be refunded if it is made before January 01, 1950. In other words law of recovery is applicable from January 01, 1950.

Prohibition of certain additions u/s 7: Landlord is not allowed to require any payment of any fine, premium, or any other like sums in addition to the rent at the time of grant, renewal, or continuance of tenancy.

Rent which should not have been paid may be recovered u/s 8: Where tenant has paid excessive rent to landlord before the enactment of this Ordinance which is not recoverable can be adjusted or recovered provided tenant obtains prior permission from Rent Controller. Such permission should be obtained within six months of the enactment. Application must be made to Rent Controller within six months from the last paid rent.

Tenant himself cannot decide whether what is fair rent which should be paid and which portion of the rent is recoverable. It is upto Rent Controller whether what he decides.

Law lays down a procedure for the recovery of excess rent paid by the tenant. The question as to when this excess rent becomes recoverable has to be determined with reference to S. 6 which clearly speaks of a stage when the Controller has fixed the fair rent. The tenant can take advantage of this section only when he has paid any sum, which is irrecoverable by virtue of the provisions of the Ordinance.

Under the Ordinance tenant is liable to pay the contractual rent until a fair rent is determined by the Rent Controller u/s 4, till such time the land is entitled to receive the agreed rent and the tenant under an obligation to pay.

It cannot, therefore, be said that any part of that rent even if it is in excess of the fair rent determined subsequently is irrecoverable under the provisions of this section. The remedy provides in this section is in addition to the remedies available under the general law.

Computation of statutory period: Period consumed in litigation shall be excluded from the statutory period of six months and shall commence after litigation finishes. Litigation may take several months in decision, which should be excluded.

Rent which landlord can charge u/s 9: Government may impose certain taxes on landlords and may increase running taxes. This enhanced payment on the part of landlord is recoverable provided he obtains prior approval of Rent Controller.

Landlord cannot charge more than ½ of the enhanced amount which is payable on his part. If new tax @ Rs. 500/- per month is imposed, he can recover from tenant maximum Rs. 250/- per month with the prior approval of Rent Controller. If government increase the tax from Rs. 500/- per month to Rs. 700/- per month, then landlord may charge only Rs. 100/- per month with prior approval of Rent Controller. Only enhanced amount is subject of recovery and not the entire amount.

Enjoyment of amenities u/s 10: When landlord gives his building on rent with the right to use all amenities to tenant, he becomes bound to protect the right of tenant. Landlord cannot remove such amenities except with prior permission of Rent Controller or by orders of the government. Rent Controller and government is the authority to make such orders.

Where landlord removes such amenities without any sufficient cause, tenant may make an application for the restoration of such amenities. Rent Controller may direct landlord after making inquiries to restore them.

If a landlord contravenes the provisions of this section the tenant can make application to the Controller complaining such contravention. The authority on finding that the amenities were enjoyed by the tenant and are willfully cut off or withheld by the landlord without just or sufficient cause is bound to make order for the restoration of the same.

Conversion of residential building into non-residential u/s 11: Conversion of residential building into commercial is prohibited. Only Rent Controller is authorized to do so. Private parties cannot decide this matter themselves. The conversion of a property from residential to non-residential is violation of the law on subject and is against the public policy. Law prohibits such conversion except with the permission of Rent Controller.

Failure of landlord to make necessary repairs u/s 12: As far as the repairs are concerned they either are major or minor are liability of landlord. Tenant cannot make any major alteration of structure. Where landlord fails to make necessary repairs, tenant can apply to Rent Controller for such repairs. Rent Controller makes necessary inquiries and if he thinks fit may allow tenant to make such repairs and adjustment of the cost of repairs from subsequent rent.

The tenant cannot claim absolute right to carry out the repairs. It is open to the Rent Controller to honour an agreement between the landlord and the tenant which tried the liability to pay the fair rent to tenant and to refuse or to grant permission to repair.

It is purely a question of discretion vested in the Rent Controller for granting or refusing for permission for repairs. But the discretion must be exercised on sound judicial principles.

Reimbursement of expenses incurred on repairs under the order of a local authority u/s 12 – A: Where any house or place is in a worst condition and is liable either to repair or demolish, local authority may pass order for its repair or demolishment.

Owner of the building is under duty to comply the orders of the authority, but where owner fails to do so then authority directs tenant to do so. Tenant becomes responsible to make necessary repairs.

Tenant prepares a statement containing the details of the expenses incurred during obligatory repair or maintenance of the rented building and submits to local authority for verification. Authority checks and verifies the accounts. As the authority verifies the accounts, tenant may adjust the expenses from subsequent payable rent.

Protection of tenancy u/s 13: Only this Ordinance may govern the matters relating with tenant and landlord. Any decree passed for eviction of tenant before or after present enactment in contravenes to the provisions of this Ordinance is void. Civil Court has not jurisdiction over the matters for which this enactment is subjected.

Subject of ejection: Any tenancy either residential, commercial, or schedule building is subject of ejection on any one of the ground provided under this Ordinance. Application can be moved against any tenancy.

Eviction of tenant u/s 13: Where law provides protection to tenant there provides grounds of his ejectment. Grounds provided u/s 13 are not fully exhaustive. Rent Controller gives reasonable opportunity to other party before direction for ejectment. Maximum four months are allowed to tenant for the eviction from tenancy when Rent Controller passes orders. Following are the grounds whereby ejectment takes place:

1. Default in payment of rent: Where agreement for the payment of rent exists, tenant is liable to pay rent on the date mutually agreed for. Where such agreement does not exist, tenant is bound to pay or tender rent maximum within sixty days from the last payment of rent. Tenant is liable to pay or tender rent within fifteen days after the expiry of agreed date.

Where tenant fails to pay or tender rent within fifteen days where agreement for the payment of rent exists or within sixty days where tenancy is oral, he commits default in payment of rent thus is liable to be ejected.

2. Unauthorized sub let or sub lease: Where tenant sub leases or sub lets building without having written permission from landlord commits violation of law and liable to be evicted.

3. Inconsistent use of building: If building is used for the purpose other for which is rented is contravention of the law and is considerable in eviction of tenant.

For example, building is let for residential purpose but tenant uses it for commercial purpose, or building is rented out for business purpose but it is being used for illegal business is inconsistent use of building. Such tenant can be ejected from building.

4. Damage to building: Tenant is duty bound to take care of building as ordinary prudence (judgement) man takes care of his own building. Where tenant commits any act or omission, which causes injury to building, is good ground for eviction of tenant. If the value of building is diminished in value or utility makes ground for ejectment.

5. Causing nuisance: Tenant has to reside peacefully in rented building. If his any act causes nuisance to other neighbors renders him to eject.

6. Failure to occupy within four months: Tenant is responsible to occupy rented building within four months from the date of agreement. This rule is applicable in all the areas other than of hill station. When tenant commits default in occupancy within stipulated period, he becomes liable of ejectment. His payment of rent for the non-occupancy period becomes immaterial. Occupancy within four months is mandatory under law. Tenant may advance reasonable cause for such commission of failure.

7. Reconstruction of building: Landlord may require rented building for rebuilding or reconstruction. Requirement of landlord must be bona-fide including permission from concerned authorities. House cannot be demolished for reconstruction in the presence of tenant. When Rent Controller satisfies then orders for the ejectment of tenant.

Tender of rent: Tender of rent does mean discharge of obligation of payment of rent by means of money order or deposit of rent to Rent Controller with the leave of Rent Controller. Personal payment to landlord is also tender of rent. If landlord does not receive money order, tenant is not liable to send two months’ in next following months.

Tenant is liable to pay only rent for the corresponding month. Rent which landlord has been refused is not to be sent again. Such rent so refused may be deposited in bank with the permission of Rent Controller to avoid any uncertainty upon the payment of entire rent when Rent Controller decides on application. It is to be noted that rent refused does not imply that such rent has been remitted but it remains due and payable.

Payment of rent: Discharge of obligation by personal payment of rent. Payment of rent within fifteen days where agreement exists and within sixty days where tenancy is oral, person is called payment of rent.

Repossession of landlord: Where application is decided in favour of landlord, Court gives reasonable time to tenant for eviction. This time period may be given either in parts or in full, but in any circumstances it shall not exceed than four months.

Immediate repossession upon non-compliance: Where Rent Controller makes an order in favour of landlord and tenant commits default in tender of rent, landlord shall attain the right to eject tenant at once. In such a situtation, tenant is bound to put possession to landlord.

Due payments against amenities: Payment of electricity or water or both by tenant is liability of tenant if provided under Rent Note. They are deemed as rent. Commission of default in the payments of such amenities is as default as in the payment of rent is. It may also cause ejectment.

Other grounds of ejectment u/s 13(3): Law prescribes other grounds for the ejectment of tenant particularly on the grounds of personal needs of the landlord. Following are the reasons for residential building only.

1. Personal or children’s need in good-faith u/s 13(3)(a)(i)(a): Where landlord is in real need of the building so let on rent either for himself or for his children, may apply to Rent Controller for ejectment of tenant. This need must follow bona-fide requirement. Landlord has to show that the premises from which he is seeking the ejectment of his tenant is more suitable for his needs than the one he is occupying. The landlord also would be deemed to have satisfied condition of good faith.

2. Suitability to needs u/s 13(3)(a)(i)(b): Where landlord is in need of residence where he does not occupy another residential building in the same locality, may apply for the eviction of the tenant on this ground.

3. Forcible ejectment u/s 13(3)(a)(i)(c): Where provisions of the Ordinance have come into force and landlord has been evicted from residential building without any reasonable cause and he is seeking towards his only residential building, may apply for ejectment of sitting tenant. Where such tenant has ejected with reasonable cause, he shall not become entitle to eject his present tenant.

Ejectment for non-residential building: Provisions of ejectment for non-residential buildings are same as for residential buildings.

Exemption: There are two exemptions to this rule.

1. Tenancy of fixed time: Where such tenancy is for this fixed period, law would not effect it as such. Landlord has to wait for the expiry of fixed term for the eviction of tenant. Application of landlord in such a case is liable to dismiss.

2. Single eviction: Where landlord has evicted tenant either from residential or non-residential buildings, his further right to evict tenant extinguishes. Landlord can also dispossess only one tenant and not more than one.

Order of Rent Controller: Satisfaction of Rent Controller for the purpose of ejectment of tenant in favour of landlord is necessary. Where Rent Controller is dissatisfied, he rejects the application of landlord for ejectment. Satisfaction of Rent Controller for bona-fide need on the part of landlord is basic element of order.

Time limit for repossession in general: Neither Rent Controller nor landlord may evict tenant from possession at once. Law prescribes maximum period of four months. This is upto Rent Controller whether how much time shall be suitable for repossession of landlord. In any case it shall not exceed from four months.

Time limit for repossession in particular: Time limit of four months reduces to four weeks where tenant or his wife or dependant children occupies property in the same locality.

Repossession after eviction upon non-occupancy – corresponding liability u/s 13(4): Where building either residential or non-residential is got vacated on any ground for himself or for any of his children, landlord is bound by law, not only to possess but also to occupy the same within one month. Failure to possess and occupy within one month, previous tenant may file an application to Rent Controller for repossession of the evicted building. Rent Controller shall make order accordingly.

Repossession upon re-let after occupancy – corresponding liability u/s 13(4): Not only landlord has to posses and occupies evicted building or land within one month, but also he has not to re-let the same within two months after occupation. Violation of the rule leads to evicted tenant to apply for restoration of possession in his favour.

Punishment upon non-demolition u/s 13(5): Where landlord has got vacated the building for the purpose of reconstruction, he becomes liable to demolish the same building within four months after taking its possession. He also has to rebuild the same building within two years after its demolition within four months. Violation of this rule leads him to punishment of either description for a term, which may extend to six months or with fine or with both.

Exception: Landlord may satisfy the Court (Rent Controller) against the non-compliance of demolish and reconstruction of the evicted building on any reasonable causes beyond his control. Landlord shall not be punished where he proves his subsequent incapability of rebuilding the evicted property.

Repossession after conviction of landlord u/s 13(5 – A): Where a landlord is convicted on non-demolishment or non-reconstruction of the evicted property, evicted tenant may apply to Rent Controller for obtaining the orders for repossession. Rent Controller shall pass the orders accordingly.

Exception: This rule provides an exception. Where building has been demolished, repossession to evicted tenant shall not be given.

Reoccupation of evicted tenant after reconstruction u/s 13(5 – B): Evicted tenant may apply to Rent Controller before the completion of construction and occupation of another person, for reoccupation. Rent Controller shall order for the same space to be given to evicted tenant. It is also to Rent Controller for the fixation of fair rent for tenant keeping in view of the rent for same type of space in such locality.

Directions of Rent Controller to tenant u/s 13(6): Where application is put to Rent Controller for any dispute regarding the matters relating to the relationship of landlord and tenant, Rent Controller directs to tenant for the deposit of rent either before the issues are framed. He may also make such directions after the first hearing.

Payment of rent till decision: Tenant shall be responsible to deposit such rent regularly till the last decision made by Rent Controller.

Last date for regular payment of rent: Tenant is liable to deposit monthly rent of the last preceding month regularly before the fifteenth of the next corresponding month.

Dispute of amount of rent due or its rate: Where there is dispute of the amount of rent due and the rate of rent, Rent Controller shall determine summarily approximate rent due and its monthly rate for which tenant shall be liable to deposit to Court.

Consequences of default to deposit rent: Where tenant commits default to comply with the directions of the Rent Controller for the deposit of arrears and regular deposit of monthly rent due, whole of the proceedings shall be concluded in favour of landlord either tenant is petitioner or respondent. Landlord shall be put into possession and right of tenant shall be relinquished. Further proceedings are stopped upon the commission of default.

Where landlord files prejudice application u/s 13(7): Any application moved either by landlord or tenant should be bona-fide. Where landlord files an application containing prejudice and baseless, Rent Controller upon his satisfaction may impose penalty to landlord.

Amount of penalty: Rent Controller may impose penalty to landlord upto maximum amount of equivalent to ten months’ rent.

Payment to landlord: Rent which tenant deposits upon the order of Rent Controller remains payable to landlord until the final decision is made. Rent Controller pays it to landlord where petition is concluded in favour of landlord. Rent Controller decides the date on which rent is paid to landlord.

Tenant to be informed in case of transfer of ownership u/s 13-A: Where ownership of rented building or land is transferred from one person to another by any mean such as inheritance, gift, sale, or otherwise, it is duty of the new owner to inform the sitting tenant against such transfer and for the regular payment of rent to him.

Scope and importance of NOTICE to sitting tenant u/s 13 – A:

1. Legal requirement:

2. Keep tenant updated:

3. Mode of information: Mode of information prescribed in the Ordinance is registered mail. Merely oral information is insufficient as far as the Ordinance is concerned.

4. Due date for rent: Law prescribes maximum thirty days’ time period the payment of rent to new owner of the building or land after the receipt of registered notice in the normal course of duration.

5. Modes of transfer:

a) Inheritance:

b) Gift:

c) Sale:

d) Mortgage:

6. To avoid effects of fraud:

7. Protection of right:

a) New owner/possessor:

b) Sitting tenant:

8. Mutual understanding:

9. To avoid evil consequences:

10. Harmonious effects:

11. Loving relationship:

12. Moral obligation:

Eviction of tenants where the landlord is a salaried employee, widow, or minor orphan u/s 13(B): Law provides safeguards to salaried person including his widow and minor where salaried person dies, for the eviction from the rented property. He may give two months’ notice in writing to sitting tenant.

Pre-retirement case: Where a person has to retire, he may give two months’ notice to sitting tenant for delivery of possession. He has statutory right for a period of six months prior to his retirement. This law is applicable only for personal use of the rented property after retirement.

After retirement case: Where salaried person has not availed his right within six months prior to his retirement, he is further provided six months’ statutory post retirement period to give two months’ notice to his sitting tenant. This notice is only for the purpose of acquisition of possession of rented property for personal use of salaried person after his retirement.

Time barred application: Rent Controller has no jurisdiction over an application, made to him, on the base of notice of landlord to his tenant, which has been time barred. Notice to tenant after passing statutory period, i.e., six months after retirement or death, is barred by time thus not maintainable to Rent Controller.

Commencement of notice: Period of two months’ notice is commenced after its receipt to tenant. Tenant is bound to deliver possession of rented property to his needy landlord within two months after the receipt of notice from landlord. Landlord may be either salaried person himself or his widow or his minor.

Retirement or death after commencement of Ordinance: Right of landlord to acquire his rented property from sitting tenant is not effected with the commencement of this Ordinance after his retirement or death. Law does not prohibits him to give notice of two months to his sitting tenant for his personal use on post commencement of this Ordinance after his retirement or death. Even landlord has been retired or died since long before the commencement of this Ordinance, he may give two months’ notice after the commencement of this Ordinance within a statutory period of six months.

Right of ejectment u/s 13-B(2): Right of ejectment is available not only to salaried person himself but also his widow and minor child have right of ejectment of sitting tenant for personal use after retirement or death of salaried person.

Single ejectment u/s 13-B(3): Where landlord is in need of rented property for his personal use, he may eject only one tenant from the same locality. Right of landlord to eject sitting tenant is available upto the extent of ejectment of one tenant only and no more.

Offer to exchange property u/s 13-B(4): Landlord who is salaried person and have more than one properties shall offer exchange of property to tenant within same locality. Where landlord previously possesses any property within same locality, he may not eject tenant unless he makes offer of exchange of property.

Terms and conditions of exchanged property: As far as the rent and terms and conditions of the newly offered building by the landlord are considered, shall be determined by the Rent Controller.

Relinquishment of exchange benefit: Where tenant refuses to accept proposal of exchange made by the landlord, such tenant loses the benefit of the terms and conditions and rate of rent as determined by the Rent Controller.

Default in delivery of possession u/s 13-B(5): Tenant is liable to deliver possession of rented property to its landlord within two months. Failure in such delivery leads landlord to put application for ejectment of tenant. Court summarily hears and evicts the tenant.

Eviction of tenant upon bona-fide requirement u/s 13-B(6): Audi alteram partem. This is the maxim of law. According to this maxim no one can be condemned being unheard. Upon the application for ejectment of tenant, Rent Controller issues notice to tenant to hear his viewpoint. If the need of landlord is bona-fide, Rent Controller leaves no option except to pass order for the eviction of tenant.

Prohibition and punishment on re-let u/s 13-B(7): Property which is get vacated for the personal use of salaried employee after his retirement is not liable to re-let to other tenant within one year. A violation of this rule puts landlord into fine upto Rs. 5,000/-. Where landlord has got benefit more than of Rs. 5,000/-, he is liable to pay to previous tenant a sum of rupees equivalent to twelve months’ rent.

Non reopening of once decided matters u/s 14: Matters once have been decided between the same parties cannot be reopened with same issues. Rule of res judicata applies here. This section reiterates the rule of res judicataas given in S. 11 of Code of Civil Procedure. A decision once made by a competent authority on a matter in issue between the parties after a full enquiry should not be permitted for re-agitation.

Appeal u/s 15: Any party under writ petition before Rent Controller may bring appeal either for residential or non-residential building in civil Court against the final order of Rent Controller.

1. Appeal: Rectification of error or injustice of the decision of lower forum by the higher forum is called appeal.

2. Against whom order:

3. Who may appeal:

4. To whom appeal:

5. Limitation:

6. Exception:

a) No appeal against approximately rent order:

b) Interlocutory order:

7. Procedure on appeal:

a) Hearing by District Judge himself:

b) Refer to Additional District Judge: One who is competent to hear the appeal.

c) District Judge may recall and refer to other Judge of hearing himself:

d) May stay last order:

e) Deposit of rent:

f) Dismissal upon default of appellant:

g) Struck off defence of defendant where is default:

8. Second appeal:

9. Disposal of appeal as u/s 100 of CPC:

10. Further inquiry and hearing:

Number of appeals allowed: One appeal is allowed for residential buildings and as far as non-residential buildings are concerned, two appeals are allowed one in civil Court and second one in High Court.

Limitation for appeal: Thirty days (30) time period is available for appeal from the day of order made by the Rent Controller.

Where appeal can be made: District Judge is the proper forum to institute appeal. He must have jurisdiction over the matter either territorial or pecuniary. Although Rent Controller is not a Court but appeal shall lie in civil Court against his order being the subordinate of civil Court.

Who may prefer appeal: Any aggrieved party, either landlord or tenant affected by the order of Rent Controller may institute appeal before District Judge having authority over the matter.

Exception: There are two exceptions to this general rule such as:

1. Deposit of arrears: Where Judge has assessed arrears and fair rent and ordered for its deposit to Court until final disposition of the case, appeal shall not lie against such order.

2. Appeal against interlocutory order: Where Court has made any interlocutory order, appeal shall not lie against it.

Hearing of appeal u/s 15(2): Judge to whose Court appeal is preferred may himself hear the appeal or may refer it to any other Additional District Judge having jurisdiction. Competency of Judge cannot be ignored. It may result judgement void.

Stay of execution u/s 15(4): Any order against appeal is made may cause the stay of the proceeding against which appeal is made. This stay is made till the finalization of the case. This is power of appellate Court.

Dismissal of appeal u/s 15(5): Appellate authority may strike off defense of tenant or dismiss his appeal if he commits default in the deposit of arrears or rent as determined by the Rent Controller.

Second appeal u/s 15(6): Where the case regarding non-residential building is concerned, second appeal is allowed to High Court within thirty days after the pronouncement of judgment on first appeal. This appeal must be written and made by the aggrieved party.

Here provisions of S. 100 alongwith other relevant schedules of Code of Civil Procedure are applicable.

Procedure of High Court u/s 15(7): High Court may dismiss appeal in limine. Where appeal is admitted High Court may adopts one procedure from two. High Court may either call the record from Rent Controller and gives opportunity of hearing to aggrieved party or may require further inquiry.

Protection of Controller’s Order u/s 15(8): Subsequent forums of appellate cannot call in question of the order of Controller.

Transfer of cases by Appellate Authority u/s 15 – A(a): Under law Appellate Authority has power to withdraw and transfer the case from one subordinate Controller to another. Such Controller must possess authority to hear the application. This process may take place at any stage. Only pending proceedings may be transferred under this section. This process is as the process under Code of Civil Procedure.

Transfer of cases by High Court u/s 15 – A(b): Under law High Court has power to withdraw and transfer the case from one subordinate Appellate Authority to another. Such Court must possess authority to hear the appeal. This process may take place at any stage. Only pending proceedings may be transferred under the section. This process is as the process under Code of Civil Procedure.

Power to summon and enforce attendance of witnesses, etc. u/s 16(1): Appellate Authority has the same powers of summoning the witnesses for production of evidence as provided under Code of Civil Procedure, 1908.

Status of Controller as Court u/s 16(2): Law has provided status of Court to Controller when he acts u/s 480 of Code of Criminal Procedure.

Execution of orders u/s 17: When the order is passed under sections 10, 13, 13 – B, and 15, Rent Controller get executed the order himself as the decree of civil Court. Execution of the order of Rent Controller is supposed satisfaction of the applicant.

Landlord and tenant to furnish particular u/s 18: Both landlord and tenant are bound to furnish any information which Rent Controller or his authorized agent may require to discharge its legal duties. Where landlord has acquired the possession of house for rebuilding and house has been demolished and previous tenant has moved application for reoccupation upon reconstruction, landlord is bound by law to furnish all information which Rent Controller may require to ascertain the need of tenant.

Penalties u/s 19: Where any person contravenes the provisions of this Ordinance he shall be punished by the Court but this cognizance is subject to the approval of Rent Controller. Maximum fine, which may be imposed, is Rs. 1,000/-.

Power to make rules u/s 20: Government is empowered to make rules for the purpose of carrying out all or any of the provisions of the Ordinance.

Rights of tenant: Following are the rights of the tenant:

1. Fair rent:

2. No obligation other than rent:

3. Fine not to charge: Only owner has to pay.

4. Recovery of excessive rent: Only fair rent has to be claimed.

5. No increase on account of tax:

6. Enjoyment of amenities:

7. Charge on necessary repairs: Where landlord fails upon sufficient notice due to reasons uncertain.

8. Re-possession:

a) After construction:

b) Upon non-occupancy of owner: Four months’ period is provided.